33:630:385 Lecture Notes - Lecture 8: Internal Validity, Causality Conditions, Test Market
18 Apr 2016
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Examining relaionships using descripive data: to see causal impact of independent variable on dependent variable, descripive data measures degree of associaion -> can only be used to make esimate/inference causality. When an independent variable is manipulated to see how it afects dependent variable. Condiions to show causality: associaion between independent and dependent variable, evidence that change in independent variable preceded change in dependent variable, absence of compeing explanaions. Laboratory experiments or field experiments: laboratory: conducted in ariicial seing away from marketplace. Gives researcher most control over experiment: field: conducted in marketplace. Test markets (ield test: geographic regions used to test viability of new product or change in product, test markets serve as treatment group, compare sales in test markets to other markets, test markets typically chosen on following criteria: Size (# of residents) should select metro area. Large enough to produce reliable results, small enough to constrain cost. Demographics want similar consumers btwn test markets and other markets.
