Research Methodology

Definition: Business Research

Systematic and Scientific inquiry aimed at providing information to solve managerial problems

Basic (Fundamental) Research

Generalization of natural phenomenon or human behavior

Conducted to solve perplexing questions of a theoretical nature

E.g. Cars running on compressed air

Applied Research

Solution to some practical problems Conducted to reveal answers to

specific questions related to action or policy needs

E.g. Study of declining sales of particular car model

Why business research?

Manager wants improve decision making skill by widening his knowledge

to reduce uncertainty to justify his decision

Business Research

Corporate research: Forecasting Economic trends Business & Industry trends Technology trends Global environment

Financial Research: Portfolio analysis Business opportunities & threats

analysis Cost analysis

Production: Total quality management

Sales & Marketing: Market potential Market share Market segmentation Sales analysis Sales forecasting New product testing Effectiveness of marketing strategies

Human resources: Morale & job satisfaction Employee productivity Organizational effectiveness Training needs

Information system: Data mining Technical support satisfaction Enterprise Resource Planning

(ERP)/Customer Relationship Management (CRM) systems

Types Of Research

Exploratory

Descriptive

Predictive

Exploratory Research

Gather Information around the topic at elementary level

Leads to insights into the problem

E.g. a pharmaceutical company wants to expand

Descriptive Research

Fact finding inquiries Who, what, when, how, where etc No powerful inference is drawn

E.g. mining company databases for describing the nature customer complaints.

Predictive Research

Cause –effect relationship Conducted for well understood

problems

E.g. sale of small cars depends on price, fuel efficiency, engine

Research Process

Formulating Research problem Select Research design Data collection and presentation Data analysis and interpretation Research reporting

Formulating a Research Problem

Problem:Dilemma faced by manager

E.g. Software consulting firm is witnessing high attrition of employees

Management Question

What are the reasons for high attrition rate?

What steps to be taken to control it?

Research Question

What is the employee satisfaction level in the organisation?

What are the corrective measures available?

Investigating Question

Timings, travelling, facilities available, work culture

Annual increment, additional incentives, permission to pursue higher education

Measurement Question

Questions to be asked to employees regarding timings, travelling, facilities available, work culture, additional incentives, permission to pursue higher education etc.

Formulated Research Problem

What characteristics are to be studied?

What data is to be collected? What relations need to be explored?

Research Design

Research design is a plan and structure of investigation to obtain answers to research questions

Exploratory Studies

Aim is to find the practicality to do formal research in this area

The techniques used are Secondary data analysis Experience Survey Focus groups Depth interviews

Secondary Data Analysis Review of prior research studies Survey of concerned literature: Catalogs,

subject guides and electronic indexes in libraries help to identify periodicals and books

Online service using computerThis method supplies excellent background,

identifies suitable methodology and decision making patterns.

Experience Survey

Seeking information from persons experienced in the area of study by interviewing

This technique gives practicality of doing study, facilities available, factors need to be controlled

Focus Groups

Panel of people led by a trained moderator

Facilitator introduces the topic and encourages the group to discuss it among themselves

Quickly and inexpensively grasp the core issues

Depth Interviews

Carried out to obtain information on sensitive issues to discover motives and desires

Respondent is taken in confidence Answers are obtained by probing Indirect questions provide information

on attitude towards the subject

Descriptive Studies

The research design in such studies should be rigid ,no bias ,reliable and should aim at

Description of the characteristics associated with the population

Estimates of the proportion of the population possessing the characteristics

Studying association among these characteristics

Causal Studies

If Changes in one variable are responsible for changes in another variable then the former variable is independent and later is dependent

Drawing inferences about causal relationship require procedures that will reduce bias and increase reliability

Design of Experiments

Replication: repetition of observation Random assignment: each person

must have equal chance of exposure Control: All other factors must be held

constant

Informal Experimental Designs

Before and after without control Design

Level before--treatment-- level after X Y

treatment effect : Y-X

After only control Design

Level control group after ZLevel test group after Y

treatment effect : Y-Z

Before and after with control Design

Control groupLevel before ------------ level after A ZTest groupLevel before--treatment-- level after

X Y

treatment effect : (Y-X)-(Z-A)

Formal Experimental Designs

Completely randomised design Randomised block design Latin square design Factorial design

Completely randomised Design

Det. A Det. B Det. C

Randomisation, Replication

Randomised block Design

Det/Mat Det. A Det. B Det. C

Cotton

Poly.

