Structural equation modeling for performance of public distribution system

This research aimed to develop a structural equation model of performance of public distribution system (PDS) in Amravati District, Maharashtra State. The sample consisted of 300 customers of multi-stage sampling. Data was significantly statistical analyzed by using SPSS/AMOS statistical software. The results indicated the developed model was valid and fitted to empirical data. The factors of targeting error, delivery mechanism, information asymmetry, customer satisfaction and cost were significantly and positively related to PDS performance. Customer satisfaction factor was the highest direct effect on PDS performance while targeting error was the highest indirect effect. A clear understanding of the postulated relationships among the studied variables might encourage the FPSs to figure out appropriate course of action to improve PDS performance by reducing the targeting error and information asymmetry in order to satisfy customer and reduced the cost.