Page 103 - DMGT209_QUANTITATIVE_TECHNIQUES_II

Quantitative Techniques-II

Notes 6.6 Experimentation

Experimentation Research is also known as causal research. Descriptive research, will suggest
the relationship if any between the variable, but it will not establish cause and effect relationship
between the variable.

Example: The data collected may show that the no. of people who own a car and their
income has risen over a period of time. Despite this, we cannot say “No. of car increase is due to
rise in the income”. May be, improved road conditions or increase in number of banks offering
car loans have caused in increase in the ownership of cars.
To find the causal relationship between the variables, the researcher has to do an experiment.

Example:
1. Which print advertisement is more effective? Is it front page, middle page or the last
page?
2. Among several promotional measure, such as Advertisement, personal selling,
“which one is more effective”? Can we increase sales of our product by obtaining
additional shelf space? What is experimentation? It is research process in which one
or more variables are manipulated, which shows the cause and effect relationship.
Experimentation is done to find out the effect of one factor on the other. The different
elements of experiment are explained below.

6.6.1 Test Units

These are units on which the experiment is carried out. It is done with one or more independent
variables controlled by a person to find out its effect on a dependent variable.

6.6.2 Explanatory Variable

These are the variables whose effects the researcher wishes to examine. For example: Explanatory
variables may be advertising, pricing, packaging etc.

6.6.3 Dependent Variable

This is a variable which is under study. For example: Sales, Consumer attitudes, Brand loyalty etc.

Example: Suppose a particular colour TV manufacturer reduces the price of the TV by
20%. Assume that his reduction is passed on to the consumer and expect the sales will go up by
15% in next one year. These types of experiments are done by leading TV companies during the
festival season.
The causal research finds out whether the price reduction causes an increase in sales.

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