MBCQ723D Research Methodology PDF

UNIT 20: Case Study
MBCQ-723D
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Research Methodology
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Course Design
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Advisory Council
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Chairman
Dr Parag Diwan
Members
Dr Anirban Sengupta Dr Ashish Bhardwaj
UP
Dr Kamal Bansal
Dean Dean CIO
Dr S R Das Dr Sanjay Mittal Prof V K Nangia

VP – Academic Affairs Professor – IIT Kanpur IIT Roorkee
SLM Development Team

Wg Cdr P K Gupta
Dr Joji Rao
Dr Neeraj Anand
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Dr K K Pandey
Print Production
Mr Kapil Mehra Mr A N Sinha

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Manager – Material Sr Manager – Printing
Author
U Bhojanna
All rights reserved. No part of this work may be reproduced in any form, by mimeograph or any other means,
without permission in writing from MPower Applied Learning Enterprise.
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Course Code: MBCQ-723D
Course Name: Research Methodology
Version: July 2013
© MPower Applied Learning Enterprise

UNIT 20: Case Study
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Contents
Block-I
Unit 1 Introduction to Research Methodology.......................................................................... 3

Unit 2 Types of Research Studies............................................................................................ 13
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Unit 3 Research and Management Decisions ......................................................................... 21
Unit 4 Defining Problem .......................................................................................................... 29
Unit 5 Case Studies.................................................................................................................. 39
Block-II
Unit 6 Decision-making in Research Methodology................................................................. 45

Unit 7 Relationship between Management and Research Problem ...................................... 55
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Unit 8 Research Design ........................................................................................................... 67
Unit 9 Causal Research ........................................................................................................... 83
Unit 10 Case Studies.................................................................................................................. 95
Block-III
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Unit 11 Sampling Procedures.................................................................................................. 101

Unit 12 Sampling Techniques ................................................................................................. 113
Unit 13 Primary Data Collection............................................................................................. 133
Unit 14 Secondary Data Collection ......................................................................................... 153
Unit 15 Case Studies................................................................................................................ 167
Block-IV
Unit 16 Data Measurement ..................................................................................................... 173

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Unit 17 Hypothesis Testing ..................................................................................................... 187

Unit 18 Observation Methods.................................................................................................. 205
Unit 19 Analysis of Variance (ANOVA) .................................................................................. 217
Unit 20 Case Study .................................................................................................................. 229
Block-V
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Unit 21 Multivariate Analysis................................................................................................. 235
Unit 22 Market Research Proposal ......................................................................................... 249
Unit 23 Research Report Writing............................................................................................ 259
Unit 24 Oral and Written Reports .......................................................................................... 273
Unit 25 Case Study .................................................................................................................. 285
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Glossary ............................................................................................................................................ 287
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UNIT 1: Introduction to Research Methodology
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Notes
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BLOCK-I
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Detailed Contents Research Methodology
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Notes
UNIT 1: INTRODUCTION TO RESEARCH
___________________ UNIT 3: RESEARCH AND MANAGEMENT
METHODOLOGY DECISIONS
z ___________________
Introduction to Research z Importance of Research in Management Decisions
Meaning of Research
___________________ Role of Research Methods/Research Methodology in
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z z
Business/Industry
z Objectives of Research
___________________
z Current Status of Research in India
z Features of a Good Research Study
___________________
z Limitations of Research
z Motivation in Research
___________________
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z Research in Management
___________________ UNIT 4: DEFINING PROBLEM
z Introduction to Research Problem
UNIT___________________
2: TYPES OF RESEARCH STUDIES
z Formulation of the Problem
z Introduction to Research Studies
___________________
z Formulation of Hypothesis
z Types of Research
___________________
z Developing the Research Plan
z Comparison of the Scientific Method and
Non-scientific Method z How to Prepare a Synopsis
z Research Methods and Research Methodology

UNIT 5: CASE STUDIES
Organizing the Research Function
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Unit 1
3
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Notes
Activity
Introduction to Research
___________________
Explain the meaning of
research
___________________
Methodology
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___________________
___________________
Objectives ___________________
After completion of this unit, the students will be aware of the following
___________________
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topics:
___________________
\ Meaning and importance of Research
\ Objectives of Research ___________________
\ Features of good Research Study ___________________

\ Motivation in Research ___________________
\ Research in Management
Introduction to Research
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Research is undertaken within most professions.
More than a set of skills, it is a way of thinking: examining
critically the various aspects of your professional work. It is a habit
of questioning what you do, and a systematic examination of the
observed information to find answers with a view to instituting
appropriate changes for a more effective professional service.
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Research may be defined as a documented prose work.

