THERE ARE TWO TYPES OF HYPOTHESES: DESCRIPTIVE AND CAUSAL. DESCRIPTIVE HYPOTHESES ADDRESS POSSIBLE ANSWERS TO SPECIFIC BUSINESS PROBLEMS. CAUSAL HYPOTHESES ARE THEORETICAL STATEMENTS ABOUT RELATIONSHIPS BETWEEN VARIABLES.

HYPOTHESES PROVIDE THE BASIS FOR THE RELATIONSHIPS BETWEEN CONSTRUCTS PICTURED IN CONCEPTUAL MODELS.  THERE ARE TWO TYPES OF HYPOTHESES:  DESCRIPTIVE AND CAUSAL.  DESCRIPTIVE HYPOTHESES ADDRESS POSSIBLE ANSWERS TO SPECIFIC BUSINESS PROBLEMS.  CAUSAL HYPOTHESES ARE THEORETICAL STATEMENTS ABOUT RELATIONSHIPS BETWEEN VARIABLES.

(1).  BASED ON THE FOLLOWING RESEARCH QUESTION, WRITE TWO DESCRIPTIVE HYPOTHESES:  “WHY DOES THIS RETAIL STORE ATTRACT FEWER CUSTOMERS BETWEEN THE AGES OF 18 AND 30 THAN WE ANTICIPATED?”  (50 POINTS)

(2).    CAUSAL HYPOTHESES HELP BUSINESSES UNDERSTAND HOW THEY CAN MAKE CHANGES THAT, FOR EXAMPLE, IMPROVE AWARENESS OF NEW PRODUCTS, SERVICE QUALITY, CUSTOMER SATISFACTION, LOYALTY, AND REPURCHASE.  FOR EXAMPLE, IF RESEARCHERS WANT TO PREDICT WHO WILL ADOPT A NEW TECHNOLOGICAL INNOVATION, THERE IS A GREAT DEAL OF EXISTING RESEARCH AND THEORY ON THIS TOPIC.  FORMULATE FOUR (4) CAUSAL HYPOTHESES, EITHER SHOWING A POSITIVE RELATIONSHIP OR A NEGATIVE RELATIONSHIP IN PREDICTING WHO WILL ADOPT A NEW TECHNOLOGICAL INNOVATION.  ADDITIONALLY, DRAW A CONCEPTUAL MODEL TO SHOW THE RELATIONSHIP (S).  (50 POINTS)

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