Name: Sana Wahab

I.D: 13669
Degree Program: BBA-H
Course: Research Methods and Skills
Assignment # 2
Q: Companies benefit through employee loyalty. Crude downsizing in organizations during the
recession crushed the loyalty of millions. The economic benefits of loyalty embrace lower
recruitment and training costs, higher productivity of workers, customer satisfaction, and the
boost to morale of fresh recruits. In order that these benefits are not lost, some companies while
downsizing try various gimmicks. Flex leave, for instance, is one. This helps employees receive
20% of their salary, plus employer provided benefits, while they take a 6 to 12 month leave
travel concession, with a call option on their services. Others try alternatives like more
communication, hand holding, and the like. What is the problem statement in the above
situation? Give reasons.
A: The problem statement in the above situation is the negative impact of crude downsizing
during the recession on employee loyalty and the subsequent challenges faced by companies in
preserving the associated economic benefits.
Reasoning:
Employee Loyalty Erosion: The primary issue is the erosion of employee loyalty caused by
crude downsizing. The recession-driven layoffs have led to a significant loss of loyalty among
millions of employees.
Risk to Economic Benefits: The loyalty of employees is crucial for various economic benefits,
including lower recruitment and training costs, higher worker productivity, enhanced customer
satisfaction, and a morale boost for recruits. The problem arises from the potential loss of these
economic advantages due to decreased loyalty.
Need for Mitigation Strategies: Companies recognize the importance of maintaining employee
loyalty even during downsizing. To manage this, they are resorting to various strategies, such as
flex leave and increased communication. The introduction of flex leave, for example, is a
gimmick aimed at retaining employees by providing them with certain benefits during a leave
travel concession, along with a call option on their services.
In summary, the problem is rooted in the negative consequences of downsizing on employee
loyalty and the subsequent efforts required by companies to implement effective strategies that
mitigate the economic drawbacks associated with the loss of loyalty.
Q: A production manager is concerned about the low output levels of his employees. The articles
that he has read on job performance frequently mention four variables as being important to job
performance: (1) skills required for the job, (2) rewards, (3) motivation, and (4) satisfaction. In
several of the articles it was also indicated that only if the rewards were (attractive) to the
recipients did motivation, satisfaction, and job performance increase, not otherwise. Given this
situation: a) Define the problem. b) Create a diagram. c) Develop at least six hypotheses.
A: a) Define the Problem:
The problem is the low output levels of employees, and the production manager is concerned
about the factors affecting job performance. Key variables mentioned are (1) skills required for
the job, (2) rewards, (3) motivation, and (4) satisfaction. The articles suggest that only attractive
rewards lead to increase your motivation, satisfaction, and ultimately improved job performance.
b) Create a Diagram:
Here's a simplified diagram representing the relationships among the variables:
+------------------------+
| Job Performance |
+------------------------+
|
+------------------------+
| Motivation |
+------------------------+
|
+------------------------+
| Satisfaction |
+------------------------+
|
+------------------------+
| Rewards |
+------------------------+
| |
| |
+-------------+ +----------------------+
| Skills for | | Attractive Rewards |
| the Job | +----------------------+

c) Develop at Least Six Hypotheses:

Hypothesis 1: Higher levels of skills are required for the job to positively relate with job
performance.
Hypothesis 2: Presence of attractive rewards is positively associated with increased motivation.
Hypothesis 3: Motivated employees are more likely to experience job satisfaction.
Hypothesis 4: Satisfaction with the job is positively linked to higher job performance.
Hypothesis 5: When rewards are perceived as attractive, motivation, satisfaction, and job
performance will increase; otherwise, they will remain low.
Hypothesis 6: Improving the skills required for the job, coupled with attractive rewards, will
have a synergistic effect, leading to the highest levels of job performance.
Q3: A recent study has investigated the effect of corporate social responsibility (CSR) on the
market value of the firm. This study developed and tested a conceptual framework, which posits
that (1) customer satisfaction mediates the relationship between CSR and the market value of the
firm, and (2) two firm factors (“innovativeness capability” and “product quality”) moderate the
relationship between CSR and customer satisfaction. For this situation, define the problem, draw
a schematic diagram, and formulate the hypotheses.

A: a) Define the Problem:

The problem is being addressed by understanding the impact of corporate social responsibility
(CSR) on the market value of a firm. The study focuses on a conceptual framework that suggests
two key relationships: (1) CSR influences customer satisfaction, which in turn affects the market
value of the firm, and (2) the strength of the relationship between CSR and customer satisfaction
is moderated by two firm-specific factors, namely "innovativeness capability" and "product
quality."

b) Here's a simplified schematic diagram representing the relationships described:

+-----------------------------------------+

| Market Value |

+-----------------------------------------+

+-----------------------------------------+
 | Customer Satisfaction |

+-----------------|-----------------------+

+-----------------|-----------------------+

| | |

+----------------------+ +------------------+ |

| CSR | | Innovativeness | |

| (Corporate Social | | Capability | |

| Responsibility) | +------------------+ |

+----------------------+ |

| |

+-------------------------+ |

| Product Quality | |

+-------------------------+ |

c) Here are the formulated hypotheses for the study:

Hypothesis 1: There is a positive relationship between Corporate Social Responsibility (CSR)

and Customer Satisfaction.

