MBA SEMESTER III MB0050 Research Methodology- 4 Assignment Set- 1

Q1. Why should a manger know about research when the job entails managingpeople, products, events, environments, and the like? Answer:T h e m a n a g e r , w h i l e m a n a g i n g p e o p l e , p r o d u c t s , e v e n t s , a n d e n v i r o n m e n t s w i l l invariably face problems, big and small, and will have to seek ways to find long lastingeffective solutions. This can be achieved only through knowledge of research even if consultants are engaged to solve problems.The primary purpose for applied research (as opposed to basic research) is discovering,interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe.Research can use the scientific method, but need not do so. The goal of the researchprocess is to produce new knowledge, which takes three main forms (although, aspreviously discussed, the boundaries between them may be fuzzy):Exploratory research, which structures and identifies new problemsConstructive research, which develops solutions to a problemEmpirical research, which tests the feasibility of a solution using empirical evidenceThe research room at the New York Public Library, an example of secondary researchin progress. Research can also fall into two distinct types:Primary researchSecondary researchIn social sciences and later in other disciplines, the following two research methods canbe applied, depending on the properties of the subject matter and on the objective of theresearch: Qualitative research:Quantitative researchResearch is often conducted using the hourglass model Structure of Research. The hourglass model starts with a broad spectrum for research, focusing in on the requiredinformation through the methodology of the project (like the neck of the hourglass), thenexpands the research in the form of discussion and results.Research and development is nowadays of great importance in business as the level of competition, production processes and methods are rapidly increasing. It is of specialimportance in the field of marketing where companies keep an eagle eye on competitors a n d c u s t o m e r s i n o r d e r t o k e e p p a c e w i t h m o d e r n t r e n d s a n d a n a l y z e t h e n e e d s , demands and desires of their customers.Unfortunately, research and development are very difficult to manage, since the definingfeature of research is that the researchers do not know in advance exactly how to accomplish the desired result. As a result, higher R&D spending does not guarantee"more creativity, higher profit or a greater market share. Q 2. a. How do you evolve research design for exploratory research? Brieflyanalyze. [.b. Briefly explain Independent dependent and extraneous variables in a researchdesign. ]Answer:a. Research design in case of exploratory research studies

Exploratory research studies are also termed as formulative research studies. The mainpurpose of such studies is that of formulating a problem for more precise investigationor of developing the working hypothesis from an operational point of view. The major e m p h a s i s i n s u c h s t u d i e s i s o n t h e d i s c o v e r y o f i d e a s a n d insights. As such theresearch design appropriate for such studies m u s t b e f l e x i b l e e n o u g h t o p r o v i d e opportunity for considering different aspects of a problem under study. Inbuilt flexibilityin research design is needed because the research problem, broadly defined initially, istransformed into one with more precise meaning in exploratory studies, which fact maynecessitate changes in the research procedure for gathering relevant data. Generally,the following three methods in the context of research design for such studies are talkedabout: 1.The survey of concerning literature happens to be the most simple and fruitfulm e t h o d o f f o r m u l a t i n g p r e c i s e l y t h e r e s e a r c h p r o b l e m o r developing hypothesis.Hypothesis stated by earlier workers may be r e v i e w e d a n d t h e i r u s e f u l n e s s b e evaluated as a basis for further research. It may also be considered whether the alreadystated hypothesis suggests new hypothesis. In this way the researcher should reviewand build upon the work already done by others, but in cases where hypothesis havenot yet been formulated, his task is to review the available material for deriving the relevant hypothesis from it. Besides, the bibliographical survey of studies, already madein ones area of interest may as well as made by the researcher for precisely formulatingthe problem. He should also make an attempt to apply concepts and theories developedin different research contexts to the area in which he is himself working. Sometimes theworks of creative writers also provide a fertile ground for hypothesis formulation as suchmay be looked into by the researcher. 2.Experience survey means the survey of people who have had practical experiencewith the problem to be studied. The object of such a survey is to obtain insight into therelationships between variables and new ideas relating to the research problem. For s u c h a s u r v e y , p e o p l e w h o a r e c o m p e t e n t a n d c a n c o n t r i b u t e n e w i d e a s m a y b e carefully selected as respondents to ensure a representation of different types of experience. The respondents so selected may then be interviewed by the investigator.The researcher must prepare an interview schedule for the systematic questioning of informants. But the interview must ensure flexibility in the sense that the respondentss h o u l d b e a l l o w e d t o r a i s e i s s u e s a n d q u e s t i o n s w h i c h t h e i n v e s t i g a t o r h a s n o t previously considered. Generally, the experience of collecting interview is likely to belong and may last for few hours. Hence, it is often considered desirable to send a copyof the questions to be discussed to the respondents well in advance. This will also givean opportunity to the respondents for doing some advance thinking over the variousi s s u e s i n v o l v e d s o t h a t , a t t h e time of interview, they may be able to contributeeffectively. Thus, an e x p e r i e n c e s u r v e y m a y e n a b l e t h e r e s e a r c h e r t o d e f i n e t h e problem more concisely and help in the formulation of the research hypothesis. This,s u r v e y may as well provide information about the practi cal possibilities for d o i n g different types of research.

3. Analyses of insight-stimulating examples are a l s o a f r u i t f u l m e t h o d f o r suggesting hypothesis for research. It is particularly suitable in areas where there is littleexperience to serve as a guide. This method consists of the intensive study of selectedinstance of the phenomenon in which one is interested. For this purpose the existingrecords, if nay, may be examined, the unstructured interviewing may take place, or some other approach may be adopted. Attitude of the investigator, the intensity of thestudy and the ability of the researcher to draw together diverse information into a unifiedinterpretation are the main features which make this method an appropriate procedurefor evoking insights. Now, what sorts of examples are to be selected and studied?There is no clear cut answer to it. Experience indicates that for particular problems certain types of instances are more appropriate than others.One can mention few examples of insight-stimulating cases such as the reactions of strangers, the reactions of marginal individuals, the study of individuals who are intransition from one stage to another, the reactions of individuals from different socialstrata and the like. In general, cases that provi de sharp contrasts or have strikingfeatures are considered relatively more useful while adopting this method of hypothesisformulation. Thus, in an exploratory of formulative research study which merely leads toinsights or hypothesis, whatever method or research design outlined above is adopted,the only thing essential is that it must continue to remain flexible so that many differentfacets of a problem may be considered as and when they arise and come to the noticeof the researcher. b. Dependent and Independent variables:A magnitude that varies is known as avariable. The concept may assume different quantitative values, like height, weight,income, etc. Qualitative variables are not quantifiable in the strictest sense of objectivity.However, the qualitative phenomena may also be quantified in terms of the presence or a b s e n c e o f t h e a t t r i b u t e c o n s i d e r e d . P h e n o m e n a t h a t a s s u m e d i f f e r e n t v a l u e s quantitatively even in decimal points are known as continuous variables. But, all variables need not be continuous. Values that can be expressed only in integer valuesa r e c a l l e d n o n - c o n t i n u o u s v a r i a b l e s . I n s t a t i s t i c a l t e r m , t h e y a r e a l s o k n o w n a s discrete variable. For example, age is a continuous variable; where as the number of children is a noncontinuous variable. When changes in one variable depends upon the There are times and requirements where governments have to indulge in census surveyeven if it is time consuming and very expensive as it needs to formulate policies andwelfare programs for the population.For example, when a government has to count heads of the population, it cannot Gathers information from every individual in a certain group Gathers information from only a section of the population . Multi-stage sampling i s c a r r i e d o u t i n t w o o r m o r e s t a g e s . T h e p o p u l a t i o n i s regarded as being composed of a number of second stage units and so forth. That is, ateach stage, a sampling unit is a cluster of the sampling units of the subsequent stage. Sequential sampling:Double sampling refers to the subsect ion of the final sampleform a preselected larger sample that provided information for improving the finalselection. When the procedure is extended to more than two phases of selection, it isthen, called multi-phase sampling. This is also known as

