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Experimentation and Test Markets: Advantages, Designs, and Validity

This chapter introduces the concept of experimentation and test markets in research, discussing their uses, advantages, disadvantages, and steps involved. It also covers different types of experimental designs and their variations, as well as functions and types of test marketing for new marketing products and services.

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Experimentation and Test Markets: Advantages, Designs, and Validity

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  1. Chapter 11 Experiments and Test Markets

  2. Learning Objectives Understand . . . • uses for experimentation • advantages and disadvantages of the experimental method • seven steps of a well-planned experiment • internal and external validity with experimental research designs

  3. Learning Objectives • three types of experimental designs and the variations of each • functions and types of test marketing used in experimenting with new marketing products and services

  4. Causal Evidence Agreement between IVs and DVs Time order of occurrence Extraneous variables did not influence DVs

  5. Advantages Ability to manipulate IV Use of control group Control of extraneous variables Replication possible Field experiments possible Disadvantages Artificiality of labs Non-representative sample Expense Focus on present and immediate future Ethical limitations Evaluation of Experiments

  6. Exhibit 11-1 Experimentation in the Research Process

  7. 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

  8. Exhibit 11-2 Experiment of Placement of Benefits Module

  9. Selecting and Assigning Participants Random assignment Matching

  10. Random Assignment

  11. Exhibit 11-3 Quota Matrix Example

  12. Observation Physiological measures Paper-and-pencil tests Scaling techniques Self-administered instruments Measurement Options Options

  13. Validity in Experimentation Internal External

  14. Maturation History Testing Experimental mortality Statistical regression Instrumentation Selection Threats to Internal Validity Threats

  15. Additional Threats to Internal Validity Diffusion of treatment Compensatory equalization Compensatory rivalry Resentful disadvantaged Local history

  16. Threats to External Validity Reactivity of testing on X Interaction of selection and X Other reactive factors

  17. Experimental Research Designs Pre-experiments True experiments Field experiments

  18. After-Only Case Study X O Pre-experiment

  19. One Group Pretest-Posttest Design O1 X O2 Pre-experiment

  20. Static Group Comparison X O1 O2 Pre-experiment

  21. Pretest-Posttest Control Group Design R O1 X O2 R O3 O4 True experiment

  22. Posttest-Only Control Group Design R X O1 R O2 True experiment

  23. Nonequivalent Control Group Design O1 X O2 O3O4 Field experiment

  24. Separate Sample Pretest-Posttest Design R O1 (X) R XO2 Field experiment

  25. Group Time Series Design R O1 O2 O3 X O4 O5 O6 R O7 O8 O9 O10 O11 O12 Field experiment

  26. Over-testing Control of distribution Representative Multiple locations Isolation Media coverage Test Market Selection Criteria

  27. Types of Test Markets Standard Controlled Electronic Simulated Virtual Web-enabled

  28. Exhibit 11-5 Test Market Cities

  29. Blind Control group Controlled test market Dependent variable Double-blind Environmental control Experiment Experimental treatment External validity Field experiment Hypothesis Independent variable Internal validity Key Terms

  30. Matching Operationalized Quota matrix Random assignment Replication Test market Electronic test market Simulated test market Standard test market Virtual test market Treatment levels Web-enabled test market Key Terms

  31. Exhibit 11-6

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