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BusinessResearch Methods

Module 2: Research Design1Module 2ContentsResearch ProcessResearch Design Types of Research DesignExploratory, Descriptive, and Causal ResearchSampling DesignWhy sampling, Methods of Probability and Non probability sampling, Sample size determination.

Research design: Meaning and definitionA RD is a plan, structure and strategy of investigation so conceived as to obtain answers to research questions or problems. The plan is the complete program and scheme of the research. It includes an outline of what the investigator will do from writing the hypothesis and their operational implications to the final analysis of data. Kerlinger, 1986 A RD is a blueprint or detailed plan for how a research study is to be completed: operationalizing variables so they can be measured, selecting a sample of interest to study, collecting data to be used as a basis for testing hypothesis and analyzing the results. Thyer, 1993 Functions of Research designTypes of ResearchBusiness research can be classified on the basis of technique or function. Experiments, surveys, and observational studies are few common research techniques. Classifying BR on the basis of purpose or function allows us to understand how the nature of the problem influences the choice of research methods. The nature of problem will determine whether the research is:Exploratory Research. Descriptive ResearchCausal ResearchUncertainty Influences the Type Of Research

Exploratory ResearchDescriptive ResearchCausal Research(Unaware of Problem)(Aware of Problem)(Problem Clearly Defined)

Our sales are declining and What kind of people are buyingWill buyers purchase more of we dont know why.our product? Who buys ourour products in a new package?competitors product? Would people be interested Which of two advertising in our new product idea?What features do buyers prefercampaigns is more effective?in our product?

possible situationDegree of Problem Definition6Exploratory ResearchInitial research conducted to clarify and define the nature of a problemSubsequent research will be required to provide conclusive evidenceMajority of exploratory researches provide qualitative data: words and observationsAny source of information may be informally investigated to clarify which qualities or characteristics are associated with an object, situation or issue.It may be a single research investigation or a series of informal studies.7Descriptive ResearchDescribes characteristics of a population or phenomenonSome understanding of the nature of the research problemI keep six honest serving men, (they taught me all I knew), their names are what and why, and when and how and where and who.--Rudyard Kipling

8Descriptive Research ExampleMens fragrance market1/3 size of womens fragrance marketBut growing at a faster paceWomen buy 80 % of mens fragrances9Causal ResearchConducted to identify cause and effect relationships among variables when the research problem has already been narrowly defined.Causal research should do the following:The appropriate causal order of eventsConcomitant variation--two phenomena vary togetherAn absence of alternative plausible explanationsA causal relationship is impossible to prove even when these criteria for causation are present.

10Exploratory researchExploratory ResearchInitial research conducted to clarify and define the nature of a problemSubsequent research will be required to provide conclusive evidenceMajority of exploratory researches provide qualitative data: words and observationsAny source of information may be informally investigated to clarify which qualities or characteristics are associated with an object, situation or issue.It may be a single research investigation or a series of informal studies.12Diagnose a situationScreening of alternativesConcept Testing: Exploratory research procedure that tests some sort of stimulus as a proxy for an idea about a new, revised, or repositioned productDiscover new ideasWhy Conduct Exploratory Research?13Categories of Exploratory ResearchExperience surveysSecondary data analysisCase studiesPilot studies141. Experience SurveysInformal discussions with knowledgeable and experienced individuals about a particular research problem (issues and ideas) - most are quite willingPurpose is to formulate the problem and clarify concepts rather than develop conclusive evidence.15If you wish to know the road up themountain, you must ask the man who goes back and forth on it.- Zenrinkusi

162. Secondary Data AnalysisInvestigating data collected for a purpose other than the project at handEconomicalQuick source for background information173. Case Study MethodIntensely investigates one or a few situations similar to the researchers problem situationInvestigation in depth and with meticulous attention to detailMay require cooperation of person whose history is being studied.Success is dependent on the alertness, creativity, intelligence, and motivations of the individual performing the case analysis.Generalizing from few cases can be dangerous.184. Pilot StudyA collective termAny small scale exploratory study that uses sampling and generate primary data usually for qualitative analysis. But does not apply rigorous standards used to obtain precise, quantitative estimates from large samples.Major categories are focus group interviews, projective techniques, and depth interviews.

