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Full Marketing Research An Applied Orientation 6Th Edition Malhotra Solutions Manual Online PDF All Chapter
Full Marketing Research An Applied Orientation 6Th Edition Malhotra Solutions Manual Online PDF All Chapter
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CHAPTER 7
Figures
Figure 7.1 A Classification of Experimental Designs
Figure 7.2 A Concept Map for Experiments
Tables
Table 7.1 Evidence of Concomitant Variation Between Purchase of Fashion
Clothing and Education
Table 7.2 Purchase of Fashion Clothing by Income and Education
Table 7.3 Sources of Invalidity of Experimental Designs
Table 7.4 An Example of a Randomized Block Design
Table 7.5 An Example of Latin Square Design
Table 7.6 An Example of a Factorial Design
Table 7.7 Laboratory Versus Field Experiments
CHAPTER OBJECTIVES
1. Explain the concept of causality as defined in marketing research and distinguish between
the ordinary meaning and the scientific meaning of causality.
2. Define and differentiate the two types of validity: internal validity and external validity.
3. Discuss the various extraneous variables that can affect the validity of results obtained
through experimentation and explain how the researcher can control extraneous variables.
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
1
4. Describe and evaluate experimental designs and the differences among preexperimental,
true experimental, quasi-experimental, and statistical designs.
5. Compare and contrast the use of laboratory versus field experimentation and
experimental versus nonexperimental designs in marketing research.
6. Describe test marketing and its various forms: standard test market, controlled test
market, and simulated test market.
7. Understand why the internal and external validity of field experiments conducted
overseas is generally lower than in the United States.
8. Describe the ethical issues involved in conducting causal research and the role of
debriefing in addressing some of these issues.
This chapter provides an overview of causal research and experimentation. The concept of
causality and the conditions for causality are described. Internal and external validity in
experimentation are discussed in detail. A classification of experimental designs is presented and
preexperimental, true experimental, quasi-experimental, and statistical designs are described.
Comparisons between laboratory versus field experiments, and experimental versus
nonexperimental designs are made. Test marketing is presented as an application of experimental
designs.
This chapter covers the material on causal research contained in competing texts. Yet, the
treatment of experimentation is more extensive than that found in competing texts.
This chapter could be taught by focusing on the chapter objectives sequentially. Discuss the
concept of causality (Chapter Objective 1), internal and external validity (Chapter Objectives 2
and 3), preexperimental and true experimental designs (Chapter Objective 4), and experimental
versus nonexperimental designs (Chapter Objective 5). Quasi-experimental designs and
statistical designs may not be covered in detail. Test marketing could be discussed in detail
(Chapter Objective 6). The material on conducting experiments internationally (Chapter
Objective 7), ethical issues (Chapter Objective 8), and the Internet and computers could also be
covered. The concept map can be used to effectively and efficiently summarize experiments
(Figure 7.2).
1. Objectives
2. Overview
3. Concept of Causality
4. Conditions for Causality
(i) Concomitant Variation
(ii) Time Order of Occurrence of Variables
(iii) Absence of Other Possible Causal Factors
(iv) Role of Evidence
5. Definitions and Concepts
(i) Independent Variables
(ii) Test Units
(iii) Dependent Variables
(iv) Extraneous Variables
(v) Experiment
(vi) Experimental Design
6. Definition of Symbols
7. Validity in Experimentation
(i) Internal Validity
(ii) External Validity
8. Extraneous Variables
(i) History
(ii) Maturation
(iii) Testing Effects
(iv) Instrumentation
(v) Statistical Regression
(vi) Selection Bias
(vii) Mortality
9. Controlling Extraneous Variables
(i) Randomization
(ii) Matching
(iii) Statistical Control
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(iv) Design Control
10. A Classification of Experimental Designs
11. Preexperimental Designs
(i) One-Shot Case Study
(ii) One-Group Pretest-Posttest Design
(iii) Static Group Design
12. True Experimental Designs
(i) Pretest-Posttest Control Group design
(ii) Posttest-Only Control Group Design
13. Quasi-Experimental Designs
(i) Time Series Design
(ii) Multiple Time Series Design
14. Statistical Designs
(i) Randomized Block Design
(ii) Latin Square Design
(iii) Factorial Design
15. Laboratory versus Field Experiments
16. Experimental versus Nonexperimental Designs
17. Limitations of Experimentation
(i) Time
(ii) Cost
(iii) Administration
18. Application: Test Marketing
(i) Standard Test Market
(ii) Controlled Test Market
(iii) Simulated Test Market
19. International Marketing Research
20. Ethics in Marketing Research
21. Summary
22. Key Terms and Concepts
23. Suggested Cases, Video Cases, and HBS Cases
24. Live Research: Conducting a Marketing Research Project
25. Acronyms
26. Exercises
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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27. Internet and Computer Exercises
28. Activities
TEACHING SUGGESTIONS
Chapter Objective 1
● Discuss the concept of causality as used in marketing.
