The Effect of Online External Reference

Verified

Added on  2022/08/22

|6
|1962
|21
AI Summary

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Running head: QUANTITATIVE RESEARCH
Quantitative research
Name of the student
Name of the university
Author note

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
1QUANTITATIVE RESEARCH
Article: Moon Y. K., & Kwon J. (2015). The Effect of Online External Reference Price on
Perceived Price, Store Image, and Risk. Journal of Business Inquiry: Research, Education &
Application, 14(1), 41–58.
Objective of the study
The main objective of the study was to examine the impact of external reference price
within price comparison sites. It implies that the comparison among the competitor prices and its
influence on the store image, perceived price and risk has been used to establish the relationship
between the external reference points with price comparison sites (Moon & Kwon, 2015). It is
expected to measure the price sensitivity of the buyers and competition among the sellers by
using external reference points. As the study has chosen an experimental research, where initially
risk, perceived price and store image were evaluated in respect to store name, brand name and
product category. The next experiment focused on examining whether store image, risk and
perceived price differ in respect to external reference points based on the relevant conditions
identified in the previous experiment.
Research design
The study has used an experimental research design to address all the objectives
mentioned in the research. Experimental research design consists of high internal validity where
randomisation is used to measure the highest level of causal validity. Therefore, it measures the
magnitude of causal relationship two or more variables (Morales, Amir & Lee, 2017). In this
study the causal relationship between store image, perceived price and risk has been calculated in
respect to external reference points. It includes both evaluation and explanatory research to
developing significant results in the study. However, there are three of ways of measuring and
supporting causal inference such as association, nonspuriousness and temporal order. The criteria
of association implies that there has to be a systematic way of establishing the cause and effect
relationship between variables. On the other hand, temporal order requires the cause and
variation in variables to occur before the observation made on the affected variable. In case of
the nonspuriousness, the cause and effect relationship has to be made in respect to all the linked
variables so that the study does not reflect causal relationship due to omission of any variable
(Malouff & Thorsteinsson 2016).
Document Page
2QUANTITATIVE RESEARCH
In this case, the study has used a randomised experimental research design even though
the cause variables have been hypothesised. Moreover, as the study aims to examine
nonspuriousness, therefore, the use of randomised experiments is the most convincing. Quasi
experimental research design has not been used in this study as nonspuriousness cannot be
evaluated using a quasi-experimental research design. In this study two experiments have been
performed one without the use of external reference points and one with the external reference
points. In case of the first experiment, factorial research design has been used to propose the
hypothesis (Malouff & Thorsteinsson, 2016). The study hired a market research company in
Korea to create a hypothetical online shopping situation. In this study, the sample size of the
study consisted of 160 participants but the consumers does not having any online shopping
experience in the last three months have been screened out (Moon & Kwon, 2015). Moreover, in
terms of gender equal quota was established. The participants were provided the link to the
experiment where they were assigned to four sites randomly. These participants were provided a
real shopping environment where price and product information of the products were provided to
the consumers and then the consumers were moved to the survey for measurement of their
opinion on price, risk perceptions and store image.
In case of the second experiment, a factorial design to test the hypotheses proposed in the
study. The store name and the product category has been manipulated in the study and a total of
320 respondents have been chosen in the study and a similar randomised sampling method is
used to examine the relationship between the variables. A MANOVA test has been used to test
the relationship which shows more than one dependent variable which explains the reason for
measuring nonspuriousness in the study (Moon & Kwon, 2015).
Internal and external validity assessment
Internal validity has been defined as the extent to which a trustworthy causation between
an outcome and a treatment is obtained in a study. It helps in eliminating alternative explanation
in the study. Internal validity is totally dependent on the rigorousness and procedure of
performing the experiment. It determines the confidence towards the findings of the study and
avoid questioning of the findings (Khadka, Burns & Becker 2016). A study having higher
internal validity signifies that there are less chances of confounding results. It happens when
other factors come into play which may affect and confuse the results of an experiment.
Document Page
3QUANTITATIVE RESEARCH
Therefore, the internal validity in a study can be considered high when there are no alternative
explanation for the findings. The chosen study has improved the internal validity of the study by
using randomisation to deal with nonspuriousness. Randomisation has been used in case of the
control and treatment group to omit any chances of systematic bias between groups.
A random selection of participants have been performed to ensure that they effectively
represent the total target populace in the research. Experimental manipulation has been used to
establish a better relationship between the variables. The store name and the product category
has been manipulated in both the studies where the name of the known shopping mall is real and
the unknown shopping mall is fictitious (Richard's et al., 2017). Notebook computers and jeans
were used for look-and-feel category as the non-look-and-feel category. These categories were
chosen based on the ease of evaluation and quality among all the frequently purchased items.
The study created web pages similar to real shipping environment along with the product and
price information of the items chosen. Moreover, the price of the chosen product has been set at
the middle of the price levels chosen. However, the study has screened the respondents who
have not shopped on online platforms for the last three months which negatively affects the
internal consistency. The study has also measured the reliability of the data collected to ensure
that internal consistency remains intact in the study.
External validity measure the fit of the results and outcomes by understanding whether
the results can be generalised. It implies that results can be applied to different people,
surrounding, time period and instances. Moreover, the study results should be as such that it can
be generalised to the real world. The results suggest that there are managerial implications of the
findings where the managers in stores can predict the perception on price, risk and store image
with the change in the market situations. It means that with increase in competition in the market
with competitors selling similar product, it can be considered a threat (Khadka, Burns & Becker
2016). However, reducing the price of the product to remain higher on the price comparison
websites is not the solution. On the contrary, if the stores are known then there is no need to
reduce the prices of the product as external prices on the online platform does not impact the
price perceptions, risks and store image. However, in case of unknown stores all the above
factors significantly affect the consumers’ perception. Therefore, in case of external validity, in

