Tuesday, April 14, 2009

Let's Talk Research at 10am!

RESEARCH BRAINTEASER
Your client, Fido Dog Food, wants to test out its new line of dog food prior to spending $ on a full-scale product launch. As the researcher, you realize that you must conduct either an experiment or engage in a test market to determine whether or not consumers will purchase this new line of dog food.

QUESTION
What is the difference between an experiment and a test market?

56 comments:

  1. Expeirment is when one variable is manipulated and you observe the effect it has on another variable.
    Test Market- is a term that loosly refers to research involving a new product or change in product.

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  2. Hi Correne -
    An experiment is when the researcher changes or manipulates one variable to observe the effects on something else.

    As for a test market, you have 1/2 of the answer right. You are missing a big part of what makes up a test market...

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  3. looks like we have the same answer for Experiment

    Test market maybe , we gather information through the use of expeirments on a small portion of population that represents our target?

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  4. No, easier than that.

    A test market is research that involves testing a new product or change in existing advertising strategy (i.e. 4Ps) in a single market, group of markets or region.

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  5. The term “Causal Research” is a part of conducting an experiment. What is causal research? And what are the three items that causal research is dependant on?

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  6. Okay Frankie, please answer the most recent question re: causal research.

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  7. casual research is research that determines if one variable is likely to cause a change in another
    dependent on Concomitant variation
    Appropriate time and elimination of other factors

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  8. Causal research is often called experimental research. its the only kind of research that can show change in one variable cause(s) to predict change in another variable

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  9. Very good, Correne. However, the first item is "correlation".

    Give me an example of correlation.

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  10. example: A likely caused B. or to put it another way. if B occured then A must be this or that

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  11. correlation analysis is when one thing changes it changes the other variable because they are associated with each other

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  12. You got the definition down, Frankie. Can you give me a "real world" example now?

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  13. sales increase in an item that has been discounted for a week. the association between the two is lower price = more people will buy

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  14. Sorry took a call from L.A.-
    The book says Concomitant variation? An example would be finding correlations between the variables

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  15. A "real world" example of correlation is the following:

    Sales increased as advertising increased (positive correlation); Sales increased as price decreased (inverse/negative correlation).

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  16. Last question before getting into new material...

    Of the four test market types, which one would work best for Fido Dog Food and why?

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  17. The test market of use would be scanner/electronic: This would allow for constant monatering of sales increase, repeate sales and package effectivness.

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  18. maybe a simulated test environment because the company doesn't want to spend all that money on a newly release product without knowing how the consumer will react to it first

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  19. Both good ideas. I would suggest "controlled" in which you pay the retailer for shelf space to monitor sales OR "simulated" in which the consumer can buy the product, take it home with them and use it, and the engage in follow up with Fido Dog Food after a few weeks of use.

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  20. So, this week, we will talk about measurement and attitude scales. In other words, how to measure consumer’s preferences for an item? (Chapter 8 in the textbook)

    I'm assuming you've both read Chapter 8! What is measurement?

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  21. it involves measuring quantities or qualities of attributes associated with labeling people or objects or even events.

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  22. The process of assigning numbers and lables to persons objects or events with specific rules for representing quantities

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  23. Right. Measurement means assigning #s that reflect the amount of attribute possessed by persons, objects or events.

    The key with measurement is that we are measuring the attribute (i.e. age, income, preference, buying behavior, etc), and not the person, object or event.

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  24. Whenever we are measuring an item, the measurement must be reliable and valid. Now that we know what a measurement is, what is reliability?

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  25. The degree to which measures are free from randomerror and give consistant data

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  26. Right. When it comes to measuring something, we want consistent results every single time.

    Ex: If a ruler consistently measures the length of a table to be 50”, then the ruler is said to be reliable.

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  27. The other vital part of measurement is validity. When is a measurement considered valid?

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  28. This is concirned when we make sure the researcher has measured exactly what was ment to be measured

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  29. is that when they take the levels of measurements into consideration? like normal, oridnal, interval, and ratio?

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  30. You got it. Valid = Whether or not what the researcher was attempting to measure was actually measured.

    So to recap...

    Reliable = consistent results every time
    Valid = did we measure what we intended to measure

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  31. Frankie, you're skipping ahead.

    There are two types of errors associated with measurement scales. These two errors include random error and systematic error, which we talked about when we read and discussed Chapter 5.

    What do you recall about these two error types?

