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Solman Research Method PDF
Solman Research Method PDF
INTRODUCTION TO RESEARCH
Instructional Goals
1. To generate interest in research for the students by driving home the point that
successful managerial problem solving is nothing other than understanding and
analyzing the situation at hand, which is what research is all about.
2. To help students differentiate between research‐based problem solving and “going by
gut‐feeling”, the latter of which might sometimes help to solve problems in the short
term, but might lead to systemic long‐term adverse consequences.
3. To create an appreciation in students that research is useful for solving problems in
ALL areas of business.
4. To help students develop an appreciation of the role of the manager in facilitating the
researcher or the consultant’s work.
5. To stress the importance of skill development in research, as opposed to mere
gathering of knowledge about research.
6. To emphasize that research and knowledge about research enhance managerial
effectiveness.
7. To sensitize students to ethical conduct in business research.
Discussion Questions
1. Why should a manager know about research when the job entails managing people,
products, events, environments and the like?
The manager, while managing people, products, events, and environments, will
invariably face problems, big and small, and will have to seek ways to find long
lasting, effective solutions. This can be achieved only through knowledge of research
even if consultants are engaged to solve problems.
2. For what specific purpose is Basic research important?
Scenario 1
Companies are very interested in acquiring other firms even when the latter operate in totally unrelated realms of
business. For example, Coca‐Cola has announced that it wants to buy China Huiyuan Juice Group in an effort to
expand its activities in one of the world’s fastest‐growing beverage markets. Such acquisitions are claimed to
“work miracles.” However, given the volatility of the stock market and the slowing down of business, many companies are
not sure whether such acquisitions involve too much risk. At the same time, they also wonder if they are missing out on a
great business opportunity if they fail to take such risk. Some research is needed here!
This is a general issue that relates to all or most companies contemplating
acquisitions. Of course, the results of the study are likely to be useful to, and applied
by, all the concerned companies. This could fall into the realm of basic or applied
research, depending on who sponsors the study. If one company or a consortium of
companies investigates the issue to find an answer for immediate application, then it
will be applied research On the other hand, if a Finance professor in a university
undertakes the study as a matter of academic interest, it will be basic research.
Either an individual such as a professor or a finance expert can do this basic research,
or a company or consortium of companies can undertake the applied research.
Scenario 2
Reasons for Absenteeism
A university professor wanted to analyze in depth the reasons for absenteeism of employees in organizations. Fortunately,
a company within 20 miles of the campus employed her as a consultant to study that very issue.
Scenario 3
Effects of Service Recovery on Customer Satisfaction
A research scientist wants to investigate the question: What is the most effective way for an organization to
recover from a service failure? Her objective is to provide guidelines for establishing the proper "fit" between
service failure and service recovery that will generalize across a variety of service industries.
This will be a case of basic research, the purpose of which was to study the
efficacy of different service recovery strategies and add to the body of existing
marketing knowledge.
Discussion Questions
The first two questions are straightforward and the answers may be extracted
from the text.
3. One hears the word research being mentioned by several groups such as research
organizations, college and university professors, doctoral students, graduate
assistants working for faculty, graduate and undergraduate students doing their
term papers, research departments in industries, newspaper reporters, journalists,
lawyers, doctors, and several other professionals and nonprofessionals. In the light
of what you have learned in this unit, how would you rank the aforementioned
groups of people in terms of the extent to which they might be doing “scientific”
investigations? Why?
To the extent that any of the above groups conforms to the hallmarks of science,
they would be doing scientific investigation. It is quite possible that poor research is
done by research agencies, and excellent research is conducted by a graduate
assistant. The ultimate test is the rigor of the research which would lend itself to
testability, replicability, accuracy and precision, generalizability, objectivity, and
Discussion Questions
1. How would you describe the research process?
The research process includes a series of steps in identifying the variables to be
studied and the method for conducting the study. The problem statement is a critical
aspect. Though it is generated by having a good feel for where the gap between a
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desired state and the actual state exists in the system, the problem statement can be
repeatedly honed and made more precise at various stages in the research process.
The theoretical framework and hypotheses are important parts of the research
process since these focus on finding the answers to the research question. Good
research design helps in finding reliable answers to the problem that is investigated.
2. Explain the preliminary data collection methods.
Preliminary data can be obtained through interviews and/or through literature
search. These processes help to define the problem statement precisely and to
formulate the theoretical framework. Interviews conducted at various levels are
aimed at obtaining background information on the system that is investigated, the
structure and processes that operate in the system, the perceptions, attitudes, and
behaviors of the people in the institution, and other related matters. The literature
search will be based on the factors that seem pertinent to the problem that is
investigated. After locating all the references in the area, the work relevant to the
problem at hand will be studied and a literature review written up.
3. Why is it important to gather information on the background of the organization?
The background information of the company is likely to offer the researcher
several clues on when the problems that are currently experienced by the company
could have started and how they could have originated. One can also assess how the
other companies operating in similar types of environment in the industry might be
different and in what way. Since multiple factors can influence the problem, the
possibility that some of the background features of the company are influencing the
situational problem cannot be ruled out. Additionally, the background factors offer the
researcher a good idea of how the philosophy and culture of the company are shaped,
and to what extent they can be changed, if necessary.
Collecting background information also helps to focus on critical issues and raise
appropriate questions during the interview process. Examples of this are provided in
the book.
4. Should a researcher always find information on structural and job characteristics
from those interviewed? Give reasons for your answer with examples.
It is almost always advisable for the researcher to gather some information on the
structure and job characteristics even though it may appear that the problem may not
be related to either of these factors. For example, the problem of not meeting the
production deadlines may be directly related to the delayed deliveries of the raw
materials by the suppliers. In such a case, the tendency might be to focus the data
collection mainly as it relates to suppliers. However, interviewing the employees and
ascertaining their reactions to their job, work‐flow interdependencies, structure, and
the like, might offer the solution that deadlines can be met even with delayed raw
material supplies by changing the workflow patterns, or other structural aspects. It is
for such reasons that some time should be spent on finding the job and structure‐
related information.
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There is also another way of looking at this. Human beings operating in
organizations face a multitude of factors surrounding them, many of which, directly or
indirectly, influence their operating effectiveness. The structural factors such as
policies and procedures, reward systems and job factors do play a critical part in how
outcomes for the organization are achieved. Because of this, it certainly helps to get a
feel for these factors. Of course, there is no need to spend a great deal of time on
these unless there is some indication that there could be problems in these areas.
As an example, it is possible that the age of the machinery could be blamed for low
production, and sophisticated machinery might be installed without any appreciable
difference in the results. Further investigation might throw light on the fact that the
current incentive system does not encourage high levels of production, and this fact,
rather than the type of machinery used, is the problem. Not finding this before
investing heavily on new equipment would be a costly mistake!
5. How would you go about doing a literature survey in the area of business ethics?
I would first obtain all the references and abstracts relating to the area of business
ethics through on‐line systems, then organize the studies based on the particular
aspects they address, and finally, write up a review of the available literature.
6. What is the purpose of the literature survey?
Basically to make sure that none of the important variables are left out in the study
and to generate a parsimonious set of factors which would help to explain or predict
the phenomenon under investigation.
7. Why is appropriate citation important? What are the consequences of not giving
credit to the source from which materials are extracted?
Most published articles are copyrighted. There are rules as to how much can be
quoted from the original text without obtaining the journal’s and the author’s
permission. If permission is not obtained for quotes exceeding the authorized limit,
the individual quoting the material is liable to be sued for plagiarism and can even be
expelled from the professional society to which he or she belongs.
8. “The problem definition stage is perhaps more critical in the research process than
the problem solution stage”. Discuss this statement.
Finding the right solution to an incorrectly identified problem helps no one
because the original concerns will still continue to exist. Hence, pinpointing where
exactly the gap lies, for which a solution is needed, is critical.
9. Why should one get hung up on problem definition if one already knows the broad
problem area to be studied?
Since a problem statement is a clear, precise, and concise statement of the issue to
be researched, it offers a focus and direction to the research. In other words, it sets
out the exact purpose of the research and clearly states the question to which we are
trying to find an answer. The broad problem area, however, due to its vagueness and
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wide scope of the issues that could be involved, leaves the focus of the research
undetermined, and hence offers no sense of purpose or direction to the research.
To put it differently, a broad problem area does not highlight the specific problem
that exists. Unless the precise problem is identified, a solution to it cannot be found.
This is akin to an individual going to a doctor saying he is losing weight (broad
problem). Unless the physician can locate the reason for this weight loss (define the
problem), the situation cannot be rectified.
10. Offer a clearly focused problem statement in the broad area of corporate culture.
What constitutes corporate culture? Or,
How does corporate culture influence employee performance?
11. After studying and extracting information from all the relevant work done
previously, how does the researcher know which references, articles, and
information should be given prominence in the literature survey?
The mass of information extracted from the various published research and
technical and other reports, will indicate to the researcher the key variables that need
to be considered in the particular situation where the problem has been identified.
