Lecture Marketing research - Chapter 7: Primary data collection: Experimentation

In this chapter, students will be able to: Understand the nature of experiments, gain insight into requirements for proving causation, learn about the experimental setting, examine experimental validity, learn the limitations of experimentation in marketing research, compare types of experimental designs, gain insight into test marketing.
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Lecture Marketing research - Chapter 7: Primary data collection: Experimentation Learning ObjectivesCHAPTER Seven Primary Data Collection: Experimentation Copyright © 2004 John Wiley & Sons,Inc Learning Objectives Learning Objectives1. 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 Objectives6. To compare types of experimental designs.7. To gain insight into test marketing. Learning ObjectivesWhat 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 Dependent variable variable marketing mix total sales advertising market share Learning ObjectivesDemonstrating Causation To understand the nature of experiments. Causal Research: The only types of research that has the potential to demonstrate that a change in one variable causes some predictable change in another variable To Demonstrate Causation: - Concomitant Variation (Correlation - Appropriate Time Order Of Occurrence - Elimination Of Other Possible Causal Factors Learning ObjectivesDemonstrating Causation To understand the nature of experiments. Scientific Definition—Causation and Causality 1. X is only one of a number of determining conditions that caused the observed change in Y. 2. X can be a cause of Y if the presence of X makes the occurrence of Y more probable or likely 3. One can never definitively prove that X is a cause of Y but only infer that a relationship exists 4. Causal relationships are always inferred and never demonstrated conclusively beyond a shadow of a doubt. Learning ObjectivesDemonstrating 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 ObjectivesThe Experimental Setting: To learn about the experimental setting. Laboratory or Field 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 ObjectivesExperimental 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 ObjectivesExperimental 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 ObjectivesControlling Extraneous To learn about the experimentalVariables settingConfounding Variables—extraneous causal factors because they confound the treatment conditionFour Basic Approaches to Control Extraneous Factors 1. Randomization 2. Physical Control 3. Design Control 4. Statistical Control Learning Objectives Experimental Design, To learn about experimental settingTreatment, and EffectsExperimental Design Ex Post Facto Research—nonexperimental designs Factors of the 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 Experimental Design, To learn about exper ...