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Laboratory (high internal validity)◦ usually cheaper and quicker

◦ Better control

◦ Only appropriate if manipulations are meaningful in contrived setting

Field (high external validity)◦ Quasi experiments

◦ Test markets

◦ More generalizable

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O = observe DV, X = manipulate IV

Quasi-experimental◦ Also called pre-experimental◦ One group pretest posttest: O x O◦ One shot: x O◦ Static group:

Experimental group: x O Control group: O

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Internal◦ Are we really measuring what we think we’re

measuring?

◦ Is change in DV really due to change in IV

External◦ Are the results representative of the real world

(generalizable)?

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Problems:◦ Extraneous factors

◦ Changes in subjects

Fatigue, learning, drop-out, guessing purpose, demand effects

◦ Measurement error

◦ Inequivalent groups

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Problems:◦ Representative sample

◦ Realism

◦ Generalizability

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An experimental procedure that provides an opportunity to test a new product or a new marketing plan under realistic market conditions to measure sales or profit potential.

ESTIMATEESTIMATEOUTCOMESOUTCOMES

IDENTIFY ANDIDENTIFY ANDCORRECTCORRECT

WEAKNESSESWEAKNESSESIN PLANSIN PLANS

Population Demographic composition Lifestyle considerations Competitive situation Media coverage and isolation Self-contained trading area Secrecy

Small city Low chance of being detected Distribution is forced (guaranteed)

Cedar Rapids, Iowa Charlotte, North Carolina Columbus, Ohio Evansville, Indiana Eau Claire, Wisconsin Grand Junction. Colorado Little Rock, Arkansas Odessa-Midland, Texas Omaha, Nebraska Pittsfield, Massachusetts Tulsa, Oklahoma Wichita, Kansas Wichita Falls, Texas

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Special area in marketing Tries to adjust for problems:

◦ Overattention

◦ Store conditions

◦ Competitive environment

◦ Diffusion and awareness of product

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Often based on scanner data Prices vary Compare price to sales

◦ Answers:

◦ How price sensitive are customers?

◦ What is the optimal price?

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Experimental research is filled with tradeoffs between internal and external validity.

Making something more believable or more realistic may not be in your best interest.

Despite its limitations, experimental research is at least as valid as field research.

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