Ter.

Randomisation, Replication, Local control

Latin square Design

Mat/Cat worker Assistant manager

Cotton A B C

Poly. B C A

Terr. C A B

Randomisation, Replication, Local control

Factorial Design

Treatments are combination of factors at different levels.

Effects of the factors rather than treatments are studied.

Ex Post Facto Design

Widely used in business research Not possible to assign treatments Study of subjects exposed to

treatments to seek causal explanation

Sampling Design Census versus sample

Census: small population

Sample: greater speed, less cost, greater accuracy, inevitable

Sample must represent all characteristics of the population. (no bias, precise)

Types of Sampling

Probability sampling

Non probability sampling

Probability Sampling

Simple random sampling Systematic sampling Stratified sampling Cluster sampling Multi-stage sampling

Non probability Sampling

Judgment sampling

Quota sampling

Sample Size

Sample size should be proportional to population size

Larger sample is required if Greater dispersion within population High confidence level in the estimates Narrow interval range

budget constraint may influence sample size

Measurement and Scaling

Measurement: assigning numbers to objects with a set of rules

Data types: Classification - nominal Order - ordinal Distance - interval Origin - ratio

Tests of Measurement

Validity: the extent to which the measuring tool measures what we are interested in measuring

Reliability: Accuracy and precision of measurement procedure

Practicality: economy, convenience and interpretability

Scaling

Procedure for assignment of numbers to objects

Types of measurement scale Rating Ranking Categorization

Rating Scales

E.g. Survey on mobiles

Simple category Scale

Which payment scheme are you currently using for your mobile?

Pre-paid Post-paid

Nominal data

Multiple choice Single response Scale

Which mobile service according to you is the best?

Vodafone BPL Airtel Reliance Tata Indicom Dolphin/Trump Nominal data

Multiple choice Multiple response Scale

What factors influence you while choosing mobile service? Network Brand name Price Customer service nominal data

Likert scale Summated Rating

“Mobile users are spending on unnecessary calls “

Strongly agree Neither disagree strongly agree agree nor disagree

disagree

interval

Semantic Differential Scale

Reliance service Good __:__:__:__:__:__:__: BadHandset HandsetHigh __:__:__:__:__:__:__: Lowquality qualityNetwork Network

interval

Numerical Scale

Extremely 5 4 3 2 1 Extremelyfavorable

unfavorable

Handset with camera:__More than one handset per person:__

interval

Multiple Rating List Scale

“Please indicate how important or unimportant each parameter is”

ImportantUnimportant

Network congestion 5 4 3 2 1Billing errors 5 4 3 2 1Clarity 5 4 3 2 1Advertiser’s SMS 5 4 3 2 1

interval

Fixed sum Scale

Considering web services and all services other than calling, what is their relative importance to you?

Web services : ____ All other services: ____

sum = 100 ratio

Staple ScaleVodafone

-3 -3-2 -2

Technology -1 Exciting -1Leader 0 product 0

1 1 2 2 3 3

ordinal

Graphic Rating Scale

Rate the satisfaction level from the current service. (Place an X at the position along the line that reflects your judgment)

Very good _______________ Very bad

ratio

Ranking Scale

Paired comparison scale Forced ranking scale Comparative scale

For each pair of Mobile service provider, put a tick besides the one you would most prefer