The choice of the variables for inclusion in the study will be a function of the
frequency with which they are repeatedly found to be significant in the various
research studies, the relevance of the variables to the current research context, and
considerations of parsimony. Having decided on the key variables for inclusion in the
study, the researcher can then integrate the information found in the studies that
discuss these variables. Other studies which had equally relevant variables but which
had to be excluded from the current research for certain valid reasons should also be
briefly discussed. The reasons for their exclusion should be explicitly stated in the
literature survey section.
12. Below is the gist of an article from Business Week. After reading it, (a) identify the broad
problem area, (b) define the problem, and (c) explain how you would proceed further.
While Chrysler’s minivans, pickups, and sports utilities take a big share of the truck
market, its cars trail behind those of GM, Ford, Honda, and Toyota. Quality problems
include, among other things, water leaks and defective parts.
a. The broad problem is that the Chrysler cars are lagging behind in market share.
b. Problem statement: How can the market share of Chrysler cars be improved?
c. It is best to interview the users of GM, Ford, Honda, and Toyota car users and obtain
from them their reactions – both positive and negative ‐ to the cars they use and why
they prefer them. Similar reactions from the users of Chrysler cars should also be
gathered. One should proceed further based on the analysis of these responses.
13. Comment on the following:
From 1932 to 1972, a research study was conducted in Tuskegee, Alabama, to chart
the effects of withholding treatment to African American men with syphilis.
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This research smacks of a totally unacceptable and unethical approach to the
investigation.
14. What is the problem statement in the following situation?
Employee Loyalty
Companies benefit through employee loyalty. Crude downsizing in organizations
during the recession crushed the loyalty of millions. The economic benefits of loyalty
embrace lower recruitment and training costs, higher productivity of workers,
customer satisfaction, and boost the morale of fresh recruits. In order that these
benefits may not be lost, some companies, while downsizing, try various gimmicks.
Flex leave, for instance, is one. This helps employees receive 20% of their salary, plus
employer‐provided benefits while they take a 6‐12 month sabbatical, with a call
option on their services. Others try alternatives like more communication, hand‐
holding, and the like.
Problem statement. How can employee loyalty be maintained during periods of
downsizing?
15. How would you define the problem in the following case?
Accounting Gets Radical
The GAAP (Generally Accepted Accounting Principles) do an unacceptable job of
accounting for the principal activities of the Information Age companies. Today,
investors are in the dark because the accounting is irrelevant. The basic purpose of
accounting is to provide useful information to help investors make rational
investment, credit, and similar decisions, but today’s most important assets and
activities – intellectual capital and knowledge work – are totally ignored. Professor
Robert A. Howell wants to reform the accounting system with the goal of making clear
the measurement of how companies produce cash and create value.
Problem Definition: What is the best way to improve the accounting system in the
Information Age that would furnish useful data and information to investors to make
rational decisions?
Practice Projects
Answers will vary.
Discussion Questions
1. Because literature survey is a time‐consuming exercise, a good, in‐depth interview
should suffice to develop a theoretical framework. Discuss this statement.
Literature survey is an important though time‐consuming exercise and has to be
done for several reasons. Even an in‐depth interview may not surface some important
factors that may be relevant for finding answers to the problems. In other words,
certain critical factors may be overlooked both by the interviewee and the researcher,
in which case no solution to the problem will emerge even after the research findings
are implemented. A literature review will sensitize and make the researcher aware of
all the important factors that have been found to be related to the problem in past
studies. It will also help the researcher eliminate trivial factors or variables from the
Problem Statement:
How can brand awareness be brought about to increase the revenues of
Holiday Inn?
Theoretical Framework
Only after Oliver has understood how the different classifications would be
important to the three classes of intended clients through survey data, can a
meaningful theoretical framework be developed. But, based on what information is
currently available, the following framework can be attempted.
The nature of the building facilities, how the buildings are maintained, and the
quality of service provided – the three independent variables – would differentiate the
three distinct types of Holiday Inn facilities and increase brand awareness among the
users. The better the buildings, the better their maintenance, and the more
differentiated the services provided, the greater will be the perceived differences in
the three types of Holiday Inn facilities by clients. However, if the Franchise owners do
not cooperate in highlighting these differences to clients, no amount of the
improvements made in the independent variables will help to increase the brand
awareness. It is only when the Franchise owners actively promote the idea of
differentiated facilities‐ the moderating variable – can the brand awareness be
increased, and as a consequence, the revenues.
Hypotheses
1. The more differentiated the building facilities, the more the brand awareness.
2. The more differentiated the maintenance of the facilities, the more the brand
awareness.
3. The more differentiated the services to the clients, the more the brand awareness.
4. Differentiated building facilities, maintenance, and service will influence brand
awareness only if the Franchise owners cooperate and actively promote the idea of
differentiation. If they don’t, no amount of differentiation of the three independent
variables will help clients to understand the differentiation (increase brand
awareness).
Exposure to smoking in movies Attitude toward smoking Smoking intentions
Identification with a film character
10. Develop a theoretical framework for the following case.
Once given, perks are extraordinarily hard to take away without sapping employee
morale. The adverse effects of these cuts far outweigh the anticipated savings in
dollars. Research has shown that when the reason behind the cuts is explained to
employees, morale does not drop.
Perks (IV) boost the morale of employees (DV) while, understandably,
withdrawing the same saps it. However, if the reasons for the cuts in perks (MV) are
explained to the employees, they see the logic behind the cuts and their morale is not
affected. Thus, only when the reason for the cut in perks is explained to employees,
does their morale not sag.
11. Product placement is a form of advertising in which a company’s products and
name are intentionally positioned in motion pictures, television programs, radio
broadcasts, and the like. Product placement can take many forms: verbal mentions
in dialogue, actual use by a character, or visual displays (for instance a company logo
on a vehicle or billboard).
Develop a theoretical framework on this issue, based on a review of the current
literature. This framework should include:
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- a specification and definition of an appropriate dependent variable;
- a conceptual model that describes the relationships between the dependent
variable, at least one independent variable, and either a moderating or a mediating
variable;
- a theory on why you would expect these relationships to exist;
- an appropriate number of testable hypotheses.
Answers will vary.
Answers to Exercises 4.1 To 4.14 in the
Text Book
Exercise 4.1
The dependent variable is organizational performance because it is the primary
variable of interest to the applied researcher, who wants to increase the commitment
of the members in the bank.
Exercise 4.2
The dependent variable is product desirability.
Exercise 4.3
VARIABLE LABEL REASON
Production Dependent variable Main variable of interest
Supervision Independent variable Help to explain the variance in production
Training Independent variable
Explanation
Production is the dependent variable because the manager seems to be
interested in raising the level of production of workers. The manager wants to explain
the variance in production levels through the two independent variables – supervision
and training.
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Exercise 4.4
VARIABLE LABEL REASON
Gains Dependent variable Variable of primary interest
Buying at right time Independent variable Explain the variance in gains
Selling at right time Independent variable (i.e. benefit)
Explanation
Gains or benefit from stock trading is the dependent variable. Buying stocks at
the opportune time and selling them likewise, are the two independent variables
because these two are expected to influence the gains (benefits) derived from stock
trading. That is, when stocks are bought and sold at the right times, there will be gains
or benefits derived.
Exercise 4.5
VARIABLE LABEL
Productivity Dependent variable
Off‐the‐job classroom training Independent variable
Age Moderating variable
Explanation
The main variable of interest to the manager is productivity ‐ the dependent
variable ‐ the variance in which is expected to be explained by the independent
variable, off‐the‐job classroom training. The more off‐the‐job training given to the
workers, the greater their productivity. However, only those who are under fifty years
of age would increase their productivity with increased off‐the‐job training. This will
not be true for those who are over fifty years of age since their interest in classroom
training and the like will not be high. Thus age is the moderating variable.
Exercise 4.6
VARIABLE LABEL
Sales performance Dependent variable
Intensity of E‐Business adoption Independent variable
Exercise 4.7
Situation 1
Motivation to Work as an Independent Variable
The performance of employees is influenced by their motivation to work.
Situation 2
Motivation to Work as an Intervening Variable
Employees perform better when they are given challenging jobs, because such jobs
tend to motivate them to work.
Situation 3
Motivation to Work as a Moderating Variable
The performance of employees with low levels of motivation to work will not improve
despite increases in job challenge.
Exercise 4.8
VARIABLE LABEL
Problems Dependent variable
Following Accounting Principles Independent variable
Confusion Intervening variable
Experience in Book Keeping Moderating variable
Explanation
The extent to which accounting principles are followed – the independent
variable – explains the variance in the dependent variable problems for the
organization. If individuals do not follow the accounting principles, confusion ensues
(intervening variable that results as a consequence of the independent variable at
time T2). But the failure to follow the principles will result in confusion and problems
only for those individuals who have no experience in book keeping. Those who have
Exercise 4.9
VARIABLE LABEL
Morale Dependent variable
Working conditions Independent variable
Pay scale Independent variable
Vacation benefits Independent variable
Side income Moderating variable
Happiness Intervening variable
Explanation
The independent variables of improved working conditions, better pay, and
vacation benefits influence the dependent variable, morale. When these three
independent variables are high in a work situation, then morale is also high. However,
increased pay will not increase the morale of all workers. Only those who do not have
good side incomes will experience greater happiness (the intervening variable) when
their pay is increased, and their morale also increases. For others, the relationships
between pay and morale will not hold good. The intervening variable, happiness, is a
function of high pay (for those without side incomes). It clarifies the relationship
between pay and morale.