19Focus Group Interviews

UnstructuredFree flowingGroup interviewStart with broad topic and focus in on specific issuesGroup composition: 6 to 10 people, Relatively homogeneous, Similar lifestyles and experiences

20Outline for a Focus GroupEstablish a rapportBegin with broad topicFocus in on specific topicGenerate discussion and interaction

The ModeratorDevelops rapport - helps people relaxInteractsListens to what people have to sayEveryone gets a chance to speakMaintains loose control and focuses discussionStimulates spontaneous responses

22Projective TechniquesAny personality test designed to yield information about someone's personality on the basis of their unrestricted response to ambiguous objects or situations.Some projective tests use completion tasks like word, sentence or a cartoon. Analogy embraces various techniques: symbolic analogy; roleplaying; personification; third person test; brand personalities; indirect questions; metaphor. Storytelling requires respondents to share small accounts about any experiences that are broadly related to an issue. Postcard writing is another technique.Word association tests- Subject is presented with a list of words and asked to respond with first word that comes to mindSentence completion method- complete a number of sentences with first word that comes in mindThird person technique- asked why a third person does what he does or what he thinks about an object, event, person or activityRole playingTAT: a projective technique using black-and-white / coloured pictures; subjects tell a story about each pictureRorschach test: tests using bilaterally symmetrical inkblots; subjects state what they see in the inkblotDescriptive Research DesignDescriptive researchDescriptive research is used to describe something, usually market characteristics or functions.

It begins with the structure already defined and proceeds to actual data collection in order to describe some market variable. For example, determining the average age of purchasers of your product.6 Ws of the Descriptive researchWho: who should be considered?Where: where should the respondents be contacted to obtain the required information?When: when should the information be obtained from the respondents?What: what information should be obtained from the respondents?Why: why are we obtaining information from the respondents?Way: the way in which we are going to obtain information from the respondents.

Experimental DesignExperimentA research investigation in which conditions are controlled so that one or more independent variables can be manipulated and its effect on another (dependent) variable is measured. It allows evaluation of causal relationships among variables.

An experimental design is a set of procedures specifying:the test units and how these units are to be divided into homogeneous subsamples, what independent variables or treatments are to be manipulated, what dependent variables are to be measured; and how the extraneous variables are to be controlled.

28Basic Issues of Experimental DesignManipulation of the Independent VariableSelection of Dependent VariableAssignment of Subjects (or other Test Units)Control Over Extraneous Variables

Manipulation of the Independent VariableIndependent variables are variables or alternatives that can be manipulated independently of any other variable and whose effects are measured and compared, e.g., price levels. In Business research the IV is often a categorical or classificatory variable, representing some classifiable or qualitative aspect of management strategy. In few situations it may be a continuous variable.Experimental Treatment: alternative manipulation of the independent variable being investigated. Test units are subjects or entities whose responses to experimental treatments are observed and measured, e.g., consumers or stores. Experimental group: The group of subjects exposed to experimental treatment. Control group: The group of subjects exposed to the control conditions- i.e. not exposed to experimental conditions. Dependent variables are the variables which measure the effect of the independent variables on the test units, e.g., sales, profits, and market shares.

Selection & Measurement of the dependent VariableDependent variables are the variables which measure the effect of the independent variables on the test units, e.g., sales, profits, and market shares. Criterion or standards by which results are judged

Selectionmeasurement

Selection and Assignment of test unitsTest units are subjects or entities whose responses to experimental treatments are observed and measured, e.g., consumers or stores. Sample selection and Random sampling errorSample selection (Constant) error: An administrative procedural error caused by improper selection of a sample, thus, introducing bias. Random Sampling error: A statistical fluctuation that occurs because of chance variation in elements for a sample. Ensuring that the Experimental and Control Groups are IdenticalRandomization: a procedure in which the assignment of subjects and treatment of groups is based on chance. Matching: A procedure for the assignment of subjects to groups which insures each group of respondents is matched on the basis of pertinent characteristics.Repeated Measure: Experiments in which the same subjects are exposed to all experimental treatments in order to eliminate any problems due to subject differences. It eliminates problems due to subject differences.

Control over Extraneous VariablesExtraneous variables are all variables other than the independent variables that affect the response of the test units, e.g., store size, store location, and competitive effort. Constant Error (bias) occurs when the extraneous variables or conditions of administering the experiment are allowed to have an influence on the dependent variables every time the experiment is repeated. This distort the results in a particular direction.Demand Characteristics refers to experimental design procedures that unintentionally give hints to subjects about the experimental hypothesis. Demand characteristics are situational aspects of the experiment that demand that the participant respond in a particular way. These are source of constant error.Experimenter bias refers to an effect on experiments results caused by experimenters presence, actions, or comments.Guinea pig effect refers to an effect caused by subjects changing their normal behavior or attitudes in order to cooperate with an experimenter.Hawthorne effect refers to an unintended effect caused by the subjects knowing that they are participants.Social Interaction refers to joint decision produced by conversation between the subjects.

