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Experimentation
An Introduction to Experimental Design Statistical studies can be classified as being either experimental or observational. In an experimental study, one or more factors( Independent Variables) are controlled so that data can be obtained about how the factors influence the variables of interest(Dependent Variable). In an observational study, no attempt is made to control the factors. Cause-and-effect relationships are easier to establish in experimental studies than in
Experiment: A research method in which conditions are controlled so that one or more independent variables can be manipulated and their effect on dependent variable is measured . To study impact of a sports coach on cricket teams performance an experiment can be conducted
Experiment
. Experiment:
A research method in which conditions are controlled so that one or more independent variables can be manipulated and their effect on dependent variable is measured . To study impact of a sports coach on cricket teams performance an experiment can be conducted
Experiment
.-A research investigation in which conditions
are controlled -One independent variable is manipulated (sometimes more than one) -Its effect on a dependent variable is measured -To test a hypothesis
Some Definitions
Absolute Experiment: If we want to know impact of a sports coach on cricket teams performance it is an absolute experiment Comparative experiment :If we want to know impact of one sports coach on cricket teams performance compared to impact of another sports coach on cricket teams performance it is a comparative experiment Experimental units: Subjects or entities subjected to various treatments are called experimental units
Some Definitions
- Experimental group: The group of subjects exposed to an experimental treatment. Group of students provided with a sport coach - Control Group :A group of subjects who are exposed to the control conditions in an experiment, that is they are subjects not exposed to the experimental treatment Group of students not provided with a sports coach
Treatment
- Treatment: It refers to conditions to which experimental groups are subjected and control groups are not subjected Provision of sports coach
Extraneous Variable
Extraneous variable: Independent variables that are not directly linked with the study but may influence dependent variable: If the study wants to test a hypothesis that a relationship exists between academic achievement and self concept of children then academic achievement is dependent and self concept is independent variable. Intelligence may also affect academic achievement but it is not related to studys purpose and hence it is an extraneous variable.
Experimental Design
Experimental Design is a set of procedures specifying --Manipulation of the Independent Variable --Selection of Dependent Variable --Experimental groups & Control groups --Control Over Extraneous Variables
Manipulation of independent Variable The experimenter has some degree of control over the independent variable The variable is independent because its value can be manipulated by the experimenter. To test relationship between package design & sales Expose customers to three package designs A,B &C. These packs are placed on shelves of select outlets Consumers response is measured Package design is independent variable ,which is manipulated & there are 3 treatment levels A,B & C
Selection of dependent variable is another important decision Sales volume of the product is considered as dependent variable in package design example Selecting dependent variable may not be easy in all cases To evaluate effectiveness of various ad programmes dependent variable can be brand image, brand awareness & product sales Purpose of the research helps in selection of appropriate dependent variable
Controlling Extraneous Variables Extraneous (Confounding/Mediating) variables need to be controlled otherwise it is difficult to find out whether the change in dependent variable is due to change in independent variable or change in extraneous variable
Ways to control extraneous variable Randomization Hold Conditions Constant Matching Subjects Design Control Statistical Control
Randomisation
Process of assigning test units randomly to experimental treatments and assigning experimental treatments randomly to test units It helps to spread effects of extraneous variable equally over the test units Most popular method Not effective for small samples Department stores assigned randomly to Experimental & Control groups If 3 versions of test commercials are to be assigned to 3 groups then one commercial is selected at random & assigned to a randomly selected group & process is repeated
Hold Conditions Constant: The level of extraneous variables is kept constant throughout the experiment -- If price is the extraneous variable prices are not changed during experimental period
Physical Control of Extraneous Variables Matching Subjects: Judgmental sampling is used to assign test units to both experimental group & control group so that both groups are matched in terms of characteristics of test units ---Department stores are matched on the basis of annual sales, size and location. One store from each matched pair would be assigned to each experimental group
Statistical Control
Extraneous variables affecting dependent variable are identified & measured using appropriate statistical tools like ANOVA. Then effects of extraneous variable on dependent variable are removed by statistical adjustments If 5 departmental stores are used to study sales of products before & after in- house sales promotion then impact of the characteristics of the stores can be removed through use of ANOVA-randomised block design using department stores as blocks
Design Control
Selecting appropriate experimental designs to conduct experiments helps in controlling specific extraneous variables . Experimental Designs are of 4 types -Pre Experimental -True Experimental -Quasi experimental -Statistical
Experimental Validity
Validity: Extent to which a research process is accurate & reflects actual market conditions Internal Validity: It measure the extent of change in dependent variable in an experiment caused by manipulation of independent variable External Validity :It measures to what extent inferences derived from experiment can be generalised to real environment
Internal Validity
Control of extraneous variable is a necessary condition for establishing internal validity Internal validity is the basic minimum requirement of an experiment Six major types of extraneous variables are threats to internal validity
Type of Extraneous Variable History - Specific events in the environment between the Before and After measurement that are historic in nature (rare occurrence)
Example
Maturation - Subjects change during the course of the experiment due to passage of time. Subjects become tired Testing - The Before measure alerts or sensitizes subject to nature of experiment or second measure.