Documented prose work means organized analysis of the subject
based on borrowed materials with suitable acknowledgment and
consultation in the main body of the paper.
Meaning of Research
Research has been defined by various authors in different ways. It
always begins with a question or a problem. Its purpose is to find
answers to questions through the application of systematic and
scientific methods. Thus, research is the systematic approach
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towards purposeful investigation. This needs formulating a

hypothesis, collection of data on relevant variables, analyzing and
interpreting the results and reaching conclusions either in the
form of a solution or certain generalizations.
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Research is an academic activity and a systematized effort to gain
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Notes
Activity new knowledge.
1. ___________________
State various objectives
of research.
___________________ Check Your Progress
2. What are the features of a
good research study?
___________________ Fill in the blanks:
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___________________ 1. _________________ is the systematic approach towards
purposeful investigation.
___________________
___________________
2. Research is a _________________ effort to gain new
knowledge.
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___________________
___________________
Objectives of Research
___________________
The objective of research is to find out answers to questions
___________________
through the application of systematic and scientific way.
Though there is a specific purpose behind each research study,
however, the objectives can be broadly classified as under:
z To obtain familiarity of a phenomenon.
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z To determine the association or independence of an activity.
z To determine the characteristics of an individual or a group of
activities and the frequency of its (or their) occurrence.
Check Your Progress

Fill in the blanks:
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1. The objective of research is to determine the association

or independence of an ………………...
2. To determine the …………………….. of an individual or
a group of activities and the frequency of its (or their)
occurrence.
Features of a Good Research Study
Objectivity
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A good research is objective in the sense that it must answer the

research questions. This necessitates the formulation of a proper
hypothesis; otherwise there may be lack of congruence between the
research questions and the hypothesis.
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Control
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Notes
A good research must be able to control all the variables. This ___________________
requires randomization at all stages, e.g., while selecting the
___________________
subjects, the sample size and the experimental treatments. This
shall ensure an adequate control over the independent variables.
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___________________
___________________
Generalisability
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We should be able to have almost the same result by using an
___________________
identical methodology so that we can apply the result to similar
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situations. ___________________
___________________
Free from personal biases
___________________
A good research should be free from the researcher’s personal
___________________
biases and must be based on objectivity and not subjectivity.
Systematic
A good research study must have various well planned steps, i.e.,
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all steps must be interrelated and one step should lead to another
step.
Reproducible
A researcher should be able to get approximately the same results
by using an identical methodology by conducting investigation on a
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population having characteristics identical to the one in the earlier

study.
Hence, the following points must be ensured:
z Purpose clearly detailed.
z Research design thoroughly planned.
z High ethical standards applied.
z Limitations frankly revealed.
z A complete and proper analysis.
Findings presented unambiguously.
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z Decision based conclusions.

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Check Your Progress
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Notes
Activity
True or False:
___________________
Explain the concept of
motivation in research.
___________________
1. A good research should be free from the researcher’s
personal biases and must be based on objectivity and
___________________
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not subjectivity.
___________________
2. Research study shall ensure an adequate control over
___________________ the independent variables.
___________________
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___________________ Motivation in Research
___________________ What makes people to undertake research? This is a question of
___________________ fundamental importance. The possible motives for doing research
may be either one or more of the following:
___________________
z Desire to get a research degree along with its consequential
benefits;
z Desire to face the challenge in solving the unsolved problems,
i.e., concern over practical problems initiates research;
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z Desire to get intellectual joy of doing some creative work;
z Desire to be of service to society;
z Desire to get respectability.
However, this is not an exhaustive list of factors motivating people
to undertake research studies.
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Many more factors such as directives of government, employment

conditions, curiosity about new things, desire to understand causal
relationships, social thinking and awakening, and the like may as
well motivate (or at times compel) people to perform research
operations.
Check Your Progress

