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A PROCEDURAL GUIDE TO WRITE A RESEARCH


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Sher Singh Bhakar Shailja Bhakar


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A PROCEDURAL GUIDE TO
WRITE A RESEARCH PAPER
A PROCEDURAL GUIDE TO
WRITE A RESEARCH PAPER

Editors
Dr. S.S. Bhakar
Shailja Bhakar

BHARTI PUBLICATIONS
New Delhi-110002
(India)
Copyright ?????????

All rights reserved. No part of this publication may be reproduced or


transmitted, in any form or by any means, without permission. Any person
who does any unauthorised act in relation to this publication may be liable to
criminal prosecution and civil claims for damages.

First Published, 2015

ISBN : 978-93-85000-

Printed in India:
BHARTI PUBLICATIONS
4819/24, 3rd Floor, Ansari Road, Darya Ganj
New Delhi-110002
Mobile : +91-989-989-7381
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info@bharatipublications.com
Website : www.bhartipublications.com

PRINTED IN INDIA
Published by Onkar Bharti for Bharti Publications. Typeset by Gaurav Graphices,
Rajouria Printers, Delhi.
(v)

Prologue

Recent years have seen a plethora of journals published by different


associations and Institutions, indicating increasing need for such journals
as desire to publish research articles by faculty members and
practitioners in the area of management stream. The requirement of a
minimum mandatory APA score; having major contribution of scores
on research related activities; required for promotion to different
academic positions being one of the prime reasons for triggering the
desire further. However, the improvement is in terms of quantity
(number of research papers published) rather than quality of these
articles. Also in majority of these articles research methodology aspect
is not given a considerable attention, because of which the research
papers end up in just being endless words containing stories leading
to less or no sense. It should be noted that the quality in research
articles comes from the extensive planning, in-depth research before
starting writing them actually. This is true even for management research
papers writing.
A research paper analyzes a perspective or argues a point. Regardless
of the type of research paper the researcher is writing, the researcher
should present his own thinking backed up by others ideas and
information. The major reasons for the poor quality of research are
the lack of training in research method in the under graduate and
graduate programs, few quality research methodology workshops
organized in the country and lack of quality books on research
methodology focusing on the application side of the RM. Most of the
books written on research methodology have taken an overly static
and product-oriented process of research writing. These books
(vi)

typically focus on the conceptual understanding of the research and


application part is ignored. The two major problems associated with
this approach are: First, writing can be best taught as a process, not
merely as a product and the second, the approach doesnt account
for the diverse ways that students actually use research in their classes.
This book is a result of the understanding of the near vacuum in
application oriented research methodology books, discussions with
colleagues, and own experiences. We have developed a detailed approach
to writing research papers and the approach is presented in this book.
Instead of focusing on one research paper, we have focused on the
process of research writing through a large no. of research papers
developed during third national research methodology workshop
organized by Prestige Institute of Management, Gwalior during August
21-24, 2011.
Readers of this book would understand that they need to be patient
with learning the nuances of writing research based articles. This book
emphasizes that the researchers need to carefully think about a topic
of research by developing a working idea. They then need carry out
extensive review of literature to explore that topic in depth. All along
the way, researchers continue to research and revise their working
proposal so that by the time they start writing the research paper,
their thinking about their original topic of research has evolved. As a
result, they are not only prepared to write a methodical research paper;
they better understand what it means to conduct academic research,
which we believe is the real goal of an introductory writing.
Organisation of Book: The book is organized into two parts. Part one
starts with thinking critically about research, explains what is (and
isnt) research, explains how to properly use research in your writing
to make your points, introduces a series of writing exercises designed
to help students to think about and write effective research papers.
Instead of explaining how to write a single research paper, The
Process of Research Writing part of the book breaks down the research
process into many smaller and easier-to manage parts like what is a
research paper, starting steps for writing research papers, writing
conceptual understanding and review of literature, referencing including
various styles of referencing, writing research methodology and results
including interpretations, writing implications and limitations of research
and what goes into conclusions.
Part two contains sample research articles to demonstrate the application
of techniques and methods of writing good research papers in all the
management areas of Human Resource Management, Financial
Management, Marketing Management and Information Technology
(vii)

Aspects. The individual chapters included in partII of the book


demonstrate the use of different statistical techniques and the
interpretation of their results. The first two chapters of the book
demonstrate the application of confirmatory factor analysis and structural
equation modeling for testing marketing models; these papers evaluate
Image Congruence and Brand Attitude amongst Teenagers and
Country of Origin Effect on Consumer Willingness to Buy Foreign
Product. The third chapter demonstrates application of Exploratory
Factor Analysis (EFA), t-test and MANCOVA to evaluate Brand Image
and Its Impact on Customer Satisfaction and Customer Loyalty. The
fourth and fifth papers demonstrate application of multiple regressions
to evaluate Relationship between Inflation, Interest Rates and Stock
Prices: An Empirical Study of Asia Pacific Countries and application
of linear regression to evaluate cause and effect relation between Capital
Structure and Stock Returns. The fifth chapter Impact of Service Quality
Attributes on Customer Satisfaction for Local Bus transit service at
Gwalior region demonstrates application of ANCOVA in addition to
EFA. The sixth chapter titled A Study of Factors Affecting Academicians
Motivation for Research also demonstrates application of EFA. The
seventh chapter Examining the Effect of Product Performance on Brand
Reputation, Customer Satisfaction and Customer Loyalty demonstrates
the application of MANOVA along with the application of EFA, linear
regression and multiple regressions. The eighth and Ninth chapters
titled Predictors of Organizational Citizenship Behaviour: An Empirical
Study and Psychological Climate and Students Attitude towards
Learning: a Study of Higher Education demonstrate the application
of EFA and linear regression. The tenth chapter Estimation and Stability
of Beta: A Case of Indian Stock Market demonstrates the application
of regression using Dummy variables. The Eleventh chapter titled An
Evaluation of Customer Perception of Service Quality in Internet Banking
demonstrates the application of N-way ANOVA along with EFA. The
last and twelfth chapter Mutual Fund Performance: An Analysis in
Indian Context demonstrates the application of Mann Whitney U-test
and Kruskal Wallis H-test. Majority of these chapters also demonstrates
computation of Cronbachs Alpha and testing distribution of variables
using one sample Kolmogorov- Smirnov test.
(ix)

Acknowledgements

The book is an outcome of concerted efforts of a dedicated team. We


are thankful to all the contributors who have made this academic
endeavor fructify and take shape of a book. It is difficult to name
every person who has directly or indirectly contributed in giving this
book the current shape. We would like to put on record our sincere
thanks to all the authors and co-authors of the research articles included
in this book. We would like to put on record our sincere appreciation
for the efforts put in by all the team leaders in the third PIMG National
Research Methodology work shop for facilitating all the teams while
developing the research papers during the Workshop. We would also
like to put forward our sincere thanks to Professor Raghuvir Singh
and Prof. Nimit Chaudhary; who provided valuable guidance to the
participants in the third research methodology workshop along with
the authors of this book. Our thanks are also due to the organizing
teams of the third PIMG National Research Methodology workshop
along with Ms Shailja Bhakar the coordinator of the workshop; who
toiled hard in coordinating and fecilitating all the participants before,
during and after the workshop.
Last but not the least we would like to thank Mr. Om Bharati and his
team at Bharti Publications, New Delhi for their co-operation in bringing
out this edited volume.
List of Contributors

Aashish Mehra, Assistant Professor at Prestige Institute of


Management Gwalior.
Abhimanyu Bharadwaj, Training and Placement Officer at
Prestige Institute of Management Gwalior.
Abhishek Dixit, Assistant Professor at Jain College.
Anil Singh Parihar, Assistant Professor at IPS College of
Technology and Management Gwalior.
Brijesh Shrivas, Assistant Professor at Prestige Institute of
Management of Gwalior.
C.K Dantre, Assistant Professor at Prestige Institute of
Management of Gwalior.
Deepshikha Rajdev, Assistant Professor at IPER.
Dr. Garima Mathur, Associate Professor at Prestige Institute of
Management Gwalior.
Dr. Garima Mathur, Associate Professor at Prestige Institute of
Management.
Dr. Gaurav Jaiswal, Assistant Professor at Prestige Institute of
Management, Gwalior.
Dr. Jatinder Loomba, Associate Professor at JK Business School.
Dr. K.K. Pandey, Assistant Professor at Prestige Institute of
Management, Gwalior.
(xii)

Dr. Navita Nathani, Associate at Professor, Prestige Institute


of Management, Gwalior
Dr. Neeraj Dubey, Associate Professor at V.M. National Instt
of Coop. Management Pune
Dr. Nischay Kumar Upamannyu, Assistant Professor at Prestige
Institute of Management of Gwalior
Dr. P. A Ratna, Assistant Professor at Symbiosis Institute of
Operation Management, Nashik
Dr. Ravindra Pathak, Assistant Professor at Prestige Institute
of Management, Gwalior
Dr. S. S. Bhakar, Director at Prestige Institute of Management
Gwalior
Dr Saloni Mehra, Assistant professor at Symbiosis Institute of
Operations Management Nasik, Maharashtra
Dr. Saurabh Goyal, Assistant Professor at SRIIT
Dr. Tarika Singh, Associate Professor at Prestige Institute of
Management
Jagmohan Jadon, Assistant Professor at Jain College
Jaspreet Kaur, Assistant Professor at Prestige Institute of
Management, Gwalior
Kumar Neelmani, Student Indian Institute of Travel and Tourism
Management, Gwalior
Manisha Pandey, Assistant Professor at Prestige Institute of
Management, Gwalior
Manjari Agrawal, Faculty, MLB Govt. Arts & Commerce College,
Gwalior
Manoj Agarwal, Student, Prestige Institute of Management,
Gwalior
Mayank Singhal, Faculty in MPCT College, Gwalior
Mehak Huria, Student at Symbiosis Law School, Noida
Moksha Shukla, Assistant Professor at MPM & IR
Monika Mittal, Assistant Professor at Prestige Institute of
Management Gwalior
Nainshree Goyal, Assistant Professor at Shri Ram College of
Management
Nitin Pahariya, Senior Assistant Professor at Prestige Institute
of Management, Gwalior
(xiii)

Pratiksha Pathak, PS to Director at Prestige Institute of


Management Gwalior
Prerna Bisht, Student at Indian Institute of Travel and Tourism
Management
Prof. Puja Jain, Assistant Professor, BVM College, Gwalior
Pushpamala Pathak, Assistant Professor at MPCT Gwalior
Rahul Pratap Singh Kaurav, Assistant Professor at Prestige
Institute of Management Gwalior
Reeva Chugh, Student at Symbiosis Law School, Noida
Ruturaj Baber, Assistant Professor at Prestige Institute of
Management Gwalior
Sandeep Shrivastava, Research Scholar at Jiwaji University
Gwalior
Satish Bansal, Assistant Professor at Prestige Institute of
Management
Shailja Bhakar, Assistant Professor at Prestige Institute of
Management Gwalior
Shikha Priyadarshani, Assistant Professor at Symbiosis Law
School, Noida
Shilpi Nagariya, Assistant Professor at Prestige Institute of
Management Gwalior
Sneha Rajput, Assistant Professor at Prestige Institute of
Management Gwalior
Sonu Sidhwani, Assistant Professor at Prestige Institute of
Management
Suman Lata Bisht, Assistant Professor at Prestige Institute of
Management Gwalior
Umesh Sharma, Assistant Professor at Shri Ram Institute of
Technology & Management, Banmore, Gwalior
Vishnudyutya Kumar Punj, Assistant Professor at Vision Institute
of Advanced Studies, New Delhi
Yahomandira Kharade, Assistant professor at Symbiosis Institute
of Operations Management Nasik, Maharashtra
Contents

Prologue v
Acknowledgements ix
List of Contributors xi

PARTI
WRITING A RESEARCH PAPER: BRIEF DISCUSSION
1. What is a Research Paper? 3
Classification of Research Papers
Structuring the Research Paper
Steps in Writing a Research Paper

PARTII
SAMPLE RESEARCH PAPERS
1. Image Congruence and Brand Attitude amongst 49
Teenagers
Dr. S.S. Bhakar, Dr. Saloni Mehra, Yahomandira Kharade,
Shikha Priyadarshani, Prerna Bisht & Pratiksha Pathak
2. Country of Origin Effect on Consumer Willingness 60
to Buy Foreign Product
Dr. S.S. Bhakar, Dr. Saloni Mehra, Dr. Yahomandira Kharade,
Shikha Priyadarshani, Prerna Bisht & Pratiksha Pathak
3. Brand Image and its Impact on Customer Satisfaction 73
and Customer Loyalty
Shailja Bhakar, Sneha Rajput, Suman Lata Bisht, Shilpi Nagariya,
Anil Singh Parihar & Mehak Huria
(xvi)

4. Relationship between Inflation, Interest Rates and 89


Stock Prices: An Empirical Study of Asia
Pacific Countries
Dr. Navita Nathani, Jaspreet Kaur, Dr. P.A. Ratna, Sandeep Shrivastava,
Pooja Jain, Manoj Agrawal & Nitin Paharia
5. Capital Structure and Stock Returns 100
Dr. Tarika Singh, Dr. Jatinder Loomba, Deepshikha Rajdev,
Dr. Saurabh Goyal, Jagmohan Jadon, Kumar Neelmani
& Sonu Sidhwani
6. Impact of Service Quality Attributes on Customer 116
Satisfaction for Local Bus Transit Service at
Gwalior Region
Dr. Nischay Kumar Upamannyu, Nainshree Goyal, Dr. Neeraj Dubey,
C.K Dantre & Brijesh Shrivas
7. A Study of Factors Affecting Academicians 136
Motivation for Research
Dr. Garima Mathur, Ms. Monika Mittal, Mr. Abhishek Dixit,
Ms. Moksha Shukla & Mr. Satish Bansal
8. Examining the Effect of Product Performance on 146
Brand Reputation, Customer Satisfaction and
Customer Loyalty
Shailja Bhakar, Sneha Rajput, Suman Lata Bisht, Shilpi Nagariya,
Anil Singh Parihar & Mehak Huria
9. Predictors of Organizational Citizenship Behaviour: 167
An Empirical Study
Dr. Gaurav Jaiswal, Dr. Ravindra Pathak, Manjari Agrawal
& Umesh Sharma
10. Psychological Climate and Students Attitude 179
towards Learning: a Study of Higher Education
Dr. Garima Mathur, Monika Mittal, Vishnudyutya Kumar Punj
& Pushpamala Pathak
11. Estimation and Stability of Beta: A Case of Indian 190
Stock Market
Dr. Navita Nathani, Jaspreet Kaur, Dr. P. A Ratna, Sandeep Shrivastava,
Prof. Puja Jain, Manoj Agarwal & Nitin Paharia
12. An Evaluation of Customer Perception of Service 200
Quality in Internet Banking
Aashish Mehra, Rahul Pratap Singh Kaurav & Ruturaj Baber
(xvii)

13. Mutual Fund Performance: An Analysis in 215


Indian Context
Dr. Tarika Singh, Dr. Jatinder Loomba, Deepshikha Rajdev,
Dr. Saurabh Goyal, Jagmohan Jadon, Kumar Neelmani & Sonu Sidhwani
14. Effects of Advertising on Product Risk Perception and 229
Warning Effectiveness: A Study of Household
Cleaners in Gwalior
Krishna Kumar Pandey, Manisha Pandey, Abhimanyu Bhardwaj,
Mayank Singhal, Reeva Chugh
A Procedural Guide to Write a Research Paper 1

PartI
Writing a Research Paper:
Brief Discussion
2 A Procedural Guide to Write a Research Paper
A Procedural Guide to Write a Research Paper 3

Writing a Research Paper:


General Guide Lines

What is a Research Paper


What image comes into mind as we hear the words Research Paper:
working with stacks of articles and books; hunting the treasure of
others' thoughts; preparing research report on the basis of primary or
secondary data? Whatever image we create, it's a sure bet that we're
envisioning sources of informationarticles, books, people, and
artworks. Yet a research paper is more than the sum of sources, more
than a collection of different pieces of information about a topic, and
more than a review of the literature in a field. A research paper analyzes
a perspective or argues a point. Regardless of the type of research
paper the researcher is writing, the researcher should present his own
thinking backed up by others' ideas and information. A research paper
involves surveying a field of knowledge in order to find the best
possible information in that field and that survey can be orderly and
focused.

What is Management Research Paper


Management papers are developed to express the knowledge and
learning, in addition to the inclusion of information from the texts,
current events in business, and past research that defines the ability
to connect learning to application. Every researcher specifically
researching in the field of management should answer some key
questions before submitting a paper. The first question every researcher
should answer is "Why am I writing this paper?" If the answer is of
4 A Procedural Guide to Write a Research Paper

the form "to document what I have been doing for the past two years",
then researcher is in danger of writing a bad paper. Another poor
answer is "to help build my case for tenure". Tenure may be initial
motivation for writing a paper, but it should not be the only motivation.
The purpose of the paper should be to communicate something to
someone. So, the next questions are "What is my paper trying to say?"
and '"Who is the audience for my paper?" If researcher cannot clearly
answer these questions, then the paper is likely to be poor.
A focused paper is better than a scattered paper. Resist the temptation
to describe every great idea that one may have while working on the
project. Pick a primary message and communicate it well. After deciding
what the paper is trying to say, the next question to answer is "Is it
worth saying" Is it a new message, or just a rehash of an old message?
Is the message of value, or potential value, or is it trivial? Is it conjecture,
or have the researcher demonstrated the soundness of the conclusions.
A complete job on paper includes writing, editing and revising. Each
complete revision is a draft. Don't try to write just one final draft of
a paper. Always write a first draft with the intention of having one or
more revision drafts. For the first draft, author will find it faster to
write something approximating the points he/she wishes to make,
then go back and revise them. While drafting, keep computer or paper
at hand so you can jot down new ideas as they occur. It's faster to edit
and revise on computer, without printing out the intermediate drafts.
However, it is needed to print out a draft for editing. Format the text
with double-spaced or triple-spaced lines so that the changes can be
marked between lines. Write a second draft. Check the spelling and
use a thesaurus to make improvements. If needed, edit the second
draft for a third draft, and so on.
Motivation for writing the research papers
One may ask why researchers have to write down what they have
been doing, or what they are currently working on. Still, it may be
asked why researchers have to turn their writing into formal papers.
Writing for others is more demanding than writing for oneself but it
can help to get a better understanding of the own ideas. As publications
have system-maintaining roles in their respective sciences, additional
motivations for researchers to write and publish their research work
were discussed by Booth et al. He listed three obvious reasons:
To remember, because once something is forgotten, it cannot be
reproduced correctly without having written notice
To understand, as writing about a subject can only be accomplished
by approaching the subject in a structured way, which itself leads
to better understanding thereof
A Procedural Guide to Write a Research Paper 5

To gain perspective, as writing includes looking at something


from different points of view.
OConnor points out that writing and publishing research papers is
essential if management science is to progress. Peat et al. [7] provided
a list of some pragmatic reasons for writing down and publishing
research results. Among them are:
The Researcher has some results that are worth reporting.
The Researcher wants to contribute in the progress of scientific
thought.
The Researcher wants his work to reach a broader audience.
The Research will improve the chances of promotion.
It is unethical to conduct a study and not report the findings.

Classification of Paper into one or the other Category


Pick the category which most closely describes the paper. Though
some papers can fit into more than one category but it is good to
assign the paper to one of the categories listed below to facilitate
searching within the database:
Research paper: This category covers papers which report on
any type of research undertaken by the author(s). The research
may involve the construction or testing of a model or framework,
action research, testing of data, market research or surveys,
empirical, scientific or clinical research.
Viewpoint: Any paper, that includes content that is dependent
on the author's opinion and interpretation, should be included
in this category; this also includes journalistic pieces.
Technical paper: Describes and evaluates technical products,
processes or services.
Conceptual paper: These papers will not be based on empirical
research but will develop hypotheses. The papers are likely to
be discursive and will cover philosophical discussions and
comparative studies of others' work and thinking.
Case study: Case studies describe actual interventions or
experiences within organizations. They may well be subjective
and will not generally report on research. A description of a legal
case or a hypothetical case study used as a teaching exercise would
also fit into this category.
Literature review: It is expected that all types of papers cite
relevant literature the literature review papers annotate and/or
6 A Procedural Guide to Write a Research Paper

develop critique of the literature in a particular subject area. It


may be a selective bibliography providing advice on information
sources or it may be comprehensive in that the paper's aim is to
cover the main contributors to the development of a topic and
explore their different views.
General review: This category covers those papers which provide
an overview or historical examination of some concept, technique
or phenomenon. The papers are likely to be more descriptive or
instructional ("how to" papers) than discursive.

Structuring the Research Paper


Organizing in a logical order of the presentation of the research is the
other half of the battle involved in creating a successful management
research paper. Preparing an outline is important to ensuring that the
argumentation supports the main research statement. Be sure to construct
the paper in a way that uses the if this happens, then this is the
result format and then tie the results back to the original premise of
the research. Do not assume that all the research pooled for the paper
has to be used. After further reading, researcher may discover that
some of the material is not relevant or has a bias that would not make
it a good reference to substantiate the argument. Few starting steps
before writing the research paper can be as follows-
1. Pen down the thoughts you yourself have not generated or tested.
2. Give sources for quotations, and be sure to quote any string of
three or more words that comes from a given source.
3. Paraphrase with care. Since copyright laws protect the expression
of ideas.
4. Cite when in doubt. The overall idea is to cover the bases, leaving
no question about which ideas came from researcher and which
came from others.
5. Contact the senior teacher or professor if struggling with the
paper. Work out a solution together instead of taking the
plagiarism shortcut.

Transform the Research


While a management research paper is heavily based on available
research, the premise of the project is not to simply restate what has
already been discovered. The primary goal of doing a management
research paper is to transform the research and make it own, illustrating
the concepts and theories to the point of understanding how these
might be applied to or solve a real-world critical business issues or
A Procedural Guide to Write a Research Paper 7

problems. To help in transforming the research into a research paper,


it is a good idea to make a list of questions at the start and then refer
back to these while formulating the outline for the management research
paper. Finding the answers to these questions will then serve as the
foundation for the primary points the researcher will be making in
the main body of the paper. Adding personal experiences with
management or as a manager within an organization also helps
transform the research into a compelling piece of work.

Solidify the Message


The best way to solidify the message in the management research
paper is to re-read the draft and revise it numerous times to ensure a
succinct, powerful, and well-stated argument for the particular research
topic. This involves careful proof reading and a review of a checklist
provided by the publishers in terms of formatting. If this information
is not provided, be sure to consult a writing guide that focuses on
specific ways to format a research paper as well as explains the various
standard referencing mechanisms, such as APA, Harvard, and MLA,
that will provide details to construct the bibliography as well as internal
references, footnotes, or endnotes. Unless you are an experienced
researcher it is important to submit the first draft to the guide or
mentor who will check whether or not the format has been adhered
to. This format is very important because the publication depend also
on the format followed. Of course, there are those who would aver
that the content is more important than the format. This is not entirely
true. Having a collection of thoughts on a particular topic is not the
same as having the same put into a particular format that makes it
more coherent and focused.
Over a period of time the research scholar is able to adhere to the
research paper format without the watchful eyes of the guide. Of
course, a lot depends on the research paper topic that is chosen. Unless
these standard procedures are used it would become quite difficult to
judge the research papers and evaluate it based on purpose. The research
paper could be in any one of the styles that are mentioned below,
depending on the types of research papers written:
1) Harvard
2) APA
3) MLA
These are some of the most commonly used styles. Apart from the
three mentioned above, there are other formats too that are used. It is
important to know the particular kind of research paper format mainly
8 A Procedural Guide to Write a Research Paper

because there is a certain methodology that needs to be followed while


inserting references and citations. In some cases, there are numbers
that are written as superscripts, which are then explained below either
at the end of each page or at the end of the complete work. These are
called footnotes and endnotes respectively.

Written Proposal of Research Papers


Research reports usually have five chapters with well-established sections
in each chapter. Readers of the research report will be looking for
these chapters and sections. Therefore, the researcher should not deviate
from the standard format. Most research studies begin with a written
proposal. Again, nearly all proposals follow the same format. In fact,
the proposal is identical to the first three chapters of the final research
report except that it's written in future tense. In the proposal, might
say something like "the researchers will secure the sample from ...",
while in the final paper, it would be changed to "the researchers secured
the sample from ... Once again, with the exception of tense, the proposal
becomes the first three chapters of the final research paper. The most
commonly used style for writing research reports is called "APA" and
the rules are described in the Publication Manual of the American
Psychological Association. Avoid the use of first person pronouns..
Instead of saying "I will ..." or "We will ... say something like "The
researcher will ..." or "The research team will ...".Never present a draft
(rough) copy of the proposal, thesis, dissertation, or research paper...even
if asked. A paper that looks like a draft will be interpreted as such,
and the researcher can expect extensive and liberal modifications. Take
the time to put the paper in perfect APA format before showing it to
anyone else. The payoff will be great since it will then be perceived as
a final paper, and there will be far fewer changes.

Style, layout, and page formatting


Title page
All text on the title page is centered vertically and horizontally. The
title page has no page number and it is not counted in any page
numbering.

Page layout
Left margin: 1"
Right margin: 1"
Top margin: 1"
Bottom margin: 1"
A Procedural Guide to Write a Research Paper 9

Page numbering
Pages are numbered at the top right. There should be 1" of white
space from the top of the page number to the top of the paper. Numeric
page numbering begins with the first page.

Spacing and Justification


All pages are single sided. Text is double-spaced or 1.5 spaced, except
for long quotations and the bibliography (which are single-spaced).
There is one blank line between a section heading and the text that
follows it. Justify the text.

Font face and Size


Any easily readable font is acceptable. The font should be 12 points
or larger. Generally, the same font must be used throughout the
manuscript, except 1) tables and graphs may use a different font, and
2) titles and section headings may use a different font.

Visual Layout
Give strong visual structure to the paper using
sections and sub-sections
bullets
italics
laid-out code
draw pictures, and use them

Paper Organization
The general structure of a paper comprises three major sections:
introduction, body, and discussion. The progression of the thematic
scope of a paper within these sections typically follows a general
pattern, namely the hourglass model shown below in figure
The introduction leads the reader from general motivation and a broad
subject to a particular research question to be dealt with in the paper.
The body of the paper stays within a tight thematic scope, describes
the research methods and results in detail. The discussion section
aims to draw general conclusions from the particular results. This is
in line with Berrys claim that a research paper should be circular in
argument, i.e., the conclusion should return to the opening, and examine
the original purpose in the light of the research presented. However,
there are additional parts of a paper with equal importance: title,
abstract, and the references.
10 A Procedural Guide to Write a Research Paper

Fig 1 Fig - 2

The extended hourglass model, the King model for its visual
resemblance of the chess piece, is shown in the figure 2. The following
subsections describe all parts of a published paper.
Fig.1 and 2, the hourglass model (left) and the King model (right) of
paper structure.
begin with the subject of the paper,
The results presented in the paper are accurate, unambiguous,
specific, and complete,
do not contain abbreviations (unless they are well known by the
target audience,
attract readers.
Title: Research paper titles should be descriptive and informative.
Sometimes the research thesis or research question is used for a title.
Avoid vague, inaccurate or amusing titles.
Abstract: on-line search databases typically contain only abstracts, it
is vital to write a complete but concise description of the work to
entice potential readers into obtaining a copy of the full paper. Writers
should follow a checklist consisting of: motivation, problem statement,
approach, results, and conclusions. Following this checklist should
increase the chance of people taking the time to obtain and read the
complete paper.
A Procedural Guide to Write a Research Paper 11

Introduction: The introduction should appeal to a reader's interest


and it should make clear what the research paper is about. Ask the
research question. The question can come first, informing the reader
of the purpose of the research paper; or, the question can come last,
making a transition to the body of the research paper.
Body: The meat of a research paper is evidence, facts and details. The
researcher can't have too much documentation, too many references.
On the other hand, it is possible to have too many quotes. Discover
information and analyze and evaluate it for readers. Tell readers what
the data means and show them how to weigh the evidence. Present
the evidence in the body of the research paper. Point out strengths
and weaknesses on both sides of the issue. Making concessions
establishes that the researcher have researched the issue thoroughly.
Artwork: Use appropriate drawings, pictures, diagrams, maps, tables
and charts to illustrate key points. Keep artwork simple.
Conclusion: The conclusion of the research paper is the culmination
of everything written in the paper before the conclusion. The research
question is answered in the conclusion. The conclusion should include
one to one correspondence between the objectives and their satisfaction.
Discussion: The discussion portion typically centers on what the results
mean and more importantly why? Remember that a strong research
paper actually justifies discussion. The researcher needs to ensure
that the thesis indicates the point of the discussion.
The discussion should be a summary of the principal results. Look for
relationships, generalizations as well as trends among the results as
well as their exceptions. Talk about the most likely causes which are
found underlying the patterns resulting in the predictions. There are
a host of other questions which the researcher should deal with such
as does it agree or perhaps contradict previous work? Talk about
implications and possibilities. Remember to add evidence or even a
line of reasoning which supports each interpretation. It might be helpful
to break up this particular section into different logical segments with
the help of subheadings.

Steps in Writing the Research Paper


1. Pick the Problem and Designing the topic
Success starts with the right topic and scope of the research that would
be involved. In terms of a management research paper, there are a
seemingly endless amount of problems and issues that span across
every aspect of a business, organization, and industry, so it is important
to narrow the subject matter and find the niche. It is important to pick
12 A Procedural Guide to Write a Research Paper

a research topic that interests the researcher and that has application
for field of study. Additionally, the research should be something that
is relevant to todays business environment, such as something that
relates to the issues of sustainability, ethics, corporate responsibility,
the use of technology, or new management styles that can be successful
in the global information society.
Topic Selection- For a research paper, report or article, the researcher
learns information about a subject, then set forth a point of view and
support it with evidence from authorities known as sources. All of
their sources must be declared via citations within the research paper.
The typical research paper, report or article is an informative document,
which sheds light on an event, person or current issue. It also may be
persuasive. If a subject intrigues the researcher, he will do a better job
on the finished product. As the home in on a general topic, consider
using the brainstorm and free write techniques. Eventually, every
researcher must narrow the general topic to a specific research question.

Generating Ideas for Topic of the Research Paper


Brainstorming: Brainstorming, sometimes known as thinking on paper,
means jotting down ideas in a computer file or on paper may be used
to generate large amount of data in a short time.
List all ideas that come to mindalone or in a group.
Ask journalistic questions and answers to ensure consideration
of all angleswho, what, when, where, why, how?
Limit all writing to point form to avoid writers block.
Consider your point of view on an issue and establish your own
bias or feelings on a topic.
Free Writing: Free writing can help the researcher to find ideas by
writing quickly, with no plan, and without stopping for ten to twenty
minutes. Don't worry about what to say first; start in the middle.
Ignore grammar, spelling and organization. Let the thoughts flow into
a computer file or onto paper as they come. If researcher draws a
blank, write your last word over and over. More ideas will follow.
Free write more than once, then write a sentence, which begins, "My
main point is ...". Good writing has a subject, purpose and audience.
Consider the audience for the research work, and how the purpose
limits the subject. Think about how important the topic is in relation
to the purpose of the investigation. Keep in mind the availability,
variety and worth of materials that will be able to find. Consider the
amount of time available.
A Procedural Guide to Write a Research Paper 13

Unsuitable topics: A research paper topic would be a poor choice if it


were...
Too broad: Should you try to cover the entire subject. Narrow
the scope of the topic to include only a portion of a broad subject.
Too subjective: A personal topic, such as "Why my Learning is
Best," may be unsuitable because you probably won't be able to
support it from library sources.
Too controversial: Avoid any subject about which can't be written
objectively.
Too familiar: The work on a research paper should lead to
discovery of things the researcher doesnt already know.
Don't submit a research paper already written for another purpose.
Too technical: Don't write about a topic that is still not understood
thoroughly after the complete research.
Crystallizes what we dont understand. This forces us to be clear
focused
Opens the way to dialogue with others: reality check, critique,
and collaboration
Topic Selection: model 1

IDEA DO RESEARCH

WRITE RESEARCH PAPER

Topic Selection: model 2


14 A Procedural Guide to Write a Research Paper

At the outset, when one wishes to write a research paper, confirm the
following checklist for deciding about the title.

Checklist-1
i. Where do you want to send your article for publication?
ii. What is the proposed title?
iii. If the idea is to publish, then go through the earlier publication/
s to know what kinds of papers are published - this will give
you idea about the way titles are presented.
iv. Select the topic which will be very useful for the readers and
also latest one.
v. What kind of data/information needs to be collected from different
sources in order to write a good paper?
vi. Start with introduction - objectives - have survey of literature -
will it be possible to collect the data required for the research.
vii. Decide how many pages need to be prepared. This is very essential
in order to decide how much inputs are required.
viii. Try to refer recent articles, information, data etc.
ix. Dont forget to record acknowledgement for the information you
have taken.
Important: Research paper titles should be descriptive and informative.
Sometimes the research thesis or research question is used for a title.
Avoid vague, inaccurate or amusing titles. After topic selection, form
a research question and hypothesis. A hypothesis is a working idea
that the evidence may support. The researcher should have a hypothesis
in mind as he/she starts looking into the subject. While writing the
paper, the researcher may narrow the hypothesis or even discover a
better hypothesis. Be prepared to change the hypothesis if evidence
doesn't support it.

2. The Abstract
Basically, an abstract comprises a one-paragraph summary of the whole
paper. An abstract is a concise single paragraph summary of completed
work or work in progress. In a minute or less a reader can learn the
rationale behind the study, general approach to the problem, pertinent
results, and important conclusions or new questions. Abstracts have
become increasingly important, as electronic publication databases are
the primary means of finding research reports in a certain subject
area today. So everything relevant to potential readers should be in
the abstract, everything else not. There are two basic types of abstract:
A Procedural Guide to Write a Research Paper 15

An informative abstract extracts everything relevant from the


paper, such as primary research objectives addressed, methods
employed in solving the problems, results obtained, and
conclusions drawn. Such abstracts may serve as a highly
aggregated substitute for the full paper.
On the other hand, an indicative or descriptive abstract rather
describes the content of the paper and may thus serve as an outline
of what is presented in the paper. This kind of abstract cannot
serve as a substitute for the full text.

Writing an abstract
Purpose
What are the reason(s) for writing the paper or the aims of the research?

Design/methodology/approach
How are the objectives achieved? Include the main method(s) used
for the research. What is the approach to the topic and what is the
theoretical or subject scope of the paper?

Findings
What was found in the course of the work? This will refer to analysis,
discussion, or results.

Research limitations/implications (if applicable)


If research is reported on in the paper this section must be completed
and should include suggestions for future research and any identified
limitations in the research process.

Practical implications (if applicable)


What outcomes and implications for practice, applications and
consequences are identified? How will the research impact upon the
business or enterprise? What changes to practice should be made as a
result of this research? What is the commercial or economic impact?
Not all papers will have practical implications.

Social implications (if applicable)


What will be the impact on society of this research? How will it influence
public attitudes? How will it influence (corporate) social responsibility
or environmental issues? How could it inform public or industry policy?
How might it affect quality of life? Not all papers will have social
implications.
16 A Procedural Guide to Write a Research Paper

Originality/value
What is new in the paper? State the value of the paper and to whom.

Using keywords
Using keywords is a vital part of abstract writing, because of the
practice of retrieving information electronically: keywords act as the
search term. Use keywords that are specific, and that reflect what is
essential about the paper. Put yourself in the position of someone
researching in your field: what would you look for? Consider also
whether you can use any of the current "buzz words".

Styles
Single paragraph, and concise
As a summary of work done, it is always written in past tense
An abstract should stand on its own, and not refer to any other
part of the paper such as a figure or table
Focus on summarizing results - limit background information
to a sentence or two, if absolutely necessary
What the researcher report in an abstract must be consistent with
what is reported in the paper
Correct spelling, clarity of sentences and phrases, and proper
reporting of quantities (proper units, significant figures) are just
as important in an abstract as they are anywhere else.

Checklist 2
A checklist defining relevant parts of an abstract is proposed below:
i. Motivation: Why do we care about the problem and the results?
ii. Problem statement: What problem is the paper trying to solve
and what is the scope of the work?
iii. Approach: What was done to solve the problem?
iv. Results: What is the answer to the problem?
v. Conclusions: What implications does the answer imply?
vi. Abstracts should contain no more than 250 words or as per the
requirements of the publisher. Write concisely and clearly. The
abstract should reflect only what appears in the original paper.
Important - There are some things that should not be included in an
abstract, i.e. information and conclusions not stated in the paper,
references to other literature, the exact title phrase, and illustrative
elements such as tables and figures.
A Procedural Guide to Write a Research Paper 17

3. Introduction
The introduction serves the purpose of leading the reader from a
general subject area to a particular field of research. Three phases of
an introduction can be identified

a) Establish a territory
i. Bring out the importance of the subject and/or
ii. Make general statements about the subject and/or
iii. Present an overview on current research on the subject.

b) Establish a niche
i. Oppose an existing assumption or
ii. Reveal a research gap or
iii. Formulate a research question or problem or
iv. Continue a tradition.

c) Occupy the niche


i. Sketch the intent of the own work and/or
ii. Outline important characteristics of the own work;
iii. Outline important results;
iv. Give a brief outlook on the structure of the paper.
In brief, the introduction should guide the reader to understand the
rest of the paper without referring to previous publications on the
topic. Even though the introduction is the first main section in a paper,
many researchers write or at least finish it very late in the paper
writing process, as at this point the paper structure is complete, the
reporting has been done and conclusions have been drawn.

Check List 3
The introduction is the only text in a research paper to be written
without using paragraphs in order to separate major points. Approaches
vary widely; however for the following approach can produce an
effective introduction.
i. Describe the importance (significance) of the study - why was
this worth doing in the first place? Provide a broad context.
ii. Defend the model - why did you use this particular organism or
system? What are its advantages? The researcher might comment
on its suitability from a theoretical point of view as well as indicate
practical reasons for using it.
18 A Procedural Guide to Write a Research Paper

iii. Provide a rationale. State the specific hypothesis(es) or objective(s),


and describe the reasoning to select them.
iv. Very briefly describe the research design and how it accomplished
the stated objectives.

Style
Use past tense except when referring to established facts. After
all, the paper will be submitted after all of the work is completed.
Organize the ideas, making one major point with each paragraph.
Present background information only as needed in order to
support a position. The reader does not want to read everything
the researcher knows about a subject.
State the hypothesis/objective precisely - do not oversimplify.
As always, pay attention to spelling, clarity and appropriateness
of sentences and phrases.

4. Review the Research


What is a Literature Review?
A review of the literature is an essential part of the academic research
project. The review is a careful examination of a body of literature
pointing toward the answer to the research question. A literature or a
body of literature is a collection of published research relevant to a
research question. All good research writings are guided by a review
of the relevant literature. The literature review will be the mechanism
by which the research is viewed as a cumulative process. That makes
it an integral component of the scientific process. There are a number
of steps to take in selecting the research problem and then filtering
through all of the information to find the data that substantiates the
research title that researcher have chosen or that has been assigned
by an organization. Be sure to get the details on the format and
referencing style that is required since everything presented in the
paper must be attributed to the person who provided that research
material. The Internet has opened up the doors of opportunity for
accessing a wealth of in-depth research material by providing a number
of open-sourced academic databases that contain recent findings and
studies. Some of the databases do require either a password that can
be obtained from the university or a small payment to join. Emerald
and Science Direct are particularly excellent sources of high-quality
research material. Many other researchers have made their published
papers available online, so be sure to search Google using specific
A Procedural Guide to Write a Research Paper 19

keywords that relate to the research topic. The university library should
not be left out as an excellent place for source material.
Why do it - The purpose of the literature review remains the same
regardless of the research methodology used. It is an essential test of
the research question, which is already known about the subject.
Literature review can be used to discover whether someone else has
already answered the research question. If it has, the researchers must
change or modify the question.
Importance of review - It is important because it shows what previous
researchers have discovered. It is usually quite long and primarily
depends upon how much research has previously been done in the
area researcher is planning to investigate. If the researcher is planning
to explore a relatively new area, the literature review should cite
similar areas of study or studies that lead up to the current research.
Never say that the area is so new that no research exists. It is one of
the key elements that readers look at when reading the research papers
and approving them for publication.
Where to start? Often, it is appropriate to start the research with
encyclopedias, almanacs and dictionaries for broad, general background
information on a topic. Next, check specialized encyclopedias,
bibliographies and handbooks on your topic. Search general, then
specialized indexes and databases for articles on the chosen subject in
authoritative books, scholarly journals, trade papers, consumer
magazines and newspapers. One may search all of these resources on
web with the help of search engines like Google.
Taking notes: Read every source for facts, opinions and examples
relating to the subject. Jot down notes of information either in computer
files or on cards that is important in answering the research question.
Record page numbers in the source for each fact or quote while jotting
down. If one wishes to quote from a source, make sure that exact
wording have been recorded along with the page number.
Organizing information: After completing the main research, organize
the information in such a way that guides the researcher to research
specific points while writing the research paper.
Outlining the research paper: Group the information in computer
files or on note cards coherently by topic that will lead to an efficient
working outline. Organize the points either from most-to-least or least-
to-most important. Write an outline from the organization of the
computer files or note cards. List the major divisions and subdivisions
to visualize the ideas and supporting material. The outline will reveal
whether the research has turned up enough materials to support the
conclusion.
20 A Procedural Guide to Write a Research Paper

How to do Bibliographies
Creating a bibliography manually can be a very annoying and time-
consuming job. Professional researchers who work with citations every
day use one of the commercial computer software tools for tracking
references.
Word Processors: Although modern word processors are loaded with
features, they don't offer complete help with one of academic writing's
most laborious tasks -- the bibliography. Creating a "bib" means tracking
references, including citations in text, and formatting each reference
in a particular style. Two commercial computer programs (End Notes3
and Pro Cite) perform those tasks. They are like employing a personal
librarian to track, store and retrieve bibliographic references while
you do scholarly writing.
Researchers, scholars, writers, reporters, authors, reviewers, teachers
and anyone gathering and maintaining bibliographical references and
publishing papers and reports can use these tools to access, organize
and update article references pulled from the expanding literature in
a knowledge field.
Mechanics of a literature review: The literature review will have two
components: the search through the literature and the writing of the
review. Obviously, the search is the first step. However, the researcher
must remember that we love knowledge and that academic databases
can be seductive. The researcher could spend untold hours clicking
around the bibliographies of the favorite collections. It may have fun,
but might not advance the literature review.
The solution: Have the research question been written down and at
hand when you arrive at the computer to search databases. Prepare in
advance a plan and a preset time limit.
Finding too much? If you find so many citations that there is no
end in sight to the number of references you could use, it is time
to re-evaluate the question. It's too broad.
Finding too little? On the other hand, if you can't find much of
anything, ask yourself if you are looking in the right area. The
topic is too narrow.
Leading edge research: What if the researcher is trying to research
an area that seems to have never been examined before? Be
systematic. Look at journals that print abstracts in that subject
area to get an overview of the scope of the available literature.
Then, the search could start from a general source, such as a
book, and work its way from those references to the specific topic.
Or, it could start with a specific source, such as a research paper,
A Procedural Guide to Write a Research Paper 21

and work from that author's references. There isn't a single best
approach.
Take thorough notes: Be sure to write copious notes on everything.
It is very frustrating not to find a reference found earlier that
the researcher wants to read in full.
It's not hard to open up a blank document in Word, WordPad
(Windows) or SimpleText (Macintosh) to keep a running set of
notes during a computer search session. Just jump back and forth
between the Web browser screen and the notepad screen.
Using resources wisely: Practice makes a person perfect. Learn
how the computer system works and then use the available
computer resources properly and efficiently. Log onto the Internet
frequently. Visit the on-line library. Play with the database
resources.
Identify publications, which print abstracts of articles and books
in the chosen subject area. Look for journals from which researcher
can identify the most useful references. Identify those authors
who seem to be important in subject area. Identify keywords of
area of interest. Read online library catalogs to find available
holdings. Be sure to write notes on everything.
Getting ready to write: Eventually, a broad overview picture of
the literature in subject area will begin to emerge. Then it's time
to review the notes and begin to draft the literature review.
Pile them on a table and sit down. Turn to research question.
Write it out again at the head of a list of the various keywords
and authors that have been uncovered during the review.
Writing the review: One draft won't cut it. Plan from the outset
to write and rewrite. Naturally, the researcher will crave a sense
of forward momentum, so don't get bogged down. It is not
important to write the review in a linear fashion from start to
finish. If one area of the writing is proving difficult, jump to
another part.
Edit and rewrite. The goal is to communicate effectively and
efficiently the answer found to research question in the literature.
Make it clear, concise and consistent. Big words and technical
terms are not clear to everyone. They make it hard for all readers
to understand the writing.

Checklist-4
i. Is there is enough material on each point?
22 A Procedural Guide to Write a Research Paper

- Will this amount of information seem convincing?


- What are the assumptions in the research?
- What are the implications of the research?
- How old is this information?
ii. Do I have the most recent data?
- Who are the authorities?
- Has the information come from recognized experts?
- Has the information come from respected publications?
- Are the terms clearly defined?
- Are all sources using the terms in the same way?
- Is all the information relevant?
- What do the statistics mean?
- How were the statistics gathered?
- What are the relative merits of the arguments?
- Which arguments are stronger?
- Which arguments are less significant?
iii. What is known about my subject?
iv. What is the chronology of the development of knowledge about
my subject?
v. Are there any gaps in knowledge of my subject?
vi. How do I intend to bridge the gaps?
vii. Is there a consensus on relevant issues? Or is there significant
debate on issues? What are the various positions?
viii. What is the most fruitful direction I can see for my research as
a result of my literature review?
ix. What directions are indicated by the work of other researchers?
Important- Academic researchers reach into scholarly journal databases
to build bibliographies for their papers. On-line library provides access
to academic databases for use in scholarly projects.

Evaluating Evidence (Primary vs. Secondary Evidence)


Primary evidence: A primary source of evidence is first-hand data
collected through interviews, experiments, fieldwork and other hands-
on efforts. Secondary evidence: A secondary source of evidence is
information published about research done by others. Most library
material is secondary evidence.
A Procedural Guide to Write a Research Paper 23

The Body of Research Paper


The body of a paper reports on the actual research done to answer
the research question or problem identified in the introduction. It
should be written as if it were an unfolding discussion, each idea at
a time. Generally, the body of a paper answers two questions, namely
how was the
A) Research question addressed (methods)
B) What was found (results).
Normally, the body comprises several subsections, whereas actual
structure, organization, and content depend heavily on the type of
paper.
In empirical papers, the paper body describes the material and
data used for the study, the methodologies applied to answer
the research questions, and the results obtained. It is very
important that the study is described in a way that makes it
possible for peers to repeat or to reproduce it.
Case study papers describe the application of existing methods,
theory or tools. Crucial is the value of the reflections abstracted
from the experience and their relevance to other designers or to
researchers working on related methods, theories or tools.
Methodology papers describe a novel method which may be
intended for use in research or practical settings (or both), but
the paper should be clear about the intended audience.
Theory papers describe principles, concepts or models on which
work in the field (empirical, experience, methodology) is based;
authors of theoretical papers are expected to position their ideas
within a broad context of related frameworks and theories.
Important criteria are the originality or soundness of the analysis
provided as well as the relevance of the theoretical content to
practice and/or research in the field.

5. Methodology
The methodology section of body describes the basic research plan. It
usually begins with a few short introductory paragraphs that restate
purpose and research questions. Keep the wording of the research
questions consistent throughout the document.

Population and Sampling


It all begins with a precise definition of the population. The whole
idea of inferential research (using a sample to represent the entire
population) depends upon an accurate description of the population.
24 A Procedural Guide to Write a Research Paper

Usually, just one sentence is necessary to define the population. Examples


are: "The population for this study is defined as all adult customers
who make a purchase in our stores during the sampling time frame",
or "...all home owners in the city of Mumbai", or "...all potential
consumers of product".
While the population can usually be defined by a single statement,
the sampling procedure needs to be described in extensive detail.
There are numerous sampling methods from which to choose. Describe
in minute detail, how the researcher selected the sample. Use specific
names, places, times, etc. Don't omit any details. This is extremely
important because the reader of the paper must decide if the sample
will sufficiently represent the population.

Instrumentation
If researcher is using a survey that was designed by someone else,
state the source of the survey. Describe the theoretical constructs that
the survey is attempting to measure. Include a copy of the actual
survey in the appendix and state that a copy of the survey is in the
appendix.

Procedure and Time Frame


State exactly when did the research begin and when was it completed.
Describe any special procedures that were followed (e.g., instructions
that were read to participants, presentation of an informed consent
form, etc.).

Analysis plan
The analysis plan should be described in detail. Each research question
will usually require its own analysis. Thus, the research questions
should be addressed one at a time followed by a description of the
type of statistical tests that will be performed to answer that research
question. Be specific. State what variables have been included in the
analyses and identify and mention the dependent and independent
variables if such a relationship exists. Decision making criteria (e.g.,
the critical alpha level) should also be stated, as well as the computer
software that was used.

