Business Research Methods

William G. Zikmund

Chapter 12: Experimental Research

Experiment
A research investigation in which conditions are controlled One independent variable is manipulated (sometimes more than one) Its effect on a dependent variable is measured To test a hypothesis

Basic Issues of Experimental Design

Manipulation of the Independent Variable Selection of Dependent Variable Assignment of Subjects (or other Test Units) Control Over Extraneous Variables

The experimenter has some degree of control over the independent variable. The variable is independent because its value can be manipulated by the experimenter to whatever he or she wishes it to be.

Experiment Treatment
Alternative manipulations of the independent variable being investigated

Independent Variable
The experimenter controls independent variable. The variables value can be manipulated by the experimenters to whatever they wish it to be.

Manipulation of Independent Variable

Classificatory Vs. continuous variables Experimental and control groups Treatment levels More than one independent variable

Experimental Treatments
The alternative manipulations of the independent variable being investigated

Dependent Variable
Its value is expected to be dependent on the experimenters manipulation Criterion or standard by which the results are judged

Dependent Variable
Selection
e.g... sales volume, awareness, recall,

Measurement

Test Units
Subjects or entities whose response to the experimental treatment are measured or observed.

Two Types of Experimental Error

Constant errors Random errors

Establishing Control

Physical Control
Holding the value or level of extraneous variables constant throughout the course of an experiment.

Statistical Control
Adjusting for the effects of confounding variables by statistically adjusting the value of the dependent variable for each treatment conditions.

Design Control
Use of the experimental design to control extraneous causal factors. Eg. Demand

Demand Characteristics
Experimental procedures that intentionally hint to subjects something about the experimenters hypothesis

Demand Characteristics

Guinea pig effect Hawthorne effect

Field versus Laboratory Experiments

Field Vs. Laboratory Experiment

Laboratory Experiment Artificial-Low Realism Few Extraneous Variables High control Low Cost Short Duration Subjects Aware of Participation

Field Experiment Natural-High Realism Many Extraneous Variables Low control High Cost Long Duration Subjects Unaware of Participation

Control Groups
Isolate extraneous variation

When does an Experiment have Internal Validity?

Internal Validity - 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?

Factors Influencing Internal Validity

History Maturation Testing Instrumentation Selection Mortality

Isolating Extraneous Variation with a Control Group

History Effects Maturation Effects Mortality Effects

Type of Extraneous Variable

History - Specific events in the environment between the Before and After measurement that are beyond the experimenters control Maturation - Subjects change during the course of the experiment Testing - The Before measure alerts or sensitizes subject to nature of experiment or second measure.

Example
A major employer closes its plant in test market area

Subjects become tired Questionnaire about the traditional role of women triggers enhanced awareness of women in an experiment.

Instrument - Changes in instrument result in response bias

New questions about women are interpreted differently from earlier questions. Control group and experimental group is self-selected group based on preference for soft drinks

Selection - Sample selection error because of differential selection comparison groups

Mortality - Sample attrition; some subjects withdraw from experiment

Subjects in one group of a hair dying study marry rich widows and move to Florida

How can Internal Validity Increase?

Increasing Internal Validity

Control group Random assignment

Pretesting and posttesting

Posttest only

What are the Different Basic Experimental Designs?

Quasi-Experimental Designs
One Shot Design (After Only) One Group Pretest-Posttest Static Group Design

One Shot Design (After Only)

X O1

One Group Pretest-Posttest

O1 X O2

Static Group Design

Experimental Group Control Group X O1 O2

Three Good Experimental Designs

Pretest - Posttest Control Group Design Posttest Only Control Group Solomon Four Group Design

