Learning ObjectivesLearning Objectives

Copyright © 2002 South-Western/Thomson Learning

Primary Data Collection:

Experimentation

CHAPTER

eight

CHAPTER

eight

Learning ObjectivesLearning Objectives

Learning Objectives

1. To understand the nature of experiments.

2. To gain insight into requirements for proving causation.

3. To learn about the experimental setting.

4. To examine experimental validity.

5. To learn the limitations of experimentation in marketing research.

Learning ObjectivesLearning Objectives

Learning Objectives

6. To compare types of experimental designs.

7. To gain insight into test marketing.

Learning ObjectivesLearning Objectives

An Experiment:

The researcher changes an explanatory, independent, or experimental variable to observe changes in the dependent variable.

To understand the nature of experiments.What is an Experiment?

Dependent variable

Experimental variable

total salesmarketing mix

advertising market share

Learning ObjectivesLearning Objectives

Concomitant Variation:

A predictable statistical relationship between two variables

Appropriate Time Order of Occurrence:

A change in an independent variable must occur before a change in the dependent variable

Elimination of Other Possible Causal Factors

The change in B was not caused by some factor other than A

Demonstrating Causation To understand the nature of experiments.

Learning ObjectivesLearning Objectives

Laboratory experiments:

Conducted in a controlled setting.

Advantages of laboratory experiments:

•Ability to control all variables

•Greater internal validity

Disadvantages of laboratory experiments:

•External validity

Field experiments:

Tests conducted outside the laboratory

The Experimental Setting:Laboratory or Field

To learn about the experimental setting.

Learning ObjectivesLearning Objectives

Internal and External Validity

Internal Validity:

The extent to which competing explanations can be ruled out.

External Validity:

The extent to which causal relationships can be generalized to outside persons, settings, and times.

Experimental Notation:

X indicates exposure

O for observation

O1 X O2 for time periods

To examine experimental validity.Experimental Validity

Learning ObjectivesLearning Objectives

Extraneous Variables: Threats to Experimental Validity

• History

• Maturation

• Instrument Variation

• Selection Bias

• Mortality

• Testing Effect

• Regression to the Mean

To examine experimental validity.Experimental Validity

Learning ObjectivesLearning Objectives

Experimental Design and Treatment

Experimental Design:

Researcher has control of variables and manipulates them.

1. Treatment

2. Subjects

3. Dependent variable

4. Plan for extraneous causal factors

To examine experimental validity.Experimentation: Summary

Of Basic Issues

Learning ObjectivesLearning Objectives

Experimental Effects

The effect of the treatment variable on the dependent variable.

The Control of Other (Extraneous) Causal Factors

• Randomization

• Physical Control

• Design Control

• Statistical Control

To learn the limitations of experimentation in marketing research.

Experimentation: Summary Of Basic Issues

Learning ObjectivesLearning Objectives

Why Experiments Are Not Used More Often

• The High Cost of Experiments

• Security Issues

• exposing to the actual marketplace

• competitors

• Implementation Problems

• cooperation

• contamination

• differences: test market/population

• lack of control group

To learn the limitations of experimentation in marketing research.

Experimentation: Summary Of Basic Issues

Learning ObjectivesLearning Objectives

Selected Experimental Designs

Three Preexperimental Designs

• The One-Shot Case Study

• The One-Group Pretest-Posttest Design

• The Static-Group Comparison

Three True Experimental Designs

• Before and After with Control Group

• The Solomon Four-Group Design

• The After-Only with Control Group

To compare experimental designs.Experimentation: Summary

Of Basic Issues

Learning ObjectivesLearning Objectives

Quasi-Experiments

Developed to deal with external validity

Researcher lacks complete over the scheduling of treatment or must assign treatment in a nonrandom manner.

Interrupted Time-Series Designs

• The treatment interrupts repeated measurements.

Multiple Time-Series Designs

• An interrupted time-series design with a control group.

To compare experimental designs.Experimentation: Summary

Of Basic Issues

Learning ObjectivesLearning Objectives

Test Markets DefinedAny research that involves:

• Testing a new product or change in an existing marketing strategy.

• The use of experimental or quasi - experimental procedures

Test Market Usage and Objectives• Estimate of market share• Effect on sales of similar products• Characteristics of consumers• Behavior of competitors

To gain insight into test marketing.Test Markets

Learning ObjectivesLearning Objectives

Costs of Test Marketing

Costs include: commercials, advertising, research, coupons, sampling

Deciding Whether to Conduct a Test Market

• To obtain a good estimate of the sales potential under realistic conditions

• To identify weaknesses of the product

To gain insight into test marketing.Test Markets

Learning ObjectivesLearning Objectives

Steps in a Test Market Study

• Define the Objective

• Select a Basic Approach

• Develop Detailed Procedures for the Test

• Select Markets for the Test

• Execute the Plan

• Analyze the Test Results

To gain insight into test marketing.Test Markets

Learning ObjectivesLearning Objectives

Simulated Test Markets (STM)

•uses survey data and mathematical models to simulate test market results

•also called pretest market.

Other Types of Test Marketing

• A rolling rollout

• Lead country strategy

• Line extensions

To gain insight into test marketing.Test Markets

Learning ObjectivesLearning Objectives

• What is an Experiment?

• Demonstrating Causation

• The Experimental Setting: Laboratory or Field

• Experimental Validity

• Experimentation: Summary Of Basic Issues

• Test Markets

SUMMARY

Learning ObjectivesLearning Objectives

The End

Copyright © 2002 South-Western/Thomson Learning