Validity and Reliability


If the survey was being designed by someone else, then describe the
previous validity and reliability assessments. When using an existing
instrument, researcher wants to perform the same reliability
measurement as the author of the instrument. If the researcher had
A Procedural Guide to Write a Research Paper 25

developed his own survey, then he must describe the steps he took to
assess its validity and a description of how the reliability was measured
Validity refers to the accuracy or truthfulness of a measure. Are we
measuring what we think we are? There are no statistical tests to
measure validity. All assessments of validity are subjective opinions
based on the judgment of the researcher. Nevertheless, there are at
least three types of validity that should be addressed and the researcher
should state what steps he took to assess validity
Face validity refers to the likelihood that a question will be
misunderstood or misinterpreted. Pre-testing a survey is a good way
to increase the likelihood of face validity.
Content validity refers to whether an instrument provides adequate
coverage of a topic. Expert opinions, literature searches, and pretest
open-ended questions help to establish content validity.
Construct validity refers to the theoretical foundations underlying a
particular scale or measurement. It looks at the underlying theories or
constructs that explain phenomena. In other words, if the researcher
is using several survey items to measure a more global construct (e.g.,
a subscale of a survey), then he should describe why the researcher
believe the items comprise a construct. If a construct has been identified
by previous researchers, then describe the criteria they used to validate
the construct. A technique known as confirmatory factor analysis is
often used to explore how individual survey items contribute to an
overall construct measurement.
Reliability is synonymous with repeatability or stability. A measure
that yields consistent results over time is said to be reliable. When a
measure is prone to random error, it lacks reliability. There are three
basic methods to test reliability: test-retest, equivalent form, and internal
consistency. Most research uses some form of internal consistency.
When there is a scale of items all attempting to measure the same
construct, then we would expect a large degree of coherence in the
way people answer those items. Various statistical tests can measure
the degree of coherence. Another way to test reliability is to ask the
same question with slightly different wording in different parts of the
survey. The correlation between the items is a measure of their reliability.

Assumptions
All research studies make assumptions. The most obvious is that the
sample represents the population. Other common assumptions are
that an instrument has validity and is measuring the desired constructs.
Still another is that respondents will answer a survey truthfully. The
26 A Procedural Guide to Write a Research Paper

important point is for the researcher to state specifically what


assumptions are being made.
Scope and Limitations
All research studies also have limitations and a finite scope. Limitations
are often imposed by time and budget constraints. Precisely list the
limitations of the study. Describe the extent to which the researcher
believes the limitations degrade the quality of the research.
Writing the methods section
Methods
Report the methodology.
details of each procedure included in the methodology
To be concise, present methods under headings devoted to specific
procedures or groups of procedures.
Style
It is awkward or impossible to use active voice when documenting
methods without using first person, which would focus the
reader's attention on the investigator rather than the work.
Therefore when writing up the methods most authors use third
person passive voice.
Use normal prose in this and in every other section of the paper
avoid informal lists, and use complete sentences.
What to avoid
Methods are not a set of instructions.
Omit all explanatory information and background - save it for
the discussion.
Checklist-5
i. Reported the description of the sample
ii. Reported the type of sampling method used
iii. Reported the software used for analyzing the data
iv. Reported the tool used for collecting the data.
v. Reported the tools used for analyzing the data
vi. Reported the sample size, sample element and sampling extent
vii. Reported the various demographic information
viii. Reported the descriptive statistics of the sample
ix. Reported the type of research Design
A Procedural Guide to Write a Research Paper 27

6. Results and Discussion and Conclusion


Results: The results of all the tools used for analysis must be included
in the results section. The summary of results should be included in
this section if some of the data analysis results into multiple tables
displaying results or the tables are very large. The large tables and
multiple tables already used for preparing summary tables should be
presented under the annexure heading. The results tables should be
interpreted immediately following the tables. Also, sentencing on the
hypothesis tested through statistical tests and presented in the results
section should be presented immediately after the results tables.
If there are a large number of statistical tests presented in the results
section, a summary of these results should be presented to show all
the results together. The summary should not contain too many details
about the results; idea is to provide at a glance results of the study.
The summary provides the readers of this paper a birds view of all
the results of the study.
Discussion: Thinking in terms of the hourglass model (Figure 1) the
discussion and conclusion section is somehow the counterpart to the
introduction since this section should lead the reader from narrow
and/or very specific results to more general conclusions. The function
of the Discussion is to interpret results in light of what was already
known about the subject of the investigation, and to explain new
understanding of the problem after taking the results into consideration.
The Discussion will always connect to the Introduction by way of the
question(s) or hypotheses posed and the literature cited, but it does
not simply repeat or rearrange the Introduction. Instead, it tells how
study has moved us forward from the place left at the end of the
Introduction. Generally, this section includes:
Presentation of background information as well as recapitulation
of the research aims of the present study.
Brief summary of the results, whereas the focus lies on discussing
and not on the details of results.

Recapitulating the Results


Comparison of results with previously published studies.
Conclusions or hypotheses drawn from the results, with summary
of evidence for each conclusion.
Proposed follow-up research questions.
28 A Procedural Guide to Write a Research Paper

Writing the Discussion


Writing a discussion section is where the researcher needs to interpret
work. In this critical part of the research paper, process of correlating
and explaining the data should be started. If someone left few interesting
leads and open questions in the results section, the discussion is simply
a matter of building upon those and expanding them. In an ideal
world, someone could simply reject null or alternative hypotheses
according to the significance levels found by the statistics. That is the
main point of discussion section, but the process is usually a lot more
complex than that. It is rarely clear-cut, and researcher will need to
interpret the findings. For example, one of the graphs may show a
distinct trend, but not enough to reach an acceptable significance level.
Remember that no significance is not the same as no difference,
and researcher can begin to explain this in discussion section. For this
purpose, experiment should be criticized, and be honest about whether
the design was good enough. If not, suggest any modifications and
improvements that could be made to the design. The discussion section
is not always about what is found, but what was not find, and how to
deals with that. Stating that the results were inconclusive is the easy
way out, and one must always try to pick out something of value.
One should always put findings into the context of the previous research
that have been cited in the literature review section. Do your results
agree or disagree with previous research? Finally, after saying all of
this, a statement can be made about whether the experiment has
contributed to knowledge in the field, or not. Once writing the discussion
section is completed, one can move onto the next stage, wrapping up
the paper with a focused conclusion.

Steps for Writing an Effective Discussion Section


The organization of the Discussion is important. Before beginning it
should be tried to develop an outline to organize thoughts in a logical
form, cluster map can be used, an issue tree, numbering, or some
other organizational structure. The steps listed below are intended to
help organize the thoughts. To make message clear, the discussion
should be kept as short as possible while clearly and fully stating,
supporting, explaining, and defending your answers and discussing
other important and directly relevant issues. Care must be taken to
provide commentary and not a reiteration of the results. Side issues
should not be included, as these tend to obscure the message. No
paper is perfect; the key is to help the reader determine what can be
positively learned and what is more speculative.
1. Organize the Discussion from the specific to the general: researcher
findings to the literature, to theory, to practice.
A Procedural Guide to Write a Research Paper 29

2. Use the same key terms, the same verb tense (present tense),
and the same point of view that you used when posing the
questions in the Introduction.
3. Begin by re-stating the hypothesis that were tested and answering
the questions posed in the introduction.
4. Support the answers with the results. Explain how the results
relate to expectations and to the literature, clearly stating why
they are acceptable and how they are consistent or fit in with
previously published knowledge on the topic.
5. Address all the results relating to the questions, regardless of
whether or not the findings were statistically significant.
6. Describe the patterns, principles, and relationships shown by each
major finding/result and put them in perspective. The sequencing
of providing this information is important; first state the answer,
then the relevant results, then cites the work of others. If necessary,
point the reader to a figure or table to enhance the story.
7. Discuss and evaluate conflicting explanations of the results. This
is the sign of a good discussion.
8. Discuss any unexpected findings. When discussing an unexpected
finding, begin the paragraph with the finding and then describe
it.
9. Identify potential limitations and weaknesses and comment on
the relative importance of these to your interpretation of the results
and how they may affect the validity of the findings. When
identifying limitations and weaknesses, avoid using an apologetic
tone.
10. Summarize concisely the principal implications of the findings,
regardless of statistical significance.
11. Provide recommendations (no more than two) for further research.
Do not offer suggestions which could have been easily addressed
within the study, as this shows there has been inadequate
examination and interpretation of the data.
12. Explain how the results and conclusions of this study are important
and how they influence our knowledge or understanding of the
problem being examined.
13. In the writing of the Discussion, discuss everything, but be concise,
brief, and specific.
Style: Use the active voice whenever possible in this section. Watch
out for wordy phrases; be concise and make results points clearly.
30 A Procedural Guide to Write a Research Paper

Use of the first person is okay, but too much use of the first person
may actually distract the reader from the main points

Checklist-6
i. What did the researcher expect to find, and why?
ii. How did the results compare with those expected?
iii. How might researcher explain any unexpected results?
iv. How might the researcher test these potential explanations?
v. Background information
vi. Statement of results
vii. Expected outcome
viii. Reference to previous research
ix. Explanation
x. Exemplification
xi. Deduction and Hypothesis
xii. Recommendation

Conclusion
State the studys major findings
Explain the meaning and importance of the findings
Relate the findings to those of similar studies
Consider alternative explanations of the findings
State the clinical relevance of the findings
Acknowledge the studys limitations
Make suggestions for further research

7. References
Embedding the own work in related literature is one of the essential
parts of research writing. There are citations of references in the text,
as well as a list of cited references at the end of the paper. Different
publishers require Basics of Research Paper Writing and Publishing
different formats or styles of (a) citing in the paper text and (b) for
listing references. The most commonly used referencing systems are:
Name and Year System: References are cited by their respective authors
and the year of publication, e.g., Chuck and Norris (2003) define
...... This system is very convenient for authors, as the citation does
not have to be changed when adding or removing references from the
A Procedural Guide to Write a Research Paper 31

list. The fact that sentences become hard to read when subsequently
citing many references in one single parenthesis; this way is one negative
aspect for readers.
Alphabet-Number System: This system lists the references in
alphabetical order and cites them by their respective number in
parentheses or (square) brackets, e.g., As reported in [4], This system
is relatively convenient for readers, as it does not break the flow of
words while reading a sentence with many citations. On the other
hand, the author has to keep an eye on the references cited in the text
as their numbers may change when the reference list is updated.
Citation Order System: This system is similar to the alphabet-number
system with one major difference: the reference list is not sorted
alphabetically, but in the order of appearance (citation by number) in
the text.
Variations of the referencing systems mentioned above are used in
most of the common style guides. The overall most widely used styles
include: American Psychological Association (APA) Style.
APA Style - is a set of rules developed to assist reading comprehension
in the social and behavioral sciences. APA style" is the set of specific
formatting conventions sanctioned by the American Psychological
Association. The collected procedures of any style are usually referred
to collectively as a "style sheet." Elements of the APA style sheet include
such in-text matters as punctuation standards, margin depth, line
spacing, and heading format. This series of pages, however, will
concentrate mostly on the post-text elements of APA stylethat is,
how to assemble and format entries for specific sources on the
"References" page of a research paper.

Why Formatting is Important


In academic writing, the reader's response to a piece of writing is
crucial. In Such a situation where the research will be published or
circulated, and read by others in the field, style sheets are equally
important. Proper formatting is the hallmark of a detail-oriented
researcher. A writer who makes style sheet errors because he or she
believes they are "no big deal" might be surprised when evaluators
question other details of the paper, such as the data on which the
conclusions are based. After all, if a writer can't get all the periods in
the right places, how can he or she be expected to correctly calculate
an ANOVA or T-test? Finally, remember that the whole purpose of
citing sources is to give readers the information they need to locate
the various sources the researcher has used in the paper. Sometimes,
a reader might simply want to read the whole source to learn more
32 A Procedural Guide to Write a Research Paper

about the subject. Other times, a reader might want to find more
about the context of the quote; perhaps to check that it really applies
in the context in which researcher is using it. In other cases, a reader
might want to verify that the writer actually said whatever is quoted
them as saying. In all of these situations, the reader should be able to
find the original piece of writing based on the information researcher
provides.
The citation format depends on a major factor: the kind of source
you're referring to. The type of the source will determine the elements
that need to be included and the order in which they are presented.
While there are actually many different types of source materials,
there are certain kinds that are cited most often:
Books
Articles In Journals
Chapters In Edited Books
Eric Resources
Internet Resources
Unpublished Sources
Conference Papers
Authors
Publication Dates
Titles
Authors
There are basically two types of authors: people and institutions. There
are specific formatting guidelines for both types of authors.
People as Authors
The number of people credited with authoring a particular document
can range from one to twelve and more. When large groups of people
generate a text, authorship is often assigned to the institution that
these people have in common. In most cases, however, the authors of
a document are named individually, and each name is given in the
bibliographic reference for that work. For each person listed as an
author, the researcher must give that person's last name, and the initials
of any other "name elements" given for that person. If a first or middle
name is given, researcher will provide only the first initial of that first
or last name. If a first or middle initial is given, these initials go in as
read. For authors (though not for editors), type the last name, then a
comma, then first and middle (and any subsequent) initials. Put a
period after each initial. For example:
A Procedural Guide to Write a Research Paper 33

John Wilkes Booth Booth, J. W.


John F. Kennedy Kennedy, J. F
C. Thomas Howell Howell, C. T.
P. D. James James, P. D.
J. R. R. Tolkien Tolkien, J. R. R

When multiple authors are given for a single document, all authors
are listed in the order given in the document. Put a comma between
each person's name, and put an ampersand (&) before the final name.
If only two authors are given, this means the ampersand goes between
the first and second author. Since the list of authors will necessarily
end with the period that follows the final initial of the final author
listed, no further punctuation is needed. Here are some examples:
One author Blythe, Q. L.
Two authors Martin, U. M., & Wenmbsley - Meekes, I.
Three authors Aaron, H., Upswitch, J. T., & Rennington, S.
Seven authors Sleepy, A., Happy, B., Grumpy, C., Sneezy, D., Bashful, E., Dopey,
F., & Doc, G.

Institutions as Authors
Sometimes a particular person or group of people is not credited with
authorship of a document. In cases like this, the work is said to have
"institutional authorship". Citing institutions as authors is quite simple.
Simply spell out the name of the institution and end it with a period.
Do not use abbreviations in institutional authors: spell everything out.
Capitalize every word in the name of the institution, except for
prepositions (like of, to, and from), articles (like a, an, and the), and
conjunctions (like and or). However, if the first word of the title is a
preposition, article or conjunction, capitalize it anyway.
Institutional Authors Association of Indian Management Schools.
Securities and Exchange Board of India.

Publication Dates
It's important to know the date a document was published. This
information tells the reader how much time has passed between the
writing and publication of the source document and the writing of
your own research paper. Obviously, in research writing, the newer
the information, the better. The date of publication is almost always
the second element of the reference, coming right after the author(s).
34 A Procedural Guide to Write a Research Paper

With few exceptions, only the year of publication is given. The year is
included in parenthesis, and followed by a period.
Standard form 1994

Republished Books
Sometimes a book is republished for various reasons. If a book is out
of print, and sufficient demand exists, a publisher might begin printing
it again to capitalize on that demand. When this happens, citing the
newer publication date would be misleading-the book is exactly the
same as when it was originally published. In cases like this, two dates
are given: the original publication date and the new publication date.
The two dates are included in parentheses, separated by a slash. The
right parenthesis is followed by a period.

No Date Given
In rare cases, no date is given for the publication of a source. While
this is much more common with older sources, this still happens today.
Instead of a date simply put "n. d." in the parentheses when a date is
not available. Follow the right parenthesis with a period.
Standard form (1994)
Republished source (1969/1996)
No date given (n. d.)

Titles
Every document has (or should have) a title. Some citations--such as
articles in journals and chapters in edited books--will actually need
two titles: the title of the smaller work (the article or chapter) and the
title of the larger work (the journal or book). Whether one or two
titles are necessary will depend on the source you are working with.
Titles are often broken into two or more parts. Sometimes a subtitle is
tacked onto a title to clarify the meaning of the title. Sometimes the
title as written is purposefully obscure; the subtitle in these cases
indicates the source's real content. If a source like a book or monograph
is part of a series, the series title is sometimes included as a sort of
subtitle. It's important to know how to format the various elements of
your source's title.
Capitalize the first word in each element: main title, subtitle, and
series name. If any element contains a proper name, capitalize that
too. Use a colon (:) between main title and subtitle, main title and
series name, or subtitle and series name. Precede a series name with
A Procedural Guide to Write a Research Paper 35

the abbreviation "Vol." and the source's number within that series, as
in "Vol. 2." If all three elements exist, put the series name last.
The titles of larger sources (such as books and journals) are underlined,
while the titles of smaller sources (such as articles and chapters) are
not. Additionally, some titles are followed by a period, while others
are not. Check the section on the individual source type for further
information about formatting the title(s).
Title only A Handbook of Psychology
Title and subtitle Project Management: Planning and Control
Title and series name Business Economics in The Current State of
Business Discipline: Vol. 2.
Title, subtitle, and series name Pricing, Business Economics, The Current State of
Business Discipline: Vol. 2

A book is a work that is published once, not as part of a regular


series. Books can be revised and republished: each revision is considered
a new edition of the same book. A book, as we are defining it here, is
distinguished from an edited book in that the entire text of the work
is written by the same author, group of authors, or institution. If
individual sections of the work you are citing were written by different
authors, refer to the page, chapters in edited books.
Necessary information and where to find it
Author(s) of book Can generally be found on both the cover (and or
dust jacket) and title page.
Year of publication Can sometimes be found at the bottom of the title
page; otherwise look on the page directly behind the
title page, where it says "Copyright ."
Title of book Can be found on both the cover (and or dust jacket)
and title page (naturally).
Edition/revision number Is usually indicated on the cover (or dust jacket) or
(if any) title page. If no edition number or revision information
is present on either of these places, assume that the
book is an original edition.
Place of publication Is usually listed on the title page
Publishing entity Is almost always listed at the bottom of the title page.
If no listing is made here, try the page directly behind
the title page.

Citation Formats
Author, A. A. (1996). Title of book. City: Publisher.
Author, A. A., & Author, B. B. (1996). Title of book: Subtitle of book
(edition). City, ST: Publisher.
36 A Procedural Guide to Write a Research Paper

Author, A. A., Author, B. B., & Author, C. C. (1996). Title of book: Vol.
1. Title of series. City, Country: Publisher.
Journal is a blanket term for a scholarly publication that is published
periodically-generally either monthly or quarterly. A journal is distinct
from a magazine in that journals are generally for a very specific
audience: experts within a specific scholarly or professional field.
Magazines, on the other hand, usually have a more general readership.
While magazines sometimes report new or ongoing research, the
information is often given second-hand. If an article in a magazine
reports any kind of scholarly research, chances are pretty good that
the information was originally presented in a journal.
The information contained in a journal article is often more valuable
than the information found in books, because turnaround time for
journals is usually quite short. While it takes months or years for a
book to be published, an article could conceivably be written, submitted,
accepted, and published in a journal all in a matter of weeks. Thus,
since journal articles generally present fresh, cutting-edge information,
their value and validity in the research process cannot be understated.
Necessary information and where to find it
Author(s) of article Can be found either in the table of contents or on the
first page of the article.
Year of publication Is almost always included on the front cover of the journal,
or on the journal's title page. Often the publication year
can also be found on the first page of each article, at the
top of each page, or on the journal's spine.
Title of article Is printed in the table of contents and on the first page
of the article.
Title of journal Is indicated on the journal's front cover or title page.
Sometimes it will also be printed at the top of each page
and on the journal's spine.
Volume number Is usually noted on the front cover or title page of the
journal.
Issue number Is used only if the journal paginates each issue
individually; the issue number can usually be found either
on the front cover or title page. Sometimes the issue
number is also found on the first page of the article.
Pages of chapter Are sometimes specified as a range in the table of contents;
otherwise, make a note of the first and last page numbers
of the actual article.
A Procedural Guide to Write a Research Paper 37

Citation Elements
Author(S) of Article
For journal articles, put each author's last name, then a comma, then
the first initial of the given name, then any additional initials. A period
should follow each initial. Separate the last author from the second-
to-last author with a comma and ampersand (&). Separate any additional
authors by commas.
One author Keely, J. T.
Two authors Luggio, M. R., & Moulton-Kowinski, R. S.
Three authors Jackson, B. I., Jackson, G. P., & Jackson, I. G.

Year of Publication
Even though a month or season of publication may be given for a
specific journal, include only the year of publication, in parenthesis,
and end with a period. (An individual issue within a journal's yearly
output is indicated by the page range, if the journal paginates by
volume, or issue number, if the journal paginates by issue.)
Standard form (1993).
(1982).

Title of Article
Give the full title of the article, including the subtitle if one is given.
Capitalize only the first word of the title, and the first word of any
subtitle; also capitalize any proper names in the title. Separate title
and subtitles with a colon (:); journal articles do not get any other
special formatting: no quotation marks or underlining. End the title
with a period.
Standard form Statistical Methods
Title and subtitle Statistical Methods: Concepts and Applications.

Title of Journal
The title of the journal is given in full, including the subtitle if any.
Capitalize only the first word of the title, and the first word of any
subtitle; also capitalize any proper names in the title. Separate title
and subtitle with a colon (:); italicize the title and subtitle and follow
them with a comma, which is also in italics.
38 A Procedural Guide to Write a Research Paper

Standard form Prestige International Journal of Technology and


Management
Title and subtitle Sanchayan: Prestige international journal of technology and
management

Volume Number
The volume number indicates the total number of years a particular
journal has been published-one volume per year. Sometimes a journal
prints its volume number in Roman numerals; if this is the case, translate
the volume number into Arabic (regular) numerals. The volume number
is preceded by a comma and space, followed by a comma. If no issue
number is necessary (see next section), the journal title, comma and
space, volume number, and comma are italicized continuously. If an
issue number is present, only the journal title, comma and space, and
volume number are italicized. The issue number, and the comma which
follows it, is never italicized.
Volume alone Journal title, 25,
Volume and issue Journal title, 18 (6),

Issue Number
An issue number is only provided if the particular journal starts
pagination over at page 1 at the beginning of each issue. If pagination
does not start over for every issue, issue numbers are redundant-they
give more information than is necessary to re-locate the source. However,
if each issue's pagination begins with page 1, give the issue number
in your reference entry. After the volume number, put a space, then
the issue number in parentheses, then a comma. The issue number,
the space before it, and the comma after it are not italicized.
Standard form Journal title, 25 (6),
Journal title, 18 (3),

Page Numbers
Page numbers give the range of pages for the journal article. The first
number is the first page on which the article appears; the second
number is the last page of the article's text, notes or bibliography
(whichever comes last). The page numbers come directly after the
comma that follows the volume or issue number, and are preceded by
a space, separated by a hyphen, and followed by a period.
A Procedural Guide to Write a Research Paper 39

After volume 18, 94-156.


After issue 9 (6), 221-238.

Citation Formats
Author, A. A. (1996). Title of journal article. Title of journal, volume
number, first page-last page.
Author, A. A., & Author, B. B. (1996). Title of journal article: Subtitle
of journal article. Title of journal, volume number, first page-last page.
Author, A. A., Author, B. B., & Author, C. C. (1996). Title of journal
article. Title of journal: Subtitle of journal, volume number (issue
number), first page-last page.

Citation of Chapters in Books


Author, A. A. (1996). Title of chapter. In E. E. Editor (Ed.), Title of
book (pp. first page-last page). City: Publisher.
Author, A. A., & Author, B. B. (1996). Title of chapter: Subtitle of
chapter. In E. E. Editor, & F. F. Editor (Eds.), Title of book: Subtitle of
book (edition, pp. first page-last page). City, ST: Publisher.
Author, A. A., Author, B. B., & Author, C. C. (1996). Title of chapter:
Subtitle of chapter. In E. E. Editor, F. F. Editor, & G. G. Editor (Eds.),
Title of book: Subtitle of book (edition, pp. first page-last page). City,
Country: Publisher.
Unpublished refers to any information source that is not officially
released by an individual, publishing house, or other company, and
can include both paper and electronic sources. Some examples of
unpublished sources may include manuscripts accepted for publication
but still "in-press," data from an unpublished study, letters, manuscripts
in preparation, memos, personal communications (including e-mails),
and raw data.
Author, A. A. (1996). Title of paper or manuscript. Unpublished
manuscript.
Author, A. A., & Author, B. B. (1996). Title of paper: Subtitle of paper.
Manuscript submitted for publication.
Author, A. A., Author, B. B., & Author, C. C. (1996). [Topic of study or
untitled work]. Unpublished raw data.
Huge quantities of information are now available electronically via
the Internet. Most college students now have access to the World
Wide Web, either on computers at school or at home by dialing up a
server with a modem. Electronic texts (or "e-texts") are popping up
40 A Procedural Guide to Write a Research Paper

more and more in research papers. There are a number of reasons for
this. On one hand, the internet gives users access to the information
on hundreds of thousands of servers throughout the world-the breadth
and depth of available knowledge is incredible. On the other hand,
the documents on the internet are "surfable" from a single location,
bringing a global library to your computer. However, several problems
have arisen from this surge in the availability and popularity of
electronically-accessed information.
First, many researchers have no idea how to cite electronic texts. Only
the most current style manuals give any hint as to how to write a
reference entry for, say, a Web page; even then, the citation formats
are sometimes confusing and outdated. Interestingly enough, it is Web
sites like this one that can help solve this problem.
Volume number only Journal Title [On-line serial], 56.
Issue number only Journal Title [On-line serial], (3).
Volume and issue Journal Title [On-line serial], 56 (3).
None Journal Title [On-line serial].

Second, compared to print-based resources, e-texts are relatively unstable.


While a book consists of information encoded in ink on a printed
page, an e-text exists as magnetic pulses over a telephone line.
Discounting mishaps such as fire, flood, and theft, books are fairly
permanent. As anyone who uses computers can tell you, though, servers
go down and phone connections get cut. Electronic documents can
literally be here today and gone tomorrow. As we've mentioned before,
the whole purpose of a reference is to allow readers to find a source
themselves. If the source itself no longer exists, this causes problems
for validity and verification.
One possible solution to this problem is to keep careful records. Saving
e-texts (either as screenshots or text files) will allow you to produce
the source for a reader, even if the document has disappeared from
the server on which you found it. In addition, it's also wise to use
many different types of documents-books and journals, as well as e-
texts-rather than relying heavily on one kind of source.
Necessary information and where to find it
Author(s) of document If an author is given it is usually at the very
beginning or very end of a particular document;
when in doubt, look for an email address-this
will often lead you to the name of the person
who authored the document
A Procedural Guide to Write a Research Paper 41

Date of publication If given, the document's date will be included


somewhere in its text. There is a special way to
note if the document has no specific date. Date of
publication on the web (or the date of most recently
version)
Title of document The placement of documents' titles varies.
Generally, web authors place a title at the top of
the actual web page. If no title is there, use the
title of the window as it opens in your web browser
Type of document Varies according to the source of the document.
See below for details on this citation element
Volume and issue number If a volume and issue number is given, it will
(on-line journals) probably be in the header for the document, close
to the title

Volume and/or Issue Number (On-Line Journals)


For on-line journals which give a volume number only, put the volume
number after the comma which follows the journal's title and descriptor,
and follow it with a period. The volume number, like the title, should
be underlined. If the on-line journal in question gives an issue number
only, put the issue number in parentheses, after the comma which
follows the journal's title and descriptor. Follow the issue number--or
rather, the parenthesis which brackets it, with a period. Issue numbers
are never underlined.
For on-line journals which give a volume number and issue number,
put a comma after the journal title and descriptor, then a space, then
the volume number, then a space, then the issue number in parentheses,
then a period. Only the journal title and volume number are underlined.
If an on-line journal gives neither volume nor issue number, simply
put the journal's title and descriptor, and end with a period.
Citation Formats for Online Journal
Author, A. A. (1996). Title of electronic text [E-text type]. Location of
document
Author, A. A., & Author, B. B. (1996). Title of electronic journal article.
Title of electronic journal [On-line serial], Volume number (Issue
number). Email address and request message
Citation Formats
Author, A. A. (1996). Title of book. City: Publisher.
Author, A. A., & Author, B. B. (1996). Title of book: Subtitle of book.
City, ST: Publisher.
42 A Procedural Guide to Write a Research Paper

Author, A. A., Author, B. B., & Author, C. C. (1956/1996). Title of


book: Vol. 1. Title of series. City, Country: Publisher.
Journal Articles
Citation Formats
Author, A. A. (1996). Title of journal article. Title of journal, volume
number, first page-last page.
Author, A. A., & Author, B. B. (1996). Title of journal article: Subtitle
of journal article. Title of journal, volume number, first page-last page.
Author, A. A., Author, B. B., & Author, C. C. (1996). Title of journal
article. Title of journal: Subtitle of journal, volume number (issue
number), first page-last page.
Chapters in Edited Books
Citation Formats
Author, A. A. (1996). Title of the article. In E. E. Editor, Title of book
(pp. 1-25). City: Publisher.
Author, A. A., & Author, B. B. (1996). Title of the article. In E. E.
Editor, & F. F. editor, Title of book: Subtitle of book (2nd. ed., pp. 1-
25). City, ST: Publisher.
Author, A. A., Author, B. B., & Author, C. C. (1956/1996). Title of the
article. In E. E. Editor, F. F. Editor, & G. G. Editor, Title of book:
Subtitle of book (Rev. ed., pp. 1-25). City, Country: Publisher.
Eric Documents
Citation Formats
Author, A. A. (1996). Title of ERIC document (Report No. AB-12).
City, ST: Sponsoring Entity. (ERIC Document Reproduction Service
No. ED 123 456)
Institutional Author. (1996). Title of ERIC document (Report No. AB-
12). City, Country: Sponsoring Entity. (ERIC Document Reproduction
Service No. ED 123 456)
Internet Documents
Citation Formats
Author, A. A. (1996). Title of electronic text [E-text type]. Location of
document
Author, A. A., & Author, B. B. (1996). Title of electronic journal article.
Title of electronic journal [On-line serial], Volume number. Email address
and request message
A Procedural Guide to Write a Research Paper 43

Checklist-7
Check the information for authors for writing styles
Do not site too old reference.
Order it according to the requirement of publisher(alphabetically
or by appearance)
Cite your own publish work also.
Check if there are red marks in the word file it indicate typos in
the work.
Check if there are green marks in the word file for grammatical
error.

Important Considerations
Avoid Plagiarism-Documenting the Sources
Give credit to every single source used in the article, even if the
information is changed into own words. When writer's exact wording
is used, put quotation marks around those words and use a citation.
Plagiarism means writing facts, opinions or quotations taken from
someone else or from books, magazines, newspapers, journals, movies,
television or tapes as if they were own and without identifying the
source. Unintentional plagiarism still is plagiarism. Document all sources
using the citation style of either the American Psychological Association
(APA). Include the works cited at the end of the research paper.
The researcher must acknowledge the source of any:
Statistic
Paraphrase
Concrete fact
Direct quotation
Idea other than your own
Opinion held by someone else
Information not commonly known

Is It Premature?
Many papers are rejected because they are "premature". This
characterization means that the work appears to be interesting, but it
has not progressed far enough to be worth reporting in a conference
paper. The paper may have more conjectures or opinions than results.
Perhaps there are ideas that look promising, but they have not been
worked out in enough detail. Perhaps more analysis of the issues is
44 A Procedural Guide to Write a Research Paper

needed. Perhaps the proposed technique sounds interesting, but its


value cannot be determined until it has been implemented. An experience
paper may be called premature if it offers conjectures about expected
results rather than reporting observed results.
The decision to accept or reject a paper that is premature is a judgment
call by the program committee. A committee may choose in some
cases to accept a paper that presents early work of a profound or
provocative nature.

Is It Sound?
If the correctness of the work is in doubt, the paper will probably be
rejected. Soundness of ideas or techniques can often be demonstrated
by the depth and clarity of the analysis, or by reference to a working
implementation. Questions of soundness often arise for papers that
present algorithms or proofs (see the next two sections).

Proofs
A formal proof is of value only if it is convincing. While a reviewer
may be able to spot an error in a faulty proof, one cannot expect a
reviewer to validate a proof. Therefore, any sloppiness in the formalism
is grounds for suspicion (and likely rejection of the paper). It is better
to avoid formality than to misuse it.
In addition to being convincing, a proof must prove something worth
proving. It is not worth anyone's time to read a paper that proves an
irrelevant result. Be careful about including a proof in an effort to
make your paper more "prestigious". This approach may backfire, as
a sloppy or unmotivated proof can easily cause a paper to be rejected
that otherwise might have been accepted.

Generality
A paper that can demonstrate the value (or disadvantage) of a subject
could be of great interest to all researchers of the same subject.

Don't Be Isolated
If the researcher is writing a research paper, it is important that to be
familiar with the larger area, and not isolate to the narrower domain
of object technology.

Writing
Effective communication is important for a successful paper. A paper
has little value if its intended audience cannot understand it. An
incomprehensible paper cannot even be reviewed. Most authors will
A Procedural Guide to Write a Research Paper 45

benefit from having their paper reviewed by a skilled writer. If your


native language is not English, you have an extra burden. If at all
possible, try to have your paper reviewed by a native or fluent speaker
of English.

Feedback
Most papers are substantially improved by getting feedback from other
people. Giving a talk to a small group is an excellent way to get
feedback and to force you to organize the thoughts. The reviewers
operate under strict time constraints, and the committee must make
quick decisions. A paper will not receive the careful attention that it
would from a journal. Furthermore, the committee may need to satisfy
other constraints in putting together a successful program. As a result,
some good papers will be rejected. Authors should carefully consider
any reviewer comments and get opinions from experienced colleagues
before deciding whether to abandon the effort or to revise the paper
and submit it elsewhere.
46 A Procedural Guide to Write a Research Paper
A Procedural Guide to Write a Research Paper 47

PartII
Sample Research Papers
48 A Procedural Guide to Write a Research Paper
A Procedural Guide to Write a Research Paper 49

Image Congruence and Brand


Attitude amongst Teenagers

Dr. S.S. Bhakar, Dr. Saloni Mehra, Yahomandira Kharade, Shikha


Priyadarshani, Prerna Bisht & Pratiksha Pathak

ABSTRACT
A large number of studies have been carried out to evaluate the effect of
image congruence on repurchase intention, customer satisfaction or brand
acceptance and very few have evaluated the effect of image congruence on
brand attitude. Also, majority of these studies have computed congruence
through difference in the self image and the brand image measured separately.
The main focus of this work was to evaluate cause and affect relationship
between the Image congruence and brand attitude amongst teenagers. The
congruence between the self image and the brand image of the mobile phone
that the respondents were using was directly measured using structured 7
point questionnaire. The attitude of teenagers towards the mobile phone brand
that they were using was also measured using structured questionnaire. The
major findings of the study indicate that higher the congruence between the
self image and the mobile phone brand image, more positive the attitude
towards the mobile phone brand.
Key Words: Image Congruence, Self Image, Brand Image, Brand Attitude,
Personality

Introduction
Brand Attitude: It can be defined as buyers overall evaluation of the
brand w. r. t its perceived ability to meet a currently relevant motivation.
In other words, it is the opinion of consumers toward a product
50 A Procedural Guide to Write a Research Paper

determined through market research. Brand Attitude is also known


as the consensus attitude of potential consumers toward a product.
The brand attitude will tell what people think about a product or
service, whether the product answers a consumer need, and just how
much the product is wanted by the consumer.
Knowledge of brand attitude is very helpful in planning an advertising
campaign. Brand association refers to what the consumers believe the
product does, how well it does it, and how likely they are to find it
useful. Knowledge of a product's brand association is developed through
market research such as asking focus groups. It is used in preparing
advertising for products.
Customer brand attitude can be thought of as having two components:
1. The strength of positive or negative valence that a customer
experiences with regard to a particular brand.
2. The conviction that the positive or negative valence is accurate.
In other words, how much does the customer like/dislike a brand,
and how convinced is the customer that this perception about
the brand is correct?

Literature Review
Self concept has become a very important factor in contributing
significantly to brand attitude as the customers not only give importance
to need fulfilling features but also to symbolic or social significance of
the product (Rares Mocanu, 2013; Park et al., 1986; Sirgy, 1982). The
importance of symbolic or social significance has increased in the twenty
first century as product features of most of the brands vying for customer
interest in each product category are similar. In light of this, self-
congruity theory provides a framework for studying the construct
brand personality and its relationship to brand attitudes. Parkar (2005)
highlighted the importance of self congruity where he described that
self-brand congruity model hypothesizes that favorable brand attitudes
should result as the congruence increases between consumer self-image
and a brands image.
The basis of differentiation has shifted from product features to symbolic
differences of brands. In this scenario the brands have become important
and have replaced products themselves (Salzer-Morling and Strannegard,
2004). The customers have built self congruency between the self image
and the brand image (Escalas and Bettman, 2005). The brand building
processes actually provide cultural cues to the customers (McCracken,
1993) to communicate their personality through the brands they use
(Piacentini and Mailer, 2004).
A Procedural Guide to Write a Research Paper 51

Products and brands are perceived by consumers as having images or


symbolic meaning these good symbols assists an individual in defining
and enhancing his self concept for himself and for others. Purchasing
and consumption are vehicles of self expression and therefore,
individuals consume certain product brands to improve and enhance
their self concept through the consumption of goods as symbols (Graeff,
1996; Feinberg et al., 1992; Schwer & Daneschvary, 1995; Fournier,
1998). In other words the brands that they will prefer will be those
that the consumer perceives as having images which are most consistent
with their self concept (Schiffman & Kanuk, 1997; Solomon, 1996).
Also the symbolic meaning demonstrated by the brands can make
consumers brand preferences more enduring (Rajagopal, 2005).
Two methods have been used to measure self congruity; indirect method,
also called adhoc method. The indirect method of self congruity
compares self personality with the personality of same brand users,
and closure these personality scores are, higher the brand congruity
(Birdwell, 1968; Dolich, 1969; Gould, 1991; Graeff, 1996; Grubb &
Grathwhohl, 1967; Sirgy, 1986). The disadvantage of this measure is
that it cannot be fully validated; its construct validity may also be low
because some personality traits of self or the brand may not be included
in the personality traits questionnaires (Hogg, Cox & Jeeling 2000).
The direct method self congruity measure was first advocated by Sirgy
(1997) and measures self congruity through a single direct measure.
Direct method of measuring self congruity has been used in the current
study.

Objectives of Research
To develop and standardize a questionnaire on brand attitude
and image congruence in Indian context.
To find out relationship between brand attitude and image
congruence.
To open new areas for further research.

Research Methodology
The study was causal in nature with survey method being used to
conduct the study. Image congruence and brand attitude were measured
using interval scale and structural equation modeling approach was
used to evaluate the effect of image congruence on brand attitude.
The study was focused on evaluating the image congruence of teenagers
with the mobile phones that they were using and their brand attitude
towards the mobile phone brand. The major mobile phone brands
that were popular at the time of study were: Pepsi and Thumsup.
52 A Procedural Guide to Write a Research Paper

Sample Design
The study was carried out on teenagers belonging to Gwalior city (A
city in Madhya Pradesh state of India with a population of 15 lakhs).
The city had 80% mobile phone penetration at the time of study.
Individual teenagers were used as sample element. The data was
collected from students studying in higher secondary schools (classes
X, XI and XII) and the first year students of undergraduate courses.
Since the complete list of students studying in these classes was not
available to the researcher non probability, purposive sampling technique
was used to select the sample elements. The Sample Size for the study
was 150 respondents.
Tools used for data collecting-Self designed questionnaires were used
to collect the data. Data was collected on a seven point Likert type
scale where one indicated minimum agreement and seven indicated
maximum agreement with the statements in the questionnaires.
Traditionally self congruence has been measured through differences
between self image and brand image (Kressmann, et al., 2006; Sirgy &
Samli, 1985). In this study the congruence between self image and
brand image was measured through direct measure as advocated by
Sirgy, et al. (1997) and Sirgy, et al. (2007)
Tools used for data analysis-Both the questionnaires used in the study
were tested for internal consistency reliability through computation
of Cronbachs Alpha coefficient using PASW 18 software. The data
collected using the questionnaires were put through confirmatory factor
analysis. The relationship between the image congruence and the brand
attitude was evaluated using Structural Equation Modeling approach,
applied using AMOS software. The effect of demographics was evaluated
on both variables of the study using MANOVA.

Data Analysis and Interpretations


Image Congruence
The internal consistency reliability of Image Congruence questionnaire
was computed using PASW 18 and as indicated in table 1 below the
Cronbachs Alpha coefficient was found to be 0.860. Reliability coefficients
above 0.7 are considered good enough to treat the questionnaire through
which the data was collected reliable. Thus the reliability of the Image
congruence measure was high.
Table 1: Reliability analysis of Image Congruence Measure
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.861 .860 12
A Procedural Guide to Write a Research Paper 53

Factor Analysis Image Congruence


Table 2: Kaiser Meyer Olkin measure of Sampling Adequacy and
Bartletts Test of Sphericity
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .842
Bartlett's Test of Sphericity Approx. Chi-Square 666.001
Df 66
Sig. .000

The KMO measure of sampling adequacy should be greater than 0.5


for satisfactory analysis. From the details in Table 2 it is evident that
the KMO measure of sampling adequacy value is 0.842. It indicates
that the sample size used in the study was adequate to consider the
data normally distributed. Bartletts test of sphericity tests the null
hypothesis the item-to-item correlation matrix is an identity matrix.
The value of Chi-Square was found to be 666.001 which is significant
as its associated probability is less than 0.05 (actually it is 0.000).
These results indicate that the item-to-item correlation matrix is not
an identity matrix and therefore, the data collected from respondents
is suitable for factor analysis.
Principle Component Analysis (PCA) was used as the method for
convergence and varimax rotation with Kaiser Normalization was used
to rotate and refine the factors. The rotation converged on three factors
after 13 iterations. The summary of exploratory factor analysis is given
below in table 3.
Table 3: Exploratory factor Analysis Image Congruence
Factor Name Eigen Variance Items converged Factor
Value Explained Loads
Sociable 2.827 23.560 10 Outgoing Shy .737
8 Sophisticated-Unsophisticated .728
11 Formal-Informal .687
1 Delicate-Rough .596
2 Active-Passive .582
Assured 2.275 18.952 7 Self-confident-Not Self Confident .722
9 Brand Conscious-Not Brand Conscious .657
3 Urban-Rural .605
5 Conventional-Unconventional .555
12 Vibrant-Dull .493
Stylish 2.029 16.912 6 Modern-Old-Fashioned .875
4 feminine-Masculine .852
Note: The cumulative Variance extracted was = 59.428
The results of the exploratory factor analysis were used as the basis
for the formation of factors of Image Congruence for the purpose of
Confirmatory Factor Analysis (CFA). AMOS 18 software was used to
54 A Procedural Guide to Write a Research Paper

analyze the conceptual model of Image congruence using CFA. The


final model after modifying the initial model on the basis of modification
indices is given in the fig 1 below:
Fig. 1: Showing Results of Confirmatory Factor Analysis Image Congruence

Testing of the Conceptual model: Image Congruence


The conceptual model above was tested through goodness of fit tests.
The global goodness of fit index Chi-square for the model is 32.303
significant at 0.120. Indicating that Chi-square is not significant and
therefore the conceptual model has good fit with the data. In addition
to the Chi-square goodness of fit index there are three sets of goodness
of fit indices and one set of badness of fit index. All the goodness of
fit indices are above 0.9 indicating further that the model very well
fits to the data. The badness of fit index Root Mean Square error
approximation RMSEA should be lower than 0.05. The table below
indicates that the RMSEA value is 0.048, showing that the model has
good fit.
Table 4: Showing the CFA Results Applied on Image Congruence
Measure
df. p-value /df. GFI RMSEA NFI CFI AGFI
Criterion - - 1< /df.<2 0.90 <0.05 0.90 0.90 0.90
Obtained values 32.303 24 .120 1.346 0.957 0.048 0.930 0.980 0.920
Chi- Square df. - Degrees of Freedom
GFI Goodness of Fit Index RMSEA- Root Mean Square Error Approx.
NFI Normated Fit Index CFI - Comparative Fit Index
AGFI Adjusted Goodness of Fit Index
A Procedural Guide to Write a Research Paper 55

Brand Attitude
The internal consistency reliability of Brand Attitude questionnaire
was computed using PASW 18 and as indicated in table 4 below the
Cronbachs Alpha coefficient was found to be 0.723. Reliability coefficients
above 0.7 are considered good enough to treat the questionnaire through
which the data was collected reliable. Thus the reliability of the Image
congruence measure was high.
Table 4: Reliability of Brand Attitude Measure
Reliability Statistics
Cronbach's Alpha N of Items
.723 4

Table 5: KMO and Bartlett's Test of Sphericity


applied on Brand Attitude
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .691
Bartlett's Test of Sphericity Approx. Chi-Square 119.415
Df 6
Sig. .000

The KMO measure of sampling adequacy should be greater than 0.5


for satisfactory analysis. From the details in Table 5 it is evident that
the KMO measure of sampling adequacy value of 0.691 indicates that
the sample size was adequate to consider the data normally distributed.
Bartletts test of sphericity tests the null hypothesis the item-to-item
correlation matrix is an identity matrix. The value of Chi-Square is
119.415 which is significant as its associated probability is less than
0.05 (actually it is 0.000). These results indicate that the item-to-item
correlation matrix is not an identity matrix and therefore, the data
collected from respondents is suitable for factor analysis.
The exploratory Factor Analysis using PCA as the method of convergence
and varimax as the method of rotation converged on single factor.
Therefore, CFA was not applied on the results obtained using EFA.
Structural Equation modeling approach was used to develop a model
for evaluation of the cause and effect relationship between the three
factors of Image Congruence on Brand Attitude. The final model after
applying modifications based on the modification indices is displayed
at fig 2 below:
56 A Procedural Guide to Write a Research Paper

Fig 2: Image Congruence and Brand Attitude: Structural Model


The symbols used in the above diagram represent the following variables:
IC1 Sociable
IC2 Assured
IC3 Stylish
BA Brand Attitude

Testing of the Structural Model for Goodness of Fit


The conceptual model shown at fig 2 above was tested through goodness
of fit tests. The global goodness of fit index Chi-square for the model
is 32.303 significant at 0.120. Indicating that Chi-square is not significant
and therefore the conceptual model has good fit with the data. In
addition to the Chi-square goodness of fit index there are three sets of
goodness of fit indices and one set of badness of fit index. All the
goodness of fit indices are above 0.9 indicating further that the model
very well fits to the data. The badness of fit index Root Mean Square
error approximation RMSEA should be lower than 0.05. The table
below indicates that the RMSEA value is 0.048, showing that the model
has good fit.
df p-value /df. GFI RMSEA NFI CFI AGFI
Criterion 1< /df.<2 0.90 <0.05 0.90 0.90 0.90
Obtained values 32.394 29 .303 1.117 0.960 0.028 0.937 0.993 0.923
Chi- Square df. - Degrees of Freedom
GFI Goodness of Fit Index RMSEA- Root Mean Square Error Approx.
NFI Normated Fit Index CFI - Comparative Fit Index
AGFI Adjusted Goodness of Fit Index
A Procedural Guide to Write a Research Paper 57

Standardized Regression Results showing Causal Relationships

Estimate Standardized Regression S.E. C.R. P


BA <--- IC3-Stylish -.231 -.263 .139 -1.660 .097
BA <--- IC2- Assured 1.051 .518 .493 2.133 .033
BA <--- IC1 - Sociable .695 .675 .195 3.562 ***

The above table shows the cause and effect relationship between the
three factors of Image Congruence and the brand attitude.
Ho1: There is no effect of Sociable factor of the Image congruence
The standardized regression coefficient showing cause and effect
relationship between the sociable factor of Image Congruence and the
Brand attitude is 0.675 significant at 0.000 indicating that sociable
factor of Image congruence has significant positive relationship with
Brand Attitude.
Ho2: There is no effect of Assured factor of the Image congruence
The standardized regression coefficient showing cause and effect
relationship between the Assured factor of Image Congruence and the
Brand attitude is 0.518 significant at 0.033 indicating that Assured
factor of Image congruence has significant positive relationship with
Brand Attitude.
Ho3: There is no effect of Stylish factor of the Image congruence
The standardized regression coefficient showing cause and effect
relationship between the Stylish factor of Image Congruence and the
Brand attitude is -0.263 significant at 0.097 indicating that Stylish factor
of Image congruence has insignificant negative relationship with Brand
Attitude.
MANOVA was applied to evaluate the effect of Gender and Brand on
the two variables of the study viz. Image Congruence and Brand
Attitude. The results of MANOVA are displayed in table below:
Source Dependent Variable Sum of Squares df Mean Square F Sig.
Corrected dimension Brand congruence 1709.659a 3 569.886 9.525 .000
Model 1 Brand attitude 435.765c 3 145.255 12.240 .000
Intercept dimension Brand congruence 545282.934 1 545282.934 9113.940 .000
1 Brand attitude 121703.235 1 121703.235 10255.45 .000
Gender dimension Brand congruence 72.932 1 72.932 1.219 .271
1 Brand attitude 4.946 1 4.946 .417 .520
Brand dimension Brand congruence 1400.433 1 1400.433 23.407 .000
1 Brand attitude 396.262 1 396.262 33.391 .000
Gender * dimension Brand congruence 34.586 1 34.586 .578 .448
Brand 1 Brand attitude .660 1 .660 .056 .814
58 A Procedural Guide to Write a Research Paper

As can be seen from the table above the effect of gender on both the
variables, image congruence and brand attitude is insignificant (p Values
.271 and .520). The effect of Brand however, is significant on both the
variables; image congruence and brand attitude; as the P values for
the variables are .000. The interaction effect between gender and Brand
on both the variables of the study is insignificant. The above results
show that the brands used in the study had different images and the
brand attitude of the respondents towards these brands was also
different.

