Lecture 5 Flashcards
What type of data is an experiment?
Quantitative
What’s a Marketing Experiment?
A type of market research that tests marketing strategies and messages on a small scale to determine what works best
What are experiments used to infer?
Causality
What two variables are used in causality
X and Y
What does X influence?
Y
What variable is X?
The independent variable
What variable is Y?
The dependent variable
What are the three conditions for causality?
1- Concomitant variation
2- Time order of occurrence of variables
3- Absence of other possible casual factors
What’s Concomitant variation?
When the cause changes (X), we also observe a change in the effect (Y)
What is time order of occurrence of variables?
The cause (X) must occur before or at the same time as the effect (Y)
What is absence of other possible casual factors?
The cause (X) should be the only possible explanation for the effect (Y)
What’s an After-Only experiment?
Measuring the outcome only after the intervention or treatment has been applied (EG measuring sales after a new packaging has been introduced)
What’s a limitation of the After-Only experiment?
Lack of baseline data
What’s a Before-After experiment?
Measuring the outcome before and after the intervention or treatment. (observe the change in the outcome)
What’s a limitation of a Before-After experiment?
External factors may influence results the time “before” and “after” measurements.
What are two types of experiments?
After-Only and Before-After
What’s A/B Testing?
Comparing two versions of a marketing strategy to determine which one performs better.
What’s the Click-through rate (CTR)?
Percentage of users who click a link.
What’s the Conversion Rate?
Percentage of users who complete a desired action (e.g., purchase, sign-up).
What’s the Engagement Rate?
Interaction with content (e.g., likes, shares).
What’s the Bounce Rate?
Percentage of users who leave a page without interacting.
What’s a Field Experiment?
Conducting experiments in real-world environments to observe customer behaviour under natural conditions.
What’s a Field Experiment used for?
Testing strategies in realistic settings to ensure practical applicability.
What are typical settings for a field experiment?
Stores or websites
