Powerade Experiment Design Assignment
PowerAde experiment design assignment
In the PowerAde experiment:
The independent variable is the presence of special holder versus none.
The dependent variable is the percentage change of sales.
The extraneous variables include sales promotions at the retailers, price changes in Gatorade, promotions by Gatorade, changes in Gatorade product such as package design, and any increase or decrease in advertising for sports drinks including PowerAde.
Experimental design: This experiment will be conducted as a field experiment. The groups would be randomly selected convenience stores around the country such as 7/11. The experimental group would be convenience stores with the special holders. The control group would be convenience stores without the special holders. If the experimental group’s average PowerAde sales are greater than the control group average PowerAde sales, then the experiment supports the hypothesis that the special holder will cause greater sales.
Assessment of internal validity: Since this is a field experiment, it is exposed to relatively more extraneous factors compared to laboratory experiments. To eliminate as many extraneous variables as possible, the experimental group and control group will have to be tested under same circumstances and time frame. The measuring criteria should be the same for the control group and experimental group. And customers should have no prior knowledge of the experiment.
Assessment of external validity: Since this is a field experiment, it has more external validity. If the randomly sampled groups are representative of all convenience stores in the country, then the experiment is realistic and generalizable to the real world.