Type of Extraneous VariableExampleHistory - Specific events in theenvironment between the Beforeand After measurement that are beyond the experimenters control

Maturation - Subjects changeduring the course of the experiment

Testing - The Before measure alertsor sensitizes subject to nature of experiment or second measure. A major employercloses its plant intest market area

Subjects become tired

Questionnaireabout the traditionalrole of women triggers enhanced awareness of womenin an experiment.34Instrument - Changes ininstrument result in response bias

Selection - Sample selectionerror because of differentialselection comparison groups

Mortality - Sample attrition; some subjects withdraw from experimentNew questions aboutwomen are interpreteddifferently from earlierquestions.

Control group and experimental group isself-selected groupbased on preference forsoft drinks

Subjects in one groupof a hair dying study marry rich widows and move to Florida

35Establishing ControlConstancy of Conditions: A procedure in which subjects in EG are exposed to situations identical except for differing conditions of the independent variable.Order of presentation bias: An error in an experiment caused by subjects accumulating experience in the course of responding to multiple experimental treatments.Counterbalancing: A technique to reduce errors caused by order of presentation by varying the order of experimental treatments for different groups.Blinding: Technique used to control subjects knowledge of whether or not they have been given a particular experimental treatment.Double blind design: Technique in which neither the subjects nor the experimenter knows which are the experimental and which are the controlled conditions.Random Assignment: of subjects to experimental groups and of experimental treatments to groups.

Controlling Extraneous VariablesRandomization refers to the random assignment of test units to experimental groups by using random numbers. Treatment conditions are also randomly assigned to experimental groups.Matching involves comparing test units on a set of key background variables before assigning them to the treatment conditions. Statistical control involves measuring the extraneous variables and adjusting for their effects through statistical analysis.Design control involves the use of experiments designed to control specific extraneous variables.Fundamental Questions in ExperimentationBasic versus Factorial Design: In basic experimental design a single independent variable is manipulated to observe its effect on a single dependent variable. Factorial experimental designs are more sophisticated and allow for investigation of the interaction of two or more independent variables.Field and Laboratory Experiments: Laboratory Experiments are experiments conducted in a laboratory or artificial setting to obtain almost complete control over research settings. Field Experiments are conducted in natural settings, and they often expose individuals to the treatment for long period of time.Laboratory Versus Field ExperimentsFactorLaboratoryField

EnvironmentArtificialRealisticControlHighLow Extraneous VariableFewManyInternal ValidityHighLowExternal ValidityLowHighTimeShortLongNumber of UnitsSmall LargeEase of ImplementationHighLow CostLowHighSubject awarenessAwareUnawareValidity in ExperimentationInternal validity refers to whether an experimental treatment was the sole cause of changes in a dependent variable. Control of extraneous variables is a necessary condition for establishing internal validity.Six major types of extraneous variables that may jeopardize internal validity: history, maturation, testing, instrumentation, selection and mortality.External validity refers to whether the cause-and-effect relationships found in the experiment can be generalized (applicable in real world). To what populations, settings, times, independent variables and dependent variables can the results be projected?It is necessary to trade off internal validity for external validity.A Classification of Experimental DesignsPre-experimental designs do not employ randomization procedures to control for extraneous factors: the one-shot case study, the one-group pretest-posttest design, and the static-group. In true experimental designs, the researcher can randomly assign test units to experimental groups and treatments to experimental groups: the pretest-posttest control group design, the posttest-only control group design, and the Solomon four-group design. A Classification of Experimental DesignsQuasi-experimental designs result when the researcher is unable to achieve full manipulation of scheduling or allocation of treatments to test units but can still apply part of the apparatus of true experimentation: time series and multiple time series designs. A statistical design is a series of basic experiments that allows for statistical control and analysis of external variables: randomized block design, Latin square design, and factorial designs. A Classification of Experimental Designs1. Pre-experimentalOne-Shot Case Study

One Group Pretest-Posttest

Static Group2. True ExperimentalPretest-Posttest Control Group

Posttest: Only Control Group

Solomon Four-Group3. Quasi ExperimentalTime Series

Multiple Time Series4. StatisticalRandomized Blocks

Latin Square

Factorial DesignExperimental DesignsSymbolism for Diagraming Experimental DesignX = exposure of a group to an experimental treatmentO = observation or measurement of the dependent variable (if more than one than subscripts O1, O2 etc. is given to indicate temporal order)Random assignment of test units to the experimental groups =

