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Experiments and test markets
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Page 1
Experiments and Test Markets
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Classification of Research Design on the basis of Researcher’s control on variable:1) Ex-post facto study2) Experiment: The researcher manipulates
some variable and observes whether the hypothesized dependent variable is affected or not
The experiments are used to find the causal relationship between the IV and DV
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Advantage:Ability to manipulate IV (The researcher is having full control on variable)
Control of extraneous variables
Replication possible
Field experiments possible
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Disadvantages:Results can not be generalized for other populations
Experiments are conducted in laboratory environment, so the results may not be the same for natural environment
Experiment can be conducted for present and future, not for past
Ethical limitations
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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
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Experimentation in Research Process
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Experimental Group: Composed of subjects or participants who receive experimental treatment
Control Group: Composed of subjects or participants who do not receive experimental treatment or who are not exposed to independent variable(s)
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Blind Experiment: when subjects do not know if they are receiving an experimental treatment
Double Blind Experiment: When experimenters do not know if they are giving the treatment to the experimental group or to the control group
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Validity in Experimentation
ExternalInternal
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Validity in ExperimentationInternal Validity: do the conclusions we
draw about an experimental relationship truly imply cause? That is whether our assumption about IV and DV was correct or not? Or other variables cause DV to occur?
External Validity: deals with ability to generalize the study to persons or settings or times
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Threats to Internal Validity
Threats
Maturation History
Testing
Instrumentation
Selection
Statisticalregression
Experimentalmortality
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Additional Threats to Internal Validity
Diffusion/imitation of treatment
Diffusion/imitation of treatment
Compensatory equalization
Compensatory equalization
Compensatory rivalryCompensatory rivalry
Resentful demoralization of
disadvantaged
Resentful demoralization of
disadvantaged
Local historyLocal history
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Threats to External Validity
Reactivity of testing on X
Interaction of selection and X
Other reactive factors
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Experimental Research Designs
Pre-experiments
True experiments
Field experiments
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Pre-experimental DesignsAfter – Only Study
X = treatment or manipulation of IVO = Observation or measurement of DV(post test)
X O
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Pre-experimental Designs(conti..)
One Group Pretest – Post test Design
O1 = Pre testX = Manipulation or treatmentO2 = Post testEffect of treatment=O2 – O1
O1 X O2
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Pre-experimental Designs(conti..)
Static Group ComparisonComparison of experimental group and control group
O1 = post test on experimental group\O2 = post test on control groupHere participants are not randomly assigned
X O1
---------- ----------- O2
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True Experimental DesignPretest-Posttest Control Group Design
“ R” indicates that, the group members are randomly assigned to the group
Effect of experimental variable or treatment,E= (O1 – O2) – (O4 – O3)
Experimental Group R O1 X O2
Control Group R O3 O4
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True Experimental Design(conti..)
Posttest – only Control Group Design
E = O2 – O1
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Field Experiments
Nonequivalent Control Group Design
Assignment of participant is not random
Self selection is also allowed
O1 X O2
O3 O4
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Field Experiments(conti..)
Separate Sample Pretest-Posttest Design
Pretesting on one group and post testing on other group
R O1 (X) R X O2
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Field Experiments(conti..)
Group Time Series Design:It introduces repeated observations before and after the treatment
Ex: If the federal government were to suddenly begin price controls, we could still study the effects of this action later if we had regularly collected records for the period before and after the advent of price control
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Test Marketing
• A Test Market is a controlled experiment conducted in a carefully chosen marketplace (ex: web site, store, town or other geographic location) to measure marketplace response and predict sales or profitability of a product
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Test Market Selection
Control of distributionControl of
distribution
CriteriaCriteria
RepresentativeRepresentative
Multiple locationsMultiple locations
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Types of Test Markets
Standard Standard
ControlledControlled
ElectronicElectronic
SimulatedSimulated
VirtualVirtual
Web-enabledWeb-enabled
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THANK YOU