Week Seven

Question 1

Causal research designs are:

Answer 1

• Explanatory research. Eg. to identify causal relationships between variables, or increasing advertising spend will improve brand awareness.
• Provides highest degree of certainty.
• Quantitative. Eg. experimentation by manipulating IVs.

Question 2

What is the concept of causality?

Answer 2

Understanding a phenomenon in terms of conditional statements, such as:

• If X, then Y
• In other words, X causes Y
• But at best it can only be inferred that X is a cause of Y.

Question 3

True or false, if IVs lead to DVs, then X causes Y.

Answer 3

True.

Eg. If we increase the temp on the thermostat, then the room will get warmer.

Question 4

What are the 3 conditions for causality?

Answer 4

1. Concomitant variation. Eg. Extent to which a cause (X) and an effect (Y) occur together or vary together in the way predicted by the hypothesis under consideration.
2. Time order of occurrence of variables. Eg. X must occur either before or simultaneously with the Y. It can’t occur afterwards.
3. Absence of other probabilistic causes. Eg. The IV being investigated should be the only possible casual explanation. Hours of study and higher grades…. could there be any other explanation?

Question 5

What is extraneous variables and what does it include?

Answer 5

External events occurring at the same time as the experiment. Includes:

• Maturation. Eg. changes in the test units over time.
• Test effects. Eg. measuring the DV before the test then after the test.
• Instrumentation. Eg. Changes in the measuring instrument, observers or scores.
• Statistical regression. Eg. When test units with extreme scores move closer to the average during the course of the experiment.
• Selection bias. Eg. Improper assignment of test units to treatment conditions.
• Mortality. Eg. Loss of test units during experiment.

Question 6

Limitations of experimentation include:

Answer 6

• Time
• Cost
• Administration

Question 7

What are some criteria when looking for a rest market?

Answer 7

• Is it large enough to produce meaningful projections?
• Is it representative to the product? Eg. demographically.
• Isolated in terms of media and physical distribution?
• Normal historical development in the product class?
• Not be over-tested?

Question 8

What is test marketing?

Answer 8

An application of a controlled experiment, in limited but carefully selected parts of the marketplace called test markets. Eg. NZ for mobiles and cars.