Lecture 5

Question 1

What type of data is an experiment?

Answer 1

Quantitative

Question 2

What’s a Marketing Experiment?

Answer 2

A type of market research that tests marketing strategies and messages on a small scale to determine what works best

Question 3

What are experiments used to infer?

Answer 3

Causality

Question 4

What two variables are used in causality

Answer 4

X and Y

Question 5

What does X influence?

Answer 5

Y

Question 6

What variable is X?

Answer 6

The independent variable

Question 7

What variable is Y?

Answer 7

The dependent variable

Question 8

What are the three conditions for causality?

Answer 8

1- Concomitant variation
2- Time order of occurrence of variables
3- Absence of other possible casual factors

Question 9

What’s Concomitant variation?

Answer 9

When the cause changes (X), we also observe a change in the effect (Y)

Question 10

What is time order of occurrence of variables?

Answer 10

The cause (X) must occur before or at the same time as the effect (Y)

Question 11

What is absence of other possible casual factors?

Answer 11

The cause (X) should be the only possible explanation for the effect (Y)

Question 12

What’s an After-Only experiment?

Answer 12

Measuring the outcome only after the intervention or treatment has been applied (EG measuring sales after a new packaging has been introduced)

Question 13

What’s a limitation of the After-Only experiment?

Answer 13

Lack of baseline data

Question 14

What’s a Before-After experiment?

Answer 14

Measuring the outcome before and after the intervention or treatment. (observe the change in the outcome)

Question 15

What’s a limitation of a Before-After experiment?

Answer 15

External factors may influence results the time “before” and “after” measurements.

Question 16

What are two types of experiments?

Answer 16

After-Only and Before-After

Question 17

What’s A/B Testing?

Answer 17

Comparing two versions of a marketing strategy to determine which one performs better.

Question 18

What’s the Click-through rate (CTR)?

Answer 18

Percentage of users who click a link.

Question 19

What’s the Conversion Rate?

Answer 19

Percentage of users who complete a desired action (e.g., purchase, sign-up).

Question 20

What’s the Engagement Rate?

Answer 20

Interaction with content (e.g., likes, shares).

Question 21

What’s the Bounce Rate?

Answer 21

Percentage of users who leave a page without interacting.

Question 22

What’s a Field Experiment?

Answer 22

Conducting experiments in real-world environments to observe customer behaviour under natural conditions.

Question 23

What’s a Field Experiment used for?

Answer 23

Testing strategies in realistic settings to ensure practical applicability.

Question 24

What are typical settings for a field experiment?

Answer 24

Stores or websites

Question 25

What insights can field experiments give?

Answer 25

Real-world

Question 26

What’s it called when you measure more than one cause?

Answer 26

Factorial Design (aka 2x2)

Question 27

What’s a Factorial Design?

Answer 27

A structured way to test multiple causes (independent variables) simultaneously.

Question 28

What tests can be used for Factorial Design?

Answer 28

ANONVA tests

Question 29

What are the three types of variable tests for factorial designs?

Answer 29

1- Independent Variable 1
2- Independent Variable 2
3- Independent Variable 1 & 2