True or False:
1. Main motivation in research is desire to face the
challenge in solving the unsolved problems.
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2. Its another motivation is to get intellectual joy of doing

some creative work.
Research in Management 7
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Notes
Research in management is particularly difficult because of its Activity
___________________
convergence with different disciplines. As we know, management is Research in Management:
Write short notes on
not a particular discipline and in any study on management we ___________________
dependent and independent
need to integrate the different approaches borrowing suitably from variables.
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___________________
different disciplines. Similarly, before we understand the
___________________
complexity of research in commerce and management, we need to
define certain important concepts. ___________________
___________________
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Variable
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Variable is the quantity, in which we are interested, that varies in
___________________
the course of the research or that has different variables for
different samples in our study. In one word, we can define variable ___________________
as a factor whose change or difference we study. ___________________
Now, there are two types of variables:
Dependent Variable
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Dependent variable is that quantity or aspect of nature whose
change at different, stages the researcher wants to understand or
explain. In cause and effect investigation, the effect variable is the
dependent variable.
Independent Variable
Independent variable is a variable, whose effect upon the
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dependent variable we try to understand. There may be several

independent variables. For instance, we may simultaneously
investigate the effect of mother’s cigarette smoking, mother’s
exercise, parents’ weights and other variables upon the weight of a
baby.
In this case, mother’s cigarette smoking, mother’s exercise,
parents, weights and other variables are independent variables,
which we want to study, upon the weight of the baby which is
dependent variable.
Apart from these, we need to clarify certain other concepts.
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Universe
We can define it as the total population. It is the laboratory for the
research. In our research we may have or we may take the entire
population of India. In that case, as it is obvious, no researcher can
8 carry out research on the entire population of India to find out the
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Notes truth or to find out some areas of his research interest. In some
___________________ cases, universe or population may be a particular group.
___________________
Empirical
___________________
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Empirical means the observations and propositions which are
___________________
primarily based on some sense experiments or derived from
___________________ experience by methods of inductive logic including mathematics
___________________ and statistics. This technical definition is difficult to understand.
To be clearer we can define empirical research as that type of
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___________________
research where we try to deduce some logic and principles based on
___________________ our survey reports. In other words, when we want to analyze the
___________________ survey report using some mathematical and statistical tools and
deduce logic to authenticate our findings, we are said to follow the
___________________
empirical research method.
Attitude
Attitude as we all know is the psychic change and it can neither be

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demonstrated publicly nor can it directly be observed, because
most of the psychological variables as we know are dormant or
latent and to can never be measured unless we use the most
sophisticated tools, like scales etc., with suitable weight factors.
Opinion
Opinion is a verbal statement of a person and given merely for the
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sake of responding or rather to answer a particular question

without any object or aim and based on superficial and or partial
information of the object or situation about which the opinion is
passed.
Research, unless it is understood in its right spirit, cannot be
undertaken with success. What is important for researchers is to
take research more as a passion than for career progress. From our
experience, we see that most of the students are interested in
research merely to fulfil their career prospects. In this way, certain
researches are carried out in a mechanical way. The researcher
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should have the natural interest in the research.
There are still certain things which we need to consider before we

go into the research matter in more depth. What are the
management areas and what is the scope available for research in
this field?
Now to define management, without going into the traditional 9
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approach we may put it in more simplistic terms like: Notes
Management in all business and organizational activities is the act ___________________
of getting people together to accomplish desired goals and
___________________
objectives using available resources efficiently and effectively.
Management comprises planning, organizing, staffing, leading or
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___________________
directing, and controlling an organization (a group of one or more ___________________
people or entities) or effort for the purpose of accomplishing a goal.
___________________
The foregoing discussions help us to understand that there are
___________________
different functional areas of management. Such functional areas
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may be listed as follows: ___________________
z Marketing ___________________
z Human resource management ___________________
z Production ___________________
z Finance and accounting

z Information technology
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z Material planning and production control
z Purchasing function
z Advertising and sales promotion function
z Social functions, which enables a company to fulfil the social
responsibility, etc.
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There may be certain other function too which, however, depends

more on the requirements of the environment
or particular environment that prevails in a company.
Research on competency development is also another important
aspect, which focuses on integration of business plan of the
company with selecting the right individual for the job.
Competency is defined as the smallest unit of on-the-job behaviour
that is observable, measurable, and changes over time.
Similar contemporary areas of research interest are; Innovation
and creativity, Six-sigma practices, Supply chain management,
Knowledge management issues, Business process outsourcing,
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Human resource outsourcing, Customer Relationship Management