Discussion
The effect of each factor of self congruency was evaluated on brand
attitude and the effect of assured and sociable factors was found to be
positive and significant, where as the effect of stylist was found to be
negative and insignificant. The factor stylish was found to have negative
cause and effect relationship because the two soft drink brands that
have been used in the study are considered similar on stylish factor.
The results are in line with the findings of Rodriguez, Bosnjak and
Sirgy (2012) where they found that self congruence accounted for 33%
variance on an average on the dependent variable on the basis of
Meta Analysis of 46 empirical published studies covering 212 effects
of self congruence effect on consumer attitudes, intentions and behavior.

Conclusion
The study evaluated the cause and effect relationship between self
congruency and brand attitude using direct evaluation of self congruency
instead of using difference between self image and brand image as
self congruency. The study evaluated effect of global congruency on
Brand Attitude and also evaluated effect of individual factors of direct
self congruity on brand attitude. The global congruity was found to
significant positive effect on the brand attitude. Two of the three factors
of self congruity were also found to have positive significant effect on
brand attitude.

REFERENCES
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60 A Procedural Guide to Write a Research Paper

Country of Origin Effect on


Consumer Willingness to Buy
Foreign Product

Dr. S.S. Bhakar, Dr. Saloni Mehra, Dr. Yahomandira Kharade,


Shikha Priyadarshani, Prerna Bisht & Pratiksha Pathak

ABSTRACT
Country of Origin has been understood differently during
different phases of development in manufacturing facilities
across countries. Initially, all the processes related to
manufacturing of products used to be completed in single
country and the products were known as made in. Thus
Country of Origin was synonym with made in. The other
factors that affect evaluation of the effect Country of Origin
on product evaluation and selection is availability of such
products freely in the local market and the customs duties
levied in the range that will not make such products out of
pocket for average income consumer. Indian consumers have
experienced this change increasingly in last two decades. After
years of govt. controlled market forces, Indian consumers have
access to almost any product manufactured anywhere in the
world. Thus it has become imperative to look at country of
Origin effect on willingness to buy foreign products. The
current study has evaluated the effect of country of origin
image on willingness to buy. The two variables of the study
evaluating country of origin and willingness to buy were put
through confirmatory factor analysis (CFA) and finally the
A Procedural Guide to Write a Research Paper 61

path analysis was carried out using structural equation modeling


(SEM) approach on AMOS 18. The effect of COO was found
to be significant on willingness to buy.
Key Words: Country of Origin, Willingness to buy, Country
Image, Brand Image, Purchase Intention.

Introduction
Country of Origin (COO) has been defined as "the place, region, or
country to which the brand is perceived to belong by its target
customers," (Thakor and Kohli 1996). This definition has expanded
the understanding of country of origin to include the perceptions that
the brand creates in consumers' minds. This perception may be different
from the actual production or design facilities. The perceived location
from which a product comes from may create positive and negative
images, based on consumers' perceptions of that location (Thakor and
Kohli 1996). Roth and Romeo (1992) described Country of Origin as
consumers overall evaluation of goods manufactured in a particular
country, based on their prior perception of that countrys strengths
and weaknesses in design, manufacturing and marketing.
Huber and Mcann (1992) reported that when customers are not able
to evaluate quality of products by any other way COO influences
consumers product evaluation through the country image of the origin.
Similar view is shared by Elliot and Cameron (1984) where they argued
that Country-of-origin can be an indicator of quality when it is difficult
to assess quality by other objective means.
Country of Origin affects evaluation of products manufactured in
different countries in three different ways. Country of Origin may
provide signal for product quality and performance, thereby creating
halo effect which in turn effects the beliefs about attributes of products
(Erickson, Johansson and Chao, 1984). Secondly, Country of Origin
may be evaluated as an attribute of the product similar to other product
attributes (Hong and Wyer, 1989). Thirdly, Country of Origin may
create stereo typical image of the products based on the image of the
country of origin, which acts as stimuli in decision making about the
product (Huddleston, 1995; Akaria Nagashima, 1970).
Kumar and Barker (1987) found COO as an important factor in buying
decision and concluded that Country of origin is a relevant variable
in the marketing mix. Roth and Romeo (1992) posited that COO bears
a significant influence on consumer perception and decision making.
However, there are a number of studies that found that customer
perceptions tend to be product specific rather than country specific
(Neffenegger, White, and Harmet, 1980; Schooler, 1961).
62 A Procedural Guide to Write a Research Paper

Hirschman (1985), described consumer willingness to buy product


links to his/her personal memories of that country of origin and feelings
of pride associated with the purchasing of the product from certain
countries. Kealy and Turner (1993); Teal and Loonus (2002) describe
consumer willingness to buy lies at the heart of consumer buying
intentions. They feel that researchers have measured consumers buying
intentions for asking questions or bidding games. Chamber, Chamber
and Whitchead (1998) examined that most methods are focused on
consumer willingness to pay for particular change in product attributes
rather than to buy the services as products themselves. Mahmud
and Mamun (2011) reported that products from developed countries
were perceived to be of higher value than the products from developing
countries in case of higher value products such as automobiles and
refrigerators.
The consumers may buy products manufactured in their own country
not because they are superior in quality or have higher visibility; it
may be because they are proud of their country and would like to
buy made in own country even if these products are costlier to the
products manufactured outside own country, (Kumar and Barkar, 1987).
The image of country of origin was found to have negative cause and
effect relationship with purchase intention in case of fridge and the
negative relationship became stronger when evaluated with brand
image as another independent variable Bhakar et al. (2013), indicating
that good country of origin image may not be linked to high purchase
intention.

Methodology
The study was causal in nature and survey method was used to collect
data for the study. Three fridge brands with different country of origin
(Godrej-India, LG Korea and Electrolux USA) were selected to
evaluate the effect of country of origin effect on willingness to purchase.
The study was carried out at Gwalior city in Madhya Pradesh, India.
The since the complete list of customers at Gwalior was not possible
to get, judgmental (non probability) sampling technique was used to
identify sample elements. The sample included proportionate
representation from different demographics such as age, gender,
educational qualification, income etc. The sample size for the study
was 150 respondents. As the maximum no of items were 12 in willingness
to purchase variable the sample size adhered to the thumb rule of at
least ten items per item in the scale.
The data was collected on two separate self designed, structured
questionnaires for COO image and willingness to purchase. The
A Procedural Guide to Write a Research Paper 63

questionnaire for COO image contained 11 statements and the


questionnaire for willingness to purchase contained 12 statements.
The data was collected on a Likert type 5 point scale with 1 indicating
minimum agreement with the statement in the questionnaires and 5
indicated maximum agreement with the statement.
The data collected using the two questionnaires were tested for reliability
using Cronbachs Alpha coefficient of reliability. Both the questionnaires
were found to be highly reliable as the Cronbachs Alpha coefficient
for both was higher than 0.7. Exploratory factor analysis was applied
on both the questionnaires to identify underlying factors. The data
collected using the two variables were used to test the factor structures
using confirmatory factor analysis on AMOS 18. The goodness of fit
was tested for both the data sets using CFA and was found to be high.
The data from both the questionnaires was tested for construct reliability,
discriminant validity and construct validity. The model using COO
image along with the factors as independent variable and willingness
to buy along with its factors as dependent variable was path analyzed
using SEM on AMOS 18. The model was found had good fit indicating
appropriate assumption in developing the model structure. The effect
of brand names on willingness to buy was evaluated using one way
ANOVA.

Results
Reliability Country of Origin
Internal consistency reliability of willingness to buy measure was
established through computation of Cronbachs Alpha using PASW18
software. The results of Cronbachs Alpha computations are placed
below in table 1.
Table 1: Showing Reliability of Country of Origin
Reliability Statistics
Cronbach's Alpha N of Items
.803 10

The measure is considered reliable if the Cronbachs Alpha values are


greater than 0.7. As can be seen from the table 1 above the Cronbachs
Alpha for the willing to buy measure was found to be 0.803. Therefore,
the measure can be considered to have high internal consistency
reliability.

Exploratory Factor Analysis Country of Origin


The measure was put through EFA process using principle Component
Analysis as the method of extraction and varimax rotation with Kaiser
64 A Procedural Guide to Write a Research Paper

Normalization as the method for refining the extracted factors. The


data used for EFA was tested for its suitability using KMO and Bartletts
tests. The results of KMO and Bartletts tests are placed in Table 2
below:
Table 2: Showing KMO and Bartlett test
Results Country of Origin
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .805
Bartlett's Test of Sphericity Approx. Chi-Square 372.163
Df 45
Sig. .000

Kaiser-Meyer-Olkin Measure of Sampling Adequacy measures whether


the sample was large enough to consider data as normally distributed.
KMO values greater than 0.5 indicate that the sample was large enough
consider the data normally distributed. The KMO value for willingness
to buy measure was found to be 0.805 as indicated in the table above.
Therefore, the data used for factor analysis of willingness to buy measure
was suitable for factor analysis. Bartletts test of sphericity tests the
hypothesis that the item-to-item correlation matrix is an identity matrix.
The hypothesis was tested using Chi-square tests. The hypothesis is
rejected as the Chi-square value is significant at .05 level of significance
(p=.000). Therefore, the item-to-item correlation matrix is not an identity
matrix and thus, the data is suitable for factor analysis. Individual
items were also tested for KMO and all the values of KMO for individual
items were found to be above 0.657 as read from the diagonal of the
Anti-image correlation table as part of EFA results. The KMO values
of individual items also need to be greater than .5 for suitability of
data for EFA.
Table 3: Showing Factor Analysis of Country of Origin measure
Factor Eigen Variance Items Converged Factor
Name Value explained Loads
Coo1- 2.914 29,140 2.Country of origin is important for selecting brands .742
Quality I look for made in mark while buying expensive items .725
3.I look at country of Origin to ensure highest quality .701
buy
4. I use country of Origin information for deciding .648
quality for new purchases
6. Country of Origin determines technical .641
sophistication of the product
Coo2 2.087 20.847 10. To purchase a product that is acceptable to .822
Product my family and my friends, I look for the
Acceptance
products country of origin
I look for country of origin information to .678
A Procedural Guide to Write a Research Paper 65
products country of origin
11. I look for country of origin information to .678
choose the best product available in a product
class.
5. I refuse to buy a product without knowing .566
its country of origin
9. I consider country of origin to determine .513
the quality of a product
7. While buying a new product the country of .511
origin is the first piece of information that I
consider

Principle Component Analysis with varimax rotation and Kaiser


Normalization converged on two factors after three iterations.

Fig 1: Final Model of Country of Origin Measure

Testing of the Conceptual model: Image Congruence


The conceptual model above was tested through goodness of fit tests.
The global goodness of fit index Chi-square for the model is 25.242
significant at 0.153. Indicating that Chi-square is not significant and
therefore the conceptual model has good fit with the data. In addition
to the Chi-square goodness of fit index there are three sets of goodness
of fit indices and one set of badness of fit index. All the goodness of
fit indices are above 0.9 indicating further that the model very well
66 A Procedural Guide to Write a Research Paper

fits to the data. The badness of fit index Root Mean Square error
approximation RMSEA should be lower than 0.05. The table-4 below
indicates that the RMSEA value is 0.047, showing that the model has
good fit.
Table 4: Showing CFA results of Country of Origin Measure
df p-value /df. GFI RMSEA NFI CFI AGFI
Criterion - - 1< /df.<2 0.90 <0.05 0.90 0.90 0.90
Obtained values 25.242 19 .153 1.329 0.962 0.047 0.919 0.978 0.927
Chi- Square df. - Degrees of Freedom
GFI Goodness of Fit Index RMSEA- Root Mean Square Error Approx.
NFI Normated Fit Index CFI - Comparative Fit Index
AGFI Adjusted Goodness of Fit Index

Convergent Validity
There are three measures that need to be evaluated for confirming
convergent validity of the model. They are:
1. Factor loadings
2. Average Variance extracted (AVE)
3. Reliability
The factor loadings (regression weight estimates) of latent to observed
variables need to be above 0.50 (Hair et al, 2006; Byrne, 2010). From
the confirmatory factor analysis, it is evident that the factor loadings
of all observed variables very between 0.439 and 0.769 are above the
recommended value of 0.5 other than one variable for latent factor
Coo2, thus confirming its construct validity. The average variance
extracted (AVEs) for the three factors of motivation are between 0.424
and 0.50. They are slightly lesser than the recommended value (greater
than 0.5 for one of the two factors). The construct reliabilities for the
two factors are 0.767604 and 0.677978 both above the recommended
minimum value of 0.70 or very close to it. Thus, all the three criteria
indicate high convergent validity for the Country of Origin measure.
Regression weights define the variation in standard deviations by which
the element varies when the value of the factor goes up by one standard
deviation. It is evident from the various values of the indices and
regressions weights that the fitness, validity and uni-dimensionality
of the motivation measurement model stands established (Byrne 2010;
Hair et al. 2006).

Willingness to Buy
Reliability
Internal consistency reliability of willingness to buy measure was
A Procedural Guide to Write a Research Paper 67

established through computation of Cronbachs Alpha using PASW18


software. The results of Cronbachs Alpha computations are placed
below in table 5.
Table 5: Showing Reliability of Willingness to buy
Reliability Statistics
Cronbach's Alpha N of Items
.831 10

The measure is considered reliable if the Cronbachs Alpha values are


greater than 0.7. As can be seen from the table 1 above the Cronbachs
Alpha for the willing to buy measure was found to be 0.831. Therefore,
the measure can be considered to have high internal consistency
reliability.

Exploratory Factor Analysis Willingness to buy


The measure was put through EFA process using principle Component
Analysis as the method of extraction and varimax rotation with Kaiser
Normalization as the method for refining the extracted factors. The
data used for EFA was tested for its suitability using KMO and Bartletts
tests. The results of KMO and Bartletts tests are placed in Table 6
below:
Table 6: Showing KMO and Bartlett test Results Country of Origin
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .846
Bartlett's Test of Sphericity Approx. Chi-Square 442.403
Df 45
Sig. .000

Kaiser-Meyer-Olkin Measure of Sampling Adequacy measures whether


the sample was large enough to consider data as normally distributed.
KMO values greater than 0.5 indicate that the sample was large enough
consider the data normally distributed. The KMO value for willingness
to buy measure was found to be 0.846 as indicated in the table above.
Therefore, the data used for factor analysis of willingness to buy measure
was suitable for factor analysis. Bartletts test of sphericity tests the
hypothesis that the item-to-item correlation matrix is an identity matrix.
The hypothesis was tested using Chi-square tests. The hypothesis is
rejected as the Chi-square value is significant at .05 level of significance
(p=.000). Therefore, the item-to-item correlation matrix is not an identity
matrix and thus, the data is suitable for factor analysis. Individual
items were also tested for KMO and all the values of KMO for individual
items were found to be above 0.809 as read from the diagonal of the
Anti-image correlation table as part of EFA results. The KMO values
68 A Procedural Guide to Write a Research Paper

of individual items also need to be greater than .5 for suitability of


data for EFA.
Table 7: Showing Factor Analysis of Willingness to buy measure
Factor Name Eigen Variance Items Converged Factor
Value explained Loads
Willingness1- 2.986 29.859 2. Brand X is a good Brand .813
High Opinion 1.I like the brand X a lot .749
3.I have a good opinion of Brand X .740
5. I am very attracted by .734
7. I have a great deal affection for Brand X .521
6. I feel good about purchasing or owning Brand .482
X
Willingness2 2.187 21.866 8. I have close ties to Brand X .769
Willing to Buy 9. If I had to buy a Fridge I would probably buy .634
Brand X
10. If I needed a Fridge I would no doubt buy .595
Brand X
4. I have more positive than negative ideas about .544
Brand X
Principle Component Analysis with varimax rotation and Kaiser
Normalization converged on two factors after three iterations.

Fig 2: Final CFA Model of Willingness to Buy

Testing of the Conceptual Model: Willingness to Buy


The conceptual model above was tested through goodness of fit tests.
The global goodness of fit index Chi-square for the model is 32.870
significant at 0.166. Indicating that Chi-square is not significant and
therefore the conceptual model has good fit with the data. In addition
to the Chi-square goodness of fit index there are three sets of goodness
A Procedural Guide to Write a Research Paper 69

of fit indices and one set of badness of fit index. All the goodness of
fit indices are above 0.9 indicating further that the model very well
fits to the data. The badness of fit index Root Mean Square error
approximation RMSEA should be lower than 0.05. The table-8 below
indicates that the RMSEA value is 0.047, showing that the model has
good fit.
Table 8: Showing Results CFA (Fit Indices) of Willingness to Buy
df p-value /df. GFI RMSEA NFI CFI AGFI
Criterion - - 1< /df.<2 0.90 <0.05 0.90 0.90 0.90
Obtained values 32.870 26 .166 1.264 0.957 0.047 0.909 0.975 0.925
Chi- Square df. - Degrees of Freedom
GFI Goodness of Fit Index RMSEA- Root Mean Square Error
Approx.
NFI Normated Fit Index CFI - Comparative Fit Index
AGFI Adjusted Goodness of Fit Index

Convergent Validity
There are three measures that need to be evaluated for confirming
convergent validity of the model. They are:
1. Factor loadings
2. Average Variance extracted (AVE)
3. Reliability
The factor loadings (regression weight estimates) of latent to observed
variables need to be above 0.50 (Hair et al, 2006; Byrne, 2010). From
the confirmatory factor analysis, it is evident that the factor loadings
of all observed variables very between 0.481 and 0.793 are above the
recommended value of 0.5 other than one variable for latent factor
Willingness2, thus confirming its construct validity. The average variance
extracted (AVEs) for the three factors of motivation are 0.58488775
and 0.281091. They are slightly lesser than the recommended value
(greater than 0.5 for one of the two factors). The construct reliabilities
for the two factors are 0.812106293 and 0.608696 one above the
recommended minimum value of 0.70 and other one very close to it.
Thus, all the three criteria indicate high convergent validity for the
Willingness to buy measure.
Regression weights define the variation in standard deviations by which
the element varies when the value of the factor goes up by one standard
deviation. It is evident from the various values of the indices and
regressions weights that the fitness, validity and uni-dimensionality
of the motivation measurement model stands established (Byrne 2010;
Hair et al. 2006).
70 A Procedural Guide to Write a Research Paper

Country of Origin and Willingness to Buy


The cause and effect relationship between the Image of Country of
Origin and Willingness to buy was evaluated using structural modeling
approach. The analysis was carried out using SEM on AMOS 18.

Fig. 3: Showing Final SEM Model of COO effect on Willingness to Buy


Table 9: Table showing SEM (Goodness of Fit Indices) results on
COO and Willingness to buy
df. p-value /df. GFI RMSEA NFI CFI AGFI
Criterion - - 1< /df.<2 0.90 <0.05 0.90 0.90 0.90
Obtained values 0.220 1 .669 0.220 0.999 0.000 0.999 1.000 0.993
Chi- Square df. - Degrees of Freedom
GFI Goodness of Fit Index RMSEA- Root Mean Square Error Approx.
NFI Normated Fit Index CFI - Comparative Fit Index
AGFI Adjusted Goodness of Fit Index

The table above displays the goodness of fit results of COO and
Willingness to buy structural model. All the indexes are well within
values that indicate high fit of the model to data.
Table 10: Showing Standardized Regression Weights:
(Default model)
Estimate P
Willingness to Buy <--- Country of Origin .706 ***
COO1 <--- Country of Origin .889
COO2 <--- Country of Origin .586 ***
W1 <--- Willingness to Buy .647
W2 <--- Willingness to Buy .858 ***
A Procedural Guide to Write a Research Paper 71

The above table displays the relationship between the country of origin
image and willingness to buy. As can be seen the standardized regression
weight of the relationship is 0.706 significant at 1% level of significance.
Thus COO image has a strong positive effect on willingness to buy
for fridges.
The effect of brand Image of individual brands on willingness to buy
was evaluated using one way ANOVA between the three brands (Godrej-
India, LG Korea and Electrolux-USA) used in the study. The three
brands were found to equal in terms of willingness to buy based
brand name alone.
Table 11: showing Results of Levenes test of
equality of Error Variances
Levene's Test of Equality of Error Variances
Dependent Variable: Willingness
F df1 df2 Sig.
1.187 2 147 .308
Tests the null hypothesis that the error variance of the dependent variable is equal across
groups.
a. Design: Intercept + Brand

Table 12: Showing the results of ANOVA Applied to evaluate


effect of Brand on willingness to buy
Tests of Between-Subjects Effects
Dependent Variable: Willingness
Source Type III Sum of Squares df Mean Square F Sig.
Corrected Model 306.120a 2 153.060 1.926 .149
Intercept 360150.000 1 360150.000 4531.980 .000
Brand 306.120 2 153.060 1.926 .149
Error 11681.880 147 79.469
Total 372138.000 150
Corrected Total 11988.000 149
a. R Squared = .026 (Adjusted R Squared = .012)

Since the brands were found to be equally acceptable to the customers,


post-hoc test to evaluate differences between individual brands was
not required.

REFERENCES
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A Procedural Guide to Write a Research Paper 73

Brand Image and its Impact on Customer


Satisfaction and Customer Loyalty

Shailja Bhakar, Sneha Rajput, Suman Lata Bisht, Shilpi Nagariya,


Anil Singh Parihar & Mehak Huria

ABSTRACT
Research has highlighted the growing importance of brand
image on market offerings and organizations. This research
paper is based on a study carried out to understand the impact
of brand image on customer satisfaction and customer loyalty.
The sample size for the study was 150 respondents. Using
non probability quota sampling technique the sample was divided
into equal quotas of males and females as well as two brands
of mobile phones Samsung and Apple. Analysis of data using
SPSS-16 software found that brand image had significant
impact on both customer satisfaction and customer loyalty.
Also significant difference was found between the two brands
whereas no significant difference was found between both male
and female responses.
Conceptual Framework
Brand Image
Reynolds (1965) noted that "an image is the mental construct developed
by the consumer on the basis of a few selected impressions among the
flood of the total impressions; it comes into being through a creative
process in which these selected impressions are elaborated, embellished,
and ordered". Kotler (2001) defined image as "the set of beliefs, ideas,
and impression that a person holds regarding an object". On the other
74 A Procedural Guide to Write a Research Paper

hand, A similar definition to Keller's was proposed by Aaker (1991),


whereby brand image is referred to as "a set of associations, usually
organized in some meaningful way". Biel (1992) however defined brand
image as "a cluster of attributes and associations that consumers connect
to the brand name".
Brand image represents an important aspect of marketing activities;
branding and market offering with varied definition and approaches
to its conceptualization (Burleigh and Sidney, 1955; Dobni and Zinkhan,
1990; Martinez and Pina, 2003). A widely accepted view is that brand
image represents customers perceptions of a brand as reflected by
the brand associations held in consumer memory (Herzog, 1963; Keller,
1993a, b). Brand image is, the mental picture or perception of a brand
or a branded product or service and includes symbolic meanings that
consumers associate with the specific attributes of a product or service
(Dobni and Zinkhan, 1990; Padgett and Allen, 1997; Aperia and Back,
2004).
Keller (1993) considered brand image as "a set of perceptions about a
brand as reflected by brand associations in consumer's memory".
Keller suggested that "brand associations" comprise of brand attributes,
brand benefits, and overall brand attitudes. Attributes are "descriptive
features that characterized a product or service what a consumer
thought the product or service is or has and what is involved with its
purchase or consumption". Attributes can be classified into product-
related attributes and non product-related attributes (i.e. price, packaging
or product appearance information, user and usage imagery). Product-
related attributes refer to the ingredients necessary for performing
the product or service function sought by consumers while non product-
related attributes refer to the external aspects of the product or services
that relate to its purchase or consumption. As for benefits, these are
considered "the personal value consumers attach to the product or
service attributes that is, what consumers think the product or service
can do for them".
Creating and maintaining image of the brand is an important part of
a firm's marketing program (Roth, 1995) and branding strategy (Keller,
1993; Aaker, 1991). Therefore, it is very important to understand the
development of image formation and its consequences such as
satisfaction and loyalty

Customer Satisfaction
Oliver (1997) defined satisfaction as "the consumer's fulfillment response.
It is a judgment that a product or service feature, or the product or
service itself, provided (or is providing) a pleasurable level of
A Procedural Guide to Write a Research Paper 75

consumption-related fulfillment, including levels of under- or over-


fulfillment".
Customer's expectations are pre-trial beliefs about a product (Olson &
Dover, 1979) that function as comparison standards or reference points
against which product performance is judged (Oliver, 1980; Bearden
& Teel, 1983). The expectancy disconfirmation paradigm suggests that
consumers are satisfied when the product perform better than expected
(positive disconfirmation), dissatisfied when consumers' expectations
exceeded actual product performance (negative disconfirmation), and
neutral satisfaction when the product performance matches expectations
(zero disconfirmation/confirmation) (Oliver, 1980; Churchill &
Surprenant, 1982; Oliver & Sarbo, 1988; Bearden & Teel, 1983).
Customer Satisfaction can be likened to customer feeling of pleasure
or disappointment as a result of experience or the act of comparing a
products perceived performance (or outcome) in relation to a customers
expectations. It is, therefore, the degree to which customers are satisfied
or dissatisfied with a business, product, or specific aspect of a product
or service provided by a business. Customer satisfaction can be explained
as the outcome of a comparison between perceived product performance
and pre-purchase expectations

Customer Loyalty
Jacoby and Chestnut (1978) provided a conceptual definition of brand
loyalty as: (i) biased (i.e. non-random), (ii) behavioral response (i.e.
purchase), (iii) expressed over time, (iv) by some decision-making
unit, (v) with respect to one or more brands out of a set of such
brands, and is a function of psychological (decision-making evaluate)
processes.
Oliver (1997) defined customer's loyalty as "a deep held commitment
to rebuy or repatronize a preferred product/service consistently in the
future, thereby causing repetitive same-brand or same brand-set
purchasing, despite situational influences and marketing efforts that
have the potential to cause switching behavior" (p. 34). Brand loyalty
can be operationalized either based on behavioral, attitudinal or
composite approach (Jacoby & Chestnut, 1978). Behavioral loyalty has
been considered as repeat purchases frequency (e.g. Brown, 1952) or
proportion of purchase (e.g. Cunningham, 1956), while attitudinal brand
loyalty referred to "stated preferences, commitment or purchase
intentions of the customers" (Mellens et al., 1996: p. 513).
Ehrenberg (1988) and Jacoby (1971) represents customer repeat purchase
a view that if interpreted may suggest that customer loyalty only
76 A Procedural Guide to Write a Research Paper

exist whenever customers embark on a do again (second buying journey)


on a market offering.

Literature Review
Ike-Elechi Ogba, Zhenzhen Tan, (2009) Employed a quantitative
approach, using 26-item, 7-point Likert scaled questionnaire administered
to 250 participants with 40 percent usable response rate. Data was
analysed using exploratory factor analysis, Cronbach a internal
consistency, ANOVA and correlation analysis for scale suitability,
usability, reliability and test of association. The outcome of this study
concludes that brand image can positively influence customers' loyalty
to a market offering and possibly boost customer commitment. The
study identifies the degree of the relevant of brand image and its
impact on organisations and their market offerings. The study suggests
that good brand image should positively impact on customers' loyalty,
which at long run should also influence customer perceived quality,
enables satisfaction and should also influence to a greater degree the
extent to which customers are willing to express commitment to such
offering for sustainable profit
Stephen L. Sondoh Jr. et. al. (2007) statistical results showed that two
brand image benefits, i.e. appearance enhances and functional have
significant impacts on loyalty intention. The others, i.e. symbolic,
experiential and social benefits have negative effects on loyalty intention.
Interestingly, the study's results contradict previous studies carried
out in different settings. In addition, their study discovered that symbolic
benefit has a negative effect on satisfaction and loyalty whereas other
four image benefits (i.e. experiential, social, functional image benefits
and appearance enhances benefits) have positive significant effects on
satisfaction. Findings in this study also revealed that satisfaction plays
a role in enhancing loyalty.
Reynolds and Beatty (1999) study of salesperson relationship benefits
found only social and functional benefits of brand image to be positively
related to satisfaction as well as social benefits significantly impacted
loyalty to the salesperson rather than functional benefits. Similarly,
Carpenter and Fairhurst (2005) found that both utilitarian and hedonic
shopping benefits of brand image have a positive impact on customer's
satisfaction. Brand users will be more loyal to that particular brand
when they are satisfied. Supported by previous studies in retail/store
and hotel setting Da Silva & Syed Alwi (2006); Bloemer & Ruyter
(1998); Nguyen & LeBlanc (1998); Kandampully & Suhartanto (2000)
Ike-Elechi Ogba and Zhenzhen Tan (2009) brand image can positively
influence customers loyalty to a market offering and possibly boost
A Procedural Guide to Write a Research Paper 77

customer commitment. The study identifies the degree of the relevant


of brand image and its impact on organizations and their market
offerings. The study suggests that good brand image should positively
impact on customers loyalty, which at long run should also influence
customer perceived quality, enables satisfaction and should also influence
to a greater degree the extent to which customers are willing to express
commitment to such offering for sustainable profit.
Oliver (1999) suggested that ultimate customer loyalty is a function of
perceived product superiority, personal fortitude, social bonding, and
their synergistic effects. Further analysis of Olivers discussion tend to
suggest not that loyalty is commitment, but that loyalty is an aspect
of commitment called attitudinal or emotional component of commitment
(Meyer and Allen, 1991, 1997; Meyer et al., 1993; Ogba, 2008). Uncles
et al. (2003) viewed customer loyalty from a 3 dimensional perspectives,
an approach that seems to originate from Meyer and Allen (1991)
study on employee commitment; where loyalty is referred to as favorable
attitudes or beliefs for one brand which could seem to be an emotional
attachment to that brand. Second, loyalty can be seen as a behavioral
factor, for example, the purchase behavior to one special brand and
loyalty as an accident approach that presumes the correlation between
attitudes and behavior.
Fransisca Andreani, Tan Lucy Taniaji and Ruth Natalia Made Puspitasari
(2012) found positive impact of brand association on customer loyalty,
brand association on customer satisfaction and customer satisfaction
on customer loyalty whereas no positive influence of favourability of
brand association with customer loyalty, uniqueness of brand association
with customer loyalty, favourability of brand association with customer
satisfaction and uniqueness of brand association with customer
satisfaction was found. The impact of McDonalds brand image to its
customer loyalty with customer satisfaction as a mediator is only 58.4%.
The rest of 41.6% is influenced by other factors which are not studied
in this research.
Aaker (1991) suggested that a strong brand with high equity will
have a large number of committed customers, leading to high and
continues interaction and communication between customers and brands.
Selnes (1993) also confirmed the influence of corporate brand image
on brand loyalty. However, Davies and Chun (2002) found that corporate
brand image had an indirect influence on brand loyalty via customer
satisfaction when personality traits are used to portray corporate brand
image in an off-line setting. Customer commitment can be considered
as commitment to an organization or its foci including its brand, brand
associations, such as brand image and brand reputation, and it should
78 A Procedural Guide to Write a Research Paper

be conceptualized that customers can express emotional feelings and


desire to maintain relationship with a brand rather than simply from
repeat purchase (Ogba & Tan, 2009).
Yu-TeTu, Shean-Yuh Lin, Tan-Kui Hsu (2013) explored the impact of
corporate brand image on customer commitment as well as impact on
customer loyalty in automobile sector. The results of their study indicate
that the corporate brand image has a direct path and is a factor that
significantly affects the customer commitment. The results are consistent
with the findings of Johnson, Andreessen, Lervik & Cha, (2001); and
Davies et al. (2003). Also a positive and significant relationship was
found between customer commitment and customer loyalty similar to
the findings of Eakuru and Mat (2008). The results also indicated that
the corporate brand image is a direct path and is a factor that significantly
affects the customer loyalty. These results are consistent with the findings
of Johnson, Andreessen, Lervik, & Cha (2001); Martineau (1958); and
Selnes (1993).

Objectives
To develop and standardize a questionnaire on brand image,
customer satisfaction and customer loyalty
To identify the relationship between the Brand Image as
Independent variable and customer satisfaction and customer
loyalty as dependent variable.
To open new vistas for further research

Research Methodology
The study was empirical in nature with survey method being used to
conduct the study. The population included respondents from Gwalior
region only where individual respondents were taken as sample element.
Data was collected from 150 respondents using non probability purposive
sampling technique. Self designed questionnaire with 7 point Likert
type scale where one will indicate minimum agreement in seven will
indicate maximum agreement was used to collect the data. Data was
analyzed using SPSS 16 where Cronbachs Alpha reliability test was
used to check the reliability as well internal consistency of the data.
Factor analysis was applied to find out the underlying the factors of
the questionnaire. Multiple analysis of covariance was applied to check
the relationship and differences between the concepts under
investigation.
A Procedural Guide to Write a Research Paper 79

Results and Discussion


Table 1: Showing Results of Reliability Analysis Brand Image
Variable Cronbachs Alpha Number of Items
Brand Image .843 14
Customer Satisfaction .743 12
Customer Loyalty .775 7

Reliability test is carried out on questionnaires to evaluate whether


the questionnaire is reliable for conducting the study or not. If the
value of reliability test is found to be more than 0.7 the questionnaire
is considered reliable. Here from the table it can be seen that the
value of Cronbachs Alpha reliability test is 0.843, 0.743 and 0.775
which is more than 0.7 therefore the brand image, customer satisfaction
and customer loyalty questionnaires were considered reliable for
conducting the study.

Factor Analysis
Table 2: Showing Results of Kaiser-Meyer-Olkin (KMO) measure
of sampling adequacy Brand Image
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .878
Bartlett's Test of Approx. Chi-Square 519.070
Sphericity Df 91
Sig. .000
Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy: The
Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy is an index
used to examine the appropriateness of factor analysis. High values
(between 0.5 and 1.0) indicate factor analysis is appropriate. Values
below 0.5 imply that factor analysis may not be appropriate. The Kaiser
- Meyer - Olkin Measure of Sampling Adequacy value for the brand
image measure was 0.878 indicating that the sample was adequate to
consider the data suitable for factor analysis.
Bartlett's test of Sphericity: Bartlett's test of sphericity is a test statistic
used to examine the hypothesis that the variables are uncorrelated in
the population. In other words, the population correlation matrix is
an identity matrix; each variable correlates perfectly with itself (r = 1)
but has no correlation with the other variables (r = 0). The Bartletts
Test of Sphericity was tested through Chi-Square value having a value
of 519.070, which is significant at 0% level of significance. Therefore,
the above hypothesis is rejected, indicating that the data was suitable
for factor analysis.
80 A Procedural Guide to Write a Research Paper

Factor Analysis Table


Principle component factor analysis with varimax rotation and Kaiser
Normalization was applied. The factor analysis converged on 3 factors
after seven iterations. The details about the factors, the factor name,
variable number, variable convergence and their Eigen value is given
in the table given below.
Table 3: Showing Results of Exploratory
Factor Analysis - Brand Image
Factor Name Eigen % of Items Item
Value Variance Loading
Performance 3.158 22.559 10 Brand X performs as it promises .741
7 Brand X helps me to better fit into my social group .705
3 Brand X increases my frequency of use .620
2 Brand X makes me feel delighted .585
4 Brand X gives me pleasure .533
1 Brand X makes me feel good .457
Appearance 2.736 19.554 8 Brand X helps me feel accepted .749
11 Brand X makes me beautiful .703
12 Brand X can be dependable for use .655
6 Brand X enhances the perceptions that I have a .548
desirable lifestyle
9 Brand X improves the way I am perceived by others .526
14 Brand X makes a good impression of me on other
people .465
Meets 1.095 7.818 5 Usage of brand X prevents me from looking cheap .760
expectations 13 Brand X provides a solution to my expectations -.518

Customer Satisfaction
Table 4: Showing Results of Kaiser-Meyer-Olkin (KMO) measure
of sampling adequacy Customer Satisfaction
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .740
Bartlett's Test of Sphericity Approx. Chi-Square 377.283
Df 66
Sig. .000

Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy: The Kaiser-


Meyer-Olkin (KMO) measure of sampling adequacy is an index used
to examine the appropriateness of factor analysis. High values (between
0.5 and 1.0) indicate factor analysis is appropriate. Values below 0.5
imply that factor analysis may not be appropriate. The Kaiser - Meyer
- Olkin Measure of Sampling Adequacy value for the customer
satisfaction measure was 0.740 indicating that the sample was adequate
to consider the data suitable for factor analysis.
A Procedural Guide to Write a Research Paper 81

Bartlett's test of Sphericity: Bartlett's test of sphericity is a test statistic


used to examine the hypothesis that the variables are uncorrelated in
the population. In other words, the population correlation matrix is
an identity matrix; each variable correlates perfectly with itself (r = 1)
but has no correlation with the other variables (r = 0). The Bartletts
Test of Sphericity was tested through Chi-Square value having a value
of 377.283, which is significant at 0% level of significance. Therefore,
the above hypothesis is rejected, indicating that the data was suitable
for factor analysis.

Factor Analysis Table


Principle component factor analysis with varimax rotation and Kaiser
Normalization was applied. The factor analysis converged on 3 factors
after five iterations. The details about the factors, the factor name,
variable number, variable convergence and their Eigen value is given
in the table given below.
Table 5: Showing Results of Exploratory Factor
Analysis - Brand Image
Factor Name Eigen % of Items Item
Value Varianc Loading
e
Satisfied with 2.353 19.611 4 This brand does a good job of satisfying my needs .801
Services Provided 1 I think that I did the right thing when I used this .744
brand
10 I believe that using this brand is usually a very .648
satisfying experience
5 I am very satisfied with the service provided by .558
this brand
Satisfied with 2.313 19.276 9 The service-products provided by this brand is .764
Brand Image very satisfactory
6 I am very satisfied with this brand .705
11 I made the right decision when I decided to use .653
this brand
12 I am addicted to this brand in some way .584
2 I am very satisfied with my decision to use this .487
brand
Satisfies Need 1.624 13.530 8 This brand does a good job of satisfying my needs .720
3 My choice to use this brand has been a wise one .576
7 I am very happy with this brand .544
82 A Procedural Guide to Write a Research Paper

Customer Loyalty
Table 6: Showing Results of Kaiser-Meyer-Olkin (KMO) measure
of sampling adequacy Customer Loyalty
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .827
Bartlett's Test of Sphericity Approx. Chi-Square 219.029
Df 21
Sig. .000

Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy: The


Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy is an index
used to examine the appropriateness of factor analysis. High values
(between 0.5 and 1.0) indicate factor analysis is appropriate. Values
below 0.5 imply that factor analysis may not be appropriate. The Kaiser
- Meyer - Olkin Measure of Sampling Adequacy value for the customer
loyalty measure was 0.827 indicating that the sample was adequate to
consider the data suitable for factor analysis.
Bartlett's test of Sphericity: Bartlett's test of sphericity is a test statistic
used to examine the hypothesis that the variables are uncorrelated in
the population. In other words, the population correlation matrix is
an identity matrix; each variable correlates perfectly with itself (r = 1)
but has no correlation with the other variables (r = 0). The Bartletts
Test of Sphericity was tested through Chi-Square value having a value
of 219.029, which is significant at 0% level of significance. Therefore,
the above hypothesis is rejected, indicating that the data was suitable
for factor analysis.
Factor Analysis
Principle component factor analysis with varimax rotation and Kaiser
Normalization was applied. The factor analysis converged on 1 factor;
therefore the variable name can be taken as it is for further evaluations
T Test
T test was applied to identify gender differences in case of brand
image, customer satisfaction and customer loyalty
Table 7: Showing Group statistics based on the gender
Group Statistics
Gender N Mean Std. Deviation Std. Error Mean
Customer Satisfaction 1 83 74.5060 14.79648 1.62413
2 67 72.2090 14.54099 1.77647
Brand Image 1 83 67.7590 11.93947 1.31053
2 67 69.6567 11.21762 1.37045
Customer Loyalty 1 83 32.2651 6.84869 .75174
2 67 32.0448 7.20360 .88006
A Procedural Guide to Write a Research Paper 83

Table 8: Showing Results of t-test applied between male and


female respondents
Independent Samples Test
Levene's Test t-test for Equality of Means
for Equality
of Variances
F Sig. T df P- Mean Std. 95% Confidence
value Diff. Error Interval of the
Diff. Difference
Lower Upper
Customer Equal variances .405 .526 .953 148 .342 2.29707 2.41150 -2.46835 7.06248
Satisfacti assumed
on Equal variances .954 142.379 .342 2.29707 2.40699 -2.46099 7.05513
not assumed
Brand Equal variances 1.189 .277 -.994 148 .322 -1.89768 1.90894 -5.66997 1.87461
Image assumed
Equal variances -1.001 144.585 .319 -1.89768 1.89621 -5.64555 1.85019
not assumed
Customer Equal variances .400 .528 .191 148 .849 .22028 1.15116 -2.05455 2.49512
Loyalty assumed
Equal variances .190 138.222 .849 .22028 1.15742 -2.06825 2.50882
not assumed

Levenes test for equality of variances was evaluated through F Test


value .405 which was significant at .516 indicating that the variances
of the two groups were equal therefore T Test assuming equal variances
will be applied. The T value for equal variances assumed is .953
significant at .342 indicating no significant difference between customer
satisfaction of both male and female.
Levenes test for equality of variances was evaluated through F Test
value 1.189 which is significant at .277 indicating that the variances of
the two groups were equal therefore T Test assuming equal variances
will be applied. The T value for equal variances assumed was -.994
significant at .322 indicating a no significant difference between the
responses towards brand image by both male and female respondents.
Levenes test for equality of variances was evaluated through F Test
value .400 which is significant at .528 indicating that the variances of
the two groups were equal therefore T Test assuming equal variances
will be applied. The T value for equal variances assumed is .191 which
is significant at .849 indicating no significant difference between customer
loyalty of both male and female.

Brand
T test was applied to identify differences between both brands i.e.
Samsung and Apple in case of brand image, customer satisfaction and
customer loyalty
84 A Procedural Guide to Write a Research Paper

Table 9: Showing Group statistics based on the Brand


Group Statistics
Brand N Mean Std. Deviation Std. Error Mean
Customer Satisfaction 1 75 70.2133 16.29732 1.88185
2 75 76.7467 12.10773 1.39808
Brand Image 1 75 76.2533 3.24284 .37445
2 75 60.9600 11.95650 1.38062
Customer Loyalty 1 75 34.0000 6.67792 .77110
2 75 30.3333 6.84645 .79056

Table 10: Showing Results of t-test applied between the two Brands
Independent Samples Test
Levene's Test t-test for Equality of Means
for Equality
of Variances
F Sig. T df Sig. Mean Std. 95% Confidence
(2- Diff. Error Interval of the
taile Diff. Difference
d) Lower Upper
Customer Equal variances 16.333 .00 -2.787 148 .006 -6.53333 2.34435 -11.16606 -1.90060
Satisfactio assumed 0
n Equal variances -2.787 136.613 .006 -6.53333 2.34435 -11.16925 -1.89742
not assumed
Brand Equal variances 139.791 .00 10.691 148 .000 15.29333 1.43050 12.46650 18.1201
Image assumed 0 7
Equal variances 10.691 84.828 .000 15.29333 1.43050 12.44904 18.1376
not assumed 3
Customer Equal variances .968 .32 3.320 148 .001 3.66667 1.10435 1.48434 5.84899
Loyalty assumed 7
Equal variances 3.320 147.908 .001 3.66667 1.10435 1.48433 5.84900
not assumed

Levenes test for equality of variances was evaluated through F Test


value 16.233 which was significant at .000 indicating that the variances
of the two groups were not equal therefore T Test assuming no equal
variances will be applied. The T value for equal variances not assumed
was -2.787 significant at .006 indicating a significant difference between
customer satisfactions towards both brands
Levenes test for equality of variances was evaluated through F Test
value 139.791 which was significant at .000 indicating that the variances
of the two groups were not equal therefore T Test assuming no equal
variances will be applied. The T value for equal variances not assumed
is 10.691 significant at .000 indicating a significant difference between
brand images of both the brands.
Levenes test for equality of variances was evaluated through F Test
value .968 which was significant at .327 indicating that the variances
of the two groups were not equal therefore T Test assuming no equal
A Procedural Guide to Write a Research Paper 85

variances will be applied. The T value for equal variances not assumed
was 3.320 significant at .001 indicating a significant difference between
the customer loyalties of both the brands.

MANCOVA
Multiple analysis of covariance was applied taking Brand Image as
independent variable and Customer Satisfaction and Customer Loyalty
as dependent variables
Table 11: Showing Results of MANOVA Applied on Customer
satisfaction and Customer Loyalty as Dependent Variables
Tests of Between-Subjects Effects
Source Dependent Variable Type III Sum of df Mean F Sig.
Squares Square
Corrected Model Customer Satisfaction 2210.534a 1 2210.534 10.944 .001
Customer Loyalty 775.499b 1 775.499 17.665 .000
Intercept Customer Satisfaction 10705.886 1 10705.886 53.005 .000
Customer Loyalty 1453.921 1 1453.921 33.118 .000
Brand Image Customer Satisfaction 2210.534 1 2210.534 10.944 .001
Customer Loyalty 775.499 1 775.499 17.665 .000
Error Customer Satisfaction 29892.906 148 201.979
Customer Loyalty 6497.334 148 43.901
Total Customer Satisfaction 842000.000 150
Customer Loyalty 162477.000 150
Corrected Total Customer Satisfaction 32103.440 149
Customer Loyalty 7272.833 149
a. R Squared = .069 (Adjusted R Squared = .063)
b. R Squared = .107 (Adjusted R Squared = .101)

The corrected model in above table indicates that brand image as


independent variable has significant impact on customer satisfaction
as well as customer loyalty as indicated by F test value 10.944 and
17.665 significant at .001 and .000 level of significance. The intercept
value indicates that the intersectional effect of independent variable
on dependent variable is also significant. As indicated by F test value
53.005 and 33.118 significant at .000 level of significance. Brand image
also has a significant impact on customer satisfaction and customer
loyalty taken individually as indicated by F test value 10.944 and
17.665 significant at .000 level of significance. The effect of brand
image on customer satisfaction was 6.3% and on customer loyalty
10.1% as indicated by adjusted r square values from the table i.e.
0.063 and 0.101.

Conclusion
Finally from the results it can be concluded that brand image is a
86 A Procedural Guide to Write a Research Paper

significant contributor to customer satisfaction and customer loyalty


therefore the organizations having strong brand image have more
satisfied and loyal customers. T Test indicated that brand image customer
satisfaction and customer loyalty of both apple and Samsung are
significantly different and a higher mean indicated that apple has
higher brand image, satisfied customers as well as loyal customers.
No difference was found between the responses of male and females
indicating brand image evaluations, satisfaction and loyalties of both
genders are similar.
The study was conducted in Gwalior region only with a sample size
of 150 respondents therefore it is not sufficient for generalization across
the city or country, to generalize the results sample needs to be increased
in further studies

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and Amran Harun (2007). The Effect of Brand Image on Overall Satisfaction
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(ISSN 2220-3796)
A Procedural Guide to Write a Research Paper 89

Relationship between Inflation, Interest


Rates and Stock Prices: An Empirical
Study of Asia Pacific Countries

Dr. Navita Nathani, Jaspreet Kaur, Dr. P.A. Ratna, Sandeep


Shrivastava, Pooja Jain, Manoj Agrawal & Nitin Paharia

ABSTRACT
Stock prices are said to be volatile. The volatility of these
depend on the various factors which can be identified as various
reforms, macro economic variables such as interest rates and
inflation rates, exchange rates etc. based on traditional framework
of review of literature. The objective of the present study is to
analyze and identify the relationship between the stock prices
and inflation rates and interest rates respectively in Asia Pacific
regional block taking the sample of eleven nations out of twenty
five mentioned, for the time frame of 2001 to 2010. The results
came out to be significant indicating the strong relationship
between the variables in all the nations.
Keywords: Inflation rates, interest rates and stock prices.