sequential sampling, as sub-s a m p l i n g i s d o n e f r o m a m a i n s a m p l e i n p h a s e s . D o u b l e s a m p l i n g o r m u l t i p h a s e sampling is a compromise solution for a dilemma posed by undesirable extremes. Thestatistics based on the sample of n can be improved by using ancillary information froma wide base: but this is too costly to obtain from the entire population of N elements.Instead, information is obtained from a larger preliminary sample nL which includes thefinal sample n. Q4. List down various measures of central tendency and explain the differencebetween them? [10 marks].Answer:Measures of Central Tendency Analysis of data involves understanding of the characteristics of the data.The following are the important characteristics of a statistical data: Central tendency Dispersion Skew ness KurtosisIn a data distribution, the individual items may have a tendency to come to a centralposition or an average value. For instance, in a mark distribution, the individual studentsmay score marks between zero and hundred. In this distribution, many students mayscore marks, which are near to the average marks, i.e. 50. Such a tendency of the datato concentrate to the central position of the distribution is called central tendency.C e n t r a l t e n d e n c y o f t h e d a t a i s m e a s u r e d b y s t a t i s t i c a l a v e r a g e s . A v e r a g e s a r e classified into two groups.1. Mathematical averages2. Positional averages Q.5. Select any topic for research and explain how you will use both secondaryand primary sources to gather the required information. [10 marks]Answer: For example, the general statistical information in the number of co -operative creditsocieties in the country, their coverage of villages, their capital structure, volume of b u s i n e s s e t c . , m a y b e t a k e n f r o m p u b l i s h e d r e p o r t s a n d q u o t e d a s b a c k g r o u n d information in a study on the evaluation of performance of cooperative credit societies ina selected district/state. Second, secondary data may be used as bench marks againstwhich the findings of research may be tested, e.g., the findings of a local or regional survey may be compared with the national averages; the performance indicators of aparticular bank may be tested against the corresponding indicators of the banking industry as a whole; and so on. Finally, secondary data may be used as the sole sourceof information for a research project. Such studies as securities Market Behaviour, F i n a n c i a l A n a l y s i s o f companies, Trade in credit allocation in commercial b a n k s , sociological studies on crimes, historical studies, and the like, depend primarily onsecondary data. Year books, statistical reports of government departments, report of public organizations of Bureau of Public Enterprises, Censes Reports etc, serve asmajor data sources for such research studies.

Primary data are directly collected by the researcher from their original sources. In thiscase, the researcher can collect the required date precisely according to his researchneeds, he can collect them when he wants them and in the form he needs them. But thecollection of primary data is costly and time consuming. Yet, for several types of socialscience research required data are not available from secondary sources and they haveto be directly gathered from the primary sources.In such cases where the available data are inappropriate, inadequate or obsolete, p r i m a r y d a t a h a v e t o b e g a t h e r e d . T h e y i n c l u d e : s o c i o e c o n o m i c s u r v e y s , s o c i a l anthropological studies of rural communities and tribal communities, sociological studiesof social problems and social institutions.Marketing research, leadership studies, opinion polls, attitudinal surveys, readership,radio listening and T.V. viewing surveys, knowledge-awareness practice (KAP) studies,farm managements studies, business management studies etc. Q 6. a. Explain the role of Graphs and Diagrams? [5 Marks]b. What are the Types and General rules for graphical representation of data. Answer:In presenting the data of frequency distributions and statistical computations, it is oftendesirable to use appropriate forms of graphic presentations. In additions to tabular forms, graphic presentation involves use of graphics, charts and other pictorial devicessuch as diagrams. These forms and devices reduce large masses of statistical data to aform that can be quickly understood at the glance. The meaning of figures in tabular form may be difficult for the mind to grasp or retain. Properly constructed graphs andcharts relieve the mind of burdensome details by portraying facts concisely, logicallyand simply. They, by emphasizing new and significant relationship, are also useful indiscovering new facts and in developing hypothesis.The device of graphic presentation is particularly useful when the prospective readersare non-technical people or general public. It is useful to even technical people for dramatizing certain points about data; for important points can be more effectivelycaptured in pictures than in tables.However, graphic forms are not substitutes for tables, but are additional tools for theresearcher to emphasize the research findings.Graphic presentation must be planned with utmost care and diligence. Graphic formsused should be simple, clear and accurate and also be appropriate to the data. In planning this work, the following questions must be considered.(a) What is the purpose of the diagram?(b) What facts are to be

emphasized?(c) What is the educational level of the audience?(d) How much time is available for the preparation of the diagram?(e) What kind of chart will portray the data most clearly and accurately? b. Types of Graphs and General Rules The most commonly used graphic forms may be grouped into the following categories:a) Line Graphs or Chartsb) Bar Chartsc) Segmental presentations

MBA Assignment Sem -III, SET 2 MB0050 Research Methodology Q1. Discuss the relative advantages and disadvantages of the different methods of distributing questionnaires to the respondents of a study. Answer : There are some alternative methods of distributing questionnaires to ther espondents. They are: (1) personal delivery, (2) attaching questionnaire to a product (3)advertising questionnaire in a newspaper of magazine, and (4) news stand insets. Personal Delivery:The researcher or his assistant may deliver the questionnaires to thepotential rests with a request to complete them at their convenience. After a day or he cancollect the completed questionnaires from them. Often referred to as the self-administeredquestionnaire method, it combines the advantages of the personal interview and the mailsurvey. Alternatively, the questionnaires may be delivered in person and the completed questionnaires may be returned by mail by the respondents. Attaching Questionnaire to a Product : A f i r m t e s t m a r k e t i n g a p r o d u c t m a y a t t a c h a questionnaire to a product and request the buyer to complete it and mail it back to the firm.The respondent is usually rewarded by a gift or a discount coupon. Advertising the Questionnaires :The questionnaire with the instructions for completionm a y b e a d v e r t i s e d o n a p a g e ' o f m a g a z i n e o r i n s e c t i o n o f newspapers. The potentialrespondent completes it tears it out and m a i l s i t t o t h e a d v e r t i s e r . F o r e x a m p l e , t h e committee of Banks customer services used this method. Management studies for collectinginformation from the customers of commercial banks in India. This method may be useful for large-scale on topics of common interest. News-Stand Inserts :

