1. Multiple Linear Regression with Mediator

2. Conceptual Model Purchase Intention Satisfaction IV1 H1 H2 IV2 H11 H3
Indirect Effect H1 H2 H3 H4 H5
H11

3. Conceptual Model (direct and indirect effects)
Satisfaction
IV1
IV2
IV3
IV4
IV5
Purchase Intention
Indirect Effect
Direct Effect H1 H2 H3 H4 H5 H6 H7 H8 H9
H10
H11

4. Testing Mediator Effects
Three regression equations should be estimated
Regressing the mediator on the IV--the IV must affect the mediator (Path A)
Regressing the DV on the IV--the IV must affect the DV (Path C)
Regressing the DV on both IV and on mediator- -mediator must affect the DV, and the effect of the IV on DV must be less than the effect in the second equation

5. Test Mediator Effect (Satisfaction)
Model 1: Mediator and IVs
Model 2: DV and IVs
Model 3: Full Model (with interactions)
Regressing Satisfaction on IVs:
Sat = b0 + b1(IV1) + b2(IV2) + b3(IV3) + b4(IV4) + b5(IV5)
Regressing PI on IVs:
PI = b0 + b1(IV1) + b2(IV2) + b3(IV3) + b4(IV4) + b5(IV5)
Regressing PI on Satisfaction, Loyalty, and IVs:
PI = b0 + b1(IV1) + b2(IV2) + b3(IV3) + b4(IV4) + b5(IV5) +
+ b6(IV1*Sat) + b7(IV2*Sat) + b8(IV3*Sat) + b9(IV4*Sat) + b10(IV5*Sat)
+ b11(Sat)

6. Conceptual Model Purchase Intention Satisfaction H1 IV1 H6 H17 H2 H7
For each IV, there are both direct effect and indirect
effect from the IV to DV
Considering the effects of IV1 on DV, the direct effect
is tested by H1; whereas, the indirect effects are
tested by H6 and H11
IV4 H5
H10
IV5

7. Conceptual Model Loyalty Purchase Intention Satisfaction
Test alternative hypothesis that
H1: b1 ≠ 0
Loyalty
IV1 H6
H17
H11-15 H2 H7
IV2
H16
Satisfaction
Purchase Intention H3 H8
IV3 H9 H4
IV4
Regressing PI on Satisfaction, Loyalty, and IVs:
PI = b0 + b1(IV1) + b2(IV2) + b3(IV3) + b4(IV4) + b5(IV5) +
+ b6(IV1*Sat) + b7(IV2*Sat) + b8(IV3*Sat) + b9(IV4*Sat) + b10(IV5*Sat)
+ b11(Sat) H5
H10
IV5

8. Conceptual Model Loyalty Purchase Intention Satisfaction
Test alternative hypothesis that
H6: b6 ≠ 0
Loyalty
IV1 H6
H17
H11-15 H2 H7
IV2
H16
Satisfaction
Purchase Intention H3 H8
IV3 H9 H4
IV4
Regressing PI on Satisfaction, Loyalty, and IVs:
PI = b0 + b1(IV1) + b2(IV2) + b3(IV3) + b4(IV4) + b5(IV5) +
+ b6(IV1*Sat) + b7(IV2*Sat) + b8(IV3*Sat) + b9(IV4*Sat) + b10(IV5*Sat)
+ b11(Sat) H5
H10
IV5

9. Conceptual Model Purchase Intention Satisfaction
Test alternative hypothesis that
H11: b11 ≠ 0 H1
IV1 H6
H17 H2 H7
IV2
H16
Satisfaction
Purchase Intention
H11 H3 H8
IV3 H9 H4
IV4
Regressing PI on Satisfaction, Loyalty, and IVs:
PI = b0 + b1(IV1) + b2(IV2) + b3(IV3) + b4(IV4) + b5(IV5) +
+ b6(IV1*Sat) + b7(IV2*Sat) + b8(IV3*Sat) + b9(IV4*Sat) + b10(IV5*Sat)
+ b11(Sat) H5
H10
IV5

10. Test Mediator Effect (Satisfaction)
Model 1: Mediator and IVs
check whether an IV effects mediator
at least one of the coefficients/parameter estimates is not equal to 0 (at least b1, b2, b3, b4, or b5 ≠ 0)
Regressing Satisfaction on IVs:
Sat = b0 + b1(IV1) + b2(IV2) + b3(IV3) + b4(IV4) + b5(IV5)

11. Test Mediator Effect (Satisfaction)
Model 2: DV and IVs
check whether an IV effects DV
at least one of the coefficients/parameter estimates is not equal to 0 (at least b1,2, b2,2, b3,2, b4,2, or b5,2 ≠ 0)
Regressing PI on IVs:
PI = b0 + b1,2(IV1) + b2,2(IV2) + b3,2(IV3) + b4,2(IV4) + b5,2(IV5)

12. Test Mediator Effect (Satisfaction)
Model 3: Full Model (with interactions)
check whether Mediator effects DV; therefore, b16 must not equal to 0 (b16 ≠ 0)
check whether the effect of the IV on DV must be less than the same effect in the second equation; therefore, one of these must be true:
Regressing PI on Satisfaction, Loyalty, and IVs:
PI = b0 + b1,3(IV1) + b2,3(IV2) + b3,3(IV3) + b4,3(IV4) + b5,3(IV5) +
+ b6(IV1*Sat) + b7(IV2*Sat) + b8(IV3*Sat) + b9(IV4*Sat) + b10(IV5*Sat)
+ b11(Sat)
b1,3 < b1,2
b2,3 < b2,2
b3,3 < b3,2
b4,3 < b4,2
b5,3 < b5,2