CHAPTER 5

HYPOTHESIS DEVELOPMENT
 Hypothesis
• https://www.youtube.com/watch?v=bp2fbzWZDmA

• A proposition that is empirically testable. It is an empirical statement concerned with the

relationship among variables.

• Good hypothesis:
• Must be adequate for its purpose
• Must be testable
• Must be based on theory(s)

• 2 types:
• Null (H0) – There is no relationship/effect ...
• Alternative (H1) – There is a relationship/effect ...
 Statement of hypothesis
• Format can be:
1. If–then statements
2. Directional
3. Non-directional

• Examples:
1. If the reward is given, then the workers will be motivated.
2. The higher the reward, the higher the workers’ motivation.
3. There is a significant relationship between reward and motivation. @ Motivation
relates with reward.
Argumentation

• The expected relationships / hypotheses are an integration of:

• Exploratory research
• Common sense and logical reasoning
Exercise
Give the hypotheses for the following framework:

Service Quality Customer

(SQ) Switching (CS)

None Directional Directional

H0: SQ has no effect on CS H0: SQ has no effect on CS
H1: SQ has effect on CS H1: SQ has negative effect on CS
 Exercise
Give the hypotheses for the following framework:
Service Quality Customer
(SQ) Switching (CS)

Switching
Cost (SC)

None-Directional Directional
H0: SC has not moderates the r/ship H0: SC has not moderates the r/ship
between SQ and CS between SQ and CS
H1: SC moderates the r/ship H1: SQ has effect on CS when SC is
between SQ and CS lower
Exercise
Give the hypotheses for the following framework:

Customer Customer
Service Quality Satisfaction (CS) Switching (CSw)
(SQ)

None-Directional
H0: CS has not mediates the r/ship between SQ and CSw
H1: CS mediates the r/ship between SQ and CSw
 Managerial implications
• It is also clear that once the problem is defined, a good grasp of the four different
types of variables broadens the understanding of managers as to how multiple
factors impinge on the organizational setting.
• Knowledge of how and for what purpose the theoretical framework is developed
and the hypotheses are generated enables the manager to be an intelligent judge
of the research report submitted by the consultant.
• Likewise, knowledge of what significance means, and why a given hypothesis is
either accepted or rejected, helps the manager to persist in or desist from
following hunches, which, while making good sense, do not work.
• If such knowledge is absent, many of the findings through research will not make
much sense to the manager and decision making will bristle with confusion.
Exercise
A factory foreman is concerned about the high rate of absenteeism of his workers
every Monday morning. His hunch is that the workers drink too much during the
weekend, have a hangover on Monday mornings and cannot attend work. He also
feels that the high rate of pay they get allows them to become lethargic. From an
informal talk with his employees, the foreman finds that almost every single worker
drinks during the weekend.

However, some people said that they could handle drinks very well and never had
hangovers. “Ha! Now I know,” mused the foreman, “only those who do not have an
adequate tolerance level for alcoholic beverages suffer the effects of hangover and
remain absent on Monday mornings. Of course, high pay may also be a reason.”
 THANK YOU
(SEE YOU IN FLIPGRID FOR SOME ACTIVITY & ATTENDANCE PURPOSES….)