Moderating Variables
Group 5
Marketing Research Course Group
Presentation Assignment I
December 12, 2025
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Group 5 Member Lists
1. Abibo Tigabu
2. Addisu Milkit
3. Aleminesh Berie
4. Alemtsehay Bicha
5. Berhanemeskel [Link]
6. Dawit Birara 2
Presentation Outline
1. Types of variables
2. Definition of Moderating Variables
3. Difference between Mediating and
Moderating variables
4. Effects of Moderating variables
5. Assessment of Moderating variables
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1. Types of Variables
1. Independent variables
• are variables which are manipulated or controlled or
changed.
• It is what the researcher studies to see its relationship
or effects.
• Presumed or possible cause
2. Dependent variables
• are the outcome variables and are the variables for
which we calculate statistics.
• The variable which changes on account of independent
variable is known as dependent variable.
• i.e. It is influenced or affected by the independent variable
• Presumed results(Effect)
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2. Definition of Moderating Variables
• A moderating variable is a type of variable that affects
the relationship between a dependent variable and
an independent variable.
• A moderator is something that acts upon the
relationship between two variables and changes its
direction or strength.
• For example, mental health status may moderate the
relationship between sleep quality and academic
achievement:
• the relationship might be stronger for people without
diagnosed mental health conditions than for people with
them.
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2. Definition of Moderating Variables
• In a moderation relationship, you can draw an arrow from the
moderator to the relationship between an independent and
dependent variable.
• Moderated mediation, also known as conditional indirect effects,
occurs when the treatment effect of an independent variable A on
an outcome variable C via a mediator variable B differs depending on
levels of a moderator variable D.
• Specifically, either the effect of A on B, and/or the effect of B on C depends on
the level of D.
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2. Definition of Moderating Variables
Moderators can be:
• Categorical variables such as ethnicity, race, religion, favorite
colors, health status, or stimulus type,
• Quantitative variables such as age, weight, height, income, or
visual stimulus size.
Example: Moderator variables
In a study on work experience and salary, you hypothesize that:
• Years of work experience predicts salary, when controlling for
relevant variables,
• Gender identity moderates the relationship between work
experience and salary.
• This means that the relationship between years of experience
and salary would differ between men, women, and those who
do not identify as men or women. 7
3. Difference between Mediating and
Moderating variables
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3. Difference between Mediating and Moderating variables
• Moderator: third variable that affects strength of
relationship between two other variables
• Ex: relationship between performance and salary
depends on gender
• Ex: relationship between X1 and Y is strong, especially
if X2 is also strong
• Mediator: third variable that acts as generative
mechanism between two other variables
• Ex: performance mediates relationship between job
knowledge and salary
• Ex: X1 “causes” X2 which “causes” Y
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4. Effects of Moderating Variables
• A moderator influences the level, direction, or
presence of a relationship between variables.
• It shows you for whom, when, or under what
circumstances a relationship will hold.
• Moderators usually help you judge the external
validity of your study by identifying the
limitations of when the relationship between
variables holds.
• For example, while social media use can predict
levels of loneliness, this relationship may be
stronger for adolescents than for older adults.
• Age is a moderator here.
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5. Assessment of Moderating variables
• In correlation, a moderator is a third variable that
affects the correlation of two variables.
• In a causal relationship, if x is the predictor variable
and y is an outcome variable, then z is the moderator
variable that affects the casual relationship of x and
y.
1. In ANOVA, the moderator variable effect is
represented by the interaction effect between the
dependent variable and the factor variable.
2. Most of the moderator variables measure causal
relationship using regression coefficient.
• The moderator variable, if found to be significant, can
cause an amplifying or weakening effect between x and y.
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5. Assessment of Moderating variables
Moderated regression analysis:
• This is a regression based technique that is used to identify
the moderator variable.
• To explain how MRA technique works, we can use the
following example:
Let:
(1)
(2)
(3)
• In this equation,
• If (the interaction between the independent variable and moderator
variable) is not statistically significant, then Z is not a moderator
variable, it is just an independent variable.
• If interaction is statistically significant, then Z will be a moderator
variable, and thus moderation is supported.
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Thank
You
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