Copyright © 2008 by Nelson, a division of Thomson Canada Limited Chapter 10 Part 2 Designing Research Studies EXPERIMENTAL RESEARCH AND TEST MARKETING

Copyright © 2008 by Nelson, a division of Thomson Canada Limited

Chapter

10

Part 2

Designing Research Studies

EXPERIMENTAL RESEARCH AND TEST

MARKETING

LEARNING OBJECTIVESLEARNING OBJECTIVESLEARNING OBJECTIVESLEARNING OBJECTIVES

1. To define experimentation and discuss the requirements for making a true experiment

2. To understand the terminology of experimentation

3. To compare and contrast the two basic types of experimental error

4. To discuss how to control extraneous variables in experimental situations

5. To distinguish between internal and external validity

6. To outline the various quasiexperimental designs and alternative, better experimental designs

What you will learn in this chapter

Copyright © 2008 by Nelson, a division of Thomson Canada Limited 10–1

LEARNING OBJECTIVES (cont’d)LEARNING OBJECTIVES (cont’d)LEARNING OBJECTIVES (cont’d)LEARNING OBJECTIVES (cont’d)

7. To discuss the useful functions that test marketing performs for marketing management

8. To understand what factors to consider in selecting a test market

What you will learn in this chapter


• ExperimentExperimentA research method in which conditions are controlled

so that one or more independent variables can be manipulated to test a hypothesis about a dependent variable

Experimentation allows evaluation of causal relationships among variables while all other variables are eliminated or controlled

The Nature of ExperimentsThe Nature of ExperimentsThe Nature of ExperimentsThe Nature of Experiments


• Manipulation of the Independent VariableManipulation of the Independent VariableIndependent variable

In an experimental design, the variable that can be manipulated, changed, or altered independently of any other variable

Experimental treatments Alternative manipulations of the independent variable being

investigated

Basic Issues in Experimental DesignBasic Issues in Experimental DesignBasic Issues in Experimental DesignBasic Issues in Experimental Design


• Manipulation of the Independent Variable Manipulation of the Independent Variable (cont’d)(cont’d)Experimental and control groups

Experimental group: The group of subjects exposed to the experimental treatment

Control group: The group of subjects exposed to the control condition in an experiment—that is, not exposed to the experimental treatment

Several experimental treatment levelsMore than one independent variable

It is possible to assess the effects of more than one independent variable by using more complex experimental designs

Basic Issues in Experimental Design (cont’d)Basic Issues in Experimental Design (cont’d)Basic Issues in Experimental Design (cont’d)Basic Issues in Experimental Design (cont’d)


• Selection and Measurement of the Dependent Selection and Measurement of the Dependent VariableVariableDependent variable

The criterion or standard by which the results of an experiment are judged; a variable expected to be dependent on the experimenter’s manipulation of the independent variable



• Selection and Assignment of Test UnitsSelection and Assignment of Test UnitsTest units

Subjects or entities whose responses to experimental treatments are observed or measured

Sample selection and random sampling errors Random sampling error: An error that occurs because of

chance; statistical fluctuations in which repetitions of the basic experiment sometimes favour one experimental condition and sometimes the other

Randomization A procedure in which the assignment of subjects and

treatments to groups is based on chance



• Selection and Assignment of Test Units (cont’d)Selection and Assignment of Test Units (cont’d)Matching

A procedure for the assignment of subjects to groups that ensures each group of respondents is matched on the basis of pertinent characteristics

Repeated measures Experimental technique in which the same subjects are

exposed to all experimental treatments to eliminate any problems due to subject differences



• Control Over Extraneous VariablesControl Over Extraneous VariablesConstant experimental error

An error that occurs in the same experimental condition every time the basic experiment is repeated

Demand characteristics Experimental design procedures or situational aspects of an

experiment that provide unintentional hints about the experimenter’s hypothesis to subjects

Guinea pig effect Hawthorne effect Blinding effect Double-blind design Constancy of conditions



Debriefing The process of providing subjects with all pertinent facts

about the nature and purpose of an experiment after its completion

Privacy ConfidentialityDeception Accuracy

Ethical Issues in ExperimentationEthical Issues in ExperimentationEthical Issues in ExperimentationEthical Issues in Experimentation


• Basic versus Factorial Experimental DesignsBasic versus Factorial Experimental DesignsIn basic experimental designs a single independent

variable is manipulated to observe its effect on a single dependent variable

Factorial experimental designs allow for an investigation of the interaction of two or more independent variables

Fundamental Questions in ExperimentationFundamental Questions in ExperimentationFundamental Questions in ExperimentationFundamental Questions in Experimentation


Fundamental Questions in Experimentation Fundamental Questions in Experimentation (cont’d)(cont’d)Fundamental Questions in Experimentation Fundamental Questions in Experimentation (cont’d)(cont’d)

• Field and Laboratory ExperimentsField and Laboratory ExperimentsLaboratory experiment

An experiment conducted in a laboratory or other artificial setting to obtain almost complete control over the research setting

