ExploringMarketingResearchWilliamG Zikmund Chapter12 TestMarketing TESTMARKETING Controlledexperimentation Notjusttryingsomethingout Butscientifictesting TestMarketing Anexperimentalprocedurethatprovidesanopportunitytotestanewproductoranewmarketingplanunderrealisticmarketconditionstomeasuresalesorprofitpotential FUNCTONSOFTESTMARKETING ESTIMATEOUTCOMES IDENTIFYANDCORRECTWEAKNESSESINPLANS ALengthyandCostlyProcedure SelectingaTestMarket PopulationSizeDemographicCompositionLifestyleConsiderationsCompetitiveSituationMediaSelf containedTradingAreaOverusedMarkets Secrecy ControlMethodofTestMarketing SmallCityLowChanceofBeingDetectedDistributionisForced Guaranteed AdvantagesofusingtheControlMethodofTestMarketing 1 Reducedcosts2 Shortertimeperiodneededforreadingtestmarketresults3 Increasedsecrecyfromcompetitors4 Nodistractionofcompanysalespeoplefromregularproductlines Copyright 2000byHarcourt Inc Allrightsreserved SomeProblemsEstimatingSalesVolume OverattentionUnrealisticStoreConditionsReadingCompetitiveEnvironmentIncorrectlyIncorrectVolumeForecastsAdjustedDataPenetrationandRepeatPurchaseRateTimeLapse Copyright 2000byHarcourt Inc Allrightsreserved HighTechTestMarkets ElectricTestMarkets SimulatedTestMarkets Virtual realitySimulatedTestMarkets AdvancedExperimentalDesignsareMoreComplex CompletelyRandomizedRandomizedBlockDesignLatinSquareFactorial CompletelyRandomizedDesign Anexperimentaldesignthatusesarandomprocesstoassignsubjects testunits andtreatmentstoinvestigatetheeffectsofonlyoneindependentvariable Copyright 2000byHarcourt Inc Allrightsreserved CompletelyRandomizedDesigns Averageminutesshopperspendsinstore Control nomusic Experimentaltreatment slowmusic Experimentaltreatment fastmusic 161812 Copyright 2000byHarcourt Inc Allrightsreserved IndependentVariableA GroupA GroupB GroupC Level1 Level2 Level3 Copyright 2000byHarcourt Inc Allrightsreserved CompletelyRandomizedDesign Withapretestposttest GroupARO1X1O2GroupARO3X2O4GroupARO5X3O6 Copyright 2000byHarcourt Inc Allrightsreserved Withaposttest GroupARX1O1GroupBRX2O2GroupCRX3O3 Copyright 2000byHarcourt Inc Allrightsreserved CompletelyRandomizedDesign RandomizedBlockDesign Anextensionofthecompletelyrandomizeddesigninwhichasingleextraneousvariablethatmightaffecttestunits responsetothetreatmenthasbeenidentifiedandtheeffectsofthisvariableareisolatedbyblockingoutitseffects Copyright 2000byHarcourt Inc Allrightsreserved RandomizedBlockDesign IndependentVariables Control nomusic Experimentaltreatmentslowmusic Experimentaltreatment fastmusic MorningsandafternoonsEveninghours Blockingvariable Copyright 2000byHarcourt Inc Allrightsreserved FactorialDesign Anexperimentthatinvestigatestheinteractionoftwoormorevariablesonasingledependentvariable Copyright 2000byHarcourt Inc Allrightsreserved IndependentVariable1 NoMusiccartsigns SlowMusic FastMusic NoMusic Grocerycartsigns IndependentVariable2 Copyright 2000byHarcourt Inc Allrightsreserved PriceRedGold 25Cell1Cell4 30Cell2Cell5 35Cell3Cell6 FactorialDesign RollerSkates PackageDesign Effects MaineffectTheinfluenceofasingleindependentvariableonadependentvariable InteractioneffectTheinfluenceonadependentvariablebycombinationsoftwoormoreindependentvariables Copyright 2000byHarcourt Inc Allrightsreserved 2x2FactorialDesign MenWomen AdAAdB 6565 7060 MainEffectsofGender MainEffectsofAd Copyright 2000byHarcourt Inc Allrightsreserved InteractionBetweenGenderandAdvertisingCopy Level1Level2 Level1Level2 GroupA GroupD GroupC GroupB INDEPENDENTVARIABLE2 IndependentVariable1 Copyright 2000byHarcourt Inc Allrightsreserved GroupARO1X11O2GroupBRO3X21O4GroupCRO5X12O6GroupDRO7X22O8 2x2FactorialwithaPretestPosttest Copyright 2000byHarcourt Inc Allrightsreserved 2x2FactorialDesignwithaPosttestMeasure GroupARX11O1GroupBRX21O2GroupCRX12O3GroupDRX22O4 Copyright 2000byHarcourt Inc Allrightsreserved ATestMarketExperimentonPricing SalesinUnits thousands RegularPrice 991301188784X1 104 75X 119 58 ReducedPrice 89145143120131X2 134 75 Cents OffCouponRegularPrice1531299699X1 119 25 TestMarketA B orCTestMarketD E orFTestMarketG H orITestMarketJ K orLMeanGrandMean Copyright 2000byHarcourt Inc Allrightsreserved LatinSquareDesign Abalanced two wayclassificationschemethatattemptstocontrolorblockouttheeffectoftwoormoreextraneousfactorsbyrestrictingrandomizationwithrespecttotherowandcolumneffects Copyright 2000byHarcourt Inc Allrightsreserved 1231ABC2BCA3CAB OrderofUsage SUBJECT Copyright 2000byHarcourt Inc Allrightsreserved