Page 58 - DMGT404 RESEARCH_METHODOLOGY

Research Methodology

Notes Attitude and perception towards consuming liquor is measured before exposure to Ad. The
group is exposed to an advertisement, which tells them the consequences, and attitude is again
measured after several days. The difference, if any, shows the effectiveness of advertisement.
The above example of "Before-after" suffers from validity threat due to the following:
1. Before measure effect: It alerts the respondents to the fact that they are being studied. The
respondents may discuss the topics with friends and relatives and change their behaviour.
2. Instrumentation effect: This can be due to two different instruments being used, one
before and one after, change in the interviewers before and after, results in instrumentation
effect.

Factorial Design

Factorial design permits the researcher to test two or more variables at the same time. Factorial
design helps to determine the effect of each of the variables and also measure the interacting
effect of the several variables.

Example: A departmental store wants to study the impact of price reduction for a product.
Given that, there is also promotion (POP) being carried out in the stores (a) near the entrance
(b) at usual place, at the same time. Now assume that there are two price levels namely regular
price A and reduced price A . Let there be three types of POP namely B , B , & B . There are 3 ×
1 2 1 2 3
2 = 6 combinations possible. The combinations possible are B A , B A , B A , B A , B A , B A .
1 1 1 2 2 1 2 2 3 1 3 2
Which of these combinations is best suited is what the researcher is interested. Suppose there are
60 departmental stores of the chain divided into groups of 10 stores. Now, randomly assign the
above combination to each of these 10 stores as follows:

Combinations Sales
B 1A 1 S 1
B 1A 2 S 2
B 2A 1 S 3
B 2A 2 S 4
B 3A 1 S 5
B 3A 2 S 6

S TO S represents the sales resulting out of each variable. The data gathered will provide
1 6
details on product sales on account of two independent variables.
The two questions that will be answered are:
1. Is the reduced price more effective than regular price?
2. Is the display at the entrance more effective than the display at usual location? Also the
research will tell us about the interaction effect of the two variables.
Out come of the experiment on sales is as follows:
1. Price reduction with display at the entrance.
2. Price reduction with display at usual place.

3. No display and regular price applicable
4. Display at the entrance with regular price applicable.

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