I am not sure whether the moderation analysis done in the following paper is correct. Please share your views on this.
Paper link Article The Effects of Consumers’ Perceived Values on Intention to P...
Dear Harmanjit Singh
At first, I would like to highlight that there are two approaches in which the moderation analysis can be applied which are the following:
- Interaction Moderation or sometimes referred to as moderated regression. In this approach, the research is interested in how a particular control variable affects the proposed hypotheses.
For example and in line with the paper you have mentioned, let's assume that you are interested in how the consumer’s purchase experience (purchasers and non-purchasers) would influence one of the relations among product attitude and purchase intention. Then at first, you should develop a hypothesis about the moderation effect is expected to be based on previous literature.
For further information, I would suggest you read the Unified Theory of Acceptance and Use of Technology by (Venkatesh et al. 2003)
- In the other hand. there is another approach using the multi-group analysis as the mentioned paper has implemented.
In this approach, the research would split the data into groups based on the grouping criteria. Then, the researcher can assess the invariance among the two groups by imposing more restrictions from one step to another. The interpretation of the results is different than a typical path analysis. Significant relation among the two groups means that the groups assess this particular path/relationship/hypothesis differently. In other words, there is a significant moderation effect.
Following with the example stated in the paper about the consumer’s purchase experience (purchasers and non-purchasers), the authors have split the data into groups and then started to add restrictions gradually. Therefore, I think that the approach used is appropriate and correct.
I am not sure what Belal Edries means that there are two approaches to moderation. All tests of moderation involve interaction effects that examine group differences in how one variable is related to another.
In this case, there is difference in the relationship between the independent and dependent variables according to the moderating variable (purchase experience) for two of the independent variables (green value and purchase attitude). For the other independent variables, their effects are the same for both categories of the purchase experience variable.
In general, I would consider the analysis in this paper to be a good example.
What Belal refers to is that according to the article he mentions, it is also possible to determine the moderation from factorial models of structural equations by dividing the sample in two groups to then apply respectively in each one simial processes of factor invariance restriction, another way in which studies have also been carried out is to add predictive paths of dummy variables of interaction effect (independent variable x moderating variable) in the dependent variable in which if there is a significant effect it is referred that it is also moderated, this is also possible SEM models
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