Page 54 - DMGT404 RESEARCH_METHODOLOGY

Research Methodology

Notes Explanatory Variable

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

Dependent Variable

This is a variable which is under study. For example, sales, consumer attitude, 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 1 year. This types of experiments are done by leading TV companies during festival
season.

The causal research finds out, whether the price reduction causes an increase in sales.

Extraneous Variables

These are also called as blocking variables Extraneous variables affects, the result of the
experiments.

Example:
1. Suppose a toffee manufacturing company is making an attempt to measure the response
of the buyers, on two different types of packaging, at two different locations. The
manufacturer needs to keep all other aspects the same, for each buyers group. If the
manufacturer allows the extraneous variable namely the "Price", to vary between the two
buyer groups, then he will not be sure, as to which particular packaging is preferred by the
consumers. Here prices change is an extraneous factor.
There are two possible courses of action with respect to extraneous variables.
Extraneous variables may be physically controlled. Example: Price in the above example.
In the second category, extraneous variables may be totally out of control of the researcher.
In this case, we say that the experiment has been confounded i.e., it is not possible to make
any conclusions with regard to that experiment. Such a variable is called as "Confounding
variables".
2. Company introduces a product in two different cities. They would like to know the impact
of their advertising on sales. Simultaneously competitors product in one of the cities is not
available during this period due to strike in the factory. Now researcher cannot conclude
that sales of their product in that city has increased due to advertisement. Therefore this
experiment is confounded. In this case, strike is the confounding variable.

Types of Extraneous Variables

The following are the various types:

1. History
2. Maturation
3. Testing
4. Instrument variation

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