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
4QUANTITATIVE RESEARCH
some of the instances the same scenario cannot be used to obtain similar results due to the
concept of non-look-and-feel products and look-and-feel products.
The study has also not evaluated the validity of the data collected using statistical
techniques such as Bartlett test of Sphericity and Kaiser Meyer Olkin Test of sampling adequacy
(Khadka, Burns & Becker 2016). These test significantly help in performing factor analysis and
omitting variables that are significantly linked to each other. It would have helped in
understanding whether rotation is required to change the data and improve the degree of
correlation between them. Bartlett test would have helped in understanding whether the
correlation matrix among the elements is an identity matrix or not. It would have reduced the
redundancy among the variables and provided a better generalizable result.
On the other hand, the study provided limited information to the participants which is
different from the real world example and only two product categories were evaluated.
Therefore, it would be quite difficult to understand whether other product categories are showing
results or not. The KMO test would have measured the sampling adequacy of the data gathered
which helps in understanding the rotation required to reduce redundancy (Khadka, Burns &
Becker 2016). Moreover, the study is only limited to online environment and is not applicable to
offline environment so it can be said the external validity of the research design is low as it has
significant limitations attached to it. Therefore, finally it can be said that this study has used an
experimental research design where two experiments have been performed one without the use
of external reference points and one with the external reference points. In case of the first
experiment, factorial research design has been used to propose the hypothesis. Randomisation of
the variables and sample selection has been used to avoid bias but due to the selection criteria of
the consumers, some of the results may lack validity.
Document Page
5QUANTITATIVE RESEARCH
References
Khadka, G., Burns, G. L., & Becker, S. P. (2016). Internal and external validity of sluggish
cognitive tempo and ADHD inattention dimensions with teacher ratings of Nepali
children. Journal of psychopathology and behavioral assessment, 38(3), 433-442.
Malouff, J. M., & Thorsteinsson, E. B. (2016). Bias in grading: A meta-analysis of experimental
research findings. Australian Journal of Education, 60(3), 245-256.
Moon Y. K., & Kwon J. (2015). The Effect of Online External Reference Price on Perceived
Price, Store Image, and Risk. Journal of Business Inquiry: Research, Education &
Application, 14(1), 41–58.
Morales, A. C., Amir, O., & Lee, L. (2017). Keeping it real in experimental research—
Understanding when, where, and how to enhance realism and measure consumer
behavior. Journal of Consumer Research, 44(2), 465-476.
Richard's, M. M., Introzzi, I., Zamora, E., & Vernucci, S. (2017). Analysis of internal and
external validity criteria for a computerized visual search task: A pilot study. Applied
Neuropsychology: Child, 6(2), 110-119.
1 out of 6
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]