On the Evaluation of Main Effects in Multiplicative Regression Models
Year
1989
Author(s)
Youjae Yi
Journal
Journal of the Market Research Society
Volume
31(1)
Pages
133-138
Investigates problems in evaluating main effects of interval scaled variables in multiplicative regression models. Inclusion of a multiplicative term induces the following problems in assessing main effects: (1) conclusions can change dramatically from "strong" to "no" main effects with allowable scale transformations, (2) severe multicollinearity is introduced, and (3) the interpretation of main effects is ambiguous. A mean-centering procedure reduces these problems.