Marketing Research 7/17/2016 1 Laboratory (high internal validity) ◦ usually cheaper and quicker ◦ Better control ◦ Only appropriate if manipulations are meaningful in contrived setting Field (high external validity) ◦ Quasi experiments ◦ Test markets ◦ More generalizable Marketing Research 7/17/2016 2 O = observe DV, X = manipulate IV Quasi-experimental ◦ ◦ ◦ ◦ Also called pre-experimental One group pretest posttest: O x O One shot: x O Static group: Experimental group: x O Control group: O Marketing Research 7/17/2016 3 Internal ◦ Are we really measuring what we think we’re measuring? ◦ Is change in DV really due to change in IV External ◦ Are the results representative of the real world (generalizable)? Marketing Research 7/17/2016 4 Problems: ◦ Extraneous factors ◦ Changes in subjects Fatigue, learning, drop-out, guessing purpose, demand effects ◦ Measurement error ◦ Inequivalent groups Marketing Research 7/17/2016 5 Problems: ◦ Representative sample ◦ Realism ◦ Generalizability Marketing Research 7/17/2016 6 An experimental procedure that provides an opportunity to test a new product or a new marketing plan under realistic market conditions to measure sales or profit potential. ESTIMATE OUTCOMES IDENTIFY AND CORRECT WEAKNESSES IN PLANS Population Demographic composition Lifestyle considerations Competitive situation Media coverage and isolation Self-contained trading area Secrecy Small city Low chance of being detected Distribution is forced (guaranteed) Cedar Rapids, Iowa Charlotte, North Carolina Columbus, Ohio Evansville, Indiana Eau Claire, Wisconsin Grand Junction. Colorado Little Rock, Arkansas Odessa-Midland, Texas Omaha, Nebraska Pittsfield, Massachusetts Tulsa, Oklahoma Wichita, Kansas Wichita Falls, Texas Marketing Research 7/17/2016 11 Special area in marketing Tries to adjust for problems: ◦ Overattention ◦ Store conditions ◦ Competitive environment ◦ Diffusion and awareness of product Marketing Research 7/17/2016 12 Often based on scanner data Prices vary Compare price to sales ◦ Answers: ◦ How price sensitive are customers? ◦ What is the optimal price? Marketing Research 7/17/2016 13 Experimental research is filled with tradeoffs between internal and external validity. Making something more believable or more realistic may not be in your best interest. Despite its limitations, experimental research is at least as valid as field research. Marketing Research 7/17/2016 14 Marketing Research 7/17/2016 15