Marketing Research: An Applied

Orientation
Seventh Edition

Chapter 7
Causal Research Design:
Experimentation

Copyright © 2019, 2010, 2007 by Pearson Education, Inc. All Rights Reserved.
 7-2

Chapter Outline (1 of 3)

1) Overview
2) Concept of Causality
3) Conditions for Causality
4) Definition and Concepts
5) Definition of Symbols
6) Validity in Experimentation
7) Extraneous Variables
8) Controlling Extraneous Variables
9) A Classification of Experimental
Designs
 7-3

Chapter Outline (2 of 3)

10) Pre-experimental Designs

11) True Experimental Designs
12) Quasi Experimental Designs
13) Statistical Designs
14) Laboratory Vs. Field Experiments
15) Experimental Vs. Non-experimental
Designs
16) Limitations of Experimentation
17) Application: Test Marketing
18) Determining a Test Marketing Strategy
19) International Marketing Research
 7-4

Chapter Outline (3 of 3)

20) Marketing Research & Social Media

21) Mobile Marketing Research
22) Ethics in Marketing Research
23) Summary
 7-5

Concept of Causality
A statement such as "X causes Y " will have the following
meaning to an ordinary person and to a Scientist:
____________________________________________________
Ordinary Meaning Scientific Meaning
____________________________________________________
X is the only cause of Y. X is only one of a number of
possible causes of Y.

X must always lead to Y The occurrence of X makes

the
(X is a deterministic occurrence of Y more probable
cause of Y). (X is a probabilistic cause of Y).

It is possible to prove We can never prove that X is

a
that X is a cause of Y. cause of Y. At best, we can
infer that X is a cause of Y.
____________________________________________________
 7-6

Conditions for Causality

1. Concomitant variation (strong evidence that both X
and Y covary) is the extent to which a cause, X, and an
effect, Y, occur together or vary together in the way
predicted by the hypothesis under consideration.
2. Time order of occurrence condition states that the
causing event must occur before the effect; it cannot
occur afterwards.
3. Absence of other possible causal factors means that
the factor or variable being investigated should be the
only possible causal explanation.
 7-7

Definitions and Concepts

 Independent variables are variables (causes) or
alternatives that are manipulated and whose effects
are measured and compared, e.g., price levels.
 Test units are individuals, organizations, or other
entities whose response to the independent variables
or treatments is being examined, e.g., consumers or
stores.
 Dependent variables are the variables (outcomes)
which vary by the effect of the independent variables
on the test units, e.g., sales, profits, and market
shares.
 Extraneous variables (contaminating variables)
variables
are all variables other than the independent
variables that affect the response of the test units,
e.g., store size, store location, and competitive effort.
 7-8

Experimental Design
 Experiment is research investigation of causality in which
conditions are controlled, and an independent variable (or
more) is manipulated to test its effect on a dependent
variable.
 Experimental designs become necessary when we have
to identify a causal relationship, not just association
between two variables

 An experimental design is a set of procedures specifying:


the test units and how these units are to be divided into
homogeneous subsamples,

what independent variables or treatments are to be
manipulated,

what dependent variables are to be measured, and

how the extraneous variables are to be controlled.
 7-9

Validity in Experimentation
 Internal validity refers to the ability of an
experiment to answer the question whether
the experimental treatment was the sole
cause of changes in a dependent variable (Did
the manipulation do what it was supposed to
do?)
 Control of extraneous variables is a necessary
condition for establishing internal validity.

