Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The...

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Chapter 10 Chapter 10 Experiments Experiments McGraw-Hill/Irwin Business Research Methods, 10e Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

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Page 1: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Chapter 10Chapter 10

ExperimentsExperiments

McGraw-Hill/IrwinBusiness Research Methods, 10e

Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Page 2: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-2

Learning Objectives

Understand . . .• Uses for experimentation. • Advantages and disadvantages of the

experimental method.• Seven steps of a well-planned experiment. • Internal and external validity with

experimental research designs.• Three types of experimental designs and

the variations of each.

Page 3: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-3

PulsePoint: Research Revelation

826 The average dollar amount spent each year per employee on employee on training.

Page 4: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-4

Experiments Challenge Perceptions

“We need to keep an open mind and approach life as a series of experiments. We need to observe the experiments happening around us and create new ones. Instead of accepting the world as we think it is, we need to keep testing it to find out what it is and what works.”

Jerry Wind , Wharton School of Business, University of Pennsylvania

Page 5: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-5

Causal Evidence

Agreement between IVs and DVs

Time order of occurrence

Extraneous variables did not influence DVs

Page 6: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-6

Causal Evidence

Page 7: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-7

Evaluation of Experiments

Advantages• Ability to manipulate

IV• Use of control group• Control of extraneous

variables• Replication possible• Field experiments

possible

Disadvantages• Artificiality of labs• Non-representative

sample• Expense• Focus on present and

immediate future• Ethical limitations

Page 8: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-8

Experimentation in the Research Process

Page 9: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-9

Conducting an Experiment

Specify treatment levels

Control environment

Choose experimental design

Select and assign participants

Pilot-test, revise, and test

Collect data

Analyze data

Specify treatment variables

Page 10: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-10

Experiment: Placement of Benefits Module

Page 11: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-11

Selecting and Assigning Participants

Random assignment

Matching

Page 12: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-12

Random Assignment

Page 13: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-13

Quota Matrix Example

Page 14: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-14

Measurement Options

Scaling techniques

Scaling techniques

Physiologicalmeasures

Physiologicalmeasures

OptionsOptions

Paper-and-pencil testsPaper-and-pencil tests

Observation

Self-administered instruments

Page 15: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-15

Validity in Experimentation

ExternalInternal

Page 16: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-16

Threats to Internal Validity

Threats

Maturation History

Testing

Instrumentation

Selection

Statisticalregression

Experimentalmortality

Page 17: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-17

Additional Threats to Internal Validity

Diffusion of treatmentDiffusion of treatment

Compensatory equalizationCompensatory equalization

Compensatory rivalryCompensatory rivalry

Resentful disadvantagedResentful disadvantaged

Local historyLocal history

Page 18: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-18

Threats to External Validity

Reactivity of testing on X

Interaction of selection and X

Other reactive factors

Page 19: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-19

Experimental Research Designs

Pre-experiments

True experiments

Field experiments

Page 20: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-20

After-Only Case Study

X O

Pre-experiment

Page 21: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-21

One Group Pretest-Posttest Design

O1 X O2

Pre-experiment

Page 22: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-22

Static Group Comparison

X O1

O2

Pre-experiment

Page 23: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-23

Pretest-Posttest Control Group Design

R O1 X O2

R O3 O4

True experiment

Page 24: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-24

Posttest-Only Control Group Design

True experiment

R X O1

R O2

Page 25: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-25

Nonequivalent Control Group Design

O1 X O2

O3 O4

Field experiment

Page 26: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-26

Separate Sample Pretest-Posttest Design

R O1 (X)R X O2

Field experiment

Page 27: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-27

Group Time Series Design

R O1 O2 O3 X O4 O5 O6

R O7 O8 O9 O10 O11 O12

Field experiment

Page 28: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-28

Job Enrichment Quasi-Experiment

Page 29: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-29

Experiment: Finding the Store Design

Page 30: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-30

Experiment: The Right Size of Flavor

Page 31: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-31

Key Terms

• Blind• Control group• Controlled test market• Dependent variable• Double-blind• Environmental control

• Experiment• Experimental treatment• External validity• Field experiment• Hypothesis• Independent variable• Internal validity

Page 32: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-32

Key Terms

• Matching• Operationalized • Quota matrix• Random assignment• Replication

• Test market– Electronic test market– Simulated test market– Standard test market– Virtual test market

• Treatment levels• Web-enabled test market

Page 33: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Appendix 10bAppendix 10b

Test MarketsTest Markets

Page 34: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-34

Test Market Selection

IsolationIsolation

Control of distributionControl of distribution

CriteriaCriteria

RepresentativeRepresentative

Over-testing

Media coverage

Multiple locationsMultiple locations

Page 35: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-35

Types of Test Markets

Standard Standard

ControlledControlled

ElectronicElectronic

SimulatedSimulated

VirtualVirtual

Web-enabledWeb-enabled

Page 36: Chapter 10 Experiments McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

10-36

Test Market Cities


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