While test marketing new farm equipment area gets affected by floods Impact of promotional campaign for a car gets affected by steep price rise in petrol by Iraq war Drug trials carried over longer period of time results in some effect on account of physiological changes Questionnaire about the traditional role of women triggers enhanced awareness
New questions about women are interpreted differently from earlier questions. Heavy users in experimental group & moderate & low users in control group
Selection test units selected for experimental group differ from those assigned to control group
External Validity Experiments conducted in natural settings offer more external validity as compared to experiments in controlled conditions Since generalisation is easier with field conditions
Experimental Environment
Laboratory Environment: Experiments conducted in controlled conditions Showing ads or products to select consumers in controlled conditions and blind taste tests Advantages Effects of extraneous variables can be minimised -History effects eliminated -Provides more internal validity -time & cost effective -reduces the risk of information about products & ideas being passed on to competitors Disadvantages -Expts conducted in artificial conditions &results may not hold well in actual conditions -less external validity -results influenced by testing effects ,Test units aware of being tested & may not respond naturally
Field Environment
Experiments conducted in natural settings --Launching products in select regions --Observing consumer behaviour regarding a POP display in supermarkets --analysing customer response to trial offers Advantages -high degree of external validity Disadvantages -Low degree of internal validity -Require greater time& efforts and are expensive
Laboratory Experiment Artificial-Low Realism Few Extraneous Variables High control Low Cost Short Duration Subjects Aware of Participation
Field Experiment Natural-High Realism Many Extraneous Variables Low control High Cost Long Duration Subjects Unaware of Participation
Notations
X: Treatment or manipulation of independent variable O: Observation or measurement of dependent variable R: Random assignment of test units to experimental groups EG : Experimental group exposed to experimental treatment CG :Control group not exposed to experimental treatment Notations in the diagram are read from left to right
Conventions
Movement from left to right indicates movement through time Horizontal alignment of symbols implies that all those symbols refer to specific treatment group Vertical alignment of symbol implies that those symbols refer to activities or events that occur simultaneously
Examples
X O1 O2 means that a given group of test units was exposed to treatment variable X and the response was measured at two different points in time ,O1 and O2 R X1 O1 R X2 O2 means that two groups of test units were randomly assigned to two different treatment groups at the same time and the dependent variable was measured in two groups simultaneously
Pre-Experimental Designs
---They lack proper control mechanism to deal with effects of extraneous variables One Shot Design (After Only) One Group Pretest-Posttest Static Group Design
Exposing an experimental group to experimental treatment (X) and taking measurements of dependent variable before(O1) and after(O2) the treatment EG: O1 X O2 Difference between O1 and O2 measures the impact of treatment on dependent variable To measure effectiveness of a test commercial Respondents are recruited on the basis of convenience Administered a personal interview to measure attitude towards the product Then they watch a TV programme containing Commercial After watching TV programme they are again administered a personal interview to measure attitude towards product Effectiveness of test commercial is measured as O2-O1 Influenced by maturation,testing ,mortality, selection bias affecting IV
Pretest-Posttest Control Group Design Two groups of test units EG &CG are considered Test units are assigned to these 2 groups randomly Pre test measurements of dependent variable are taken for both groups EG is exposed to treatment Post test measurements of dependent variable are taken for both groups EG: R O1 X O2 CG: R O3 O4 Treatment Effect (TE) is (O2-O1)-(O4-O3)
Posttest test only Control Group Design Both EG & CG are formed by random assignment of test units EG is exposed to experimental treatment CG is not Post test measurement of dependent variable is taken for both the groups EG: R X O1 CG: R O2 Treatment Effect (TE) equals O1-O2
Posttest Only Control Group Design Involves only 2 groups & one measurement Significant advantage in terms of time ,cost & sample size Selection bias & mortality which are the major drawbacks can be controlled through carefully designed experimental procedures Because of its simplicity it is most popular in marketing design