Exercise 4.10
Problem Statement
What are the benefits of using avatars as company representatives on commercial Web sites?
Conceptual Model
Involvement
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Informative Site Satisfaction with
Avatar Presence the Company
Entertaining Site Purchase Intentions
Exercise 4.11
Problem Statement
Can cancer patients’ successful recovery be improved through quick and correct
diagnosis, carefully following the doctor’s instructions, and keeping the patients in
peaceful and quiet surroundings?
Theoretical Framework for Exercise 4.11
Cancer patients’ successful recovery is of main interest to the study, and
successful recovery is expected to be predicted by three independent variables. Thus,
recovery is the dependent variable in the study and the three independent variables
are: (1) quick and correct diagnosis by the doctor; (2) careful following of instructions
by the nurses; and, (3) peace and quiet in the vicinity. An intervening variable in the
situation is rest, and a moderating variable is the stage of cancer.
When the disease is quickly and correctly diagnosed by the doctor as soon as
the patient comes in for the initial check‐up, the chances of the patient being
successfully cured of cancer are greater, since the cancerous growth would then be
arrested in time. Also, when the nurses carefully follow the instructions of the doctor
and administer to the patient the proper medicines at the right time, give them the
diet as prescribed by the doctor, etc., the patients will recover without relapses. The
human system needs certain medical, dietary and other aids to recover, which need to
be administered at the right time and in the right quantities, and when this is done,
the patients’ recovery is almost assured. Peace and quiet in the vicinity of the patients
will allow the patient to rest properly, without any disturbances, which in turn, would
help the successful recovery of the cancer patient since the body would now have a
chance to build new healthy cells through the rest created by the peaceful
surroundings. Thus, rest is an intervening variable, which is facilitated by the peaceful
and quiet surroundings.
While the three independent variables of diagnosis, following instructions, and
peace and quiet would help the patients to successfully recover from cancer, these
three will not influence the recovery for those patients who come for treatment at
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advanced stages. In other words, only those cancer victims who come for treatment at
the early stages of the disease would be helped to recover successfully when the
doctor diagnoses the disease correctly and quickly, the nurses follow the doctor’s
instructions carefully, and the patients are kept in quiet and peaceful surroundings.
Those coming for treatment while in the advanced stages will not be helped.
Exercise 4.12
1. Ho: There is no relationship between working conditions and the morale of employees.
HA: If working conditions are improved, then the morale of the employees will also
improve.
2. Ho: There is no relationship between vacation benefits and employees’ morale.
HA: Better vacation benefits will improve employees’ morale.
3. Ho: There is no difference in the relationship between pay and happiness among those
who have side incomes and those who do not.
HA: Only those who do not have side incomes will become happier if their pay is
increased.
4. Ho: There is no relationship between happiness and morale.
HA: Happiness and morale are positively correlated.
5. Ho: Working conditions, vacation benefits, and pay have no influence on the morale of
employees.
HA: Working conditions, vacation benefits, and pay all have a positive influence on
morale.
Problem Statement
How can the job performance (output) of the employees be increased through
enriched jobs and rewards?
Theoretical Framework
Job performance is the main variable of interest since the production manager
is interested in increasing the output levels of employees. Job performance is, thus,
the dependent variable. Job enrichment and rewards are the two independent
variables which directly influence performance through the intervening variables of
motivation and satisfaction. However, the valence of rewards to the recipient
moderates the relationship among rewards, motivation, satisfaction and performance.
When the jobs done by the workers are such that they are more challenging
and utilize all the skills that the workers have, then the workers will be both satisfied
that they are able to use the skills they possess, and be motivated to engage in work
behavior. When employees are thus motivated and satisfied, their performance levels
will be high. Also, motivation and satisfaction will mutually influence each other. That
is, when satisfaction is high, motivation will be high, and the higher level of motivation
will, in turn, increase satisfaction. Thus, the two will mutually influence each other,
and both together will influence performance. If, on the other hand, the job is dull and
repetitive, employees will not derive any satisfaction at the workplace since they will
be bored, and their inclination to engage in work behaviors (motivation) will be low.
When employee satisfaction and motivation are low, their levels of output
(performance) will also be low.
Increased rewards will also offer employees both satisfaction and motivation,
because employees will know that the effort put in by them is recognized and
rewarded. This increased satisfaction and motivation will spur them on to perform
even better since they will now have more zeal and enthusiasm. However, the
relationship between increased rewards and the intervening variables of motivation
and satisfaction will hold good only for those who desire and value the rewards
dispensed by the organization. Those recipients who do not find the rewards valuable
or desirous will not be turned on by the rewards, and their levels of satisfaction,
motivation, and performance will not be enhanced. The valence of rewards thus
moderates the relationship between rewards and the intervening and dependent
variables.
Hypotheses
HA1: If the job is enriched and utilizes all the skills possessed by the employee, then
employee satisfaction will be high.
HA2: If the job is enriched and utilizes all the skills possessed by the employee, then
employee motivation will also be high.
HA3: There will be a positive correlation between satisfaction and motivation.
HA4: Greater rewards will influence motivation and satisfaction only for those
employees who find the rewards valent; not for the others.
HA5: Satisfaction and motivation will positively influence performance.
HA6: The more enriched the job and the greater the skills utilized by the job, the higher
the level of employee performance.
Exercise 4.14
Problem Statement
How can minority women be retained in organizations?
Theoretical Framework
Retention of minority women is the main variable of interest to the study, and
hence, is the dependent variable. The independent variables that are likely to explain
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the variance in the retention of minority women are: (a) influential mentors willing to
help, (b) informal networking with influential colleagues, (c) role models, and (d) high
visibility projects. The intervening variable is satisfaction.
When influential officials in the system are willing to serve as formal or informal
mentors minority women can learn the ropes for progressing in the organization.
When women can network with influential colleagues, they will learn a lot about the
political system of the organization and know where and when there are opportunities
to advance. Role models help women to emulate the characteristics necessary to
climb the ladder of success in the system. When women work on high visibility
projects, they attract the attention of those in power and are likely to be promoted to
higher level positions.
When the above four factors are absent in the work environment,
dissatisfaction results due to the frustration of not having avenues for advancement.
Dissatisfaction, which surfaces as a function of the absence of the four independent
variables, is then the intervening variable which enables us to see why women quit the
organization. It should, however, be noted that not all dissatisfied minority women
leave the organization. Only those who have the resources and confidence to start
their own business leave the institution. The others remain trapped in the system.
Thus, wherewithal to start own business becomes the moderating variable.
More Exercises on Theoretical Framework
(with Answers)
Note: These can also be used as exam questions.
I. Develop a theoretical framework for the following situation and state one
testable hypothesis in the null and the alternate.
A school administrator is interested in finding how the threatened teachers’
strike can be averted. He knows that pay demands and the classroom’s physical
environment are the two main issues in the situation. He, however, feels that these
two are not major concerns for the teachers who are extremely dedicated to teaching.
Hypothesis:
H01: Dedication to teaching will not alter the relationship between the independent
variables of pay and classroom environment and the dependent variable of teachers’
decision to go on strike.
ANSWER:
a. Problem Statement
Would pay and drinking influence absenteeism?
b. Theoretical Framework
Absenteeism is the dependent variable, the variance in which is to be explained
by the two independent variables, pay and weekend drinking. The more the pay
received by workers, the more they tend to be lethargic (intervening variable),
spending their time lazing around in the house, since they have enough money to take
care of their immediate needs without working. They thus tend to remain absent.
Excessive drinking during the weekend also contributes to absenteeism on Monday
mornings, since the hangover from the weekend drinking (the intervening variable)
would persist until late on Monday, which would prevent them from going to work.
However, for those who have a high tolerance for liquor, hangover will not be a
problem. In other words, tolerance for drinks is the moderating variable which has a
contingent effect on the relationship between the extent of drinking and the extent of
hangover people have. When people have hangovers, they will tend to remain absent
c. Hypotheses:
HA1: The higher the pay of the worker, the higher will be the rate of his absenteeism
from work.
HA2: Only for those who have a low tolerance for liquor, will heavy drinking lead to
hangover, not for others.
HA3: Hangover due to heavy weekend drinking and absenteeism will be positively
correlated.
3.a. With the following variables, develop a theoretical framework, using one of the
variables (appropriately) as an intervening variable, and one as a moderating variable.
1) Job level (i.e., managerial versus non‐managerial levels);
2) Loyalty (extent of loyalty felt for the organization in which the employee works);
3) Age (of employee);
4) Length of service (of employees);
5) Pride in working for the organization;
6) Organizational commitment (involvement with the system);
7) Lust for job hopping.
b. Develop three hypotheses based on the theoretical framework, one of which should
include the intervening variable, and another the moderating variable.
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c. What is the problem statement for which you have developed your theoretical
framework?
