Exam 8: Primary Data Collection: Experimentation and Test Markets

__________ refers to the intervention between the beginning and end of an experiment, involving outside variables or events that might change the dependent variable.

_____________ occur(s) when buyers from outside the test area come into the area to purchase the product being tested, thereby distorting the results of the experiment.

An analysis of company financial records shows that in every year that the company increased its advertising expenditures, sales increased. What can you say about the relationship between the two factors/variables?

To demonstrate that an increase in advertising causes a sales increase, one must be able to show that the increase in advertising occurred before the increase in sales. Which of the preconditions for causation is being illustrated?

The first step in a test market study is to select a basic approach.

A market research project is engaged to determine whether price points for Apple's iPads should change with the release of the new model. The researcher decides to expose control groups to three separate prices and records the sales made at each of those price points. Which variable in this scenario is the treatment variable?

If experimental test groups for a reading enhancement program are standard Kindergarteners at a typical public school, but the program is designed for students learning English as a second language, what issue might you take with the experiment?

Pre-experimental designs offer little or no control over extraneous factors.

Test marketing is a common form of experimentation used by marketing researchers.

The extent to which a new product takes away from the innovative company's present business is referred to as cannibalization.

When designing a test market, the marketer is often interested in finding out whether a new product's sales will take away sales from existing products. What is this referred to as?