Explain Experimental Effects

1. Explain Experimental Effects (4 points)

Suppose you wanted to study the effect of advertising appeals (individualistic vs. collectivistic) on purchase intentions and reveal how the effect may differ between two different cultures: U.S. and China. One hundred U.S. consumers were recruited and randomly assigned to view an ad with either individualistic or collectivistic appeals. The same procedure was performed among 100 Chinese consumers, too. After the subjects were exposed to the assigned advertising appeals, they were asked to rate “how likely they would purchase the product in the ad?” on a 10-point scale, with “1” being “not likely” and “10” being “very likely.” The average of purchase intention scores for each condition was reported in the table below.

2. Design a Test-Marketing Study (3 points)

The marketing researcher usually designs a field experiment to study any elements of the marketing mix (4P’s: product, price, place and promotion). This is commonly known as test marketing.