Question

Value perceptions of consumers (cont’d). Refer to Exercise 9.10. In addition to the factor, Type of advertisement

(within-store price promotion and between-store price promotion), the researchers also investigated the impact of a second factor—Location where ad is read (at home or in the store). About half of the consumers who

were assigned to the within-store price promotion read the ad at home, and the other half read the ad in the store. Similarly, about half of the consumers who were assigned to the between-store price promotion read the ad at home, and the other half read the ad in the store. In this second

experiment, the goal was to compare the average discount values of the groups of consumers created by combining Type of advertisement with Location.

a. How many treatments are involved in this experiment?

b. Identify the treatments.

Short answer

b. The treatments combinations are (within-store price promotion, home), (within-store price promotion, in the store), (between-store price promotion, home), and (between-store price promotion, in the store).

Step-by-step solution

Given Information

Two levels for type of advertisement are within-store price promotion, between-store price promotion and two levels for location home or in the store.

Definition

Treatments are the possible combination of the levels of the different factors.

Identifying the treatments

b.

The treatments combinations are (within-store price promotion, home), (within-store price promotion, in the store), (between-store price promotion, home), and (between-store price promotion, in the store).