Dummy Variable

[alnawas]

Dear Professors,

It would be a massive help if you could please explain me how to deal with dummy variables using SmartPLS?

More specifically I want to test to the effect of student orientation on student satisfaction and I want to control for the mission of the university over student satisfaction. I have five groups of missions, so should I code them like this:

University Alliance (group1): 1.0.0.0.0
Million+ (group2) : 0.1.0.0.0
Russell (group3 : 0.0.1.0.0
1994 (group4) : 0.0.0.1.0
GuildHE (group5) : 0.0.0.0.1

Does this sound right?

If that is right, then should I put all these five groups into one construct "University Mission" and then draw a path from "University Mission" towards student satisfaction?

I want to see when I control for the mission of the university, does student orientation still affect student satisfaction?

Many thanks in advance

[Hengkov]

Hi,

I think no, you create construct "mission university" with five indicators (mode B) and connect to student satisfaction to control OK.

Best Regards,
Hengky

[alnawas]

Hi,

I think no, you create construct "mission university" with five indicators (mode B) and connect to student satisfaction to control OK.

Best Regards,
Hengky

Dear Prof. Hengky,

Many thanks for your kind suggestions.

I'll do exactly as you kindly suggested, but I'm still confused as what value should I give to each indicator?

More specifically, should I treat the five missions as classical control variables (i.e. 0.0.1)?

It would be a massive help if you could please explain me that!
Many thanks

[Diogenes]

Hi,
Yes, do it in the way that Latan explained (formative), but one of the categories should be used as reference (5 groups --> 4 dummies), for example:

University Alliance (group1): 0.0.0.0
Million+ (group2) : 1.0.0.0
Russell (group3 : 0.1.0.0
1994 (group4) : 0.0.1.0
GuildHE (group5) : 0.0.0.1

See one example in:
Falk, R. F., & Miller, N. B. (1992). A Primer for Soft Modeling. Ohio: The University of Akron Press.

Best regards,

Bido

[alnawas]

Dear Prof. Bido,

Many thanks for your clarification and I truly appreciate that.

I did exactly as you said and I added the five categories formatively and one of the categories was 0.0.0.0.0. However, when I wanted to run the model, it didn't run because of that group, but when I changed it to 0.0.0.0.1. and then run the model, it worked.

Any suggestions would be extremely appreciated,
Warmest regards

[Diogenes]

Hi,

You will have just 4 formative indicators.

See the "Social status" in this example:
http://www.amazon.com/gp/product/images ... 55&s=books

The first indicator was included in the picture, but its weight = 0.

This is a way to include the concept as a control variable, but the weights are not interpretable (as some kind of importance).

Best regards,

Bido

[alnawas]

It worked well... Loads of thanks for your extreme kindness,

Warmest regards!

[ali.hebaz]

Please can you explain more the apporach, i've did the same but i still have the same problem it cannot calculate