Concerned about her current customer base, manager Andersen started to think of factors that might affect the attractiveness of an auditing firm. Of course, the service quality provided, and the fees charged by the auditor seem two important factors. Next, she decides that the reputation of the auditing firm also needs to be included in the framework as an independent variable. As illustrated by the dramatic effects of recent auditing scandals, reputation seem especially important for large auditors (i.e., auditing firms that are large in size). Finally, the manager also thinks that the proximity very likely affects the possibility for the client to personally meet with the auditors on a regular basis and she knows from her own contact with customers that they perceive personal interactions as quite important.

In 300 words or greater, answer the following for this case:

a. identify the problem

b. discuss the conceptual model

c. Develop the hypothesis