Chapter 8: Conducting Causal Research

Control

The ability to ________ other factors lead to convincing cases of causality -Rooted in science, such trials in medicine -Independent variable (IV), X, is manipulated to see if a change occurs in the dependent variable (DV) ,Y

D.

Which type of research is ideal for gathering primary data to compare attitudes toward a brand of energy drink between different ethnic groups? a. Secondary research b. Exploratory research c. Causal research d. Descriptive research

Primary Research (Three Approaches)

Exploratory Research Descriptive Research Causal Research

Controlled Test Market

(Forced Distribution) Similar in execution to the standard test market but run by an outside service in a market that guarantees distribution

Standard Test Market

-A test market in which the company sells the product through its normal distribution channels -Most like the "real thing" -market is selected that where the product is "launched" and becomes fully available to consumers -Different elements of the "marketing mix" are varied to determine the optimal scenario (price, advertising, packaging)

Online Tests

-Hybrid Lab/Field -Factors, variables are tightly controlled but the test done with "live" audiences. Can also be considered an A/B test -

A/B Testing

-Two versions of some product or service are randomly assigned to respondents -Outcome from each scenario are compared -Also called split testing...was used in the famous cola wars, the Pepsi Challenge -Also used extensively to test online programs

Simulated Test Market

-Utilizes advances in technology -Consumers recruited to participate in a simulated study, all hypothetical, no purchasing -Done digitally, online or in a contrived store -Computer algorithms to simulate different scenarios along with likely outcomes, share or preference -Virtual test markets where consumers interact with the product or shop in a virtual store

Successful A/B Tests

1. Bloomies Onboarding Flows - test the number of screens and prompts to warm up 2. UO Menu Type - test how users react to slide out menus, swipe pages, and tabs 3. MichaelsPage Layout -test how many items you have displayed on any of your pages 4. Target Promotions - test how promotions are displayed throughout your app. 5. Amazon Personalization -test how to best personalize apps. 6. Amazon Checkout Process -test the checkout process to see if it is too long or difficult to work through.

Causation

1.Consistent variation—extent to which X and Y occur together or vary together, consistently EX: In markets where advertising was present, market share went up 2.Time order—shows X occurs BEFORE Y EX: Share went up following the new advertising 3.Elimination of other explanations—elimination of factors other than X as the cause of Y EX: Marketing mix analysis to rule out price or distribution

Internal Validity

Can the results be attributed to the experimental variable and not to other factors.

External Validity

Can the results be repeated, extended to other settings and situations?

Simulated Test Market

Consumer ratings are obtained along with purchase data in a simulated store environment‒Data are fed into computer models to produce sales and market share predictions

Causal Research

Determining cause-and-effect relationships -reveals if one thing leads to another

Experiments (2 Types)

Laboratory Experiment Field Experiment

Descriptive Research

Research describing characteristics of a group or the relationships between variables.

Lab Experiment

Research investigation in which investigators create a situation with exact conditions in order to control some variables and manipulate others. -Have higher levels of internal validity

Field Experiment

Research study in a realistic situation in which one or more independent variables are manipulated by the experimenter under as carefully controlled conditions as the situation will permit. -Have higher levels of external validity

Exploratory Research

Research to gain ideas and insights to better define the problem or opportunity.

Experiments

The primary method for establishing relationships, "causality"

D.

To establish causality, what condition(s) must be met? a. There must be consistent variation between the cause and the effect. b. The time order of the cause and effect must be correct. c. Other explanations must be eliminated. d. All of these conditions must be met to establish causality

Rule

We can never truly know that we have eliminated all other possible causes of an effect.

D.

What is true about market testing (or test marketing, as it is often called)? a. It involves the use of a controlled experiment. b. It is done in a limited, carefully selected section of the marketplace. c. It is often used to predict the sales or profit outcomes of a proposed marketing action. d. All of these statements are true.

C.

What method does a researcher use to work toward establishing possible causal relationships? a. Geodemography b. Projective methods c. Experiments d. Depth interviews

D.

What type of study or experiment should be conducted when a higher degree of external validity is required? a. Laboratory b. Internal c. External d. Field

A.

What type of test market should a firm choose if it desires to test a new product by selling it through normal distribution channels? a. Standard b. Virtual c. Controlled d. Simulated

C.

When a company needs precise answers about the effects of various proposed marketing actions on important outcomes, what type of research should be used? a. Secondary research b. Descriptive research c. Causal research d. Exploratory research

A.

When is a simulated test market a good choice over other types of test markets? a. When evaluating a product extension b. When a new product is a radical departure for the manufacturer c. When it's important to test the ability to get trade and distribution support for a new product d. When a company is entering a new territory

B.

Which of the following statements about lab or field experiments is true? a. Lab experiments have relatively low degrees of internal validity. b. Field experiments involve real consumers. c. Only lab experiments involve dependent and independent variables. d. Field experiments involve creating situations with desired conditions.

Google Unskippable Labs

‒One example involved using 16 different videos with variations on pacing, sound, video orientation and other factors ‒Test looked at how ads might perform with mobile specific environments vs. desktop, or TV ‒Ads with longest view-through rates were considered most compelling 1. Super over straight captions (creative subtitles vs. text) 2. Captions on vs off 3. Horizontal preferred slightly over vertical video 4. Faster over slower paced