Answer:
a. Theoretical Framework
The four independent variables ‐ job level, age, length of service, and pride in
working for the organization ‐ influence the organizational commitment of the
members in work systems. Persons holding highly responsible positions tend to get
committed to the organization since they help shape the organization through their
policies and decision‐making. Generally, older persons tend to be more loyal to the
place where they work since opportunities to move on to other organizations become
limited. Those who have served for a long time in the organization would also be more
loyal to the organization (IV) and hence get committed to it. If one is proud of being a
member of the organization, naturally the individual’s loyalty to the system (of which
he is a part) would increase. We can also expect to find a correlation between length
of service and employees’ pride in working for the organization. The longer employees
work for the organization, the more they would tend to feel that they are an integral
part of the organizational system and feel they belong to it. These feelings, in turn, will
develop a sense of loyalty and attachment to the system. Once loyalty is developed,
commitment to stay in the organization and doing one’s best for the organization
would increase. However, high position, pride in working for the organization, age,
and length of service, would not be instrumental in developing the organizational
loyalty of such members as have a great adventurous spirit and a great desire to move
from one job to another in different organizations. Thus, lust for job hopping would be
the moderating variable which influences the relationship between the independent
variables and the intervening variable, and thus, the relationship between the
independent and the dependent variables.
b. Hypotheses:
HA1: Only for those employees who do not have a lust for job hopping, would job level,
age, length of service, or pride in working for the organization be correlated to their
feelings of loyalty for the organization.
HA2: The more the employees are loyal to the organization the stronger will be their
sense of commitment to the organization.
HA3: The longer people work for the organization, the more their feelings of pride in
working for the organization are likely to be.
c. Problem Statement:
What factors would account for employees’ commitment to the organization?
4. Develop a theoretical framework and three hypotheses for the following statement.
People high in their Need for Achievement (N.Ach) and who have high
Protestant Work Ethic values, will be highly motivated to work. When they get
motivated, they also slowly become involved in their jobs.
Hypotheses
HA1: The higher the Need for Achievement, the greater will be the level of motivation.
HA2: The greater the Protestant work ethic values people hold, the greater will be their
level of motivation to work.
HA3: The greater the motivation in individuals, the greater their level of job
involvement.
5. Here are eight variables:
1) Understanding Student Needs (by teacher);
2) Developing appropriate teaching strategies (by teacher);
3) In‐class examples and exercises;
4) Student entry level skills;
5) Student understanding;
6) Student exam performance;
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7) Difficulty of exam;
8) Stress.
a. With these eight variables, develop a Theoretical
Framework, treating variable #4 as a moderator, and variable #5 as an intervening
variable.
b. Develop four hypotheses.
Answer:
Theoretical Framework
a. The variance in the performance of students in the exam can be accounted
for by the four independent variables – teacher’s understanding of the needs of the
students, the different teaching strategies developed by the teacher, the number of
in‐class examples and exercises that the teacher gives, and how difficult the exam
itself happens to be. When the teacher understands students’ difficulties and needs in
terms of coaching and evolves appropriate teaching strategies in order to meet the
needs of the students to understand what is being taught, student understanding will
increase. In addition, if the teacher uses several examples to put across the points and
gives exercises in class to test the extent to which students have understood, then the
students’ level of understanding of what is being taught will increase. However, the
entry‐level skills of the students should be sufficiently adequate to enable them to
understand what is being taught. If the students’ entry level skills and comprehension
are very low, then no amount of the teacher making efforts to understand student
needs, evolving strategies, and giving new examples and exercises, will help the
student to understand better, since they do not have the basic prerequisite knowledge
for understanding what is going on in the class. If, however, the entry level skills are
adequate, then the teacher taking all the above steps would help enhance student
learning. When students’ level of understanding increases, their level of performance
in the exam will also be better. The level of difficulty of the exams is also another
factor that would account for the variance in student performance. The more difficult
the exam, the more stressed the students will feel while answering the exam, and the
lower will be their performance level in the exam. Thus, stress is the intervening
variable here.
b. Hypotheses
HA1: Only for those who have the requisite entry level skills, will more in‐class exercises
and examples help increase the students’ level of understanding of the subject taught.
HA2: The more difficult the exams, the greater the stress experienced by the students.
HA3: The higher the level of stress experienced by the students, the lower their level of
performance in the exam.
HA4: When students understand the subject better, they will perform better in the
exam.
Marketing
1. Factors Influencing Decision to Purchase
The four independent variables ‐ quality, price, felt need for the product, and
brand name ‐ influence customers’ decision to purchase products. When a product is
of good quality, consumer confidence in the product grows (the intervening variable),
and the stronger becomes the decision of the consumer to purchase the product. A
reasonable price and a good brand name also induces the consumer to purchase the
product. Of course, the more the consumer needs the product (such as basic needs or
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essentials), and the better the price, the quality, and the brand name, the greater the
prospect for the consumer making the decision to buy the product. Usually, the better
known the brand name, the greater the desire to purchase that product. However if a
prospective consumer happens to have a strong brand loyalty for a brand other than
the one marketed, then, the brand name of the product will not influence the
purchase decision. Thus, only for those who do not have a strong brand loyalty to a
different product, will the relationship between brand name (IV) and purchasing the
product (DV) hold true.
2. Factors Affecting Coupon Redemption Rates
Coupon redemption, a strategy for spurring sales, is the variable of interest to this
study. Needless to say, this sales strategy will be effective when the distribution
channels for the product in question are well planned, when there is sufficient
advertising to let the consumers know about the promotion, when the package clearly
indicates the coupon redemption scheme with the expiration date, if any, and the
packaging of the product is of the right size (neither too big nor too small to serve the
needs of the consumer). Of course, all these factors will not help, unless there is an
established frequent need for the product for consumers (Moderating variable).
Accounting
3. Factors Influencing the Selection of Auditors by Companies.
The influence of the reputation of the auditing firm, the fees charged, and the
quality of service rendered, on the selection of the auditor for a firm is quite simple.
The greater the reputation of the auditing firm, the more the likelihood of its being
selected, the better the quality of service rendered, and the more reasonable the fee
that is charged, the more likely is a particular auditing firm going to be chosen.
Interaction is the intervening variable that helps us to see how the proximity of the
auditing firm to the business plays a part in auditor selection. If the auditing firm is
proximal to the business, the closeness encourages frequent interactions between the
two parties to have matters clarified at low cost. This, in turn, influences the business
to choose an auditing firm that is proximal. However, the very big business companies
will not choose any but the big eight Accounting firms. Hence, for them, the choice of
auditors from any but the big eight will not be influenced by the independent
variables in the model. Thus, the size of the business firm becomes the moderating
variable.
.
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Finance
5. What are the most important factors that influence the profits of a firm?
6. Critical Factors that Influence the Value of a Company’s Stock.
The value of the company’s shares is of interest to the study. If a company sustains
its high earnings year after year, its credibility as a successful company would be
enhanced and the public will believe it has further prospects for growth (intervening
variable). This will help to explain how sustained earnings will increase the stock value
of the company. Faith in the managerial competence of the key people in the
company will hold the stock value high, even in times of mild recession. Thus the
perceived managerial competence of the individuals in the company would influence
the stock value.
Usually, the higher the dividends, the higher the stock value; however, if the higher
dividend declared is perceived as a stunt to hoodwink the public, the stock value will
not go up. Only when the public expects that the dividend policy will be maintained by
management in the future (moderating variable), will the stock value of the company
be influenced by the higher dividends that are declared.
Discussion Questions
1. What are the basic research design issues? Describe them in some detail.
Basic research design issues are primarily a function of the purpose of the study
(whether it is exploratory, descriptive, or hypothesis‐testing), and relate to such
aspects as the type of study to be done (causal or correlational), the setting in
which it will be done (natural or contrived), how much researcher control will have
to be exercised (very little in the case of field studies, to very much in the case of
experimental designs), how many times data will have to be collected (one shot
versus longitudinal), and the unit of analysis – i.e. the level at which data will be
aggregated. For most correlational studies, the field setting with minimal
researcher influence will be the choice. Most field studies are generally cross‐
sectional, though some could be longitudinal. Longitudinal studies, though better
for understanding the dynamics of the situation fully, also consume more time and
resources. Thus, the costs of a study also determine some of the design choices.
The unit of analysis depends on whether the research question focuses on
individuals, dyads, groups, or entire systems.
2. Why is it important to consider basic research design issues before conducting the
Answer
This would be a causal, hypothesis‐testing study. It will be a field experiment,
using one or two restaurants to manipulate incentive plans and see if this causes an
increase in profit margins in those restaurants. Because of the manipulation, there will
be some researcher interference with the natural flow of events. The time horizon for
the study would be longitudinal since data will be obtained on sales, profits, etc., both
before and after the manipulation. The unit of analysis would be the restaurant.
Scenario C
A manager is intrigued why some people seem to derive joy from work and get
energized by it, while others find it troublesome and frustrating.
This would be a correlational, hypothesis‐testing, field study with minimal
researcher interference. It will be a one‐shot study and the unit of analysis will be
individuals.
Exercises
Doing the exercises in the chapter will help the student to apply the basic
elements of research design to different scenarios. More in‐class exercises are offered
at the end of this chapter (with answers), that can be used either in the classroom or
as exam questions.
