Ch12 experimental research
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Experimental research involves manipulating an independent variable and measuring its effect on a dependent variable while controlling for extraneous variables. There are various experimental designs including completely randomized designs, randomized block designs, Latin square designs, and factorial designs. Test marketing is a type of experimental research conducted in realistic market conditions to estimate outcomes and identify weaknesses in new product or marketing plan ideas before broader implementation.
Ch12 experimental research
- 1. Business Research Methods William G. Zikmund Chapter 12: Experimental Research
- 2. Experiment • A research investigation in which conditions are controlled • One independent variable is manipulated (sometimes more than one) • Its effect on a dependent variable is measured • To test a hypothesis
- 3. Basic Issues of Experimental Design • Manipulation of the Independent Variable • Selection of Dependent Variable • Assignment of Subjects (or other Test Units) • Control Over Extraneous Variables
- 4. The experimenter has some degree of control over the independent variable. The variable is independent because its value can be manipulated by the experimenter to whatever he or she wishes it to be.
- 5. Experiment Treatment Alternative manipulations of the independent variable being investigated
- 6. Independent Variable • The experimenter controls independent variable. • The variable’s value can be manipulated by the experimenters to whatever they wish it to be.
- 7. Manipulation of Independent Variable • Classificatory Vs. continuous variables • Experimental and control groups • Treatment levels • More than one independent variable
- 8. Experimental Treatments • The alternative manipulations of the independent variable being investigated
- 9. Dependent Variable • Its value is expected to be dependent on the experimenter’s manipulation • Criterion or standard by which the results are judged
- 10. Dependent Variable • Selection –e.g... sales volume, awareness, recall, • Measurement
- 11. Test Units • Subjects or entities whose response to the experimental treatment are measured or observed.
- 12. Two Types of Experimental Error • Constant errors • Random errors
- 13. Field versus Laboratory Experiments
- 14. Controlling Extraneous Variables • Elimination of extraneous variables • Constancy of conditions • Order of presentation • Blinding • Random assignment
- 15. How May an Experimenter control for Extraneous Variation? • Eliminate Extraneous Variables • Hold Conditions Constant • Randomization • Matching Subjects
- 17. Demand Characteristics • Experimental procedures that intentionally hint to subjects something about the experimenter’s hypothesis
- 18. Demand Characteristics • Guinea pig effect • Hawthorne effect
- 19. Field Vs. Laboratory Experiment
- 20. Laboratory Experiment Field Experiment Artificial-Low Realism Few Extraneous Variables High control Low Cost Short Duration Subjects Aware of Participation Natural-High Realism Many Extraneous Variables Low control High Cost Long Duration Subjects Unaware of Participation
- 21. Control Groups Isolate extraneous variation
- 22. When does an Experiment have Internal Validity? Internal Validity - The ability of an experiment to answer the question whether the experimental treatment was the sole cause of changes in a dependent variable Did the manipulation do what it was supposed to do?
- 23. Factors Influencing Internal Validity • History • Maturation • Testing • Instrumentation • Selection • Mortality
- 24. Isolating Extraneous Variation with a Control Group • History Effects • Maturation Effects • Mortality Effects
- 25. Type of Extraneous Variable Example History - Specific events in the environment between the Before and After measurement that are beyond the experimenter’s control Maturation - Subjects change during the course of the experiment Testing - The Before measure alerts or sensitizes subject to nature of experiment or second measure. A major employer closes its plant in test market area Subjects become tired Questionnaire about the traditional role of women triggers enhanced awareness of women in an experiment.
- 26. Instrument - Changes in instrument result in response bias Selection - Sample selection error because of differential selection comparison groups Mortality - Sample attrition; some subjects withdraw from experiment New questions about women are interpreted differently from earlier questions. Control group and experimental group is self-selected group based on preference for soft drinks Subjects in one group of a hair dying study marry rich widows and move to Florida
- 27. How can Internal Validity Increase?