Hypothesis 2: Customer Satisfaction mediates the relationship between CSR and the Market
Value of the firm.

Hypothesis 3: Innovativeness Capability moderates the relationship between CSR and Customer
Satisfaction, such that higher levels of innovativeness capability strengthen the positive impact
of CSR on Customer Satisfaction.

Hypothesis 4: Product Quality moderates the relationship between CSR and Customer
Satisfaction, such that higher product quality strengthens the positive impact of CSR on
Customer Satisfaction.
Hypothesis 5: The joint effect of CSR, Innovativeness Capability, and Product Quality has a
significant impact on Customer Satisfaction, leading to an increase in the Market Value of the
firm.
These hypotheses collectively form the conceptual framework of the study which is outlining the
expected relationships and interactions between CSR, Customer Satisfaction, Innovativeness
Capability, Product Quality, and Market Value. These hypotheses also provide insights into the
influence of CSR on the financial performance of the firm.
QUESTION 4 :
A:
Four Main Types of Variables:
Independent Variable:
It is the variable which is manipulated or chosen by the researcher to observe its effect on the
dependent variable.
Dependent Variable:
This is the variable that is being measured and is expected to change as a result of the
independent variable.
Moderating Variable:
This variable influences the strength or direction of the relationship between the independent and
dependent variables.
Mediating Variable:
This variable helps to explain the process or mechanism through which the independent variable
influences the dependent variable.
Variables in the Given Situation:
Independent Variable:
Determinants of Customer Switching: This includes factors that influence customers to switch
from one service provider to another.
Dependent Variable:
Customer Switching: The actual act of customers changing their service provider.
Moderating Variable:
Switching Costs: This is the variable that is believed to moderate the relationships between
product quality, relationship quality, and customer switching.
Mediating Variable:
None explicitly mentioned in the given situation.
Arguments for Switching Costs as a Moderating Variable:
Influence on Relationship Quality: Switching costs can moderate the relationship between
relationship quality and customer switching by making it more difficult for customers to switch.
For example, if a customer has invested time and effort into building a relationship with the
current service provider, the presence of high switching costs may deter them from switching
even if relationship quality decreases.
Impact on Product Quality: Similarly, switching costs can moderate the relationship between
product quality and customer switching. If a customer has invested financially in a particular
service or product (e.g., through long-term contracts or memberships), they may be less likely to
switch providers solely based on a decline in product quality.
Complex Decision-Making: Switching costs add a layer of complexity to the decision-making
process. Customers may weigh the inconvenience and additional expenses associated with
switching against the perceived benefits of better product or relationship quality. This
complexity makes the role of switching costs crucial in determining actual switching behavior.
In summary, the presence of switching costs is likely to influence how product quality and
relationship quality impact customer switching. It acts as a moderating variable, shaping the
dynamics between the determinants and the actual behavior of customers in the face of new
competitors in liberalized service markets.
QUESTION 5:
A: a) Identify the Problem:
Manager Andersen is concerned about the current customer base of the auditing firm. She is
contemplating the factors that may affect the attractiveness of the auditing firm. The identified
factors include service quality, fees charged, reputation, and proximity of the auditing firm to the
customer.
b) Develop a Diagram:
 Here's a simplified diagram representing the conceptual model:
+----------------------------------------+
| Attractiveness of Auditing Firm |
+----------------------------------------+
|
+----------------+ +-----------------------+ +----------------+
| Service Quality| | Reputation | | Proximity |
+----------------+ +-----------------------+ +----------------+
|
+-------------------+
 | Fees Charged |
+-------------------+
c) Develop the Hypotheses:
Hypothesis 1: Higher service quality is positively associated with the attractiveness of the
auditing firm.
Hypothesis 2: A positive reputation is also positively associated with the attractiveness of the
auditing firm.
Hypothesis 3: The proximity of the auditing firm to the customer is positively associated with
the attractiveness of the auditing firm because it provides personal interactions.
Hypothesis 4: The fees charged by the auditing firm are negatively associated with the
attractiveness of the firm because lower fees may contribute to higher attractiveness.
Hypothesis 5: Reputation moderates the relationship between service quality and the
attractiveness of the auditing firm. The positive impact of service quality on attractiveness is
better for auditing firms with a positive reputation.
Hypothesis 6: Proximity moderates the relationship between service quality and the
attractiveness of the auditing firm. The positive impact becomes better when the auditing firm is
near the customer.
These hypotheses collectively form the conceptual framework for understanding the factors
influencing the attractiveness of an auditing firm, as perceived by Manager Andersen. These
hypotheses provide insights into the dynamics of client perceptions in the auditing industry.
QUESTION 6:
A: Conceptual Model:
The conceptual model for the scenario involving the incidence of smoking in movies and its
impact on adolescent smoking initiation can be illustrated as follows:
+--------------------------------------+
| Incidence of Smoking in Movies |
+--------------------------------------+
|
+------------------+ +----------------------------+ +---------------------+
| Adolescent | | Identification with Film | | Attitude toward |
| Smoking | | Character | | Smoking |
| Initiation | +----------------------------+ +---------------------+
 |
+-----------------------------+
| Intentions to Start Smoking|
+-----------------------------+
Components of the Conceptual Model:
Incidence of Smoking in Movies:
How often smoking is depicted in movies.
Identification with Film Character:
The degree to which an individual identifies with a character smoking in movies.
Attitude toward Smoking:
The individual's overall attitude or perception toward smoking is influenced by exposure to
smoking in movies and identification with film characters.
Intentions to Start Smoking:
The likelihood or inclination of adolescents to initiate smoking has been influenced by their
attitude toward smoking, which, in turn, has been influenced by exposure to smoking in movies
and identification with film characters.
Key Relationships in the Conceptual Model:
Impact of Smoking in Movies:
The incidence of smoking in movies is a precursor to attitudes toward smoking and intentions to
start smoking.
Identification with Film Character:
The strength of the relationship between seeing a film character smoke and the attitude toward
smoking is influenced by the level of identification of an individual with that film character.
Consistency with Social Learning Theory:
The findings are consistent with social learning theory, which suggests that attitudes and
behaviours are learned through observation and modelling the behaviors of others.
This conceptual model illustrates the sequence of factors leading from the incidence of smoking
in movies to adolescent smoking initiation, highlighting the mediating role of attitudes and
intentions, as well as the moderating influence of identification with film characters.

