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Testing the effects of moderator variables

A moderator variable alters the strength of the causal relationship between an independent
variable and a dependent variable. For example variable X is presumed to cause variable Y.
A moderator variable M is a variable that may alter the strength of the causal relationship
between X and Y.

For example Attitudes(X) could influence purchase intention (Y). Our Hypothesis here is
then:

H1: Attitudes influence Purchase Intention.

However, gender can moderate the relationship between attitudes and purchase intention.
Therefore it is hypothesised that:

H2: Gender moderates the relationship between attitudes and purchase intention.

According to above we first test H3 ignoring the moderator variable. Then we split the
sample into two groups (a Male group and a Female group), and test the hypothesis
separately for males and females. Having done that, we check the conclusion fort H1 with
H2. And if the conclusion is different based on the alpha values we get, we conclude that
gender moderates on the relationship between attitudes and purchase intention.

How do we do this on SPSS?

Gender as a moderator
Go back to page 35 -40 in the Idiot’s guide, where we did a bivariate regression between ‘I
had high expectations…’ and ‘LUBS is very professional’. When we did the bivariate
regression analysis we got a significance score of .000 and hence concluded as follows:

Results support the hypothesis that previously held high expectations cause high evaluation
of LUBS professionalism at p <.01 level.

Now let’s test H7 to see whether gender moderates on the relationship between the two
variables.

1. Click on Analyse, Regression, Linear.

2. Move ‘LUBS is very professional’ ,to the Dependent box and ‘I had high
expectations…’, to the Independent(s) box.
3. Move ‘What sex are you?’ to Selection Variable box and click on the Rule. Type 1
to denote Male.
4. Click on Continue and OK.
5. Check the results in the Coefficients table.
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Coefficientsa,b

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 2.968 .655 4.534 .000

I had high expectations of .350 .145 .465 2.409 .025

LUBS before coming to
LUBS

a. Dependent Variable: LUBS is very professional

b. Selecting only cases for which What sex are you? = Male

6. The Sig score is .025. Remember, when we did H3 for the whole sample, it
was .000. hence we concluded that p <. 01. But now for Males our conclusion
has to be, p < . 05. This means that the moderator variable has weakened the
relationship between the independent and the dependent variable.
7. Now let’s do the same with Females. Do the same from steps as 1 to 4 above,
and click on the Selection Variable box. Click on Rule and type 2 to denote
Female.
8. Click on Continue and OK.
9. Check the results in the Coefficients table.

Coefficientsa,b

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) -.316 .560 -.564 .581

I had high expectations of 1.053 .197 .810 5.340 .000

LUBS before coming to
LUBS

a. Dependent Variable: LUBS is very professional

b. Selecting only cases for which What sex are you? = Female

10. Sig score is .000, the same as it was for H3 (the whole sample). So for
females gender does not moderate on the relationship between the
independent and the dependent variable.

This is how you should write your conclusion re. the moderator tests carried
out.
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H7: Gender moderates on the relationship between ‘’I had high expectations of LUBS…’ and ‘LUBS
is very professional’. (Or you could have said: Gender strongly moderates on the relationship
between previously held expectations and perception of LUBS professionalism).

When the hypothesis was tested without the moderator, the hypothesis was supported at p <. 01
level (p = .000). In order to test the above hypothesis, a split group analysis between Males and
Females was carried out. The results indicate that for Female group the hypothesis is supported at
p <. 05 level, indicating that the moderator variable has weakened the causal effect the
independent variable is having on the dependent variable. In terms of females group the
hypothesis is supported at p < .01 level (p= .000), indicating that the moderator variable does not
change the strength of the causal relationship at all. Therefore, gender moderates on the
relationship between the independent and dependent variable for males, but has no effect on
females.
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Age as a moderator

The method is the same, but I suggest that you look at the frequency table
for age first.

What of the following age group you belong to?

Cumulative
Frequency Percent Valid Percent Percent

Valid under 21 13 32.5 32.5 32.5

21 - 25 17 42.5 42.5 75.0

25+ 10 25.0 25.0 100.0

Total 40 100.0 100.0

Basically you have to decide where you should split the groups in to 2.
Let’s take under 21 as the first group and 21-25 and 25+ as the other
group. Now follow these instructions:
1. Click on Analyse, Regression, Linear.
2. Move ‘LUBS is very professional’ ,to the Dependent box and ‘I had high
expectations…’, to the Independent(s) box.
3. Now click on ‘What of the following age groups you belong to?’ and
move it into Selection variable box. Now click on Rule and type 1 in
the box in front of equal to. Click on Continue and OK.
4. Look at the Sig score in the Coefficients table.
Coefficientsa,b

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .315 .657 .479 .641

I had high expectations of .864 .156 .858 5.532 .000

LUBS before coming to
LUBS

a. Dependent Variable: LUBS is very professional

b. Selecting only cases for which What of the following age group you belong to? = under 21

5. The Sig score is .000, the same as it was for the whole group. This means
that in terms of the under 21 age group, age does not moderate on the
relationship between the independent and dependent variable.
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6. Let’s now look at 21 and over group. Do steps 1 and 2 above. Click on the
Selection Variable box, and click on Rule.
7. Now click on the down arrow in front of equal to and select greater than and
click on Continue and OK.
8. Look at the Sig score in the table.

Coefficientsa,b

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) -.013 .475 -.028 .978

I had high expectations of 1.025 .128 .848 8.017 .000

LUBS before coming to
H7: AgeLUBSmoderates on the relationship between ‘previously held expectations about
LUBS’, and ‘perception
a. Dependent ofisprofessionalism
Variable: LUBS very professional of LUBS’.

1. b. Selecting only cases for which What of the following age group you belong to? > under 21

To test the above hypothesis, a split group analysis between age groups under 21 and 21
9. It is the same as the original sig score, and this means that even for age groups
or above was carried out. Results do not support the hypothesis for either one of the two
21 orimplying
age groups over group,
that age
age does
does not
not moderate
moderate onon the
the relationship
relationship between
between the
the two
independent and dependent variable
variables.

10. Since the conclusion of the causal relation between the independent and
dependent variable does not change, simply report your results as follows:
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What if you use a continuous variable (For example a 1 to 5

Scale) as a moderator?

Again the method is the same as with Age. Split the group into two by looking
at the Frequencies, and carry out two moderator tests – one for the lower
group and the other for the higher group (such as 1 and 2 as one group and
2,3 and 5 as the other group.

Dr D Palihawadana – Room 1.07 Leeds University Business School