1. Chapter 4 The Research Process - Theoretical Framework & Hypothesis Development

2. Theoretical Framework A theoretical framework represents your beliefs on how certain phenomena (or variables or concepts) are related to each other (a model) and an explanation on why you believe that these variables are associated to each other (a theory).

3. 1 Identify and label the variables correctly 2 State the relationships among the variables: formulate hypotheses 3 Explain how or why you expect these relationships Theoretical Framework

4. Variable Any concept or construct that varies or changes in value Main types of variables: › Dependent variable › Independent variable › Moderating variable › Mediating variable

5. (In)dependent Variables Dependent variable (DV) Is of primary interest to the researcher. The goal of the research project is to understand, predict or explain the variability of this variable. Independent variable (IV) Influences the DV in either positive or negative way. The variance in the DV is accounted for by the IV.

6. Example

7. Moderators Moderating variable Moderator is qualitative (e.g., gender, race, class) or quantitative (e.g., level of reward) variable that affects the direction and/or strength of relation between independent and dependent variable

8. Mediating Variable Surfaces between the time the independent variables start operating to influence the dependent variable and the time their impact is felt on it.

9. Hypothesis “A proposition that is empirically testable. It is an empirical statement concerned with the relationship among variables.” Good hypothesis: Must be adequate for its purpose Must be testable Must be better than its rivals Can be: Directional Non-directional

10. Exercise Give the hypotheses for the following framework: Service quality Customer switching Switching Cost

11. Exercise Give the hypotheses for the following framework: Service quality Customer switching Customer satisfaction

12. Argumentation The expected relationships / hypotheses are an integration of: › Exploratory research › Common sense and logical reasoning

13. Argumentation The expected relationships / hypotheses are an integration of: › Exploratory research › Common sense and logical reasoning

14. Case Study: Sleepless at Holliday Inn

15. Sleepless Nights at Holliday Inn Problem Statement: “How can brand awareness be brought about to increase the revenues of Holiday Inn?”

16. Sleepless Nights at Holliday Inn Theoretical Framework Only after Oliver has understood how the different classifications would be important to the three classes of intended clients through survey data, can a meaningful theoretical framework be developed. But, based on what information is currently available, the following framework can be attempted

17. Sleepless Nights at Holliday Inn Theoretical Framework (Cont.) › The nature of the building facilities, how the buildings are maintained, and the quality of service provided – the three independent variables – would differentiate the three distinct types of Holiday Inn facilities and increase brand awareness among the users. › The better the buildings, the better their maintenance, and the more differentiated the services provided, the greater will be the perceived differences in the three types of Holiday Inn facilities by clients.

18. Sleepless Nights at Holliday Inn Theoretical Framework (Cont.) › However, if the Franchise owners do not cooperate in highlighting these differences to clients, no amount of the improvements made in the independent variables will help to increase the brand awareness. › It is only when the Franchise owners actively promote the idea of differentiated facilities- the moderating variable – can the brand awareness be increased, and as a consequence, the revenues.

19. Sleepless Nights at Holliday Inn Hypotheses 1. The more differentiated the building facilities, the more the brand awareness. 2. The more differentiated the maintenance of the facilities, the more the brand awareness. 3. The more differentiated the services to the clients, the more the brand awareness. 4. Differentiated building facilities, maintenance, and service will influence brand awareness only if the Franchise owners cooperate and actively promote the idea of differentiation. If they don ’ t, no amount of differentiation of the three independent variables will help clients to understand the differentiation (increase brand awareness).