Deck 8: Causal Research

Question 1

Is it possible to establish that one thing causes another Why or why not

Answer 1

Evidences to establish that one variable "causes" another
Causality refers to the concept of one variable causes another. Scientists can never prove that one variable causes another for sure. However, certain conditions need to be fulfilled to get some idea that one variable can lead to another.
The several types of evidences that are required to establish that one variable causes another are given below:
1. There should be a consistent variation between the cause and the effect. Any inconsistency could lead to a doubt on causation.
2. The time order of the cause and effect between the two variables must be correct.
3. Other explanations should be removed. In order to fully establish causality, the researcher should be able to remove all the other causes for the outcome variable.

Question 2

Schedule an interview with the marketing manager of a consumer products company. In the interview, discuss the use of test marketing by the firm. Attempt to find answers to the following questions: How important is test marketing in the firm's product-development process What does your contact see as the advantages and disadvantages of various methods of test marketing Have successful test-marketing episodes always led to successful product introductions for the firm What does your contact perceive as the most promising avenue for future development of test-marketing procedures
Write a report of your interview, highlighting information that you obtained that was not discussed in the text or that seems at odds with the textbook discussion.

Answer 2

Below is the report of the interview with the marketing manager.
1. Test marketing is very important to understand whether the consumers like the product and its features when they are actually released into the market.
2. Unlike the system shown in this book where the product passes through different types of test marketing, companies generally choose a single test market. Companies with huge resources can only progress their products through different kinds of test marketing.
3. According to the interviewee, standard and controlled test marketing has the main advantage of familiarity with the consumers being tested. However, he opined that the product test marketed in a standard or controlled test market might not work well in other markets where the company currently does not have operations when it is released. He opined that stimulated test marketing is the ultimate form of test marketing as it can get information on markets where the customer does not even has operations. But he said that the main disadvantage of stimulated test marketing is the requirement of outstanding expertise on the part of the researcher.
4. Successful test-marketing will not always lead to successful product introductions for a firm. Many products that do well during test marketing fail in the market due to many factors that could not be tested well in test marketing like variances between one market segment and the others.
5. According to the manager I interviewed, the results of test marketing could be improved through better involvement of the actual managers rather than delegating it to subordinates. The marketing manager opined that a proper mixture of ethnography during the testing phase could lead to better test marketing results in the future.

Question 3

What is an experiment

Answer 3

An experiment is a type of marketing research method in which an act or a test is conducted. It is done in order to understand the consumer behavior, market trend. It involves conducting experiment in a controlled conditions and then knowing the consumer behavior.
For example: An experiment carried out on two groups of consumer to see their reaction to the advertisement which was shown to them. This further helps in analysis of the role played by advertisement in the sale of the product, how effective it was.
Experimentation generally involves the following:
1. Experimental Subjects- Usually experiment involves human beings as the participants. Subjects are usually divided into two or more groups called as the focus group.
2. Conditions- Conditions are in tight control of the tester and usually manipulated. It is generally known as the independent variable.3. Effects- These are the results which are known as the dependent variables. Results are fixed and cannot be changed. In order to change the results, independent variables has to be changed.

Question 4

What is the difference between a lab study and a field study

Question 5

What is the difference between internal validity and external validity Which form of validity is more important

Question 6

What is market testing What are the three basic types of test markets

Question 7

Under what conditions is a standard test market a better choice than either simulated or controlled test markets