Exercise 5.1
A foreman thinks that the low efficiency of the machine tool operators is
directly linked to the high level of fumes emitted in the workshop. He would like to
prove this to his supervisor through a research study.
1. Would this be a causal or a correlational study? Why?
2. Is this an exploratory, descriptive, or hypothesis‐testing (analytical or predictive)
study? Why?
3. What kind of a study would this be: field study, lab experiment, or field experiment?
Why?
4. What would be the unit of analysis? Why?
5. Would this be a cross‐sectional or a longitudinal study? Why?
1. This would be a causal study because the operator wants to prove to the supervisor
that the fumes are causing operators to be low in their efficiency. In other words, the
machine tool operator is trying to establish the fact that fumes cause low efficiency in
workers.
2. This is an analytical study because the machine tool operator wants to establish that
fumes cause low efficiency and convince his workshop supervisor through such
analysis (i.e. establish cause and effect relationship).
3. This would be a field experiment. Though the study would be set up in the natural
environment of the workers where the work is normally done, the amount of fumes
will have to be manipulated while other factors, such as atmospheric pressure, may
have to be controlled. Because of the location of the study, it will be a field
experiment.
4. The unit of analysis would be the individual operators. The data will be collected with
respect to each operator and then the conclusion will be made as to whether the
operators are less efficient because of the fumes emitted in the workshop.
5. This would be a longitudinal study because data will be gathered at more than one
point in time. First, the efficiency of the operators would be assessed at a given rate of
fume emission. Then the fumes emitted would be manipulated to varying degrees,
and at each manipulation the efficiency of the workers would again be assessed to
confirm that the high rate of fume emission causes a drop in operators’ efficiency.
Exercise 5.3
You want to examine how exposure to thin or heavy models in advertisements influences a
person’s self‐esteem. You believe that the effect of exposure to models in advertisements
depends on the extremity of the model's thinness or heaviness.
Discuss the design decisions that you as a researcher will make to investigate this issue,
giving reasons for your choices.
An experimental study (causal study) will be needed since the goal of the study is to
test a cause‐and‐effect relationship.
A pretest will help you to select advertisements containing female models for the
following four conditions: moderately thin, extremely thin, moderately heavy, and
extremely heavy;
- participants view an advertisement booklet containing ads with female models.
- participants rate each model in terms of size (‐5 =extremely overweight, +5 =
extremely thin) and attractiveness (‐5 = extremely unattractive, + 5 = extremely
attractive).
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Based on these scores, you will be able to select advertising models in each condition.
Note that models should differ from each other in terms of size but not in terms of
attractiveness (you have to perform post hoc comparisons to test for this).
In the actual experiment, participants must be randomly assigned to one of the four
conditions of the 2 (model size: thin vs. heavy) and (extremity of model size: moderate
vs. extreme) between‐subjects design. Participants are then provided with a booklet
containing ads: ads with models, pertaining to their condition, and filler ads with no
models (randomize the order of the ads). Eventually (after one or more filler tasks)
participants complete a self‐esteem scale such as for instance the Appearance Self‐
Esteem Scale (Heatherton and Polivy 1991).
Exercise 5.4
You want to investigate the specific effects of specific emotions on customers'
behavioral responses to failed service encounters across industries.
Discuss the design decisions that you as a researcher will make to investigate this
issue, giving reasons for your choices.
Because it is difficult (and probably unethical) to induce specific emotions in an
experiment a field study seems to be the more logical choice. Note however, that
when you use a field study, it is very important to control for variables that might
potentially bias your results such as complaint success likelihood and switching costs.
The critical incident technique is a method that may help you to collect a wide variety
of negative experiences with service organizations.
Exercise 5.5
War on Cancer
Dr. Larry Norton of Memorial Sloan‐Kettering Cancer Center predicts that cancer
treatment will undergo major changes. Several drugs are being developed to battle
cancer without harming healthy tissues. It is a question of discovering which of these
drugs does the job best.
Design a study that would help find which drug would do the trick.
An experimental study (causal study) of the Solomon Four‐Group design will be
needed. A count of the healthy tissues in cancer patients at more or less the same
stage of cancer progress will first be taken, with about 20 patients in each group. Each
group, but the control group, will be treated with the different new drugs. The cancer
cell count will be taken both before and after treatment for a period of time (say, 3 to
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6 months) to see which has the most beneficial effect. Thus it would be a longitudinal
study with some manipulation (drug variation) and control (matched or randomized
groups). The unit of analysis will be groups.
More in‐Class Exercises on Research
Design (with Answers)
Several situations are given below. For each situation, respond to the following
research design questions.
a. What would be the nature of the study that would be designed ‐ Exploratory,
descriptive, or hypothesis‐testing?
b. Give reasons for your answer to (a) above.
c. Would it be a Field study, Comparative study, Lab experiment or Field experiment?
d. Would it be a causal or correlational study?
e. Justify the reasons for your answer to (d).
f. Would it be a longitudinal or cross‐sectional study?
g. How would you explain your answer to (f) above?
h. What would be the unit of analysis?
i. Defend your answer to (h) above.
1. A researcher wants to test the theory that low levels of oxygen in the mines is the
single most important factor that tires miners easily.
ANSWER:
a & b: Hypothesis‐testing, because the researcher wants to analyze and test if low
levels of oxygen would, in fact, cause tiredness in miners.
c: A Field Experiment, because there would be manipulation of the levels of oxygen
in the natural environment of the workers.
d & e: Causal study, because the researcher wants to see if low levels of oxygen
cause tiredness in miners. He wants to establish a cause and effect relationship
between the independent and the dependent variables.
f & g: It would be a Longitudinal study because data on tiredness will be collected
from the same batch of workers before and after each manipulation of the extent of
oxygen injected into the environment.
h & i: The unit of analysis will be individual miners because the data will not be
Discussion Questions
1. What is meant by operational definition, when is it necessary, and why is it
necessary?
Operational definition refers to the process of defining an abstract concept in such a
manner that it can be measured. It is necessary because it allows us to measure
subjective characteristics and phenomena which do not lend themselves to objective
measurement.
2. Why is it wrong to use correlates of a concept to measure that concept?
Because if we use the correlates of a concept to measure it, we do not measure the
right thing. Instead of measuring the concept that we want to measure we will
measure variables we do not intend to measure nor were we interested in.
3. Operationally define the following:
a. Customer loyalty
Airline example (Agustin and Singh 2005)
• I would continue flying with this airline.
Exercise 6.2
Try to come up with two unidimensional and two multidimensional abstract
concepts. Explain why these concepts have either one or more than one dimension.
Answers will vary:
Examples of multidimensional scales:
- service quality (dimensions: responsiveness, reliability, assurance, empathy,
and tangibles)
- store loyalty (dimensions: cognitive, affective, and connotive loyalty)
- power bases (dimensions: reward power, coercive power, legitimate power,
referent power, and expert power)
Examples of unidimensional scales:
- anger
- price perception
- endorser attractiveness
- buying intention
Exercise 6.4
Compare your service quality measure to the measure of Zeithaml, Parasuraman,
and Berry (1988) presented in Journal of Retailing.
a. How does your measure differ from this measure in terms of dimensions and
elements?
Service quality: the consumer’s overall impression of the relative inferiority/
superiority of the organization and its services (Bitner and Hubert, 1994).
Zeithaml, Parasuraman, and Berry (1988) have operationalized service quality by
assessing service and performance on 22 items believed to represent five key
dimensions (reliability, responsiveness, assurance, empathy, and tangibles) of service
quality (you can find the paper on Valerie Zeithaml’s webpage:
http://areas.kenan‐flagler.unc.edu/Marketing/FacultyStaff/zeithaml/Selected%20Publications/Forms/AllItems.aspx.
Reliability items:
1. When XYZ Company promises to do something by a certain time, it does so. 2. When you have a
problem, XYZ Company shows a sincere interest in solving it. 3. XYZ Company performs the service right
the first time. 4. XYZ Company provides its services at the time it promises to do
so. . 5. XYZ Company keeps customers informed about when services will be performed.
Responsiveness items:
1. Employees in XYZ Company give you prompt service.
2. Employees in XYZ Company are always willing to help you.
3. Employees in XYZ Company are never too busy to respond to your request.
Assurance items:
1. The behavior of employees in XYZ Company instills confidence in you.
2. You feel safe in your transactions with XYZ Company.
3. Employees in XYZ Company are consistently courteous with you.
4. Employees in XYZ Company have the knowledge to answer your questions.
Empathy items:
1. XYZ Company gives you individual attention.
2. XYZ Company has employees who give you individual attention.
In‐Class Exercises
Operational Definition
Beyond the exercises in the book, you might want students to operationally define
some other concepts to see if they have understood how to measure variables. A list
of further concepts for use as in‐class exercises is provided.
While discussing these exercises, many opportunities will present themselves, where,
as earlier mentioned, students would define the correlates of a concept as its
dimension. The more the in‐class exercises, the greater will be the clarity provided to
students.
