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Corporate social responsibility study. The importance that
Chapter 9, Problem 71E(choose chapter or problem)
Corporate social responsibility study. The importance that consumers place on the social responsibility of firms has grown over the past decade. As a consequence, corporations are developing more socially responsible strategies and procedures (e.g., corporate sustainability, fair-trade policies). The perceptions consumers have of these strategies were investigated in the Journal of Marketing (November 2009). Undergraduate marketing students were provided information on a firm’s irresponsible behaviors as well as public statements made by the firm to promote its corporate social responsibility policy. Each student then rated the level of hypocrisy in the statements on a 7-point scale. Students were divided into groups depending on the type of statement they were given (concrete or abstract) and on the order of information provided (statement first or corporate behavior first). The researchers analyzed the data using a \(2\ \times\ 2\) factorial design.
a. Identify the factors and treatments in this experiment.
b. An ANOVA F-test for the interaction between statement type and order of information was found to be significant (p-value < .01). Practically interpret this result.
c. The means for the four treatments are shown in the table. Graph these means to demonstrate the nature of the interaction.
d. Based on the result, part b, advise the researchers on whether or not they should perform main effect tests.
Questions & Answers
QUESTION:
Corporate social responsibility study. The importance that consumers place on the social responsibility of firms has grown over the past decade. As a consequence, corporations are developing more socially responsible strategies and procedures (e.g., corporate sustainability, fair-trade policies). The perceptions consumers have of these strategies were investigated in the Journal of Marketing (November 2009). Undergraduate marketing students were provided information on a firm’s irresponsible behaviors as well as public statements made by the firm to promote its corporate social responsibility policy. Each student then rated the level of hypocrisy in the statements on a 7-point scale. Students were divided into groups depending on the type of statement they were given (concrete or abstract) and on the order of information provided (statement first or corporate behavior first). The researchers analyzed the data using a \(2\ \times\ 2\) factorial design.
a. Identify the factors and treatments in this experiment.
b. An ANOVA F-test for the interaction between statement type and order of information was found to be significant (p-value < .01). Practically interpret this result.
c. The means for the four treatments are shown in the table. Graph these means to demonstrate the nature of the interaction.
d. Based on the result, part b, advise the researchers on whether or not they should perform main effect tests.
ANSWER:
Step 1 of 5
(a)
The experimental design utilized in this study is a complete 2 x 2 factorial design, since all possible combinations of the factors are considered in the experiment. That is, two types of statements and two orders of information are utilized for this study.
Factors:
The fixed effects of a complete factorial design are called factors. Thus, the factors involved in this study are two types of statements. That is, concrete and abstract are the factors for this study.
Factor levels:
The levels of a factor are the values that are considered in the experiment. In this study, the factor levels are order of information, which are statement first and behavior first.
Treatments:
In the experiment, the combination of the factor level is termed as treatments. Here, the factor level combinations are 2 x 2 = 4 combinations of types of statements and order of information. That is, concrete and statement first, concrete and behavior first, abstract and statement first, abstract and behavior first.