This method involves inserting the covering letter, questionnaire ands e l f a d d r e s s e d reply-paid envelope into a random sample of news -stand copies of a newspaper or magazine. Disadvantages of Questionnaires The advantages of mail surveys are: They are less costly than personal interviews, as cost of mailing is the same through outthe country, irrespective of distance. They can cover extensive geographical areas. Mailing is useful in contacting persons such as senior business executives who aredifficult to reach in any other way. The respondents can complete the questionnaires at their convenience. Mail surveys, being more impersonal, provide more anonymity than personal interviews. Mail surveys are totally free from the interviewer's bias, as there is no personal contactbetween the respondents and the investigator. C e r t a i n p e r s o n a l a n d e c o n o m i c d a t a m a y b e g i v e n a c c u r a t e l y i n a n u n s i g n e d m a i l questionnaire Disadvantages of Questionnaires The disadvantages of mail surveys are:1 . T h e s c o p e f o r m a i l s u r v e y s i s v e r y l i m i t e d i n a c o u n t r y w h e r e t h e p e r c e n t a g e o f literacy is very low.2 . T h e r e s p o n s e r a t e o f m a i l s u r v e y s i s l o w . H e n c e , t h e r e s u l t i n g s a m p l e w i l l n o t b e a representative one. Q2. In processing data, what is the difference between measures of central tendency andmeasures of dispersion? What is the most important measure of central tendency anddispersion? Answer: Measures of Central Tendency: Analysis of data involves understanding of thecharacteristics of the data. The following are the important characteristics of a statistical data: Central tendency Dispersion Skewness KurtosisIn a data distribution, the individual items may have a tendency to come to a central positionor an average value. For instance, in a mark distribution, the individual students may scoremarks between zero and hundred. In this distribution, many students may score marks,which are near to the average marks, i.e. 50. .Such a tendency of the data to concentrate tothe central position of the distribution is called central tendency. Central tendency of the datais measured by statistical averages. Averages are classified into two groups. 1.Mathematical averages 2.Positional averages Arithmetic mean, geometric mean and harmonic mean are mathematical averages. Mediana n d m o d e a r e p o s i t i o n a l a v e r a g e s . T h e s e s t a t i s t i c a l m e a s u r e s t r y t o u n d e r s t a n d h o w individual values in a distribution concentrate to a central

value like average. If the values of distribution approximately come near to the average value, we conclude that the distributionhas central tendency. Arithmetic mean is the most commonly used statistical average. It isthe value obtained by dividing the sum of the item by the number of items in a series. Dispersion :Dispersion is the tendency of the individual values in a distribution to spreadaway from the average. Many economic vari8bleSilke income, wage etc., are widely variedf r o m t h e m e a n . D i s p e r s i o n i s a s t a t i s t i c a l m e a s u r e , w h i c h u n d e r s t a n d s t h e d e g r e e o f variation of items from the average. Objectives of Measuring Dispersion: Study of dispersion is needed to:1.To test the reliability of the average2.To control variability of the data3.To enable comparison with two or more distribution with regard to their variability4.To facilitate the use of other statistical measures.Measures of dispersion points out as to how far the average value is representative of theindividual items. I f the dispersion value is small, the average tends to closely represent theindividual values and it is reliable. When dispersion is large, the average is not a typicalrepresentative value. Measures of dispersion are useful to control the cause of variation. Inindustrial production, efficient operation requires control of quality variation. Measures of variation enable comparison of two or more series with regard to their variability. A high degree of variation would mean little consistency and low degree of variation would meanhigh consistency. Properties of a Good Measure of Dispersion : A good measure of dispersion should besimple to understand. 1.It should be easy to calculate 2.It should be rigidly defined 3.It should be based on all the values of a distribution 4.It should be amenable to further statistical and algebraic treatment. 5.It should have sampling stability 6.It should not be unduly affected by extreme values. Measures of Dispersion 1 R a n g e 2. Quartile deviation3. Mean deviation 4. Standard deviation 5 . L o r e n z c u r v e Range, Quartile deviation, Mean deviation a n d S t a n d a r d d e v i a t i o n a r e m a t h e m a t i c a l measures of dispersion. Lorenz curve is a graphical measure of dispersion. Measures of dispersion can be absolute or relative. An absolute measure of dispersion is expressed inthe same unit of the original data. When two sets of data are expressed in different units,relative measures of dispersion are used for comparison. A relative measure of dispersion isthe ratio of absolute measure to an appropriate average.The following are the important relative measures of dispersion. 1.Coefficient of range 2.Coefficient of Quartile deviation 3.Coefficient of Mean deviation 4.Coefficient of Standard deviation

Q3. What are the characteristics of a good research design? Explain how the researchdesign for exploratory studies is different from the research design for descriptiveand diagnostic studies. Answer:The need for the methodologically designed research: a. In many a research inquiry, the researcher has no idea as to how a c c u r a t e t h e results of his study ought to be in order to be useful. Where such is the case, theresearcher has to determine how much inaccuracy may be tolerated. In a quite fewcases he may be in a position to know how much inaccuracy his method of researchwill produce. In either case he should design his research if he wants to assurehimself of useful results.b. In many research projects, the time consumed in trying to ascertain what the data mean after they have been collected is much greater than the time taken to design aresearch which yields data whose meaning is known as they are collected.c. The idealized design is concerned with specifying the optimum research procedure that could be followed were there no practical restrictions. Characteristics of Good Research Design : 1. It is a series of guide posts to keep one going in the right direction.2. It reduces wastage of time and cost.3. It encourages co-ordination and effective organization.4. It is a tentative plan which undergoes modifications, as circumstances demand, whenthe study progresses, new aspects, new conditions and new relationships come tolight and insight into the study deepens.5. It has to be geared to the availability of data and the cooperation of the informants.6. It has also to be kept within the manageable limits Research design in case of exploratory research studies : Exploratory research studiesare also termed as formulative research studies. The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the workinghypothesis from an operational point of view. The major emphasis in such studies is on thediscovery of ideas and insights. As such the research design appropriate for such studiesmust be flexible enough to provide opportunity for considering different aspects of a problemunder study. Inbuilt flexibility in research design is needed because the research problem,broadly defined initially, is transformed into one with more precise meaning in exploratorys t u d i e s , w h i c h f a c t m a y n e c e s s i t a t e c h a n g e s i n t h e r e s e a r c h p r o c e d u r e f o r g a t h e r i n g relevant data. Generally, the following three methods in the context of research design for such studies are talked about: 1.The survey of concerning literature happens to be the most simple and fruitfulmethod of formulating precisely the research problem or developing hypothesis. Hypothesisstated by earlier workers may be reviewed and their usefulness be evaluated as a basis for further research. It may also be considered whether the already stated hypothesis suggestsnew hypothesis. In this way the researcher should review and build upon the work alreadydone by others, but in cases where hypothesis have not yet been formulated, his task is toreview the available material for deriving the relevant hypothesis from it. Besides, thebibliogra phical survey of studies, already made in one's area of interest may as well asmade by the researcher for precisely formulating the problem. He should also make an attempt to apply concepts and theories developed in different research contexts to the areain which he is