You may want to begin the class by asking a few students what the term ‘causality’
means and writing components of their definitions on the board.
Afterwards, be sure to stress to the students that marketing effects are caused by multiple
variables and the relationships tend to be probabilistic. As such, it is not possible to
conclusively prove causality. Thus, we can only infer a cause-effect relationship between
the variables.
▪ See Table 7.1 and Table 7.2 for examples of concomitant variation.
Thus, the first example in the text, X O1 O2, indicates a treatment was given to a
sample and measurements at two different points in time were made.
▪ See Question 1.
Chapter Objective 2
● Define validity and describe the difference between internal and external validity.
Because of the conceptual difficulty in understanding validity, some examples that depict
a research design lacking one of the two types of validity would be instructive. For
example, if we hypothesize that selling through national chains will increase profits, we
must hold all other causes of increased profits constant in order to conclude internal
validity. External validity can be seen in a study that randomly selects stores from all
markets in which a national chain operates. Assuming that the study takes into account all
realistic factors, any findings that hold for all these markets will generalize to all stores in
the national chain.
▪ See Question 2.
Chapter Objective 3
● List some of the extraneous variables that affect validity.
Chapter Objective 4
● Discuss the differences in the types of experimental designs.
Figure 7.1 can be used here to organize your discussion on experimental designs.
Note that preexperimental designs include the one-shot case study, the one-group pretest-
posttest design, and the static group design. Stress that the salient feature of these designs
is that they do not employ randomization procedures to control for extraneous factors.
For example, in the one-group pretest-posttest design, an observation on attitudes toward
the brand is taken before and after watching a commercial, but randomization is not used
in selecting observers, thus, the results cannot be extended to the population as a whole.
● List the significant features of a true experimental design and provide examples.
It will prove instructive to use a running example in explaining these designs. A standard
example is to use advertising research in the measurement of consumer attitudes toward a
commercial or the brand being advertised.
Advantages:
1. The effects of more than one independent variable can be measured.
2. Specific extraneous variables can be statistically controlled.
3. Economical designs can be formulated when each test unit is measured more than
once.
Examples of a randomized block design, Latin Square design, and Factorial design can be
constructed for demonstration purposes.
▪ See Table 7.4, Table 7.5, and Table 7.6
Chapter Objective 5
● Start a class discussion on whether laboratory or field experiments are more useful in
marketing research.
Begin this discussion by simply asking students which form of experimentation is better.
You may want to note that laboratory experiments make up the bulk of consumer
research because of their ability to control extraneous variables and their relative
efficiency in gathering data. However, for certain studies, field experiments are used. For
example, Coca-Cola counts the shelf space it and its competitors receive in local grocery
stores when promotional variables are manipulated. Thus, each type of experimentation
has its role to play in marketing research, but because causality cannot be inferred from
field experiments, laboratory experiments predominate.
▪ See Table 7.7 for a summary of laboratory vs. field experimentation.
● Discuss why nonexperimental designs are limited for inferring cause-effect relationships.
Mention that descriptive studies are sometimes used to infer causality, but this may not
be appropriate. In descriptive studies, prior equivalence of the groups with respect to both
the independent and dependent variables is difficult to establish, as is time order of
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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occurrence of the variables. Finally, it offers little control in eliminating other extraneous
factors.
Chapter Objective 6
● Define and classify test marketing.
Chapter Objective 7
● Examine the difficulties involved with international experiments.
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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It is difficult to control for the time order of occurrence of variables and it is difficult to
control for the absence of other possible causal factors, two of the necessary conditions
for causality in an experiment.
o Control of extraneous variables is particularly problematic.
o It may not be possible to address this problem by adopting the most appropriate
experimental design as environmental constraints may make that design
infeasible.
o The internal and external validity of field experiments conducted overseas is
generally lower than it is in the United States.
Chapter Objective 8
● Discuss the ethical responsibilities resulting from disguised experiments.
