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Creating a latent variable for composite variable.

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Sahil104's picture
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Joined: 07/13/2015 - 03:17
Creating a latent variable for composite variable.

Is it possible to take a latent variable (for example Marketing) as for a composite variable which can be measured through its components ( for example promotional expenditure, price discounts etc). We can always argue that Marketing is itself a measured variable but if we take it as a composite function of all the activities that comprises of marketing then is it possible to use it as a latent variable? Will it violate any principles of SEM or factor analysis ?
A quick response will be highly helpful as I'm reaching the deadline of my project submission and I'm stuck due to this problem.
Thank you in advance.

AdminRobK's picture
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Joined: 01/24/2014 - 12:15
Could you clarify what you

Could you clarify what you mean by "composite variable?"

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