Chapter 3—Theory Building TRUE/FALSE A theory is an abstract, untestable explanation of some events ANS: F A theory is testable PTS: REF: p 39 NAT: AACSB: Reflective Thinking Understanding and predicting are the two purposes of theory ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 39 Risk aversion is an example of a construct ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 40 As concepts become more abstract, the easier it is to measure them ANS: F As concepts become more abstract, they are less amenable to measurement PTS: REF: p 40 NAT: AACSB: Reflective Thinking The basic or scientific business researcher operates at two levels: on the abstract level of concepts (hypotheses) and on the empirical level of variables (propositions) ANS: F The abstract level is represented by propositions, and the empirical level represents hypotheses PTS: REF: p 40 NAT: AACSB: Reflective Thinking The term inherent construct refers to a concept that is not directly observable or measurable ANS: F This is a latent construct PTS: REF: p 41 NAT: AACSB: Reflective Thinking A concept is a formal statement explaining some outcome ANS: F This is a hypothesis PTS: REF: p 42 NAT: AACSB: Reflective Thinking Examining a research hypothesis against reality using data is done through empirical testing © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 42 When the data are consistent with a hypothesis, we say the hypothesis is proven to be true ANS: F We say the hypothesis is supported PTS: REF: p 42 NAT: AACSB: Reflective Thinking 10 The process of identifying the actual measurement scales to asses the variables of interest is known as concretizing ANS: F The process is known as operationalizing PTS: REF: p 42 NAT: AACSB: Reflective Thinking 11 In most scientific situations there are alternative theories to explain certain phenomena ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 43 12 Deductive reasoning derives a conclusion about a specific instance based on general knowledge ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 44 13 Theories are derived from deductive reasoning and selective reasoning ANS: F Theories are derived from deductive reasoning and inductive reasoning PTS: REF: p 44 NAT: AACSB: Reflective Thinking 14 The scientific method is a set of prescribed procedures for establishing and connecting theoretical statements about events, for analyzing empirical evidence, and for predicting events yet unknown ANS: T PTS: NAT: AACSB: Reflective Thinking REF: p 45 15 The first step in the scientific method is to formulate concepts and propositions ANS: F This is the second step The first step is the assessment of relevant existing knowledge of a phenomenon PTS: REF: p 45 NAT: AACSB: Reflective Thinking MULTIPLE CHOICE © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 1 Psychologists explain that humans’ better recall of information that is presented visually compared to information presented verbally is due to the fact that the information is stored both visually and verbally Because it is stored using this dual-coding process, it is easier to retrieve from memory This formal logical explanation of this phenomenon is an example of a(n): a theory b construct c operationalization d latency ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 39 What are the two goals of theory? a speculation and confirmation b understanding and predicting c deducting and inducting d abstraction and concretization ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 39 Leadership, which is a generalized idea about a human trait, is an example of a(n): a hypothesis b proposition c concept d abstraction ANS: C PTS: NAT: AACSB: Reflective Thinking REF: p 40 The organization of concepts in sequence from the most concrete and individual to the most general is called the: a conceptual hierarchy b ladder of abstraction c conceptual progression d operationalization of constructs ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 40 In theory development, which of the following is the level of knowledge expressing a concept that exists only as an idea or a quality apart from an object? a empirical level b primary level c conceptual level d abstract level ANS: D PTS: NAT: AACSB: Reflective Thinking REF: p 40 At what level we “experience” reality? a empirical level b abstract level c primary level d secondary level © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 40 Attitude is a concept that is not directly observable or measurable but is measured through proxy measures This is an example of a(n): a latent construct b empirical construct c secondary construct d higher order construct ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 41 Which of the following is a statement explaining the logical linkage among certain concepts by asserting a universal connection between concepts? a hypothesis b proposition c construct d theory ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 42 “Employees dressed professionally will generate greater sales than those dressed casually” is an example of a: a theory b proposition c hypothesis d variation ANS: C PTS: NAT: AACSB: Reflective Thinking REF: p 42 10 When a researcher collects data to test a theory, what is this testing called? a confirmatory testing b empirical testing c conceptualization d deductive testing ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 42 11 Which of the following is an empirical assessment of a concept? a hypothesis b variable c construct d item ANS: B PTS: REF: p 42 NAT: AACSB: Reflective Thinking| AACSB: Technology 12 The process of identifying the actual measurement scales to assess the variables of interest is called: a operationalizing b synthesizing c verifying © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part d conceptualizing ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 42 13 _ is the logical process of deriving a conclusion about a specific instance based on a known general premise or something known to be true a Deductive reasoning b Inductive reasoning c Latent reasoning d Abstract reasoning ANS: A PTS: NAT: AACSB: Reflective Thinking REF: p 44 14 If all the trees a person has seen in his life have been green and therefore he concludes that all trees are green, which type of reasoning is he using? a deductive reasoning b inductive reasoning c generalized reasoning d conceptual reasoning ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 44 15 A researcher is testing the hypothesis stating a positive relationship between consumers’ attitudes toward a brand and their intention to purchase that brand To test this, she uses a set of prescribed procedures for establishing and connecting theoretical statements about these two constructs, for analyzing empirical evidence gathered through surveys, and for predicting future purchases This researcher is following the: a hypothetical method b scientific method c deductive method d inductive method ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 45 16 Which of the following is a step involved in the application of the scientific method? a statement of hypotheses b formulation of concepts and propositions c analysis and evaluation of data d all of the above ANS: D PTS: NAT: AACSB: Reflective Thinking REF: p 45 17 What is the LAST step in the application of the scientific method? a assessment of relevant existing knowledge of a phenomenon b proposal of an explanation of the phenomenon and statement of new problems raised by the research c design of research to test the hypothesis d acquisition of meaningful empirical data ANS: B PTS: NAT: AACSB: Reflective Thinking REF: p 45 © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part COMPLETION A formal, logical explanation of some events that includes predictions of how things relate to one another is known as a(n) ANS: theory PTS: REF: p 39 NAT: AACSB: Reflective Thinking The two purpose of theory are understanding and ANS: predicting PTS: REF: p 39 NAT: AACSB: Reflective Thinking are the building blocks of theory ANS: Concepts PTS: REF: p 40 NAT: AACSB: Reflective Thinking The organization of concepts in sequence from the most concrete and individual to the most general is called the ANS: ladder of abstraction PTS: REF: p 40 NAT: AACSB: Reflective Thinking In theory development, the level of knowledge expressing a concept that exists only as an idea or a quality apart from an object is the level ANS: abstract PTS: REF: p 40 NAT: AACSB: Reflective Thinking A concept that is not directly observable or measurable, but can be estimated through a proxy measure is known as a(n) construct ANS: latent PTS: REF: p 41 NAT: AACSB: Reflective Thinking Statements explaining the logical linkage among certain concepts by asserting a universal connection between concepts are called ANS: propositions PTS: REF: p 42 NAT: AACSB: Reflective Thinking A(n) is a formal statement explaining some outcome and is testable ANS: hypothesis © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part PTS: REF: p 42 NAT: AACSB: Reflective Thinking involves applying statistics to data to test hypotheses ANS: Empirical testing PTS: REF: p 42 NAT: AACSB: Reflective Thinking 10 When the data are inconsistent with a hypothesis, we say the hypothesis is ANS: not supported PTS: REF: p 42 NAT: AACSB: Reflective Thinking 11 If it is hypothesized that level of compensation influences workers’ intention to stay with a company, level of compensation and intentions to stay are examples of ANS: variables PTS: REF: p 42 NAT: AACSB: Reflective Thinking 12 A researcher is using income, education, and zip code as an indication of social class This process of identifying the actual measurement scales to assess social class is called ANS: operationalizing PTS: REF: p 42 NAT: AACSB: Reflective Thinking 13 Going from the general to the specific is done in reasoning ANS: deductive PTS: REF: p 44 NAT: AACSB: Reflective Thinking 14 reasoning establishes a general proposition on the basis of observation of particular facts ANS: Inductive PTS: REF: p 44 NAT: AACSB: Reflective Thinking 15 A set of prescribed procedures for establishing and connecting theoretical statements about events, for analyzing empirical evidence, and for predicting events yet unknown is called the ANS: scientific method PTS: REF: p 45 NAT: AACSB: Reflective Thinking ESSAY What is a theory, what are its goals, and why is it useful to business researchers? © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ANS: A theory is a formal, logical explanation of some events that includes predictions of how things relate to one another The two purposes of theory are understanding and predicting Accomplishing the first goal allows the theorist to gain an understanding of the relationship among various phenomena Thus a theory enables us to predict the behavior or characteristics of one phenomenon from the knowledge of another phenomenon PTS: REF: p 39 NAT: AACSB: Reflective Thinking| AACSB: Communication Compare and contrast the terms concept and variable and give an example of each ANS: A concept (or construct) is a generalized idea about a class of objects, attributes, occurrences, or processes that has been given a name Supervisory behavior or risk aversion are examples of concepts A variable is anything that may assume different numerical values and is the empirical assessment of a concept For example, supervisory behavior may be assessed through variables such as amount of time spent training employees, number of employees supervised, and degree to which employees are involved in decision-making PTS: REF: p 40| p 42 NAT: AACSB: Reflective Thinking| AACSB: Communication How does a hypothesis differ from a proposition? ANS: Propositions are statements explaining the logical linkage among certain concepts by asserting a universal connection between concepts A hypothesis is a formal statement of an unproven proposition that is empirically testable PTS: REF: p 42 NAT: AACSB: Reflective Thinking| AACSB: Communication Discuss how theories are developed ANS: At the abstract, conceptual level, a theory may be developed with deductive reasoning by going from a general statement to a specific assertion Deductive reasoning is the logical process of deriving a conclusion about a specific instance, based on a known general premise or something known to be true At the empirical level, a theory may be developed with inductive reasoning, which is the logical process of establishing a general proposition on the basis of observation of particular facts PTS: REF: p 44 NAT: AACSB: Reflective Thinking| AACSB: Communication List the steps involved in the application of the scientific method ANS: Assessment of relevant existing knowledge of a phenomenon Formulation of concepts and propositions Statement of hypotheses Design of research to test the hypotheses Acquisition of meaningful empirical data © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 6 Analysis and evaluation of data Proposal of an explanation of the phenomenon and statement of new problems raised by the research PTS: REF: p 45 NAT: AACSB: Reflective Thinking| AACSB: Communication © 2010 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ... 10 When a researcher collects data to test a theory, what is this testing called? a confirmatory testing b empirical testing c conceptualization d deductive testing ANS: B PTS: NAT: AACSB: Reflective... p 44 15 A researcher is testing the hypothesis stating a positive relationship between consumers’ attitudes toward a brand and their intention to purchase that brand To test this, she uses a set... NAT: AACSB: Reflective Thinking involves applying statistics to data to test hypotheses ANS: Empirical testing PTS: REF: p 42 NAT: AACSB: Reflective Thinking 10 When the data are inconsistent