Pretest-Posttest Control Group Design

Experimental Group Control Group R O1 X O2 R O3 O4

Posttest Only Control Group

Experimental Group Control Group R R X O1 O2

One-Shot Design Internal Validity Problems

History
weak

Instrumentation
not relevant

Maturation
weak

Selection
weak

Testing
not relevant

Mortality
weak

One-Group Pretest-Posttest Internal Validity Problems

History
weak

Instrumentation
weak

Maturation
weak

Selection
controlled

Testing
weak

Mortality
controlled

Static-Group Design Internal Validity Problems

History
controlled

Instrumentation
controlled

Maturation
possible source of concern

Selection
weak

Testing
controlled

Mortality
weak

Pretest-Posttest Control Internal Validity Problems

History
controlled

Instrumentation
controlled

Maturation
controlled

Selection
controlled

Testing
controlled

Mortality
controlled

Solomon Four-Group Design Internal Validity Problems

History
controlled

Instrumentation
controlled

Maturation
controlled

Selection
controlled

Testing
controlled

Mortality
controlled

Posttest-Only Control Internal Validity Problems

History
controlled

Instrumentation
controlled

Maturation
controlled

Selection
controlled

Testing
controlled

Mortality
controlled

Solomon Four Group Design

Experimental Group 1: Control Group 1: Experimental Group 2: Control Group 2: R O1 X O2 R O3 O4 R X O5 R O6

Advanced Experimental Designs are More Complex

Completely randomized Randomized block design Latin square Factorial

Completely Randomized Design

An experimental design that uses a random process to assign subjects (test units) and treatments to investigate the effects of only one independent variable.

Completely Randomized Designs

Control: no music Average minutes shopper spends in store Experimental treatment: slow music Experimental treatment: fast music

16

18

12

Independent Variable A
Level 1 Level 2 Level 3

Group A

Group B

Group C

Completely Randomized Design

With a pretest posttest

Group A
Group B Group C

R
R R

O1
O3 O5

X1
X2 X3

O2
O4 O6

Completely Randomized Design

With a posttest

Group A
Group B Group C

R
R R

X1
X2 X3

O1
O2 O3

Randomized Block Design

An extension of the completely randomized design in which a single extraneous variable that might affect test units response to the treatment has been identified and the effects of this variable are isolated by blocking out its effects.

Randomized Block Design

Independent Variables Control: no music Experimental treatment slow music Experimental treatment: fast music

Blocking variable

Mornings and afternoons

Evening hours

Factorial Design
An experiment that investigates the interaction of two or more variables on a single dependent variable.

Independent Variable 1
No Music Independent Variable 2 No Music cart signs Slow Music Fast Music

Grocery cart signs

Factorial Design -- Roller Skates

Package Design Price $25 $30 $35 Red Cell 1 Cell 2 Cell 3 Gold Cell 4 Cell 5 Cell 6

Effects
Main effect The influence of a single independent variable on a dependent variable. Interaction effect The influence on a dependent variable by combinations of two or more independent variables.

2 x 2 Factorial Design
Ad A
Men

Ad B
65
Main Effects > of Gender

Women
70 60

65

Main Effects of Ad

100 90 80 70 60 50

Interaction Between Gender and Advertising Copy

40
30 20 10 Ad A Ad B

Independent Variable 1
Level 1 Level 2

Level 1 Independent Variable 2

Group A

Group B

Level 2

Group C

Group D

2 x 2 Factorial with a Pretest Posttest

Group A R O1 X11 O2

Group B
Group C Group D

R
R R

O3
O5 O7

X21
X12 X22

O4
O6 O8

2 x 2 Factorial Design with a Posttest Measure

Group A R X11 O1

Group B
Group C Group D

R
R R

X21
X12 X22

O2
O3 O4

A Test Market Experiment on Pricing

Sales in Units (thousands) Regular Price $.99
Test Market A, B, or C Test Market D, E, or F Test Market G, H, or I Test Market J, K, or L Mean Grand Mean

Reduced Price $.89 145 143 120 131 X2=134.75

Cents-Off Coupon Regular Price

130 118 87 84 X1=104.75 X=119.58

153 129 96 99 X1=119.25

Latin Square Design

A balanced, two-way classification scheme that attempts to control or block out the effect of two or more extraneous factors by restricting randomization with respect to the row and column effects.

Order of Usage

1 2 3

A B C B C A C A B

SUBJECT