SectionA_Group8_Nilabha Bhattacharya(13PGP120) : Session 4


What is an Experiment?

An experiment is a procedure in which a company manipulates one or more independent or cause variable and collects data on the dependent or effect variable while controlling for other variables that may influence the dependent variable

Experiment Research

Manipulates the independent variable or variables before measuring the effect on the dependent variable

Eg: The effect of price changes on sales volume of a particular product can be examined by actually varying the price of the product.

The very basis of experimental research lies in the manipulation of independent variables

Laboratory vs. Field Experiments

A laboratory experiment is a research study conducted in a contrived setting in which the effect of all, or nearly all, influential but irrelevant independent variables is kept to a minimum

A field experiment is a research study conducted in a natural setting in which the experimenter manipulates one or more independent variables under conditions controlled as carefully as the situation will permit

Threats to Validity

1)      Internal to the experiment

2)      External — The relation of the experiment to real life

Threats to Internal Validity

  • History – external events
  •  Maturation – physiological or psychological changes that occur over time
  •  Pretesting – Early responses impact later responses
  •  Instrument Variation – questionairre changes
  •  Selection – groups differ on characteristics
  •  Mortality – participants drop put

Threats to External Validity

  • External validity of experimental results relates to their generalizability
  • The various internal validity threats also indirectly affect external validity
  • Biases that stand in the way of generalizing experimental results:

–         Reactive bias

–         Pretest-manipulation interaction bias

–         Non-representative-sample bias

Circumstances under which various validity threats may be serious


Hyundai India’s Experiment

  • Hyundai wanted to test and increase its brand awareness in rural India
  • Hyundai attempted to identify and establish relationships with village leaders

              The leaders are the only ones offered a test drive of the vehicle

              A van with a video screen is brought to the village

  • Advertisements are shown to the assembled villagers via the vans’ screens
  • In some cases, the leaders take this opportunity to announce they have decided to purchase the vehicle
  • These types of field experiments are not conventional field experiments, they are intended to gauge the effectiveness of a novel marketing technique

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