himself working. Sometimes the works of creative writers also provide a fertileground for hypothesis formulation as such may be looked into by the researcher. 2.Experience surveymeans the survey of people who have had practicalexperience with the problem to be studied. The object 'of such a survey is to obtain inSightinto the relationships between variables and new ideas relating to the research problem. For such a survey, people who are competent and can contribute new ideas may be carefullyselected as respondents to ensure a representation of different types of experience. Therespondents so selected may then be interviewed by the investigator. The researcher mustprepare an interview schedule for the systematic questioning of informants. But the interviewmust ensure flexibility in the sense that the respondents should be allowed to raise issuesand questions which the investigator has notpreviously considered. Generally, theexperience of collecting interview is likely to be long and may last for few hours. Hence, it iso f t e n c o n s i d e r e d d e s i r a b l e t o s e n d a c o p y o f t h e q u e s t i o n s t o b e d i s c u s s e d t o t h e respondents well in advance. This will also give an opportunity to the respondents for doingsome advance thin1<ing over the various issues involved so that, at the time of interview,t f i e 1 may be able to contribute effectively. Thus, an experience survey may enable theresearcher 'to define the problem more concisely and help in the formulation of the researchhypothesis. This, survey may as well provide information about the practical possibilities for doing different types of research. 3. Analysis of insight simuating examples are als o a f r u i t f u l m e t h o d f o r suggesting hypothesis for research. It is particularly suitable in areas where there is littleexperience to serve as a guide. This method consists of the intensive study of selectedi n s t a n c e o f t h e p h e n o m e n o n i n w h i c h o n e i s i n t e r e s t e d . F o r t h i s p u r p o s e t h e e x i s t i n g records, if nay, may be examined, the unstructured interviewing may take place, or someother approach may be adopted. Attitude of the investigator, the intensity of the study andthe ability of the researcher to draw together diverse information into a unified interpretationa r e t h e main features which make this method an appropriate procedure for e v o k i n g insights. Now, what sorts of examples are to be selected and studied? There is no clear cutanswer to it. Experience indicates that for particular problems certain types of instances aremore appropriate than others. One can mention few examples of 'insight-stimulating' casess u c h a s t h e r e a c t i o n s o f s t r a n g e r s , t h e r e a c t i o n s o f m a r g i n a l i n d i v i d u a l s , t h e s t u d y o f individuals who are in transition from one stage to another, the reactions of individuals fromdifferent social strata and the like. In general, cases that provide sharp contrasts or have s t r i k i n g features are considered relatively more useful while adopting this m e t h o d o f hypothesis formulation. Thus, in an exploratory of formulative research study which merelyleads to insights or hypothesis, whatever method or research design outlined above isadopted, the only thing essential is that it must continue to remain flexible so that manydifferent facets of a problem

may be considered as and when they arise and come to the notice of the researcher. Research design in case of descriptiveand diagnostic research studies :Descriptive research studies are those studies which are concerned with describing thecharacteristics of a particular individual, or of a group, where as diagnostic research studiesdetermine the frequency with which something occurs or its association with something else.T h e s t u d i e s c o n c e r n i n g w h e t h e r c e r t a i n v a r i a b l e s a r e a s s o c i a t e d a r e t h e e x a m p l e o f diagnostic research studies. As against this, studies concerned with specific predictions,with narration of facts and characteristics concerning individual, group of situation are allexamples of descriptive research studies. Most of the social research comes under thiscategory. From the point of view of the research design, the descriptive as well as diagnosticstudies share common requirements and as such we may group together these two types of research studies. In descriptive as well as in diagnostic studies, the researcher must be ableto define clearly, what he wants to measure and must find adequate methods for measuringit along with a clear cut definition of population he wants to study. Since the aim is to obtaincomplete and accurate information in the said studies, the procedure to be used must becarefully planned. The research design must make enough provision for protection againstbias and must maximize reliability. With due concern for the economical completion of theresearch study, the design in such studies must be rigid and not flexible and must focusattention on the following: 1.Formulating the objective of the study 2.Designing the methods of data collection 3.Selecting the sample 4.Collecting the data 5.Processing and analyzing the data 6.Reporting the findings.In a descriptive diagnostic study the first step is to specify the objectives with sufficientprecision to ensure that the data collected are relevant. If this is not done carefully, the study may not provide the desired information. Then comes the question of selecting themethods by which the data are to be obtained. While designing data-collection procedure,adequate safeguards against bias and unreliability must be ensured. Which ever method isselected, questions must be well examined and be made unambiguous; interviewers mustbe instructed not to express their own opinion; observers must be trained so that theyuniformly record a given item of behaviour.More often than not, sample has to be designed. Usually, one or more forms of probabilitysampling or what is often described as random sampling, are used. To obtain data, free fromerrors introduced by those responsible for collecting them, it is necessary to supervise closely the staff of field workers as they collect and record information. Checks may be setu p to ensure that the data collecting st affs performs their duty honestly a n d w i t h o u t prejudice. The data collected must be processed and analyzed. This includes steps likecoding the interview replies, observations, etc., tabulating the data; and performing several