Field experiment An experiment conducted in a natural setting, where complete

control of extraneous variables is not possible

Controlled store test A hybrid between a laboratory experiment and a test market; test

products are sold in a small number of selected stores to actual customers


• Internal ValidityInternal ValidityValidity determined by whether an experimental

treatment was the sole cause of changes in a dependent variable or whether the experimental manipulation did what it was supposed to do

Issues of Experimental ValidityIssues of Experimental ValidityIssues of Experimental ValidityIssues of Experimental Validity


• Internal Validity (cont’d)Internal Validity (cont’d)History

History effect Cohort effect

MaturationTesting

Testing effect Instrumental effect

SelectionMortality (or sample attrition)

Issues of Experimental Validity (cont’d)Issues of Experimental Validity (cont’d)Issues of Experimental Validity (cont’d)Issues of Experimental Validity (cont’d)


• External ValidityExternal ValidityThe ability of an experiment to generalize beyond

the experiment data to other subjects or groups in the population under study



• Trade-Offs Between Internal and External Trade-Offs Between Internal and External ValidityValidityOften it is necessary to trade off internal validity for

external validity because a laboratory experiment provides more control

Laboratory experiments with many controlled factors are high in internal validity, while field experiments have less internal validity but greater external validity



• Basic experimental designBasic experimental designAn experimental design in which a single

independent variable is manipulated to measure its effect on another single dependent variable

• Symbolism for Diagramming Experimental Symbolism for Diagramming Experimental DesignsDesignsX = exposure of a group to an experimental

treatmentO = observation or measurement of the dependent

variableR = random assignment of test units

Classification of Experimental DesignsClassification of Experimental DesignsClassification of Experimental DesignsClassification of Experimental Designs


• Quasi-Experimental DesignQuasi-Experimental DesignA research design that cannot be classified as a true

experiment because it lacks adequate control of extraneous variables

Classification of Experimental Designs (cont’d)Classification of Experimental Designs (cont’d)Classification of Experimental Designs (cont’d)Classification of Experimental Designs (cont’d)


• Three Examples of Quasi-Experimental Three Examples of Quasi-Experimental DesignsDesignsOne-shot design

An after-only design in which a single measure is recorded after the treatment is administered

One-group pre-test–post-test design A quasi-experimental design in which the subjects in the

experimental group are measured before and after the treatment is administered, but there is no control group



• Three Examples of Quasi-Experimental Three Examples of Quasi-Experimental Designs (cont’d)Designs (cont’d)Static group design

An after-only design in which subjects in the experimental group are measured after being exposed to the experimental treatment and the control group is measured without having been exposed to the experimental treatment; no premeasure is taken



• Three Better Experimental DesignsThree Better Experimental DesignsPre-test–post-test control group design

A true experimental design in which the experimental group is tested before and after exposure to the treatment and the control group is tested at the same two times without being exposed to the experimental treatment. Random assignment of subjects and treatment occurs

Post-test–Only Control Group Design An after-only design in which the experimental group is

tested after exposure to the treatment and the control group is tested at the same time without having been exposed to the treatment; no pre-measure is taken. Random assignment of subjects and treatment occurs



• Three Better Experimental Designs (cont’d)Three Better Experimental Designs (cont’d)Solomon Four-Group Design

A true experimental design that combines the pre-test–post-test with control group design and the post-test–only with control group design, thereby providing a means for controlling the interactive testing effect and other sources of extraneous variation



• Test MarketingTest MarketingA scientific testing and controlled experimental

procedure that provides an opportunity to measure sales or profit potential for a new product or to test a new marketing plan under realistic marketing conditions

The Nature of Test MarketingThe Nature of Test MarketingThe Nature of Test MarketingThe Nature of Test Marketing


• Functions of Test MarketingFunctions of Test MarketingOffers the opportunity to estimate the outcomes of

alternative courses of actionAllows management to identify and correct any

weaknesses before committing the company to a national sales launch

• Test Marketing: A Lengthy and Costly Test Marketing: A Lengthy and Costly ProcedureProcedureTest marketing is an expensive research procedureThe value of the information must be compared with

the costs of the research

The Nature of Test Marketing (cont’d)The Nature of Test Marketing (cont’d)The Nature of Test Marketing (cont’d)The Nature of Test Marketing (cont’d)


• Factors to Consider in Test Market SelectionFactors to Consider in Test Market SelectionPopulation sizeDemographic composition and lifestyle

considerationsCompetitive situationMedia coverage and efficiencyMedia isolationSelf-contained trading areaOverused test marketsLoss of secrecy

Selecting Test Markets: A Sampling ProblemSelecting Test Markets: A Sampling ProblemSelecting Test Markets: A Sampling ProblemSelecting Test Markets: A Sampling Problem


Documents

Copyright © 2008 by Nelson, a division of Thomson Canada Limited Chapter 10 Part 2 Designing Research Studies EXPERIMENTAL RESEARCH AND TEST MARKETING