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Hi all,

How does one make a gender a moderator in a direct relationship?

For instance in the diagram attached.

How would we make gender a moderator between air travel risk perception and mas brand image?

I have tried using the PLS textbook but it mostly guides for SmartPLS 2.0. I would appreciate some key steps on how to do moderation when the variable is a demographic variable.

Many Thanks,
Priyanka

First, you need to model a direct effect from gender on mas brand image.
Second, you right click on mas brand image and choose to choose "Add Moderating Effect".

Hi,

For categorical variables such as gender can not be done interactions. You must run muligroup analysis.
If there are only two values (0, 1), the interactions will be biased.

Best,

Dear Latan,
why would you think that an interaction with a 0/1 dummy variable is not allowed? It is a standard soluation that can be very meaningful.

Hi Jan,

When we use a dummy variable as moderation, we will not know whether the effect of X on Y will depend on male or female (e.g, gender). This will produce different effects if run Multigroup Analysis. In addition, dummy variables can not direct interaction, because the values 0 and 1 will give the same value if multiplied.
Reference:
Hardy, M. A. (1993). Regression with Dummy Variables. Newbury Park, Sage.

Best regards,

Interactions with 0/1 dummies are a common practice in moderated regression. In PLS you just have to make sure that you do the correct interpretation of the effects, because of the inherent standardization of the variables. Thus, it is often easier to do a multi-group analysis in such cases. However, sometimes it is better to use the interaction approach as it has higher power, because you can use the full sample and do not have to split it into two separate samples with small sample sizes.