To complement the Internet, microcomputers and mainframe software can be used in the
design and analysis of experiments. The comprehensive statistical-analysis software
packages SAS and Minitab can be used to design experiments.
ACTIVE RESEARCH
It should be noted that a variety of answers are appropriate. The ones given here are merely
illustrative. DM denotes decision maker and MR denotes marketing researcher.
DM: FTC
To ensure the smooth operation of our free market system, the Federal Trade
Commission (FTC) enforces federal consumer protection laws that prevent fraud,
deception and unfair business practices. The Commission also enforces federal antitrust
laws that prohibit anticompetitive mergers and other business practices that restrict
competition and harm consumers. Whether combating telemarketing fraud, Internet
scams or price-fixing schemes, the FTC’s primary mission is to protect consumers.
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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o Information overflow, tough for customers to differentiate noise and useful
information.
o Information flow cannot be controlled or traced. This can lead to
misrepresentation of information, fraud etc.
o Dumping of products especially from foreign countries (web based selling of
drugs by Canadian and Indian companies)
o Increased possibility of collusion between companies
MR: FTC
The conditions necessary to conclude such causality are:
1. Concomitant variation- the information available has increased with increased
consumer use.
2. Time Order- Increased information lags or concurs with increased information
use.
3. Absence of other possible causes
EXPERIENTIAL LEARNING
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1. Students should be encouraged to visit www.bestbuys.com and identify the relevant
information.
2. Students should be encouraged to search the Internet and identify the relevant
information on consumers’ price sensitivity for digital cameras.
3. A factorial design is appropriate. The price of digital cameras could be varied and
consumers’ willingness to buy measured. It would be important to control for income
and digital camera usage.
4. It is likely that the market is segmented with respect to price sensitivity. Different
prices can be charged to the different segments with some differentiation in the
cameras offered.
It should be noted that a variety of answers are appropriate. The ones given here are merely
illustrative.
1. It would be useful to conduct exploratory research in form of secondary data analysis and
focus groups followed by causal research in the form of an experiment.
2. A lot of secondary data about apparel industry is available from online as well as
traditional third party databases. This can be used initially to gather information about the
success of private labels and in-house brands. The focus groups are helpful in gaining
further understanding of the conclusions drawn from the analysis of secondary data,
understanding consumer priorities, perceptions and preferences. The specific causal
design that is recommended is a factorial design. The factor, brand name can be varied at
three levels: Levi’s, Gap, and Arizona. Respondents can be randomly assigned to one of
these brands and asked to express preference for the brand rate its power. Current usage
of these brands should be controlled.
3. The causal design, as specified, will provide a direct relative measure of the power of the
three brands when the mean levels are compared.
1. He should introduce another brand of lower priced jeans and sell Levi’s through discount
stores like Wal-Mart and Target.
2. Pricing appears to be one of the reasons why Levi’s is loosing the battle for market share.
It would be a good idea to launch a cheaper line of jeans to appeal to the cost conscious
market segment. To reach the new target segment, the company would want to increase
advertising spending in targeted marketing efforts. The new line of jeans should be
distributed through different channels than that of the existing high priced segment. This
will ensure the necessary reach.
1. The posttest-only control group design should be used. A sample of respondents would
be selected at random. The sample would be randomly split, with half the subjects
forming the experimental group and the other half constituting the control group. Only
the respondents in the experimental group would be exposed to the TV program
containing the test (Sears) commercial. Then, a questionnaire would be administered to
both groups to obtain posttest measures on attitudes toward the department store (Sears).
The difference in the attitudes of the experimental group and the control group would be
used as a measure of the effectiveness of the test commercial.
2. Only causal designs are truly appropriate for inferring cause-and-effect relationships.
Although descriptive survey data are often used to provide evidence of “causal”
relationships, these studies do not meet all the conditions required for causality. Also,
descriptive research offers little control over other possible causal factors.
Descriptive research constitutes the most popular research design in marketing research,
and we do not want to imply that it should never be used to examine causal relationships.
Indeed, some authors have suggested procedures for drawing causal inferences from
descriptive (nonexperimental) data. However given the limitations of descriptive
research, extreme caution should be exercised when using it for examining causal
relationships.
EXERCISES
Questions
1. There are three requirements or conditions that must be satisfied before a causal
relationship can be inferred. The three conditions are:
(a) Concomitant variation of the two variables.
(b) Time order of occurrence of variables.
(c) Elimination of other possible causal factors.