Question 8

For each of the situations described below, which type of research is most appropriate for collecting primary data Why
a. Frank's Flies is a fishing lure manufacturer. Frank's management has decided to enter the lucrative market for trout flies, an area in which the company has little experience. The fly development department has decided that it needs more information concerning trout fishing in general before it can begin designing the new product line.
b. The management team at Aardvark Audio strongly suspects that the company's current advertising campaign is not achieving its stated goal of raising consumer awareness of the company's name to a 75% recognition level in the target market. The team has decided to commission a research project to test the effectiveness of the various ads in the current campaign.
c. Ace Fertilizer Company is trying to decide where advertisements for its vegetable garden fertilizers should be placed. Management is contemplating a research project to determine which publications home gardeners read on a regular basis.
d. A high-speed copier company is introducing a new desktop model, and the vice president of communications is choosing between two advertising campaigns for this product. He prefers advertising campaign "A" because he believes it will generate more sales than would the second campaign, "B."
e. A local mail-order firm is concerned with improving its service. In particular, management wants to assess if customers are dissatisfied with current service and, if so, why they are dissatisfied.
f. The Write-It Company manufactures fountain pens, ballpoint pens, soft-tip pens, and mechanical pencils. Typically, these products are sold through small and large chains, drugstores, and grocery stores. The company has recently diversified into the manufacture of disposable cigarette lighters. The plan is to distribute this product through drugstores and grocery stores because managers believe that its target market of low- and middle-income consumers would use these outlets. The managers decided to conduct research to determine if this is the case.

Question 9

What are the three basic types of research used to collect primary data What is the basic purpose of each

Question 10

Consider the following statement: "The increase in sales is due to the new sales personnel recruited over the last several years. Sales of the new salespeople are up substantially, while sales for longer-term salespeople have not increased."
a. Identify the causal factor (X) and the effect factor (Y) in the above statement.
b. Discuss the evidence that would be necessary to establish that factor (X) caused factor (Y) in the above statement.

Question 11

Why is exploratory research considered to be a basic type of primary data research

Question 12

The research department of the company in Problem investigated the change in sales for each of the company's salespeople. Using criteria supplied by management, the department categorized all territory sales changes as "increased substantially," "increased marginally," or "no increase." Consider the following table, in which 260 sales personnel have been classified as old or new.
a. Does this table provide eta deuce of consistent variation Justify your answer.
b. What conclusions can be drawn about the relationship between X and Y on the basis of the table
Problem
Consider the following statement: "The increase in sales is due to the new sales personnel recruited over the last several years. Sales of the new salespeople are up substantially, while sales for longer-term salespeople have not increased."
a. Identify the causal factor (X) and the effect factor (Y) in the above statement.
b. Discuss the evidence that would be necessary to establish that factor (X) caused factor (Y) in the above statement.

Question 13

What is the general sequence in which the three basic types of research are employed

Question 14

The product development team at Busby's Briquettes has been working on several modifications of Busby's highly successful line of charcoal briquettes. The most promising development is a new briquette that provides a unique smoky flavor to grilled meat. Management, based on favorable feedback from a few employees who have tested the product in their homes, feels that the new briquette has the potential to become a major seller.
At a recent strategy session, the vice president of marketing suggested a test-marketing program before committing to an introduction of the new briquette. He pointed out that a test market would be a good way to evaluate the effectiveness of two alternative advertising and promotional campaigns that have been proposed by Busby's ad agency. He feels that effectiveness should be evaluated in terms of the trial- and repeat-purchasing behavior engendered by each program. He also wants to gauge Busby's current distributors' acceptance of the new product.
The CEO of Busby's, however, is not very enthusiastic about the idea of test marketing. She pointed out several of her concerns, among them the fact that Busby's competitors could easily duplicate the new briquette, the fact that the company is nearing the limit of budgeted costs for developing the new briquette, and the fact that the seasonal nature of briquette sales makes it imperative to reach a "go-no go" decision on the new briquette by mid-December, only four months away.
The director of marketing research stated that she felt a test market could be devised that would satisfy both the vice president of marketing and the CEO. She was instructed to submit a preliminary proposal at the next strategy session.
a. What information should be obtained from the test market in order to satisfy the vice president of marketing
b. Under what constraints must the test-marketing plan operate in order to satisfy the CEO
c. Given your answers to (a) and (b), what method of test marketing should the director recommend Why