Business

Research Methods

Experimental Research
 Experiment

• A research investigation in which conditions are

controlled
• One independent variable is manipulated
(sometimes more than one)
• Its effect on a dependent variable is measured
• To test a hypothesis
 Nature of experiments

• Purpose: Control the research situation so

that causal relation ship among variables can
be evaluated
• E.g. –impact of training on performance
• Impact of store atmospherics on the sales / footfall
• Impact of sales promotion on sales
 Why experimental studies
• Survey/ observation method might not result
truthful result
• It may not be socially desirable to the
respondents to admit
• Unwilling to provide truthful response
• Interviewers bias, error in questionnaire,
misunderstanding of the question and so on
might cause errors
 A Classification of Experimental Designs
Experimental Designs

Pre-experimental Quasi
True Statistical
Experimental
Experimental

Pretest-Posttest Randomized
One-Shot Case
Control Group Time Series Blocks
Study
Posttest: Only Latin Square
One Group
Pretest-Posttest Control Group Multiple Time
Series
Solomon Four- Factorial
Static Group
Group Design

These designs are discussed while dealing research design . Read the text 273 – 287
 Four Basic Issues of Experimental Design

• 1.Manipulation of the Independent Variable

– Independent variable as Classificatory Vs. continuous variables
– Experimental and control groups
– Treatment levels- knowing what is enough
– More than one independent variable-( e.g. increase ads and price reduction
together)

• 2. Selection & Measurement of Dependent ( criterion) Variable

– For a given independent variable, chances of many dependent variable
– Time span with in which dependent variable should be measured &
– Depends on Management Decision and Research Question
 Four Basic Issues of Experimental Design
• 3. Selection & Assignment of Subjects (or other Test Units )
– Test units : are the respondents
– Constant (systematic )/and random sampling error –so random assignment
– Randomization – control by chance i.e. groups are identical except the
treatment
– Matching –matching elements on pertinent characteristics
– Repeat measures- using the same subjects to avoid subjects difference
• 4.Control Over Extraneous Variables
– Constant experimental error –systematic error
– Extraneous variable- must be controlled or eliminated
– Demand characteristics – designing experiment that gives hint to subjects
about hypothesis – experimenters bias – guinea pig effect/ Hawthorne effect
– Establishing control ( or constancy) on major external factors – eg head and
shoulder shampoo test experiment- no identification , order presentation &
counter balancing, blinding
– Problems controlling extraneous variables – due to competitors, management
etc.,
 Fundamental questions in experimentation

• Basic vs. factorial experimental design

– Basic experimental design-single independent variable
is manipulated to measure impact on single dependent
variable
– Factorial experimental design -Simultaneous change of
two or more independent variables –measuring
interaction of 2 or more independent variables to
measure sophisticated dependent variable
– Impact of ad and price on sales
 Field Vs. Laboratory Experiment
Laboratory Experiment Field Experiment

Artificial-Low Realism Natural-High Realism

Few Extraneous Many Extraneous

Variables Variables
High control Low control
Low Cost High Cost

Short Duration Long Duration

Subjects Aware of Subjects Unaware of
Participation Participation
Issues of experimental validity
 Experiment Validity
Experiments are judged by two measure –internal and external
validity
When does an Experiment have Validity?
Internal Validity ( cause &effect relationship)– indicates whether
the experimental treatment was the sole cause of changes in a
dependent variable
Did the manipulation do what it was supposed to do?
If the results are confounded by extraneous factors
concluding the relationship between IV & DV dificult
External validity-extent to which the results of the experiment are
applicable in the real world
 Factors Influencing Internal Validity
• History- specific event in environment occurring between first and second
measurement & which is beyond the control of experimenter and affect the
validity of experiment-lock out or strike in organization, fall in stock market ,
change in economic condition
– Cohort effect is special case of history effect . Change in dependent variable occurs as one group
experience different history in the environment
• Maturation- effect on result due to changes in the subjects over time
• Function of time. s subjects may feel hungry, bored, tired, grow old or more experienced
• Eg. selling skill training for long period

• Testing (pretesting effect) – happens in pretest and post test design

• Exposure to pre test might sensitize respondents to respond differently than if they or not exposed

• Instrumentation- effect on result an experiment caused by change the

measurement instrument- questionnaire/ test
• Change in wording, interviewer or change in procedure to measure dependent variable

• Selection- sample selection error, differential selection of respondents for

comparison groups
• Mortality- sample attrition when more subjects withdraw from experiment ( from
experiment group) before completion& thus affecting the validity of the
experiment
• Predicting employee turn over project
• Completion of training and closer supervision
 External validity
• Quality of being able to generalize the result to
the external environment/ population
• E.g. generalizing result of simulated experiment to real world
of retail
• Generalization of test commercial result on actual ads
• Students Surrogates- students sample may not
provide an accurate prediction of other
populations
• Trade offs- trade off internal validity for external
validity- field experiment have less internal validity
but greater external validity
• You can not create experience but you must undergo it
–Albert Camus
How can Internal Validity Increase?
Increasing Internal Validity
• Control group

• Random assignment

• Pretesting and posttesting

• Posttest only