 External validity (Generalizability) refers

to whether the cause-and-effect relationships
found in the experiment can be generalized
(applicability of experimental results outside
the experiment setting).
 7-10

Threats to internal validity (Extraneous Variables)

Variables
 History refers to specific events that are external to the experiment
but occur at the same time as the experiment.
 Maturation (MA) refers to changes in the test units themselves that
occur with the passage of time.
 Testing effects are caused by the process of experimentation
(awareness of being tested). For example, the “Before measure”
alerts or sensitizes subjects to nature of experiment or second
measure.
 Main testing effect (MT) occurs when a prior observation affects a
latter observation).
 In the interactive testing effect (IT), a prior measurement affects
the test unit's response to the independent variable.
 Instrumentation (I) refers to changes in the measuring instrument
during the experiment (or changing observers themselves).
 Statistical regression (SR) effects occur when test units with
extreme scores move closer to the average score during the
experiment.
 Selection bias (SB) refers to the improper assignment of test units
to treatment conditions.
 Mortality (MO) refers to the loss of test units while the experiment
is in progress.
 7-11

Controlling Extraneous Variables

 Randomization refers to the random assignment of
test units to experimental groups (and control
groups) to avoid selection bias (i.e. avoid extreme
cases among test units).
 Matching involves deliberately spreading test units
across groups on key background variables before
assigning them to the treatment conditions (i.e.
spreading women equally among the two group if
Gender is a key variable).
 Statistical control involves measuring the
extraneous variables and adjusting for their effects
through statistical analysis.
 Design control is choosing an appropriate
experimental design that can help control specific
extraneous variables.
 7-12

Threats to External validity

 The most important threats are:
 Differences between conditions of
experiment and those of real world.

 Selectivity bias
 Classification of Experimental Designs (1
7-13

of 3)
Figure 7.1

Experimental Designs

Pre-experimental True Quasi Statistical

Experiment Experimental
al
One-Shot Pretest-Posttest Time Series Randomize
Case Study Control Group d Blocks

One Group “Posttest-Only” Multiple Factorial

Pretest- Control Group Time Series Design
Posttest
Solomon Four- Latin
Static Group Group Square
Classification of Experimental Designs (2
7-14

of 3)
 Pre-experimental designs do not
employ randomization procedures to
control for extraneous factors. They
include:
 one-shot case study
 one-group pretest-posttest design
 Static-group.
 True experimental designs randomly
assign test units to experimental groups.
They include:
 pretest-posttest control group design
 posttest-only control group design
 Solomon four-group design.
A Classification of Experimental Designs
7-15

(3 of 3)
 Quasi-experimental designs used
when the researcher is unable to
achieve full manipulation of scheduling
or allocation of treatments to test units,
but can still apply part of true
experimentation. They include:

Time series design

Multiple time series design
 Statistical design is a series of basic
experiments that allows for statistical
control and analysis of external
variables. They include:

Randomized block design

Factorial designs.

Other designs
Pre-experimental designs:
7-16

One-Shot Case Study

X 01

 A single group of test units is exposed to

a treatment X.
 A single measurement on the dependent
variable is taken (01).
 There is no random assignment of test
units.
 The one-shot case study is more
appropriate for exploratory than for
conclusive research.
One-Group Pretest-Posttest 7-17

Design
01 X 02

 A group of test units is measured

twice.
 There is no control group.
 The treatment effect is computed as
0 2 – 0 1.
 The validity of this conclusion is
questionable since extraneous
variables are largely uncontrolled.
 7-18

Static Group Design

EG: X 01
CG: 02

 A two-group experimental design.

 The experimental group (EG) is exposed to the
treatment, and the control group (CG) is not.
 Measurements on both groups are made only
after the treatment.
 Test units are not assigned at random.
 The treatment effect would be measured as 01
- 02.
True Experimental Designs:
7-19

Pretest-Posttest Control Group Design

EG: R 01 X 02
CG: R 03 04

 Test units are randomly assigned (to both

experimental and control groups).
 A pretreatment measure is taken on each group.
 The treatment effect (TE) is measured as:(02 - 01) - (04 -
03).
 Selection bias is eliminated by randomization.
 Interactive testing effect is not controlled.
Posttest-Only Control Group 7-20

Design
EG : R X 01
CG : R 02

 The treatment effect is obtained by

TE = 01 - 02
 Except for pre-measurement, the
implementation of this design is
very similar to that of the pretest-
posttest control group design.
 7-21