-- Vodafone -- Airtel-- BPL -- BPL

-- Vodafone -- Airtel

Paired comparison ScaleComparison between Vodafone, BPL, Airtel

SuggestionVodafone BPL Airtel

Vodafone --- 60 20BPL 40 --- 50Airtel 80 50 ---Total 120 110 70Rank order 1 2 3M=(C+0.5N)/nN 0.5667 0.5333 0.4Z 0.17 0.08 -0.25R 0.42 0.33 0 ratio

Forced Rank Scale Rank the following mobile services. Place the number 1 next to most preferred, 2by the second choice etc. Vodafone BPL

AirtelRelianceTata IndicomDolphin/Trump

ordinal

Comparative Scale

Compared to NOKIA 3310,how do you rate the your handset?

Superior all the same inferior1 2 3 4 5

ordinal

Measurement Scale Construction

Arbitrary scaling Consensus scaling Item analysis scaling Cumulative scaling

Arbitrary Scaling

Designed by collecting several items appropriate to the given topic

Each item is scored from 1 to 5 depending degree of favorableness

Total represents respondent’s view

Consensus Scaling

Panel of judges evaluate items on the basis of relevance to topic, potential for ambiguity and level of attitude

Time consuming, costly ,rarely used in management research

Item analysis Scaling Designed by collecting several items

appropriate to the given topic Each item is scored from 1 to 5

depending degree of favorableness On the basis of total score two groups

are formed (top 25% and bottom 25%)

Comparative analysis of each statement of members of these two groups is carried out

Item analysis Scaling

Low HighResponse X f fStrongly agree 5 5 20Agree 4 10 18 Neither ag.nor dis. 3 22 25Disagree 2 25 12Strongly disagree 1 23 10If calculated value of t>1.75 the statement is said to be a good discriminator of the measured attitude

Cumulative Scaling

From total score it is possible to estimate which items were answered positively and negatively

Scalogram i) Vodafone service is good: agree/disagree ii) I prefer Vodafone service over other

services: agree/disagree iii) Vodafone service suits me: agree/disagree iv) I strongly recommend Vodafone: agree/disagreeAgree=1, disagree=0Score: 4-aggreed to all,3 agreed to i),ii),iii) 2 agreed to i),iii) 1 agreed to iii)

Data collection and Presentation

Primary sources (original work of research): Government data (census, economic, labour) laws, regulations

Secondary sources (interpretation of primary data): magazines, newspapers, newscasts, annual reports

Government Sources

National sample survey Economic survey Census survey

http://www.censusindia.net Central Statistical organisation:

Statistical Outlines of India, annual survey of industries

http://mospi.nic.in

Other databases to Business Researchers

CRISIL INFAC www.crisil.com NSE publications National readership survey (cinema, TV,

radio, newspaper) A C Nielsen company ( consumer products) www2.acnielsen.com ORG (pharmaceutical products)Mining Internal sources

TAM (Television Audience measurement)

Adex ( advertising exposures ) IRS (Indian Readership survey) NRS (National Readership survey) indiacar.com autocarindia.com

Survey Methods

Observation method Interview method Questionnaire/schedules Projective techniques Case study method

Observation Method

Information obtained by direct observation without asking the respondents

Scientific tool when systematically planned and recorded

No non-response

Interview Method

Personal interview: Information directly obtained from person concerned

Use of set of predetermined questions: structured interview

Telephone interview

Questionnaire/schedules Method

Questionnaire is mailed to the respondents and replies collected

Schedules are similar to questionnaire but are being filled in by the enumerators

Projective Techniques

Word association Sentence completion Thematic appreciation test Role play

Case Study Method

Qualitative analysis Observation on a social unit or a

person or an institution or a community

An exhaustive study of each and every aspect of the concerned unit and its relationship to other units

Questionnaire Question: short, simple, easy to

understand, arranged in logical sequence, self explanatory, objective with possible answers, no numerical calculation, provide cross check

Classification questions, target questions Covering letter Test on small group, remove deficiency,

final draft