Introduction
Asia-Pacific or Asia Pacific (abbreviated as Asia-Pac, is the part of the
world in or near the Western Pacific Ocean. The region varies in size
depending on context, but it typically includes at least much of East
Asia, Southeast Asia, and Oceania. There are twenty five nations included
in this regional block namely American Samoa, Australia, Brunei,
Cambodia, China, Hong Kong, India, Indonesia, Japan, North Korea,
90 A Procedural Guide to Write a Research Paper

South Korea, Laos, Macau, Malaysia, Mongolia, Myanmar, Nepal, New


Zealand, Papua New Guinea, Philippines, Singapore, Taiwan, Thailand,
Timor-Leste and Vietnam. Interest rate is the one of the key
macroeconomic variables of any economy. It is the price of borrowing
money or it can also be defined as the cost of money. It has a very
significant role in an economy. Any change in interest rate can cause
problem for the investors.
There are several types of interest rates available in an economy,
including short term and long term interest rates. This variable is
beyond the control of any corporation, and businessmen always wish
a steady change in this variable.
Because a rapid change in this variable can affect the profitability and
returns of the business. That is the reason there can be seen the huge
fluctuation in stock market if any change is observed in this variable.
Inflation is a rise in the general level of prices of goods and services
in an economy over a period of time. When the general price level
rises, each unit of currency buys fewer goods and services. Consequently,
inflation also reflects erosion in the purchasing power of money a
loss of real value in the internal medium of exchange and unit of
account in the economy. A chief measure of price inflation is the inflation
rate, the annualized percentage change in a general price index (normally
the Consumer Price Index) over time. Inflation's effects on an economy
are various and can be simultaneously positive and negative. Negative
effects of inflation include a decrease in the real value of money and
other monetary items over time, uncertainty over future inflation may
discourage investment and savings, and high inflation may lead to
shortages of goods if consumers begin hoarding out of concern that
prices will increase in the future. Positive effects include ensuring
central banks can adjust nominal interest rates (intended to mitigate
recessions), and encouraging investment in non-monetary capital
projects.
It is the cost of purchasing a security on an exchange. Stock prices can
be affected by a number of things including volatility in the market,
current economic conditions, and popularity of the company.

Review of Literature
Ndri. Konan Leon (2008) estimated the impact of interest rate on
stock returns in Korea. For this purpose he took the weekly data on
Korean Stock Price Index 200 (KOSPI) for the period of six years
(1992-1998) as dependent variable and weekly Negotiable Certificates
of Deposits (Korea NCD 91-Day yield) for the same time as independent
variable and run the Generalized Autoregressive Conditional
A Procedural Guide to Write a Research Paper 91

Heteroskedasticity (GARCH) and reported that the Conditional market


return have a negative and significant relation with the interest rate.
The same results were estimated Alam and Uddin (2009) they examined
relationship by collecting the monthly Stock Exchange Index and interest
rate from January 1998 to March 2003 of fifteen countries and run the
panel regression. They concluded that there is negative between interest
rate and stock returns. Fama (1981) reported that stock market return
negatively correlated with the expected inflation and interest rates.
John Beirne et al (2009) examined the market, Interest rate and Exchange
rate risk effect on the financial Stock returns. To examine this fact
they selected three sectors (Banking, Financial Services and Insurance)
of 16 different countries including some European countries. They
used four-variate GARCH-M Model. Their variables were short-term
debt (90 Day treasury Bills Rate) and 10- years Government bond
yield for all the countries. Overall results showed that interest rate
and exchange rate effects common in banking sector and financial
services but in insurance sector interest rate and exchange rate have
limited effect.
Charles et al (2008) estimated the effect of exchange rate on the stock
market in Ghana. By taking Treasury bill rates, money supply, foreign
exchange rate, inflation and trade deficit as independent variables,
using Exponential Generalized Autoregressive Conditional
Heteroskedascity (EGARCH) reported that there is a positive relationship
between stock market and consumer price index. They also found
that whenever the inflation rate is high the volatility of stock returns
also high. Overall their result showed that the relationship between
macro variables and stock returns are significant.
Manish Kumar (2008) examined the relationship between Stock prices
and Exchange Rate. He collected the daily closing prices of S&P CNX
Nifty and INR/ USD exchange rate for the period of 1999-2009. He
performed unit root and Co-integration test for long run relationship
and linear and non-linear granger causality test for dynamic relation
between these variables and argued that there is no long-run relationship
between stock index and interest rates but there is bidirectional linear
and nonlinear granger causality between stock returns and exchange
rates.
Barry V. Cozier and Abdual H Rahman (1988) investigated the stock
returns, Inflation and real activity in Canada. Firstly by using rational
expectations forecasting procedure, they decompose Canadian inflation
series into expected and unexpected components. They argued that
there is negative relationship between stock returns and inflation.
92 A Procedural Guide to Write a Research Paper

Fabio Canova, CEPR and Gianni De Nicolo (1997) analyze the Stock
return, term structure, inflation and Real activity for US, Japan, Germany
and UK and concluded that nominal stock returns are negatively
correlated to inflation only in the US and insignificant for other countries.
Nikiforos T laopodis (2010) investigate the monetary policy and stock
market dynamics across monetary regimes. For this study, he collected
the Feds federal funds and S&P 500 index stock prices for the time
span of 1970 to 2005, divided it into three monetary regimes of Burns,
Volcker and Greenspan and run vector autoregressive (VAR) model
and resulted that throughout each monetary regime effect of monetary
policy on stock returns is significant.
Olivier J. Blanchard (1981) examined Output, the Stock Market, and
Interest Rates concluded that initial inflation may lead to lower real
interest rates initially, and to a larger initial change in the stock market.
Francesca Carrieri and Basma Majerbi (2006) examined the pricing of
exchange risk in emerging stock markets. They cover eight countries
(Argentina, Brazil, Chile, Mexico, Greece, India, Korea, Thailand and
Zimbabwe) and collect the returns on monthly basis. Interest rate as
proxy for risk free rate and concluded that common exchange risk
factor is marginally significant for large size port folios.
Sebastian Edwards and Raul Susmel (2003) investigate interest volatility
in emerging markets.
They collect the 30-days domestic interest rates of five countries
(Argentina, Brazil, Chile, Hong Kong and Mexico) and GARCH Model
and concluded the hypothesis of independence cannot reject.
Kaul (1990) examined the relationship between expected inflation and
the stock market and resulted there is negatively correlated with real
activity. This paper contributes to the existing literature by examining
the effect of interest rates and foreign exchange rate on stock returns
in Pakistan perspective. These papers consist of two sections. Section
I explained the Data and methodology and section II the findings and
results of the paper.
Ershad Ali, Dayal K. Talukder (2009), have seen the prospects and
challenges of preferential trade liberalization and regional integration
in South Asia by analyzing regional and international trade structures
of South Asian countries through conventional trade measures such
as commodity composition and direction of trade, and bilateral trade
shares. Findings indicated that, with the existing low level of bilateral
and intra-original trade shares and low trade with South Asian countries,
the gains from free trade arrangements in this region are likely to be
minimal. The region accounts for a very insignificant share of world
A Procedural Guide to Write a Research Paper 93

trade but persistent high levels of tariff barriers. Thus, preferential


trade liberalization is more likely to bring about trade diversion than
trade creation leading to more gains for large countries and more
losses for small countries.

Objectives of the Study


To calculate the market returns of Asia Pacific countries based
on apex stock index and banks from the year 2001-2010.
To establish the relationship between the interest rates and inflation
rates and market returns in Asia Pacific nations respectively.
To open new vistas for further research.

Research Methodology
About Study
The study was causal and empirical in nature. The sampling frame of
the study was from the year 2001 -2010. The sampling element of the
study was apex bank and stock index of Asia Pacific Countries. Data
was collected from secondary sources i.e. through website of indices
and the data of interest rate from the apex bank of that country. For
the purpose of detailed analysis, in accordance with the present research,
expected stock returns were calculated. Initially it was considered
necessary to calculate excess stock return for each index of the Asia
Pacific countries. To see the cause and effect relationship between
inflation rate and interest rates and stock market return multiple
regression was applied.

Hypothesis
Ho = There is no impact of interest rates on stock returns during
2001-2010 in Asia Pacific Countries
Ho = There is no impact of inflation rates on stock returns during
2001-2010 in Asia Pacific Countries
Ho = There is no impact of inflation rates and interest rates on
stock returns during 2001-2010 in Asia Pacific Countries
94 A Procedural Guide to Write a Research Paper

Results and Discussions


Values Adj. R2 F-value Sig. T-value Sig. Durbin- VIF Beta
Watson

Countries
1. China .5209 11.60 0.000 0.125 0.000 1.9 1.00 0.134
0.280 0.000
2. Hongkong 0.4569 13.04 0.034 0.150 0.000 1.7 2.5 0.314
0.715 0.000
3.Indonesia 0.4942 17.7 0.000 6.303 0.000 1.9 1.033 0.114
4.552 0.000 0.209
4.Japan 0.6545 11.01 0.000 5.475 0.003 1.3 1.021 0.909
6.600 0.020 1.55
5.Malaysia 0.5423 12.20 0.000 2.629 0.045 2.1 1.687 0.300
3.556 0.011 0.217
6.New Zealand 0.4647 11.24 0.025 4.690 0.01 2.6 1.027 1.12
5.959 0.000 0.0345
7. Philippines 0.590 10.87 0.041 4.813 0.002 1.7 1.677 0.699
6.414 0.010 0.197
8.Australia 0.545 12.24 0.026 1.355 0.001 1.4 1.212 0.501
4.676 0.034 0.250
9.Singapore 0.746 14.196 0.000 -5.219 .001 1.9 1.14 0.937
4.21 .020 0.152
10.South Korea 0.424 8.573 0.0351 5.82 0.003 2.5 1.095 0.193
6.71 0.010 0.567
11.Taiwan 0.489 10.14 0.020 4.56 0.043 2.3 1.085 0.137
5.89 0.020 0.615

China
The results of multiple regressions in China show that the independent
variables interest rates and inflation rates provide 52.09% variance in
the dependent variable stock prices which can be seen from Adjusted
R2 value to be 0.5209. Also, the Durbin Watson value which explained
the positive autocorrelation between the variables as the value is 1.9.
The co linearity in the variables was found to be within the limits.
The F-value is 11.60 which was significant at 0.000 showing that the
model had high fit. Furthermore, the t-values of both interest rates
and inflation rates were 0.125 and 0.280 which were significant at
0.000 level indicating that the null hypothesis stood rejected implying
that there is a strong causal relationship between the dependent and
independent variables.

Hong Kong
The results of multiple regressions in Hong Kong showed that the
independent variables interest rates and inflation rates provide 45.69
% variance in the dependent variable stock prices which can be seen
from Adjusted R2 value to be 0.4569. Also, the Durbin Watson value
which explained the negative autocorrelation between the variables
A Procedural Guide to Write a Research Paper 95

as the value is 2.5. The co linearity in the variables was found to be


within the limits. The F-value is 13.04 which was significant at 0.034
showing that the model had high fit. Furthermore, the t-values of
both interest rates and inflation rates were 0.150 and 0.715 which
were significant at 0.000 level indicating that the null hypothesis stood
rejected implying that there is a strong causal relationship between
the dependent and independent variables.

Indonesia
The results of multiple regressions in Indonesia showed that the
independent variables interest rates and inflation rates provide 49.42%
variance in the dependent variable stock prices which can be seen
from Adjusted R2 value to be 0.4942. Also, the Durbin Watson value
which explained the positive autocorrelation between the variables as
the value is 1.9. The co linearity in the variables was found to be
within the limits. The F-value is 17.70 which was significant at 0.000
showing that the model had high fit. Furthermore, the t-values of
both interest rates and inflation rates were 6.303 and 5.558 which
were significant at 0.000 level indicating that the null hypothesis stood
rejected implying that there is a strong causal relationship between
the dependent and independent variables.

Japan
The results of multiple regressions in Japan showed that the independent
variables interest rates and inflation rates provide 65.45% variance in
the dependent variable stock prices which can be seen from Adjusted
R2 value to be 0.6545. Also, the Durbin Watson value which explained
the positive autocorrelation between the variables as the value is 1.32.
The co linearity in the variables was found to be within the limits.
The F-value is 11.01 which was significant at 0.000 showing that the
model had high fit. Furthermore, the t-values of both interest rates
and inflation rates were 5.475 and 6.600 which were significant at
0.000 level indicating that the null hypothesis stood rejected implying
that there is a strong causal relationship between the dependent and
independent variables.

Malaysia
The results of multiple regressions in Malaysia showed that the
independent variables interest rates and inflation rates provide 54.23%
variance in the dependent variable stock prices which can be seen
from Adjusted R2 value to be 0.5423. Also, the Durbin Watson value
which explained the positive autocorrelation between the variables as
the value is 2.1. The co linearity in the variables was found to be
96 A Procedural Guide to Write a Research Paper

within the limits. The F-value is 12.20 which was significant at 0.000
showing that the model had high fit. Furthermore, the t-values of
both interest rates and inflation rates were 2.629 and 3.556 which
were significant at 0.000 level indicating that the null hypothesis stood
rejected implying that there is a strong causal relationship between
the dependent and independent variables.

New Zealand
The results of multiple regressions in New Zealand showed that the
independent variables interest rates and inflation rates provide 46.47%
variance in the dependent variable stock prices which can be seen
from Adjusted R2 value to be 0.467. Also, the Durbin Watson value
which explained the negative autocorrelation between the variables
as the value is 2.2. The co linearity in the variables was found to be
within the limits. The F-value is 11.24 which was significant at 0.025
showing that the model had high fit. Furthermore, the t-values of
both interest rates and inflation rates were 4.690 and 5.959 which
were significant at 0.000 level indicating that the null hypothesis stood
rejected implying that there is a strong causal relationship between
the dependent and independent variables.

Philippines
The results of multiple regressions in Philippines showed that the
independent variables interest rates and inflation rates provide 59.0%
variance in the dependent variable stock prices which can be seen
from Adjusted R2 value to be 0.590. Also, the Durbin Watson value
which explained the positive autocorrelation between the variables as
the value is 1.79. The co linearity in the variables was found to be
within the limits. The F-value is 10.86 which was significant at 0.030
showing that the model had high fit. Furthermore, the t-values of
both interest rates and inflation rates were 4.813 and 6.414 which
were significant at 0.000 level indicating that the null hypothesis stood
rejected implying that there is a strong causal relationship between
the dependent and independent variables.

Australia
The results of multiple regressions in Australia showed that the
independent variables interest rates and inflation rates provide 54.5%
variance in the dependent variable stock prices which can be seen
from Adjusted R2 value to be 0.545. Also, the Durbin Watson value
which explained the positive autocorrelation between the variables as
the value is 1.438. The co linearity in the variables was found to be
within the limits. The F-value is 11.24 which was significant at 0.000
A Procedural Guide to Write a Research Paper 97

showing that the model had high fit. Furthermore, the t-values of
both interest rates and inflation rates were 1.355 and 0.676 which
were significant at 0.000 level indicating that the null hypothesis stood
rejected implying that there is a strong causal relationship between
the dependent and independent variables.

Singapore
The results of multiple regressions in Singapore showed that the
independent variables interest rates and inflation rates provide 74.6%
variance in the dependent variable stock prices which can be seen
from Adjusted R2 value to be 0.746. Also, the Durbin Watson value
which explained the positive autocorrelation between the variables as
the value is 1.9. The co linearity in the variables was found to be
within the limits. The F-value is 14.60 which was significant at 0.000
showing that the model had high fit. Furthermore, the t-values of
both interest rates and inflation rates were (-5.219) and 4.21 which
were significant at 0.000 level indicating that the null hypothesis stood
rejected implying that there is a strong causal relationship between
the dependent and independent variables.

South Korea
The results of multiple regressions in South Korea showed that the
independent variables interest rates and inflation rates provide 42.4%
variance in the dependent variable stock prices which can be seen
from Adjusted R2 value to be 0.424. Also, the Durbin Watson value
which explained the negative autocorrelation between the variables
as the value was 2.57. The co linearity in the variables was found to
be within the limits. The F-value is 8.573 which was significant at
0.145 showing that the model had less high fit. Furthermore, the t-
values of both interest rates and inflation rates were 5.82 and 6.71
which were significant at 0.000 level indicating that the null hypothesis
stood rejected implying that there is a strong causal relationship between
the dependent and independent variables.

Taiwan
The results of multiple regressions in Taiwan showed that the
independent variables interest rates and inflation rates provide 48.9%
variance in the dependent variable stock prices which can be seen
from Adjusted R2 value to be 0.489. Also, the Durbin Watson value
which explained the negative autocorrelation between the variables
as the value is 2.3. The co linearity in the variables was found to be
within the limits. The F-value is 10.14 which was significant at 0.020
showing that the model had high fit. Furthermore, the t-values of
98 A Procedural Guide to Write a Research Paper

both interest rates and inflation rates were 4.56 and 5.89 which were
significant at 0.000 level indicating that the null hypothesis stood rejected
implying that there is a strong causal relationship between the dependent
and independent variables.

Implications of the Study


This study is indented to be a useful contribution to the academicians,
researchers and students in their studies to understand the relationship
between interest rates and inflation rates together with stock prices.
Reference of the study can also be helpful for the academicians for
their research because it provides a link between theory and practice.
Also the study is beneficial for investors to analyze the impact of
recession. The study can also be useful for Government organizations
as it provides help to understand the pre and post recession relationship
between the variables.

Suggestions
The scope and accuracy of the study could be enhanced by increasing
the sample size which was eleven nations in this study. Furthermore,
more events or reforms could be taken to expand the present study.
The present study was limited to constrained time and variables like
inflation rates and interest rates. The study may be replicated by
considering other variables too.

Conclusion
The study was carried out to examine the relationship between stock
prices and macro economic variables inflation rates and interest rates
respectively. The results of Regression analysis indicated that there
was significant relationship between interest rates and inflation rates
with that of stock prices in all the nations included in the study. This
helps us to conclude that interest rates and inflation rates play important
role in the determination of stock prices of the nation.

REFERENCES
1. N.dri. Konan Lon, (2008), The Effects of Interest Rates Volatility on Stock
Returns and Volatility: Evidence from Korea, International Research Journal
of Finance and Economics, Issue 14, 285-290.
2. Alam, Md. M., Uddin, Md. G.S. (2009), Relationship between Interest Rate
and Stock Price:Empirical Evidence from Developed and Developing Countries.
International Journal of Business and Management, 4, 43-51.
3. Fama, Engine F., 1981, Stock returns, real activity, inflation, and money, American
Economic Review, 71, 545-565.
A Procedural Guide to Write a Research Paper 99

4. J Beirene, G M caporale and n Spagnolo, (2009), Market, Interest Rate and


Exchange Rate Risk Effects on Financial Stock Returns, Quantitative and
Qualitative Analysis in Social Sciences, 3(2), 44-68.
5. Charles Adjasi, S K. Harvey and D Agyapong, (2008), Effect of Exchange
Volatility on the Ghana Stock Exchange, African Journal of Accounting ,
Economics , Finance and Banking Research, 3(3).
6. M Kumar, (2008), A Bivariate Linear and Nonlinear Causality Between Stock
Prices and Exchange Rates, Economics Bulletin, 29(4).
7. B V Cozier and A H Rahman, (1988), Stock Return, Inflation and Real Activity
in Canada, The Canadian Journal of Economics/ Revue Canadian dEconomique,
21(4).
8. F Canova, CEPR and G De Nicolo, (1997), Stock returns, Term Structure, Inflation
and Real Activity.
9. N T Laopodis, (2010), Monetary Policy and Stock Market Daynamics Across
Monetary Regiems, working paper
10. J. Blanchard, (1981), Output, the Stock Market, and Interest Rates, The American
Economic Review, 71(1), 132-143.
11. F Carrieri and B Majerbi, (2006), The Pricing of exchange risk in emerging
stock Markets , Journal of International Business Studies, 37, 372-391.
12. S Edwards and R Susmel, (2003), Interest-Rate Volatility in Emerging Markets,
The Review of Economics and Statistics, 85(2), 328-348.
13. Kaul, G.(1990), Monetary Regimes and the relation between stock returns and
inflationary expectations, Journal of Financial and Quantitative Analysis, 15,307-
321.
14. Ali, E. & Talukder D. K., (2009), Preferential Trade among the SAARC Countries:
Prospects and Challenges of Regional Integration in South Asia, JOAAG, 4(1).
100 A Procedural Guide to Write a Research Paper

Capital Structure and Stock Returns

Dr. Tarika Singh, Dr. Jatinder Loomba, Deepshikha Rajdev,


Dr. Saurabh Goyal, Jagmohan Jadon, Kumar Neelmani
& Sonu Sidhwani

ABSTRACT
The present study is carried out to find out the relationship
between capital structure and stock returns of the Nifty listed
companies. Individual NSE fifty companies which were listed
on Nifty for continuously for the five years of study period,
(2005-2007, and 2010-2011) were used for study purpose;
there were 6 such companies found on basis of availability of
data. Regression Analysis was used for finding out cause and
effect relationship between debt ratios (used as measure for
capital structure) and stock returns of the selected companies
under study. Findings of the study are consistent with the
original Modigliani and Miller (1958) proposition.
Keywords: Capital structure, Leverage, Stock Returns

Introduction
For almost 50 years now, theoretic as well as empirical research seeks
to identify determinants of the corporate capital structure and, more
recently, the underlying dynamics of the debt-equity choice. The common
theme of traditional corporate ?nancial theory is that ?rms strive to
maintain an optimal or at least a somewhat rigid target capital structure
that balances the costs and bene?t associated with varying degrees of
leverage. This view argues that companies respond to disruptions in
their optimal capital structure by rebalancing their leverage ratios
A Procedural Guide to Write a Research Paper 101

back to the optimum immediately. However, recent empirical evidence


challenges this view that ?rms dynamically rebalance their capital
structure. Among others, Fama and French (2002) found that ?rms
debt ratios only slowly readjust back towards their targets. In finance,
capital structure refers to the way a corporation finances its assets
through some combination of equity, debt, or hybrid securities. A firm's
capital structure is then the composition or 'structure' of its liabilities.
Capital structure is directly related with the financing decision of the
company. Primarily, it consists of the debt and equity used to finance
the firm. Researchers continue to analyze capital structures and try to
determine whether optimal capital structures exist.
An optimal capital structure is usually defined as one that will minimize
a firm's cost of capital, while maximizing shareholders wealth. Hence,
capital structure decisions have great impact on the financial performance
of the firm.
Much of the theory in corporate sector is based on the assumption
that the goal of a firm should be to maximize the wealth of its current
shareholders. One of the major cornerstones of determining this goal
is financial ratios. Financial ratios are commonly used to measure
firms performance. Generally, corporations include these in their annual
reports to stakeholders. Investment analysts provide these to investors
who are considering the purchase of a firms securities.
Since Modigliani and Miller published their seminal paper in 1958,
capital structure has generated great interest among financial researchers.
They argued that in efficient markets the debt-equity choice is irrelevant
to the value of the firm and benefits of using debts will compensate
with decrease of companies stock. Prior to MM theory, conventional
perspective believed that using financial leverage increases companys
value. In this respect, there is an optimized capital structure that
minimizes capital costs.
In a subsequent paper, Modigliani and Miller (1963) eased the conditions
and showed that under capital market imperfection where interest
expenses are tax deductible, firm value will increase with higher financial
leverage. Hence, the optimal capital structure represents a level of
leverage that balances bankruptcy costs and benefits of debt finance.
Jensen and Meckling (1976) suggested that the firms optimal capital
structure will involve the tradeoff among the effects of corporate and
personal taxes, bankruptcy costs and agency costs, etc. Thus, in the
companies that have high cash flow and profitability, increasing of
debts can be used as a tool of reducing the scope for managers until
resources of company may not be waste as a result of their individual
purposes. The other conflicting problem is that managers may not
102 A Procedural Guide to Write a Research Paper

receive all the benefits of their activities. This is seen when managers
share in ownership of company is low. When the managers increase
stock is high, this inefficiency decreases. Therefore, it is appropriate
that by increasing debts instead of stock issuance prevent from
decreasing of managers share of ownership interest (Huang, Song,
2005), Stulz (1990) like Jensen believes that debts payment decreases
cash flows available for managers.
The alternative theory, discussed by Meyers (1984), Myers and Majluf
(1984) and Fama & French (2002), describes a firms debt position as
the accumulated outcome of past investment and capital decisions.
Thus, financing investments using internally generated funds may be
the cheapest source, and the firms financial structure is the outcome
of past cash flows and investment opportunities. The conflict between
benefits of share holders and creditors has consequences like increase
of interest rate by creditors, addition of supervision costs and decrease
of investment. So, this conflict demonstrates that high leverage leads
to poor performance (Williams J, 1987). Managers in comparison to
investors have more information about operation. Myers and Majluf
(1984) believed that this causes that pricing the stock with investors
be understate. In this condition that there is asymmetric information,
companies prefer financing by internal sources to stock issuance, and
where there is not adequate internal sources, they refer to borrowing
The main conclusion drawn from the asymmetric information theories
is that there is a hierarchy of firm preferences with respect to the
financing of their investments (Myers & Majluf, 1984). This hierarchy
of preferences suggests that firms finance their investments first using
internally available funds, followed by debt, and finally through external
equity.
Dimitrov and Jain (2003) with operational performance of firms proposed
another theory. They argued that if manager have access to private
information about becoming worse in future operational performance
they will be increase debt. Thus, increasing the leverage is a negative
sign and demonstrates poor forward performance. Rajan and Zingales
(1995) argue that larger firms tend to disclose more information to
outside investors than smaller ones. Overall, larger firms with less
asymmetric information problems should tend to have more equity
than debt and thus have lower leverage. However, larger firms are
often more diversified and have more stable cash flow; the probability
of bankruptcy for large firms is smaller compared with smaller ones.
The firms optimal capital structure will involve the conflicting theoretical
arguments. Findings of Titman and Wessels (1988), Harris and Raviv
(1991) and Rajan and Zingales (1995) confirmed the results of Mayers
A Procedural Guide to Write a Research Paper 103

that believed increase of leverage will decrease profitability. But, Janson,


unlike Mayers, predicts a positive link between financial leverage and
profitability in efficient market and if the market be inefficient, there
will be a negative relationship between them. In 1988, Rajan and Zingales
confirmed this theory. Cai and Zhang (2005) by studying this concept,
found that in companies with high leverage, converse link between
leverage changes and return on stock is stronger (Rajan, Zingales,
1995). Wald (1999) believed that the link between profitability and
debt-asset ratio is positive and significant. Profitability was defined in
the form of earnings before interest and tax (EBIT) (Rajan, Zingales,
1995).

Relationship between Leverage and Performance of Firms


A study by Ibrahim El-Sayed Ebaid, (2009) based on a sample of non-
financial Egyptian listed firms from 1997 to 2005 reveals that capital
structure choice decision, in general terms, has a weakto-no impact
on firm's performance. Results of some studies (Myers, 2001); Eldomiaty,
2007) show that capital structure is not the only way to explain financial
decisions. Probably this explains the contradictory results of the studies
that empirically tested the predictions of relationship between leverage
and firm's performance. As explained by Jermias (2008), only the direct
effect of financial leverage on performance is examined by prior studies
however leverage performance relationship may be affected by some
other factors like competitive intensity and business strategy.
Studies showed contradictory results about the relationship between
increased use of debt in capital structure and firms performance. Some
studies (Taub, 1975; Roden and Lewellen, 1995; Champion, 1999; Ghosh
et al., 2000; Hadlock and James, 2002, Berger and Bonaccorsi di Patti,
2006) showed positive relationship and some (Kester, 1986; Friend
and Lang, 1988, Fama and French, 1998, Gleason et al., 2000; Simerly
and Li, 2000, Booth et al., 2001 Ibrahim, 2009) showed negative or
weak/no relationship between firms performance and leverage level.
In a study of listed firms in Ghana, Abor (2005) found that Short-term
and Total Debt are positively related with firm's ROE, whereas Long-
term Debt is negatively related with firm's ROE. While examining the
relationship between capital structure and performance of Jordan firms,
Zeitun and Tian (2007) found that debt level is negatively related
with performance. In a similar study on microfinance institutions in
sub-Saharan Africa, Kyereboah-Coleman (2007) found that high leverage
is positively related with performance (i.e. ROA and ROE) and Abor
(2007) on small and medium-sized enterprises in Ghana and South
Africa showed that long-term and total debt level is negatively related
with performance.
104 A Procedural Guide to Write a Research Paper

There is vast literature available that examines relationship of capital


structure and performance of firms in developed nations but very less
tested empirically for developing and emerging economies. As compared
to the developed markets like Europe, America etc. it is found by the
Eldomiaty (2007) that capital markets are less efficient and suffers
from higher level of asymmetry in terms of information in emerging
and developing markets than capital markets in developed countries.
So researchers decided to take India as sample of emerging market
and evaluate performance of firms against capital structure
Baker and Wurgler (2002) investigate the in?uence of past stock market
returns (see also Rajan and Zingales 1995). But they are interested in
how these returns in?uence the active issuing decisions of ?rms anddo
not consider the implied change Titman and Wessels (1988) ?nd that
only uniqueness (measured by R&D/sales, high selling expenses,
and employees with low quit rates) and earnings are reliably important.
Rajan and Zingales (1995) offer the de?nitive description of OECD
capital structures and ?nd a strong negative correlation between market-
book ratios and leverage. Like Rajan and Zingales, Barclay, Smith,
and Watts (1995) ?nd that debt ratios are negatively related to market-
book ratios. Graham (2003) surveys the voluminous tax literature.
Hovakimian et al (2001) found a mild tendency of ?rms to issue in
order to return to a target debt-equity accounting ratio. The implied
debt ratio can subsume most of the power of the variables in this
literature.
Drobetz and Pensa (2007) we revisit Welch's (2004) finding that stock
returns are the primary determinant of capital structure changes and
that the corporate motives for issuing activities remain largely
unexplained.
Baker and Wurgler (2002) document that market timing efforts, e.g.,
issuing equity when market valuations are high compared to book,
and past market valuations, have a persistent impact on corporate
capital structures. Finally, Welch (2004) investigates if ?rms counteract
the stock return-induced changes in the capital structure. His ?ndings
indicate that ?rms do little to readjust their debt ratios for the effect of
stock price movements: actual debt ratios move almost one to one
with stock returns and the effect is highly persistent. He concludes
therefore that the Fama and French (2002) interpret the long-run mean
as the optimal debt ratio.
Objective of the Study
To find out the relationship between capital structure and stock
returns in India.
To open new vistas for further new study.
A Procedural Guide to Write a Research Paper 105

Research Methodology
The Study
The study was descriptive in nature. The study investigates whether
actual debt ratios by-and-large behave as if firms readjust to their
previous debt ratios (targeting a largely static target), or whether they
permit their debt ratios to fluctuate with stock prices. Population was
taken as NSE-50 listed companies.

Sample Frame
Sample frame was of NSE fifty companies.

Sample Size
Sample size was of fifty companies.

Sample Element
Individual NSE fifty companies which were listed on Nifty for
continuously for the five years of study period, (2005-2007, and 2010-
2011) acted as an element; there were 6 such companies found on
basis of availability of data.

Tools for Data Collection


Data was collected through secondary resources i.e., websites like
www.nseindia.com

Tools for Data Analysis


Regression Analysis was used for finding out cause and effect
relationship between debt ratios and stock returns of the selected
companies under study.

Result and Discussion


To fulfill the objectives of research, following tests were applied:

Regression Analysis
# Assumptions of Linear Regression
Normally Distributed Error Terms the error terms follow the normal
distribution. If any of these assumptions is violated (i.e., if there is
nonlinearity, serial correlation, heteroscedasticity, and/or non-normality),

Normality Testing
The KS normality test for large, middle and small capitalization
companys data showed that the data was normally distributed.
106 A Procedural Guide to Write a Research Paper

Null Hypothesis H01: Test distribution is Normal


As the data of all the variables was significant at more than 5% level
of significant, therefore we cant reject the null hypothesis of normal
distribution. The data of all the variables was found to be normal.
Therefore, regression can be proceeded for.
One-Sample Kolmogorov-Smirnov Test
VAR000 VAR00 VAR000 VAR00 VAR00 VAR00 VAR00 VAR00009 VAR00 VAR00 VAR00 VAR00
02 003 04 005 006 007 008 010 011 012 013
N 5 5 5 5 4 5 5 5 5 5 5 5
Normal Mean .0960 .0620 .3199 -.0545 .0009 -.4011 .3778 -56.4615 .1608 -.0408 .0080 -.0160
Parameters Std. .05320 .17810 .02771 .28309 .00071 .81533 .10165 78.88700 .13334 .30221 .00447 .13069
Deviatio
n
Most Absolute .418 .181 .399 .143 .204 .340 .377 .363 .319 .153 .473 .266
Extreme Positive .418 .146 .399 .138 .204 .219 .190 .236 .246 .153 .327 .149
Difference Negative -.249 -.181 -.272 -.143 -.171 -.340 -.377 -.363 -.319 -.128 -.473 -.266
s
Kolmogorov- .935 .404 .891 .321 .408 .759 .844 .812 .713 .342 1.057 .594
Smirnov Z
Asymp. Sig. (2- .346 .997 .405 1.000 .996 .612 .475 .525 .690 1.000 .214 .872
tailed)
a. Test distribution is Normal.

Linear Regression
Linear regression analyzes the relationship between two variables, X
and Y. For each subject (or experimental unit), you know both X and
Y and you want to find the best straight line through the data. In
some situations, the slope and/or intercept have a scientific meaning.
In other cases, you use the linear regression line as a standard curve
to find new values of X from Y, or Y from X. In general, the goal of
linear regression is to find the line that best predicts Y from X. Linear
regression does this by finding the line that minimizes the sum of the
squares of the vertical distances of the points from the line.

Ho1: The Debt Ratio of WIPRO is positively associated with the Stock
Returns of WIPRO.
The regression is calculated by taking the effect of independent non
executive director and link on Tobins q by using SPSS software. In
this non executive director and link are independent variable and
Tobins q is the dependent variable. Therefore, regression is calculated
by taking dependent and independent variable.
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .007a .000 -.333 .3489522
a. Predictors: (Constant), DWIPRO

Here the value of R Square is .000 or 0%. This means that debt ratio
and stock returns of WIPRO are 0% related to each other.
A Procedural Guide to Write a Research Paper 107

ANOVA
Model Sum of Squares Df Mean Square F Sig.
1 Regression .000 1 .000 .000 .991a
Residual .365 3 .122
Total .365 4
a. Predictors: (Constant), DWIPRO
b. Dependent Variable: RWIPRO

Coefficients
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) -.038 .262 -.145 .894
DWIPRO -.017 1.308 -.007 -.013 .991

Regression equation
Total impact of independent Debt Ratio on Stock Returns of WIPRO
a. Y = a + bx
= -.038+.(-.017)x
x = Debt Ratio of WIPRO (independent variable)
Y = Stock Returns of WIPRO (dependent variable)
b. Here F value is 0 which is insignificant at 99.1 % insignificant
that means the model is insignificant.
c. Beta is the average amount the dependent increases when the
independent increase one standard deviation and other
independent variables are held constant. Here beta value is (-
.007). This means that one unit change in independent variable
(Debt Ratio) will lead to .7% change in stock returns of WIPRO
and that too in opposite direction.

Ho2: The Debt Ratio of ITC is positively associated with the Stock
Returns of ITC.

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .787a .619 .493 .0930949
a. Predictors: (Constant), DITC

Here the value of R Square is 61.9%. This means that debt ratio and
stock returns of ITC are 62% related to each other.
108 A Procedural Guide to Write a Research Paper

ANOVA
Model Sum of Squares df Mean Square F Sig.
1 Regression .042 1 .042 4.883 .114a
Residual .026 3 .009
Total .068 4
a. Predictors: (Constant), DITC
b. Dependent Variable: RITC
Coefficients
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) -.200 .093 -2.148 .121
DITC 23.000 10.408 .787 2.210 .114
a. Dependent Variable: RITC

Regression equation
Total impact of independent Debt Ratio on Stock Returns of ITC
a. Y = a + bx
=-.200+ 23.000x
x = Debt Ratio of ITC (independent variable)
Y = Stock Returns of ITC (dependent variable)
b. Here F value is 4.883 which is insignificant at 11.4 % insignificant
that means the model is insignificant.
c. Beta is the average amount the dependent increases when the
independent increase one standard deviation and other
independent variables are held constant. Here beta value is .787.
This means that one unit change in independent variable (Debt
Ratio) will lead to 78.7% change in stock returns of ITC.

Ho3: Debt Ratio of ACC is positively associated with the Stock Returns
of ACC.
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .579a .335 .114 .1676869
a. Predictors: (Constant), DACC

Here the value of R Square is 33.5%. This means that debt ratio and
stock returns of ACC are 33.5% related to each other.
A Procedural Guide to Write a Research Paper 109

ANOVA
Model Sum of Squares df Mean Square F Sig.
1 Regression .043 1 .043 1.512 .306a
Residual .084 3 .028
Total .127 4
a. Predictors: (Constant), DACC
b. Dependent Variable: RACC

Coefficients
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) -.124 .169 -.735 .516
DACC 1.938 1.576 .579 1.230 .306
a. Dependent Variable: RACC

Regression equation
Total impact of independent Debt Ratio on Stock Returns of ACC
a. Y = a + bx
= -.124+1.938x
x = Debt Ratio of ACC (independent variable)
Y = Stock Returns of ACC (dependent variable)
b. Here F value is 1.512which is insignificant at 30.6 % insignificant
that means the model is insignificant.
c. Beta is the average amount the dependent increases when the
independent increase one standard deviation and other
independent variables are held constant. Here beta value is .579.
This means that one unit change in independent variable ( Debt
Ratio) will lead to 57.9% change in stock returns of ACC.

Ho4: The Debt Ratio of RELIANCE is positively associated with the


Stock Returns of RELIANCE
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .432a .187 -.084 .2947687
a. Predictors: (Constant), DRELIANCE

Here the value of R Square is .187or 18.7 %. This means that debt
ratio and stock returns of RELIANCE are 18.7% related to each other.
110 A Procedural Guide to Write a Research Paper

ANOVA
Model Sum of Squares df Mean Square F Sig.
1 Regression .060 1 .060 .689 .467a
Residual .261 3 .087
Total .321 4
a. Predictors: (Constant), DRELIANCE
b. Dependent Variable: RRELAINCE

Coefficients
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) 1.358 1.707 .796 .484
DRELIANCE -4.416 5.319 -.432 -.830 .467
a. Dependent Variable: RRELAINCE

Regression equation
Total impact of independent Debt Ratio on Stock Returns of RELIANCE
a. Y = a + bx
= 1.358+(-4.416)x
x = Debt Ratio of RELIANCE (independent variable)
Y = Stock Returns of RELIANCE (dependent variable)
b. Here F value is .689 which is insignificant at 46.7 % insignificant
that means the model is insignificant.
c. Beta is the average amount the dependent increases when the
independent increase one standard deviation and other
independent variables are held constant. Here beta value is (-
.432). This means that one unit change in independent variable
(Debt Ratio) will lead to 43.2% change in stock returns of
RELIANCE and that too in opposite direction.

Ho5: The Debt Ratio of SIEMENS is positively associated with the


Stock Returns of SIEMENS.
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .729a .531 .375 .6444938
a. Predictors: (Constant), DSIEMENS

Here the value of R Square is .531 or 53.1%. This means that debt
ratio and stock returns of SIEMENS are 53.1 % related to each other.
A Procedural Guide to Write a Research Paper 111

ANOVA
Model Sum of Squares df Mean Square F Sig.
1 Regression 1.413 1 1.413 3.402 .162a
Residual 1.246 3 .415
Total 2.659 4
a. Predictors: (Constant), DSIEMENS
b. Dependent Variable: RSIEMENS
Coefficients
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) .195 .433 .450 .683
DSIEMENS -832.580 451.419 -.729 -1.844 .162
a. Dependent Variable: RSIEMENS

Regression equation
Total impact of independent Debt Ratio on Stock Returns of SIEMENS
a. Y = a + bx
= .195+ (-832.580)x
x = Debt Ratio of SIEMENS (independent variable)
Y = Stock Returns of SIEMENS (dependent variable)
b. Here F value is 3.402 which is insignificant at 16.2 % insignificant
that means the model is insignificant.
c. Beta is the average amount the dependent increases when the
independent increase one standard deviation and other
independent variables are held constant. Here beta value is (-
.729). This means that I nit change in independent variable ( Debt
Ratio) will lead to 72.9% change in stock returns of SIEMENS
and that too in opposite direction.

Ho: The Debt Ratio of TATA is positively associated with the Stock
Returns of TATA.
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .466a .217 -.043 80.5815852
a. Predictors: (Constant), DTATA

Here the value of R Square is .217or 21.7%. This means that debt ratio
and stock returns of TATA are 21.7% related to each other.
112 A Procedural Guide to Write a Research Paper

ANOVA
Model Sum of Squares Df Mean Square F Sig.
1 Regression 5412.458 1 5412.458 .834 .429a
Residual 19480.176 3 6493.392
Total 24892.634 4
a. Predictors: (Constant), DTATA
b. Dependent Variable: RTATA
Coefficients
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) 80.252 154.020 .521 .638
DTATA -361.865 396.355 -.466 -.913 .429
a. Dependent Variable: RTATA

Regression equation
Total impact of independent Debt Ratio on Stock Returns of TATA
a. Y = a + bx
= 80.252+ (-361.865)x
x = Debt Ratio of TATA (independent variable)
Y = Stock Returns of TATA (dependent variable)
b. Here F value is .834 which is insignificant at 42.9 % insignificant
that means the model is insignificant.
c. Beta is the average amount the dependent increases when the
independent increase one standard deviation and other
independent variables are held constant. Here beta value is (-
.466). This means that one unit change in independent variable
( Debt Ratio) will lead to 46.6% change in stock returns of TATA
and that too in opposite direction.

Conclusion
The present study was done to find out the relationship between capital
structure and stock returns of NSE listed companies. The causal
relationship was checked using regression analysis. The data was found
to be normally distributed. The causal relationship between debt ratio
and returns for WIPRO came out to be insignificant but for ITC, ACC,
RELIANCE, SIEMENS and TATA came out to be significant. Another
result which came out against the theory was negative relationship
between the debt ratio and stock returns for RELIANCE, SIEMENS
and TATA along with WIPRO. The possible reasons for the results can
A Procedural Guide to Write a Research Paper 113

be that the debt ratios vary from industry to industry (Manufacturing


and Services too).
This finding is consistent with the original Modigliani and Miller (1958)
proposition that financial leverage is irrelevant to the value of the
firm. Further research that employs additional leverage ratios and
alternate industry classifications will provide additional evidence and
insight into this problem.

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116 A Procedural Guide to Write a Research Paper

Impact of Service Quality Attributes on


Customer Satisfaction for Local Bus
Transit Service at Gwalior Region

Dr. Nischay Kumar Upamannyu, Nainshree Goyal, Dr. Neeraj


Dubey, C.K Dantre & Brijesh Shrivas

ABSTRACT
With increased pace of urbanization and economic growth,
attraction and dependency between different linking regions
has also increased. Transportation have performed very crucial
roles from very early accelerating the sharing of economic and
development benefit of connecting spatial regions.
This paper presents the results of a study conducted to examine
the benefits derived from real-time public transit and this
study will also revel the very important aspect of passenger
those who really uses the local bus services. In fact, they only
know what is being offered through the service before the
customer and not only this have to be found but also the level
of satisfaction of the local passenger have also to be checked.
Even it is also checked that do age, family income and different
level of employment have different effect while using the local
bus transit services. Even in this research paper, researcher
would be evaluating the relationship between h the factor of
service quality attribute with customer satisfaction.

Introduction
Over the last few years, the public transport industry in many countries
A Procedural Guide to Write a Research Paper 117

has been involved in a process of deep transformation. At the moment,


individual is used more than public transport. This fact causes many
problems like traffic congestion, air and noise pollution, energy
consumption and therefore serious consequences on the environment.
Therefore, transit agencies are becoming more competitive and are
concerning themselves with service quality and customer satisfaction.
Service quality measurement is one of the most important practical
themes for service providers and regulatory agencies, but it also
continues to be a challenging research theme. For these reasons, it is
important to identify service quality attributes and to establish their
importance and influence on customer behavior. Road transport is
very popular sector of transportation practice in Gwalior, because of
low costing and enjoyable journey. It made a great contribution to
solve the communication demand as well as the employment problems
which have a significant effect in the City economy of Gwalior.
A large group of people uses and enjoy the local bus service for their
own uses. However as it serving great amount of passengers, the
quality of service is the main concerning issue in that way. So ensuring
desire quality of service for the passenger of all group is the main
challenge for this sector. Targeting this challenge to identify satisfaction
situation regarding the present service quality is the main aim of this
study.

Conceptual Framework
Service quality: is a term which describes a comparison of expectations
with performance. A business with high service quality will meet
customer needs whilst remaining economically competitive. Improved
service quality may increase economic competitiveness. This aim may
be achieved by understanding and improving operational processes;
identifying problems quickly and systematically; establishing valid
and reliable service performance measures and measuring customer
satisfaction and other performance outcomes.
Service quality is a business administration term used to describe
achievement in service. It reflects both objective and subjective aspects
of service. The accurate measurement of an objective aspect of customer
service requires the use of carefully predefined criteria.
The measurement of subjective aspects of customer service depends
on the conformity of the expected benefit with the perceived result.
This in turns depends upon the customer's imagination of the service
they might receive and the service provider's talent to present this
imagined service.
118 A Procedural Guide to Write a Research Paper

Customer Satisfaction
Customer satisfaction is a term generally used to measure a customer's
perception of a company's products and services. Customer satisfaction
is the state of mind that customers have about a company when their
expectations have been met or exceeded over the life time of the product
or service.
Customer satisfaction is a term generally used to to measure a customer's
perception of a company's products and services. Customer satisfaction
is the state of mind that customers have about a company when their
expectations have been met or exceeded over the life time of the product
or service.
Customer satisfaction, a term frequently used in marketing, is a measure
of how products and services supplied by a company meet or surpass
customer expectation. Customer satisfaction is defined as "the number
of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals."

Review of Literature
Service quality
Howcrof (1991) explored that Service quality is about meeting customer
needs satisfactorily by matching to his expectations. Service quality in
banking implies consistently anticipating and satisfying the needs and
expectations of customers.
Parasuraman and Berry (1991) pointed out the view that high quality
service gives credibility to field sales force. Adrian and Berry (1995)
gave evidence that demonstrates the strategic benefits of quality in
contributing to profit, market share and returns on investment and
lowering cost and improving productivity (Garvin 1983; Kotler 2003.).
Maximising customer satisfaction through quality customer service
has been described as the ultimate weapon (Davidow & Uttal 1989).
Peeler, (1996) explored through his research the fact that the perceived
quality of the product is becoming the most important for competition
Quality Era. Gronroos .C (2000) also pointed out the three dimensions
of output technical quality, service performance quality, and
organizations mental picture. Zeithaml et al (1996) referred to ten
dimensions of service quality in their primary researches. Johnston
(1997) argued that did comprehensive empirical experiments on service
quality dimensions offered by Parasuraman et al (1985 & 1988) in ten
service organizations in England. At first, they presented a list of 12
A Procedural Guide to Write a Research Paper 119

factors, and then with more researches done, they offered a list of 18
factors.

Service quality Attribute


The aspects generally describing transit services can be distinguished
into the characteristics that more properly describe the service and
less easily measurable characteristics that depend more on customer
tastes. In the literature, there are many studies about transit service
quality. Eboli and Mazzulla (2007), Tyrinopoulos and Antoniou (2008),
Iseki and Taylor (2008), and Joewono and Kubota (2007) In these studies,
different attributes determining transit service quality are discussed;
the main service aspects characterizing a transit service include service
scheduling and reliability, service coverage, information, Comfort,
cleanliness, and safety and security. Service scheduling can be defined
by service frequency (number of runs per hour or per day) and service
time (time during which the service is available).

