Notes On Marketing Experimentation Classic Reprint

Excerpt from Notes on Marketing Experimentation If the change is drastic enough, say a price cut or the introduction of a new product, there are sometimes special opportunities for analysis. An example of this is Henderson and Brown's study of the effect of a promotional campaign on the sales of frozen orange juice. Although the analysis of historical data is often very valuable, experiments offer several special advantages. If you make an experimental change and observe an effect, it is frequently more convincing than if a change and an effect occur together in past data. In the latter case, you are likely to worry that a deeper mechanism may be causing both the change and the effect, since changes in marketing variables are usually made for some reason. A serious difficulty in econometric analyses is that the variables of interest may have substantial correlations with each other and with other explanatory variables. This may lead to instability in estimates of the important regression coefficients. In designing an experiment a deliberate effort is made to have small correlation among experimental variables and between them and other explanatory variables. Finally, of course, experiments can be directed at questions of immediate interest and can examine more different alternatives than would normally occur in regular Operations. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.