MIS 224

2022 Spring, PS-2

Theoretical Framework & Variables

 What is a theoretical framework?

 Types of variables

 Dependent Variable (DV)

 Independent Variable (IV)
 Moderating Variable (MV)
 Intervening Variable (IVV)

Example-1: Factors influencing decision to purchase a product

Construct a theoretical framework using the variables given as follows:

- Product Quality
- Consumer Confidence
- Price
- Need for product
- Brand Name
- Brand Loyalty
- Purchase Decision

Example-2: Private Medical Clinic

Create a theoretical framework using the following variables. There must be one moderating
variable and one intervening variable in the framework. Explain the moderating and
intervening variables’ roles.

• Success of doctor’s diagnosis/treatment

• Physical facilities of the clinic
• Importance given to building personal connection with the doctor
• Satisfaction from medical services in a private clinic
• Doctor’s personal attitude toward patient
• Feeling of comfort and relaxation in the clinic environment

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Example-3: ABC Bank

Managers of ABC Bank want to study the factors that affect their customers’ adoption of online
banking activities. They believe that user-friendliness of the online branch, variety of services
provided online, cost reductions provided by the online branch, informativeness of the online
branch about the security technologies used, and presence of online customer support such as
live help are the important factors that can be expected to increase the usage of online banking.
Information about security technologies can increase consumer trust, thus resulting in an
expectation of higher adoption of online banking. Also, presence of customer support can
decrease consumers’ fear of doing something wrong online, thus, leading them to adopt online
banking more easily. However, bank managers also believe that regardless of what they do to
promote the online branch, consumers who have a general tendency to resist technological
advancements will be less influenced from all these features and their tendency to adopt online
banking will not increase greatly compared to more tech-savvy consumers. Bank managers will
collect data about all of these variables and conduct relevant analyses.

Example-4: CRM Programs

A researcher wants to test a theoretical model about the impact of CRM programs on customer
loyalty. According to the framework, economic incentives provided by the program, successful
complaint management, and personalizability of program features are all important to increase
consumers’ level of benefiting from the program and, consequently, developing loyalty toward
the brand. However, in sectors where competition is intense and there are many competing
brands, even though customers are benefiting greatly from a CRM program, their tendency to
stay loyal to a single brand might be lower.
Identify all variable types for the research study above. If there are intervening and
moderating variables, which other variables they intervene or which relationship they moderate
should also be identified.