statistical computations.Last of all, comes the question of reporting the findings. This is the task of communicatingthe findings to others and the researcher must do it in an efficient manner. Q4. How is the Case Study method useful in Business Research? Give two specificexamples of how the case study method can be applied to business research. Answer : Meaning of Case Study: Case study is a method of exploring and analyzing the life of a social unit or entity, be it a person, a family, an institution or a community. The aim of case study method is to locate or identify the factors that account for the behaviour patterns of a given unit, and its relationshipwith the environment. The case data are always gathered with a view to attracting then a t u r a l h i s t o r y o f t h e s o c i a l u n i t , a n d i t s r e l a t i o n s h i p w i t h t h e s o c i a l f a c t o r s a n d f o r c e s operative and involved in this surrounding milieu. Case Study as a Method of Business Research : In-depth analysis of selected cases is of particular value to business research when a complex set of variables may be at work ingenerating observed results and intensive study is needed to unravel the complexities. For instance, an in-depth study of a firm's top sales people and comparison with the worst salespeople might reveal characteristics common to stellar performers. The explor atoryinvestigator is best served by the active curiosity and willingness to deviate from the initialplan, when the finding suggests new courses of enquiry, might prove more productive. Examples of Case Study method applied to Business Research:Example 1. Bajaj Auto: Evaluating the Working Capital Requirements: Over the past two decades, the Indian automobile industry has grown leaps andbounds, at a Compound Annual Growth Rate (CAGR) of 9%. At present, it is thesecond-largest two-wheeler and fourth-largest commercial vehicle manufacturerin the world. The automotive industry in India is intensely competitive and highlyfragmented, with number of players operating in more than one segment of theindustry. The nature of the industry a ccounts for high capital expenditures andm a y n o t g e n e r a t e h i g h r e t u r n s o n t h e c a p i t a l i n v e s t e d , b u t o v e r t h e p a s t f e w years, the players in this industry have been giving high returns to shareholdersand operating on negative working capital. One such dominant player in the autoindustry, Bajaj Auto is experiencing negative working capital for the past 5 yearsand giving high returns to its shareholders. However, since the impact of workingcapital fluctuations depends on the nature of the industry, for how long can BajajAuto continue to have negative working capital? Indian Automobile Industry: An Overview : The automobile sector is a key driver of industrial growth in the global and Indianeconomy. According to the Organization International des Constructeursd ' A utomobiles,s 2006, annual turnover of the global auto industry is around$5.09 trillion, which is equivalent to the sixth largest economy i n t h e w o r l d . 2 Moreover, the industry is an indirect contributor to several other sectors of theeconomy and it is treated as a leading economic sector. The Indian automotive i n d u s t r y i s d i s t i n g u i s h e d a s a k e y

c o m p o n e n t a n d c o r e d r i v e r o f n a t i o n a l economy. Over the decades, the industry has undergone rapid transformation,witnessed enormous prospects and emerged as most attractive markets in theworld.During 1980s, there were very few players in the Indian automotive sector with low volumes of production, old and substandard technologies. The industry took a n e w dimension when Indian government de -licensed and opened u p t h e industry to Foreign Direct Investments (FDIs) in 1993 which encouraged manyglobal players to enter the Indian auto industry. Further, economic liberalisationreforms contributed to the robust growth of the industry. At that time, a total of 17 new ventures came up which included General Motors, Ford, Toyota, Honda,Hyundai and Fiat, resulting in rapid expansion and growth of the industry.During 1980s, there were very few players in the Indian automotive sector withlow volumes of production, old and substandard technologies. The industry took a n e w d i m e n s i o n w h e n I n d i a n g o v e r n m e n t d e - l i c e n s e d a n d o p e n e d u p t h e industry to Foreign Direct Investments (FDIs) in 1993 which encouraged manyglobal players to enter the Indian auto industry. Further, economic liberalizationreforms contributed to the robust growth of the industry.The Indian auto industry constitutes two set of players - automobile componentmanufacturers (involved in manufacturing parts, components, bodies a ndchassis) and the vehicle manufacturers (engaged in assembling all thecompone nts into an automobile), which are also referred to as OriginalEquipment Manufacturers (OEMs). The Indian auto industry is highly competitivew i t h l a r g e number of players in each segment of the industry m a n u f a c t u r i n g commercial vehicles, passenger vehicles, two-wheelers, threewheelers and autocomponents.Most of the players are present in more than one segment of the industry . Theindustry is fragmented and is mainly dominated by small-scale and unorganizedplayers. There are nearly 6,400 players, of which 6% belong to organized sectorand the remaining belong to unorganized sector.3 However, in terms of valueaddition organized players represent nearly 77% of the output in the sector.4Over the past years (2000-2001 to 2004-2005) the domestic auto industry hasb e e n g r o w i n g a t 1 4 . 2 % C A G R . 5 I n d i a h o l d s the highest position in the three -wheeler market and occupies fifth l a r g e s t c o m m e r c i a l v e h i c l e m a r k e t i n t h e world. India is one of the global giants in the two-wheeler industry manufacturingmotorcycles, scooters and mopeds. In the last decade, two -wheeler industry inIndia grew at a CAGR of more than 10%. This growth was fuelled by shift in the d e m a n d m i x , increasing income, rapid urbanization and changing s p e n d i n g patterns.The auto industry has been performing well in both domestic and internationalmarkets. During 2005-2006, exports of the industry comprised about 5% of totale x p o r t s f r o m I n d i a , t h e i r t o t a l v a l u e w a s

a r o u n d I N R 1 6 , 0 9 , 4 0 0 , o f w h i c h I N R 7,97,400 were vehicle exports and INR 8,12,000 were auto component exports.6According to the Society of Indian Automobile Manufacturers (SIAM), automobiles a l e s ( i n c l u d i n g p a s s e n g e r v e h i c l e s , c o m m e r c i a l v e h i c l e s , t w o - w h e e l e r s a n d three-wheelers) in the overseas markets increased to 1.53 million units in 2008-09 from 1.23 million units in 2007-2008. In spite of the global slowdown, exportsof Indian auto vehicles increased - export of passenger vehicles increased from 2,18,401 units in 2007-2008 to 3,35,739 units in 2008-2009. A total of 2,30,000commercial vehicle (cars, vans, Sports Utility Vehicles and trucks) were exportedbetween January and July 2009, resulting in a growth of 18%.Despite the economic downturn during 20072009, overall production(passenger vehicles, comme rcial vehicles, twowheelers and three-wheelers)increased from 10.85 million vehicles in 2007 2008 to 11.17 million vehicles in2 0 0 8 - 2 0 0 9 . 7 P r o d u c t i o n o f p a s s e n g e r v e h i c l e s i n c r e a s e d f r o m 1 . 7 7 m i l l i o n t o 1.83 million while twowheelers touched 8.41 million from 8.02 million.8According to an analyst at Ernst & Young, passenger vehicle sales in the countrywill grow at a CAGR of 12% to touch 3.75 million units by 2014 as against 1.89 million units at the end of 2008-2009.9 Similarly, as per CARE Research, a creditrating agency, domestic two-wheeler sales will grow at a CAGR of 8.8% by 2014i.e., 11.3 million.T w o - w h e e l e r s , w h i c h a c c o u n t f o r a m a j o r s h a r e o f i n d u s t r y v o l u m e h a s b e e n growing at a CAGR of 9.6%. Until late 1990s, two-wheeler market was dominatedby scooters, contributing higher percentage of sales. However, with changing t i m e s , w i t h the focus driven on better fuel efficiency and faster mobility, a structural shift towards motorcycle which constitutes 80% of the marketW i t h i n t h e two-wheeler segment, motorcycles occupy 80.6% and their s a l e s account for around 80% of total sales . Cost, ownership and economies of scaleare the key purchase criteria of this segment. Though the industry witnessed aslowdown in Financial Year (FY) 2008, it picked up in the subsequent year andgrew by 2.6%. Ernst & Young analysts state that, "Though FY09 was a tough yearfor two-wheelers like it was for other automotive sectors, the variation in growthwith respect to the five-year CAGR was the lowest comparatively. Consideringt h e d e m o g r a p h i c s a n d i n c o m e l e v e l s i n t h e c o u n t r y , t h e p u r c h a s e o f t w o - wheelers for regular mobility is very high, thus the domestic potential needs noreaffirmation. We believe that focusing on rural potential will pay dividends forthe domestic market and the export volume growth should remain intact." Theexports of this segment are moving at a CAGR of 31% in FY2005-2009, crossingthe 1 million mark in FY2009H e r o Honda is the market leader with a market share of 42% in Indian two-wheeler segment followed by Baj aj Auto, the second largest with 27% share.There are only few established players in this segment

