Transcript Chapter 8

CHAPTER eight
Learning Objectives
Primary Data
Collection:
Experimentation
Copyright © 2002
South-Western/Thomson Learning
Learning 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 Objectives
Learning Objectives
6. To compare types of experimental designs.
7. To gain insight into test marketing.
Learning Objectives
What is an Experiment?
To understand the nature of experiments.
An Experiment:
The researcher changes an explanatory, independent,
or experimental variable to observe changes in the
dependent variable.
Experimental
variable
Dependent
variable
marketing mix
total sales
advertising
market share
Learning Objectives
Demonstrating Causation
To understand the nature of experiments.
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
Learning Objectives
The Experimental Setting:
Laboratory or Field
To learn about the experimental setting.
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
Learning Objectives
Experimental Validity
To examine experimental validity.
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
Learning Objectives
Experimental Validity
To examine experimental validity.
Extraneous Variables: Threats to Experimental Validity
• History
• Maturation
• Instrument Variation
• Selection Bias
• Mortality
• Testing Effect
• Regression to the Mean
Learning Objectives
Experimentation: Summary
Of Basic Issues
To examine experimental validity.
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
Learning Objectives
Experimentation: Summary
Of Basic Issues
To learn the limitations of
experimentation in marketing research.
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
Experimentation: Summary
Of Basic Issues
Learning Objectives
To learn the limitations of
experimentation in marketing
research.
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
Learning Objectives
Experimentation: Summary
Of Basic Issues
To compare experimental designs.
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
Learning Objectives
Experimentation: Summary
Of Basic Issues
To compare experimental designs.
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.
Learning Objectives
Test Markets
To gain insight into test marketing.
Test Markets Defined
Any 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
Learning Objectives
Test Markets
To gain insight into test marketing.
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
Learning Objectives
Test Markets
To gain insight into test marketing.
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
Learning Objectives
Test Markets
To gain insight into test marketing.
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
Learning Objectives
SUMMARY
• What is an Experiment?
• Demonstrating Causation
• The Experimental Setting: Laboratory or Field
• Experimental Validity
• Experimentation: Summary Of Basic Issues
• Test Markets
Learning Objectives
The End
Copyright © 2002 South-Western/Thomson Learning