Type of statistical test?

[Iron21]

I am trying to measure if customer service or product quality is having an impact on performance. I am not sure what test to use? The questionnaire are all likert scale type questions with 5 level options like: strongly agree, agree, neutral etc. I was thinking of using chi square test since both are categorical variables.

 

[staassis]

What does each row in your data set represent? How many observations (data points) do you have? Please list all the variables / question categories in your data set.

 

[Iron21]

Each row represents each Participant. Total are 120 observations. My research question is to find out if customer service(5 point likert scale) or product quality(5 point likert scale) is having a negative impact on the performance(5 point likert scale) of the business? Independent variables are customer service and product quality and dependent variable is performance.

 

[staassis]

So are you are saying that there are only 3 variables (columns) in your data set? What do you mean by "performance"? What exactly is going on?

 

[Iron21]

Yes correct, only 3 columns. Okay performance is a broad name and refers to many aspects. When I say performance I mean financial performance of the business. I'm trying to see which one 'customer service' or ' product quality' is negatively impacting the profits( financial performance) of the firm.

 

[staassis]

1] Play with modeling frameworks of the form

g(Performance) = B0 + B1 * Customer Service + B2 * Customer Service^2 + B3 * Product Quality + B4 * Product Quality^2 + B5 * Customer Service * Product Quality,

where g() is some non-linear function or g(y) = y. In each such modeling framework (for each function g), develop a model with only statistically significant terms using forward stepwise selection.

2] Compare different modeling frameworks and choose the best one using root-mean-square error and residual diagnostics.

 

[obh]

PS, the Likert with 5 doesn't distribute normally, but the requirement is for a residuals' normality.
|Any way in your case you use a large sample size (120) so it shouldn't be a problem even if the distribution of the residuals skewed (not symmetrical)