- 28. Increasing Internal Validity • Control group • Random assignment • Pretesting and posttesting • Posttest only
- 29. What are the Different Basic Experimental Designs?
- 30. Quasi-Experimental Designs • One Shot Design (After Only) • One Group Pretest-Posttest • Static Group Design
- 31. One Shot Design (After Only) X O1
- 32. One Group Pretest-Posttest O1 X O2
- 33. Static Group Design Experimental Group X O1 Control Group O2
- 34. Three Good Experimental Designs • Pretest - Posttest Control Group Design • Posttest Only Control Group • Solomon Four Group Design
- 35. Pretest-Posttest Control Group Design Experimental Group R O1 X O2 Control Group R O3 X O4
- 36. Posttest Only Control Group Experimental Group R X O1 Control Group R O2
- 37. One-Shot Design Internal Validity Problems • History – weak • Maturation – weak • Testing – not relevant • Instrumentation – not relevant • Selection – weak • Mortality – weak
- 38. One-Group Pretest-Posttest Internal Validity Problems • History – weak • Maturation – weak • Testing – weak • Instrumentation – weak • Selection – controlled • Mortality – controlled
- 39. Static-Group Design Internal Validity Problems • History – controlled • Maturation – possible source of concern • Testing – controlled • Instrumentation – controlled • Selection – weak • Mortality – weak
- 40. Pretest-Posttest Control Internal Validity Problems • History – controlled • Maturation – controlled • Testing – controlled • Instrumentation – controlled • Selection – controlled • Mortality – controlled
- 41. Solomon Four-Group Design Internal Validity Problems • History – controlled • Maturation – controlled • Testing – controlled • Instrumentation – controlled • Selection – controlled • Mortality – controlled
- 42. Posttest-Only Control Internal Validity Problems • History – controlled • Maturation – controlled • Testing – controlled • Instrumentation – controlled • Selection – controlled • Mortality – controlled
- 43. Solomon Four Group Design Experimental Group 1: R O1 X O2 Control Group 1: R O3 O4 Experimental Group 2: R X O5 Control Group 2: R X O6
- 44. Advanced Experimental Designs are More Complex • Completely randomized • Randomized block design • Latin square • Factorial
- 45. Completely Randomized Design • An experimental design that uses a random process to assign subjects (test units) and treatments to investigate the effects of only one independent variable.
- 46. Completely Randomized Designs Average minutes shopper spends in store Control: no music Experimental treatment: slow music Experimental treatment: fast music 16 18 12
- 47. Independent Variable A Level 1 Level 2 Level 3 Group A Group B Group C
- 48. Completely Randomized Design With a pretest posttest Group A R O1 X1 O2 Group A R O3 X2 O4 Group A R O5 X3 O6
- 49. Completely Randomized Design With a posttest Group A R X1 O1 Group B R X2 O2 Group C R X3 O3
- 50. Randomized Block Design • An extension of the completely randomized design in which a single extraneous variable that might affect test units’ response to the treatment has been identified and the effects of this variable are isolated by blocking out its effects.
- 51. Independent Variables Control: no music Experimental treatment slow music Experimental treatment: fast music Mornings and afternoons Evening hours Blocking variable Randomized Block Design
- 52. Factorial Design • An experiment that investigates the interaction of two or more variables on a single dependent variable.
- 53. Independent Variable 1 No Music cart signs No Music Slow Music Fast Music Grocery cart signs Independent Variable 2
- 54. Factorial Design -- Roller Skates Package Design Price Red Gold $25 Cell 1 Cell 4 $30 Cell 2 Cell 5 $35 Cell 3 Cell 6
- 55. Effects • Main effect • The influence of a single independent variable on a dependent variable. • Interaction effect • The influence on a dependent variable by combinations of two or more independent variables.