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  32. Systematic is internal and caused by the researchers Random can occure from an outside source

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  33. random error - change in variation from the result gathered.

    systematic error - error in the researchers execution in gathering information

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  34. Pretty good, Correne.

    Random Error: difference between sample value and true value of population. Errors can’t be eliminated; can be reduced by increasing sample size.

    Systemic Error: often called “bias”. Caused by mistakes in research design or from flaws in execution of sample design.

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  35. Very good, to you too, Frankie for remembering your research errors!

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  36. Let’s talk about “scales”. A scale is used to assign #s to attributes of a person, object or event in order to give it some numerical characteristic. Scales are used to measure consumer preference or attitude for one item over another.

    There are four categories of scales that are used in advertising research. What are these four types of scales?

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  37. Nominal scales, Ordinal scales, Interval scales,and ratio scales

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  38. nominal scale - putting data into categories that are mutually exclusive and collectively exhaustive. meaning every bit of data will fit somewhere.

    ordinal scales - maintaining the lebeling characteristics of the nominal scales.

    interval scales - thsi has the characteristics of ordinal scales plus equal intercals between points to show relative amounts.

    ratio scales - this is a reflection of intercal scales plus a meaningful zero points so that magnitudes can be compared arithemtically.

    overall they each reflect one another.

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  39. Yes.

    1. Nominal Scale: assumes that all data will fit into one category. This is the most commonly used scale in advertising.
    - Ex: Select your Gender: (1) male (2) female

    2. Ordinal Scale: used to indicate rank order
    - Ex: “Please rank the following holidays, with 1 being the most preferred and 5 being the least preferred”

    3. Interval Scale: assumes that the points on a scale are equal. Researchers use interval scales to measure how much of a trait one consumer has (or does not have) over another.

    4. Ratio Scale: used to show the actual amount of a variable.
    - Ex: Age, weight, height, distance, $ values, population, etc

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  40. Frankie, I wouldn't say each of these types of measurement scales are reflective of one another. These are four distinct types of scales that are used based on your research problem and overall objectives.

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  41. A big part of advertising research is to determine consumer preferences and attitudes toward brands.

    Since attitude is a characteristic that cannot be directly observed, how exactly do we measure consumer “attitude”?

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  42. but the book says that each one are in are done step by step and say they have similar characteristics as the one before plus added data to make it unique and stand on its own

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  43. we could ask the consumer to fill out a survey how they felt about a product or service. we can even do a focus group and get them to uncover how they feel and what they think with selective questions.

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  44. Frankie, I would have see what the book says - to be honest. Do you have a page I can refer to?

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  45. There are several ways in which to measure attitude, and we're going to look at just a few of them. (Your textbook discusses plenty more.)

    We'll start with Correne's suggestion of a "graphic rating scale". Turn to page 256, exhibit 8.5 for an example. Simply put, a graphic scale uses a graphic with two ends in which consumers indicate their preference.

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  46. I see the confusion, Frankie. You are correct these each type of measurement scale builds on the other. For example, a ratio scale has the characteristics of an interval scale plus more. However, while conducting research, we wouldn't use all four types of scales. We'd select the one that best fits our problem and objectives. Does that make more sense?

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  47. Everyone see the example on page 256?

    Another type of attitude scale is "Itemized Rating Scale" where respondents must select from limited number of ordered categories (see page 257, exh. 8.6).

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  48. We will continue our discussion of measurement and attitude scales next week following NSAC. Please read through Chapter 8 and become familiar with these different types of scales. We will have an in-class activity next week in which you will create your own measurement scales! YEAH!

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  49. RESEARCH HOMEWORK REMINDER
    NOTE: There is homework due upon your return from NSAC on April 23rd.

    - Complete Chapter 7 chapter questions 5, 10 & 11 due Thursday, April 23rd
    - Review Chapter 8 for Thursday, April 23rd
    - Answer chapter 8 questions #2, 13, 14 & 17 for Thursday, April 23rd
    - Read Chapter 12 for Tuesday, April 21st
    - Part IV of semester research project due Wednesday, April 15th
    - Mystery Shopping assignment with oral presentation due Thursday, April 23rd

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  50. I understood that each one is built on one another and yes I kind of figured that each one can be used independantly as well.

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  51. The terms are kinda melting together in these sacles, maybe we can talk about them more in class too

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  52. I agree, Correne. That's why we'll do an in-class activity for you two to create your own measurement scales so you can become more familiar versus me lecturing about them! :)

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