What is the effect of moderating variables in business research? Why?
What are Moderating Variables?
Moderating variables are type of variable that affect the direct strength of relationship between a dependent variable and an independent variable. Moderating variables can be categorical variables like ethnicity, race, health status etc. and quantitative variable like age, weight, height and income.
Explaining the Moderating Variables and how they are different from Mediator Variables?
A mediator variable is like a direct relationship between an independent and dependent variable, For Example - Affect on sales by potential increase in income of target audience. This establishes a direct relation between sales and income of target audience. However if we add another variable like gender and its affect on sales and income relationship then gender would become a moderating variable.
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