(CRM), e-CRM, Web marketing, Financial re-engineering, etc.
In selecting a research topic, out of several potential topics, the
first task is to narrow down to the most potential one out of the
different alternatives. Selection of a research topic is the first task
10 of the research process. The research process consists of a series of
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Notes actions or steps necessary to carry out research in a sequential and
___________________ logical manner. Selection of research topic although primarily
depends on the guides’ instructions, the researcher should also
___________________
take independent decisions to a great extent for influencing the
___________________
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guide in this matter. Certain pertinent factors in this regard are:
___________________
z The selected topic should have some current implication.
___________________
z There should be scope and amenities to carry out the intended
___________________ research, as for example; availability of required data,
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___________________ feasibility of carrying out survey etc.
___________________ z The selected research topic should contribute to knowledge in
___________________ the desired field.
___________________ z The selected topic should receive the necessary concurrence

from the research guide.
Check Your Progress

Fill in the blanks:
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1. ________________ variable is that quantity or aspect of
nature whose change at different, stages the researcher
wants to understand or explain.
2. Selection of a ________________ is the first task of the
research process.
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Summary
Research may be defined as a documented prose work.
Documented prose work means organized analysis of the subject
based on borrowed materials with suitable acknowledgment and
consultation in the main body of the paper.
Research in management is important to find out different
phenomena. In carrying out research, based on survey Responses,
it is better to rely more on attitude than on opinion as opinion
survey may provide superficial answers. Research on management
or research on social sciences may be fundamental in nature when
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while building a new theory and approach on any particular

discipline.
Lesson End Activity 11
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Notes
Take a research problem and explain its objectives.
___________________
Keywords ___________________
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___________________
Variables: A factor whose change or difference we study.
___________________
Empirical: The observations and propositions which are primarily
___________________
based on some sense experiments or derived from experience by
methods of inductive logic including mathematics and statistics. ___________________
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Research: An academic activity and a systematized effort to gain ___________________
new knowledge. ___________________
Motivation: The reason or reasons one has for acting or behaving ___________________
in a particular way. ___________________
Attitude: A settled way of thinking or feeling typically reflected in
a person's behaviour.
Questions for Discussion

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1. What is “research”? What are the two broad categories in
which it can be divided?
2. Explain the role of research in management decision making.
3. Discuss objectives and control in light of features of a good
research study.
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4. Distinguish between attitude and opinion.
Further Readings
Books
S N Murthy and U Bhojanna, Business Research Methods, 3rd
edition, Excel books
C R Kothari, Research Methodology, 2nd editions, New age
international Pvt. Ltd. publishers
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Dennis Howitt and Duncan Cramer, Introduction to Research

Methods, 3rd editions, Pearson Education
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Web Readings
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Notes
http://www.newagepublishers.com/samplechapter/000896.pdf
___________________
http://en.wikipedia.org/wiki/Research
___________________
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___________________
___________________
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___________________
___________________
___________________
___________________
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UNIT 2: Types of Research Studies
Unit 2
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Notes
Activity
Types of Research Studies

___________________
Write short notes on any three
types of research methods.
___________________
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___________________
Objectives
___________________
topics: ___________________
\ Meaning of Research Studies ___________________
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\ Types of Research ___________________
\ Research Methods vs. Research Methodology
___________________
\ Organising the research function
___________________
Introduction to Research Studies ___________________
A research study is a scientific way to improve or develop new

methods of health care. Studies are designed to answer specific
questions on how to prevent, diagnose, or treat diseases and
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disorders. Many types of research studies exist.
In carrying out research, we follow scientific norms. Science is an
organized knowledge. The essential feature of science is the
application of scientific method. In any science, concepts, theories
and other accumulated knowledge develop from hypotheses,
experimentation and analysis.
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Types of Research
Research may be grouped under two major categories:
Fundamental research and Applied research.
Fundamental research here means research of a scientific nature
which has practically no connection or if at all there is any
connection, it is absolutely remote in nature as far as social science
research is concerned.
Applied research, on the other hand, means application of basic
scientific principles in different areas of social science research.
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The science of psychology has certain assumptions regarding

