The book is :Marketing Models: Multivariate Statistics and Marketing Analytics, 4th Edition, by Dawn Iacobucci (earlier editions acceptable) (For the first 2 questions)
Chapter 5 Questions
Reading: In Chapter 5 we will focus upon only Figure 5.8 on page 60 and Customer Lifetime Value on pages 62-63. Instead of path analysis we will look at a subset of the concept called mediation analysis based on supplementary readings.
- In Figure 5.8 why is price not caused by anything else in the model?
- Which relationships amongst the two models in Figure 5.8 would have a negative coefficient? Why?
Reading: HBR Case Study: Target the Right Market by Jill Avery and Thomas Steenburgh October 2012.
- Use the excel spreadsheet “Figure 5.12 Worksheet.xlsx” to determine the figures for “Marys” (Sams have been filled in as an example). What did you find regarding ‘retention rates’ versus ‘customer pays’ or ‘retention costs’ in trying to reach the target CLV of $50,000?
Reading: Sections 1.1 and 1.2 only. Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach, Chapter 1, Andrew F Hayes 2013
- Draw Figure 1.1 and use the concepts of ‘Motivation’, ‘Study Effort’ and ‘High GPA’ to replace the letters ‘X’ , ‘M’ and ‘Y’. Use your judgment to determine which concepts should replace which letters.
Explain how:
X impacts Y:
X impacts M:
M impacts Y:
- Follow the same approach to redraw Figure 1.2 using the same concepts
Explain how M could impact the relationship between X and Y. Is it a positive or negative interaction/moderation? - Do you find your Figure 1.1 or Figure 1.2 interpretation to be more credible? Why?
Reading: (stop at before ‘Joint Significance of Paths a and b, except also read the short section on ‘multiple mediators’) David A. Kenny from http://davidakenny.net/cm/mediate.htm
- From the reading: “Mediation and moderation analyses are a key part of what has been called process analysis, but mediation analyses tend to be more powerful than moderation analyses”
Do you agree with the above quotation? Explain. - Many people now think that Step 1 of the ‘Four Steps’ is not needed. Why do you think this could be the case? Use a creative example of your own in your explanation.
- Provide an example of ‘inconsistent mediation’ and explain the relationships.
Reading: “Decomposing Innovativeness and Its Effects on New Product Success” (Calantone, Chan, Cui 2006)
- What is the correlation between Product Innovativeness and New Product Profitability?
- Which construct has the highest reliability?
- Why doesn’t New Product Profitability have a reliability measure?
- What would David Kenny call the mediation presented in Figure 3?
Sample Solution