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Experimental techniques



 
 
Experimental research designs are used for the controlled testing of causal
Causality

Causality denotes a necessary relationship between one event and another event which is the direct consequence of the first.While this informal understanding suffices in everyday use, the Philosophy analysis of how best to characterize causality extends over millennia....
 processes. The general procedure is one or more independent variables are manipulated to determine their effect on a dependent variable. These designs can be used where: 1) There is time priority in a causal relationship (cause precedes effect), 2) There is consistency in a causal relationship (a cause will always lead to the same effect), and 3) The magnitude of the correlation is great.






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Experimental research designs are used for the controlled testing of causal
Causality

Causality denotes a necessary relationship between one event and another event which is the direct consequence of the first.While this informal understanding suffices in everyday use, the Philosophy analysis of how best to characterize causality extends over millennia....
 processes. The general procedure is one or more independent variables are manipulated to determine their effect on a dependent variable. These designs can be used where: 1) There is time priority in a causal relationship (cause precedes effect), 2) There is consistency in a causal relationship (a cause will always lead to the same effect), and 3) The magnitude of the correlation is great. The most common applications of these designs in marketing research
Marketing research

Marketing research, or market research, is a form of business research and is generally divided into two categories: consumer market research and business-to-business market research, which was previously known as industrial marketing research....
 and experimental economics
Experimental economics

Experimental economics is the application of experimental methods to study economic questions. Experiments are used to test the validity of economic theories and test-bed new market mechanisms....
 are test markets and purchase labs. The techniques are commonly used in other social sciences including sociology
Sociology

Sociology is a branch of the social sciences that uses systematic methods of Empiricism and critical theory to develop and refine a body of knowledge about human social structure and activity, sometimes with the goal of applying such knowledge to the pursuit of social welfare....
 and psychology
Psychology

Psychology is an academic and applied science discipline involving the science study of human mental functions and behavior. Occasionally it also relies on symbolic hermeneutics and critical theory, although these traditions are less pronounced than in other social sciences such as sociology....
.

Controls

One of the most important requirements of experimental research designs is the necessity of eliminating the effects of spurious
Spurious relationship

In statistics, a spurious relationship is a mathematical relationship in which two occurrences have no causal connection, yet it may be inferred that they do, due to a certain third, unseen factor ....
, intervening, and antecedent variable
Antecedent variable

In Bronx Science students are taught that the antecedent varible affects the whole relation of the variblesAn antecedent variable is a variable that occurs before the independent variable and the dependent variable....
s. In the most basic model, cause (X) leads to effect (Y). But there could be a third variable (Z) that influences (Y), and X might not be the true cause at all. Z is said to be a spurious variable and must be controlled for. The same is true for intervening variable
Intervening variable

An intervening variable is a hypothetical internal state that is used to explain relationships between observed variables, such as independent and dependent variables, in empirical research....
s (a variable in between the supposed cause (X) and the effect (Y)), and anteceding variables (a variable prior to the supposed cause (X) that is the true cause). When a third variable is involved and has not been controlled for, the relation is said to be a [zero order] relationship. In most practical applications of experimental research designs there are several causes (X1,X2,X3). In most designs only one of these causes is manipulated at a time.

Purchase laboratory

A true experimental design requires an artificial environment so as to control for all spurious, intervening, and antecedent variables. A purchase laboratory approaches this ideal. Participants are given money, script, or credit to purchase products
Product (business)

The noun product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce from the Latin produce, lead or bring forth....
 in a simulated store. Researchers modify one variable at a time (for example; price, packaging, shelf location, size, or competitors’ offerings) and determine what effect that has on sales volume. Internet-based purchase labs (called virtual purchase labs) are becoming more common.

Simplified versions of the purchase laboratory are often used for pragmatic reasons. An example of this would be to use tachistoscope
Tachistoscope

A tachistoscope is a machine that displays an for a specific amount of time. It can be used to increase recognition speed, to show something too fast to be consciously recognized, or to test which elements of an image are memorable....
s for testing packaging and shelf location.

Test markets

Quasi-experimental designs control some, but not all, of the extraneous factors. A test market
Test market

A test market, in the field of business and marketing, is a geographic region or demographic group used to gauge the viability of a product or service in the mass market prior to a wide scale roll-out....
 is an example of this. A new product is typically introduced in a select number of cities. These cities must be representative of the overall national (or international) population. They should also be relatively unpolluted by outside influences (for example : media from other cities). The marketer has some control over the marketing mix
Marketing mix

The Marketing mix is generally accepted as the use and specification of the four p's describing the strategic position of a product in the marketplace....
 variables, but almost no control over the broader business environment variables
Environmental scanning

Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering....
. Competitors could change their prices
Pricing

Pricing is one of the four Ps of the marketing mix. The other three aspects are product, promotion, and Distribution . It is also a key variable in microeconomic price allocation theory....
 during the test. Government could change the level of taxes. New competing products
New product development

In business and engineering, new product development is the term used to describe the complete process of bringing a new product or service to market....
 could be introduced. An advertising campaign
Advertising

Advertising is a form of communication that typically attempts to persuade potential customers to Purchasing or to consume more of a particular brand of Product or Service ....
 could be initiated by competitors. Any of these spurious variables could contaminate the test market.

Experimental research designs

In an attempt to control for extraneous factors, several experimental research designs have been developed, including:
  • Classical pretest-post test - The total population of participants is randomly divided into two samples; the control sample, and the experimental sample. Only the experimental sample is exposed to the manipulated variable. The researcher compares the pretest results with the post test results for both samples. Any divergence between the two samples is assumed to be a result of the experiment.
  • Solomon four group design - The population is randomly divided into four samples. Two of the groups are experimental samples. Two groups experience no experimental manipulation of variables. Two groups receive a pretest and a post test. Two groups receive only a post test. This is an improvement over the classical design because it controls for the effect of the pretest.
  • Factorial design
    Factorial experiment

    In statistics, a factorial experiment is an experiment whose design consists of two or more factors, each with discrete possible values or "levels", and whose experimental units take on all possible combinations of these levels across all such factors....
     - this is similar to a classical design except additional samples are used. Each group is exposed to a different experimental manipulation.

See also

  • Choice Modelling
    Choice Modelling

    Choice modelling attempts to model the decision process of an individual or segment in a particular context. Choice modelling may also be used to estimate non-market environmental benefits and costs....
  • marketing
    Marketing

    Marketing is defined by the American Marketing Association as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large....
  • marketing research
    Marketing research

    Marketing research, or market research, is a form of business research and is generally divided into two categories: consumer market research and business-to-business market research, which was previously known as industrial marketing research....
  • design of experiments
    Design of experiments

    Design of experiments, or experimental design, is the design of all information-gathering exercises where variation is present, whether under the full control of the experimenter or not....
  • experimental economics
    Experimental economics

    Experimental economics is the application of experimental methods to study economic questions. Experiments are used to test the validity of economic theories and test-bed new market mechanisms....


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