Customer Satisfaction
Parasuraman et al. (1985) The ServQual method introduced the concept
of customer satisfaction as a function of customer expectations (what
customers expect from the service) and perceptions (what customers
receive). The method was developed to assess customer perceptions
of service quality in retail and service organizations. Parasuraman,
Zeithaml and Berry (Leonard L) (1985 &1988) provided the basis for
the measurement of customer satisfaction with a service by using the
gap between the customer's expectation of performance and their
perceived experience of performance.
Bolton and Lemon (1999) found that service quality perceptions are
likely to be dynamic over the entire life of a customers relationship,
successful marketing requires that managers understand how the
formation of customer perceptions change over time. Surprenant and
Churchill, (1982), explored that the Customer Satisfaction is one of
the most important outcomes in the marketing literature. It serves to
link processes culminating purchase and consumption with post
purchase phenomena such as attitude change, repeat purchase, and
brand loyalty. This definition is supported by Jamal and Naser (2003).
Oliver (1980), found that the customer satisfaction model explains
that when the customers compare their perceptions of actual products/
services performance with the expectations, then the feelings of
satisfaction have arisen. Any discrepancies between the expectations
and the performance create the disconfirmation. Giese and Cote (2000)
identified the following components of satisfaction:
120 A Procedural Guide to Write a Research Paper

Customer satisfaction is one kind of response (cognitive or


emotional)
The response emphases on a particular focus (product,
consumption experience, expectations etc).
The response occurs at a particular time (after choice, based on
accumulated experience, after consumption etc.)
Devlin (2001) pointed out that customers perceive very little difference
in the services offered by retail banks and any new offering is quickly
matched by competitors. Zaim et al (2010) find out that tangibility,
reliability and empathy are important factor for customer satisfaction,
whereas responsiveness and assurance are important factor, that
assurance, empathy and tangibles are the important factor. Baumann
et al. (2007) found that tangibles are not related to customer satisfaction
and Ahmed et al. (2010) find out that empathy is negatively related to
customer satisfaction. Researchers identified various determinants of
customer satisfaction in the retail banking sector.
Arasli et al (2005) pointed out that reliability dimension of SERVQUAL
has the highest impact on customer satisfaction in Greek Cypriot banking
industry, whereas reliability is not related to customer satisfaction,
found by Chaniotakis and Lymperopoulos (2009) . Levesque and
McDougall (1996), competitive interest rate is one of the important
determinants of customer satisfaction in retail banking sector. They
found that a good employee customer relationship can increase the
satisfaction level. They pointed out that problem-recovery is important
to maintain the customer satisfaction. However, the results did not
confirm that satisfactory problem-recovery can increase satisfaction.
Jamal and Naser (2003) found that convenience and competitiveness
are not the critical factors for all gender, age and income groups.
Beerli et al (2004) explored that there is a positive relationship between
the two constructs. The relationship between customer satisfaction
and service quality is debatable. Some researchers argued that service
quality is the antecedent of customer satisfaction, while others argued
the opposite relationship. Parasuraman et al (1988) defined service
quality and customer satisfaction as service quality is a global judgment,
or attitude, relating to the superiority of the service, whereas satisfaction
is related to a specific transaction. Jamal and Naser (2003) stated that
service quality is the antecedent of customer satisfaction. However,
they found that there is no important relationship between customer
satisfaction and tangible aspects of service environment. This finding
is contrasted with previous research by Blodgett and Wakefield (1999),
but supported by Parasuraman et al (1991).
A Procedural Guide to Write a Research Paper 121

Yee et al (2010) found that service quality has a positive influence on


customer satisfaction. On the other hand, Bitner (1990) and Bolton
and Drew (1991) pointed out that customer satisfaction is the antecedent
of service quality. In 2004, Beerli et al supported this finding. Beerli et
al (2004) mentioned a possible explanation is that the satisfaction
construct supposes an evaluative judgment of the value received by
the customer. This finding is contrasted with most of the researchers.
Gleave, S. D. (2000) A study on railway passenger service quality
valuation carried out from December 1999 to June 2000 by the
organization named Steer Davies Gleave of London prepared for Shadow
Strategic Rail Authority to study the importance of rail passengers
into improvement of the range and quality of facilities and service on
stations and in trains. Fu, L. and Xin, Y (2007) found the relationship
between rail passenger satisfaction and service attributes and indicated
that relationship between the satisfaction of service and service quality
attributes of rail passengers.

Objective of the Study


Main Objective
To evaluate the effect of service quality attribute on customer satisfaction
Other Objective
To design, develop and standardize measure for evaluating service
quality attribute and customer satisfaction.
To find out the underlying factors of service quality attribute
and customer satisfaction.
To open new avenues for future research.

Research Methodology
The study was Casual in nature and the survey method was used for
data collection. Sample design consists of size of population, sample
element, sampling size and sampling techniques.
Population of this research study was all the bus passenger of Gwalior
city was treated as population for this study. An individual passenger
of city bus in Gwalior was treated as the element of the study. The
sample size for conducting the research study was 150 respondent
and these were selected as purposive. Non probability sampling
techniques was used techniques was used for the study.

Tools for Data Collection


Extensive review of literature has indicated that there is effect between
122 A Procedural Guide to Write a Research Paper

Service quality attribute on customer satisfaction. The effect of service


quality attribute on Customer was tested through this in the Gwalior
region in context of City Bus. The responses were collected on a Likert
type scale of 1 to 5 for all the variables. Content validity of both
measures was established through a panel of judges before using the
measure for collecting data for the study.

Tools for Data Analysis


1) Internal consistency of both the measures (service quality attribute
and Customer satisfaction) was established through item to total
correlation.
2) Reliability of both the measures was computed to check whether
data items measure the variables they are supposed to measure
and that the measures are stable when used for repeat
measurement.
3) Factor analysis was applied to identify the underlying factors of
service quality attribute and customer satisfaction and also to
further establish the validity of the measures used for collecting
data.
4) ANCOVA-Test was applied to evaluate the effect of all the
categorical variable on dependent variable (Customer satisfaction)
and service quality attribute was taken as covariate.

Result and Discussions


Consistency Measurement of Service quality attributes
Consistency of all the statements in the questionnaire was checked
through item to total co-relation. In this, co-relation of every item
with total was measured and the computed value was compared with
standard value of 0.4. The measures having item to total correlation
lower than the critical value were declared as inconsistent and dropped
from the questionnaire but none of the statement was found inconsistent
among all the statement therefore none of the statement from
questionnaire was dropped. All the items in the performance measure
with their item to total co-relation are shown in the table 4.1
A Procedural Guide to Write a Research Paper 123

Table 4.1: Consistency Measurement of Service Quality Attribute

Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's
Item Deleted Item Deleted Total Correlation Alpha if Item
Deleted
Good frequency 81.4928 323.303 .449 .905
Reliability of buses 81.4058 318.374 .513 .903
Vehicle reliability 81.2899 315.288 .595 .901
Maintaining environment 81.3333 313.041 .613 .901
Good maintenance 81.3623 317.707 .556 .902
Enough security 81.6087 311.408 .563 .902
Surety availability 81.6449 315.953 .547 .903
Neat and clean 81.4130 310.595 .684 .899
Interior seat and window 81.4420 315.373 .623 .901
Be affordable 81.5797 312.304 .604 .901
Employee helpful 81.3188 315.270 .599 .901
Register passenger complaint 81.3478 320.564 .504 .904
Problematic 81.5000 317.274 .529 .903
Good condition 81.2899 317.448 .594 .901
Schedule 81.2536 319.592 .572 .902
Stop at my home 81.1522 320.947 .511 .903
Enough number of service 81.2826 319.241 .512 .903
Distance 81.3043 317.367 .487 .904
Bus stop in walking distance 81.2174 324.989 .421 .906
Enough security 81.1522 326.787 .428 .905

Reliability Test of Service Quality Attribute


Nunnally (1978) recommended that instruments used in basic research
have reliability of about 0.70 or better. The reliability was computed
by using PASW software. Cronbachs Alpha reliability test was applied
to compute reliability coefficients for all the items in the questionnaire.
Table 4.2: Reliability table of Service quality attribute
Reliability Statistics
Cronbach's Alpha N of Items
.907 20

It is considered that the reliability value more than 0.7 is good and it
can be seen that Cronbachs e reliability was found to be 0.907, which
value is higher than the standard value, therefore, Questionnaire can
be treated as highly reliable.

Consistency Measurement of Customer satisfaction


Consistency of all the statements in the questionnaire of Customer
satisfaction was checked through item to total co-relation. In this, co-
relation of every item with total was measured and the computed
124 A Procedural Guide to Write a Research Paper

value was compared with standard value of 0.4. The measures having
item to total correlation lower than the critical value were declared as
inconsistent and dropped from the questionnaire but none of the
statement was found inconsistent among all the statement therefore
none of the statement was dropped from the questionnaire. All the
items in the performance measure with their item to total co-relation
are shown in the table 4.3
Table 4.3: of consistency measure of customer satisfaction
Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha if
Item Deleted Item Deleted Total Item Deleted
Correlation
VAR00001 66.8440 262.561 .597 .889
VAR00003 66.6170 272.524 .430 .895
VAR00004 66.5035 263.866 .532 .892
VAR00005 66.6241 258.436 .639 .888
VAR00006 66.6738 256.979 .657 .887
VAR00007 66.6525 263.786 .532 .892
VAR00008 66.6170 257.881 .651 .887
VAR00009 66.6809 258.762 .598 .889
VAR00010 66.4752 262.523 .568 .890
VAR00011 66.3688 267.720 .539 .892
VAR00012 66.2908 271.093 .456 .894
VAR00013 66.2624 265.952 .532 .892
VAR00015 66.7447 263.549 .538 .892
VAR00016 66.5390 263.150 .614 .889
VAR00017 66.3546 262.545 .579 .890
VAR00018 66.3262 268.293 .497 .893

Reliability of Customer Satisfaction


The reliability was computed by using PASW 18 software. Cronbachs
Alpha reliability test was applied to compute reliability coefficients
for all the items in the questionnaire.
Table 4.4: Reliability of customer satisfaction
Reliability Statistics
Cronbach's Alpha N of Items
.897 16

It is considered that the reliability value more than 0.7 is good and it
can be seen that Cronbachs e reliability was found to be 0.897, which
is higher than the standard value, therefore, Questionnaire can be
treated as highly reliable.
A Procedural Guide to Write a Research Paper 125

One sample Kolmogorov- Smirnov Test


Before applying parametric test one sample Kolmogorov- Simonov
independent test was applied to evaluate collected data whether data
is fit for the parametric test or not using PASW 18 Software.
Table 4.5: One sample Kolmogorov Smirnov
One-Sample Kolmogorov-Smirnov Test
Service quality Customer satisfaction
attribute
N 149 149
Normal Parameters Mean 85.7114 79.2886
Std. Deviation 18.92278 18.80134
Most Extreme Differences Absolute .055 .072
Positive .039 .072
Negative -.055 -.055
Kolmogorov-Smirnov Z .677 .878
Asymp. Sig. (2-tailed) .749 .424
a. Test distribution is Normal.
b. Calculated from data.

One Sample Kolmogorov Smirnov was tested through Z value. Value


of Z was found to be 0.677 which is significant 74.9% level of significance
that indicated collected data of service quality attribute from respondent
is normally distributed and value of Z was found to be 0.749 which is
significant 42.4% level of significance that indicated collected data of
customer satisfaction from respondent is normally distributed.

Factor analysis of service quality Attributes


Factor analysis was applied to find out underlying factor of service
quality attribute. Kaiser Meyer Olkin measure of sampling adequately
indicated KMO value of 0.856 which indicated that the sample size
was good enough to for current study. KMO values above 0.7 are
considered to be high enough to consider the data is good enough for
this study.
Table 4.6: KMO and Bartlett test
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .856
Bartlett's Test of Sphericity Approx. Chi-Square 1306.233
Df 190
Sig. .000

Bartletts test sphericity which tested the null hypothesis that the item
to correlation matrix based on the responses received from respondents
for all the three brands was an identity matrix. The Bartletts test was
126 A Procedural Guide to Write a Research Paper

evaluated through chi-square test having Chi-Square value 1306.233


which is significant at 0.000 level of significant, indicating that null
hypothesis is rejected. Therefore it is clear that the item to item correlation
matrix not an identity matrix and the data were normally distributed
and data were suitable for factor analysis.

Factor Analysis of Service Quality Attribute


The Principal Component Analysis (PCA) was applied on the Service
quality attribute. The PCA with Kaiser Normalization and Varimax
Rotation converged on Four factor after six iteration. The factors were
named as service planning and reliability (7.331)*, Controlled and
other factor (1.952)**, Punctuality on time (1.425)***, and Network design
(1.399)**** . All measure were converged on each of these factors are
displayed in the table below.

Factor tables
Factor Name Total Variance Item Converged Loading
value
Service 7.331 36.655 Reliability of buses .794
planning and Maintain environment .717
Reliability Enough security .714
Good frequency .688
Good Maintain .614
Surety availability .421
Controlled and 1.952 9.761 Affordable .832
other factor Employee helpful .814
Neat and clean .713
Interior seat and window .657
Punctuality on 1.425 7.126 Good condition .736
right time On schedule .724
Non problematic .723
Register passenger .574
Network design 1.399 6.996 Distance .761
Bus stop walk in distance .751
Enough comfort .532

Discussion of emerged factor


Service planning and Reliability (7.331) - This factor has emerged as
the most important determinant of Service quality attributes a total
variance of 36.655. Six measures were converted into one factor.
Controlled and other factor (1.952) This factor has emerged as the
Second most important determinant of service quality attribute a total
variance of 9.761. Four measures were converted into one factor.
A Procedural Guide to Write a Research Paper 127

Punctuality on right time (1.425) - This factor has emerged as the


third most important determinant of service quality attribute a total
variance of 7.126. four measures were converted into one factor.
Network design (1.399) This factor has emerged as the four important
determinant of service quality attribute a total variance of 6.996. three
measure were converted into one factor.

Factor Analysis of Customer Satisfaction


Kaiser Meyer Olkin measure of sampling adequately indicated KMO
value of 0.821 meaning thereby that the sample size was good enough
to treat the sampling data as normally distributed. KMO values above
0.7 are considered to be high enough to consider the data as normally
distributed.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .821
Bartlett's Test of Sphericity Approx. Chi-Square 1240.558
Df 153
Sig. .000

Bartletts test sphericity which tested the null hypothesis that the item
to correlation matrix based on the responses received from respondents
for Customer satisfaction was an identity matrix. The Bartletts test
was evaluated through chi-square test having Chi-Square value 1240.558
which is significant at 0.000 level of significant, indicating that null
hypothesis is rejected. Therefore it is clear that the item to item correlation
matrix not an identity matrix and the data were suitable for factor
analysis.

Factor analysis of customer satisfaction


The principal component analysis was applied on customer satisfaction
data collected. The PCA with Kaiser Normalization with varimax rotation
converged on factor after seven iteration. The factor were named as
satisfied with comfort given*, satisfied with service supply and
reliability**, satisfied with transport and network designed***, Fair
dealing with customer****.
128 A Procedural Guide to Write a Research Paper

Factor tables
Factor Name Total Variance Item Converged Loading value
Satisfied with 6.881 38.227 Satisfaction from good condition .784
comfort given Good spacing .763
Waiting time .723
Right schedule .539
Easily known bust number .435
Satisfied with 1.884 10.465 Bus management .782
Service Satisfaction maintenance .718
supply and Time reliability .669
reliability Frequency in day .522
Service available .514
Satisfied with 1.439 7.996 Distance covered .812
transport and Stops near at main market .812
Network Walk in distance .797
designed All route cover .777
Fair Dealing 1.272 7.065 Fare of local bus .828
with customer Behaviour of employee .731
Good interior .646

Discussion of Emerged Factor


Satisfied with comfort given (6.881) - This factor has emerged as the
most important determinant of customer satisfaction a total variance
of 38.227. Five items converged on this factor.
Satisfied with Transport and Network Designed (1.884) This factor
has emerged as the second most important determinant of customer
satisfaction a total variance of 10.465. Five items were converged on
this factor.
Satisfied with Transport and Network designed (1.439) This factor
has emerged as the third most important determinant of customer
satisfaction a total variance of 1.439. Four items converged on this
factor.
Fair Dealing with customer (1.272) This factor has emerged as the
four important determinant of customer satisfaction a total variance
of 1.272. Three items converged on this factor.

Univariate Ancova Test


The ANCOVA test was applied to evaluate the effect of demographics
variable as Age, Qualification and Occupation as fixed variable and
Service quality attribute as covariate and customer satisfaction was
treated as dependent variable.
A Procedural Guide to Write a Research Paper 129

Levene's Test of Equality of Error Variances


Dependent Variable: CS
F df1 df2 Sig.
123.165 98 105 .000
Tests the null hypothesis that the error variance of the dependent variable is equal across groups.
a. Design: Intercept + SQA + Age + Qualification + Occupation + Age * Qualification + Age *
Occupation + Qualification * Occupation + Age * Qualification * Occupation

To select appropriate Post Hoc test Levenes test of equality of error


variances was applied. The null hypothesis that the error variance of
the dependent variable is equal across groups was tested using F
test. The value of F was found to be 123.165 which is significant at
0.000 % level of significance, indicating that Null hypothesis is rejected
at 5% level of significance. Since the numbers of groups for the
dependent variable are very large (4*4*4*5), the error variance of the
dependent variable was in any case likely to be unequal variances
across group were used.
Tests of Between-Subjects Effects
Dependent Variable: CS
Source Type III Sum of Squares Df Mean Square F Sig.
Corrected Model 4501.288a 29 155.217 6.569 .000
Intercept 776.338 1 776.338 32.854 .000
SQA 2882.333 1 2882.333 121.977 .000
Age 147.493 2 73.746 21.005 .000
Qualification 57.978 3 59.326 15.818 .007
Occupation 474.411 4 18.603 33.787 .000
Age * Qualification 558.193 6 46.365 21.116 .000
Age * Occupation 438.645 4 19.661 20.409 .002
Qualification * Occupation 580.003 6 23.334 16.564 .013
Age * Qualification * 58.405 3 19.468 .824 .484
Occupation
Error 2457.526 104 23.630
Total 721775.000 134
Corrected Total 6958.813 133
a. R Squared = .647 (Adjusted R Squared = .548)

The univariate ANCOVA model fit is indicated by Adjusted R2 which


has the value of 0.548 for the current model. Corrected model has
been tested for best fit using F test having value of 6.569 which is
significant at 0.000% level of significance indicating that the model
with demographic variables as fixed factors, Customer satisfaction as
dependent variable and Service quality attribute as covariate has high
fit.
130 A Procedural Guide to Write a Research Paper

H01 There is no effect of service quality attribute on customer


satisfaction.
The effect of Service quality attribute on customer satisfaction was
tested through F-test. The value of F is 121.977, which is significant at
0.000% level of significance. Therefore, the null hypothesis is rejected
at 5% level of significance, indicating that there is significant effect of
Service quality attribute on customer satisfaction.

H02 There is no effect of fixed factor variable as Age on customer


satisfaction.
The effect of fixed factor as Age on customer satisfaction was tested
through F- test. The value of F is 21.005, which is significant at 0.000%
level of significance. Therefore, the null hypothesis is rejected at 5%
level of significance, indicating that there is significant effect of Fixed
factor as Age on customer satisfaction.

H03 There is no effect of fixed factor variable as Qualification on


customer satisfaction.
The effect of fixed factor as Qualification on customer satisfaction
was tested through F- test. The value of F is 15.818, which is significant
at 0.7% level of significance. Therefore, the null hypothesis is rejected
at 5% level of significance, indicating that there is significant effect of
fixed factor as Qualification on customer satisfaction.

H04 There is no effect of fixed factor variable as Occupation on


customer satisfaction.
The effect of fixed factor as Occupation on customer satisfaction was
tested through F- test. The value of F is 33.787, which is significant at
0.000% level of significance. Therefore, the null hypothesis is rejected
at 5% level of significance, indicating that there is significant effect of
fixed factor as Occupation on customer satisfaction.

H05 There is no interaction effect of fixed factor variable as Age &


Qualification on customer satisfaction.
The interaction effect of fixed factor as Age & Qualification on customer
satisfaction was tested through F- test. The value of F is 21.116, which
is significant at 0.000% level of significance. Therefore, the null hypothesis
is rejected at 5% level of significance, indicating that there is significant
interaction effect of fixed factor as Age & Qualification on customer
satisfaction.
A Procedural Guide to Write a Research Paper 131

H06 There is no interaction effect of fixed factor as Age & Occupation


on customer satisfaction.
The interaction effect of fixed factor as Age & Qualification on customer
satisfaction was tested through F-test. The value of F is 20.409, which
is significant at 0.000% level of significance. Therefore, the null hypothesis
is rejected at 5% level of significance, indicating that there is significant
interaction effect of fixed factor as Age & Qualification on customer
satisfaction.

H07 There is no interaction effect of fixed factor as Occupation &


Occupation on customer satisfaction.
The interaction effect of fixed factor as Occupation & Qualification
on customer satisfaction was tested through F-test. The value of F is
16.564, which is significant at 1.3% level of significance. Therefore, the
null hypothesis is rejected at 5% level of significance, indicating that
there is significant interaction effect of fixed factor as Occupation &
Qualification on customer satisfaction.

H08 There is no interaction effect of fixed factor as Age, Occupation


& Qualification on customer satisfaction.
The interaction effect of fixed factor as Age, Occupation & Qualification
on customer satisfaction was tested through F-test. The value of F is
0.824, which is significant at 0.424% level of significance. Therefore,
the null hypothesis is not rejected at 5% level of significance, indicating
that there is no significant interaction effect of Fixed factor as Age,
Occupation & Qualification on customer satisfaction.

Results Discussion
Applications and Discussion of Findings
The main objective of this study was to evaluate the effect of service
quality attribute on customer satisfaction in local bus service transit
in Gwalior City. This result of this research study revealed that there
was strong and positive effect of service quality attribute on customer
satisfaction. SERVQUAL model was used to determine the relative
importance of each of the service quality attributes which influence
customer satisfaction toward quality perceptions which was being given
to local city passenger in Gwalior city. The hypotheses test confirms
that the service quality attributes are positively correlated with customer
satisfaction.
The result was in line with the finding of Ladhari (2009), where
researcher found the empathy (understanding) was the one of the
132 A Procedural Guide to Write a Research Paper

important attribute of service quality which would be strongest predictor


of customer satisfaction. The result of was also in line with the finding
of Kumar et al. (2010), and Lai (2004) where researcher pointed out
that assurance is one of the important attribute of service quality which
would be strongest factors for customer satisfaction. The result was
also in line of finding of Mengi (2009), where researcher found the
most important factor responsiveness of service quality attribute which
would be positively related to customer satisfaction. The result was
also in line of finding Zim et al. (2010) where researcher explored the
important attribute of service quality which was reliability had positive
effect on customer satisfaction. The result was also in line finding of
Lai (2004) where researcher pointed out that tangibility is a attribute
of service quality which was positively related to customer satisfaction.

Managerial Implications
The current study has shown the effect of service quality attribute on
customer satisfaction in the local bus service transit in Gwalior City.
This study confirms the positive effect of service quality attribute on
customer satisfaction. This study also suggests that SERVQUAL is a
suitable instrument for measuring the service quality attribute in bus
service transit in the Gwalior City. Therefore, the other publics transport
department managers can use this instrument to assess the service
quality attribute in India. Specially, in this research, researcher have
not tested all the dimension of service quality attribute separately but
effect of overall service quality attribute was tested on customer
satisfaction. Moreover, all the dimensions of service quality attributes
were found positively correlated with customer satisfaction in the review
of literature. Jones and Sasser (1995) pointed out that there is a huge
difference between merely satisfied and completely satisfied customers.
Therefore bank managers should pay attention on the complete customer
satisfaction

Suggestion
The sample size of the current study was 150 only. This sample
size meets the minimum requirement. The new researcher may
use a bigger size to find out more about service quality attribute
and customer satisfaction.
The sample technique of the current study was used as non
probability purposive sampling technique. The new researcher
may use probability technique sampling for carrying out research.
The current study was carried out in City bus transport in only
Gwalior city. Therefore the result of this study cannot be
A Procedural Guide to Write a Research Paper 133

generalized for all transport medium. Hence, it is suggested to


new researcher to include respondent from the all big city only
than the result of the study may be generalized.
The experiences of passenger of Gwalior city were shown in this
research but the Gwalior City is not considered like metro city
therefore if this kind of study is conducted in the metro city so
the result can be more generalized.

Limitations of the Study


The current study presented exhibit limitations that should be
considered. The limitations are as follows:
The sample size of the current study was 150. This sample size
meets the minimum requirement. The researcher may use a bigger
sample size.
The non-probability sampling technique was used in this study.
All the service quality attributes were not tested separately on
customer satisfaction.
This research was conducted in the Gwalior city therefore result
of this cannot be generalized.

Conclusion
This research study was divided into Six Chapter. First chapter of this
study was Introduction and conceptual frame work. Conceptual frame
work consist of little overview of service quality and customer
satisfaction.
Second chapter of this study includes Review of literature and Objective
of the current study. Review of literature cover separate review of
Service quality, Service quality attribute and Customer satisfaction.
Third Chapter includes Research Methodology, Tools for data collection
and Tools for data analysis. Research methodology was further divided
as the nature of the study, population, sample elements, sampling
techniques and sample size.
Fourth Chapter of the study includes Results and discussion, the fifth
chapter of the study includes Implication of the study and Six chapter
includes Suggestion, Limitation and Conclusion and seven chapter of
this study consist of Reference and Annexure.
134 A Procedural Guide to Write a Research Paper

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(2010). Impact of Service Quality on Customers' Satisfaction: Empirical evidence
from telecom sector of Pakistan. Interdisciplinary Journal of Contemporary
Research in Business, 1(12), 98-113.
3. Arasli, H., Smadi, S. M., and Katircioglu, S. T (2005). Customer Service Quality
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136 A Procedural Guide to Write a Research Paper

A Study of Factors Affecting Academicians


Motivation for Research

Dr. Garima Mathur, Ms. Monika Mittal, Mr. Abhishek Dixit,


Ms. Moksha Shukla & Mr. Satish Bansal

ABSTRACT
Research has gained attraction of most of the people these
days. People are involved in conducting research in one or the
other way. In academics especially Research has become a
mandatory aspect. Beside this there are few more factors that
attract members of faculty to undergo research. A number of
researches have been conducted to find out the faculty
motivation. But there are very few researches which have been
done to find out the factors that affect their Motivation for
research. Aim of this research work is to find out the factors
underlying faculty motivation for research. The study will
provide opportunities for the institutions to find out the factors
that affect the faculty motivation for research activities and
will also provide help them for improving their services and
level of faculty motivation. The present study also intended
to find out factors underlying what motivates academicians
to undergo research?

Introduction
One of the most important factors that lead an individual to his goals
is the drive. This drive is known as motivation. It is a keenness and
willpower with a kind of excitement that leads one to reach to greater
heights whether personal or professional. Motivation has also been
A Procedural Guide to Write a Research Paper 137

defined as a desire or need which directs and energizes behavior that


is oriented towards a goal.
To be motivated is a consistent need for a human being. As a person
grows or becomes mature he starts understanding things. It is the
motivation that leads him to do some work. Though there are numerous
factors that motivate a person but they vary from individual to
individual. The factors may be specific to the gender, occupation or to
some particular case. Few decades back researches in academics were
mostly confined to conceptual development. The importance of research
in applied area has recently gained attraction. The reasons of increased
interest in research may be attributed to making it mandatory for
completion of doctoral education.
Moreover to be successful in academics it demands for research
publications (Amo, Ada & Sharman, 2012). There has been increasing
emphasis on research in colleges and universities.
Involving teaching faculty in research is incredibly important for all
round institutional development of the institution, faculty as well as
of students. Students learn more from their faculty as research helps
faculty members to view world differently and becomes more inquisitive.
This leads to enhance overall impact of the academicians.

Review of Literature
Research productivity has gained interest (Chen, 2001). Another study
on research productivity by Long, Bowers, Barnett and White (1998)
found significant relationship between academic unit where the faculty
is working to the quality and quantity of their research productivity.
Vancouver, Yoder & More (2008) affirms that like business institutions,
educational institutions obtain competitive advantage through the
activities and performances of the members in that institution (Coff,
1997). Three main categories can be counted where the activities and
performance can be measured. These categories are research, teaching,
and service (Dunn & Zaremba, 1997). Similarly, in research-extensive
universities also the faculty members are expected to be productive in
above mentioned areas that is; research, teaching, and service (Blackburn
& Lawrence, 1995; Fairweather, 2002; Neatby, 1985). Where as Bowen
& Schuster (1986) stated four things for a faculty tasks such as instruction,
research, public service, and institutional governance and operation
as important to improve faculty productivity. In addition to these
Finkelstein (1984) offered five components of academic work; teaching,
research and publications, administration, student contact, and
community service.
138 A Procedural Guide to Write a Research Paper

Gregorutti (2010) found Intellectual Growth, Knowledge advancement


and societal improvements, to refresh and enhance teaching, Professional
prestige within and outside the university as factors for research
motivation. On the other hand Altbach (1991) says that professors
also fulfill a consulting role to government and industry.
There are numerous motivational factors that affect faculty to undergo
research. Intrinsic factors may be desire to become a better teacher,
opportunity to reflect and rethink the way one teaches, opportunity
to experiment with new pedagogical approaches, Opportunity to develop
new ideas, gain new knowledge, skills, insights, and to make yourself
known name in academic arena etc. Extrinsic factors may be promotion
(deMeuse, 1987), better placements, Condition for employment and
many more. But if not directed properly lack of motivation may be a
problem (Dundar & Lewis 1998).
According to Blackburn & Lawrence (1995); Jackson (2004); & Levin
& Stephan (1989) faculty research motivation and productivity depends
on life and career stages, individual motivation and incentives, and
external funding opportunities. Other factors may be effects of personal
and institutional characteristics (Levitan & Ray, 1992), life cycle
development approach to investigating motivation (Baldwin &
Blackburn, 1981; Goodwin & Sauer, 1995; Hu & Gill, 2000).
Increase in salary and promotions were the most suggested linkages
of research. For example, Brewer & Brewer (1990) conducted a research
on deans who emphasized on the presence of a merit pay system to
increase faculty research productivity. Further more, Lockwood (2005)
also suggested that linking pay and promotion in higher education
institutions can influence academic staff research behavior. Once it is
made clear that the pay raises will have certain criteria. Recognition
and differentiation in terms of promotion, tenure, pay raises, grants,
reduced teaching loads, and other significant support can again
contribute significantly towards research motivation (Mak Khojasteh
& Robert A. Herring III, 2002). Since, research has been considered as
scholarly accomplishment (Kaufman & Chevan, 2011) so its importance
in promotion can not be overlooked.
However, Sansone & Harackiewicz (2000) viewed that the motivation
effect of promotion is actually dependent on an individuals perspective
of promotion. If a person has no value of promotion, she or he will
not work (publish) hard for it. Similarly, Tien (2000) also stated that
the individuals who need promotion will publish more or research
more than others.
The present study is intended to identify the factors that motivate
faculty members of central India to conduct research. We can see
A Procedural Guide to Write a Research Paper 139

number of researches have been reported in different countries related


to faculty motivation for research but no such work has been done in
the present studys population. On the basis of above literature, following
objectives were framed:

Objectives
1. To design, develop and standardize a measure to evaluate faculty
motivation for research.
2. To identify factors underlying faculty motivation for research.
3. To open new vistas for further research.

Method
Participants
Participants were 110 faculty members from different colleges including
Government, non government colleges and state University. Of 110
participants 63 were females and 47 were males. The participants were
from Commerce and Management disciplines. The faculty members
age ranged from 25 to 54.

Measure
Demographic: Demographic characteristics included age, gender,
institution to which they belong.
Motivation for Research: The measure for Motivation for research was
designed keeping in view the factors that actually motivate academicians
to conduct research. Self-designed questionnaire was used to identify
factors. Data was collected on a likert type scale, where 1 stands for
minimum agreement and 7 stands for maximum agreement. It included
items like Interest, Competency, Self Satisfaction, Promotional
Awareness etc.

Results
Reliability
Reliability has been considered as a best method to assess consistency
of the measure. The questionnaire was first tested for the reliability
through Cronbachs Alpha. The value reported was 0.886.

Factor Analysis
The data was then subjected to further analysis. Factor analysis has
been contributing to psychology research for more than 100 years
(Spearman, 1904, 1927). It has been used for number of issues like
construct designing, hypothesis testing data reduction etc. In the present
140 A Procedural Guide to Write a Research Paper

study it is used mainly for data reduction that is identifying underlying


variables.
Firstly, sampling adequacy was checked through KMO test. Field (2005)
mentioned that Kaiser-Meyer-Olkin Measure of sampling adequacy
(KMO) closure to 1 indicates that correlation patterns are relatively
compact and hence there are reliable and distinct factors. As Kaiser-
Meyer-Olkin Measure of sampling adequacy was more then 0.7 so the
sample was considered as suitable. The Chi square value of Bartlett
Test of Sphericity is significant at 0% hence, the data was considered
as non-spherical. These results allowed further analysis of data.
Principal Component Analysis has been used for retaining factors.
According to Kim & Mueller (1978b) factors having Eigen value greater
than one should be considered for component analysis. There were
six factors having Eigen values over one. Moreover scree plot also
showed the same results.
The factors were rotated through orthogonal varimax rotation. Factor
rotation is helpful in improving the reliability, meaningfulness and
reproducibility of factors (Weiss, 1976). Orthogonal rotation is considered
as simple and produces factors that are statistically not correlated to
each other. Varimax method of rotation provides simple structure.
The factors which were reported loadings more than 0.4 were retained
as a rule of thumb only such item should be retained in the factor.
One item Behavioral Pattern showed loading more than 0.4 on three
factors and the difference was less than 0.25 so the item was not
considered for analysis as according to (Nunnally & Bernstein, 1994;
Tabachnick & Fidell, 1996) an item loading more than 0.30 on more
than one factor should be excluded if the difference between the higher
and the lower loading is less than 0.25.

Factor Table
Factor Name Eigen Value Variable Statements Loading
Total Cumulative Percentage
1. Enhancement of 6.448 32.242 1. Knowledge .686
Knowledge and efficiency 4. Skill Quality .651
3. Competency .621
5. Interest .607
18. Self Satisfaction .589
2. Efficiency .588
2. Satisfying Interest & 2.121 42.846 11. Versatility .808
Curiosity 12. Learning .725
6. Excitement .547
10. Self Identity .522
A Procedural Guide to Write a Research Paper 141

3. Promotion 1.560 50.647 14. Promotional .795


Awareness .756
19. Attitude
4. Performance Evaluation 1.523 58.260 20. Competition .758
16. Better Future .707
Prospects .666
15. Salary Increment
5. Novelty 1.191 64.216 8. Innovation .822
9. Creativity .696
6. Achievement Need 1.072 69.574 7. Achievement .791
17. Resume .786
Enrichment

1. Enhancement of Knowledge and Efficiency: This factors has


emerged as most dominating factor with cumulative percentage
32.242. the factor included six items like knowledge, skill quality,
competence, interest, self satisfaction and efficiency. Highest
loading item was knowledge indicating that people in academics
place gaining knowledge through research at highest importance.
Similarly they also feel that skill quality, competency and efficiency
can be increased through research.
2. Satisfying Interest & Curiosity: The second prominent factor
included four items namely, Versatility, Learning, Excitement and
Self Identity. The items in this factor clearly indicate that individual
interest varies from person to person and most of the people
considered they become versatile by conducting research with
factor loading .808. They also emphasized that research not only
makes us versatile but it also helps to learn and bring excitement
and prove to be a matter of self identity.
3. Promotion: Lai (1990) stated promotion can be used to encourage
individual to conduct research. Similarly in this factor awareness
that promotion becomes easy after research as well as having
positive attitude towards research helps faculty members in
promotions. In a study conducted in University of Canberra (Xin
Yan Zhang & Doug Davies), the value of research in promotion
can rightly be identified through the words of (Hendriks & Sousa,
2008) who stated that while interviewing a faculty respondent
for their study he commented about research publications: Half
to three quarters of what I read, if I asked myself why this was
written, the answer normally is promotion. Few more
emphasized the linkage of promotion and encouragement for
research. For example Li (2004) promotion always motivates to
conduct research as it is necessary for assessing academic
performances.
142 A Procedural Guide to Write a Research Paper

4. Performance Evaluation: This factor included items such as


Competition, Better future prospects and Salary increment.
This factor indicates that whether you are applying for jobs outside
or you are looking for pay raises you have to conduct researches.
In fact institutions are also valued according to research
publications of faculty members. Most universities have clear
written documents of performance requirement set for academic
staff. Like in India the performance is measured through is
Academic Performance Indicator (API) where research
publication is one of the most valued criteria. It is used for
performance evaluation and most of salary hikes or incentives
are paid accordingly, although, even in API the annual workload
of lecture and research publications varies from university to
university and institution to institution (Lee, 2000). However,
there were inconsistent results by Colbeck (1992) who stated that
merit pay was relatively unimportant and that incentives perceived
as external pressures did not productively motivate faculty
members.
5. Novelty: This factor also indicated that innovation and creativity
can be assessed through research. Individuals also want to conduct
researches to disseminate their novel ideas.
6. Achievement Need: With the research and publications a sense
of achievement comes and that also motivates faculty members
to conduct research. In addition to that research also helps to
enrich resume.

Limitations & Suggestions


The factors identified through factor analysis were actually indicative
but not exhaustive as there are other aspects also which affect faculty
motivation for research. Although the items covered indicate that there
are one or the other issue for research but the indicators like institutional
philosophy and support, learning environment and attitude of seniors
towards research may also contribute towards research. In fact research
motivation may vary according to number and kind of publications a
faculty member is having. So these factors should be considered while
studying motivation for research.

Conclusion
The study resulted in finding out the factors mainly associated with
motivating faculty to conduct research. This study provides an insight
to dominants factors underlying faculty motivation for research unlike
other studies focusing on faculty motivation for teaching. There were
A Procedural Guide to Write a Research Paper 143

in all six factors and the most prominent was enhancement of knowledge
& skills. This shows a positive sign as faculty members consider research
as a tool to enhance knowledge as well as satisfying their knowledge
and curiosity. However, they also place promotion as an important
factor and consider research as a tool for performance appraisal. They
also want to undergo research to show their innovativeness and
creativity. Few also considered research as a tool to satisfy their
achievement need. The study may be useful for further researches as
it provides information to guide researchers to identify factors as well
as indicators for faculty motivation for research.

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146 A Procedural Guide to Write a Research Paper

Examining the Effect of Product Performance


on Brand Reputation, Customer Satisfaction
and Customer Loyalty

Shailja Bhakar, Sneha Rajput, Suman Lata Bisht, Shilpi Nagariya,


Anil Singh Parihar & Mehak Huria

ABSTRACT
This main aim of this research paper is to identify the
relationship between product performance, brand reputation,
customer satisfaction and customer loyalty. It is believed that
good performance of a product leads to increased satisfaction
as well as increased reputation of the brand which in turn
converts into loyalty. It has been test in earlier researches
that reputation and satisfaction effect loyalty but their
interaction effect was not identified.
The sample size of 150 respondents was identified using quota
sampling technique where quota of male and female respondents
was fixed. Also the respondents were divided into buyers of
two laptop brands i.e. Dell and Sony. Data was evaluated
using SPSS 16 software and the results indicates positive
impact of product performance on reputation and satisfaction
as well as satisfaction has a significant impact on brand
reputation and finally brand reputation and satisfaction lead
to customer loyalty.
A Procedural Guide to Write a Research Paper 147

Conceptual Framework
Product Performance
When consumers purchase a product the purchase is generally based
on extrinsic cues such as the brand image, packaging, advertisement,
price etc. (Zeithaml, 1988). One reason behind this is that intrinsic
cues are not available at the time of purchase and secondly it takes
more time in evaluating the intrinsic cues of a product. Finally, intrinsic
cues may not be used because quality is difficult to evaluate. This is
more difficult in case of services such as insurance where the
performance or output of the service can be evaluated when an accident
or damage occurs.
What do we call a products performance Ulrich and Eppinger (1995)
define product performance as: How well a product implements its
intended functions. Such as while evaluating a laptops the product
performance characteristics are speed, efficiency, life, accuracy, and
noise. Product performance is a measure of functional aspects of the
product. In order to evaluate performance of a product or service,
customers need some kind of norm for what is good or acceptable.

Brand Reputation
Reputation may be considered as a component of identity as defined
by others. Reputation is known to be a ubiquitous, spontaneous, and
highly efficient mechanism of social control in natural societies. It is a
subject of study in social, management and technological sciences. Its
influence ranges from competitive settings, like markets, to cooperative
ones, like firms, organizations, institutions and communities.
Reputation of a social entity (a person, a social group, an organization
or a brand) is an opinion about that entity, typically a result of social
evaluation on a set of criteria.

Customer Satisfaction
When an organization is able to fulfill customers requirement better
than its competitors this leads to customer satisfaction. Some authors
have defined satisfaction in other way that satisfaction can be achieved
by fulfilling customers expectation. Some others have said there are
lots of factors that lead to customer satisfaction such as quality, price,
service etc.

Customer Loyalty
When customer keep on buying same brand again and again without
considering other brands then that customer can be said loyal towards
148 A Procedural Guide to Write a Research Paper

that brand. Researchers have proved that loyalty can be divided in


two factors that is repurchase and recommendation.

Literature Review
Selnes, Fred. (1993) investigated the effect of product quality on brand
reputation, satisfaction and loyalty. Brand reputation was found to
have a consistent and strong effect on loyalty in all four models tested.
The effect of customer satisfaction on loyalty appears to be contingent
on the context, and it was suggested that satisfaction only had a direct
effect on loyalty when customers are able to evaluate product quality
through their experience with the product or service. The different
results of the study were: Performance quality had significant effects
on customer satisfaction. Performance quality also affected brand
reputations. Also the effect of satisfaction on loyalty, when the effect
of brand reputation was controlled was found significant only in the
two models with the least ambiguity in intrinsic cues of the product,
that is the telephone and college models. Loyalty is clearly driven by
brand reputation in the companies examined.
Byoungho Jin, Jin Yong Park and Jiyoung Kim (2008) empirically tested
cross-cultural comparison between the USA (individualism, low
uncertainty avoidance, low context, and high-trust society) and Korea
(collectivism, high uncertainty avoidance, high context, and low-trust
society) in interrelationships among firm reputation, trust, satisfaction,
and loyalty in an online setting and the results revealed that, both
reputation-satisfaction and satisfaction-loyalty links were stronger in
Korea than in the USA. This affirms Heines (2001) view that East
Asian cultures seek an external frame of reference (such as firm
reputation) more than North American cultures do. A higher satisfaction-
loyalty link in Korea supports Liu et al. (2001) in that collectivism
cultures tend to stick to the same service provider once satisfied. These
findings lead to the conclusion that firm reputation contributes to
customer loyalty by increasing customer satisfaction and this effect is
stronger in Korea than in the USA.
Kare Skallerud (2011) showed that high levels of parent satisfaction
positively impacted parent-based school reputation, supporting a causal
clarification of the satisfaction-reputation relationship in an educational
context. School reputation can be used as a valuable means of assessing
the results of the schools multiple activities. School reputation may
even be considered as a stable and reliable indicator of schools ability
to satisfy parents expectations. In terms of consequent or outcome
variables, signaling theory predicts that parent-based school-reputation
has a positive impact on parents loyalty.
A Procedural Guide to Write a Research Paper 149

While Aydin and Ozer (2005) found a positive, but insignificant


relationship, Sen and Bhattacharya (2001) found that reputation can,
under certain conditions, decrease loyalty. In this study a direct and
positive relationship between specific dimensions of school reputation
and parents loyalty is found, extending previous research by showing
the differential effects that parent-based school reputation has on parental
loyalty. Li and Hung (2009) found a similar relationship between school
image and parents loyalty. However, they treated image as a one-
dimensional construct, whereas this study has identified a set of more
detailed relationships through our multi-dimensional conceptualization
of the reputation construct.
Nick Bontis, Lorne D. Booker and Alexander Serenko (2007) found a
strong relationship between perceived value and satisfaction, satisfaction
and loyalty. This study found a moderate relationship between
satisfaction and loyalty. Third, the relationship between customer
satisfaction and corporate reputation is significant. Similarly Anderson
and Sullivans (1993) also found that higher satisfaction leads to higher
reputation. Wang et al. (2003) concluded that service quality leads to
superior reputation in the banking industry in China.
A strong relationship between satisfaction and recommendation was
found by previous studies of Zeithaml et al., (1996), Athanassopoulos
et al., (2001), Wirtz and Chew, (2002), Ranaweera and Prabhu, (2003).
Both Andreassens (1994) and Ryan et al.s (1999) also found that
reputation is a strong driver of loyalty. Nick Bontis et al. (2007) found
that relationship between reputation and recommendation is also
significant supported by Rogerson (1983) who concluded in his study
that maintaining a high reputation increases the likelihood that
consumers will provide a recommendation.
Mine SENEL (2011) conducted a study on the basis of an empirical
research in the Turkish automotive sector, it was aimed, to establish
the casual relationship between three latent variables which have an
impact on purchase considerations and create the service supplier
power and customer satisfaction, and to reveal the effects of customer
satisfaction and brand reputation on customer loyalty.
The results indicated that the factors of price efficiency and value
perception the brand name products attribute to customers creating
supplier power in customer satisfaction which is one of the prerequisites
of creating brand loyalty are very significant. The convenience of
payment conditions the brand provides, discounts and campaign
opportunities, the convenience of the price for customers financial
conditions, provision of advantage in the second-hand market, feeling
that the vehicle the customer preferred increase his/her social status,
150 A Procedural Guide to Write a Research Paper

its reflection of personality, its suitability to the life style, and imposing
feature of the vehicle the customer preferred play an important role
in customer satisfaction. It was seen that product performance and
engine varieties, product varieties, guarantee services, width of service
network and availability of after market do not have an impact on the
creation of brand loyalty.
Selnes (1996) revealed that, brand reputation is one of the most significant
driver of brand loyalty, so it is efficient to pursue reputation for better
consumer reliability. Having a good reputation means that customers
are preferable for this product on attitude; hence, they will take action
to buy this products or in other words it can be said that brand reputation
contributes to brand loyalty by increasing willingness and belief so
that the attitude may change to behavior.
Ha (2009) expressed the view that satisfaction is a crucial factor of the
customer performance and attitude. The data was collected from different
countries by the researcher. Even though the cultures were different,
the results were same. Some people content that the condition of the
effect of satisfaction depends. A good example of given in this research
was that when checking product singly, satisfaction is more
indispensable. Conversely, its function becomes weaker in case of
applying brand alone (2008, Torres-Moraga, p.302).
To achieve customer brand loyalty can indeed become a reality with
several efforts. Customer care can be considered as a good point to
building customer loyalty. As Webb (1999, p.72) has indicated that
companies should think much about what the customers care. They
can know much about the customers by asking a series of open-mind
question. Not only that, but also keeping honest to customers may
retain customers trust.
Hoq, Mohammad Ziaul; Sultana, Nigar and Amin, Muslim (2010) found
that customer satisfaction affects loyalty, consistent with the past studies
(Bolton and Drew, 1991; Fornell, 1992; and Anderson and Sullivan,
1993) where researchers have found a positive correlation between
customer satisfaction and loyalty. Hart and Johnson (1999) have also
suggested that one of the conditions of true customer loyalty is total
satisfaction. Results also indicated that relationship between trust and
customer loyalty was significant. The findings also suggest that a good
image is an important aspect for banks in sustaining their market
position and creating a long-term relationship with customers. This
study was consistent with Flavian et al (2005) who found that banks
image played a major role in the development of customer trust in
conventional and online banking.
A Procedural Guide to Write a Research Paper 151

Audhesh K. Paswan, Nancy Spears and Gopala Ganesh (2007) results


indicated that consumers feel disappointment when they do not get
their preferred brand, and they take out this disappointment on the
alternate brand. In other words, brand buy-in influences evaluation of
the obtained brand. Further, the effect of non-attainment or attainment
of ones preferred brand on satisfaction and loyalty is stronger and
significant for brands with high brand loyalty. For brands with lower
levels of loyalty, the effect of brand attainment on satisfaction and
loyalty is not significant.
The results suggest that the feelings of disappointment or elation
associated with brand attainment or non-attainment is not strong enough
to overcome the effect due to experience quality associated with service
augmentation factors. This provides support for the existence of and
salience associated with experience quality in the services context such
as satisfaction with service provider culminating in loyalty. In addition,
existing literature also suggests that dissatisfaction leads to complaining
behavior and negative word-of-mouth (Oliver and Desarbo, 1989; Oliver
and Westbrook, 1993; Szymanski and Henard, 2001). This makes the
relationship between experience quality and loyalty even more crucial.

Objectives
1. To develop and standardize a questionnaire on Product
Performance, Brand reputation, Customer Satisfaction and
Customer Loyalty
2. To Identify relationship between Product Performance on Brand
Reputation and Customer Loyalty
3. To Identify relationship between Customer Satisfaction and Brand
Reputation
4. To Identify relationship between Product Performance, Brand
Reputation and Customer Satisfaction on Customer Loyalty
5. To open new areas for further research.