Similar to time series except that another group of test units is added to serve as control group EG:O1,O2,O3 X O4,O5,O6 CG:O7,O8,O9 X O10,O11,O12 Test commercial would be shown only in a few of test cities Panel members in these cities would form EG Panel members in the cities where commercial was not shown would constitute control group
Instrumentation
not relevant
Maturation
weak
Selection
weak
Testing
not relevant
Mortality
weak
Instrumentation
weak
Maturation
weak
Selection
controlled
Testing
weak
Mortality
controlled
Instrumentation
controlled
Maturation
possible source of concern
Selection
weak
Testing
controlled
Mortality
weak
Instrumentation
controlled
Maturation
controlled
Selection
controlled
Testing
controlled
Mortality
controlled
Instrumentation
controlled
Maturation
controlled
Selection
controlled
Testing
controlled
Mortality
controlled
Instrumentation
controlled
Maturation
controlled
Selection
controlled
Testing
controlled
Mortality
controlled
Statistical Designs
Aids in measuring effect of more than one independent variable Helps in isolating effects of most extraneous variables Four prominent designs in this category -Completely Randomised -Randomised Block -Latin Square -Factorial
Completely Randomized Design An experimental design that uses a random process to assign subjects (test units) and treatments to investigate the effects of only one independent variable (factor). There are n test units & k treatments (levels of factor) The n test units are assigned to k treatments randomly. Post test measurements are evaluated
Completely Randomized Design EG1: R X1 O1 EG2: R X2 O2 EG3: R X3 O3 EG1,EG2,EG3 are 3 experimental groups exposed to three experimental treatments X1,X2,X3 3 test cities are randomly exposed to 3 test commercials Then measurements are taken on sales in these 3 cities Differences in sales in 3 cities are analyzed to see
Example: Home Products, Inc. Home Products, Inc. is considering marketing a long-lasting car wax. Three different waxes (Type 1, Type 2,and Type 3) have been developed. In order to test the durability of these waxes, 5 new cars were waxed with Type 1, 5 with Type 2, and 5 with Type 3. Each car was then repeatedly run through an automatic carwash until the wax coating showed signs of deterioration. The number of times each car went through the carwash is shown on the next slide. Home Products, Inc. must decide which wax to market. Are the three waxes equally effective?
To evaluate efficacy of a weight loss drug A sample of 40 consumers is selected Assigned randomly to two treatment levels 25 to treatment 1 & 15 to treatment 2 Consumers in group 1 are asked to take drug for one month Consumers in group 2 are not given any drug After experiment measurements are taken for both groups & differences if any are analysed to find out effectiveness of the drug Applicable when test units are homogeneous Extraneous variables can be controlled A single variable is evaluated
Supermarkets Malls
Factorial Design
An experiment that investigates the interaction of two or more independent variables on a single dependent variable.
Factorial Design
A 3x2 design has two factors first with 3 levels & second with 2 levels A 3x3 design has 2 factors each with 3 levels A 2x2x2 design has 3 factors each with 2 levels A 3x2x4 design has 3 factors with 3,2 7 4 levels respectively
Factorial Design
Researcher is investigating believability of Ads on 0-100 scale Two magazine Ads A & B are to be compared Gender of the reader is another factor This is a 2x2 factorial experiment Permits to test 3 hypothesis Which Ad is more believable (Main) Which gender tends to believe magazine Ads more(Main) Which gender finds which ad more believable(Interaction)
2 x 2 Factorial Design
Ad A Men Women
70 60
Ad B 65
Main Effects > of Gender
65
Main Effects of Ad
>
100 90 80 70
Believability
60 50 40 30 20 10 Ad A
Men
Ad B
Low Income Middle Income Ad-B Ad-C Ad-A Ad-A Ad-B Ad-C
Latin Square
Interaction effects are assumed to be minimal or absent Number of treatment levels for both confounding factors must be equal Suppose a retail grocery chain wishes to control for shelf space & city where product is sold It markets in only 3 cities & wishes to experiment with 4 levels of shelf space Having unequal number of levels for each factor will eliminate latin square as a possibility
TEST MARKETING
Not just trying something out But scientific testing
Controlled experimentation
Test Marketing
An experimental procedure that provides an opportunity to test a new product or a new marketing plan under realistic market conditions to measure sales or profit potential.