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Experimentation in Business
Experimentation in Business
EXPERIMENTATION IN
BUSINESS
GROUP 4
03 BEWORKS
07 RECOMMENDATIONS
Introduction
In 2016, Ada Le, an associate at BEworks
Inc., had a meeting with their latest
client, a luxury cosmetic company.
01 02 03 04
Founding Team:
Dan Ariely: Renowned professor and author of "Predictably Irrational."
Nina Mazar: Behavioral scientist and marketing professor.
Kelly Peters: Experienced strategy and innovation executive.
Mission: Apply scientific thinking to marketing and operational challenges with an emphasis on
empirical testing and data-driven decisions.
Client Sectors: Worked across various sectors, including energy, financial services, consumer-
packaged goods, insurance, and government.
BE Method
1. Discovery: Scientific perspective study, setting objectives, and specifying measurable
targets.
2. Behavioral Diagnostics: Understanding client challenges through a behavioral lens,
leveraging academic and managerial research.
3. Ideation: Identifying and prioritizing behavioral economics strategies, often using BEworks'
"Expert Think Tank."
4. Build and Experiment: Designing and launching experiments to test solutions empirically.
5. Choice Architecture: Delivering the "Choice Architecture Playbook" with final
recommendations based on experimental data, supporting large-scale market rollout.
COSMETICS INDUSTRY OVERVIEW
The cosmetics industry encompasses a wide array of products, from
makeup to luxury skincare lines such as Estée Lauder and L'Oreal Paris. It
caters to diverse price ranges and qualities, reflecting consumer sentiments
and economic shifts.
QUALITY CUSTOM FIT SCIENCE TIME HORIZON WHOLE UNIT CONTROL MSG.
DESIGNING THE TEST
Optimizing Tagline Testing for BEWork's Success
BEworks aims to provide data-driven recommendations
through reliable experimentation.
Randomization is crucial to ensure comparability
between groups.
Le is deliberating among three alternatives: laboratory
experiment, field test without randomization, or online
survey.
ONLINE SURVEY
LABORATORY
EXPERIMENT
FIELD TEST WITHOUT
RANDOMIZATION
STRATEGIES
LAB EXPERIMENT FIELD TESTING W/O ONLINE SURVEY
RANDOMIZATION
Why?
1. BEworks is on a tight timeline, and online
surveys would provide time and cost
efficiency compared to other options.
2. Flexible platforms like Qualtrics would allow
BEworks to tailor the experiment to the
client's needs and preferences.
3. Given that this project could significantly
impact the client’s position in the competitive
industry, the accuracy of the test results is
crucial. The random assignments in online
surveys help draw valid conclusions about the
effectiveness of each message.
THANK YOU