Research Methodology
The study was empirical in nature with survey method being used to
collect the data. The data was collected from Gwalior region only
where individual customers of Sony and Dell laptops were the sampling
element. Data was collected using non probability quota sampling in
which the sample was divided into two categories of gender and two
categories of brand i.e. Dell and Sony. The sample size was 150
respondents and self designed questionnaire on Likert type scale of 1
to 7 where 1 indicated minimum agreement and 7 indicated maximum
152 A Procedural Guide to Write a Research Paper

agreement was used to collect the data. The questionnaires were


standardized using reliability and factor analysis. MANCOVA and
regression was applied to find out the relationship between variables
and finally difference between categorical variables gender and brand
on each variable was evaluated using ANOVA.
Proposed Model for Testing

Brand Reputation

Product Performance Customer Loyalty

Customer Satisfaction

Results and Discussion


Table 1: Results of Reliability Analysis - Product Performance
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.942 .942 17

Reliability test is carried out on questionnaires to evaluate whether


the questionnaire is reliable for conducting the study or not. If the
value of reliability test is found to be more than 0.7 the questionnaire
is considered reliable. Here from the table it can be seen that the
value of Cronbachs Alpha reliability test is .942 which is more than
0.7 therefore the product performance questionnaire was considered
reliable for conducting the study.
Table 2: Showing Results of Kaiser-Meyer-Olkin (KMO) measure
of sampling adequacy
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .893
Bartlett's Test of Sphericity Approx. Chi-Square 1.909E3
Df 136
Sig. .000

Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy: The


Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy is an index
used to examine the appropriateness of factor analysis. High values
(between 0.5 and 1.0) indicate factor analysis is appropriate. Values
A Procedural Guide to Write a Research Paper 153

below 0.5 imply that factor analysis may not be appropriate. The Kaiser
- Meyer - Olkin Measure of Sampling Adequacy value for the product
performance measure was 0.893 indicating that the sample was adequate
to consider the data suitable for factor analysis.
Bartlett's test of Sphericity: Bartlett's test of sphericity is a test statistic
used to examine the hypothesis that the variables are uncorrelated in
the population. In other words, the population correlation matrix is
an identity matrix; each variable correlates perfectly with itself (r = 1)
but has no correlation with the other variables (r = 0). The Bartletts
Test of Sphericity was tested through Chi-Square value having a value
of 1.909E3, which is significant at 0% level of significance. Therefore,
the above hypothesis is rejected, indicating that the data was suitable
for factor analysis.

Factor Analysis Table


Principle component factor analysis with varimax rotation and Kaiser
Normalization was applied. The factor analysis converged on 3 factors
after five iterations. The details about the factors, the factor name,
variable number, variable convergence and their Eigen value is given
in the table given below.
Table 3: Showing Results of Exploratory Factor Analysis Product
Performance
Factor Name Eigen Value % of Variance Items Item
Loading
Operational 4.940 29.060 9 Strong return on investment .740
Features 10 Faster Speed .732
7 Attractive .724
4 Easy-to-use .723
5 Up-to-date .709
8 Innovative product features .691
6 Competitive .667
11 Longer Battery Backup .593
Physical Features 4.441 26.121 15 Weight/ Size of the product .787
14 Technologically superior .752
17 Disk Space .745
13 Good After Sales Service .731
16 Processor .680
12 Perfect screen resolution .652
Value for Money 2.461 14.479 2 Good quality .853
1 Low price .844
3 Convenience and Mobility .597
154 A Procedural Guide to Write a Research Paper

Table 4: Showing Results of Reliability Analysis - Brand


reputation
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.931 .931 11

Reliability test is carried out on questionnaires to evaluate whether


the questionnaire is reliable for conducting the study or not. If the
value of reliability test is found to be more than 0.7 the questionnaire
is considered reliable. Here from the table it can be seen that the
value of Cronbachs Alpha reliability test is .931 which is more than
0.7 therefore the brand reputation questionnaire was considered reliable
for conducting the study.
Table 5: Showing Results of Kaiser-Meyer-Olkin (KMO) measure
of sampling adequacy Brand Reputation
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .858
Bartlett's Test of Sphericity Approx. Chi-Square 1.220E3
Df 55
Sig. .000
Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy: The
Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy is an index
used to examine the appropriateness of factor analysis. High values
(between 0.5 and 1.0) indicate factor analysis is appropriate. Values
below 0.5 imply that factor analysis may not be appropriate. The Kaiser
- Meyer - Olkin Measure of Sampling Adequacy value for the brand
reputation measure was 0.858 indicating that the sample was adequate
to consider the data suitable for factor analysis.
Bartlett's test of Sphericity: Bartlett's test of sphericity is a test statistic
used to examine the hypothesis that the variables are uncorrelated in
the population. In other words, the population correlation matrix is
an identity matrix; each variable correlates perfectly with itself (r = 1)
but has no correlation with the other variables (r = 0). The Bartletts
Test of Sphericity was tested through Chi-Square value having a value
of 1.220E3, which is significant at 0% level of significance. Therefore,
the above hypothesis is rejected, indicating that the data was suitable
for factor analysis.

Factor Analysis Table


Principle component factor analysis with varimax rotation and Kaiser
Normalization was applied. The factor analysis converged on 2 factors
after three iterations. The details about the factors, the factor name,
A Procedural Guide to Write a Research Paper 155

variable number, variable convergence and their Eigen value is given


in the table given below.
Table 6: Showing Results of Exploratory Factor Analysis Brand
Reputation
Factor Name Eigen % of Items Item
Value Variance Loading
Popularity 4.134 37.585 2 Brand X is a recognized brand name in its product .840
category.
8 Brand X attracts and retains outstanding people .829
(employees, partners, etc.)
10 Brand X is highly reputed against the competing .782
brands .777
6 Brand X sets the standard for excellence in its field .752
4 One doesnt have to wait longer for the delivery of
brand X. .660
1 Use of Brand X gives me Social Recognition.
Uninterrupte 3.625 32.956 9 Brand X creates innovative solutions that make my .852
d Services life easier
11 Brand X is the leader in this product category .801
5 Service providers of brand X are available on the first .797
call itself.
7 Brand X has a winning strategy (superior economics) .743
3 Products of Brand X are always of high quality .689

Table 7: Showing Results of Reliability Analysis - Customer


Satisfaction
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.906 .904 9

Reliability test is carried out on questionnaires to evaluate whether


the questionnaire is reliable for conducting the study or not. If the
value of reliability test is found to be more than 0.7 the questionnaire
is considered reliable. Here from the table it can be seen that the
value of Cronbachs Alpha reliability test is .904 which is more than
0.7 therefore the consumer satisfaction questionnaire was considered
reliable for conducting the study.
Table 8: Showing Results of Kaiser-Meyer-Olkin (KMO) measure
of sampling adequacy Customer satisfaction
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .823
Bartlett's Test of Sphericity Approx. Chi-Square 951.290
Df 36
Sig. .000
156 A Procedural Guide to Write a Research Paper

Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy: The


Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy is an index
used to examine the appropriateness of factor analysis. High values
(between 0.5 and 1.0) indicate factor analysis is appropriate. Values
below 0.5 imply that factor analysis may not be appropriate. The Kaiser
- Meyer - Olkin Measure of Sampling Adequacy value for the customer
satisfaction measure was 0.823 indicating that the sample was adequate
to consider the data suitable for factor analysis.
Bartlett's test of Sphericity: Bartlett's test of sphericity is a test statistic
used to examine the hypothesis that the variables are uncorrelated in
the population. In other words, the population correlation matrix is
an identity matrix; each variable correlates perfectly with itself (r = 1)
but has no correlation with the other variables (r = 0). The Bartletts
Test of Sphericity was tested through Chi-Square value having a value
of 951.290, which is significant at 0% level of significance. Therefore,
the above hypothesis is rejected, indicating that the data was suitable
for factor analysis.

Factor Analysis Table


Principle component factor analysis with varimax rotation and Kaiser
Normalization was applied. The factor analysis converged on 2 factors
after three iterations. The details about the factors, the factor name,
variable number, variable convergence and their Eigen value is given
in the table given below.
Table 9: Showing Results of Exploratory Factor Analysis
Customer Satisfaction
Factor Name Eigen % of Items Item
Value Variance Loading
Genuine 4.494 49.932 5[X] brand name is constant in satisfying my .859
needs .859
7 [X] brand name would make any effort to satisfy .840
me
9[X] brand name would compensate me in some .775
way for the problem with the [product] .759
4 [X] is a brand name that never disappoints me .755
8 I could rely on [X] brand name to solve the
problem .688
6 [X] brand name would be honest and sincere in
addressing my concerns
3 I feel confidence in [X] brand name
Meets Basic 2.018 22.418 1 With [X] brand name I obtain what I look for in .889
Requirements a [product]
2[X] is a brand name that meets my expectations .846
A Procedural Guide to Write a Research Paper 157

Table 10: Showing Results of Reliability Analysis - Customer


Loyalty
Reliability Statistics
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.926 .927 7

Reliability test is carried out on questionnaires to evaluate whether


the questionnaire is reliable for conducting the study or not. If the
value of reliability test is found to be more than 0.7 the questionnaire
is considered reliable. Here from the table it can be seen that the
value of Cronbachs Alpha reliability test is .926 which is more than
0.7 therefore the customer loyalty questionnaire was considered reliable
for conducting the study.
Table 11: Showing Results of Kaiser-Meyer-Olkin (KMO) measure
of sampling adequacy Customer Loyalty
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .896
Bartlett's Test of Sphericity Approx. Chi-Square 753.899
Df 21
Sig. .000

Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy: The


Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy is an index
used to examine the appropriateness of factor analysis. High values
(between 0.5 and 1.0) indicate factor analysis is appropriate. Values
below 0.5 imply that factor analysis may not be appropriate. The Kaiser
- Meyer - Olkin Measure of Sampling Adequacy value for the customer
loyalty measure was 0.896 indicating that the sample was adequate to
consider the data suitable for factor analysis.
Bartlett's test of Sphericity: Bartlett's test of sphericity is a test statistic
used to examine the hypothesis that the variables are uncorrelated in
the population. In other words, the population correlation matrix is
an identity matrix; each variable correlates perfectly with itself (r = 1)
but has no correlation with the other variables (r = 0). The Bartletts
Test of Sphericity was tested through Chi-Square value having a value
of 753.899, which is significant at 0% level of significance. Therefore,
the above hypothesis is rejected, indicating that the data was suitable
for factor analysis.

Factor Analysis
Principle component factor analysis with varimax rotation and Kaiser
Normalization was applied. The factor analysis converged on 1 factor.
Therefore the name of the name of the variable will remain as it is.
158 A Procedural Guide to Write a Research Paper

Multiple Analysis of Covariance (MANCOVA)


Multiple analysis of covariance was applied taking Product Performance
as independent variable and Brand Reputation and Customer Satisfaction
as dependent variables.
Table 12: Showing Results of MANCOVA
Tests of Between-Subjects Effects
Source Dependent Variable Type III Sum Df Mean F Sig.
of Squares Square
Corrected Model Brand Reputation 3035.348a 1 3035.348 37.640 .000
Customer Satisfaction 4729.898b 1 4729.898 170.180 .000
Intercept Brand Reputation 2591.488 1 2591.488 32.136 .000
Customer Satisfaction 272.396 1 272.396 9.801 .002
Product Brand Reputation 3035.348 1 3035.348 37.640 .000
Performance Customer Satisfaction 4729.898 1 4729.898 170.180 .000
Error Brand Reputation 11934.945 148 80.642
Customer Satisfaction 4113.435 148 27.793
Total Brand Reputation 456050.000 150
Customer Satisfaction 292246.000 150
Corrected Total Brand Reputation 14970.293 149
Customer Satisfaction 8843.333 149
a. R Squared = .203 (Adjusted R Squared = .197)
b. R Squared = .535 (Adjusted R Squared = .532)

The corrected model in above table indicates that product performance


as independent variable has significant impact on brand reputation as
well as customer satisfaction as indicated by F test value 37.640 and
170.180 significant at .000 level of significance. The intercept value
indicates that the intersectional effect of independent variable on
dependent variable is also significant. As indicated by F test value
32.136 and 9.801 significant at .000 and .002 level of significance. Product
performance also has a significant impact on brand reputation and
customer satisfaction taken individually as indicated by F test value
37.640 and 170.180 significant at .000 level of significance. The effect
of Product performance on brand reputation is 19.7% and on customer
satisfaction 53.2% as indicated by adjusted r square values from the
table i.e. 0.197 and 0.532.

Regression
Linear regression was applied between Customer Satisfaction as
independent variable and Brand Reputation as dependent variable.
A Procedural Guide to Write a Research Paper 159

Table 13: Showing Results of Simple Linear Regression


Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .581a .338 .333 8.18437
a. Predictors: (Constant), Customer Satisfaction

ANOVA
Model Sum of Squares Df Mean Square F Sig.
1 Regression 5056.663 1 5056.663 75.491 .000a
Residual 9913.631 148 66.984
Total 14970.293 149
a. Predictors: (Constant), Customer Satisfaction
b. Dependent Variable: Brand Reputation

Coefficients
Model Unstandardized Standardized t Sig. Collinearity
Coefficients Coefficients Statistics
B Std. Error Beta Tolerance VIF
1 (Constant) 21.358 3.842 5.560 .000
Customer Satisfaction .756 .087 .581 8.689 .000 1.000 1.000
a. Dependent Variable: Brand Reputation

Y= a + bx
Y= 21.358 + 0.756x
Where,
X= Customer Satisfaction (independent variable)
Y= Brand reputation (dependent variable)
The model having customer satisfaction as independent variable and
brand reputation as dependent variable has good fit as indicated by
F-test value which is 75.491 significant at .000 level of significance.
The result of regression table from the coefficient table indicates that
customer satisfaction has significant cause and effect relationship with
brand reputation having beta value 0.581 tested through t-test having
t-value 8.689 significant at 0.000 level of significance The model summary
table indicates that customer satisfaction has 33.8% effect on brand
reputation since the r square value of table is 0.338, therefore the null
hypothesis is rejected
Linear regressions were also applied between product performance,
brand reputation and customer satisfaction as independent variables
and customer loyalty as dependent variable. The result of the same
are indicated in the table below:
160 A Procedural Guide to Write a Research Paper

Table 14: Showing Results of Multiple Regression


Variables F Sig Beta T Sig R Square
Product Performance and customer loyalty 173.012 .000 .734 13.153 .000 53.9
Brand Reputation and Customer Loyalty 52.720 .000 .512 7.261 .000 26.3
Customer Satisfaction and Customer Loyalty 276.656 .000 .807 16.633 .000 65.1
Y= a + bx
Y= 4.542 + .351x
Where,
X= Product Performance (independent variable)
Y= Customer Loyalty (dependent variable)
The model having product performance as independent variable and
customer loyalty as dependent variable has good fit as indicated by
F-test value which is 173.012 significant at 0.000 level of significance.
The result of regression table from the coefficient table indicates that
product performance has significant cause and effect relationship with
customer loyalty having beta value 0.734 tested through t-test having
t-value 13.153 significant at 0.000 level of significance The model
summary table indicates that product performance has 53.9% effect
on customer loyalty since the r square value from the table is 0.539,
therefore the null hypothesis is rejected
Y= a + bx
Y= 16.077 + .331x
Where,
X= Brand Reputation (independent variable)
Y= Customer Loyalty (dependent variable)
The model having brand reputation as independent variable and
customer loyalty as dependent variable has good fit as indicated by
F-test value which is 52.720 significant at 0.000 level of significance.
The result of regression table from the coefficient table indicates that
brand reputation has significant cause and effect relationship with
customer loyalty having beta value 0.512 tested through t-test having
t-value 7.261 significant at 0.000 level of significance The model summary
table indicates that brand reputation has 26.3% effect on customer
loyalty since the r square value from the table is 0.263, therefore the
null hypothesis is rejected
Y= a + bx
Y= 4.557 + .678x
A Procedural Guide to Write a Research Paper 161

Where,
X= Customer Satisfaction (independent variable)
Y= Customer Loyalty (dependent variable)
The model having customer satisfaction as independent variable and
customer loyalty as dependent variable has good fit as indicated by
F-test value which is 276.656 significant at 0.000 level of significance.
The result of regression table from the coefficient table indicates that
customer satisfaction has significant cause and effect relationship with
customer loyalty having beta value 0.807 tested through t-test having
t-value 16.633 significant at 0.000 level of significance The model
summary table indicates that customer satisfaction has 65.1% effect
on customer loyalty since the r square value from the table is 0.651,
therefore the null hypothesis is rejected
Diagram 1: Showing Final Model after Testing

Brand Reputation 26.3


19.7

53.9
Product Performance Customer Loyalty
33.8

53.2 Customer Satisfaction 65.1

Multiple Analyses of Variance (MANOVA)


Multiple Analyses Of Variance was applied using gender and brand
as independent variables and product performance, brand reputation,
customer satisfaction and customer loyalty as independent variable.
The table indicates the test results:
Table 15: Showing Results of Levenes Test for
Equality of Error Variances
Levene's Test of Equality of Error Variances
F df1 df2 Sig.
Brand Reputation 22.177 3 146 .000
Customer Satisfaction 4.873 3 146 .003
Customer Loyalty 4.495 3 146 .005
Product Performance 5.174 3 146 .002
Tests the null hypothesis that the error variance of the dependent variable is equal across
groups.
a. Design: Intercept + Gender + Brand + Gender * Brand
162 A Procedural Guide to Write a Research Paper

Table 16: Showing Results of MANOVA using Gender and Brand


Name as category Variables
Tests of Between-Subjects Effects
Source Dependent Variable Type III Sum of df Mean Square F Sig.
Squares
Corrected Model Brand Reputation 5001.084a 3 1667.028 24.414 .000
Customer Satisfaction 5591.470b 3 1863.823 83.681 .000
Customer Loyalty 3802.312c 3 1267.437 76.192 .000
Product Performance 13874.580d 3 4624.860 50.592 .000
Intercept Brand Reputation 438603.028 1 438603.028 6.423E3 .000
Customer Satisfaction 281188.267 1 281188.267 1.262E4 .000
Customer Loyalty 171954.935 1 171954.935 1.034E4 .000
Product Performance 1048135.850 1 1048135.850 1.147E4 .000
Gender Brand Reputation 2903.016 1 2903.016 42.515 .000
Customer Satisfaction 2675.203 1 2675.203 120.109 .000
Customer Loyalty 1672.010 1 1672.010 100.513 .000
Product Performance 6095.523 1 6095.523 66.680 .000
Brand Brand Reputation 1121.149 1 1121.149 16.419 .000
Customer Satisfaction 1344.003 1 1344.003 60.342 .000
Customer Loyalty 839.050 1 839.050 50.439 .000
Product Performance 3254.723 1 3254.723 35.604 .000
Gender * Brand Brand Reputation 1115.028 1 1115.028 16.330 .000
Customer Satisfaction 1717.761 1 1717.761 77.123 .000
Customer Loyalty 1382.135 1 1382.135 83.087 .000
Product Performance 4866.250 1 4866.250 53.233 .000
Error Brand Reputation 9969.209 146 68.282
Customer Satisfaction 3251.863 146 22.273
Customer Loyalty 2428.682 146 16.635
Product Performance 13346.494 146 91.414
Total Brand Reputation 456050.000 150
Customer Satisfaction 292246.000 150
Customer Loyalty 179699.000 150
Product Performance 1082767.000 150
Corrected Total Brand Reputation 14970.293 149
Customer Satisfaction 8843.333 149
Customer Loyalty 6230.993 149
Product Performance 27221.073 149
a. R Squared = .334 (Adjusted R Squared = .320)
b. R Squared = .632 (Adjusted R Squared = .625)
c. R Squared = .610 (Adjusted R Squared = .602)
d. R Squared = .510 (Adjusted R Squared = .500)

The model having gender and brand as independent variables and


product performance, brand reputation, customer satisfaction and
customer loyalty as dependent variable was having a good fit as
indicated by F test values from the Levenes test of equality of variance
table i.e 22.177, 4.873, 4.495 and 5.174 significant at .000, .003, .005
and .002 levels of significance. The corrected model indicated that
both gender and brand together had significant effect on dependent
A Procedural Guide to Write a Research Paper 163

variables tested through F test values 24.414, 83.681, 76.192 and 50.592
significant at .000 levels of significance and intercept values of F test
6.423E3, 1.262E4, 1.034E4 and 1.147E4 at .000 level of significance
indicated a significant intersectional effect of gender and brand on
dependent variables.
Gender individually was having a strong impact on product
performance, brand reputation, customer satisfaction and customer
loyalty as indicated by F test values from the table 42.515, 120.109,
100.513 and 66.680 significant at 0.000 level of significance. The result
indicate that both males and females responses towards product
performance, brand reputation, customer satisfaction and customer
loyalty were significantly different. Also when individual impact of
brand was evaluated on product performance, brand reputation,
customer satisfaction and customer loyalty the impact was found
significant as indicated by F test values from the table 16.419, 60.342,
50.439 and 35.604 significant at 0.000 level of significance. The results
indicate that both Sony and Dell buyers responses towards product
performance, brand reputation, customer satisfaction and customer
loyalty were significantly different. At last combined effect of gender
and brand was evaluated on product performance, brand reputation,
customer satisfaction and customer loyalty and the result indicated a
strong impact of independent variables on dependent variables as
indicated by F test values 16.330, 77.123, 83.087 and 53.233 significant
at .000 level of significance. The results indicate that there was a
significant difference between the responses towards both brands Sony
and Dell by both the genders on product performance, brand reputation,
customer satisfaction and customer loyalty.

Conclusion
Self designed questionnaires were standardized using reliability and
factor analysis in SPSS. All the questionnaires were found to be reliable
and therefore suitable for data collection for the current study. Multiple
analysis of covariance was applied to find out the effect of product
performance on brand reputation and customer satisfaction and it
was found that product performance effects both brand reputation as
well as product performance. Which means organizations should build
their product designs in such a manner that they perform better which
will result into increase in reputation of the brand among customers
as well as increase their satisfaction.
Further regression was applied to identify the effect of customer
satisfaction on brand reputation and the results indicated that customer
satisfaction has significant cause and effect relationship with brand
164 A Procedural Guide to Write a Research Paper

reputation which means is customers are highly satisfied with a


companys product the reputation of the organization increases. Multiple
Regression was also applied to identify the effect of product performance,
brand reputation and customer satisfaction on customer loyalty and
the results indicated a significant cause and effect relationship between
the dependent and independent variables which means increase in
product performance, brand reputation and customer satisfaction will
increase loyalty towards and organizations product. Finally Multiple
analysis of variance was applied to find out differences in gender and
brand in case of product performance, brand reputation, customer
satisfaction and customer loyalty and the results indicated significant
difference between the both males and females responses in case of
product performance, brand reputation, customer satisfaction and
customer loyalty. Which means both males and females evaluate laptop
products differently. Significant differences were also found in product
performance, brand reputation, customer satisfaction and customer
loyalty of both the laptop brands taken in the study i.e. Dell and
Sony. Also it was found that product performance, brand reputation,
customer satisfaction and customer loyalty of Dell was higher than
Sony.

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A Procedural Guide to Write a Research Paper 167

Predictors of Organizational
Citizenship Behaviour: An Empirical
Study

Dr. Gaurav Jaiswal, Dr. Ravindra Pathak,


Manjari Agrawal & Umesh Sharma

ABSTRACT
Organizational citizenship behavior being important for
organizations to perform well has always been one of the
most important tasks of HR heads and therefore, factors that
contribute to OCB need to be identified and strengthened.
The current study aims at evaluating the predictive ability of
the factors that contribute in developing OCB. The multiple
regressions applied on Organizational Commitment and Job
Involvement as independent variables (predictors) and OCB
as dependent variable (predicted) identified a strong positive
relationship as indicated by adjusted r2 value of 0.254. The
study builds a strong case to develop Organizational
commitment and Job Involvement if the organization wishes
to develop strong OCB.

Introduction
Organizational Citizenship Behavior (hereafter, OCB) has been studied
since the late 1970s. Over the past three decades, interest in these
behaviors has increased substantially. Organizational behavior has been
linked to overall organizational effectiveness, thus these types of
employee behaviors have important consequences in the workplace.
168 A Procedural Guide to Write a Research Paper

Organ (1988) defines OCB as individual behavior that is discretionary,


not directly or explicitly recognized by the formal reward system,
and that in the aggregate promotes the effective functioning of the
organization. According to Katz and Kahn (1978), effective
organizational functioning requires employees to not only perform
their prescribed role, but also to engage in behaviors that go beyond
these formal obligations. This aspect of performance is consistent with
Organs (1988) conceptualizations of OCBs. Organizational citizenship
behaviors (or OCBs) are discretionary workplace behaviors that exceed
ones basic job requirements. They are often described as behaviors
that go above and beyond the call of duty.
An organizational citizenship behavior is a result of various
organizational variables and positively correlated with these variables.
Job involvement has been defined as an individuals psychological
identification or commitment to his / her job (Kanungo, 1982). It is the
degree to which one is cognitively preoccupied with, engaged in,
and concerned with ones present job (Paullay et al. 1994). As such
individuals who display high involvement in their jobs consider their
work to be a very important part of their lives and whether or not
they feel good about themselves is closely related to how they perform
on their jobs.
In other words for highly involved individuals performing well on
the job is important for their self esteem (Lodahl & Kejner, 1965).
Because of this people who are high in job involvement genuinely
care for and are concerned about their work (Kanungo, 1982). The
construct of job involvement is somewhat similar to organizational
commitment in that they are both concerned with an employees
identification with the work experience. However the constructs differ
in that job involvement is more closely associated with identification
with ones immediate work activities whereas organizational
commitment refers to ones attachment to the organization (Brown,
1996). It is possible for example to be very involved in a specific job
but not be committed to the organization or vice versa (Blau & Boal,
1987). Aamir Ali Chughtai (2008) posited the positive relationship of
job involvement on the organizational citizenship behavior.
Although job involvement is one of the most basic job-related attitudes
in organizational research, meta-analyses revealed that there was no
relationship, or at most a weak relationship, between job involvement
and job performance (Brown 1996). These results are understandable
because task performance is usually determined not by how employees
feel about their jobs, but by their skill and work-process technology
(Organ 1977). It has been reasonably inferred that employees job
A Procedural Guide to Write a Research Paper 169

involvement influences their more discretionary extra-role behaviors


like OCB. Some research has focused on this relationship.
Organizational commitment, which was defined as emotional
attachment to, identification with, and involvement in the organization
(Meyer, Goffin & Jackson 1989), is considered to be the most important
form that has an impact on employees behavior within their
organizations. Employees tend to accomplish more for their
organizations in a positive manner when they have a strong emotional
attachment to their organizations; therefore, their high affective
organizational commitment is expected to have a positive effect on
their work behaviors, including organizational citizenship behavior.
Many Asian studies have revealed a positive relationship between
affective organizational commitment and OCB (Chen & Francesco 2003;
Chughtai 2008).

Literature Review
Perez, Hamburger & Shterental (2009) this articles findings indicated
that the perceived environmental commitment of certified firms was
higher than that of non certified firms and was higher among employees
that perceived the EMS as more highly integrated in the firm. Perceptions
of the standard's integration were also found to be positively correlated
with personal environmental commitment. The results also indicated
that the increase in the firm's environmental commitment was positively
associated with employees' organizational citizenship behavior within
certified firms.
Aamir Ali Chughtai (2008) examined the impact of job involvement
on the self-report measures of in role job performance and organizational
citizenship behavior. The results of his study revealed that job
involvement was positively correlated with both in-role job performances.
In addition to this it was found that organizational commitment partially
mediated the job involvement performance relationship. Furthermore
the findings of this research uncovered that job involvement exerted
a stronger impact on OCB than on in-role performance.
Gardner, Moynihan and Wright (2008) investigated the role of collective
affective commitment in mediating the relationship between skill,
motivation, and empowerment. Findings from 1748 employees and 20
top HR managers in 93 different workgroups suggest collective affective
commitment partially mediates the negative relationship between
motivation and empowerment enhancing practices and aggregate
turnover.
Lobel (2008) said that Ranging from strict disclosure prohibitions to
generous monetary incentives for informants, the legal approaches to
170 A Procedural Guide to Write a Research Paper

conflicts between organizational loyalty and legal compliance reveal a


deep ambivalence about the role of individual dissent in group settings.
The analysis of mediating the conflicting demands of citizenship and
organizational citizenship extends more broadly to legal debates on
family immunities in criminal procedure, civic disobedience and military
hierarchies, and professional roles in legal ethics, bringing analytical
clarity to dilemmas about following rules while maintaining independent
judgment.
Hafer and Martin (2006) in their studies said Apathetic employees
constitute one of four employee categories in Blau and Boals (1987)
model. Six sensitivity analyses were applied to create positive and
negative changes in the measurement scores on job involvement and
affective commitment of 553 employees to determine which variable
produced the greatest Apathetic employee mobility. While changing
both variables simultaneously created the greatest movement, on an
individual basis, changing affective commitment produced greater
Apathetic employee mobility than changing job involvement.
Baker, Hunt, and Andrews (2005) said that in the present study, a
model of antecedents and outcomes of ethical behavior in work
organizations was developed and tested. Antecedents included are
corporate ethical values, organizational justice, and organizational
commitment. The outcome of organizational citizenship behaviors was
also examined. Data were gathered from 489 members of a regional
chapter of the National Association of Purchasing Managers (NAPM).
Structural equation modeling was used to test the model. Results
indicated the data fit the model well. Implications for managers and
directions for future research are discussed.
Pandey and Moynihan (2004) studied a sample of state government
health and human service managers to develop and test a model of
work motivation. They examined the effect of individual attributes,
job characteristics, and organizational variables on three aspects of
work motivation: job satisfaction, organizational commitment, and job
involvement. They found that managers have varying degrees of
influence over these different aspects of work motivation, with greatest
influence over job satisfaction and least influence over job involvement.
A number of variables are important for work motivation, including
public service motivation, advancement opportunities, role clarity, job
routineness, and group culture.
Chen, Tsui and Farh (2002) in this research, the researchers investigated
the relationship between loyalty to supervisor and employees in-role
and extra-role performance in comparison with that of organizational
commitment in the Peoples Republic of China. Two studies were
A Procedural Guide to Write a Research Paper 171

conducted. In the first study, a five-dimension loyalty to supervisor


scale was developed and validated. In the second study, the relationships
between loyalty to supervisor, organizational commitment and employee
performance were examined. Results indicated that loyalty to supervisor
was more strongly associated with both in-role and extra-role
performance than organizational commitment. The findings are discussed
in terms of their implications for future research and management
practices in cross-cultural settings.
Lagomarsino and Cordona (2003) developed and tested a model that
related leadership behavior, organizational commitment and OCB. They
tested the model using structural equation using a sample of 16 doctors
from Uruguay. The result showed that transactional leadership behavior
increases followers growth commitment, and decrease their growth
commitment where as transformational leadership behavior increase
followers growth commitment and also there normative commitment.
Organizational commitment mediates in the in the relationship behavior
leadership and OCB.
Cardona, Lawrence and Bentler (2003) the study is based upon the
effect of factors such as perception of job characteristics on OCB. They
explained that the effect can be explained on new exchange relationship
call work exchange they developed a theory for the situational
antecedent of OCB that includes economic, work and social exchange
relationship.
Cardona and Espejo (2002) compared the rating for three dimension
of organizational citizenship behavior provided by managers (self rating),
their subordinates and there collogues (superior and pears) in the
spinach branch of multinational company. Using hierarchical
confirmatory factor analysis they found that, rating from different
sources provides different information. Subordinate and self rating is
generally high then colleagues rating.
Drummond & Chell (2001) found that the Employees with high levels
of job involvement identify with and care about their jobs, whereas,
employees with high levels of affective commitment feel positively
about their organization and wish to remain a member in it. Cohen
and Vigoda (2000) some of the benefits of OCBs that can accrue to an
organization include: (a) improved co-worker and managerial
productivity, (b) superior efficiency in resource use and allocation, (c)
reduced maintenance expenses, and (d) improved organizational
attractiveness for high-quality new recruits.
Blau & Boal, (1987); Griffeth et. al. (1999) corporate citizens are modeled
by having low job involvement, but high affective commitment. They
identify strongly with the organization and its goals, but because of
172 A Procedural Guide to Write a Research Paper

low job involvement, they do not readily identify with their job or see
it as a factor in their self-identity. Behaviorally, they provide continuity
and cohesion and are sometimes seen as employees who cooperate
spontaneously to achieve organizational objectives that go beyond role
specification.
Organ (1988, 1990) identified a number of conceptually distinct
dimensions of citizenship behavior, including altruism, courtesy,
cheerleading, peacekeeping, sportsmanship, civic virtue, and
conscientiousness. Farh, podsakoff and organ (1990) said that research
has documented an emparical relationship between satisfaction and
organization citizenship behavior. In this paper they argues the case
that why leader behavior and task characterstics might account for
such a correlation. Hierarchial regression analysis of data from a survey
of 195 Taiwanese ministry of communication workers indicates that
task scope acoounts for more unique varience in both tha aultruism
and compliance dimensions of OCB than those satisfaction, where as
leader fairness composed of three leader behavior accounts for unique
variance only with respect to Altruism.
Borman & Motowidlo (1993); Smith et al. (1983) said that citizenship
behaviors may enhance organizational performance because they
"lubricate" the social machinery of the organization, reduce friction,
and increase efficiency.
Van Dyne et al. (2000) revealed not only a positive relationship between
job involvement and OCB, but also showed that this relationship was
fully mediated by organizational-based self-efficacy (OBSE) in the
relationship between collectivism and OCB.
Van Dyne and Ang (1998) demonstrated the positive effect of affective
organizational commitment on the helping measure, using a Singaporean
sample. A similar positive relationship between affective organizational
commitment and OCB was found by research that used samples from
the following western Asian countries: Israel (Cohen 2006), and India
(Kwantes 2003).
Recently, Cohen (2006), Dimitriades (2007), Chughtai (2008), and Chen
and Chiu (2009) also empirically analyzed the effect of job involvement
on OCB using data from employees in various countries. Although
only Cohen (2006) found no significant effect of job involvement on
OCB, other researchers demonstrated a significant positive influence
of job involvement on some dimensions of OCB. Dimitriades (2007)
found that the service climate of frontline Greek employees had a
positive effect on their customer-oriented OCB, and this effect was
partially mediated by their job involvement. Chughtai (2008) found
that job involvement had a positive effect on OCB even after controlling
A Procedural Guide to Write a Research Paper 173

for some demographic factors. Finally, Chen and Chiu (2009) found
that job involvement mediated the effect of job characteristics on OCB.

Objectives
To measure the Job Involvement, Organisational Commitment
and Organizational Citizenship Behaviour.
To evaluate the underlying factors of Job Involvement,
Organisational Commitment and Organizational Citizenship
Behaviour.
To evaluate the relationship between Job Involvement,
Organisational Commitment and Organizational Citizenship
Behaviour.
To open new vistas.

Hypothesis
H01= There is no impact of Organizational commitment and Job
involvement on organizational citizenship behavior.

Research Methodology
The study was empirical in nature determining the impact of job
involvement and organisational commitment on organizational
citizenship behavior. The employees from the service sector were
considered as the sample population. The sampling element in this
research was the individual executives from service organizations.
The sample size was 150 respondents. Non probability purposive
sampling technique was used to select the respondents. The data was
collected from the individuals of service sector units through
questionnaires for the study. Reliability, Factor analysis and Regression
Test were applied for data analysis.

Result and Discussion


The reliability of all three measure viz. Organizational commitment,
job involvement and organizational citizenship behavior was computed
by using SPSS software. Cronbachs alpha reliability coefficient was
computed to calculate reliability of all items in the questionnaire.
Table 1: Cronbachs Alpha Reliability Statistics
Measures Cronbachs Alpha value
Organizational commitment .811
job involvement .954
organizational citizenship behavior .850
174 A Procedural Guide to Write a Research Paper

It is shown in the table that all reliability values are greater than the
standard value that of 0.7, hence it is considered that reliability of all
measure is adequate.

Factor Analysis
Principle component factor analyses with varimax rotation were applied
to identify the underlying factors of Organizational commitment, job
involvement and organizational citizenship behavior.

Factor Analysis of Organizational Commitment


The Kaiser- Meyer-Olkin Measure of Sampling Adequacy Value was
0.634 indicating that the sample was adequate to consider the data as
normally distributed. The Bartletts Test of Sphericity was tested through
Chi-Square value 1932.711 significant at 0% level of significance
indicating that the data has low sphericity and is therefore suitable
for factor analysis.
Table 2: KMO and Bartlett's Test Table
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .634
Bartlett's Test of Sphericity Approx. Chi-Square 1932.711
Df 276
Sig. .000

The Principal Component Factor analysis converged of Organizational


Commitment in to the following seven factors.
Factor Name Total Eigen Value
Negative commitment 5.148
Uncertainty 3.966
Organizational attachment 2.241
Organizational belongingness 1.679
Ethics 1.306
Values 1.222
Organizational Association 1.138

Factor Analysis of Job Involvement


The Kaiser- Meyer-Olkin Measure of Sampling Adequacy Value was
0.915 indicating that the sample was adequate to consider the data as
normally distributed. The Bartletts Test of Sphericity was tested through
Chi-Square value 1481.442 significant at 0% level of significance
indicating that the data has low sphericity and is therefore suitable
for factor analysis.
A Procedural Guide to Write a Research Paper 175

Table 3: KMO and Bartlett's Test Table


KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .915
Bartlett's Test of Sphericity Approx. Chi-Square 1481.442
Df 45
Sig. .000
The Principal Component Factor analysis converged Job Involvement
in to the following factor.
Factor Name Total Eigen Value
Job Involvement 7.093

Factor Analysis of Organizational Citizenship Behavior


The Kaiser- Meyer-Olkin Measure of Sampling Adequacy Value was
0.823 indicating that the sample was adequate to consider the data as
normally distributed. The Bartletts Test of Sphericity was tested through
Chi-Square value 798.566 significant at 0% level of significance indicating
that the data has low sphericity and is therefore suitable for factor
analysis.
Table 4: KMO and Bartlett's Test Table
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .823
Bartlett's Test of Sphericity Approx. Chi-Square 798.566
Df 66
Sig. .000

The Principal Component Factor analysis converged on the following


factors.
Factor Name Total Eigen Value
Employee co-operation 5.092
Interpersonal relationship 1.598
Organizational concern 1.076

Regression Test
The regression was calculated by taking the total of Organizational
commitment, job involvement and organizational citizenship
behavior by using SPSS software. In this Organizational commitment,
and job involvement were taken as the independent variables and
organizational citizenship behavior was taken as dependent variables.
Therefore regression was calculated by taking independent variable
and dependent variable. Model explain the 24.4% variance of
independent variables on dependent variable which also statistically
significant. Hence, null hypothesis rejected and validate the
176 A Procedural Guide to Write a Research Paper

organizational commitment and job involvement have impact on


organizational citizenship behavior.

H0 = There is no impact of organizational commitment and job


involvement on organizational citizenship behavior.
Model Summary
Model R R Square Adjusted Std. Error of Change Statistics
R Square the Estimate R Square F df1 df2 Sig. F
Change Change Change
Dimension 1 .504 .254 .244 6.39112 .254 25.151 2 148 .000
a. Predictors: (Constant), JI, OC
b. Dependent Variable: OCB

Conclusion
It is concluded from above study that the organizational commitment
and job involvement have positive impact on organizational citizenship
behavior. To know the underlying factor that may emerge during the
study Factor Analysis was applied on the sample. The factor analysis
resulted in seven factor of Organizational commitment, one factor of
job involvement and three factor of OCB. Regression used to identify
the impact of independent variable on dependent variable. In regression
the impact of independent variable on dependent variable is positive
and significant as the value of significance was less than 0.05.As it
was described earlier, OCB research has not received much attention
so far, either academically or practically, probably because of the
ambiguous boundary between a formal job and extra-job behaviors
like OCB. However, there are some shortcomings to this study that
should be resolved in future research. The outcomes of this research
study point out the value of focusing on employees individual behavior
towards their jobs and their organization as the predictors of OCB.

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A Procedural Guide to Write a Research Paper 179

10

Psychological Climate and Students


Attitude towards Learning: a Study
of Higher Education

Dr. Garima Mathur, Monika Mittal,


Vishnudyutya Kumar Punj & Pushpamala Pathak

ABSTRACT
Psychological climate is the perception of individual towards
organizational environment. There are number of factors that make
up an organizational environment. These factors included support,
recognition, innovation, autonomy, cohesiveness, and pressure (Koys
and De Cotiis, 1991). These factors help to decide the climate of an
organization which is again subjective to organization to organization.
The present study was conducted to assess psychological climate in
educational institutions where by a cause and effect relationship was
tried to establish. Results reveal that psychological climate has significant
influence on student attitude towards learning.
INTRODUCTION
Building an environment where individual student can be motivated
to learn and understand more has become a research issue for most of
the B-schools these days. Though it depends on the individual also
that is what types of attitude student posses and what he perceives
about his surroundings. The climate of an organization has been
considered as an important factor to contribute towards its success.
They also linked climate with performance (De Vries, 2001). Psychological
climate is important because it is the individual employees perception
180 A Procedural Guide to Write a Research Paper

and evaluations of the work environment, rather than the actual


environment that mediates attitudinal and behavioural response (James
and Jones, 1974; James et al., 1978; Johns et al., 1992).
The climate not only improves performance but it also helps to develop
right attitude or more precisely it helps to develop right attitude towards
learning in case of students. Psychological Climate guides behaviours
with the aim at meeting organizational objectives (James & Jones,
1974; James & Mclntyre, 1996; Jones & James, 1979; Schneider & Reichers,
1983). The psychological climate is perceptions held by the individuals
about the work situation. According to Brown & Leigh (1996)
Psychological climate is how employees perceive their organizational
environment. In the words of Schneider & Rentsch (1988) Psychological
climate pertains to how organizational members perceive and make
sense of organizational policies, practices and procedures in
psychologically meaningful terms.
James and Jones (1974) summarize the psychological climate to be a
set of summary or global perceptions held by individuals about their
organizational environment. The psychological climate is a summary
feeling about actual events based upon the interaction between actual
events and the perception of those events.
Psychological climate is not a new concept. Its root can be traced to
Lewins (1936) work when he used the term life space which explained
individuals motivational and affective reactions to change. Psychological
climate perceptions enable an individual to interpret events, predict
possible outcomes, and gauge the appropriateness of their subsequent
actions (Jones & James, 1979).
Learning has been a subject of attraction for behavioral researchers
for more than a century. In 1900 Ivan Pavlov the Russian Physiologist
conducted some experiments, since than one or the other research has
been conducted on learning. In psychology learning has been defined
as the modification of behavior through practice, training, or experience.
People show different attitudes towards learning. Attitude indicates
the favorableness towards something. So it can rightly be quoted:

Without learning, the wise become foolish; by learning, the foolish


become wise. Learn as if you could never have enough of learning,
as if you might miss something.
-Confucius (Chinese Philosopher)
With the increasing pace of change, emphasis on learning is increasing.
As management guru Peter Drucker said work is becoming increasingly
knowledge based which actually requires capabilities for ongoing
Learning. Individuals as well as organizations are required to become
A Procedural Guide to Write a Research Paper 181

more reflexive and need to learn in order to keep up with or ahead of


the bewildered pace of change. In higher education students take active
participation in learning process. They are not passive receptors.
Whatever they receive from the environment they form their own
meaning on the basis on their past learning.
Liao (2004) defined learning attitudes as the positive or negative
evaluations and susceptibilities of learners towards learning activities
or learning context trend. Many articles considered that the connotations
of learning attitudes include: attitude towards the schools lessons,
attitude to the schools learning environment, attitude towards the
courses, attitude towards the teachers, attitude towards classmates,
attitude towards educational value, attitude towards ones own self,
attitude towards studying habits, lesson exercises, initiative learning,
attentive learning and so on (Huang, 1990; Shih, 2001; Lin, 2004 &
Liao, 2004).

Literature Review
Psychological climate has been studied by number of researchers. They
reported its relationship with many variables such as satisfaction,
commitment, performance and stress (Ostroff et al., 2003). Few associated
psychological climate with organizational climate (Schulte, Ostroff and
Kinicki, 2006).
Researches conducted on learning reveal that major contextual influences
play important role in either the enhancement or retardation of learning.
Major contextual influences include the students environment, family,
and historical and cultural contexts which influence their learning
(Dasen, 1975; Ortinero, 2000; Papalia, Olds and Feldman, 2004). Ortinero
(2000) particularly highlights the role of family and environment in
students acquisition of rational capacities and skills. Moreover the
role of school climate was also researched to study its positive and
negative effects on various aspects of students such as self esteem
(Hoge et. al, 1990), student self-concept (Cairns, 1987; Heal, 1978;
Reynolds, et al., 1980; Rutter, et al, 1979) student absenteeism (deJung
& Duckworth, 1986; Purkey & Smith, 1983; Reid, 1983; Rumberger,
1987; Sommmer, 1985) as well as being predictive of rate of student
suspension (Wu, Pink, Crain, & Moles, 1982).
Gal & Garfield (1997) suggested that student attitudes are very important
because they may affect the extent to which students will develop
useful thinking skills and apply what they have learned outside the
classroom in daily life. It is important to assess student attitudes and
beliefs regarding learning for three major reasons: (1) their role in
influencing the teaching and learning process, (2) their role in influencing
182 A Procedural Guide to Write a Research Paper

student behavior in learning, and (3): their roles in influencing whether


or not students choose to pursue further learning programmes. Thus,
it is incumbent upon learning educators to know their students attitudes
and beliefs towards learning before, during and after taking a learning
course (Gal et al, 1997).
Ruffell, Mason and Allen (1998) were concerned that attitudes may
not be sufficiently well defined conceptually or sufficiently stable to
be reliable but influenced by social and emotional context and personal
construction of these. Attitudes are commonly distinguished from
beliefs in that attitudes are moderate in duration, intensity and stability
and have an emotional content, while beliefs become stable and are
not easily changed (McLeod, 1992; Mayes, 1998; Pajares, 1992).
The research and professional literature suggests that the new
approaches may enhance learning through cognitive, meta-cognitive
and affective channels. Breckler (1984) and Jones and Clarke (1994),
proposed that affect, behaviour, and cognition are distinguishable, yet
interrelated components of attitude.
Educators have known that learner attitudes and responses are
interconnected and that a positive correlation exists between the two.
Burnss study supports this with the statement that attitudes are
evaluated beliefs which predispose the individual to respond in a
preferential way (Burns, 1997, p. 456). Educators therefore have had
the dynamic task of improving the curriculum, its delivery and resources
in an attempt to fuel positive learner attitudes knowing that, in turn,
it would improve learning outcomes.
Attitude can alter every aspect of a person's life, including their
education. Student attitudes on learning determine their ability and
willingness to learn. If negative attitudes are not altered, a student is
unlikely to continue his education beyond what is required. Changing
students' negative attitudes towards learning is a process that involves
determining the factors driving the attitude and using this information
to bring about change.
In addition, researcher had observed based on the review of literature
availability of research on psychological climate and learning attitude
of students. There are many studies on school climate and learning.
But, hardly able to discover any study related to the psychological
climate and student attitude toward learning in Higher Education.
The aim of present study is to study the relationship of psychological
climate and student attitude toward higher Education. The objectives
of the studies are:-
A Procedural Guide to Write a Research Paper 183

Objectives
To standardize measures of psychological climate and attitude
towards learning in Indian context.
To identify factors underlying psychological climate and attitude
towards learning.
To measure the impact of psychological climate on attitude
towards learning in higher education.
On the basis of available literature and study objectives a hypothesis
was formulated indicating:
Ho: There is no relationship between psychological climate and students
attitude towards learning in higher education.

Research Methodology
Design: The study used multi-mixed method design. The study was
cross-sectional in nature where it primarily aims at establishing
relationship between variables. Multiple methods help to give complete
analysis of the research as almost all the aspects can be covered through
it (Silverman, 2000). The study topic was decided on the basis of
exploration by asking students informally about the contributors towards
the development of learning attitude. On the basis of that discussion
Climate was considered as a contributory variable. The further research
was conducted to establish cause and affect relationship.
Population and Sample: One hundred and forty five (145) graduate
and post graduate students of management colleges were selected for
the study through purposive judgmental sampling. There were 70
female and 75 male students. All of them are within the age range of
18 to 24 years old.

Measures
Psychological Climate: In this study in order to define students attitudes
towards learning and its relation with different variables, Koys & De
Cotiis (1991) scale on psychological climate was administered to all
students, (N= 145). There were originally 40 items with eight dimensions
in the Psychological Climate scale. For final analysis only 32 items
were considered as few items such as My faculty is not likely to give
me a greasy meal and The only time I hear about my performance
is when I screw up were removed from the study on the basis of
results of (Martin and Bush, 2006). The original items of the questionnaire
were in context of supervisor which was changed to match the context
of educational institutes. The term supervisor has been replaced with
184 A Procedural Guide to Write a Research Paper

faculty in most cases. Data was collected on a Likert type scale where
1 stands for minimum agreement and 7 stands for maximum agreement.
Students Attitude towards Learning: Self designed scale on Students
Attitude towards learning prepared on the basis of Language learning
attitudes questionnaire available at the website of SIL. The items
containing term language was either replaced or omitted to ensure
its applicability in present study. The responses were again collected
on seven point Likert type scale.