a n d t h e y p o s e t o u g h competition to each other.I n a n e m e r g i n g e c o n o m y l i k e I n d i a , t h r e e - w h e e l e r s a r e a l o w c o s t m e a n s o f transport in cities and towns. India is the largest three wheeler market in the world. These vehicles are used as passenger vehicles (auto-rickshaws) as well ass m a l l c a p a c i t y c o m m e r c i a l v e h i c l e s ( p i c k - u p v e h i c l e s ) . I t i s a s m a l l b u t f a s t growing segment, with production increased from 2,03,234 ve hicles in 2001 to3,74,414 vehicles in 2005. Three-wheeler sales in India touched a new record of 0 . 3 6 m i l l i o n registering a growth of 10.5% CAGR over the last 6 years (2004 2009).11 Ernst & Young viewed this growth as, "Three -wheelers have played ani m p o r t a n t r o l e i n t h e l a s t - m i l e c o n n e c t i v i t y b o t h f o r p a s s e n g e r a s w e l l a s commercial purposes. The existence of a large number of small -businessespromises a sustainable demand in t h e d o m e s t i c m a r k e t . V e r y l i t t l e h a s b e e n done in terms of product innovation and manufacturers will have to focus on it. Going forward, this segment will face competition from small c o m m e r c i a l vehicles in the commercial space, for which the manufacturers have to rethinkproduct positioning and marketing strategies.B a j a j A u t o i s a n established player in both two-wheeler and threew h e e l e r market segment. It is one of the leading players (41.3%) in the three-wheelersegment. Total exports of the three wheelers reached 141.24 thousand units,registering a growth of 44.5% CAGR over the last 6 years (20032009) with alarge contribution i.e., 97% being accounted by Bajaj Auto. Bajaj Auto's Working Capital Requirement: Is Negative Working CapitalPositive? Bajaj Auto is a flagship company of the Bajaj Group which is amongst the top 10business houses in India. Bajaj Auto is ranked as the world's fourth largest twoand three-wheeler manufacturer and is well known exporter (it exports to severalcountries - Latin America, Africa, Middle East, South and South East Asia). Thehistory of the company dates back to 1965, when Rahul Bajaj (present chairmano f t h e G r o u p ) t o o k c h a r g e o f t h e b u s i n e s s a n d t u r n e d t h e c o m p a n y i n t o n e w heights.T h e p r e d e c e s s o r o f B a j a j A u t o w a s f o r m e d o n N o v e m b e r 2 9 t h 1 9 4 5 a s M / s Bachraj Trading Ltd. In 1948, it started selling imported two- and three-wheelersand in the subsequent year, it became public limited company. After obtaining manufacturing license from the Indian government in early 1960s, the companystarted manufacturing its own two wheelers and by 1970 it reached a mark of 10,000 vehicles. In the same year, it introduced new models of two-wheelers andlaunched threewheeler vehicles. Based on the consumer categories andapproximate price points, Bajaj Auto classifies motorcycles into three segments -Entry segment (these are typically 100 cc motorcycles at a price point of INR35,000, Bajaj Auto is in this segment through the Platina), Executive segment(they comprise 100 cc to 135 cc motorcycles and priced between INR 40,000 to I N R 5 0 , 0 0 0 , i t has two brands in this segment - XCD and Discover) a n d Performance segment (these are sleek and high performing motorcycles withp r i c e p o i n t s i n e x c e s s o f I N R 5 0 , 0 0 0 a n d P u l s a r i s t h e f l a g s h i p

b r a n d i n t h i s segment).During 1980s with the entry of Japanese and Italian scooter companies into theIndian market, domestic players like Bajaj Auto faced tough competition as theforeign companies adopted sophisticated technology while the latter used low-e n d t e c h n o l o g y . H o w e v e r , B a j a j A u t o , w i t h i t s s t r o n g b r a n d i m a g e a n d o t h e r competency features maintained dominant position in the Indian auto industry.Soon, the company started investing in high -end technologies and focused onhigh-end offering, particularly in high-powered motorcycles. Year-on-year thecompany increased its production size and attained economies of scale.I n f i s c a l y e a r 1 9 9 4 - 1 9 9 5 , i t p r o d u c e d 1 m i l l i o n v e h i c l e s a n d b e c a m e a w e l l - established exporter to several countries. It is India's largest exporter of two- andt h r e e - w h e e l e r s . I n 2006-2007, exports of Bajaj motorcycles grew by 82% to3,00,656 units and three -wheelers by 87% to 1,40,645 vehicles. In the s a m e financial year, over 1,50,000 two-wheelers and three-wheelers sales were madeto Sri Lanka and also over 1,00,000 vehicles were sold to Latin America.Besides, establishing an assembly plant in Nigeria, Bajaj Auto in FY20062007established a 95% owned joint venture in Indonesia which in coming years will play a key role in expanding the company's footprint in South-East Asia.The global turmoil and resultant low demand affected the Indian auto industry.Though the production volume increased, the third quarter of FY2008-2009 wasparticularly tough. Average monthly sales of motorcycles in India plunged byo v e r 1 7 % i n t h e 3 r d q u a r t e r o f 2 0 0 8 - 2 0 0 9 w i t h t h a t o f 2 n d q u a r t e r - f r o m a n average of 5,24,939 units per month to 4,35,114 units. The sales and profits of Bajaj Auto tumbled - net sales and other operating income fell by 2.6% to INR8 8 . 1 1 b i l l i o n i n 2 0 0 8 - 2 0 0 9 . H o w e v e r , t h e c o m p a n y s u c c e e d e d i n m a i n t a i n i n g doubledigit operating Earning Before Interest, Tax, Depreciation andAmortisati on (EBITDA) margin of 13.6% of net sales and other operating income f o r 2008-2009 rising to 15.2% margin for the fourth quarter (2008 -2009). I n addition, the robust exports of the company made some positive news. During2 0 0 8 - 2 0 0 9 , i t e x p o r t e d a n a l l - t i m e h i g h o f 7 , 7 2 , 5 1 9 u n i t s o f t w o a n d t h r e e - wheelers, representing a growth of 25% over the previous year (2007-2008).However, since past 5 years, current liabilities of the company exceeded currentassets resulting in a negative working capital . Nevertheless, Bajaj Auto is takingn e c e s s a r y m e a s u r e s t o i m p r o v e i t s w o r k i n g c a p i t a l . B u t t h e c o m p a n y i s n o t considering this as negative remark as the other players in the industry are alsoe x p e r i e n c i n g n e g a t i v e w o r k i n g c a p i t a l . E x p e r t s viewed that the top Indiancompanies with high return on c a p i t a l h a v e o p e r a t e d o n n e g a t i v e w o r k i n g capital. Interestingly, companies belonging to FMCG and auto industry are knownfor good returns to their shareholders (both in terms of dividends and capital gains) though they showed a negative working capital. In addition to Bajaj Auto,Hero Honda which is the market leader and TVS, the third largest in this segmenta r e a l s o o p e r a t i n g o n n e g a t i v e working capital but are giving high returns totheir shareholders. Due t o t h e i m p r o v e d i n v e n t o r y t u r n o v e r r a t i o a n d b e t t e r working capital management cycles, these companies are enjoying the wide gapbetween the days of

