Research Topics:

Data Analysis | Data Quality | Quantitative Research

Content Type:

Glossary

External Variables Definition

An unforeseen and unaccounted-for variable that jeopardizes reliability and validity of an experiment's outcome because it decreases the ability to isolate cause and effect. Also known as an confounding variable or extraneous variable.

External variables are unforeseen and unaccounted-for variables that jeopardize reliability and validity of an experiment's outcome. That is because their presence decreases the ability to isolate cause and effect. They also are known as confounding or extraneous variables. In marketing research, external variables are factors that are beyond the control of researchers or businesses, yet impact the marketing process and outcomes. Among these variables are economic conditions, cultural trends, competitive actions, technological advancements and social changes. They provide context and influence the impact of marketing strategies. Because external variables offer insights into the broader environment, business and marketing professionals can observe the variables for signs of shifts in consumer preferences, industry trends and competitive landscapes.

Who is affected by external variables?

Various stakeholders in the marketing process rely on external variables. For instance, marketing managers, product development teams, sales teams and strategic planners pay attention to external variables to understand how the variables impact consumer behavior and market trends.

Why should I care about external variables?

Simply put, external variables help shape market dynamics. For example, business and marketing professionals who are proactive in understanding and analyzing external variables, adjust strategies to align with changing market conditions. However, ignoring these variables can translate into ineffective marketing strategies, missed opportunities and potential financial losses.