Results & Discussion


Standardization of Measures
Consistency, Reliability and Validity: The questionnaires were
standardized for the purpose of this study through various measures.
Internal Consistency of all the items in the questionnaire was checked
through item to total correlation. Since all the items were found to be
correlated in both the scales so no item was dropped. Reliability test
was carried out by using SPSS software and the Cronbach (1951) alpha
value was found to be 0.945 for psychological climate and 0.920 for
students attitude towards learning. Face validity was ensured as
questionnaires were checked by panel of judges and found to be suitable
for present study.
Factor Analysis: In addition to above three measures factor analysis
was also used to ensure construct validity and identification of
underlying factors. The thirty two statements of psychological climate
and twenty items of students attitude towards learning were subjected
to principal component analysis using varimax rotation. KMO test of
sampling adequacy values for psychological climate (0.904) and students
attitude (0.887) indicated that the sample was good enough to go for
further analysis. Seven factors were emerged in case of psychological
climate named Support, Cohesion, Innovation, Autonomy (Koys &
DeCotiis, 1991), Pressure, Busy and Unbiased where as for students
attitude it resulted in five factors named Interest in Learning, Analytical
Learning, Self Confidence, Afraid of Learning and Thought Process
(See Annexure 1 & 2).

Regression
For the sample of 145 students regression using SPSS 17 was computed
to test the hypothesis. The data was first checked for normality. In the
first phase the value of K-S test was not found to be significant. Outliers
were then identified and removed. Further analysis resulted in normal
data K-S statistic was significant at 0.200.
A Procedural Guide to Write a Research Paper 185

Totals of both the variables were subjected for Linear regression. R-


square indicates 52 percent variance in the dependent variable. ANOVA
table summarizes that over all model fits well as F value (151.592) is
significant at 0%. Table of coefficient further show t-value is significant
indicating the influence of psychological climate on students attitude
towards learning.
Learning Attitude= 31.382+ Psychological Climate* 0.721
Coefficients
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
1 (Constant) 31.382 5.727 5.480 .000
Psycho Climate .443 .036 .721 12.312 .000
a. Dependent Variable: Learning Attitude
Psychological climate factors included trust, support, fairness, autonomy
on the part of faculty members. These factors if handled well, contributes
significantly towards learning. It is not the teaching alone that helps
individuals to learn there are numerous other things also. The
environment or surrounding influences learning and what an individual
thinks about his/her environment also affects his learning. The results
of factor analysis indicated that students placed faculty support at
most important factor. The statements such as I can count on my
teachers to help me when I need it , My teachers have a lot of personal
integrity, My teachers back me up and let me learn from my mistakes
clearly emphasize the level of influence faculty members have on
students learning. Second factor Cohesion indicates that students put
team efforts at second most important level, after that Innovation,
Autonomy, Pressure, Busy etc. factors were emerged. For attitude
towards learning factor Interest in learning has been found as most
dominant factor where as Analytical capacity containing questions
such as I want to have everything worked out in my own head before
I answer showed that individuals capacity also contributes a lot towards
learning. After that self confidence, afraid of learning and thought
process were also found as important factors.
The students in management colleges have different environment from
traditional colleges. They are supposed to interact with their teachers
during their study. Since number of activities such as presentations,
event management etc. includes student-faculty interaction, it becomes
necessary for the students to get support of faculty. Similarly if the
students have autonomy in their work and they are recognized for
their innovative ideas, they can be helped to develop an attitude where
they can learn better.
186 A Procedural Guide to Write a Research Paper

Conclusion
The result reveals that Psychological climate has a significantly positive
impact on students attitude towards learning. Various factors associated
with psychological climate such as support, innovation, autonomy,
pressure and recognition contributes towards learning. Management
colleges must take care of these factors in order to facilitate better
learning from students point of view.

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Table showing results of factor analysis of Students Attitude
towards Learning
Factor Eigen Variable
Name Value Convergence Loadings
3.614 14. I try to answer questions the teacher asks .766
Interest in 9. I keep trying different ideas to learn new things. .708
Learning 20. Learning gives good results. .640
12.I know I can handle difficulties while learning .620
8. If I make mistakes, I work until I have corrected them. .619
13.I get a sense of satisfaction when I solve problems while .615
learning
3.081 19. Learning requires lot of concentration .773
Analytical 10. I want to have everything worked out in my own head .760
Learning before I answer.
11. I am quick to learn new techniques of learning. .718
16. I dont like the idea of relying on others to learn new things .483
17. Peoples culture and value system affect learning .482
Self 2.358 4. My learning aptitude is probably pretty high. .820
Confidence 1. I think Im a pretty good learner. .774
2. Learning is enjoyable .542
2.240 5. I think that I could learn pretty much any subject I really put .749
Afraid of my mind to, given the right circumstances.
Learning 6. I worry a lot about making mistakes .648
3. Learning may be important to my goals, but I dont expect it .643
to be much fun.
7. Im afraid people will laugh at me if I dont say things right. .528
Thought 1.955 18. I dont have any idea about how to go about learning new .867
Process things
15. I find it easy to put myself in other peoples shoes and .677
imagine how they feel while handling difficulties in learning.
A Procedural Guide to Write a Research Paper 189

Table showing results of factor analysis of Psychological Climate


Factor Eigen Variable Convergence
Name Value Loadings
3. I can count on my teachers to help me when I need it. .738
Support 37.784 1. My teachers have a lot of personal integrity. .682
4. My teachers are easy to talk to about study-related .666
problems. .604
5. My teachers back me up and let me learn from my mistakes. .560
9. My teachers follow through on her/his commitments. .537
17. My teachers know what my strengths are and let me know. .502
14. I make most of the decisions that affect the way I study. .485
16. My teachers are quick to recognize good performance. .427
10. I set the performance standards for my studies.
Cohesion 7.198 There is a lot of team spirit in the institute. .681
In this institute, people tend to get along with each other. .676
My teachers encourage me to develop my ideas. .623
In this institute, people take a personal interest in one another. .611
In this institute, people tend to have a lot in common. .593
My teachers like me to try new ways of study. .573
My teachers talks up new ways of doing things. .697
Innovation 4.566 My teachers encourage me to find new ways around old .623
problems. .531
I organize my study as I see best. .485
In this institute, people pitch in to help each other out. .485
I can count on a pat on the back when I perform well.
My teachers are not likely to give me bad advice. .688
Autonomy 4.251 I schedule my own study activities. .641
My teachers are interested in me getting ahead in the institute. .622
I determine my own study procedures. .498
My teachers are behind me 100%. .467
I have too much study work and too little time to do it in. .770
Pressure 3.928 My teachers use me as an example of what to do. .715
The only time I hear about my performance is when I screw .580
up. .578
My teachers encourage me to improve on his/her methods. .542
Most consider the working conditions in this organization
enjoyable and relaxing.
Busy 3.674 I feel like I never have a day off. .703
Unbiased 3.216 My teachers do not play favorites. .768
190 A Procedural Guide to Write a Research Paper

11

Estimation and Stability of Beta:


A Case of Indian Stock Market

Dr. Navita Nathani, Jaspreet Kaur, Dr. P. A Ratna, Sandeep


Shrivastava, Prof. Puja Jain, Manoj Agarwal & Nitin Paharia

ABSTRACT
For choosing an optimal portfolio the assessment of risk and
return analysis is must. The systematic risk Beta cannot be
avoided by diversification. Risk has two parts systematic and
unsystematic. Theoretically defined that beta is linearly related
to returns and Beta is totally based on market movements.
Beta estimation is central to many financial decisions such as
those relating to stock selection, capital budgeting, and
performance evaluation. It is significant for both practitioners
and academicians. One important aspect of this simple market
model is the assumption of symmetry that propounds the
estimated beta is valid for all the market conditions. The present
study is an attempt to estimate beta and also checked the
stability of beta in the study period.
Key Words: Systematic and unsystematic risk, CAPM,

Introduction
The Capital Asset Pricing Model (CAPM) developed by Sharpe (1964),
Lintner (1965) and Mossin (1966) has been the universally accepted
model since its initiation. It continues to be extensively used in practical
portfolio management and in academic research. The essential
implication is that the contribution of an asset to the variance of the
A Procedural Guide to Write a Research Paper 191

market portfolio - the assets systematic risk, or beta risk - is the proper
measure of the assets risk and the only systematic determinant of the
assets return. Sharpe (1963) had classified risks as systematic risk and
unsystematic risk. The elements of systematic risk are external to the
firm. The external factors are changes in economic environment, interest
rate changes, inflation, etc. On the other hand, internal factors are the
sources of unsystematic risk. Unsystematic risks are categorized as
business risk or financial risk specific to the firm. The systematic risk
related with the general market movement cannot be totally eradicated
through diversification. The unsystematic risk, which is confine to a
firm, can be eliminated or reduced to a considerable extent by choosing
an appropriate portfolio of securities.
Some of the sources of unsystematic risk are consumer preferences,
worker strikes and management competitiveness. These factors are
independent of the factors effecting stock market. Hence, systematic
risk will influence all the securities in the market, whereas unsystematic
risk is security specific.
Theoretically defined, beta is the systematic relationship between the
return on the portfolio and the return on the market. It refers to the
slope in a linear relationship fitted to data on the rate of return on an
investment and the rate of return of the market (or market index).
Beta is a technique of telling how volatile a stock is compared with
the rest of the market. That means, in a booming market condition,
aggressive portfolio will achieve much better than the market
performance. While in a bearish market environment the fall of
aggressive portfolios will also be much prominent.
On the other hand, when the return on portfolio is less than the market
return, beta measure is less than one and those portfolios are treated
as defensive. In case of defensive portfolios, when the market is rising,
the performances associated with it will be less than the market portfolio.
However, when the market moves down, the fall in the defensive
portfolios would also be less than the market portfolio. In those situations
where, the return of the portfolio accurately matches the return of the
market, beta is equal to one that rarely happens in real life situations.
Practitioners use beta in financial decision making to estimate cost of
capital. Beta is also a key variable in the academic research; for example
it is used for testing asset pricing models and market efficiency. Given
the importance of this variable a pertinent question for both practitioners
and academics is how to obtain an efficient estimation.

Literature Review
Chawla (2001) investigated the stability of beta using monthly data
192 A Procedural Guide to Write a Research Paper

on returns for the period April 1996 to March 2000. The stability of
beta was tested using two alternative econometric methods, including
time variable in the regression and dummy variables for the slope
coefficient. Both the methods reject the stability of beta in majority of
cases.
Haim Shalit Shlomo Yitzhaki (2002) presented evidence that Ordinary
Least Squares estimators of beta coefficients of major firms and portfolios
were highly sensitive to observations of extremes in market index
returns. This sensitivity is rooted in the inconsistency of the quadratic
loss function in financial theory. By introducing considerations of risk
aversion into the estimation procedure using alternative estimators
derived from Gini measures of variability.
Haddad (2007) examine the degree of return volatility persistence and
time-varying nature of systematic risk of two Egyptian stock portfolios.
He used the Schwert and Sequin (1990) market model to study the
relationship between market capitalization and time varying beta for
a sample of investable Egyptian portfolios during the period January,
2001 to June, 2004. According to Haddad, the small stocks portfolio
exhibits difference in volatility persistence and time variability. The
study also suggests that the volatility persistence of each portfolio
and its systematic risk are significantly positively related. Because of
that, the systematic risks of different portfolios tend to move in a
different direction during the periods of increasing market volatility.
Tran and Huy (2009), explained that the financial crisis 20072009, the
Viet Nam stock market, in general, has certain unexpected movements
and the Viet Nam construction industry, in detail, has to reevaluate
the risk level. First, he used proper traditional model to estimate equity
beta and asset beta of three groups of listed companies in Viet Nam
construction industry and found out that the values of beta during
2007-2009 acceptable, excluding a few cases. Second, through comparison
among three different groups, he found that there is not large disperse
in beta values in these construction firms.
Fabozzi and Francis (1977) considered the differential effect of bull
and bear market conditions for 700 individual securities listed in NYSE.
Using a Dual Beta Market Model (DBM), they established that estimated
betas of most of the securities are stable in both the market conditions.
They experienced it with three different set of bull and bear market
definitions and concluded with the same results for all these definitions.
Teppo Martikainen, Jukka Perttunen (1991) demonstrated in their study
the sensitiveness of the size effect in stock returns when used systematic
risk. They took that on a thin European security market, i.e. in the
Finnish stock market, the case is just the opposite.
A Procedural Guide to Write a Research Paper 193

Elroy Dimson (1979) reviewed the reviewed the problems introduced


by infrequent trading, and presented a method for measuring beta
when share price data suffer from this problem. The method was
used with monthly returns for a one-in-three random sample of all
U.K. Stock Exchange shares from 1955 to 1974. Most of the bias in
conventional beta estimates was eliminated when the proposed
estimators were used in their place.
Siegel (1995) noted the improvement of a beta based on forward-
looking option data, and proceeds to propose the creation of a new
derivative, called an exchange option, which would allow for the
calculation of what he refers to as implicit betas. Unfortunately the
exchange options discussed by Siegel (1995) are not yet traded, and
therefore his method cannot be applied in practice to compute forward-
looking betas.
Bildersee and Roberts (1981) showed that during the periods interest
rates fluctuate, betas would fluctuate systematically. The change would
be in tune with their value relative to the market and the pattern of
changes in interest rate.
Gupta & Sehgal (1999) examined the relationship between systematic
risk and accounting variables for the period April 1984 to March 1993.
There is a confirmation of relationship in the expected direction between
systematic risk and variables such as debt-equity ratio, current ratio
and net sales. The association between systematic risk and variables
like profitability, payout ratio, earning growth and earnings volatility
measures is not in accordance with expected sign. The relationship
was investigated using correlation analysis in the study.
Mishra(2010), seen in his paper that market volatility is crucial in an
emerging capital market like India. So he has examined the volatility
of Indian capital market in the aftermath of global market slowdown.
By using GARCH class models, the paper investigates the nature and
characteristics of stock return volatility in the capital market of India.
The results provide the evidence of time varying stock return volatility
over the sample period spanning from January 1991 to August 2009.
It is further found that the effect of bad news is relatively greater in
causing market volatility in India.
Nishat, Irfan(2004) through their paper have attempted to determine
the impact of dividend policy on stock price risk in Pakistan. A sample
of 160 listed companies in Karachi Stock Exchange is examined for a
period from 1981 to 2000. The empirical estimation is based on a
cross-sectional regression analysis of the relationship between stock
price volatility and dividend policy after controlling for firm size,
earning volatility, leverage and asset growth. In overall period the
194 A Procedural Guide to Write a Research Paper

size and leverage have positive and significant impact on stock price
volatility. The size effect is negative during pre reform period (1981-
1990) but positive during reform period. The earnings volatility impact
is negative and significant only during reform period. Although the
results are not robust enough as in the case of developed markets but
are consistent with the behavior of emerging markets.
A study conducted by Obaidullah (1994) used monthly stock price
data for a period of sixteen years (1976-91) for a sample of thirty
stocks. The results from the exercise, however, do not lend themselves
to any supportive or contradictory interpretation. The coefficients of
?2p were, in general, not statistically significant. This is in conformity
with the CAPM. However, in the multiple regression model, the
coefficients of ?p also in most cases become statistically insignificant
which is contrary to what the CAPM predicts. Hence he suggested
that CAPM as a description of asset pricing in Indian markets does
not seem to rest on solid grounds.
R.N. Agarwal (1991) looked into dividends and stock prices in the
commercial vehicle sector in India. He covered the period between1966-
67 to 1986-87. The regression result suggested that current dividend
behavior was explained by the current level of net profits and the two
past dividends. The adaptive expectation hypothesis was supported
by the result.

Objectives
To identify market phase timing, based on bullish and bearish phases.
To calculate monthly stock returns and market returns.
To compute beta values for each stock in different market phases.
To test the stability of beta using dummy variable

Research Methodology
The study was descriptive and analytical in nature. The total population
of the study included the companies listed in NSE stock exchange
and sampling technique was non probability purposive as study included
only NSE-50 companies listed in the time frame from the year 2005-
2010. Individual company was the sampling element. The data for the
study was taken from NSE-50 during Jan2005- Dec2010. These 24 stocks
were selected in such a way that the continuous price data is available
for the study period. The adjusted closing prices of 24 stocks were
collected for the last 5 years period. Data collected from secondary
sources i.e. through website of NSE India.
A Procedural Guide to Write a Research Paper 195

Tools for Data Analysis


Mathematical formulae for calculating stock returns and market returns
were applied.
Market phases were identified by creating the cumulative index.
Sharpe Index model equation was used to compute Beta coefficient
For measuring the stability of beta using time as a variable and separate
explanatory variable Dummy variable regression was applied
The data for the study was taken from NSE-50 during Jan2005- Dec2010.
These 24 stocks were selected in such a way that the continuous price
data is available for the study period. The adjusted closing prices of
24 stocks were collected for the last 5 years period.
The average closing price for each month of 24 stocks was computed
for the period jan2005-dec2010. Therefore we have 78 average monthly
prices for each of the 24 stocks included in the research. The following
method has been used to compute the monthly return on each of the
stock.
P i,t P i,t-1
ri,t =
P i, t-1
Where
P i,t = Average price of stock i in the month t
Pi,t-1= Average price of stock i in the month t-1
r i,t= Return of ith stock in the month t.
The monthly market returns were also computed in the same way.
After the monthly stock and market returns the five different market
phases were identified to compute beta separately. The five market
phases were identified, by creating a cumulative wealth index from
the market returns.
Phase Timing Type of Market phase
Phase I 2005 Bullish
Phase II 2006 Bearish
Phase III 2007 Bearish
Phase IV 2008 Bearish
Phase V 2009 Bearish
Phase V 2010 Bullish

Different Market Phases


After identification of these market phases the beta values for each
stocks were computed by applying the following formula B = COVim/
sd2. As the objective of the paper was to test the stability of beta in
different market phases, the hypothesis has been set accordingly.
196 A Procedural Guide to Write a Research Paper

Null hypothesis (H0) -The beta is stable over the market phases. The
hypothesis has been tested with the help of using time as a variable
and using dummy variables to measure the change of slope over the
period.

Stability of Beta Using Dummy Variable


In case of testing the beta stability, dummy variables were used in
Sharpes equation for the slope coefficients. As six market phases
discovered, there were 5 dummy variables used in the new equation.
The new regression equation is reframed as follows:
ri,t = 0 + 1* mt + 2*D1* mt + 3*D2* mt + 4*D3* mt + 5*D4*mt +
5*D5*mt +e
Where:
D1 = 1 for phase 1 (Jan 2005 to Dec 2005) data
= 0 otherwise.
D2 = 1 for phase II (Jan 2006 to Dec 2006) data
= 0 otherwise
D3 = 1 for phase III (Jan 2007 to Dec 2007) data
= 0 otherwise
D4 = 1 for phase IV (Jan 2008 to Dec 2008) data
= 0 otherwise
D5 = 1 for phase V (Jan 2009 to Dec 2009) data
= 0 otherwise
r i,t = return on stock I in period t
mt = return on market in period t
e = error term and
0, 1, 2, 3, 4, 5 & 6 = coefficients to be estimated.
As there were 6 market phases, we used 5 dummy variables in the
above equation. The use of 6th dummy variable would lead to a dummy
variable trap. We treat the 6th phase viz. Jan-10 to Dec-10 as the base
period. The significance of 2, 3, 4 and 5 will tell us whether the
beta is stable over the time periods
or not. For the beta to be truly stable over the entire period, all coefficients
like, 2, 3, 4, 5 and 6 should be statistically insignificant and
where we need to accept the null hypothesis. The logic is that if 2,
3, 4, 5 and 6 are significant, thus implying that beta was not
stable.
A Procedural Guide to Write a Research Paper 197

The linear Dummy variable regression was applied between independent


and dependent variable. Market returns in different phases were taken
as independent variables and stock return was taken as dependent
variable. The adjusted r 2 value was found to be 0.629 indicating that
the independent and dependent variables taken together explain 62.9
% of the total variance in the dependent variable. The goodness of fit
for the model is tested by using ANOVA and the F-value (22.223,
which was significant at 0.000 level of significance, indicates that the
model has high fit.
The contribution of individual independent variable is evaluated through
computation of and is tested for significance using t-test.
Table 2: Showing Beta Values
Phases Beta Values P-values
Phase I .783 .000
Phase II -.957 .000
Phase III -.581 .000
Phase IV -.374 .007
Phase V -.269 .000
Phase VI -.505 .000

In the given table all the betas were significant implied that the betas
were not stable in the study period. The results were also supported
by the recessionary pressures on stock indices during the time frame,
which also proved the presence of semi strong form of efficient market
hypothesis. The results appeared to be based on the statement that
market does not discount everything.

Implications and Suggestions


This study is intended to be a useful contribution to the academicians
to understand the relationship between dividend policy and shareholders
wealth. This study helps the academicians for their further research.
References of the study can also be helpful for the academicians for
their research.
With the help of this research, company can analyze performance of
them and help them in taking the decisions accordingly. It also throws
light on the degree of efficiency in terms of the investment made by
the investment managers.
It must be considered that the present study covers only 43 companies
that are listed in the NSE for the last 5 years.
The study has taken five financial years 2005-2010 spanning 78 months.
The time period of the study can be increased also. Since huge volume
of data to be analyzed, the research included only a few selected
198 A Procedural Guide to Write a Research Paper

companies that ensure data availability for all the five year period
ensuring randomness. The number of companies can be increased.
Only NSE 50 companies were analyzed. For wide study, different
indices could also be included.

Conclusion
The beta of a stock is considered as a very important parameter in
asset pricing. It is used to estimate the expected return of a stock with
respect to its market return. Beta is estimated by the regression method.
This study is aimed at testing the beta stability for India. Further the
stability of beta is of great concern as it is a vital tool for almost all
investment decisions and plays a significant role in the modern portfolio
theory. The estimation of beta for individual securities using a simple
market model has been widely evaluated as well as criticized in the
finance literature. Many studies questioned this assumption and
examined the relationship between beta and market return in different
market conditions, but the results are mixed and inconclusive.
This study has tested empirically the existence and stability of beta in
given time frame and concluded that the betas were unstable during
the study period.

REFERENCES
Agarwal, R.N., (1991). Dividends and Stock Prices: A Case Study of Commercial
Vehicle Sector in India 1966-67 to 1986-87. Indian Journal of Finance and
Research, January, Vol., No.1, pp.61-67
Bildersee, John S and Robert, Gorden S. (1981). Beta Instability when Interest
Rate Level Changes. Journal of Financial Quantitative Analysis, September,
XVI(3).
Chawla D (2001). Testing Stability of Beta in the Indian Stock Market. Decision,
Vol. 28, No 2, pp.1-22.
Dinh Tran Ngoc Huy (2009). Estimating Beta of Vietnam Listed Construction
Company Groups during the Financial Crisis. Asian Journal of Management
Research, working paper series http://www.ipublishing.co.in/ajmrvol1no1/
EIJMRS1037.pdf, ISSN 2229-3795
Elroy Dimson, (1979). Risk measurement when shares are subject to infrequent
trading. Journal of Financial Economics, 7(2), 197226
Fabozzi, F. J. and Francis, J. C. (1977). Stability tests for alphas and betas over
bull and bear market conditions. Journal of Finance, 32, 10939.
Gupta, O. p. AND Sehgal, Sanjay (1999). Relationship between Accounting
Variables and Systematic Risk: The Indian Experience. Indian Accounting
Review, 3(1)
Haddad M M (2007). An Intertemporal Test of the Beta Stationarity: The Case
of Egypt. Middle East Business and Economic Review, Vol. 19, No. 1, Egypt.
A Procedural Guide to Write a Research Paper 199

Haim Shalit Shlomo Yitzhaki (2002). Estimating Beta. Review of Quantitative


Finance and Accounting, 18: 95118
Mishra P K, (2010). Weak Form Market Efficiency: Evidence From Emerging
And Developed World. The Journal of Commerce, 3(2), 26-34
Nishat, M. & Irfan, C. M. (2004). Dividend Policy and Stock Price Volatility
in Pakistan. PIDE-19th Annual General Meeting and Conference 13-15 Jiune,
2004
Siegel, A., (1995). Measuring Systematic Risk Using Implicit Beta. Management
Science, 41, 124-128.
Teppo Martikainen, Jukka Perttunen, (1991). Return intervals, systematic risk
estimates and firm size: Empirical evidence from a thin security market.
Economics Letters, 36(3), 311315.
200 A Procedural Guide to Write a Research Paper

12

An Evaluation of Customer
Perception of Service Quality in
Internet Banking

Aashish Mehra, Rahul Pratap Singh Kaurav & Ruturaj Baber

ABSTRACT
Online banking or Internet banking has made banking much
easier for its customers in the recent past. Online banking
can provide a reliable service to the customers which make
them happy. Online service quality is one of the key determinants
of the success of online banking. This exploratory study revealed
some important findings about online service quality. First,
the study identified eight key online banking service quality
dimensions as perceived by internet banking customers:
Promptness/ Accuracy; Website Appeal/Efficiency; Empathy
and Responsiveness; Reliability and Ease of use; Error-free
records; Easy Access and Knowledge; Personal Attention;
Security; Convenience; and Wide range. Four out of the total
eight, notably: Promptness/ Accuracy; Website Appeal/Efficiency,
Empathy and Responsiveness; Reliability and Ease of use,
had significant impacts on both customers perceived overall
service quality and their satisfaction. The study discovered
that the two variables namely frequency of use and income
group of internet banking users had significant effect on their
perception of internet banking service quality. Important
managerial implications and recommendations are also presented.
A Procedural Guide to Write a Research Paper 201

Introduction
Service Quality
Service quality is the caliber of service that is expected from a company
or business. Service quality is commonly noted as a critical prerequisite
and determinant of competitiveness for establishing and sustaining
satisfying relationships with customers. Previous studies suggest that
service quality is an important indicator of customer satisfaction (Spreng
and Machoy, 1996). Attention to service quality can lead an organization
different from other organizations and gain a lasting competitive
advantage (Morre, 1987).
Dimension of service quality: Many researchers have struggled with
the issue of how to measure service quality. Perhaps the most widely
used measure is based on a set of five dimensions which have been
consistently ranked by customers to be most important for service.
Parasuraman, et al. (1988) created a measurement instrument called
SERVQUAL, which consisted of ten dimensions but in 1988 the
instrument was pruned and dimensions were reduced to five dimensions;
tangibles, reliability, responsiveness, assurance and empathy.
These five dimensions were defined by Parasuraman, et al., (1988) as
follows:-
1. Tangibles: Appearance of physical facilities, equipment, personnel,
and communication materials.
2. Reliability: Ability to perform the promised service dependably
and accurately.
3. Responsiveness: Willingness to help customers and provide
prompt service.
4. Assurance: Knowledge and courtesy of employees and their ability
to convey trust and confidence.
5. Empathy: Caring, individualized attention the firm provides its
customers.

Internet Banking
An Internet bank exists only on the Internet, the global network of
computer networks without any "brick and mortar" branch offices. By
eliminating the overhead expenses of conventional banks, Internet banks
theoretically can pay consumers higher interest rates on savings than
the national average. Banks use the Internet to deliver information
about financial services, replace transactions done in branch offices,
which eliminates the need to build new branches, and to service
customers more efficiently. Internet banking sites offer the prospect of
202 A Procedural Guide to Write a Research Paper

more convenient ways to manage personal finances, and such services


as paying bills on-line, finding mortgage or auto loans, applying for
credit cards, and locating the nearest ATM or branch office. Some
Internet banks also offer 24-hour telephone support, so customers can
discuss their needs with bank service representatives directly

Internet Banking Service Quality


The service quality definition reflects well on Internet banking services.
Internet banking is one-to-one service where every individual bank
client happens to interact with a bank web presentation. If a bank
considers Internet as long term means to achieve the bank strategic
goals, it necessarily has to focus on providing high quality services
over Internet and thus maximizing positive quality assuring the
customers satisfaction. However, definitions found in the literature
are similar on focusing on services provided over the internet. In that
sense, the terms and internet services are often used in literature to
denote the same concept. Regarding internet service quality, it has
been defined by Zeithaml (2002, p. 135) as the extent to which a Web
site facilitates the efficient and effective shopping, purchasing and
delivery customer-oriented perception of internet service quality and
not on the quality of the corresponding web interface. Firms aiming
to excel by developing and delivering services of high quality through
the internet face new challenges, which are not evident in traditional
brick-and-mortar provided services. The lack of physical tangibles and
human interaction in the internet services case. Therefore the quality
of the website becomes the moment of truth that customers greater
control over the service delivery process when the transaction is executed
on the internet, due to the absence of front-line personnel.

Review of Literature
Service quality
The definition of service quality is based on customer led quality
definition where quality is defined satisfying customer's requirements'
(Deming, Juran, Feigenbaum, Ishikawa) relying on the ability of the
organisation to determine customers' requirements and then meet these
requirements.
Khan, Mahapatra and Kumar (2009) stated that customers are satisfied
with quality of service on four dimensions such as reliability, accessibility,
privacy/security, responsiveness and fulfillment, but least satisfied with
the user-friendliness dimension.
Ponirin, Scott and Heidt (2010) studied based that service quality for
were tested for validity and reliability. These determinants were ease
A Procedural Guide to Write a Research Paper 203

of use. Empathy, merchandise, security product delivery and purchase


option. Customer loyalty determinants that were identified were word-
of-mouth communication purchase intention and complaining behavior.
Roth and Jackson (1995) stated that especially when they lead to quality
of kind difference along with differentiation strategies service quality
should be simultaneously account for its generic operation capabilities
and market conduct service quality improvement are not free.

Internet Banking Service Quality


Geetika and Nandan (2010) studied that this study identifies components
of service quality of internet banking that five factors are considered
important for determining satisfaction with internet banking, the most
important of which are refreshments and behavioral factors Managerial
and theoretical implications are drawn and discussed in the paper,
and a model is proposed.
Chau and Lai (2003) in their research paper stated An Empirical
Investigation of the determinants of User Acceptance of Internet Banking;
the structural equation modeling analysis indicate that the research
model exhibited a satisfactory overall fit to the collected data and was
capable of providing a reasonable explanation of users acceptance of
Internet banking services.
Tsoukatos (2009) studied that study provides useful decision making
tools for managers to assess the quality of internet banking services
and accordingly allocate quality improvement efforts and resources
to improve customer satisfaction that will, in turn, increase loyalty
and boost corporate image and improving connection to the service
speed in Internet and Phone banking would improve their innovator
image. Finally, banks should be aware that service quality is not static.
Keffala (2009) found that the impact of internet banking service quality
on customer satisfaction and behavioral intentions were consistently
lower than their expectations and the most dissatisfied dimension was
reliability. It was further found that reliability and security were found
to be the most important dimensions in internet banking transactions
that influenced satisfaction and behavioral intentions. Customer
satisfaction was found to mediate the relationship between customer
behavioral intentions
Singhal and Padhmanabhan (2008) studied the respondents perception
on various internet applications. They also provided a framework of
the factors which were used to assess the internet banking perception.
The factors utility request, security, utility transaction, ticket booking
and fund transfer are major factors Internet banking is increasingly
becoming a need to have than a nice to have service.
204 A Procedural Guide to Write a Research Paper

The success of online retailers success depends mostly on online service


quality. This exploratory research evaluates customer perception on
service quality in internet banking. Jun et. al (2004), in their exploratory
research revealed determinants of online service quality. Jun et. al.
(2004) in this study identified six key online retailing service quality
dimensions as perceived by online customers. The authors in this
research found out that there is a strong and positive relationship
between online retailers service quality and their customer satisfaction.
The authors in this study identified total of six key online service
quality dimensions.
Khalil (2011) conducted a study to understand the impact of E-
SERVQUAL model developed by Han and Beak (2004) for measuring
quality of online services to the banking context on customer satisfaction
in Bank Islam Malaysia Brhd (BIMB). The basic aim of the study was
to explore the relationship between online service quality and the
customer satisfaction. The study also explored the contribution of
empathy, reliability, and responsiveness towards satisfying the customers
of Bank Islam online banking service. It was found in the study that
the empathy had greatest influence on satisfaction followed by
responsiveness. Shrivastava (2007), carried out this research to validate
the conceptual model of internet banking. The author considered only
those consumers who knew how to use Internet and had access to
Internet and only those banks providing Internet banking services.
The objective of the research was to find out the customers perceptions
about internet banking and what are the drivers that drive consumers.
The study revealed that education, gender and income play an important
role in usage of internet banking. The research corroborates the
conceptual framework stating that if skills can be upgraded there will
be greater will to use internet banking by consumers. The restraining
factors like trust, gender, education, culture, religion, security, prices
had minimal effect on consumer mindset towards internet banking.
The study revealed that study reveals that the perception of the
consumers can be changed by awareness program, friendly usage,
less charges, proper security, and the best response to the services
offered.
Hassan and Anwar (2012), authors conducted a study to find out the
determinants that mainly affect the customer service quality perception
of internet banking amongst genders and different age groups. The
research found out that Web design, security, trust, product
diversification, credibility, collaboration, access and communication
strongly affected the customer perception about the quality of internet
banking service. The study also revealed determinants that influenced
the customer adaption of internet banking. This research was conducted
A Procedural Guide to Write a Research Paper 205

to find out the effects of different dimensions on the service quality


perception of internet banking. As internet banking is increasing rapidly
so it is important for the banks to know the preferences of the customers,
when using internet banking.

Objectives of the Study


1. To measure the customers perception on the service quality factors
in internet banking.
2. To identify the underlying factors of internet banking service
quality.
3. To find the association between various demographic variables
and perception of customers for internet banking.
4. To identify the avenues of further research.

Research Methodology
1. Study: The study descriptive in nature and survey used to
complete.
2. Sample Design
a) Population: All users of internet banking in Gwalior were
the population for this study.
b) Sample Size: Total 89 customer considered in this study
c) Sampling Element: individual respondent using internet
baking for at least one Year.(less than 1, 1-3, 3 & more)
d) Sampling Techniques: Non-purposive probability sampling.
3. Tools for Data Collection: Self made questionnaire is used for
data collection which is having likert type scale 1 to 5. 1 is tends
for minimum agreement 5 is tends for maximum agreement.
4. Tools Used for Data Analysis: Item to total correlation to measure
consistency of data; Reliability and Factor analysis used for
calculating in service quality of internet banking customer; and
ANOVA for different class of respondents.
Table 1: Demographic characteristics of the sample (n = 89)
Demographic variable Valid percent
Age of respondent
18-30 years 75.3
31-40 years 19.1
More than 40 years 5.6
Gender
206 A Procedural Guide to Write a Research Paper

Male 56.2
Female 43.8
Income Group
Fixed 55.1
Flexible 45.9
Education
Higher Education 55.1
Lower Education 44.9
Frequency of Use
Regular 47.2
Occasional 52.8
Length of Usage
Less than one year 23.6
Between 1-3 years 30.4
More than 3 years 46.0

Results and Discussions


Consistency Measure
Consistency of all the factors in the questionnaires was checked through
item to total correlation. Under this correlation of every item with
total was measured and the computed value was compared with
standard value (0.112815 for 89 respondents). The factors having item
to total correlation lower than the critical value, were declared as
inconsistent and dropped from the questionnaire.
Table showing item to total correlation for the measure evaluated
S. N. Items Value S. N. Items Value

1 visually appealing .600 19 gives personal attention .299


2 makes find information easily .597 20 have best interests at heart .412
3 provides valuable information .555 21 understand your specific .490
needs
4 bank promises .632 22 web site is easy to follow .604
5 sincere interest in solving .526 23 information is accurate .620
problem
6 right service at first time .552 24 will not misuse personal .524
information
7 services at the time it promises .545 25 service quality is excellent .655
8 error-free records .492 26 comes up to expectations .715
9 tells exactly when performed .458 27 transactions are always .706
accurate
10 prompt service .536 28 Complete and accurate .638
information in good time
A Procedural Guide to Write a Research Paper 207

11 Helpful .559 29 feel secure in providing .570


sensitive information
12 Never too busy to respond .350 30 A/c information is well .678
documented and clear.
13 Show the confidence in .638 32 web site is attractive .551
customers.
14 feel safe in transactions .611 33 Operating hours convenient .603
to meet needs.
15 consistently courteous .514 34 easily log on .628
16 have the knowledge to answer .630 35 requires a lot of effort to .445
work on
17 gives individual attention .278 36 Wide range of online .481
18 convenient operating hours -.005 service packages

Reliability Measure
Cronbachs Alpha method has been applied to calculate reliability of
all items in the questionnaire. Reliability test using SPSS software and
the reliability test measures are given below:

Reliability Statistics
Cronbach's Alpha N of Items
.944 34

It is considered that the reliability value more than 0.7 is good and it
can be seen hat in almost all the reliability methods applied here,
reliability value is quite higher than the standard value, so all the
items in the questionnaire are highly reliable.

Factor Analysis
The raw scores of 34 items were subjected to factor analysis to find
out the factors that contribute towards internet banking of service
quality. After factor analysis total eight factors were identified.
Factor name Eigen % of Var. Items Converged Factor
Values Explained Loads
Promptness and 12.191 35.855 10. Prompt service. .715
Accuracy 06 Right services at first time. .714
14. Feel safe in transactions. .607
09. Tells exactly when performed. .601
28. Complete and accurate information in time. .600
24. Will not misuse personal information. .529
04 Adheres to promises relating to internet banking. .460
Website Appeal and 1.930 5.678 32. Website is attractive. .654
Efficiency, 11. Administrators are willing to help. .620
Empathy and 25. Online service quality is excellent. .575
Responsiveness 26. Comes up to expectations. .560
15. Administrators are consistently courteous. .543
30. Web site is well documented and clear. .478
13. Administrators show confidence in customers. .463
208 A Procedural Guide to Write a Research Paper

30. Web site is well documented and clear. .478


13. Administrators show confidence in customers. .463
21. Understands specific needs of customers.
01. Web-site is visually appealing. .452
.404
Reliability, and Ease 1.600 4.705 07. Services at the time promised. .698
of use 23. Information on web site is accurate. .615
27. Internet transactions are always accurate. .601
33. Convenient operating hours. .548
34. Easily log on. .520
35. Web site requires no effort to work on. .427
Error-free records, 1.370 4.028 08. Insists on error-free records. .693
Easy Access and 22. Easy layout of the information on web site. .653
Knowledge 03. Web site provides valuable information for .558
internet banking.
02. Can find information easily for internet banking .488
on web-site.
16. Have the knowledge to answer. .437
Personal Attention 1.250 3.676 12. Never too busy to respond. .846
19. Web administrators gives personal attention. .593
Security 1.204 3.540 20. Have best interests at heart. .722
29. Feel secure in providing sensitive information. .445
Convenience 1.126 3.312 05. Sincere interest in solving problems. .833
18. Operating hours convenient to meet needs. .450
Wide range 1.030 3.028 17. Wide range of online service packages. .789

Description of Factors
1. Promptness and Accuracy: This factor gives us impression that
the time is valuable and internet banking concept is based on
save time and save money. Also Accuracy with which the
transactions are performed is equally important. Determinant
of research with a total variance explained is 35.855. Major
elements of this factor include- Prompt service; Right service at
first time; Feel safe in transactions; Tells exactly when performed;
Complete and accurate information in time, etc.
2. Website Appeal and Efficiency, Empathy and Responsiveness:
This factor has important and vital role of internet banking.
Determinant of research with a total variance explained is 5.678.
Major elements of this factor includes three sub factors viz.,
Website Appeal and Efficiency, Empathy and Responsiveness-
the items converged in the first sub factor, that is Website Appeal
are Website is attractive; Web site is well documented and clear;
and Web-site is visually appealing; the factors which converged
in the second sub factor, that is, Empathy are Comes up to
expectations and Understands specific needs of customers; and
the factors which converged in the third sub factor, that is,
Responsiveness are Administrators are willing to help; Online
A Procedural Guide to Write a Research Paper 209

service quality is excellent; Administrators are consistently


courteous, and Administrators show confidence in customers.
3. Reliability and Ease of use: This factor comprises of two sub
factors namely- Reliability and Ease of Use. The determinant of
research with a total variance explained is 4.705. The items
converged in the first sub factor are Services at the time promised;
Information on web site is accurate; Internet transactions are
always accurate; and the items converged in the second sub factor
are Convenient operating hours; Easily log on; Web site requires
no effort to work on.
4. Error-free records, Easy Access and Knowledge: This factor
comprises of three sub factors namely- Error-free records, Easy
Access and Knowledge. The determinant of research with a total
variance explained is 4.028. The item converged in the first sub
factor is Error-free records, the items converged in the second
sub factor are Easy layout of the information on web site; Web
site provides valuable information for internet banking; Can find
information easily for internet banking on web-site and the item
converged in the third sub factor is Have the knowledge to answer.
5. Personal Attention: It becomes imperative that the customers
are given personal attention in internet banking too. The
determinant of research with a total variance explained is 3.676.
This factor includes items like- Never too busy to respond; and
Web administrators gives personal attention.
6. Security: Security of transaction is of utmost importance users
of internet banking. The determinant of research with a total
variance explained is 3.540. Major elements of this factor include
Feel secure in providing sensitive information. This shows that
the customers are important to bank and they feel that their data
is secure at bank.
7. Convenience: Basically Internet banking service provides
convenience to its customers. The determinant of research with
a total variance explained is 3.312. This factor includes items like
Operating hours convenient to meet needs and sincere interest
in solving problems.
8. Wide range: Also important factor for internet banking users is
the wide range of products offered by the banker for internet
banking. The determinant of research with a total variance
explained is 3.028. The factor converged in this is Wide range of
online service packages.
210 A Procedural Guide to Write a Research Paper

Two ways ANOVA


Two ways ANOVA was applied to evaluate the effect of demographics
variable on Service quality in Internet banking. Here, demographics
variable were used as fixed factor and Service quality in Internet banking
was treated as dependent variable.
Levene's Test of Equality of Error Variances
Dependent Variable:VAR00008
F df1 df2 Sig.
1.081 57 31 .415
Tests the null hypothesis that the error variance of the dependent variable is equal across
groups.

Levens test of equality of error variances was tested using F Value.


Value of F was found to be 1.081 which is significant at 0.415 level of
significance 5%, therefore the null hypothesis that the error variance
of the dependent variable is equal across groups is not rejected. It
indicate equal error variance were there across groups.
Tests of Between-Subjects Effects
Dependent Variable: Service Quality
Source Type III Sum of Squares Df Mean Square F Sig.
Corrected Model 7756.462a 9 861.829 2.592 .011
Intercept 456629.697 1 456629.697 1373.385 .000
Freq Of Use 1394.187 1 1394.187 4.193 .044
Education 1086.404 1 1086.404 3.268 .074
Length Of Usage 95.484 2 47.742 .144 .866
Income Group 1458.579 1 1458.579 4.387 .039
Gender 59.522 1 59.522 .179 .673
Purpose Of Using 6.923 1 6.923 .021 .886
Age Group 286.870 2 143.435 .431 .651
Error 26266.302 79 332.485
Total 1500659.000 89
Corrected Total 34022.764 88
a. R Squared = .228 (Adjusted R Squared = .140)

The Test Between Subject Effects in context of Service Quality in


Internet banking were tested through Corrected Model using F value.
Value of F into the corrected model was found to be 2.592 which was
significant at .011. Second the Test Between Subject Effects was tested
through intercept value of F which was found to be 1373.385 which
was significant at .000 significant levels. The adjusted R2 was found
to be 0.140 only which indicates that all the demographic variables
have 14% effect (combined) on service quality in internet banking.
H01: There is no effect of frequency of use of internet banking on
perceived internet banking service quality.
A Procedural Guide to Write a Research Paper 211

The hypothesis was tested using F value. Value of F was found to


4.193 which is significant at 0.044 (5% level of significance). Therefore
the hypothesis is rejected, indicating that there is significant effect of
frequency of use of internet banking on perceived service quality.
H02: There is no effect of education (whether highly educated or not)
on perceived internet banking service quality.
The hypothesis was tested using F value. Value of F was found to
3.268 which is significant at 0.074 (5% level of significance). Therefore
the hypothesis is not rejected which shows that there is no significant
effect of whether the internet banking users are highly educated or
not on their perception of service quality.
H03: There is no effect of length of usage of internet banking on perceived
internet banking service quality.
The hypothesis was tested using F value. Value of F was found to
be 0.144 which is significant at 0.866 (5% level of significance). Therefore
the hypothesis is not rejected which means that there is no effect of
whether internet banking users are using the service since very long
or not on their perception of service quality.
H04: There is no effect of income group (whether fixed or flexible) on
perceived internet banking service quality.
The hypothesis was tested using F value. Value of F was found to
be 4.387 which is significant at 0.039 (5% level of significance). Therefore,
the hypothesis is rejected which means that there is a significant effect
of whether the internet banking users are highly educated or not on
their perception of service quality.
H05: There is no effect of gender on perceived internet banking service
quality.
The hypothesis was tested using F value. Value of F was found to
be .179 which is significant at .673 (5% level of significance). Therefore,
the hypothesis is not rejected which means that there is no difference
of gender on their perception of service quality.
H06: There is no effect of purpose of using internet banking (whether
account checking or actual transactions) on perceived internet banking
service quality.
The hypothesis was tested using F value. Value of F was found to
be .021 which is significant at .886 (5% level of significance). Therefore,
the hypothesis is not rejected which means that there no effect of
whether the purpose of internet banking users is account checking
only or those doing actual transactions on their perception of service
quality.
212 A Procedural Guide to Write a Research Paper

H07: There is no effect of age group on perceived internet banking


service quality.
The hypothesis was tested using F value. Value of F was found to
be .431 which is significant at .651 (5% level of significance). Therefore,
the hypothesis is not rejected which means that there is no effect of
whether the internet banking users are of age group is 18-30, or 31-40,
or 41 & above on their perception of service quality.

Conclusion
This research was conducted to find out the effects of different
dimensions on the service quality perception of internet banking. As
internet banking is increasing rapidly so it is important for the banks
to know the preferences of the customers, when using internet banking.
8 main determinants were found as factors and their affect on the
acceptance of internet banking was measured.
Easily navigable website would be comforting for customers and they
would prefer to use online services. Trustworthy and secured online
system, if provided, would make the decision easy for the customer
moving to internet banking. According to our research respondents, it
is very important that their transactions and personal information
must be fully secured. In case of any query there must not be
communication gap and customer have access to the management
and banking staff when needed. If banks works on these determinants
that it would surely increase its customers using online banking.
All the respondents were from people within the city; therefore it is
possible that the results are influenced by social factors and values of
the people. It is also strongly recommended for further researchers to
use diversified sampling techniques to gather data.
It is strongly indicated by this study that there are determinants of
internet banking service quality. There are eight factors namely-
Promptness and Accuracy, Website Appeal and Efficiency, Empathy
and Responsiveness, Reliability and Ease of use, Error-free records,
Easy Access and Knowledge, Personal Attention, Security, Convenience
and Wide range.
Out of the seven demographic and other fixed factors taken in the
study the results have shown that only two of them viz; frequency of
use (regular or occasional) of internet banking; and income group
(fixed or flexible) were having a significant effect on their perception
of internet banking service quality, and all other variables such as
Gender, Age, Education, etc. are having either no effect or not so
significant effect on the same.
A Procedural Guide to Write a Research Paper 213

The study resulted in the fact that there are some other factor also,
which are affecting service quality. Similar kind of study can be done
to evaluate the effect of other variables on emotional intelligence.

Managerial Implication
The data provided could be useful to improve the internet banking in
the world and especially in India. Results through this study will help
to understand customers perception and activities can be initiated to
improve the usage of internet banking on a large scale. This data if
used properly can lead to reduction in cost of operation for banks as
manual banking is more costly compared to internet banking.

