The multicollinearity illusion in moderated regression analysis

David Disatnik; Liron Sivan

doi:10.1007/s11002-014-9339-5

The multicollinearity illusion in moderated regression analysis

David Disatnik
, Liron Sivan

Coller School of Management

Tel Aviv University

Research output: Contribution to journal › Article › peer-review

Abstract

Numerous papers in the fields of marketing and consumer behavior that utilize moderated multiple regression express concerns regarding the existence of a multicollinearity problem in their analyses. In most cases, however, as we show in this paper, the perceived multicollinearity problem is merely an illusion that arises from misinterpreting high correlations between independent variables and interaction terms.

Original language	English
Pages (from-to)	403-408
Number of pages	6
Journal	Marketing Letters
Volume	27
Issue number	2
DOIs	https://doi.org/10.1007/s11002-014-9339-5
State	Published - 1 Jun 2016

Keywords

Interaction
Moderated multiple regression
Multicollinearity
Regression analysis

ASJC Scopus subject areas

Business and International Management
Economics and Econometrics
Marketing

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10.1007/s11002-014-9339-5

Cite this

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title = "The multicollinearity illusion in moderated regression analysis",

abstract = "Numerous papers in the fields of marketing and consumer behavior that utilize moderated multiple regression express concerns regarding the existence of a multicollinearity problem in their analyses. In most cases, however, as we show in this paper, the perceived multicollinearity problem is merely an illusion that arises from misinterpreting high correlations between independent variables and interaction terms.",

keywords = "Interaction, Moderated multiple regression, Multicollinearity, Regression analysis",

author = "David Disatnik and Liron Sivan",

note = "Funding Information: We gratefully acknowledge the financial support from the Henry Crown Institute of Business Research in Israel. We thank Frank Kardes (the editor), an anonymous referee, Julie Irwin, Gary McClelland, and Yael Steinhart for veryhelpful comments and insights. Publisher Copyright: {\textcopyright} 2014, Springer Science+Business Media New York.",

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N2 - Numerous papers in the fields of marketing and consumer behavior that utilize moderated multiple regression express concerns regarding the existence of a multicollinearity problem in their analyses. In most cases, however, as we show in this paper, the perceived multicollinearity problem is merely an illusion that arises from misinterpreting high correlations between independent variables and interaction terms.

AB - Numerous papers in the fields of marketing and consumer behavior that utilize moderated multiple regression express concerns regarding the existence of a multicollinearity problem in their analyses. In most cases, however, as we show in this paper, the perceived multicollinearity problem is merely an illusion that arises from misinterpreting high correlations between independent variables and interaction terms.

KW - Interaction

KW - Moderated multiple regression

KW - Multicollinearity

KW - Regression analysis

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ER -

The multicollinearity illusion in moderated regression analysis

Abstract

Keywords

ASJC Scopus subject areas

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