EXPERIMENTAL RESEARCH DESIGNS

SLIDE 4-1

What is an Experiment?
An experiment is generally used to

infer a causality. In an experiment, a

researcher actively manipulates one
or more causal variables and
measures their effects on the
dependent variable of interest.

RESEARCH

SLIDE 4-2

Necessary Conditions for Making

Causal Inferences
Concomitant variation
Time order of occurrence of variables
Absence of other possible causal factors

RESEARCH

SLIDE 4-3

Concepts Used in Experiments

Independent variables: Independent variables

are also known as explanatory variables or

treatments. The levels of these variables are
manipulated (changed) by researchers to
measure their effect on the dependent variable.
Test units: Test units are those entities on which
treatments are applied.
Dependent variables: These variables measures
the effect of treatments (independent variable) on
the test units.

RESEARCH

SLIDE 4-4

Concepts Used In Experiments

Experiment: An experiment is executed when the

researcher manipulates one or more independent

variables and measures their effect on the
dependent variables while controlling the effect of
the extraneous variables.
Extraneous variables: These are the variables
other than the independent variables which
influence the response of test units to treatments.
Examples: Store size, government policies,
temperature, food intake, geographical location, etc.

RESEARCH

SLIDE 4-5

Validity in Experimentation
Internal validity: Internal validity tries to examine

whether the observed effect on a dependent

variable is actually caused by the treatments
(independent variables) in question.
External validity: External validity refers to the
generalization of the results of an experiment.
The concern is whether the result of an
experiment can be generalized beyond the
experimental situations.

RESEARCH

SLIDE 4-6

Factors Affecting Internal Validity of

the Experiment
History
Maturation
Testing
Instrumentation
Statistical regression
Selection bias
Test unit mortality

RESEARCH

SLIDE 4-7

Factors Affecting External Validity

The environment at the time of test may be

different from the environment of the real world

where these results are to be generalized.
Population used for experimentation of the test
may not be similar to the population where the
results of the experiments are to be applied.
Results obtained in a 56 week test may not hold
in an application of 12 months.
Treatment at the time of the test may be different
from the treatment of the real world.

RESEARCH

SLIDE 4-8

Methods to Control Extraneous

Variables
Randomization
Matching
Use of experimental designs
Statistical control

RESEARCH

SLIDE 4-9

Environments of Conducting
Experiments
Laboratory

Environment - In a laboratory
experiment, the researcher conducts the
experiment
in
an
artificial
environment
constructed exclusively for the experiment.

Field Environment - The field experiment is

conducted in actual market conditions. There is

no attempt to change the real-life nature of the
environment.

RESEARCH

SLIDE 4-10

A Classification of Experimental
Designs

RESEARCH

SLIDE 4-11

Pre-experimental design
Pre-experimental designs do not make use of any randomization
procedures to control the extraneous variables. Therefore, the
internal validity of such designs is questionable.
One-shot case study:

One-group pre-testpost-test design:

O1 X O 2
Static group comparison:

Group 1 - X O1
Group 2 -

O2

RESEARCH

SLIDE 4-12

Quasi-experimental designs
In quasi-experimental design, the researcher can
control when measurements are taken and on
whom they are taken. However, this design lacks
complete control of scheduling of treatment and
also lacks the ability to randomize test units
exposure to treatments.
Time series design:

O1 O2 O 3 O 4 X O 5 O 6 O7 O 8
Contd..

RESEARCH

SLIDE 4-13

Quasi-experimental designs

RESEARCH

SLIDE 4-14

Quasi-experimental designs
Multiple time series design:

Experimental Group: O1 O2 O3 O4 X O5 O6 O7 O8
Control Group:

RESEARCH

O1 O2 O3 O4

O5 O6 O7 O8

SLIDE 4-15

True experimental designs

In true experimental designs, researchers can
randomly assign test units and treatments to an
experimental group. Here, the researcher is able to
eliminate the effect of extraneous variables from
both the experimental and control group.
Pre-testpost-test control group:

Experimental Group: R O1 X O2
Control Group: R O3
O4

RESEARCH

SLIDE 4-16

True experimental designs

Post-test only control group design:

Experimental Group: R X
Control Group: R
O2

O1

Solomon four-group design:

Experimental Group 1 :
Control Group 1:
Experimental Group 2:
Control Group 2:

RESEARCH

R
R
R
R

O1
O3

O2
O4
X O5
O6

SLIDE 4-17

Statistical designs
Statistical designs allow for statistical control and
analysis of external variables.
Completely randomized design
Randomized block design
Latin square design
Factorial design

RESEARCH

SLIDE 4-17

1. The main advantage of time series design is that it is

2.
3.
4.
5.
6.
7.

possible to control the effect of history.

Test marketing is a form of laboratory experiment.
Mortality effect is more serious in field experiment
than laboratory experiment.
Selection bias is not a problem in experiments
involving just one group.
The one group after-only design is a quasiexperimental design.
In the time series design the influence of history to
confound the result is very high.
In the completely randomized design, it is assumed
that there are no extraneous variable which could
influence the outcome.

RESEARCH

 In the randomized block design, it is assumed that

the scores on the dependent variable in each of the

block would be more or less same.
Independent variables are also called treatments.
In an experiment, the research manipulates one or
more variables to measure its effect on the
dependent variable.
Changes in the economic environment can leads to
history effect.
The interactive testing effect would not occur for a
group not subject to any treatment.
Laboratory experiments are low on internal validity
and high on external validity.