Qing Liu

Associate Professor of Marketing

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 Research Design Types
Methods Characteristics Useful for
Exploratory case studies, flexible, discovery of
focus groups, versatile, but ideas and insights
qualitative research not conclusive

Descriptive surveys, preplanned, describe market

panels, structured, characteristics
scanner data conclusive or functions

Causal experiments manipulation determine cause

and control and effect
of variables relationships
Causal Research Questions
Gap merchandising manager asks:
Will we improve profitability if we increase price by
10%?

$
$59.99 $65.99
Causal Research Questions
Campbells soup brand manager asks:
Will replacing our current ad with a new ad lead to
an increase in consumer preference for Campbells?

Fresh is Best! Warms the Kid in You

Causal Research Questions
Safeway sales manager asks:
Will decreasing Tides shelf space by 25% significantly
lower its sales?
Causal Relationship?

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 Pepsi: Buy one & get one free promotion leads to increase in sales?

Season Promotion (X) Sales (Y)

Spring No promotion $ 500

Summer Buy one & Get one free $ 1,500

What is an Experiment?
A research approach in which one variable is
manipulated and the effect on another variable is
observed.
Independent (Treatment) [X]: variables you
manipulate in the experiment such as price,
packaging, or product features
Dependent (Outcome) [Y or O]: variables you do
not directly control, but measure such as choices or
attitudes
Test: Group that is exposed to the manipulation of
the independent treatment variable
Control: Group of individuals whose outcomes are
observed but who do not receive the treatment
The Experimental Process
1. Select levels of independent variable (X)
2. Each different level becomes a different
condition (e.g. different ad, different price level)
3. Assign participants to different conditions
(randomization or matching)
4. Measure dependent variable (Y) on all
participants
5. Look for differences across conditions
6. If differences exist, infer a causal relationship
between X and Y.
Between or Within Subjects

X One-group Pretest/Posttest Design

O1 Treatment O2

X
Treatment
O1
After only with Control Group

O2
Control Group Designs
Random Assignment

After Only with Control Group

R X O1
R O2

Before and After with Control Group

R O1 X O2
R O3 O4
 BehaviorScan Ad Testing
The Only Split Cable Advertising Testing System In The Country

Invisibly deliver To distinct household groups

different TV commercials in the same city
Broadcast
Ad

IRI
Cut-In
Ad
We are seeing more virtual tests
 Virtual Soft Drink Aisle

Advanced Simulations 2004

Fountain Area in a Convenience Store
Validity in Experimentation

Internal External

Can competing explanations Are the results generalizable

for the results be ruled-out? to the real world?

Laboratory Study Field Study

Discussion
Experimental Research Example:
Behavioral Economics
Reaction to deficiencies of conventional economics
The study of how real people actually make choices
Draws insights from both economics and psychology

Seminar by Dan Ariely