Advertising effectiveness
Brand Loyalty
Compensation scheme
Competence
Group support
Intention to Turnover
Job skills
Life satisfaction
Media Trust
Mental health
Discussion Questions
1. Describe the four types of scales.
The four scales are nominal, ordinal, interval, and ratio.
The nominal scale separates individuals or items into categories – e.g. seniors and
juniors. The ordinal scale helps to rank order the separated items. The interval scale
helps to determine the extent to which the items are different from each other. In
other words, is the difference between item 1 and 2 the same as the difference
between 4 and 5? The ratio scale helps to determine the proportion of differences
among items since it has an absolute zero origin, and is the most powerful of the four
scales.
2. How is the interval scale more sophisticated than the nominal and ordinal scales?
Whereas the nominal and ordinal scales group and rank the subjects, respectively, the
interval scale, in addition, also indicates the magnitude of the differences. The
distance between any two points on the interval scale is the same. If an individual
prefers A to B, and another prefers C to D, we know that the difference in the
10. “Whenever possible, it is advisable to use instruments that have already been
developed and repeatedly used in published studies rather than develop our own
instruments for our studies”. Do you agree? Discuss the reasons for your answer.
It is always advisable to use well‐validated instruments that have been repeatedly
used in published studies, rather than going through the cumbersome process of
developing one’s own instruments and laboriously establishing their validity and
reliability. However, simply because an instrument is used in some published studies
does not necessarily make it a good instrument. It is always wise to examine the
psychometric properties established for the instrument before using it. In case this is
not easily available, a pilot study can be conducted to see if the measures have at least
acceptable reliability.
11. “A valid instrument is always reliable, but a reliable instrument is not always
valid”. Comment on this statement.
If an instrument is valid, especially in terms of content validity, we would expect to
have a reliable instrument. However, an instrument can have both consistency and
stability, but may not be measuring what it is intended to measure – i.e. have low
validity. However, if an instrument does measure the concept that it is supposed to
measure, it will be reliable. Thus, a valid instrument will be reliable, but a reliable
instrument need not necessarily be valid.
Exercises
Exercise 7.1
Two variables that lend themselves to nominal scaling, along with mutually
exclusive and collectively exhaustive categories, are as follows:
Types of Employees in a Computer Firm
□ Accounts clerk
□ Systems analyst
Exercise 7.2
The following is an ordinal scale for consumer preferences for different brands
of beer.
Rank the following brands of beer in the order of your preference. In the boxes
provided next to each brand name, write the number that denotes your ranking. That
is, write 1 next to your favorite brand, 2 next to the next favorite one, and so on, until
each brand name has a number. If you do not drink beer at all, put a check mark ( ) in
the last box.
□ Budweiser □ Olympia
□ Coors □ Pabst
□ Michelob □ Strohs
□ Miller □ Do not drink beer at all
Exercise 7.3
One of them could be Satisfaction with Organizational Facilities provided.
To what extent are you satisfied with the following facilities provided by your
organization? Please circle the appropriate response for each item, using the scale
indicated below.
Very Satisfied 1 Somewhat Neither Satisfied 4 Very
Exercise 7.4
SCALE VARIABLE AND EXPLANATION
Nominal Buyers of a product can be nominally grouped under three categories: those who
like the product and buy, those who are indifferent to the product and buy, and
those who do not like the product, yet buy it anyway.
Ordinal Customer rank ordering of preferences for various name brands of jeans.
Interval Extent of appeal of a particular advertisement to customers on a five point scale
ranging from very little to very much. Here customers are split into five groups;
they are ranked from those who like very little to those who like very much;
there is also an assessment of the extent of the appeal; and we know that the
difference between two adjacent points in the scale have the same magnitude of
difference.
Ratio Percentage of sales increase of a product. There is an absolute zero origin (when
there is no additional sale made at all during a particular year, the sales increase
is zero), and a 10 percent increase in sales is twice as much as a 5 percent
increase. Thus this scale has both a zero origin and a measure of proportion.
Hence, it is a ratio scale.
Exercise 7.5
Develop and name the type of measuring instrument you would use to tap the
following:
a. Which brands of beer are consumed by how many individuals;
Nominal scale will be used.
The questionnaire might simply ask the name of the brand consumed by each
individual and, when the responses are received, categorize them under the different
brands, or
The popular brands can be categorized with a final item “Other” and respondents
asked to mark the one they consume.
Exercise 7.6
“The Index of Consumer Sentiment Towards Marketing described in the appendix is
formative in nature.” Comment on this statement. Explain why it does not make sense to
assess the inter‐item consistency of this scale.
Discussion Questions
1. Describe different data sources, explaining their usefulness and disadvantages.
Secondary sources of data constitute all available sources from which existing
information can be extracted. This could be published or unpublished information in
the Library, in Government or Company records, in data tapes, on the internet, etc.
Primary sources of data can be any source which provides information elicited directly
for the first time. This could be organizations, individuals, trash cans, or whatever
source from which the desired information can be obtained.
Secondary data sources are useful because they offer a base on which to build
further research without having to reinvent the wheel. Past findings can spur new
research; past data can also offer opportunities to analyze them from a different
perspective or angle. Under certain circumstances, however, secondary data might be
misleading if one does not take the changed circumstances into consideration. For
example, if old archives of national data are utilized to examine and draw conclusions
about gender differences at the workplace, this might become an exercise in futility.
The workplace has changed much now compared to 20 years ago – there are more
educated career women, their aspirations are different, their current expectations of
life are in contrast to what they were two decades ago, etc. As such, one has to be
Exercises
Exercise 8.1
A production manager wants to assess the reactions of the blue‐collar
workers in his department (including foremen) to the introduction of computer‐
integrated manufacturing (CIM) systems. He is particularly interested to know how
they would perceive the effects of CIM on:
a. their future jobs
b. additional training that they will have to receive
c. future job advancement.
Design a questionnaire for the production manager.
Questionnaire
Cria Software Enterprises
4571 Southwood Ave
Cupertino, California 94024
Date
Dear Employee,
As we had discussed in our meetings, Computer Integrated Manufacturing
(CIM) will form a part of our operations in the future. We would like to know how you
visualize certain aspects of the future environment as we introduce the changes.
Please take a few minutes to complete this short questionnaire and return it to the
Exercise 8.2
Answers may vary.
Exercise 8.3
Answers may vary.
Exercise 8.4
Answers may vary. The questionnaire should include valid and reliable scales measuring service quality,
customer satisfaction, and customer loyalty.
Exercise 8.5
Design an interview schedule to assess the Intellectual capital, as perceived
by employees, in an organization after identifying the dimensions and elements.
The dimensions of intellectual capital would primarily comprise, among other
things, the following:
The knowledge‐base of the employees;
Their know‐how
The patents owned by the organization;
The secret formulas utilized by the company (special formulas / manufacturing
process, and the like).
The extent to which the company has an edge over others, in terms of specialized
knowledge and skills.
The Unstructured Interview Schedule would basically ask for the employees’
ideas as to what the term means and what they consider are the essentials of
intellectual capital.
The Structured Interview Schedule will be on the following lines:
1. Department:
2. Nature of job:
3. Age:
Additional Exercises in Questionnaire Design
Two simple exercises on Questionnaire Design follow, and these can be used
for class discussion after the students have individually worked on them as homework
assignments. Different students can then be asked to write on the chalk board
different parts of the questionnaire – for example, the introduction, instructions to
respondents, measures for different concepts with scaling, and the end part of the
questionnaire. The class as a whole can then critique the exercise on the board. See
also Exercises 10.1 to 10.5 in the Book. These can also be used for class discussions
including discussions on possible ways of establishing reliability and validity for the
measures.
1. The Marketing Director of a pharmaceutical company wants to examine the
effects of number of sales personnel, population density, the average sales calls made
to the doctors in the region, and the average monthly sales calls made on the chemists
in the region, on the sales of the pharmaceutical products of the company. She has six
particular regions in mind. Design a questionnaire to do the study. Also discuss what
sources of data you will gather information from.
Population density can be obtained directly from the Census Bureau’s
Directory. All the other information should be readily available from the Regional Sales
Headquarter Records, or from the local offices. If necessary, a simple questionnaire
asking direct questions of the Regional Director to tap the variables could be used.
2. An R&D Project Manager wants to elicit the reactions of the machine
operators in the Production Department to three different types of machines currently
in use – Type A, Type B, and Type C. If he knows how the machinists experience these
three types in terms of ease of handling, sturdiness, flexibility for different adaptations,
Discussion Questions
1. What are the differences between causal and correlational studies?
Correlational studies are always conducted in the environment in which the events
studied naturally occur, and there is very little researcher interference with the
setting. In causal studies, however, there is much greater researcher influence, and lab
experiments are always conducted in artificially created settings. All causal studies are
longitudinal in nature, whereas most correlational studies are one‐shot studies.
2. In what ways do Lab experiments differ from Field experiments?
Lab experiments are always conducted in contrived settings, whereas, field
experiments are always conducted in the natural environment where the flow of
events normally occur. Lab experiments are tightly controlled by either matching or
randomly assigning members to the various groups. In field experiments, however,
tight controls are not possible because people or events preexist and cannot be
altered. Lab experiments offer greater internal validity but lower external validity,
whereas field experiments offer more external validity and lesser internal validity.
