Mariangela Nitti

SUMMARY The aim of the paper is to define a new concept of global measure for the Passenger Satisfaction (PS), conceived as second-order latent variables (Henseler and Chin, 2010), and a new estimation approach to its measurement. This idea arises from theoretical and methodological limits of the existent models in correctly capturing the construct of satisfaction and the relationships with its subdimensions. The two main approaches to the estimation of higher-order constructs through the Partial Least Squares Path Modeling (PLS-PM) are presented: the so called Repeated Indicators and the Two-Step approaches. Some criticisms of these methodologies are highlighted and a solution to the issue of the identification of formative second-order constructs is suggested through the adoption of a Hybrid Two-Step approach for solving the presented PS case study. Three ways of modeling PS are then compared: a Base Model, where PS is measured as a traditional first-order construct, and two second-order models estimated, respectively, through the Repeated Indicators and the Hybrid Two-Step. Results are discussed. Keywords: Passenger Satisfaction, Second Order Latent Variables, Partial Least Squares Path Modeling, Hybrid Two-Step Approach.