cash receipts from their debtors to payment days to theircreditors. In short, they are enjoying the time period between number of daysthe payment to creditors and their receivables.S i n c e , t h e n a t u r e o f t h e i n d u s t r y h a s a c o n s i d e r a b l e i n f l u e n c e i n t h e w o r k i n g capital management, for how long can the nature of auto industry allow these companies to continue negative working capital? However, the big question is towhat extent the nature of industry will determine the working capitalrequirement ? Example 2.India's Suguna Poultry Farm Ltd.: Can it Go Pan- India with its CurrentBusiness Model? The Indian poultry industry plays a prominent role in the agriculture s e c t o r contributing 2.5%to the country's GDP. In just a few decades, the industry hastransformed from a backyard activity to a highly technology-driven industry. Thisr a p i d g r o w t h w a s a i d e d b y t h e d e v e l o p m e n t o f t h e c o n t r a c t f a r m i n g m o d e l . Adopting this model, the Coimbatore based Suguna Poultry Farm Ltd. (Suguna)stumbled upon its unique business model while trying to find a solution to theproblems it faced in the course of its operations. It has successfully establishedi t s e l f i n t h e I n d i a n p o u l t r y i n d u s t r y a n d i s currently the world's fourth largest p l a y e r i n t h e b r o i l e r s e g m e n t . I t s o p e r a t i o n s a r e , h o w e v e r , c e n t r e d i n t h e southern part of India. In 2008, Suguna announced its plans to expand acrossIndia alon g with its efforts to strengthen its backward and forward integration p r o c e s s e s . W i t h c o m p e t i t i o n g e t t i n g i n t e n s i f i e d , w i l l t h e c o m p a n y b e a b l e t o sustain its current rate of growth if it expands across the country? What possiblechallenges could the company face? Indian Poultry Sector: Structure and Performance India has a cultivable land of 184 million hectares, which helps in producingv a r i o u s i t e m s . D e s p i t e t h e b o o m i n t h e s e r v i c e s e c t o r s ( s o f t w a r e a n d I T ) , agriculture is still considered as the backbone of the Indian economy with morethan half of the population associated with it. The percentage share of agri culture in GDP was 18.5% in 2006-2007. Out of the agriculture sub sectors,livestock is one of the major contributors. The contribution of livestock sector toagricultural GDP grew from 22.51% in 1999 -2000 to 24.72% in 20042005. Thecontribution of livestock output to the country's GDP was 6% in 2003-2004.The share of poultry in the livestock sector is significant compared to other sub-s e c t o r s like buffalo, goat and sheep. Out of the total meat production in thecountry, poultry meat comprises of 25%. By 2004, the annual g r o w t h r a t e o f poultry was moving at 15%per annum whereas growth rates of other meats wereadvancing at only 5%per annum. The poul try industry contributed 2.5% to thecountry's GDP, which amounted to INR 29,000 crore in 2004.O v e r t h e years, the poultry industry underwent tremendous changes in

itsstructure and operations. In just four decades (beginning from 1 9 6 0 ' s ) , t h e industry has grown from a subsistence activity into an organised, scientificallyoriented and technologicallydriven industry. The structure of the poultryi n d u s t r y , h o w e v e r , i s n o t uniform and differs region wise within the country.Broadly, the poultry industry in India consists of two groups organised a n d unorganised sectors. The contribution made by the organised sector accounts to7 0 % a n d t h e r e m a i n i n g 3 0 % i s c o n t r i b u t e d b y t h e u n o r g a n i s e d s e c t o r . T h e organised sector uses intensive farming, modern technology and sophisticatedbreeding systems to generate greater productivity. The unorganised sector, onthe other hand, has little or no promotion for brands. Indeed, most of them donot sell under any brand. The poultry sector has evolved through three definitephases namely traditional, semi-commercial and commercial system. Phases in the Evolution of Poultry Sector : The traditional system of farmingwas regarded as a 'backyard business', where smallscale farmers raised the fowl(poultry birds) for selfconsumption and occasionally sold the surplus atneighbourhood/local markets. Farmers were disenchanted with agriculture due toirregular (uncertain) income, erratic climatic conditions, inadequate irrigation f a c i l i t i e s , l i m i t e d c r e d i t sources and increased debt burd en. Farmers, it wasargued, were gambling with monsoons. As a result, the farmers took activeinterest in non-crop sector (poultry and dairy). Although unorganised p o u l t r y farming did not follow any organised form of production, it played an importantr o l e i n t h e r u r a l e n v i r o n m e n t , a s i t w a s a s o u r c e o f i n c o m e a s w e l l a s employment. The traditional system, however, faced several limitations l i k e unawareness of veterinary services, limited/inadequate infrastructure, highincid ence of disease, poor quality of inputs, etc., which did not enablefarmers/cultivat ors to achieve optimum level of productivity.The commercial system of farming adopted more specialised and sophisticated techniques focusing on bulk production and required low levels of l a b o u r . B y adopting modern technology, farmers were able to produce poultry for specificu s e s - l a y e r s f o r e g g s , b r o i l e r f o r m e a t e t c . T o f u r t h e r e n c o u r a g e t h e m , t h e government offered several incentive schemes. For instance, incentives weregiven to players who adopted modern technologies and achieved higherp r o d u c t i v i t y . I n a d d i t i o n , m a n y r e s e a r c h i n s t i t u t i o n s w e r e s e t u p a n d o t h e r facilities like training, veterinary care, technical support and insurance schemeswere provided, which helped the growth of commercial farmers/integrators.T h e f a s t g r o w i n g m a r k e t p r o m p t e d i n t e g r a t o r s t o l o o k f o r w a y s a n d m e a n s t o increase market share, maintain low transportation costs, achieve economies of scale and high productivity. However, small farmers could not fully participate inthe rapidly growing poultry market, due to the challenges like diseconomies of s c a l e , p o o r i n f r a s t r u c t u r e , l a c k o f p r o p e r t r a n s p o r t a t i o n c h a n n e l s , e t c . , t h e y found it hard to survive independently. To fill this gap between the integrators and

