1. Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. 10-2 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. Three types of experimental designs and the variations of each.

3. 10-3 PulsePoint: Research Revelation 826 The average dollar amount spent each year per employee on employee on training.

4. 10-4 Experiments Challenge Perceptions “We need to keep an open mind and approach life as a series of experiments. We need to observe the experiments happening around us and create new ones. Instead of accepting the world as we think it is, we need to keep testing it to find out what it is and what works.” Jerry Wind, Wharton School of Business, University of Pennsylvania

5. 10-5 Causal Evidence Agreement between IVs and DVs Time order of occurrence Extraneous variables did not influence DVs

6. 10-6 Causal Evidence

7. 10-7 Evaluation of Experiments 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

8. 10-8 Experimentation in the Research Process

9. 10-9 Conducting an Experiment Specify treatment levels Control environment Choose experimental design Select and assign participants Pilot-test, revise, and test Collect data Analyze data Specify treatment variables

10. 10-10 Experiment: Placement of Benefits Module

11. 10-11 Selecting and Assigning Participants Random assignment Matching

12. 10-12 Random Assignment

13. 10-13 Quota Matrix Example

14. 10-14 Measurement Options Scaling techniques Physiological measures Physiological measures Options Paper-and- pencil tests Observation Self- administered instruments

15. 10-15 Validity in Experimentation ExternalInternal

16. 10-16 Threats to Internal Validity Threats MaturationHistoryTesting Instrumentation Selection Statistical regression Experimental mortality

17. 10-17 Additional Threats to Internal Validity Diffusion of treatment Compensatory equalization Compensatory rivalry Resentful disadvantaged Local history

18. 10-18 Threats to External Validity Reactivity of testing on X Interaction of selection and X Other reactive factors

19. 10-19 Experimental Research Designs Pre-experiments True experiments Field experiments

20. 10-20 After-Only Case Study X O Pre-experiment

21. 10-21 One Group Pretest-Posttest Design O 1 X O 2 Pre-experiment

22. 10-22 Static Group Comparison X O 1 O 2 Pre-experiment

23. 10-23 Pretest-Posttest Control Group Design RO1XO2RO3O4RO1XO2RO3O4 True experiment

24. 10-24 Posttest-Only Control Group Design True experiment RXO1RO2RXO1RO2

25. 10-25 Nonequivalent Control Group Design O1XO2O3O4O1XO2O3O4 Field experiment

26. 10-26 Separate Sample Pretest-Posttest Design RO 1 (X) R XO 2 Field experiment

27. 10-27 Group Time Series Design R O 1 O 2 O 3 X O 4 O 5 O 6 R O 7 O 8 O 9 O 10 O 11 O 12 Field experiment

28. 10-28 Job Enrichment Quasi-Experiment

29. 10-29 Experiment: Finding the Store Design

30. 10-30 Experiment: The Right Size of Flavor

31. 10-31 Key Terms Blind Control group Controlled test market Dependent variable Double-blind Environmental control Experiment Experimental treatment External validity Field experiment Hypothesis Independent variable Internal validity

32. 10-32 Key Terms 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

33. Appendix 10b Test Markets

34. 10-34 Test Market Selection Isolation Control of distribution Control of distribution Criteria Representative Over-testing Media coverage Multiple locations

35. 10-35 Types of Test Markets Standard Controlled Electronic Simulated Virtual Web-enabled

36. 10-36 Test Market Cities