11-1

© 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

McGraw-Hill/Irwin

Chapter 11Chapter 11

Experiments Experiments and and

Test MarketsTest Markets

11-2

Learning Objectives

Understand . . .

• uses for experimentation

• advantages and disadvantages of the experimental method

• seven steps of a well-planned experiment

• internal and external validity with experimental research designs

11-3

Learning Objectives

• three types of experimental designs and the variations of each

• functions and types of test marketing used in experimenting with new marketing products and services

11-4

Causal Evidence

Agreement between IVs and DVs

Time order of occurrence

Extraneous variables did not influence DVs

11-5

Evaluation of Experiments

Advantages• Ability to manipulate

IV• Use of control group• Control of extraneous

variables• Replication possible• Field experiments

possible

Disadvantages• Artificiality of labs• Non-representative

sample• Expense• Focus on present and

immediate future• Ethical limitations

11-6

Exhibit 11-1 Experimentation in the Research Process

11-7

Conducting an Experiment

Specify treatment levels

Control environment

Choose experimental design

Select and assign participants

Pilot-test, revise, and test

Collect data

Analyze data

Specify treatment levels

11-8

Exhibit 11-2 Experiment of Placement of Benefits Module

11-9

Selecting and Assigning Participants

Random assignment

Matching

11-10

Random Assignment

11-11

Exhibit 11-3 Quota Matrix Example

11-12

Measurement Options

Scaling techniques

Scaling techniques

Physiologicalmeasures

Physiologicalmeasures

OptionsOptions

Paper-and-pencil testsPaper-and-pencil tests

Observation

Self-administered instruments

11-13

Validity in Experimentation

ExternalInternal

11-14

Threats to Internal Validity

Threats

Maturation History

Testing

Instrumentation

Selection

Statisticalregression

Experimentalmortality

11-15

Additional Threats to Internal Validity

Diffusion of treatmentDiffusion of treatment

Compensatory equalizationCompensatory equalization

Compensatory rivalryCompensatory rivalry

Resentful disadvantagedResentful disadvantaged

Local historyLocal history

11-16

Threats to External Validity

Reactivity of testing on X

Interaction of selection and X

Other reactive factors

11-17

Experimental Research Designs

Pre-experiments

True experiments

Field experiments

11-18

After-Only Case Study

X O

Pre-experiment

11-19

One Group Pretest-Posttest Design

O1 X O2

Pre-experiment

11-20

Static Group Comparison

X O1

O2

Pre-experiment

11-21

Pretest-Posttest Control Group Design

R O1 X O2

R O3 O4

True experiment

11-22

Posttest-Only Control Group Design

True experiment

R X O1

R O2

11-23

Nonequivalent Control Group Design

O1 X O2

O3 O4

Field experiment

11-24

Separate Sample Pretest-Posttest Design

R O1 (X)R X O2

Field experiment

11-25

Group Time Series Design

R O1 O2 O3 X O4 O5 O6

R O7 O8 O9 O10 O11 O12

Field experiment

11-26

Test Market Selection

IsolationIsolation

Control of distributionControl of distribution

CriteriaCriteria

RepresentativeRepresentative

Over-testing

Media coverage

Multiple locationsMultiple locations

11-27

Types of Test Markets

Standard Standard

ControlledControlled

ElectronicElectronic

SimulatedSimulated

VirtualVirtual

Web-enabledWeb-enabled

11-28

Exhibit 11-5 Test Market Cities

11-29

Key Terms

• Blind• Control group• Controlled test market• Dependent variable• Double-blind• Environmental control

• Experiment• Experimental treatment• External validity• Field experiment• Hypothesis• Independent variable• Internal validity

11-30

Key Terms

• Matching• Operationalized • Quota matrix• Random assignment• Replication

• Test market– Electronic test market– Simulated test market– Standard test market– Virtual test market

• Treatment levels• Web-enabled test market

11-31

Exhibit 11-6