Exam 9: A: Primary Data Collection: Experimentation and Test Markets

How would you respond to the following statement: "Advertising and sales are almost perfectly correlated,as when more is spent on advertising,sales go up,and vice-versa.Surely our advertising expenditures are 'causing' sales to rise."

Field experiments in marketing are conducted in the actual marketplace.

_____________ 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.

A test market generally occurs after a national rollout of a new product.

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?

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?

Selection bias generally is minimized by randomization of subjects to test groups.

The extent to which the results of an experiment can be generalized to represent what would happen in a population is referred to as internal validity.

Suppose during an experiment,a researcher used several observers to record the results.The results of the experiment were perplexing to the researcher.In such a case one might expect ___________ to have occurred,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?

Which of the following is not a precondition for causation?

Both surveys and experiments can show causation between two variables.

The results of a field experiment are often impacted by competitors' actions.

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

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

If extraneous factors in an experiment can be identified and measured, __________ can be used to control these factors.

The costs of producing a product for a test market are comparable to the cost associated with a national launch of the new product.

Which of the following types of research allows the researcher to show causation?

Research that is designed to determine whether a change in one variable likely caused change in another variable is referred to as _______________.

Which of the following is not a benefit of test marketing?