2. The difference between internal and external validity is that internal validity is concerned
with the question of whether the observed effects on the dependent variable have been
caused by variables other than the treatment, and control of extraneous variables is
necessary for establishing internal validity. External validity, on the other hand, is
01 02 03 04 05 X 06 07 08 09 010
This design is used in cases where the researcher lacks control over the scheduling of the
treatment and the ability to randomly expose test units to the treatment but can control
when measurements are taken and on whom they are taken.
8. A multiple time series design is different from the basic time series in that a multiple time
series design has an additional group of test units added to serve as a control group.
9. The advantages statistical designs have over basic designs are:
(a) In the case of basic designs, the effects of only one independent variable or
treatment can be measured while in case of a statistical design, the effects of more
than one independent variable can be measured.
(b) In the case of statistical designs, specific extraneous variables can be statistically
controlled.
Problems
3. (a) There is a tendency towards concomitant variation in the data, as can be seen in
computing percentages.
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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Product Use Income
High Medium Low
High 40 20 16
Medium 35 46 24
Low 25 34 60
TOTAL 100 100 100
Role Playing
Q1. You are a marketing research manager for the Coca-Cola Company. The company would
like to determine whether it should increase, decrease, or maintain the current level of
advertising dollars spent on Coke Classic. Design a field experiment to address this issue.
A1. One of several designs can be used for this field experiment. A pretest-posttest control
group design is outlined below:
(a) Select three sets of test markets with similar demographic profiles, competitive
environments and sales volume of Coke Classic.
(b) Randomly increase ad budgets in one set of markets, decrease them in a second
set and maintain them in the third set of markets.
(c) Track sales volumes for three months in each set of markets.
(d) Analyze the sales results to determine differences in performance.
Q2. What potential difficulties do you see in conducting the experiment just described? What
assistance would you require from the Coca-Cola management to overcome these
difficulties?
A2. Potential difficulties include access to sales data, selecting three similar markets to test,
changing competitive dynamics and objections from bottlers in the test market where ad
expenditures will decrease.
Management can assist by ensuring corporate compliance for gathering data, allocating
the necessary funds, pacifying affected bottlers.
Fieldwork
Q1. Select two different perfume advertisements for any brand of perfume. Design and
conduct an experiment to determine which ad is more effective. Use a student sample
with 10 students being exposed to each ad (treatment condition). Develop your own
measures of advertising effectiveness in this context.
Group Discussion
A1. Issues which can be discussed include the role of inference in drawing conclusions, the
difficulty of isolating all possible sources of variation in social science experimentation,
the historic value of experimentation in deriving theories and inferring relationships, and
the nature or definition of science, (i.e., is science only limited to proofs which account
for all sources of variation?).
Note: Answers to the Running Case on Dell are provided in the case solutions
I'd got home pretty late, but the alarm clock went off at six, as usual,
on Monday morning. It's at this time of day that I envy my city-
dwelling brothers who can get up an hour later and reach their
offices at the same time I do. Mae and I had bought a house in High
Tor in preparation for the baby, who was scheduled to be born in late
November. ("Beautiful timing," our tax accountant once said, thinking
of the exemption which would be good for the entire year.)
I rescued the dew-soaked New York Times from the lawn. Its main
headline, across four columns, said:
ALIENS KEEP PREACHER FROM PULPIT,
CITING VILLAGE'S SUNDAY WORK BAN
I'd dictated my story and turned the phone over to Stew to elaborate
on it. Riddie came over carrying two drinks. She handed one to me.
"It's not weak this time," she said. "I figured you could use it."
"Thanks," I said, taking a good swallow.
"Well, Sam," she said. "Is this a story or isn't it? Do you think it'll
fracture them in France?"
"Baby," I told her, "you're too far out. This will lay them low in Little
Rock!"
8 (JULY 29, TUES.)
Scientists have reached general agreement in recognizing that
mankind is one: that all men belong to the same species, Homo
sapiens.
—UNESCO Statement on Race, 1950
We'd already had the highlights of the Mount Pelley story from the
local wire service but it had left a number of questions unanswered. I
looked in the stringer book to see who we had in Mississippi. To my
surprise I found that we had a Mr. Elbert Patterson right in Mount
Pelley. I sent him a wire asking for at least a thousand words, with
good color and quotes. His story was on my desk in less than two
hours. Here it is:
Mount Pelley, Miss., July 29.—The bus driver said,
"Move to the back of the bus." When the Negro
passenger failed to obey, the driver shouted at him:
"That's a white man's seat you're in, nigger. Get back
where you belong or I'll throw you off."
