1. 11-1 Chapter 11 Experiments and Test Markets

2. 11-2 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. 11-3 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. 11-4 Causal Evidence Agreement between IVs and DVs Time order of occurrence Extraneous variables did not influence DVs

5. 11-5 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

6. 11-6 Exhibit 11-1 Experimentation in the Research Process

7. 11-7 Conducting an Experiment Specify treatment levels Control environment Choose experimental design Select and assign participants Pilot-test, revise, and test Collect data Analyze data Select relevant variables

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

9. 11-9 Selecting and Assigning Participants Random assignment Matching

10. 11-10 Random Assignment

11. 11-11 Exhibit 11-3 Quota Matrix Example

12. 11-12 Measurement Options Scaling techniques Physiological measures Physiological measures Options Paper-and- pencil tests Observation Self- administered instruments

13. 11-13 Validity in Experimentation ExternalInternal

14. 11-14 Threats to Internal Validity Threats MaturationHistoryTesting Instrumentation Selection Statistical regression Experimental mortality

15. 11-15 Additional Threats to Internal Validity Diffusion of treatment Compensatory equalization Compensatory rivalry Resentful disadvantaged Local history

16. 11-16 Threats to External Validity Reactivity of testing on X Interaction of selection and X Other reactive factors

17. 11-17 Experimental Research Designs Pre-experiments True experiments Field experiments

18. 11-18 After-Only Case Study X O Pre-experiment

19. 11-19 One Group Pretest- Posttest Design O 1 X O 2 Pre-experiment

20. 11-20 Static Group Comparison X O 1 O 2 Pre-experiment

21. 11-21 Pretest-Posttest Control Group Design RO1XO2RO3O4RO1XO2RO3O4 True experiment

22. 11-22 Posttest-Only Control Group Design True experiment RXO1RO2RXO1RO2

23. 11-23 Nonequivalent Control Group Design O1XO2O3O4O1XO2O3O4 Field experiment

24. 11-24 Separate Sample Pretest- Posttest Design RO 1 (X) R XO 2 Field experiment

25. 11-25 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

26. 11-26 Test Market Selection Isolation Control of distribution Control of distribution Criteria Representative Over-testing Media coverage Multiple locations

27. 11-27 Types of Test Markets Standard Controlled Electronic Simulated Virtual Web-enabled

28. 11-28 Exhibit 11-5 Test Market Cities

29. 11-29 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

30. 11-30 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

31. 11-31 Exhibit 11-6