REFERENCES
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Geetika, N., Tanuj, and U. Ashwini (2008). Internet banking in India: Issues
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Han, Sang. & Beak, Seung (2004). Antecedents and Consequences of Service
Quality in Online Banking: An Application of the SERVQUAL Instrument.
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A Procedural Guide to Write a Research Paper 215

13

Mutual Fund Performance:


An Analysis in Indian Context

Dr. Tarika Singh, Dr. Jatinder Loomba, Deepshikha Rajdev,


Dr. Saurabh Goyal, Jagmohan Jadon, Kumar Neelmani
& Sonu Sidhwani

ABSTRACT
This study has been undertaken to evaluate the performance
of the Indian Mutual Funds vis-- vis the Indian stock market.
For the purpose of this study, HDFC mutual funds were selected
as the sample. Equity (ELSS) categories of MF were selected.
The data, which is the weekly NAVs of the 4 different category
of funds and the closing of the Nifty Sensex, were collected
for a period of this year(starting January). Different statistical
tools were used on the data obtained to get the average returns,
absolute returns, standard deviation, Fund Beta, R-squared
value, residual value, Relative Performance Index were
calculated. These variables of the funds were compared with
the same variables of the market to assess how the different
funds have performed against the market. A Statistical test,
Mann Whitney U-Test, was done on the returns of the fund
with respect to the Nifty returns. Another U-Test was done
taking absolute return as the variable. These U- Test were
done to test the hypothesis which was that the fund returns
over the period of time are similar to the market returns over
the period of time. All the funds were classified into a hierarchical
cluster on the basis of their average returns, absolute returns,
standard deviation, fund beta, and relative performance index.
Key words: Mutual Funds, Sharpes Ratio, Stock Returns
216 A Procedural Guide to Write a Research Paper

Introduction
The mutual fund industry has been in India for a long time. This
came into existence in 1963 with the establishment of Unit Trust of
India, a joint effort by the Government of India and the Reserve Bank
of India. By the end of 2008, the number of players in the industry
grew enormously with 46 2 fund houses functioning in the country.
With the rise of the mutual fund industry, establishing a mutual fund
association became a prerequisite. This is when AMFI (Association of
Mutual Funds India) was set up in 1995 as a nonprofit organization.
The industry has witnessed startling growth in terms of the products
and services offered, returns churned, volumes generated and the
international players who have contributed to this growth. Today the
industry offers different schemes ranging from equity and debt to
fixed income and money market.
It is interesting to note that the major benefits of investing in a mutual
funds is to capitalize on the opportunity of a professionally managed
fund by a set of fund managers who apply their expertise in investment.
Besides investors have an opportunity to invest in a diversified basket
of stocks at a relatively low price. Each investor owns a portion of the
fund and hence shares the rise and fall in the value of the fund. A
mutual fund may invest in stocks, cash, bonds or a combination of
these. Mutual funds are considered as one of the best available
investment options as compare to others alternatives.
With 2010 approaching more towards 2011, markets rallied like never
before. The financial year 2010-11 was a year of reckoning for the
mutual fund industry in many ways. Most stocks were trading in
green. All fund houses boasted of giving phenomenal returns. Many
funds outperformed markets. Equity markets were in the limelight.
Investors who were not exposed to equity stocks suddenly infused
funds. AUM grew considerably and fund houses were on a spree of
launching new schemes. Growth funds which aim at giving capital
appreciation invest in growth stocks of the fastest growing companies.
Since these funds are more risky providing above average earnings,
investors pay a premium for the same. These funds have grown to
become extensively popular in India. All the leading fund houses offer
several schemes under the growth funds today. The remarkable
performance of this industry has attracted many researchers to study
and examine the growth, the performance of funds, the players in the
market and the regulators. It is interesting to learn the growth phase
of these funds over this period.
There are a lot of investment avenues available today in the financial
market for an investor with an investable surplus. He can invest in
A Procedural Guide to Write a Research Paper 217

tradable or non-tradable securities. According to Narach Investment


Avenues (www.narachinvestme nt.com/investment_avenues.htm),
Tradable (financial securities) like equity shares, preference shares,
convertible debentures, non-convertible debentures, public sector bonds,
savings certificates, gilt-edged securities and money market securities
etc. where, if he invests in stock of companies, the risk is high and the
returns are also proportionately high. Non-tradable (non-securitized
financial securities) like bank deposits, post office deposits, company
fixed deposits, provident fund schemes, national savings schemes, life
insurance etc. where, if he invests in bonds there is low risk but low
return. The recent trends in the stock market have shown that an
average retail investor has always lost with periodic bearish trends.
Now people have begun opting for portfolio managers with expertise
in stock markets who would invest on their behalf in the form of
mutual funds and take the help of wealth management services provided
my many institutions. In my study the scope is limited to an Asset
Management Companys mutual fund which is HDFC. I have further
analyzed on one of the schemes of the fund which is Equity Linked
Saving Schemes (ELSS).
The study aims at: 1. comparing the performance of the selected funds
vies-a-vies the benchmark index, Nifty 2 Capturing differences in the
performance levels, if any. 3. Ascertaining whether the returns generated
by the funds are purely attributable to market movement or individual
fund performance. Literature Review: Performance evaluation of mutual
funds is one of the preferred areas of research where a good amount
of study has been carried out. The area of research provides diverse
views of the same.

Conceptual Framework
Mutual Funds
According to Wikipedia.com A mutual fund is a professionally managed
type of collective investment scheme that pools money from many
investors to buy stocks, bonds, short-term money market instruments,
and/or other securities
Types of mutual funds: Here are three basic types of registered
investment companies defined in the Investment Company Act of 1940:
open-end funds, unit investment trusts (UITs); and closed-end funds.
Exchange-traded funds (ETFs) are open-end funds or unit investment
trusts that trade on an exchange.

Open-end funds
Open-end mutual funds must be willing to buy back their shares
218 A Procedural Guide to Write a Research Paper

from their investors at the end of every business day at the net asset
value computed that day. Most open-end funds also sell shares to the
public every business day; these shares are also priced at net asset
value. A professional investment manager oversees the portfolio, buying
and selling securities as appropriate. The total investment in the fund
will vary based on share purchases, redemptions, and fluctuation in
market valuation.

Closed-end funds
Closed-end funds generally issue shares to the public only once, when
they are created through an initial public offering. Their shares are
then listed for trading on a stock exchange. Investors who no longer
wish to invest in the fund cannot sell their shares back to the fund (as
they can with an open-end fund). Instead, they must sell their shares
to another investor in the market; the price they receive may be
significantly different from net asset value. It may be at a "premium"
to net asset value (meaning that it is higher than net asset value) or,
more commonly, at a "discount" to net asset value (meaning that it is
lower than net asset value). A professional investment manager oversees
the portfolio, buying and selling securities as appropriate.

Unit investment trusts


Unit investment trusts or UITs issue shares to the public only once,
when they are created. Investors can redeem shares directly with the
fund (as with an open-end fund) or they may also be able to sell their
shares in the market. Unit investment trusts do not have a professional
investment manager. Their portfolio of securities is established at the
creation of the UIT and does not change. UITs generally have a limited
life span, established at creation.

Exchange-traded funds
A relatively recent innovation, the exchange-traded fund or ETF is
often structured as an open-end investment company, though ETFs
may also be structured as unit investment trusts, partnerships,
investments trust, grantor trusts or bonds (as an exchange-traded note).
ETFs combine characteristics of both closed-end funds and open-end
funds. Like closed-end funds, ETFs are traded throughout the day on
a stock exchange at a price determined by the market. However, as
with open-end funds, investors normally receive a price that is close
to net asset value. To keep the market price close to net asset value,
ETFs issue and redeem large blocks of their shares with institutional
investors. Most ETFs are index funds.
A Procedural Guide to Write a Research Paper 219

Performance Measurement of Mutual Funds


Return alone should not be considered as the basis of measurement of
the performance of a mutual fund scheme, it should also include the
risk taken by the fund manager because different funds will have
different levels of risk attached to them. Risk associated with a fund,
in a general, can be defined as variability or fluctuations in the returns
generated by it. The higher the fluctuations in the returns of a fund
during a given period, higher were the risk associated with it. These
fluctuations in the returns generated by a fund are resultant of two
guiding forces. First, general market fluctuations, which affect all the
securities, present in the market, called market risk or systematic risk
and second, fluctuations due to specific securities present in the portfolio
of the fund, called unsystematic risk. The Total Risk of a given fund
is sum of these two and is measured in terms of standard deviation of
returns of the fund. Systematic risk, on the other hand, is measured in
terms of Beta, which represents fluctuations in the NAV of the fund
vis-a-vis market. The more responsive the NAV of a mutual fund is to
the changes in the market; higher was its beta. Beta is calculated by
relating the returns on a mutual fund with the returns in the market.
While unsystematic risk can be diversified through investments in a
number of instruments, systematic risk cannot. By using the risk return
relationship, we try to assess the competitive strength of the mutual
funds vis-a-vis one another in a better way.
In order to determine the risk-adjusted returns of investment portfolios,
several eminent authors have worked since 1960s to develop composite
performance indices to evaluate a portfolio by comparing alternative
portfolios within a particular risk class. The most important and widely
used measures of performance are:
The Treynor Measure
The Sharpe Measure
Jenson Model
Fama Model
Sharpe Ratio
The Sharpe ratio or Sharpe index or Sharpe measure or reward-to-
variability ratio is a measure of the excess return (or risk premium)
per unit of risk in an investment asset or a trading strategy, named
after William Forsyth Sharpe. It was developed by Nobel laureate
economist William Sharpe, this ratio measures risk-adjusted performance.
It is calculated by subtracting the risk-free rate of return (U.S. Treasury
Bond) from the rate of return for an investment and dividing the
result by the investment's standard deviation of its return.
220 A Procedural Guide to Write a Research Paper

The Sharpe ratio tells investors whether an investment's returns are


due to smart investment decisions or the result of excess risk. This
measurement is very useful because although one portfolio or security
can reap higher returns than its peers, it is only a good investment if
those higher returns do not come with too much additional risk. The
greater an investment's Sharpe ratio, the better its risk-adjusted
performance.
The Sharpe ratio represents this tradeoff between risk and returns. At
the same time it also factors in the desire to generate returns, which
are higher than those from risk free returns. Measures such as Sharpe
ratio provide an unbiased look into fund's performance. This is because
they are based solely on quantitative measures. However, these do
not account for any risks inherent in a funds portfolio.
The definition of the Sharpe Ratio is:
S(x) = (rx - Rf)/StdDev(x)
where
x is some investment
rx is the average annual rate of return of x
Rf is the best available rate of return of a "risk-free" security (i.e. cash)
StdDev(x) is the standard deviation of r x

Review of Literature
An attempt has been made to study the performance of selected schemes
of HDFC mutual fund based on risk-return relationship. For this purpose,
the time-tested models of mutual funds performance evaluation given
by Sharpe which is the most accepted ratio for the same have been
applied. The findings of Jensen (1968), Sharpe (1966) demonstrated
that mutual funds under perform market indexes and suggest that
the returns were not sufficient to compensate investors for the diverse
mutual fund charges. Friends and Vickers (1965) concluded that mutual
funds on the whole have not performed superior to random portfolio.
John and Donald (1974) examined the relationship between the stated
fund objectives and their risks-return attributes and concluded that
on an average, the fund managers appeared to keep their portfolios
within the stated risk.
Gupta (2000) has examined the investment performance of Indian mutual
funds using weekly NAV data and found that the schemes showed
mixed performance during 1994-1999.
Sethu (1999) conducted a study examining 18 open-ended growth
schemes during 1985-1999 and found that majority of the funds showed
A Procedural Guide to Write a Research Paper 221

negative returns and no fund exhibited any ability to time the market.
Ippolito (1989) concludes that mutual funds on aggregate offer superior
returns but they are offset by expenses and load charges. Friend, Marshal
and Crocket (1970) in their study on mutual funds found that there is
a negative correlation between fund performance and management
expense measure.
Michael C. Jensen (1967) derived a risk-adjusted measure of portfolio
performance (Jensens alpha) that estimates how much a managers
forecasting ability contributes to funds returns. As indicated by Statman
(2000), the e SDAR of a fund portfolio is the excess return of the
portfolio over the return of the benchmark index, where the portfolio
is leveraged to have the benchmark indexs standard deviation.
S. Narayan Rao , et. al., evaluated performance of Indian mutual funds
in a bear market through relative performance index, risk-return analysis,
Treynors ratio, Sharpes ratio, Sharpes measure , Jensens measure,
and Famas measure. The study used 269 open-ended schemes (out of
total schemes of 433) for computing relative performance index. Then
after excluding funds whose returns are less than risk-free returns, 58
schemes are finally used for further analysis. The results of performance
measures suggest that most of mutual fund schemes in the sample of
58 were able to satisfy investors expectations by giving excess returns
over expected returns based on both premium for systematic risk and
total risk.
Mutual fund industry has seen a lot of changes in past few years with
multinational companies coming into the country, bringing in their
professional expertise in managing funds worldwide. In the past few
months there has been a consolidation phase going on in the mutual
fund industry in India. Now investors have a wide range of Schemes
to choose from depending on their individual profiles. Although
emerging markets such as India have attracted the attention of investors
all over the world, they have remained devoid of much systematic
research, especially in the area of mutual funds. In an effort to plug
this gap, a study by Gupta and Aggarwal (2007) sought to check the
performance of mutual funds operation in India. In this regard they
found and tested the quarterly returns performance of all the equity-
diversified mutual funds during the period from January 2002 to
December 2006 using Capital Asset Pricing Model (CAPM) and Fama-
French Model. As the results of the two models used were not
complementing each other, the study calls for further research and
insights into the relationship between the performance determinant
factor portfolios and their effect on mutual fund returns.
222 A Procedural Guide to Write a Research Paper

Barua, Raghunathan and Varma (1991) evaluated the performance of


Master Share during the period 1987 to 1991 using Sharpe, Jensen
and Treynor measures and concluded that the fund performed better
than the market, but not so well as compared to the Capital Market
Line.
Since the development of the Indian Capital Market and deregulations
of the economy in 1992 it has came a long way with lots of ups and
downs. There have been structural changes in both primary and
secondary markets since a 1992 stock market scandal. Mutual funds
are key contributors to the globalization of financial markets and one
of the main sources of capital flows to emerging economies. Despite
their importance in emerging markets, little is known about their
investment allocation and strategies. A study by Agarwal (2007) provides
an overview of mutual fund activity in emerging markets. It describes
their size and asset allocation. This paper analyzes the Indian Mutual
Fund Industry pricing mechanism with empirical studies on its valuation.
It also analyzes data at both the fund-manager and fund-investor levels.
Guha (2008) focused on return-based style analysis of equity mutual
funds in India using quadratic optimization of an asset class factor
model proposed by William Sharpe. The study found the Style
Benchmarks of each of its sample of equity funds as optimum exposure
to 11 passive asset class indexes. The study also analyzed the relative
performance of the funds with respect to their style benchmarks. The
results of the study showed that the funds have not been able to beat
their style benchmarks on the average.
Bijan Roy, et. al., conducted an empirical study on conditional
performance of Indian mutual funds. This paper uses a technique
called conditional performance evaluation on a sample of eighty-nine
Indian mutual fund schemes .This paper measures the performance
of various mutual funds with both unconditional and conditional form
of CAPM, Treynor- Mazuy model and Henriksson-Merton model. The
effect of incorporating lagged information variables into the evaluation
of mutual fund managers performance is examined in the Indian
context. The results suggest that the use of conditioning lagged
information variables improves the performance of mutual fund schemes,
causing alphas to shift towards right and reducing the number of
negative timing coefficients.
K. Pendaraki et al. studied construction of mutual fund portfolios,
developed a multi-criteria methodology and applied it to the Greek
market of equity mutual funds. The methodology is based on the
combination of discrete and continuous multi-criteria decision aid
methods for mutual fund selection and composition.
A Procedural Guide to Write a Research Paper 223

Objective of the Study


1. To measure the return earned by the HDFC mutual fund ELSS.
2. To distinguish the performance of one scheme over the other.
To compare the schemes against the stock market returns (Nifty)
and to analyze whether the scheme is outperforming the index.

Research Methodology
The Study
The study was descriptive in nature.

Sample Design
Population
Total population was from Indian mutual fund and stock market.

Sample Size
Four different schemes of HDFC (Equity ELSS) mutual funds listed in
India will act as sample and Nifty Index Returns will act sample for
comparison of performance

Sample Element
Individual mutual fund scheme of HDFC MF in India will act as
Sample element.

Sampling Technique
Purposive Sampling technique was used.

Tools used for data collection


Secondary data was collected through the official website MFs India.

Tools used for data analysis


1. Sharpe Ratio was used to find out the performance of the MF
schemes.
2. Mann-Whitney U-test was used to find out the differences in
the performance of different MF schemes and Nifty returns.
3. Kruskal Wallis test was used to compare the differences between
the different MF schemes.
This classification was to see whether the funds have similar properties
or not. All the mutual funds gave similar returns with respect to the
market expect for certain time period which was during the late 2005
and early 2006. There is a positive correlation with the absolute returns
224 A Procedural Guide to Write a Research Paper

of the market and the mutual funds over the period of time. The
study showed that the standard deviation of the funds were high
during the boom period in comparison with the market and were
comparatively lower when the recessionary trend started. The fund
betas also show that there is significant correlation between the fund
returns and the market returns. Of the 21 funds considered for this
study, 7 funds had RPI less than 0.7, 3 funds had RPI of almost 1 and
11 funds had RPI of more than 1. 6

Results and Discussion


Sharpes Ratio Calculation and Ranking
Scheme Sharpes Ration Ranks On the Basis of Sharpes Ratio
HDFC Long Term Adv(D) -2.05054 3
HDFC Long Term Adv(G) -1.84653 1
HDFC TaxSaver(D) -2.87603 4
HDFC TaxSaver(G) -1.9042 2

From the above table, it can be seen that the highest risk is in HDFC
Long Term Adv(G) and lowest is in HDFC TaxSaver(D)

Mann-Whitney U-Test
Mann-Whitney U-Test was proposed by Mann and Whitney (1947).
This kind of hypothesis testing is used on samples which are not
normally distributed.

Ranks Table
This is the first table that provides information regarding the output
of the actual Mann-Whitney U Test. It shows mean rank and sum of
ranks for the two groups tested (Long term (D) scheme of HDFC and
Nifty Returns) as shown below:

Mann-Whitney Test
Ho1: There is no difference in the Long Tern (D) Scheme returns
and Nifty Index Returns
Ranks
Grouping Variable N Mean Rank Sum of Ranks
longtermD 1 152 120.47 18312.00
2 99 134.48 13314.00
Total 251

The above table is very useful as it indicates which group / variable


dominates. From the ranking table we can see that positive ranks for
Nifty returns> Long Tern (D) Scheme returns. This means that Nifty
returns dominates Long Tern (D) Scheme returns
A Procedural Guide to Write a Research Paper 225

.Test Statistics
longtermD
Mann-Whitney U 6684.000
Wilcoxon W 18312.000
Z -1.494
Asymp. Sig. (2-tailed) .135
a. Grouping Variable: grpng
Test Statistics Table
This table shows us the actual significance value of the test (above).
Specifically, the "Test Statistics" table provides the test statistic, U,
value as well as the asymptotic significance (2-tailed)P-value. From
this data it can be concluded that there is a statistically no significant
difference between the Long Tern (D) Scheme returns and Nifty Index
Returns (Z= -1.494, P = 0.135).
Ho2: There is no difference in the Long Tern (G) Scheme returns
and Nifty Index Returns
Mann-Whitney Test
Ranks
grpng N Mean Rank Sum of Ranks
longtermG 1 151 120.93 18260.00
2 99 132.47 13115.00
Total 250

From the ranking table we can see that positive ranks for Nifty returns<
Long Tern (G) Scheme returns. This means that Long Tern (G) Scheme
returns dominates Nifty returns.
Test Statistics
longtermG
Mann-Whitney U 6784.000
Wilcoxon W 18260.000
Z -1.235
Asymp. Sig. (2-tailed) .217
a. Grouping Variable: grpng
From this data it can be concluded that there is a statistically no
significant difference between the Long Tern (G) Scheme returns and
Nifty Index Returns (Z= -1.235, P = .217).
226 A Procedural Guide to Write a Research Paper

Ho3: There is no difference in the Long Tern Tax Saver (D) Scheme
returns and Nifty Index Returns
Mann-Whitney Test
Ranks
grpng N Mean Rank Sum of Ranks
taxsaverD 1 152 120.94 18382.50
2 99 133.77 13243.50
Total 251

From the ranking table we can see that positive ranks for Nifty
returns>Long Tern Tax Saver Scheme (D) Scheme returns. This means
that Nifty returns dominates Long Tern Tax Saver schem (D) Scheme
returns.
Test Statisticsa
taxsaverD
Mann-Whitney U 6754.500
Wilcoxon W 18382.500
Z -1.369
Asymp. Sig. (2-tailed) .171
a. Grouping Variable: grpng

From this data it can be concluded that there is a statistically no


significant difference between the Long Tern Tax Saver Scheme(D)
and Nifty Index Returns (Z= -1.369, P = .171).
Ho4: There is no difference in the Long Tern Tax Saver Scheme (G)
Scheme returns and Nifty Index Returns
Mann-Whitney Test
Ranks
grpng N Mean Rank Sum of Ranks
taxsaverG 1 152 121.58 18480.50
2 99 132.78 13145.50
Total 251
From the ranking table we can see that positive ranks for Nifty
returns>Long Tern Tax Saver Scheme (G) Scheme returns. This means
that Nifty returns dominates Long Tern Tax Saver scheme (G) Scheme
returns.
Test Statisticsa
taxsaverG
Mann-Whitney U 6852.500
Wilcoxon W 18480.500
Z -1.195
Asymp. Sig. (2-tailed) .232
a. Grouping Variable: grpng
A Procedural Guide to Write a Research Paper 227

From this data it can be concluded that there is a statistically no


significant difference between the Long Tern Tax Saver Scheme (G)
and Nifty Index Returns (Z= -1.195, P = .232).

Kruskal-Wallis H Test
The Ranks table shows the mean rank of the each Scheme. The Test
Statistics table presents the Chi-square value (Kruskal-Wallis H), the
degrees of freedom, and the significance level.
H05: The median returns of all the HDFC Equity link schemes are
equal.
Ranks
grpng N Mean Rank
taxsaverG 1 152 300.76
2 153 306.07
3 152 305.48
4 152 307.68
Total 609
Test Statistics
taxsaverG
Chi-Square .130
Df 3
Asymp. Sig. .988
a. Kruskal Wallis Test
b. Grouping Variable: grpng

Reporting the Output of the Kruskal-Wallis H Test


In our example, we can report that there was a statistically significant
difference between the different schemes (chi square = .130, P = 0.988).
So at a = 0.05 level of significance, there exists enough evidence to
conclude that there is a no difference among the four schemes based
on the NAV returns.

Conclusion
The present study was done to find out the performance of different
Mutual Fund schemes of HDFC Mutual Fund in India. For the study
purpose Sharpes ratio was calculated for all the schemes under study
and ranking was done. The results showed that HDFC Long term
Adv(G) scheme is the most risky scheme and least risk is in the case
of HDFC Tax saver(D) scheme. To compare whether the Nifty returns
outperform the Individual HDFC schemes, Mann Whitney U test was
applied. The results indicated that Growth schemes outperform the
Nifty returns. When comparison was made among different schemes
228 A Procedural Guide to Write a Research Paper

whether the returns significantly differ or not using Kruskal Wallis H


test, the returns of schemes do not differ significantly. The implications
for the investors are that they can go either scheme selection for HDFC
ELSS Mutual Funds; the returns of each do not differ significantly.

REFERENCES
Agrawal, D. (2007). Measuring Performance of Indian Mutual Funds.
Prabhandan Tanikniqui, 1, 1:43-52.
Friend, I., Marshal, B. and Crocket, J. (1970). Mutual Funds and Other
Institutional Investors: A New Perspective. New York: McGraw Hill Book
Company.
Friend, Irwin and Vickers, Douglas, (1965). Portfolio Selection and Investment
Performance. The Journal of Finance, Vol. XX, No.3, Sept, pp.391-415.
Guha, S. (2008). Performance of Indian Equity Mutual Funds vis-a-vis their
Style Benchmarks. The ICFAI Journal of Applied Finance, 14, 1:49-81.
Gupta, M. and Aggarwal, N. (2007). Performance of Mutual Funds in India:
An Empirical Study. The ICFAI Journal of Applied Finance, 13, 9: 5-16.
Gupta. Amitabh (2000). Market Timing Abilities of Indian Mutual Fund Mangers:
An Empirical Study. The ICFAI journal of Applied Finance. Vol.6, No.2, April,
pp. 47-60
Ippolito, R.A. (1989). Efficiency with Costly Information: A Study of Mutual
Fund Performance, 1965-1984. Quarterly Journal of Economics, 104, 1-23.
Jensen M. (1968). The Performance of Mutual Funds in the Period 1945-64.
Journal of Finance 23(2), 389-416 .
Jensen. MC (1968). The Performance of Mutual Funds 1945-64. Journal of Finance,
Vol.23. No.2 May, pp. 389-416.
John G.Mc Donald (1974). Objectives and Performance of Mutual Funds 1960-
1967. Journal of Financial and Quantitative Analysis, June, pp. 311-33.
Pendaraki, K., Zopounidis, C. and Doumpos, M. (2005). On the construction
of mutual fund portfolios: A Multicriteria methodology and an application
to the Greek market of equity mutual funds. The European Journal of
Operational Research, 163, 2: 462-4.
Rao, Janardhan N, (2001). Debt Markets, Glitters of Gilt. Chartered Financial
Analyst, November 2001, pp 45-50.
Roy, Bijan (2006). Mutual Fund Performance Measurement: a Closer Look.
ICFAI Portfolio Organizer, (2006) p. 51.
Samir K. Barua et al. (1991). Master Shares: A bonanza for large Investors.
Vikalpa, Vol.16, No.1. (Jan Mar) 29-34/
Sethu, G. (1999). The Mutual Fund Puzzle, International Conference on
Management, UTI-ICM, Conference Proceedings: 23-24.
Sharpe, William F. (1966). Mutual fund performance. Journal of Business39(1),
119-138.
Statman , M. (2000). Socially responsible mutual funds. Financial Analysts
Journal 56, 2000, 30-38.
A Procedural Guide to Write a Research Paper 229

14

Effects of Advertising on Product


Risk Perception and Warning
Effectiveness: A Study of Household
Cleaners in Gwalior

Krishna Kumar Pandey, Manisha Pandey, Abhimanyu Bhardwaj,


Mayank Singhal, Reeva Chugh

ABSTRACT
This study examined how groups representing four tiers in
the chemical supply chain (manufacturers, vendors, workers
and consumers) understood safety information, and the factors
that influenced disposal behavior. Data from seven, semi-
structured, focus groups was analyzed both qualitatively (textual
analysis) and quantitatively (network analysis). Such combined
analytical methods enabled us to achieve both detailed insights
into perceptions and behavior and an objective understanding
of the prevailing opinions that occurred within and between
the focus group discussions. We found issues around awareness,
trust, access and disposal behaviors differed between groups
within the supply chain. Participants from the lower tiers
perceived chemical safety information to be largely inaccessible.
Labels were the main source of information on chemical risks
for the middle and bottom tiers of the supply chain. Almost
all of the participants were aware of the St Andrews cross
and skull and crossbones symbols but few were familiar with
the Volatile Organic Compound logo or the fish and tree symbol.
230 A Procedural Guide to Write a Research Paper

Both the network and thematic analysis demonstrated that


whilst frequent references to health risks associated with
chemicals were made environmental risks were usually only
articulated after prompting. It is clear that the issues
surrounding public understanding of chemical safety labels
are highly complex and this is compounded by inconsistencies
in the cognitive profiles of chemical users. Substantially different
cognitive profiles are likely to contribute towards communication
difficulties between different tiers of the supply chain. Further
research is needed to examine the most effective ways of
communicating chemical hazards information to the public.
The findings demonstrate a need to improve and simplify disposal
guidance to members of the public, to raise public awareness
of the graphic symbols in the CHIP 3.1, 2005 regulations and
to improve access to disposal guidance.
Keywords: Chemical supply chain; Environment; Labelling
schemes; Risk communication; Cognitive profiles

Introduction
The study of consumers helps firms and organizations improve their
marketing strategies by understanding issues such as how consumers
think, feel, and influence from advertisement, the behavior of consumers
while deciding to purchase, limitations in consumer knowledge or
information processing abilities influence decisions and marketing
outcome, how consumer motivates and how marketers can adapt and
improve their marketing campaigns and advertisement to more
effectively reach the consumer. In order to understand the effects of
advertisements on product risk perception and warning effectiveness
in case of household cleaners it is necessary to consider that up to
what extent they are watching advertisement and reading the book
and what type of effect an advertisement left in viewers mind.
It is only advertisement by which people have learned to keep their
houses clean in order to ward of diseases and infections whether it is
shown in television or read from any book. To help them to do this,
marketers have created a wide variety of cleaning products and
disinfectants. The problem is that our zeal to be clean has gone too
far. Today the cleaner is frequently more dangerous than the things
we are trying to clean up. Many common household products contain
alcohol, ammonia, bleach, formaldehyde, lye. These substances can
cause nausea, vomiting inflammation and burning of the eyes, nose,
throat and respiratory system and are linked with neurological, lever
and kidney damage, blindness asthma and cancer.
A Procedural Guide to Write a Research Paper 231

Not only are common household cleaners detrimental to human health


they are just as detrimental to the environment. Additionally, children
are highly vulnerable to chemical toxins. Their ability to metabolize,
detoxify and excrete harmful chemicals differs from that of adults. In
addition, children have a faster metabolism which speeds up the
absorption of contaminants and toxins. The National Academy of Science
has recommended that infants and children be considered more
vulnerable to chemicals, such as those found in household products,
than adults in the absence of evidence to the contrary. There are many
natural and environmental friendly products that will clean the home
and not harm the environment or ones families health. However,
buyer beware, all green products are not created equal. The term
green and all natural are widely misused in the household cleaning
product business.
But present situation is that customer does not avoid these products
since it is very convenient to use and clean up the affected area. So
solution of this problem is that customers have to provide sufficient
warnings before using these hazardous products. But in an ideal world,
warnings would not be necessary to protect consumers from hazardous
products. The safety engineering hierarchy of priorities (National Safety
Council, 1989) asserts that product hazards should first be eliminated
from a design, and if this is not possible, should be guarded against.
Warnings and personal protective equipment are viewed as a last
resort. Unfortunately, some common consumer products, such as cleaning
agents, lawn and garden products, and medicinal drugs, by their nature
contain hazards that cannot be eliminated or effectively guarded. For
these types of products, warnings are the best method available to
protect consumers from accidental misuse and resulting injury.
Although much research has not been conducted in Indian perspective
but it has been done in American and other countries. This paper is
an effort to explore effects of advertisement on product risk perception
and warning effectiveness of an advertisement. Through this effort
various factors has been explored and analyzed the effects on customers
thoughts of risks to use the household cleaners and how much they
are giving attention towards warnings given in an advertisement.

Literature Review
A substantial body of warnings literature has been created over the
past two decades. Researchers have investigated the design factors
necessary for an effective warning (see Wogalter, Conzola, & Smith-
Jackson, 2002, for a review). Warning salience, the wording of hazard
descriptions and consequences, the use of pictorials and signal words,
232 A Procedural Guide to Write a Research Paper

the importance of proper layout and placement, delivery modality,


and individual differences have all been considered. Other research
(e.g., Wogalter, Brelsford, Desaulniers, & Laughery, 1991; Slovic,
Fischhoff, & Lictenstein, 1979) has examined the components of risk
perception and how perceived risk influences warning effectiveness.
Based on empirical findings, Wogalter, DeJoy, and Laughery (1999)
have proposed a communications-human information processing (C-
HIP) model to explain the process by which warning information is
transferred from an information source, through a media channel, to
a targeted receiver. Research has investigated the variables that act at
each stage of the model. One receiver variable that has attracted
particular attention is familiarity.
Among the most well accepted findings in the warnings literature is
a negative correlation between product familiarity and warning
effectiveness. A number of studies have examined this relationship.
Results consistently show that the more familiar an individual is with
a product or situation, the less likely he or she is to perceive the
product or situation as hazardous or to look for, read, and comply
with warnings. These findings have been replicating across numerous
product types and situations. In the above review of the familiarity
literature, empirical findings are organized by the measures of warning
effectiveness that correspond to the various receiver stages of the C-
HIP model.
Although some research into warning labels in advertisements has
been conducted, little examines the impact of the placement of labels
in print ads, including consumer responses to warning label placement
and consumer response effects. Social contract theory suggests that
consumers may, somewhat paradoxically, put a relatively high value
on an advertisement of a brand that prominently displays warning
information, rather than minimizing it. Our research probes the relevance
of social contract assumptions by reviewing current print advertisement
warning practices with a content analysis (CA) of consumer magazines
and by testing the effectiveness of label placement strategies with a
between-subjects experiment. Validating social contract assumptions,
our study shows more positive consumer responses for recall, attitude
toward the ad, attitude toward the brand, purchase intention and
responsible advertising when warnings are overtly rather than discreetly
placed in print ads. Also, we develop a robust, multi-item responsible
advertising scale. Our paper explores the implications and directions
for future research from our warning label findings (Torres et.el; 2007).
Eser Borak (1985) Summarized that historical background information
which traces the development of consumerism issues in Turkey in
A Procedural Guide to Write a Research Paper 233

terms of criteria consumers use during purchase of and complaints


with products and services, sources of information utilized and responses
to dissatisfaction. He concluded with the implications for the consumer,
business firms, public institutions and the researchers. Thorelli and
Sentell (1979) pointed out for other LDCs, most of the consumers try
to attain their first order needs and adjust their standard of living
accordingly. Thus, they have a low level of aspiration and they are
satisfied mostly with what they get. However, there is also a segment
who is well-informed and have a high level of aspiration. If the amount
at stake is little, the Turkish consumer does not think it is worth
taking an action Ozsunay 1983). Court expenses are high and trials
are time-consuming. There is no class action. Consumers do not want
to lose time, energy and/or money by individually applying to the
court (Ozsunay 1983).
Jennifer and Kelley (2004) used a series of meta-analyses to demonstrate
the impact of warning labels across five dimensions of effectiveness:
attention, reading and comprehension, recall, judgments, and behavioral
compliance. Subsequent moderator analyses indicate that attention is
moderated by vividness-enhancing characteristics, warning location,
and familiarity but not by product type. None of the moderating
variables affect either reading and comprehension or recall. Product
type moderates judgments, and familiarity and cost of compliance
moderate behavioral compliance.
References and further reading may be available for this article. To
view references and further reading you must purchase this article.
Bruce P. Hunn and Thomas A. Dingus (1990) indicated that cost of
compliance was the only variable that significantly affected the safe
use of the product. Implications for consumer product safety and
regulation are discussed.

Objectives of the Study


1. To design, develop and standardize a measure to evaluate effects
of advertisement, warning effectiveness of advertisement and
product risk perception.
2. To develop relationship between the advertisement and warning
effectiveness of advertisement and product risk perception.
3. To evaluate the differences between genders on the level of
warning effectiveness and level of product risk perception,
working and non-working customers on the level of warning
effectiveness and the level of product risk perception,
4. To open new vistas for further research.
234 A Procedural Guide to Write a Research Paper

2. Methodology
2.1 The Study
The study will exploratory in nature. Three type of Questionnaire
was used for taking primary data.

2.2 The Sample Design


2.2.1 Population
Total population will be Gwalior region.

2.2.2 Sample Size


Sampling size for the study will be 200 (100 male respondents and
100 female respondents) customers of Gwalior region.

2.2.3 Sample Element


Individual respondent will be the sampling element in this research.

2.2.4 Sampling Technique


Purposive sampling technique will be used.

2.3 Tools Used for Data Collection:


Since study included the primary data so three types of self designed
questionnaires will be used for collecting the responses of the customers,
one questionnaire based on advertisement effectiveness, second is based
on product risk perception and third is based on warning effectiveness.

2.4 Tools Used for Data Analysis


Item to total Correlation will be used for checking the internal
consistency.
Reliability test will be used for checking the reliability of the
Questionnaire.
Factor analysis will be used for analyzing the underlined factors.
Regression will be applied to see the relation between Effect of
advertisement and product risk perception and Effect of
Advertisement and warning Effectiveness.

Results & Discussions


Introduction
In this chapter, results from statistical analysis and outcomes of
hypotheses testing are presented. In the first section Consistency
measures of the items used in the Questionnaire for Data collection
A Procedural Guide to Write a Research Paper 235

are discussed. The reliability of the items in all the Questionnaires


was computed using SPSS and discussed in the next section. To explore
the underlying constructs, factor analysis was applied. This section
also provides results of factor analysis performed on the data sets,
including extraction, rotation, and variance explained.

Results
Consistency Measures
First of all consistency of all the questionnaires was checked through
item to total correlation. Under this correlation of every item with
total was measured and the computed value is compared with standard
value (i.e. .137). If the computed value was found less than standard
value than whole factor/ statement was dropped and termed as
inconsistent otherwise it termed as consistent and whole factor is
accepted.

Consistency of Advertising Effectiveness


Table 1: Showing the Consistency Measures of Advertising
Effectiveness
Items Computed Correlation Consistency/ Accepted/
value Inconsistency Dropped
Frequency to watch T.V. .458 Consistent Accepted
Likeliness .378 Consistent Accepted
Unlike .448 Consistent Accepted
Helps in selection of goods .474 Consistent Accepted
Exposure .297 Consistent Accepted
Enjoyment .511 Consistent Accepted
Favoritism .354 Consistent Accepted
Frequency to read books .314 Consistent Accepted
Depth in reading .189 Consistent Accepted

Consistency of Product Risk Perception


Table 2: Showing the Consistency Measures of Product Risk Perception
Items Computed Correlation Consistency/ Accepted/
value Inconsistency Dropped
Knowledge .330 Consistent Accepted
Necessity .472 Consistent Accepted
Brand Reputation .138 Consistent Accepted
Safety .516 Consistent Accepted
Value .398 Consistent Accepted
Ease .559 Consistent Accepted
Familiarity .336 Consistent Accepted
Hazardous Composition .391 Consistent Accepted
Importance of Composition .195 Consistent Accepted
Frequency of use .377 Consistent Accepted
Brand Awareness .539 Consistent Accepted
Operating easiness .467 Consistent Accepted
Cost .177 Consistent Accepted
236 A Procedural Guide to Write a Research Paper

Consistency of Warning Effectiveness


Table 3: Showing the Consistency Measures of Warning
Effectiveness
Items Computed Consistency/ Accepted/
Correlation value Inconsistency Dropped
Configuration .487 Consistent Accepted
Quality .252 Consistent Accepted
Risk in Use .434 Consistent Accepted
Cautions .247 Consistent Accepted
Belief .481 Consistent Accepted
Hazardousness .450 Consistent Accepted
Safety .258 Consistent Accepted
Cause diseases .452 Consistent Accepted

Reliability Measures: Reliability test of all the variables ware carried


out using SPSS software and the reliability tests measured are given
below-
Table 4: Showing the Results of Reliability Tests
Variables Cronbachs alpha
Advertising Effectiveness .706
Product Risk Perception .752
Warning Effectiveness .692

Since all the values of reliability measures are greater than .7 it means
all questionnaires are highly reliable.
Face validity: Face validity of all the four measures was applied to
the questionnaire while selecting the statements (elements) for the
measures and it was found to be very high.
Content validity: Content validity was established through factor
analysis and support referencing.
Factor Analysis of Variables: Since there were many factors in each
variable therefore principle component factor analysis with varimax
rotation and Kaiser Normalization was applied for each.

KMO and Bartletts Tests of Advertising Effectiveness


Kaiser-Meyer-Olkin Measure of Sampling Adequacy was applied to
check whether the sample was adequate for conducting the study.
A Procedural Guide to Write a Research Paper 237

Table 5: Showing KMO and Bartletts Test of Advertising


Effectiveness
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. . 694
Bartlett's Test of Sphericity Approx. Chi-Square 295.358
df 36
Sig. .000
The table value of KMO is .694 indicating that the sample was adequate.
Bartletts test of sphericity was applied to check whether the data was
leading yo identity matrix. The table value is 295.358 which is significant
at .000 indicating that the data was not spherical.
Factor Analysis of Advertising Effectiveness: The raw scores of nine
items were subjected to principle component factor analysis and were
applied with varimax rotation with Kaiser Normalization to find out
the factors that contribute towards the Advertising Effectiveness. All
the statements converged on three factors after rotation in four iterations
which affecting the response of the customers and the factor were
named according to the common nature of statements. The detail about
the factor included the factor no. factor name, and convergence and
their Eigen values, Items under each factor and their Item loading is
given in the table below.
Table 6: Showing Factor Analysis of Advertising Effectiveness

S. Factor Eigen Value Items Item Loading


No Name Total % of Variance Value

1 Delight 1.910 21.223 4. Helps in selection of goods .783


6. Enjoyment .780
7. Favoritism .699
2 Habit 1.623 18.037 8. Frequency to read books .712
1. Frequency to watch T.V. .694
9. Depth in reading .539
2. Likeliness .517
3 Exposure 1.498 16.643 5. Exposure .867
3. Unlike .759

Discussion of factors of Advertising Effectiveness


1. Delight: This factor has emerged as the most important
determinant of research with 21.223% of variance. The major
elements constitute this factor included; Helps in selection of goods
(.783), Enjoyment (.780) and Favoritism (.699).
238 A Procedural Guide to Write a Research Paper

2. Habit: This factor has emerged as an important determinant of


research with 18.037% of variance. The major elements constitute
this factor include; Frequency to read books (.712), Frequency
to watch T.V. (.694), Depth in reading (.539), and Likeliness (.517).
3. Exposure: This factor has emerged as an important determinant
of research with 16.643% of variance. The major elements constitute
this factor include; Exposure (.867), and Unlikelyness (.759).

KMO and Bartletts Tests of Product Risk Perception


Kaiser-Meyer-Olkin Measure of Sampling Adequacy was applied to
check whether the sample was adequate for conducting the study.
Table 7: Showing KMO and Bartletts Test of Product Risk Perception
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. . 660
Bartlett's Test of Sphericity Approx. Chi-Square 593.493
df 78
Sig. .000

The table value of KMO is .660 indicating that the sample was adequate.
Bartletts test of sphericity was applied to check whether the data was
leading yo identity matrix. The table value is 593.493 which are
significant at .000 indicating that the data was not spherical.
Factor Analysis of Product Risk Perception: The raw scores of thirteen
items were subjected to principle component factor analysis and were
applied with varimax rotation with Kaiser Normalization to find out
the factors that contribute towards the Advertising Effectiveness. All
the statements converged on five factors after rotation in eight iterations
which affecting the response of the customers and the factor were
named according to the common nature of statements. The detail about
the factor included the factor no. factor name, and convergence and
their Eigen values, Items under each factor and their Item loading is
given in the table below.
A Procedural Guide to Write a Research Paper 239

Table 8: Showing Factor Analysis of Product Risk Perception


S. Factor Eigen Value Items Item
No Name Total % of Variance Loading
Value
1 Value 2.368 18.219 2. Necessity .754
5. Value .731
4. Safety .655
1. Knowledge .533
2 Ease 2.134 16.415 10. Frequency of use .836
12. Operating .754
easiness .536
11. Brand Awareness .498
8. Hazardous
Composition
3 Cost 1.406 10.816 13. Cost .813
4 Reputation 1.299 9.991 3. Brand Reputation .849
6. Ease .518
5 Familiarity 1.226 9.427 9. Importance of .897
composition .450
7. Familiarity

Discussion of factors of Product Risk Perception


1. Value: This factor has emerged as the most important determinant
of research with 18.368% of variance. The major elements constitute
this factor included; Necessity (.754), Value (.731), Safety (.655)
and knowledge (.533).
2. Ease: This factor has emerged as an important determinant of
research with 16.415% of variance. The major elements constitute
this factor include; Frequency to use (.836), Operating easiness
(.754), Brand Awareness (.536), and Hazardous Composition (.498).
3. Cost: This factor has emerged as an important determinant of
research with 10.816% of variance. The major element constitute
this factor is Cost (.813).
4. Reputation: This factor has emerged as an important determinant
of research with 9.991% of variance. The major elements constitute
this factor include; Brand Reputation (.849), and Ease Operating
easiness (.518).
5. Familiarity: This factor has emerged as the most important
determinant of research with 9.427% of variance. The major
elements constitute this factor included; Importance of composition
(.897) and Familiarity (.450).
240 A Procedural Guide to Write a Research Paper

KMO and Bartletts Tests of Warning Effectiveness


Kaiser-Meyer-Olkin Measure of Sampling Adequacy was applied to
check whether the sample was adequate for conducting the study.
Table 7: Showing KMO and Bartletts Test of Warning Effectiveness
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling . 649
Adequacy.
Bartlett's Test of Sphericity Approx. Chi-Square 288.271
df 28
Sig. .000
The table value of KMO is .649 indicating that the sample was adequate.
Bartletts test of sphericity was applied to check whether the data was
leading yo identity matrix. The table value is 288.271 which are
significant at .000 indicating that the data was not spherical.
Factor Analysis of Warning Effectiveness: The raw scores of thirteen
items were subjected to principle component factor analysis and were
applied with varimax rotation with Kaiser Normalization to find out
the factors that contribute towards the Advertising Effectiveness. All
the statements converged on five factors after rotation in three iterations
which affecting the response of the customers and the factor were
named according to the common nature of statements. The detail about
the factor included the factor no. factor name, and convergence and
their Eigen values, Items under each factor and their Item loading is
given in the table below.
Table 8: Showing Factor Analysis of Warning Effectiveness
S. Factor Eigen Value Items Item Loading
No Name Total % of Variance Value
1 Risk 2.275 28.436 6. Hazardousness .846
5. Belief .718
8. Cause diseases .653
3.Risk in use .616
2 Safety 1.664 20.806 7.Safety .861
1. Configuration .809

Discussion of factors of Warning Effectiveness


1. Risk: This factor has emerged as the most important determinant
of research with 28.436% of variance. The major elements constitute
this factor included; Hazardousness (.846), Belief (.718), Cause
diseases (.653) and Risk in use (.616).
A Procedural Guide to Write a Research Paper 241

2. Safety: This factor has emerged as an important determinant of


research with 20.806% of variance. The major elements constitute
this factor include; Safety (.861) and Configuration (.809).

Regression Analysis
Linear Regression between Advertisement Effectiveness and Product Risk
Perception
The regression is calculated by taking the total of Advertisement
Effectiveness and Product Risk Perception by using SPSS software. In
this the Advertisement Effectiveness is independent variable and Product
Risk Perception is the dependent variable. Therefore, regression is
calculated by taking dependent and independent variable.
Null hypothesis (H0): It stated that there is no significant impact of
Advertisement Effectiveness on Product Risk Perception.
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .466a .217 .213 9.30789
a. Predictors: (Constant), Advertisement Effectiveness
b. Dependent Variable: Product Risk Perception

ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 4713.562 1 4713.562 54.406 .000a
Residual 16980.802 196 86. 637
Total 21694. 364 197
a. Predictors: (Constant), Advertisement Effectiveness
b. Dependent Variable: Product Risk Perception

Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficient
B Std. Error Beta
1 Constant 33.403 3.476 9.609 .000
Advertisement .611 .083 .466 7.376 .000
Effectiveness
Dependent Variable: Product Risk Perception
Y = a + bx
Y= 33.403+ .611x
Where,
X = Advertisement Effectiveness (Independent variable)
Y = Product Risk Perception (Dependent variable)
242 A Procedural Guide to Write a Research Paper

The model having Advertisement Effectiveness as independent variable


and Product Risk Perception as dependent variable has good fit as
indicated by F-test value which is 54.406 and significant at 0.000 level
of significance. The result of regression from the coefficient table indicates
that service quality has strong relationship with Product Risk Perception
having beta value of .466 tested through t-test having t value of 7.376
which is significant at 0.0% level of significance. The model summary
table indicating that Advertisement Effectiveness has only 21.7% effect
on Product Risk Perception since the r value of table is .217 which
means Advertisement Effectiveness has not much significant impact
on Product Risk Perception.

Linear Regression between Advertisement Effectiveness and Warning


Effectiveness
The regression is calculated by taking the total of Advertisement
Effectiveness and Warning Effectiveness by using SPSS software. In
this the Advertisement Effectiveness is independent variable and
Warning Effectiveness is the dependent variable. Therefore, regression
is calculated by taking dependent and independent variable.
Null hypothesis (H0): It stated that there is no significant impact of
Advertisement Effectiveness on Warning Effectiveness.
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .434a .189 .184 6.21666
a. Predictors: (Constant), Advertisement Effectiveness
b. Dependent Variable: Warning Effectiveness
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 1760.387 1 1760.387 45.551 .000a
Residual 7574.790 196 38. 647
Total 9335.177 197
a. Predictors: (Constant), Advertisement Effectiveness
b. Dependent Variable: Warning Effectiveness
Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficient
B Std. Error Beta
1 Constant 22.157 2.322 9.543 .000
Advertisement .374 .055 .434 6.749 .000
Effectiveness
a. Dependent Variable: Warning Effectiveness
A Procedural Guide to Write a Research Paper 243

Y = a + bx
Y= 22.157+ .374x
Where,
X = Advertisement Effectiveness (Independent variable)
Y = Warning Effectiveness (Dependent variable)
The model having Advertisement Effectiveness as independent variable
and Warning Effectiveness as dependent variable has good fit as
indicated by F-test value which is 45.551 and significant at 0.000 level
of significance. The result of regression from the coefficient table indicates
that service quality has strong relationship with Warning Effectiveness
having beta value of .434 tested through t-test having t value of 6.749
which is significant at 0.0% level of significance. The model summary
table indicating that Advertisement Effectiveness has only 18.9% effect
on Warning Effectiveness since the r value of table is .189 which
means Advertisement Effectiveness has not much significant impact
on Warning Effectiveness.

Implications of the Study


This research is intended to be useful for further research studies
where researchers wants to understand the difference or measure
the level of effects advertisement, product risk perception and
warning effectiveness among working and nonworking customers
as well as male and female customers and customers of different
age groups.
References of study can also be helpful for the students for their
research.
Students for their further research may use questionnaire.

Conclusion
This study has resulted that there is not much effect of Advertisement
on product risk perception and warnings of the hazardous cleaners.
Although there are three important factors in Advertisement
Effectiveness, five important factors in product risk perception and
two important factors in warning effectiveness. The study also reveal
that as customer is more and more familiar to the product he or she
has not much awareness about cautions written on the product
packaging since he or she is more confident to use the product. So
this study has also found that customer wants to solve his or her
problems instantly since life is fast today, but he or she has not awareness
about long-term health losses as household cleaners cleans very fast
244 A Procedural Guide to Write a Research Paper

to domestic appliances and this hazardous product harm us slowly as


slowly.

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