PLS path modeling is widely used in marketing applications. It is based on linear equations. However, in practical applications, many relations cannot be regarded as linear. For example, the relations between satisfaction and its attributes are nonlinear (Mittal et al., 1998). In this paper, we present a two step approach in order to include nonlinear relationships between manifest and latent variables. We use a certain type of data transformation, often called optimal scaling, with monotonic B-spline optimal transformations of the manifest variables prior to PLS path modeling.