12 Experimental Research ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1. Identify the independent variable, dependent variable, and construct a valid simple experiment to assess a cause and effect relationship 2. Understand and minimize experimental error 3. Know ways of minimizing experimental demand characteristics 4. Avoid unethical experimental practices ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12-2 LEARNING OUTCOMES 5. Understand the advantages of a between-subjects experimental design 6. Weigh the trade-off between internal and external validity ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12-3 Testing Web Protocols for Financial Markets • Technology has drastically changed financial services. • How it all occurs is vitally important to IT directors. • Researchers designed a laboratory experiment to compare performance of two electronic protocols (FIX or Financial Information eXchange and SOAP or Simple Object Access Protocol). • FIX performed better. • Answers the question "How does the performance of these two approaches compare?" ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12-4 Creating an Experiment • Subjects • The sampling units for an experiment, are usually human respondents who provide measures based on the experimental manipulation. • Independent Variables • Experimental conditions • Blocking variables ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–5 Creating an Experiment (cont’d) • Main Effect • The experimental difference in dependent variable means between the different levels of any single experimental variable. • Interaction Effect • Differences in dependent variable means due to a specific combination of independent variables. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–6 EXHIBIT 12.3 Experimental Graph Showing Results Within Each Condition ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–7 Designing an Experiment to Minimize Experimental Error • Manipulation of the Independent Variable • Experimental treatment: the way an experimental variable is manipulated. • Experimental Group • Control Group ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–8 Designing an Experiment to Minimize Experimental Error • More than One Independent Variable • Repeated Measures • Selection and Measurement of the Dependent Variable • Selecting dependent variables that are relevant and truly represent an outcome of interest is crucial. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–9 Selection and Assignment of Test Units • Sample Selection And Random Sampling Errors • Systematic or nonsampling error • Overcoming sampling errors ◗ Randomization ◗ Matching ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–10 Sample Selection And Random Sampling Errors • Experimental Confound ◗ When there is an alternative explanation beyond the experimental variables for any observed differences in the dependent variable. ◗ Once a potential confound is identified, the validity of the experiment is severely questioned. • Extraneous variables ◗ Variables that naturally exist in the environment that may have some systematic effect on the dependent variable. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–11 Demand Characteristics • Demand Characteristic • An experimental design element or procedure that unintentionally provides subjects with hints about the research hypothesis. • Demand Effect • Occurs when demand characteristics actually affect the dependent variable. • Hawthorne Effect • People will perform differently from normal when they know they are experimental subjects. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–12 Reducing Demand Characteristics • Use an experimental disguise • Isolate experimental subjects • Use a “blind” experimental administrator • Administer only one experimental treatment level to each subject ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–13 Establishing Control • Constancy of Conditions • Subjects in all experimental groups are exposed to identical conditions except for the differing experimental treatments. • Counterbalancing • Attempts to eliminate the confounding effects of order of presentation by varying the order of presentation (exposure) of treatments to subject groups. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–14 Ethical Issues in Experimentation • Debriefing experimental subjects • Communicating the purpose of the experiment • Explaining the researcher’s hypotheses • Attempts to interfere with a competitor’s test-marketing efforts • Such acts as changing prices or increasing advertising to influence (confound) competitors’ test-marketing results are ethically questionable. 12–15 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Elbow Partner Chat Review the question and have a chat with a partner or group of three. Be prepared to share with the class. • Suppose researchers were experimenting with how much more satisfied consumers are with a "new and improved" version of some existing product. How might the researcher design a placebo within an experiment testing this research question? Is using such a placebo ethical or not? ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Practical Experimental Design Issues • Basic versus Factorial Experimental Designs • Basic experimental designs – a single independent variable and a single dependent variable. • Factorial experimental design – allows for an investigation of the interaction to two or more independent variables. • Laboratory Experiment • Field Experiments ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–17 The Hidden in Hidden Valley Ranch • The company tested three new flavours, and all of them sold out within three days • Not so fast…a competitor bought them all! • Illustrates the risk associated with field tests ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12-18 Within-Subjects and BetweenSubjects Designs • Within-Subjects Design • Involves repeated measures because with each treatment the same subject is measured. • Between-Subjects Design • Each subject receives only one treatment combination. • Usually advantageous although they are usually more costly. • Validity is usually higher. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–19 Within- and Between-Subjects Designs EXHIBIT 12.6 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–20 Issues of Experimental Validity • Internal Validity • The extent an experimental variable is truly responsible for any variance in the dependent variable. • Manipulation Checks • A validity test of an experimental manipulation to make sure that the manipulation does produce differences in the independent variable. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–21 Effects of Extraneous Variables on Validity • History Effect • Cohort Effect • Maturation Effects • Testing effects • Instrumentation Effect • Selection • Mortality Effect (Sample Attrition) ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–22 External Validity • External Validity – the accuracy with which experimental results can be generalized beyond the experimental subjects. • Increased when the subjects in the sample represent the population. • The higher the external validity the more researchers can count on the fact that any results observed in an experiment will also be seen in the “real world.” ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–23