Testing 1 - 2 - 3: Experimental Design with Applications in Marketing and Service Operations

by Johannes Ledolter, Arthur J. Swersey

Overview

This book is about the power of statistical experiments. In the past, books on experimental design focused almost entirely on manufacturing problems. In contrast, although this book is relevant to manufacturing and includes useful examples in that area, its emphasis is on applications to marketing and service operations. The authors provide a fresh and practical treatment of the key topics in designing and analyzing experiments. Testing in the business world is commonplace, and the usual approach is to change one factor at a time while holding other factors constant. This approach may seem logical and appealing, but, as the authors explain, it is highly inefficient, and may lead to wrong conclusions. The better method, the authors propose, is to test all factors simultaneously. Doing so not only reduces the costs of experimenting but also provides the decision-maker with better information.

Throughout the book, the authors illustrate concepts with practical examples. In addition, the book includes a set of 13 separate real-world cases based on the actual implementation of experimental design methods.

Product Details

ISBN-13:	9780804756129
Publisher:	Stanford University Press
Publication date:	05/01/2007
Edition description:	1
Pages:	312
Product dimensions:	7.00(w) x 10.00(h) x 1.00(d)

About the Author

Johannes Ledolter is the C. Maxwell Stanley Professor of Management Sciences at the University of Iowa, and Professor of Statistics at the Vienna University of Economics and Business Administration. His books include Introduction to Regression Modeling (with Bovas Abraham) and Achieving Quality Through Continual Improvement (with Claude W. Burrill). Arthur J. Swersey is Professor of Operations Research at the Yale School of Management.

Table of Contents

Preface     ix
Introduction     1
A Review of Basic Statistical Concepts     8
Testing Differences Among Several Means: Completely Randomized and Randomized Complete Block Experiments     47
Two-Level Factorial Experiments     64
Two-Level Fractional Factorial Designs     111
Plackett-Burman Designs     150
Experiments with Factors at Three or More Levels     169
Nonorthogonal Designs and Computer Software for Design Construction and Data Analysis     192
Case Studies     213
References     289
Index     295

Editorial Reviews

"This is the first book which is particularly devoted to applications of experimental design in marketing, service operations and general business problems. he authors give an easy to read non-technical treatment of full and fractional factorial designs supplemented by 13 cases."—Austrian Journal of Statistics

"Ledolter and Swersey succeed in conveying their passion for experimental design and sharing the power and practical value of these methods. The real-world examples used in the book are excellent."—Bovas Abraham, University of Waterloo

"The authors present a wealth of interesting examples, many of which come from marketing, to minimize mathematical formalism and to help students learn how experimental design methods work and why they are so potentially useful. At last we have an accessible and relevant resource to learn about these powerful ideas."—Bert Gunter, Principal Biostatistician, Genentech

"Ledolter and Swersey bring the powerful methodology of statistically designed experiments to the market researcher and service systems analyst. They provide a wealth of detailed real world examples, share many practical insights, and provide just the right amount of theory so that the methods can be understood and used properly. This is an empowering book." —Peter Kolesar, Professor Emeritus, Columbia Business School

"The authors are to be commended for their presentation of an eminently readable text that broadly—yet thoroughly—exposes marketers to statistical experimentation. The marketing practitioner will find case studies that amply demonstrate the benefits of the experimental approach. The marketing researcher will find assured guidance on how to design, execute, and analyze experiments of some complexity. This unique combination makes it a timely, important, and highly recommended text." —Martin Koschat, International Institute for Management Development

"The exposition is crisp and the basic concepts of experimental design are made readily accessible through uncommonly clear explanations. The strong emphasis on the efficiency of factorial experimentation over changing one factor at a time provides the reader with clear understanding of the benefits of the former approach." —American Statistician

"The authors are to be commended for writing a book that specifically targets the use of Design of Experiments (DOE) in non-manufacturing environment...This book fills an important void in the DOE because it targets an application area of DOE where very little has been previously published." —Journal of Quality Technology

From the Publisher

"The authors are to be commended for their presentation of an eminently readable text that broadly—yet thoroughly—exposes marketers to statistical experimentation. The marketing practitioner will find case studies that amply demonstrate the benefits of the experimental approach. The marketing researcher will find assured guidance on how to design, execute, and analyze experiments of some complexity. This unique combination makes it a timely, important, and highly recommended text."

International Institute for Management Development - Martin Koschat

"Ledolter and Swersey bring the powerful methodology of statistically designed experiments to the market researcher and service systems analyst. They provide a wealth of detailed real world examples, share many practical insights, and provide just the right amount of theory so that the methods can be understood and used properly. This is an empowering book."

Columbia Business School - Peter Kolesar

"Ledolter and Swersey succeed in conveying their passion for experimental design and sharing the power and practical value of these methods. The real-world examples used in the book are excellent."

Universityof Waterloo - Bovas Abraham

"The exposition is crisp and the basic concepts of experimental design are made readily accessible through uncommonly clear explanations. The strong emphasis on the efficiency of factorial experimentation over changing one factor at a time provides the reader with clear understanding of the benefits of the former approach."

American Statistician

"This is the first book which is particularly devoted to applications of experimental design in marketing, service operations and general business problems. he authors give an easy to read non-technical treatment of full and fractional factorial designs supplemented by 13 cases."

Austrian Journal of Statistics

"The authors are to be commended for writing a book that specifically targets the use of Design of Experiments (DOE) in non-manufacturing environment...This book fills an important void in the DOE because it targets an application area of DOE where very little has been previously published."

Journal of Quality Technology

"The authors present a wealth of interesting examples, many of which come from marketing, to minimize mathematical formalism and to help students learn how experimental design methods work and why they are so potentially useful. At last we have an accessible and relevant resource to learn about these powerful ideas."

Genentech - Bert Gunter