3. Define the terms control and manipulation. Describe a possible Lab experiment
where you would need to control a variable. Further, include a possible variable,
over which you would have no control, that could affect your experiment.
Manipulation refers to deliberate variations in the independent variable to test its
effect on the dependent variable. Control refers to the efforts made to mitigate the
contaminating effects of nuisance factors that might affect the internal validity of the
experiment.
A Possible Lab Experiment with controllable and uncontrollable factors.
A pharmaceutical company wants to test the effects of incremental doses of AZT
administered to AIDS patients, isolating them in a special hospital‐type environment.
A possible factor to control, might be the age of the patient, since older people
might react slower to certain chemicals. This nuisance factor can be controlled either
by matching all three groups for age or by randomly assigning the members to the
three groups. A possible uncontrollable factor could be a sudden flu epidemic which
might kill many of these patients and make the testing of the effects of incremental
doses of AZT impossible.
4. Explain the possible ways in which you can control “nuisance” variables.
Nuisance variables, if known, can be controlled by matching the members in all the
groups for the contaminating (or nuisance) factors. For example, if subjects’ level of
experience would be a contaminating factor for a particular experiment, members of
This study can be done in two ways. One, as a correlational field study,
obtaining data on each of the five variables above, and doing a path analysis. This will
trace the cause and effect relationship between self‐esteem and human capital, and
between human capital and earnings (productivity). This is the easiest way to trace the
causal connection between self‐esteem and human capital. A second way to conduct
the study is to first see if the three components of human capital are indeed
correlated to earnings from which an index of human capital can then be developed
based on the predictive power of each of the three variables.
A Lab study can then be conducted recruiting College students to perform a
task. An index of human capital (HC) would be first developed by giving appropriate
weighting to the three factors of education, skills, and work experience.
The causal effects of self‐esteem on human capital can be tested by randomly
assigning individuals to four groups and manipulating the self‐esteem of individuals.
This can be done by praising the intelligence of one group and telling them that the
task at hand would be child’s play for them; telling the second group, that they may
have some, but not all the necessary talent to do the task at hand well; telling the
In‐Class Exercises on Sampling Designs
What kinds of sampling designs would be used for the following?:
a. A study to get a quick idea of the medical acceptability of a new aspirin substitute
Answers
a. Purposive Judgment Sampling.
b. A Systematic sampling design (using university listing of students).
c. A Stratified Random sampling with stratification along profession, gender, age, etc.
d. Simple random sampling because of the importance attached to high generalizability.
Estimation of Population Characteristics from Sample Characteristics
The book works out a problem on the estimations of the population
characteristics from the sample characteristics for different levels of precision and
confidence. Another example that can be used in class is provided below.
Problem
1(a).You want to estimate the production days that would be lost during the
next three months by sampling the vacation intentions of a few employees. You
randomly select 36 employees in the organization and find that the average number of
days they intend taking off is 16 during the coming three Summer months, with a
standard deviation of seven (7) days. Based on these sample statistics, you want to
estimate at a 99 percent confidence level, the days that will be lost due to the entire
population of workers taking vacation time during the next three months, so that the
plant manager knows how much temporary help he should plan on hiring during the
summer months in order for work to proceed smoothly.
Calculation
S x S / n 7 / 6 1.167
μ 16 2.576 1.167
16 3.01
12.99 to19.01
If there are 100 employees in the organization expected to take vacation during
Summer, then the most optimistic estimation of the days lost through vacation time
during the summer would be (13 100 =) 1,300 days and the most pessimistic would
be (19 100 =) 1,900 days. This would mean that temporary help would be needed
anywhere between 1,300 and 1,900 days worth of labor, for production to proceed
smoothly.
1(b). Now you might want to narrow the gap in the estimation since 1,300 and
1,900 days is a wide range, and you would like more precision using the same
information that is available to you. Well, it can be done only at the cost of taking
more chances that your estimation, though more precise, may not be stated as
confidently as before. You may, however, decide to lower your confidence level to
gain more precision in your estimation. At the 95 percent confidence level, the most
pessimistic and the most optimistic estimations would range from 1372 to 1828, a
narrower range – we are now gaining more precision, i.e., narrowing confidence
interval – but only at the risk of being wrong five percent (as opposed to one percent)
of the time. We could seek a further narrower interval range at the 90 percent
confidence level (1408 to 1792), if taking a higher risk in being wrong in the estimation
is not going to be disastrous. You as a manager will have to decide on the amount of
risk you want to take by increasing or decreasing the confidence level.
Estimating Sample Size
Estimating the sample size for given levels of required accuracy and precision is
discussed in the book with examples. Further problems can be given to students in
class. A sample problem given to them could be as follows.
Problem
How large a sample do you need if you want to estimate the mean age of a
population of 100 residents and be within 3 years of the true mean with a 95 percent
level of confidence, when you know that the sample mean is 28 years and the
standard deviation is 17 years?
1.53 17 / n
1.53 n 17
n 17 /1.53
n 123
Discussion Questions
1. Identify the relevant population for the following research foci, and suggest the
appropriate sampling design to investigate the issues, explaining why they are
appropriate. Wherever necessary, identify the population frame as well.
a). A company wants to investigate the initial reactions of heavy soft‐
drink users to a new “all natural” soft‐ drink.
“Initial reactions” non‐probability sampling.
Heavy soft‐drink users: purposive sampling.
b). A gun manufacturing firm would like to know the types of guns possessed by various
age groups in Washington, D. C.
When guns are sold, the dealers are expected to maintain records of the names
and ages of the buyers, and the types of guns sold. Thus, the population frame for gun
owners can be had from the records of gun dealers in the Washington, D.C. area. Once
a complete list is compiled, a stratified random sampling of appropriate age groups
can be done, and the relevant information obtained.
c). A hospital administrator wants to examine if single parents working in the hospital
have a higher rate of absenteeism than parents who are not single.
The marital status and parental status of the employees may be available from the
records of the hospital. If so, the population frame would be the hospital records from
which the information can be directly extracted. A stratified random sampling design
can be used and a t‐test done to examine if there are differences in absenteeism in the
two groups. If the marital or parental status of the employees is not available, then a
convenience sample of those who are known to be single parents and those who are
known to be not single parents can be used to check their records for absenteeism.
d). A researcher would like to assess the extent of pilferage in materials from storage
warehouses of manufacturing firms in the East coast.
Exercises
For the situations below, what would be the relevant population and the
most appropriate sampling design? Make sure you discuss the reasons for your
answers.
Exercise 10.1
The medical inspector desires to estimate the overall average monthly
occupancy rates of the cancer wards in 80 different hospitals which are evenly
located in the Northwestern, Southeastern, Central, and Southern suburbs of New
York City.
All the 80 hospitals in the four parts of New York City form the population from
which the overall occupancy rates are to be established. A simple random sampling
design would be best suited because hospitals of different sizes, and those serving
clientele from different socio‐economic status, would then be included in the survey,
and be most representative of the population.
Exercise 10.3
The McArthur Co. produces special vacuum cleaners for conveniently cleaning
the inside of cars. About a thousand of these are produced every month with
stamped serial numbers and stored serially in a stock room. Once a month, an
inspector does a quality control check on fifty of these. When he certifies them as to
quality, the units are released from the stock room for sale. The production and
sales managers, however, are not satisfied with the quality control check, since quite
often, many of the units sold are returned by customers because of various types of
defects. What would be the most useful sampling plan to test the fifty units?
A systematic sampling design would be most useful since a probability sampling
design is called for, and also because it would be easy to locate the pieces to be
sampled since they have serial numbers and are stored according to the serial
numbers.
Exercise 10.4
A consultant had administered a questionnaire to some 285 employees using
a simple random sampling procedure. As she looked at the responses, she suspected
that two questions might not have been clear to the respondents. She would like to
know if her suspicion is well founded.
A double sampling design will be used in this case. That is, a sub‐sample of the
original sample can be approached to see whether or not the two questions were
clear to them.
Exercise 10.6
T‐Mobile is a mobile network operator headquartered in Bonn, Germany. The
company has enlisted your help as a consultant to develop and test a model on the
determinants of subscriber churn in the German mobile telephone market. Develop
a sampling plan and pay specific attention to the following aspects.
Define the target population. Discuss, in as much detail as possible, the sampling
frame and the sampling design that you would use. Give reasons for your choice.
Target population: German, T‐mobile, mobile phone subscribers.
Sampling Frame: A database of subscribers on a recent date (for instance 6 months
ago). This database will include both customers who have remained loyal to T‐mobile
and customers who have switched mobile phone providers.
Sampling design: proportionate stratified sampling with loyal customers and
customers who have switched mobile phone providers in proportion to their original
numbers in the population.
Instructional Goals
1. To make statistics come alive and become meaningful to students through examples
that they can relate to.
2. To get students to analyze data using any of the available PC software programs.
3. To impress on students that the data collected should first be edited, the blank
responses given an appropriate value, and then entered for analysis.
4. To stress the importance of getting a feel for the goodness of data after recoding.
5. To explain how the frequency distribution becomes a tool for explaining sample
characteristics.
