Market Is a Controlled Experiment

¶ … market is a controlled experiment conducted in a carefully chosen marketplace to measure marketplace response and predict sales and profitability of a product. In this short essay, the author will research and explain the type of test study that will be needed to help predict and market the launch of the new adhesive bandage idea.

Quasi-experimental designs control some, if not all extraneous factors. A test market represents an example of this phenomenon. A new product is introduced into a select number of cities. They must be representative of an overall national/international) population. They be relatively uncontaminated by outside influences. A marketer has a measure of control over the marketing variables, but almost none over broader business environmental variables. Competitors can change their prices during a test. Governments might change tax levels. New competing products may be introduced into the mix. An advertising campaign might be initiated by competitors. Any of these variables could contaminate a test market ("Experimental designs, " 2011).

Methodology

The most common methodology for experimental test marketing is classical pretest-post test. In this scenario, the total population of the study's participants are randomly divided into two samples groups. These two sample groups include the control sample and an experimental sample. The experimental sample group is the only one that is exposed to a manipulated variable. A researcher engages in a comparison of pretest results with the post test results for both of the samples. Any divergence between the two is assumed come as a result of the experiment. In addition to the classical pretest-post test, one can also add a method called a factorial design. This is similar in design to the classical type except that additional samples are being used. Each group is exposed to different experimental manipulations (ibid.).

New Adhesive Bandage Idea.

In the classical pretest-post test, the old style adhesive bandages will be tested off against the new adhesive bandage idea. This is really a new-old idea. In the past, Johnson and Johnson has experimented different color band aids not only for children, but also for adults. Previously, there have been such band aids made for adults, but only in limited, special editions. Now, a new series of such band aids are being issued in special day glow colors to see if the adults will begin to use more of these colored strips as opposed to the old style without such special colors. It has been noted in the past that adults have put on their children's band aids and not just in a pinch, but because they liked the colors ("Colorful adhesive bandages," 2010)

If the new edition band aids are used with enough occurrence in the test market, then the company will run this in more than just limited edition runs like it did in the past for various color sequences. It will then make a permanent line of colored band aids for adults. Factorial design test markets can be used to try out other color sequences.