small farmers, the 'contract farming model' emerged. The model involves ana g r e e m e n t b e t w e e n c o m p a n y a n d f a r m e r , w h e r e i n t h e c o m p a n y a g r e e s t o supply all the necessary inputs to the farmers at a predetermined price for theproduction of a specific product. The integrator supplies inputs (Day-Old-Chicks(DOC), medicines and feed) to the contract farmers for the production of broilerand/or eggs. After the conversion process, which takes an average period of 6weeks (42 -45 days) poultry farms take back the end products from the farmersby paying a price (growing charges). Contract farming in the poultry industry f o l l o w s t h e c e n t r a l i s e d m o d e l , w h i c h i n v o l v e s v e r t i c a l i n t e g r a t i o n w i t h s t r i c t quality control and high level of processing.

Q5. What are the differences between observation and interviewing as methods of data collection? Give two specific examples of situations where either observation or interviewing would be more appropriate.Answer: Observation as a method of data collection has certain characteristics. 1.It is both a physical and a mental activity : The observing eye catches many thingsthat are present. But attention is focused on data that are pertinent to the given study. 2.Observation is selective: A researcher does not observe anything and everything, butselects the range of things to be observed on the basis of the nature, scope and objectivesof his study. For example, suppose a researcher desires to study the causes of city roadaccidents and also formulated a tentative hypothesis that accidents are caused by violationof traffic rules and over speeding. When he observed the movements of vehicles on the road, many things are before his eyes; the type, make, size and colour of the vehicles, thepersons sitting in them, their hair style, etc. All such things which are not relevant to hisstudy are ignored and only over speeding and traffic violations are keenly observed by him. 3.Observation is purposive and not casual : It is made for the specific purpose of notingthings relevant to the study. It captures the natural social context in which persons behaviour occur. It grasps the significant events and occurrences that affect social relations of theparticipants 4.Observation should be exact and be based on standardized tools of research andsuch as observation schedule, social metric scale etc., and precision instruments, if any.The main virtue of observation is its directness: it makes it possible to study behaviour as itoccurs. The researcher need not ask people about their behaviour and interactions; he cansimply watch what they do and say.Data collected by observation may describe the observed phenomena as they occur in their n a t u r a l settings. Other methods introduce elements or artificiality into the r e s e a r c h e d situation for instance, in interview; the respondent may not behave in a natural way. There isno such artificiality in observational studies, especially when the observed persons are notaware of their being observed. Observations is more suitable for studying subjects who areunable to articulate meaningfully, e.g. studies of children, tribal, animals, birds etc.O b s e r v a t i o n s i m p r o v e t h e o p p o r t u n i t i e s f o r a n a l y z i n g t h e c o n t e x t u a l b a c k g r o u n d o f behaviour. Further more verbal

resorts can be validated and compared with behaviour through observation. The validity of what men of position and authority say can be verifiedby observing what they actually do.Observations make it possible to capture the whole event as it occurs. For example onlyobservation can provide an insight into all the aspects of the process of negotiation betweenunion and management representatives. Observation is less demanding of the subjects andhas less biasing effect on their conduct than questioning. It is easier to conduct disguisedo b s e r v a t i o n s t u d i e s than disguised questioning. Mechanical devi ces may be used for recording data in order to secure more accurate data and also of m a k i n g c o n t i n u o u s observations over longer periods.The observation method thus involves human or mechanical observation of what people actually do or what events take place during a buying or consumption situation. Informationis collected by observing process at work. The following are a few situations:1. Service Stations-Pose as a customer, go to a service station and observe. 2. To evaluate the effectiveness of display of Dunlop Pillow Cushions-In a departmentalstore, observer notes:- a) How many pass by; b) How many stopped to look at thedisplay; c) How many decide to buy. 3. Super Market-Which is the best location in the shelf? Hidden cameras are used.4. To determine typical sales arrangement and find out sales enthusiasm shown byvarious salesmen-Normally this is done by an investigator using a concealed taperecorder. Interviewing on the other hand is one of the prominent methods of data collection. it may bedefined as a two way systematic conversation between an investigator and an informant, initiated for obtaining information relevant to a specific study. It involves not onlyc o n v e r s a t i o n , b u t a l s o l e a r n i n g f r o m t h e r e s p o n d e n t ' s g e s t u r e , f a c i a l e x p r e s s i o n s a n d pauses, and his environment. Interviewing requires face to face contact or contact over telephone and calls for interviewing skills. It is done by using a structured schedule or anunstructured guide.Interviewing may be used either as a main method or as a supplementary one in studies of persons. Interviewing is the only suitable method for gathering information from illiterate or l e s s e d u c a t e d respondents, It is useful for coli a wide range of data from f a c t u a l demographic data to highly personal and intimate information r e l a t i n g t o a p e r s o n ' s opinions, attitudes, values, beliefs past experience and future intentions. When qualitativeinformation is required or probing is necessary to draw out fully, and then interviewing isrequired. Where the area covered for the survey is a compact, or when a sufficient number of qualified interviewers are available, personal interview is feasible.Interview is often superior to other data-gathering methods. People are usually more willingto talk than to write. Once report is established, even confidential information may be obtained. It permits probing into the context and reasons for answers to questions.Interview can add flesh to statistical information. It enables the investigator to grasp the behavioural context of the data furnished by the respondents. detail of information that canbe secured. When used with well conceived schedules, an

interview can obtain a great dealof information. It far exceeds mail survey in amount and quality of data that can be secured. the quality of information received than other method. He can note the conditions of theinterview situation, and adopt appropriate approaches to overcome such problems as therespondent's unwillingness, incorrect understanding of question, suspicion, etc. level,living conditions etc. through observation of the respondents environment. order to improve the quality of interviewing. by the respondent can bechecked by observation and probing. be exercised over the interview situation.