The Negro, a neatly dressed man of about thirty,
carrying a briefcase, replied quietly, "This is an
interstate bus. Under Federal law I have a right to sit
where I please."
Eleven other passengers were on the bus, which was
due to pass through this town on its way to Biloxi. Six
were whites. The other five Negroes sat without
objection in the rear section, traditionally reserved in
this state for "colored."
The Negro man who refused to move was sitting alone
in a double seat three rows back from the door. He
turned and looked out the window.
His attitude infuriated the driver, Merle Cagle, who
pulled the bus to the side of the road, slammed on the
brakes and strode down the aisle.
"I'll give you one last chance, black boy," Cagle said.
"Move back or get off."
There is confusion among the other passengers who
reported this conversation today as to whether the
Negro replied, "Don't touch me" or "You'll be sorry."
A great deal of confusion surrounds the ensuing
incidents. The bus driver claimed the Negro passenger
hit him with both fists and kicked him. The white
passengers said the Negro man hit the bus driver with
his briefcase, which they presumed contained
something heavy, using it like a club. The Negro
passengers said the lone Negro man sat still, making
no effort to defend himself.
Whatever happened, Cagle was severely cut and
bruised on his hands. In addition, the big toe of his
right foot was broken, a hospital report said late today.
Cagle went back to the driver's seat and brought the
bus here. He parked it in front of the office of Sheriff
Ellis Grout, whose name became nationally known
several years ago in connection with the fatal beating
of a 13-year-old Negro boy who was said to have
"sassed" a white woman. Grout had refused to arrest
or question the two white men who boasted that they
had administered the fatal beating, saying they were
just big-mouths "trying to take credit" for the crime.
Grout, an admitted Kleagle in the Ku Klux Klan and a
leader in the local White Citizens movement, was
sitting in front of his office in a chair tipped back
against the wall when the bus stopped.
Cagle jumped out and pointed to the Negro man sitting
at the front of the bus. "I got somebody for your jail,
Sheriff," Cagle said.
Grout asked a few questions, then said through the
bus window: "You must be one of them northern
niggers. Well, this ain't the north, so suppose you just
come out of that bus."
When the Negro passenger gave no sign that he had
heard, Grout went into the bus, drawing his pistol.
"I gave you an order, nigger," he said. "Get your black
ass up off that seat."
When again there was no reply, Grout, using his pistol
as a club, brought it down toward the man's head.
Here again eyewitness accounts differ. Some say the
Negro raised his briefcase and the gun hit it, going off.
Others say the Negro did not move at all and that the
gun went off as the Sheriff was bringing it down to club
him.
What is known is that the bullet ricocheted off
something and struck Grout in the left shoulder.
Grout staggered out of the bus, bleeding profusely and
shouting that he'd been shot. A crowd gathered
quickly.
It became a mob. Somebody shouted, "That nigger
shot the Sheriff!"
The mob of whites surrounded the bus. The white
passengers got off. The Negro passengers, frightened,
huddled in the rear, with the exception of the one
Negro man who remained in his seat. He seemed
utterly calm and some said he smiled slightly.
The mob started to throw rocks at the bus. Soon all the
safety plate windows were spiderwebbed and it
became difficult to see inside.
Then someone shouted, "Let's get him!" And there was
a surge toward the door of the bus.
But no one went in. Some said no one was able to get
in—that some sort of invisible shield hurled back
anyone who mounted past the first step.
The frustrated, howling mob, seemingly in a lynching
mood, raged around the bus for half an hour until they
were dispersed by the arrival of the state police.
Cagle, the driver, was located and, with the state police
escorting him, he drove the bus to Biloxi.
There the Negro man was questioned and finally
released. He gave his name as Brown. He went to the
home of the Rev. James Evander, a prominent Negro
clergyman, to spend the night.
Cagle was reprimanded by the bus company, which
said the Negro man had been entirely within his rights.
A company spokesman said he did not know at the
moment what it planned to do about the damage to its
bus.
Sheriff Grout was reported to be in fair condition in the
hospital.
I made only minor changes in the story before I sent it on to London,
under a byline. I don't know what color Mr. Patterson, our Mount
Pelley stringer, is. It isn't one of the questions we ask at World Wide.
I suppose he'd have to be white in a place like that. But I'm sure Mr.
Brown would have been glad to know he existed, to help balance
Sheriff Grout.