Chapter 9

Question 1

What is a Experiment

Answer 1

research approach in which one variable is manipulated and the effect on another variable is observed.

Question 2

what is causal research

Answer 2

research designed to determine whether a change in one variable likely caused an observed change in another

Question 3

what 3 things prove Causality

Answer 3

i. Correlation or concomitant variation. A and B must vary together; positive or inverse relationship
ii. Appropriate time order of occurrence. A happened before B
iii. Elimination of other possible causal factors. The change in B was not caused by some factor other than A

Question 4

Laboratory (controlled environment; True experiment)

Answer 4

Conducted in a controlled setting, can effectively deal with the third element of proving causation.

Question 5

Field (Quasi-experiment)

Answer 5

Tests conducted outside the lab in an actual environment, such as marketplace. Cannot control other factors that might influence the dependent variable, such as the actions of competitors, the weather, the economy, societal trends, and the political climate.

Question 6

Internal validity

Answer 6

extent to which competing explanations for the experimental results observed can be ruled out. (in the lab)

Question 7

External Validity

Answer 7

extent to which causal relationships measured in an experiment can be generalized to outside persons, settings, and times. (in the field)

Question 8

6 extraneous variables

Answer 8

1. History: intervention, between the beginning and end of an experiment, of outside variables or events that might change the dependent variable
2. Maturation: changes in subjects occurring during the experiment that re not related to the experiment but that affect subjects response to the treatment factor
3. Instrument variation: changes in measurement instruments (ex interviewers or observers) that might affect measurements
4. Selection bias: systematic differences between the test group and the control group due to a biased selection process
5. Mortality: loss of test units or subjects during the course of an experiment, which may result in a nonrepresentation
6. Testing effects: effect that is a by-product of the research process itself

Question 9

Main testing effects

Answer 9

are the possible effects of earlier observations on later observations

Question 10

Interactive testing effect

Answer 10

is the effect of a prior measurement on a subject’s response to a later measurement

Question 11

Regression to the mean

Answer 11

tendency of subjects with extreme behavior to move toward the average for that behavior during the course of an experiment.

Question 12

Controlling extraneous variables

Answer 12

1. Randomization: random assignment of subjects to treatment conditions to ensure equal representation of subject characteristics
2. Physical control: holding constant the value or level of extraneous variables throughout the course of an experiment
3. Design control: use of the experimental design to control extraneous causal factors
4. Statistical control: adjusting for the effects of confounded variables by statistically adjusting the value of the dependent variable for each treatment condition

Question 13

experimental design

Answer 13

test in which the researcher has control over the manipulation one or more independent variables

Question 14

4 factors of experimental design

Answer 14

1. Treatment (independent variable): independent variable that is manipulated in an experiment
2. Subjects who participate in the experiment
3. Dependent variable that is measured
4. Plan for dealing with extraneous factors

Question 15

3 limitations of experiments

Answer 15

1. Cost
2. Security: conducting field experiments will allow competitors to gain info about your marketing plan and have sometimes stolen and implemented the plan before the other company
3. Implementation issues: difficulty gaining cooperation within the organization, contamination problems(when buyers from outside the test area come in and buy the product) , differences between test markets and the total population and lack of an appropriate group of people or geographic are for a control group.

Question 16

one-shot case study design

Answer 16

pre-experimental design with no pretest observations, no control group, and an after measurement only. Lacks internal and external validity. Useful for suggesting casual hypotheses

Question 17

one-group pretest-posttest design

Answer 17

design most used for testing changes in established products or marketing strats. Pre and post measurements, but no control group. History and maturation is a threat to this design

Question 18

After-only with control group

Answer 18

true experimental design that involves random assignment of subjects or test units to experimental and control groups, buy no premeasurement of the dependent variable.

Question 19

Test markets, though quasi-experiments, are an example:

Answer 19

studies in which the researcher lacks complete control over the scheduling of treatments or must assign respondents to treatments in a nonrandom manner

Question 20

4 types of test markets

Answer 20

i. Traditional: testing the product and other elements of the marketing mix through regular channels of distribution. 6 or more months
ii. Scanner or Electronic: markets where research firms have panels of consumers who carry scannable cards for use in buying particular products, especially those sold through grocery stores. Offers speed, lower cost, and some security regarding the marketing strategy or changes in strat.
iii. Controlled: managed by research supplier who ensure that the product is distributed through the agreed upon types and numbers of outlets
iv. Simulated: are just what the name implies-simulations of the types of test markets notes above. Can be conducted more quickly than the other approaches, at a lower costs, and can product results that are highly predictive of what will actually happen.

Question 21

Direct costs

Answer 21

i. Production of commericals
ii. Payments to an advertising agency for services
iii. Media time, charged at a high rate because of low volume
iv. Syndicated research information
v. Customized research information and associated data analysis
vi. Point-of-purchase materials
vii. Coupons and sampling
viii. Higher trader allowances to obtain distribution

Question 22

indirect costs

Answer 22

i. Cost of management time spent on the test market
ii. Diversion of sales activity from existing products
iii. Possible negative impact of a test market failure on other products with the same family brand
iv. Possible negative trad reactions to products if the firm develops a reputation for not doing well
v. Cost of letting competitors know what the firm is doing, thereby, allowing them to develop a better strategy or beat the firm to the national market

Question 23

Four factors in determining whether or not to conduct a test market

Answer 23

1. Weigh the cost and risk of failure against the probability of success and associated profits
2. Consider the likelihood and speed with which competitors can copy your product and introduce it on a national basis.
3. Consider the investment required to produce the product for the test market versus the investment required to produce the product in the quantities necessary for a national rollout
4. Consider how much damage an unsuccessful new product launch would influence on the firm’s reputation