Comparison of Cluster and Linkage Validity Indices in Integrated Cluster Analysis with Structural Equation Modeling War-PLS Approach

This study wants to compare the Integrated Cluster and SEM models of the Warp-PLS approach with various cluster and linkage validity indices on Service Quality, Environment, Fashions, Willingness to Pay, and Compliant Behavior of Bank X Customer Paying Behavior. The data used in this study are primary. The variables used in this study are service quality, environment, fashion, willingness to pay, and compliance with paying behavior at Bank X. The data were obtained through a questionnaire with a Likert scale — the measurement of variables in primary data using the average score of each item. The sampling technique used was purposive sampling. The object of observation is the customer as many as 100 respondents. Data analysis was carried out quantitatively; the descriptive study was carried out first, then Integrated Cluster analysis and SEM analysis of the Warp-PLS approach were carried out with euclidean distances on 4 cluster validity indices, including Index Sillhouette, Krzanowski-Lai, Dunn, Davies-Bouldin, as well as on various linkages (Ward, Average, and Complete Linkage). This research uses R software. The results show that the Silhouette, Krzanowski-Lai, Dunn, and Davies-Bouldin indexes, the complete linkage method is better than the ward and average linkage methods. The novelty in this research is Integrated Cluster Analysis and SEM of the Warp-PLS approach to compare 4 cluster validity indices and three linkages. Keywords: Cluster Analysis; SEM; Warp-PLS; Integration Model; Dummy Variable; Cluster Validity Index; Linkage