R1. Pre-Experimental Research designsOne-Shot Case Study (Posttest only or After only)X01A single group of test units is exposed to a treatment X.A single measurement on the dependent variable is taken (01). There is no random assignment of test units. The one-shot case study is more appropriate for exploratory than for conclusive research.One-Group Pretest-Posttest Design01 X02A group of test units is measured twice. There is no control group. The treatment effect is computed as 02 01.The validity of this conclusion is questionable since extraneous variables are largely uncontrolled. Static Group DesignEG:X 01CG:02

A two-group experimental design. The experimental group (EG) is exposed to the treatment, and the control group (CG) is not. Measurements on both groups are made only after the treatment.Test units are not assigned at random. The treatment effect would be measured as 01 - 02.2. True Experimental Research designsPretest-Posttest Control Group Design (Before-After with Control Group)EG:R01X02CG:R0304

Test units are randomly assigned to either the experimental or the control group.A pretreatment measure is taken on each group. The treatment effect (TE) is measured as:(02 - 01) - (04 - 03). Selection bias is eliminated by randomization. The other extraneous effects are controlled as follows:02 01= TE + H + MA + MT + IT + I + SR + MO04 03= H + MA + MT + I + SR + MO= EV (Extraneous Variables)The experimental result is obtained by:(02 - 01) - (04 - 03) = TE + ITInteractive testing effect is not controlled.Posttest-Only Control Group Design (After-only with control group)EG : R X 01CG : R 02

The treatment effect is obtained by:TE = 01 - 02Except for pre-measurement, the implementation of this design is very similar to that of the pretest-posttest control group design.3. Quasi-Experimental Research designsQuasi-Experimental Designs: Time Series Design01 02 03 04 05 X 06 07 08 09 010There is no randomization of test units to treatments.The timing of treatment presentation, as well as which test units are exposed to the treatment, may not be within the researcher's control.Multiple Time Series DesignEG : 01 02 03 04 05 X 06 07 08 09 010CG : 01 02 03 04 05 06 07 08 09 010If the control group is carefully selected, this design can be an improvement over the simple time series experiment. Can test the treatment effect twice: against the pretreatment measurements in the experimental group and against the control group. 4. Statistical Research designsStatistical DesignsStatistical designs consist of a series of basic experiments that allow for statistical control and analysis of external variables and offer the following advantages:

The effects of more than one independent variable can be measured.Specific extraneous variables can be statistically controlled.Economical designs can be formulated when each test unit is measured more than once. The most common statistical designs are the randomized block design, the Latin square design, and the factorial design.Randomized Block DesignAn extension of the completely randomized design in which a single extraneous variable that might affect test units response to the treatment has been identified and the effects of this variable are isolated by being blocked out; Is useful when there is only one major external variable, such as store size, that might influence the dependent variable. The test units are blocked, or grouped, on the basis of the external variable. By blocking, the researcher ensures that the various experimental and control groups are matched closely on the external variable.Randomized Block Design Treatment Groups Block Store Commercial Commercial Commercial Number Patronage A B C 1 HeavyABC 2 MediumABC 3 LowABC 4 NoneABC

Latin Square DesignAllows the researcher to statistically control two non-interacting external variables as well as to manipulate the independent variable. Each external or blocking variable is divided into an equal number of blocks, or levels. The independent variable is also divided into the same number of levels. A Latin square is conceptualized as a table, with the rows and columns representing the blocks in the two external variables. The levels of the independent variable are assigned to the cells in the table. The assignment rule is that each level of the independent variable should appear only once in each row and each column, as shown in Table.Latin Square Design Interest in the Store Store Patronage HighMediumLow Heavy B AC Medium C BA Low and none A CB

Factorial DesignIs used to measure the effects of two or more independent variables at various levels. What is the effect of varying the salary offered to graduates on the probability of accepting jobs?In a two-factor design, each level of one variable represents a row and each level of another variable represents a column. Factorial Design Amount of Humor Amount of Store No Medium High Information Humo Humor HumorLow ABC

Medium DEFHighGHI

Limitations of ExperimentationExperiments can be time consuming, particularly if the researcher is interested in measuring the long-term effects.Experiments are often expensive. The requirements of experimental group, control group, and multiple measurements significantly add to the cost of research.Experiments can be difficult to administer. It may be impossible to control for the effects of the extraneous variables, particularly in a field environment. Competitors may deliberately contaminate the results of a field experiment.