Experiments and Test Markets

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Classification of Research Design on the basis of Researchers control on variable:

1) Ex-post facto study 2) 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
Specify treatment levels Control environment

Choose experimental design Select and assign participants

Pilot-test, revise, and test Collect data Analyze data
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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

Internal

External

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Validity in Experimentation
Internal 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

Maturation History

Experimental mortality
Statistical regression

Threats

Testing

Instrumentation

Selection
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Additional Threats to Internal Validity

Diffusion/imitation of treatment Compensatory equalization
Compensatory rivalry

Resentful demoralization of disadvantaged

Local 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 Designs
After Only Study

X = treatment or manipulation of IV O = Observation or measurement of DV(post test)

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Pre-experimental Designs(conti..)
One Group Pretest Post test Design

O1

O2

O1 = Pre test X = Manipulation or treatment O2 = Post test Effect of treatment=O2 O1

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Pre-experimental Designs(conti..)
Static Group Comparison Comparison of experimental group and control group
X ---------O1 ----------O2

O1 = post test on experimental group\ O2 = post test on control group Here participants are not randomly assigned

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True Experimental Design

Pretest-Posttest Control Group Design

Experimental Group R Control Group R

O1 O3

O2 O4

R indicates that, the group members are randomly assigned to the group
Effect of experimental variable or treatment, E= (O1 O2) (O4 O3)
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True Experimental Design

(conti..)

Posttest only Control Group Design

E = O 2 O1

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Field Experiments
Nonequivalent Control Group Design

O1 O3

O2 O4

Assignment of participant is not random Self selection is also allowed

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Field Experiments
(conti..)
Separate Sample Pretest-Posttest Design
R R O1 (X) X

O2

Pretesting on one group and post testing on other group

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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

Representative
Control of distribution

Criteria
Multiple locations

Media coverage
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Types of Test Markets

Standard Controlled Electronic Simulated Virtual Web-enabled
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THANK YOU

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