- 56. 2 x 2 Factorial Design Men Women Ad A Ad B 65 65 70 60 Main Effects of Gender Main Effects of Ad > >
- 57. 100 90 80 70 60 50 40 30 20 10 Women Men Ad A Ad B Believability Interaction Between Gender and Advertising Copy
- 58. Level 1 Level 2 Level 1 Level 2 Group A Group B Group C Group D Independent Variable 2 Independent Variable 1
- 59. 2 x 2 Factorial with a Pretest Posttest Group A R O1 X11 O2 Group B R O3 X21 O4 Group C R O5 X12 O6 Group D R O7 X22 O8
- 60. 2 x 2 Factorial Design with a Posttest Measure Group A R X11 O1 Group B R X21 O2 Group C R X12 O3 Group D R X22 O4
- 61. A Test Market Experiment on Pricing Sales in Units (thousands) Regular Price $.99 130 118 87 84 X1=104.75 X=119.58 Reduced Price $.89 145 143 120 131 X2=134.75 Cents-Off Coupon Regular Price 153 129 96 99 X1=119.25 Test Market A, B, or C Test Market D, E, or F Test Market G, H, or I Test Market J, K, or L Mean Grand Mean
- 62. Latin Square Design • A balanced, two-way classification scheme that attempts to control or block out the effect of two or more extraneous factors by restricting randomization with respect to the row and column effects.
- 63. Order of Usage 1 2 3 1 A B C 2 B C A 3 C A B SUBJECT
- 64. TEST MARKETING NNoott jjuusstt ttrryyiinngg ssoommeetthhiinngg oouutt CCoonnttrroolllleedd eexxppeerriimmeennttaattiioonn BBuutt sscciieennttiiffiicc tteessttiinngg
- 65. Test Marketing NNoott jjuusstt ttrryyiinngg ssoommeetthhiinngg oouutt CCoonnttrroolllleedd eexxppeerriimmeennttaattiioonn BBuutt sscciieennttiiffiicc tteessttiinngg
- 66. Test Marketing • An experimental procedure that provides an opportunity to test a new product or a new marketing plan under realistic market conditions to measure sales or profit potential.
- 67. Functions of Test Marketing EESSTTIIMMAATTEE OOUUTTCCOOMMEESS IIDDEENNTTIIFFYY AANNDD CCOORRRREECCTT WWEEAAKKNNEESSSSEESS IINN PPLLAANNSS
- 68. A Lengthy and Costly Procedure $$$$$$$$$$ LLoossss ooff SSeeccrreeccyy WWhheenn nnoott ttoo TTeesstt?? HHooww LLoonngg SShhoouulldd aa TTeesstt LLaasstt??
- 69. Popular Test Markets • Pittsfield, Massachusetts • Charlotte, North Carolina • Columbus, Ohio • Little Rock, Arkansas • Evansville, Indiana • Cedar Rapids, Iowa • Eau Claire,Wisconsin • Wichita, Kansas • Tulsa, Oklahoma • Omaha, Nebraska • Grand Junction. Colorado • Wichita Falls, Texas • Odessa-Midland, Texas
- 70. Selecting a Test Market • Population size • Demographic composition • Lifestyle considerations • Competitive situation • Media • Self-contained trading area • Overused markets - secrecy
- 71. Control Method of Test Marketing • Small city • Low chance of being detected • Distribution is forced (guaranteed)
- 72. The Advantages of Using the Control Method of Test Marketing • Reduced costs • Shorter time period needed for reading test market results • Increased secrecy from competitors • No distraction of company salespeople from regular product lines
- 73. Some Problems Estimating Sales Volume • Over-attention • Unrealistic store conditions • Reading competitive environment incorrectly • Incorrect volume forecasts – Adjusted data – Penetration and repeat purchase rate • Time lapse
- 74. High Tech Test Markets EElleeccttrriicc TTeesstt MMaarrkkeettss SSiimmuullaatteedd TTeesstt MMaarrkkeettss VViirrttuuaall--rreeaalliittyy SSiimmuullaatteedd TTeesstt MMaarrkkeettss