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RM Summary Chapter 7

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RM Summary Chapter 7

analyse survey

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aniket4220
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© © All Rights Reserved
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RESEARCH METHODOLOGY

Chapter 7
Casual Research Design:Experimentation

PGDM – 12 GROUP – 1

Submitted by
Anisha Pant 2024-0508-0001-0001
Anjali Singh 2024-0708-0001-0008
Akash Prasad 2024-0508-0001-0002
Aniket Kumar 2024-0808-0001-0002
Adinath Bobade 2024-1208-0001-0002
Nikhil Jagtap 2024-3108-0001-0002

Submitted to
Dr. Prantosh J. Banerjee
Causality: Ordinary vs. Scientific Meaning

The concept of causality differs between ordinary and scientific


meanings. Scientifically, causality implies:

- Multiple possible causes


- Probabilistic relationships
- No guaranteed proof, only inference
- X makes Y more probable, but doesn't always lead to Y
This scientific meaning is more relevant to marketing research.

Research Variables and Experimental Design

Variables:

- Independent: manipulated by researcher (e.g., price levels, package


designs)
- Dependent: measures effect of independent variables (e.g., sales,
profits)
- Extraneous: variables that affect test units (e.g., store size, location)

Experimental Design:
- Specifies test units, independent variables, dependent variables, and
control of extraneous variables
- Aims to establish cause-and-effect relationships between variables

Conditions for Causality

Three conditions must be met to infer causality:

1. Concomitant variation: cause and effect occur together


2. Time order: cause precedes or occurs simultaneously with effect
3. Elimination of other causal factors: no other variables can explain
the relationship
These conditions are necessary but not sufficient to prove causality.

1.Definition of Symbols.
To facilitate our discussion of extraneous variables and specific
experimental designs, we define a set of symbols that is now
commonly used in marketing research.
• Movement from left to right indicates movement through time. •
Horizontal alignment of symbols implies that all those symbols refer
to a specific treatment group. • Vertical alignment of symbols implies
that those symbols refer to activities or events that occur
simultaneously.
2.Validity in Experimentation.
When conducting an experiment, a researcher has two goals: (1)
draw valid conclusions about the effects of independent variables on
the study group, and (2) make valid generalizations to a larger
population of interest. The first goal concerns internal validity; the
second concerns external validity. refers to whether the manipulation
of the independent variables or treat ments actually caused the
observed effects on the dependent variables.
3.Extraneous Variables
In this section, we classify extraneous variables in the following
categories: history, maturation, testing, instrumentation, statistical
regression, selection bias, and mortality. Contrary to what the name
implies, history (H) does not refer to the occurrence of events before
the experiment. Rather, history refers to specific events that are
external to the experiment but occur at the same time as the
experiment.
4.Controlling Extraneous Variables.
Extraneous variables represent alternative explanations of
experimental results. They pose a serious threat to the internal and
external validity of an experiment. Unless they are controlled for, they
affect the dependent variable and thus confound the results. For this
reason, they are also called confounding variables.
A classification Of Experimental Design:
Experimental designs are categorized into preexperimental, true
experimental, quasi-experimental, and statistical types, each differing
in randomization, control, and complexity for testing and analysis.

Preexperimental designs:
Preexperimental designs not use random assignment, making them
less reliable. They include:

One-shot case study: Measures only after treatment with no


comparison group.
One-group pretest-posttest: Measures before and after treatment but
lacks a control group.
Static group design: Compares treated and untreated groups, but
without random assignment.

True experimental designs:


True experimental designs use random assignment for reliability. Key
types are:

Pretest-posttest control group design: Measures before and after


treatment, controlling many variables.
Posttest-only control group design: Measures only after treatment,
simplifying the process but risks selection bias and does not track
individual changes.

Quasi Experimental Design:


The quasi experimental design examines interventions without
random assignment, frequently using pre-existing groups. It assesses
causal effects by comparing the results of a treatment group to a
control group. This technique strikes a balance between practical
limits and analytical rigour, providing useful insights while
acknowledging limitations in control over confounding variables.

Statistical Design:
Statistical design is the process of planning how to gather and analyze
data in order to ensure that the results are valid and trustworthy. It
comprises identifying variables, calculating sample sizes, and
selecting relevant statistical tests. Effective statistical design improves
the accuracy of inferences and strengthens study conclusions.

Laboratory vs Field Experiment:


Laboratory investigations regulate variables in a controlled
environment to ensure accurate measurements, whereas field
experiments test hypotheses in realistic settings to improve external
validity. Laboratory experiments provide strong internal validity,
whereas field trials provide real-world application, both with trade-
offs in control and generalizability.

Experimental Versus Nonexperimental Designs:


Exploratory, descriptive, and causal research designs serve different
purposes. Causal designs are the best for establishing cause-and-effect
relationships. Descriptive studies may indicate causal links, but due to
group equivalence and time order factors, they are not substantive,
although experiments can control these lurking variables through
random assignment and timing. While descriptive research is a
common type of study in marketing, it lacks control over other causal
factors. Nonetheless, it is still possible to derive causal inferences
from descriptive data using particular methods. Each type of research
has its strengths and limitations for causal inference.

Limitations of Experimentation:
Marketing research experimentation is constrained by time, cost, and
administration. Measuring long-term effects is time-consuming, and
most require control or experimental groups, which come with a hefty
price tag. Conducting research is hard enough on its own, and it gets
even harder when extraneous variables you cannot control interfere
with your participants.
Application-Test Marketing:
Test marketing is defined as a controlled experiment with plans to
replicate in an upcoming national campaign. The marketing mix
variables (independent variables) are optimized, while the dependent
response variable is sales, allowing a national strategy to be
developed. The two primary goals are to assess product acceptance
and refine the marketing mix comprehensively.
International Marketing Research:
International field experiments can be quite problematic due to less
developed marketing, economic, and technological environments. For
example, many countries have government-controlled media that
greatly limit advertising experimentation and ability to test such
factors as the effectiveness of advertising, also cited as an issue when
M&M/Mars entered Russia. In much of the world the general
infrastructure is so poor it is difficult to distribute and control
experimental variables.

MARKETING RESEACH AND SOCIAL MEDIA:


The virtual world of Second Life allows for affordable marketing
research, wherein the costs incurred for focus groups and surveys are
significantly less than in real life. Participation is also encouraged
through tools such as Linden dollars and other forms of virtual
rewards. Even though virtual experiments are far easier and less
expensive than those conducted in the real world, they may be lower
in external validity and should be cross-checked with the real world.
MOBILR MARKETING RESEARCH
MMR can also easily use experimental designs, just like on the
Internet. Mobile devices can be used to conduct controlled
experimentation, where different websites might be used for each
treatment and data might be collected using questionnaires. On the
other hand, limitations for MMR are similar to those of mobile survey
research.

ETHICS IN MARKETING RESEARCH:


Some experiments require the disguise of the real purpose of the
experiment in order to retrieve valid results. In fact, studies that
involve the evaluation of, say, a Rice Krispies commercial embed its
actual purpose amidst fillers or distracters of irrelevant information.

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