6. To connect the application of descriptive statistics such as the means, standard
deviations, and variance to the dependent and independent variables of interest to
any study in order to get an idea of the central tendencies and to obtain a feel for the
data.
7. To make sense out of Pearson Correlations, by interpreting significant correlations,
and to sensitize students to extremely high correlations (over .8) which might cause
concerns regarding the discriminant validity of the measures.
8. To help them interpret the results they obtain from data analyses.
Exercises on Data Interpretation
Practice in the interpretation of the results of data analyses can be
encouraged through the exercises below. These can be done either as in‐class
exercises or given as take‐home assignments.
Table 1: Frequency Distributions of Sample (n = 148)
RACE EDUCATION GENDER
Non‐whites = 48 (32%) High School = 38 (26%) Males = 11(75%)
Whites = 100 (68%) College Degree = 74 (50%) Females = 37 (25%)
Masters Degree = 36 (24%)
AGE # OF YEARS IN ORG. MARITAL STATUS
< 20 = 10(7%) < 1 year = 5 (3%) Single 20 (14%)
20‐30 = 20(14%) 1‐3 = 25(17%) Married 108 (73%)
31‐40 = 30(20%) 4‐10 = 98(66%) Divorced 13 (9%)
>40 = 88(59%) >10 = 20(14%) Alternative7 (4%)
Lifestyle
Answer
The tabulation indicates the percentages on all the demographic data (as
shown in parentheses above). A profile of the respondents will be as follows.
Population and Sample
The population consisted of 3,700 clerical employees in three service
organizations. Of these a sample of 148 clerical employees was drawn. Based on the
demographic characteristics provided in the table, we can say that the majority of the
respondents are white (67.6 percent of the sample), have at least a college degree (50
percent with college degrees and 24 percent with Masters degrees), are married (73
percent), are above 40 years of age (59 percent), and have served in their
organizations for four to ten years (66 percent).
Further breakdowns of educational levels can be given, depending on the
nature of the study, and the necessity for detailed descriptions.
Table 2: Means, Standard Deviations and Other Statistics
VARIABLE MEAN STD. DEV MODE MIN MAX
Age 37.5 18 38 20 64
# of Years Married 12.1 24 15 0 32
Stress 3.7 1.79 3 1 5
Job Involvement 3.9 1.63 4 2 5
Performance 3.6 0.86 3 3 5
Answer
The mean age of the respondents is 37.5 and since the mode is also 38, it can
be presumed that many of the respondents are about 38 years old. The average
number of years the respondents have been married is about 12, with some not
married at all (minimum = 0).
The amount of stress experienced by the subjects in this sample seems to be a
little over the average, but not high (3.7 on a 5‐point scale); the same can be said for
their performance level (3.6 on a 5‐point scale). The extent of their job involvement is
close to a 4 (four) on a 5‐point scale and can be considered to be moderately high.
While there is more variance in stress and job involvement (1.79 and 1.63), the
variance in performance is rather low (.86). This would indicate that there is greater
dispersion in the experienced stress and extent of job involvement, but most of the
people have been performing at the same “just above the average” level.
We would thus describe the profile of the average worker in these three
organizations, assuming that the sample is representative of the population, as being
about 38 years old, married for about 12 years, performing at just above the average
level, fairly involved in the job and experiencing a moderate amount of stress.
Exercise #3 on Correlations
From the same research done by Ms. Jones, the following inter‐correlation
matrix is shown. Interpret these results.
b. All correlations above .50 are significant, at least at the .01 level.
Answer
Eight correlations in the above matrix are significant at least at the .05 level, of
which four are significant at least at the .01 level. Only two of the ten correlations in
the matrix are not significant.
Age and the number of years married are highly correlated (r = .86) and this is
not surprising because older people are likely to have been married for a longer
period of time than younger persons.
Older persons also experience less stress (r = .43) possibly because they have
either learned the ropes well and things do not stress them, or they are better able to
handle stress and hence hardly experience them as stress, or they are given easy jobs.
Older people are also more job involved (r =.53), but age is not related to
performance. That is, though the older employees may be more involved in their jobs
than the younger ones, they do not necessarily perform better than the latter.
Those experiencing more stress are more involved in their jobs (r = .58) and
also perform better (r = .49). The more the job involvement, the better the
performance (r = .36). The above relationships do not indicate causality, merely
correlations.
Those married for a longer period experience less stress, possibly because the
family demands are less on them since they would have settled down to a routine
family life which does not induce stress. The persons who are married for longer
periods of time are also more involved in their jobs. But the length of marriage is not
related to performance (r = .06).
If performance is the main variable of interest to this study we would say that
neither age nor the length of marriage has any relationship to performance, but that
the amount of stress and the level of job involvement do have significant bivariate
relationships with the performance of employees. The more job involved people are,
the better they perform; the more stress they experience, the better they perform.
Discussion Questions
1. What activities are involved in getting the data ready for analysis?
After data are obtained through questionnaires, they need to be coded, keyed in, and
edited. That is, a categorization scheme has to be set up before the data can be typed
in. Then, outliers, inconsistencies, and blank responses, if any, have to be handled in
some way.
2. What does coding the data involve?
Data coding involves assigning a number to the participants’ responses so they can be
entered into a database.
3. Data editing deals with detecting and correcting illogical, inconsistent, or illegal
data in the information returned by the participants of the study. Explain the
difference between illogical, inconsistent, and illegal data.
An example of an illogical response is an outlier response. An outlier is an observation
that is substantially different from the other observations. An outlier is not always an
error even though data errors (entry errors) are a likely source of outliers. Because
outliers have a large impact on the research results they should be investigated
carefully to make sure that they are correct.
Inconsistent responses are responses that are not in harmony with other information.
Illegal codes are values that are not specified in the coding instructions.
4. How would you deal with missing data?
One way to handle a blank response is to ignore it when the analyses are done. An
alternative solution would be to look at the participant’s pattern of responses to other
questions and from these answers deduce a logical answer to the question for the
missing response. A second alternative solution would be to assign to the item the
mean value of the responses of all those who have responded to that particular item.
Instructional Goals
1. To make students understand and apply the different types of analyses and tests to
get at the inferential information they need.
2. To help them interpret the results they obtain from data analyses.
Discussion Questions
1. When we collect data on the effects of treatment in experimental designs, which
statistical test would be most appropriate to test the treatment effects?
We would use a t‐test with paired samples to determine the treatment effects.
2. A tax consultant wonders whether he should be more selective about the class of
clients he serves so as to maximize his income. He usually deals with four categories
of clients: the very rich, rich, upper middle class, and middle class. He has
information on each and every client served, the taxes paid by them, and how much
he has charged them. Since many factors relating to the clients vary (number of
dependents, business deductibles, etc.), irrespective of the category they belong to,
he would like an appropriate analysis to be done to see which among the four
categories of clientele he should choose to serve in the future.
What kind of analysis should be done in the above case and why?
Undergraduate Students can be exposed to a simple ANOVA design.
An ANOVA will help the tax consultant to make the decision, since the differences
among the four groups on the dependent variable, income, can be obtained through
this analysis. A further test such as the Duncan Multiple Range test, will determine
which among the four groups provides the most income.
Discussion Questions
1. What is qualitative data? How do qualitative data differ from quantitative data?
Qualitative data is data in the form of words. Quantitative data is data in the form of
numbers.
2. What are the main steps in qualitative data analysis?
According to Miles and Huberman, there are generally three steps in qualitative data
analysis: data reduction, data display, and the drawing of conclusions.
3. Define reliability and validity in the context of qualitative research.
Reliability and validity have a slightly different meaning in qualitative research in
comparison to quantitative research. Reliability in qualitative data analysis includes
category and interjudge reliability. Category reliability “depends on the analyst’s
ability to formulate categories and present to competent judges definitions of the
categories so they will agree on which items of a certain population belong in a
category and which do not.” (Kassarjian, 1977, p. 14). Interjudge reliability can be
defined as the degree of consistency between coders processing the same data
Categorization is the process of organizing, arranging, and classifying coding units.
Codes and categories can be developed both inductively and deductively. In situations
where there is no theory available, you must generate codes and categories
inductively from the data. In its extreme form, this is what has been called grounded
theory.
6. How does narrative analysis differ from content analysis?
Narrative analysis is an approach that aims to elicit and scrutinize the stories we tell
about ourselves and their implications for our lives. Narrative data are often collected
via interviews. These interviews are designed to encourage the participant to describe
a certain incident in the context of his or her life history. Like this, narrative analysis
differs from other content analysis; it is focused on a process or temporal order, for
instance by eliciting information about the antecedents and consequences of a certain
incident in order to relate this incident to other incidents.
Discussion Questions
1. Discuss the purpose and contents of the Executive Summary.
The Executive Summary offers a condensed version of the problem, the methods
of investigation, the results of the study, the interpretation of the results, and the
recommendations made. This helps the executive to go through just two or three
pages and grasp the essence of what is contained in the report.
2. What are the similarities and differences of basic and applied research reports?
Exercise 14.2
Write a Research Proposal for conducting a study on the efficiency of
manufacturing teams in a company.
From:
To: