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Chapter 11. Experiments and Test Markets. 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.

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Presentation Transcript
Chapter 11

Chapter 11

Experiments and

Test Markets


Learning objectives
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


Learning objectives1
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


Causal evidence
Causal Evidence

Agreement between

IVs and DVs

Time order of occurrence

Extraneous variables

did not influence DVs


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

Evaluation of Experiments



Conducting an experiment
Conducting an Experiment

Specify treatment levels

Specify treatment levels

Control environment

Choose experimental design

Select and assign participants

Pilot-test, revise, and test

Collect data

Analyze data



Selecting and assigning participants
Selecting and Assigning Participants

Random

assignment

Matching



Exhibit 11 3 quota matrix example
Exhibit 11-3 Quota Matrix Example


Measurement options

Observation

Physiological

measures

Paper-and-pencil tests

Scaling techniques

Self-administered instruments

Measurement Options

Options


Validity in experimentation
Validity in Experimentation

Internal

External


Threats to internal validity

Maturation

History

Testing

Experimental

mortality

Statistical

regression

Instrumentation

Selection

Threats to Internal Validity

Threats


Additional threats to internal validity
Additional Threats to Internal Validity

Diffusion of treatment

Compensatory equalization

Compensatory rivalry

Resentful disadvantaged

Local history


Threats to external validity
Threats to External Validity

Reactivity of

testing on X

Interaction of

selection and X

Other

reactive factors


Experimental research designs
Experimental Research Designs

Pre-experiments

True experiments

Field experiments


After only case study
After-Only Case Study

X O

Pre-experiment


One group pretest posttest design
One Group Pretest-Posttest Design

O1 X O2

Pre-experiment


Static group comparison
Static Group Comparison

X O1

O2

Pre-experiment


Pretest posttest control group design
Pretest-Posttest Control Group Design

R O1 X O2

R O3 O4

True experiment


Posttest only control group design
Posttest-Only Control Group Design

R X O1

R O2

True experiment


Nonequivalent control group design
Nonequivalent Control Group Design

O1 X O2

O3O4

Field experiment


Separate sample pretest posttest design
Separate Sample Pretest-Posttest Design

R O1 (X)

R XO2

Field experiment


Group time series design
Group Time Series Design

R O1 O2 O3 X O4 O5 O6

R O7 O8 O9 O10 O11 O12

Field experiment


Test market selection

Over-testing

Control of distribution

Representative

Multiple locations

Isolation

Media coverage

Test Market Selection

Criteria


Types of test markets
Types of Test Markets

Standard

Controlled

Electronic

Simulated

Virtual

Web-enabled


Exhibit 11 5 test market cities
Exhibit 11-5 Test Market Cities


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

Key Terms


Key terms1

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

Key Terms



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