Solomon Four Group Design

EG 1: R O1 X O2
CG 1: R O3 O4
EG 2: R X O5
CG 2: R O6

 Treatment effect is judged by

 E=O2-O1, E=O2-O4, E=O5-O6, E=O5-O3, [(O2-O1)-
(O4-O3)]
 If all E values are similar, then Cause-Effect relationship
is valid.
 Solomon Four Group is a true design that overcomes
the weaknesses of Pretest-Posttest Control Group
Design and Posttest-only Control Group Design.
 Specifically, Solomon Four Group is a true design
that explicitly controls for interactive testing effect, and
also controls for all the other extraneous variables.
 Time Series Design
7-22
(also called Simple Time Series
Design)
Design

01 02 03 04 05 X 06 07 08 09 010

 There is no randomization of test units to

treatments.
 Measurement is taken several times before
treatment, and then several times after treatment.
 The series of measurements can be taken on
separate random samples from the same
population (called “Trend Studies”), or can be
taken on the same sample (called “Continuous
Panel Studies”)
 Timing of treatment presentation, as well as which
test units are exposed to the treatment, may not
be within the researcher's control.
 7-23

Multiple Time Series Design

EG : 01 02 03 04 05 X 06 07 08 09 010
CG : 01 02 03 04 05 06 07 08 09 010

 If the control group is carefully

selected, this design can be an
improvement over the simple time
series experiment.
 It can test the treatment effect
twice: against the pretreatment
measurements in the experimental
group and in the control group.
 7-24

Statistical Experimental Designs

 Statistical designs consist of a series of basic
experiments that allow for statistical control and
analysis of external variables, and can offer the
following advantages:
 The effects of more than one independent variable can
be measured.
 Specific extraneous variables can be statistically
controlled.
 Economical designs can be formulated when each test
unit is measured more than once.
 The most common statistical designs are:

Randomized block design

Latin square design

Factorial design
 7-25

Randomized Block Design

 Is useful when there is only one major
external variable, such as store size,
that might influence the dependent
variable.
 The test units are blocked, or grouped,
on the basis of the external variable.
 By blocking, the researcher ensures that
the various experimental and control
groups are matched closely on the
external variable.
 7-26

Latin Square Design

 Allows the researcher to statistically
control two non-interacting external
variables as well as to manipulate the
independent variable.
 Each external or blocking variable is
divided into an equal number of blocks,
or levels.
 The independent variable is also divided
into the same number of levels.
 7-27

Factorial Design
 Is used to measure the effects of two or
more independent variables at various
levels.
 Laboratory versus Field 7-28

Experiments
Table 7.7

Factor Laboratory Field

Environment Artificial Realistic

Control High Low
Reactive Error (testing effect) High
Low
Demand Artifacts High Low
Internal Validity High Low
External Validity Low High
Time Short Long
Number of Units Small Large
Ease of Implementation High Low
Cost Low
High
 7-29

Limitations of Experimentation
 Experiments can be time consuming,
particularly if the researcher is interested in
measuring the long-term effects.
 Experiments are often expensive. The
requirements of experimental group, control
group, and multiple measurements
significantly add to the cost of research.
 Experiments can be difficult to administer.
It may be impossible to control for the effects
of the extraneous variables, particularly in a
field environment.
 Competitors may deliberately contaminate
the results of a field experiment.
Unethical practices in 7-30

experimentation
 Putting pressure on people to participate
 Asking demeaning questions (i.e. degrading or
humiliating questions, such as how often do you
hit your children)
 Deceiving subjects- not telling them the true
purpose of research
 Exposing subjects to stress (mentally or
physically)
 Preventing subjects from withdrawing from the
survey
 Using research results to the disadvantage of
subjects
 Withholding benefits from control group
 Not explaining the experiment procedures
 Not preserving or respecting privacy of
respondents.
 Not informing an organization when its members
are the subjects.