QUESTION 7:
A: Important Sources of Literature:
These refer to authoritative and significant references, materials, or works that contribute to the
understanding of a particular subject or field. Important sources of literature include peer-
reviewed journal articles, books by experts, scholarly reviews, and other reputable publications.
ii. Longitudinal Study:
A longitudinal study is a research design where data is collected from the same subjects over an
extended period to examine changes or trends over time. This type of study is valuable for
investigating the development of variables or behaviors.
iii. Directional Hypothesis and Non-Directional Hypothesis:
Directional Hypothesis: This hypothesis predicts the direction of the relationship between
variables. It specifies whether the change will be increase or decrease, positive or negative.
Non-Directional Hypothesis: This hypothesis does not predict the specific direction of the
relationship between variable. It only suggests that there is a relationship.
iv. Basic Research and Applied Research:
Basic Research: Research is conducted to increase scientific knowledge and understanding
without immediate practical application. It seeks to expand our understanding of a phenomenon.
Applied Research: Research which is conducted to solve specific practical problems or answer
questions directly related to real-life issues. It aims to provide practical solutions.
v. Inductive Reasoning and Deductive Reasoning:
Inductive Reasoning: This type of reasoning involves in making generalizations based on
specific observations. It moves from specific instances to a general conclusion.
Deductive Reasoning: This type of reasoning involves starting with a general statement or
hypothesis and deriving specific predictions or conclusions from it.
vi. Null Hypothesis and Alternative Hypothesis:
Null Hypothesis (H0): A hypothesis that states there is no significant difference, effect, or
relationship in the variables.
Alternative Hypothesis (H1 or Ha): A hypothesis that states, "there is a significant difference,
effect, or relationship in the variables."
vii. Cross-Section Research:
Cross-sectional research involves collecting data from participants at a single point in time. It
provides a brief data of a population at a specific moment, allowing researchers to analyze and
compare different variables.
viii. Mediating Variable and Moderating Variable:
Mediating Variable: A variable that explains the mechanism or process through which an
independent variable influences a dependent variable.
Moderating Variable: A variable that influences the strength or direction of the relationship
between two other variables.
ix. Independent Variable and Dependent Variable:
Independent Variable: The variable manipulated or changed in an experiment to observe its
effect on the dependent variable.
Dependent Variable: The variable being measured or observed in an experiment; it is expected
to change as a result of the manipulation of the independent variable.
QUESTION 8:

Theoretical Framework:
Factors influencing Employee Performance:
Pay Rise
Working Environment
Growth Opportunity
Job Responsibility

Null and Alternative Hypotheses:

 Pay Rise:
Null Hypothesis (H0): There is no significant effect of pay rise on employee performance.
Alternative Hypothesis (Ha): Pay rise has a significant positive/negative effect on employee
performance.

 Working Environment:
Null Hypothesis (H0): The working environment has no significant impact on employee
performance.
Alternative Hypothesis (Ha): The working environment significantly influences employee
performance positively/negatively.

 Growth Opportunity:
Null Hypothesis (H0): Growth opportunities do not have significant effects on employee
performance.
Alternative Hypothesis (Ha): Growth opportunities have a significant positive/negative effect
on employee performance.
  Job Responsibility:
Null Hypothesis (H0): Job responsibility does not significantly affect employee performance.
Alternative Hypothesis (Ha): Job responsibility has a significant positive/negative effect on
employee performance.
The null hypothesis assumes that "there is no effect or relationship, while the alternative
hypothesis assumes that there is a specific direction of effect (either positive or negative)."
Researchers can conduct studies and statistical analyses to test these hypotheses and determine
the influence of each factor on employee performance.