effects of participation in a simulation game on students’ numeracy and financial skills

Effects of participation in a simulation game on students’ numeracy and financial skillsRoss Brennan

Lynn Vos

The authors gratefully acknowledge funding support from the Academy of Marketing

Overview

1. A tiny bit of background2. The essence of the argument3. Hypotheses4. The study5. Findings6. Limitations7. Questions & discussion

Student perceptions of enjoyment of the game

1 to 5 6 7 8 9 100

5

10

15

20

25

30

35

Per cent

Did not enjoy .................. Absolutely great!

FROM A PRIOR STUDY BY THE SAME RESEARCHERS

Student Comments (Gathered from Student Reflective Statements)

• “the game was educational and fun”• “I gained more practical experience than I could have gained in other

modules”• “perfect opportunity to put theory into practice”• “importance of target marketing and using market research”• “applying strategic marketing theory to a real life situation”• “This real life situation was the best way to see how all elements of the

marketing strategy mix are related to each other”• “really improved my financial analysis and budgeting skills”• “learned to communicate and work successfully in a group”• “importance of budgeting in marketing which I didn’t learn

elsewhere”• “how important it is to meet target market needs”• “learned about distribution, dealers and role of sales reps”• “learned how dependent each element of the mix is on the others”

FROM A PRIOR STUDY BY THE SAME RESEARCHERS

2. Essence of the argument

Are sims one route to improved math/financial skills?

Not “math class” Naturalistic setting

Simulation games provide engaging learning environmentPositive affect Numbers/money

Marketing educators unhappy with students’ math skillsEmployability Creative approaches

3. Hypotheses• Hypothesis 1: Marketing students’ scores in a standard test of

numeracy skills will rise following their participation in a simulation game that requires them to engage in numerical analysis.

• Hypothesis 2: Marketing students’ scores in a standard test of financial skills will rise following their participation in a simulation game that requires them to engage in financial analysis.

• Hypothesis 3: Marketing students’ self-efficacy in handling numerical and financial issues will improve following their participation in a simulation game that requires them to engage in numerical and financial analysis.

4. The studyPre- and post-test quasi-experimental design without control group

DemographicsSelf-efficacy (5 questions, 8 point scale)Numeracy (10 questions, right/wrong)

Financial (5 questions, right/wrong)

DemographicsSelf-efficacy (5 questions, 8 point scale)Numeracy (10 questions, right/wrong)

Financial (5 questions, right/wrong)

PRE-TEST (WEEK 2)

INTERVENTION(WEEKS 3-10)

POST-TEST (WEEK 11)

PLAY SIMBRAND (8 ROUNDS) WITH TUTORIAL SUPPORT

CESIM SIMBRAND: SCREENSHOT

CESIM SIMBRAND: SCREENSHOT

5. Findings

• 127 respondents pre-test• 88 respondents post-test• 76 fully paired-up responses used for analysis• Description of the 76

– 33male, 43 female– Characteristically mixed ethnic origin– 29 A levels; 22 UK vocational; 19 overseas qual.– Mean age 21.7 years

5. Findings

0 1 2 3 4 5 6 7 8 9 100

2

4

6

8

10

12

14

16

18

Figure 1: Score on Quantitative Questions Before & After

Quantitative score, beforeQuantitative score, after

Score

Freq

uenc

y

5. Findings

(N=76) Mean self-efficacy (out of 40)

Mean quantitative score (out of 10)

Mean financial score (out of 5)

Before 24.10 4.30 0.14After 22.51 7.17 0.78Difference -1.50 2.87 0.64t value 1.898 9.757 4.729Significance level

0.062 0.000 0.000

Table 2: Mean Scores Before and After Participation in the Simulation Game

6. Limitations

• Single institution, small sample• No control group used• Only short-term effects measured• Tutorial support provided – the game was a

learning environment, not the only pedagogic tool

7. Questions & discussion

Slides illustratingresearch instrumentavailable if desired

The authors gratefully acknowledge funding support from the Academy of Marketing

Self-efficacy

Please look at Table 1. This shows the sales report for a product called the CPC100 photocopier. Suppose you were asked to do the following calculations or tasks. Please indicate how confident you are that you would be able to do these things correctly. The confidence scale runs from (1) meaning “not confident at all” to (8) meaning “completely confident”. Tick the number that matches your own feeling of confidence for the task. 1 Calculate the share of marketing expenditure that was spent on market research in April

Not confident at all (1)

(2) (3) (4) (5) (6) (7) Completely confident

(8)

Numeracy (marketing math)

You recently joined a company that markets portable DVD players, as a Graduate Marketing Trainee. Today you attended a meeting where the Sales Director discussed the most recent sales figures. Read what the Sales Director said, and then answer the questions below: “Our sales forecast for last month was £235,000, but actual sales exceeded that figure by £26,000. Our recommended retail price is £90 per unit, but we have noticed quite a lot of price discounting. For example, the online retailer TVs Direct is selling our DVD player at a 20% discount on the recommended price. At the recommended price of £90 the retailer makes a gross profit margin of £30. Our market research company has suggested that we should increase the recommended retail price to £100, but I’m worried that would make us uncompetitive.”

Question Your answer For office use

1 At what price is TVs Direct selling the DVD player?

1 2

Basic accountingPlease answer the following questions based on Table 2. Question For office

use

1 Briefly explain how you would calculate the gross profit percentage for Charles Smith Menswear

1 2

Your answer

2 Briefly explain how you would calculate the average inventory (at cost) held by Charles Smith Menswear

1 2

Your answer