human behaviour which, in general, may be termed as
fundamental in nature. But, when we apply these principles in
different fields of management, say, personal management (where
we are more concerned with human relations, etc.), marketing
14 management (where we need to study the marketing behaviours of
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Notes consumers, advertising response, etc.) our research becomes
___________________ applied in nature.
___________________ Without going into the rigours of technical jargon, in social science
___________________ research, we are more concerned with application of basic scientific
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principles in different functional areas of management on the one
___________________
way and testing of all existing theories of management on the
___________________ other. Social science research may be categorized under the
___________________ following major heads:
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___________________ Fundamental or basic research: Fundamental or basic research
___________________
is primarily intended to find out certain basic principles, viz; John
Robinson's imperfect competition theory in economics, Maslow's
___________________
hierarchy of needs theory in motivation, Elton Mayo's Hawthorne
___________________ experiment relating productivity with work environment, etc.
Applied research: Applied research, as already stated, is the
application of available scientific methods in social science
research which helps to contradict, alter or modify any existing
theory or theories and helps to formulate policy. Applied research,
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thus, is more concerned with actual life. It also suggests remedial
measures to alleviate social problems. Example of applied research
may be:
z John Huberman's: Discipline without punishment theory.
z Alderfer Clayton's: Existence relatedness and growth theory
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which contradicted Maslow's hierarchy of Needs theory and

suggested a better alternative.
Descriptive research: Descriptive research is usually a fact
finding approach generalizing a cross-sectional study of the
present situation, for example, a study on problems of industrial
relations in India with an interdisciplinary approach. It is
classified under conclusive research.
Historical research: Historical research is the research on past
social forces which have shaped the present. For example, to study
the present state of Indian labour we may research on past
historical forces.
(c)
Formulative or exploratory research: Formulative or

exploratory research helps us to investigate any problem with
suitable hypothesis. This research on social science is particularly
important for clarification of any concept and throwing new light
for further research on principles of developing hypothesis and its 15
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testing with statistical tools. Notes
Experimental research: Although experimental research is ___________________

primarily possible in areas of physical sciences, with the help of ___________________
hypothesis, may also be carried out in social sciences if such
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___________________
research enables us to quantify the findings, to apply the
statistical and mathematical tools and to measure the results thus ___________________
quantified. It is also classified under conclusive research. ___________________
Ex-post-facto research: Ex-post-facto research is an empirical ___________________
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enquiry for situations that have already occurred. For example, ___________________
market failure for any companies' product if studied or researched
___________________
later may be categorized as ex-post-facto research. Apart from this,
declaration or slow rate of growth in national income when studied ___________________
to reformulate the future policies on this account, is classified as ___________________

ex-post-facto research.
Case study approach: Case study approach to social science
research is particularly initiated at the micro level. For example
study of a particular industrial unit or units, study of some
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banking units, etc., may be categorized as a case-study. This type
of study is intensive in nature and data compilation requires
exhaustive study of the units with utmost sincerity. We have
discussed case study method separately.
Apart from the above research methods, there are certain other
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general methods in social sciences:

z Survey Research
z Evaluation research
z Assessment research
Whatever may be the nature or methods of research, we should not

forget that interdisciplinary treatment of research problem is
essential. By interdisciplinary treatment, we mean borrowing
ideas from related disciplines connected with the research topic for
more authenticity. Research on management and commerce
discipline particularly requires an integral approach to various
(c)
disciplines for obvious reasons as management is not a separate

discipline in its own right.
As has been said at the outset, research is a documented prose
writing. Documentation here means acknowledgement of different
sources particularly from where we have taken references.
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Organized analysis of a subject selected for research is the
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Notes
prerequisite of success. While writing a research paper, the subject
___________________
of first and foremost importance is to select the research topic. In
___________________ doing so, we should also find out the feasibility of locating
___________________ information about the subject. Whatever may be the method
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employed in carrying out research, we should not forget that this
___________________
should invariably be symptomatic in nature.
___________________
Scientific Method
___________________
The application of valid and reliable research methods is called
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___________________
scientific method. It has three distinct characteristics:
___________________
z Objectivity: The scientific method should enable us to classify
___________________ facts accurately and carefully, without any bias.
___________________
z Accuracy of measurement: A mere collection and
classification of the facts may not be sufficient; one must be
able to make observations of their correlation and sequence,
which can be denied as a result of dissipation imagination and
painstaking efforts of the scientists.
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z Self criticism: Scientist should critically examine their own
research as they are a group of people who are never sure that
they have can found the ultimate truth, thus their studies are
continuing an exhaustive. If researchers are completely
objective, their measurements are accurate and their studies
are exhaustive, then their results will be valid and reliable.
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Comparison of the Scientific Method and

Non-scientific Method
Objectivity: The scientific method is more objective as compared
to the non-scientific method, the reason being that its development
is normally a result of long years of experience and good deal of
thought by the scientist. The hypothesis, a back bone of scientific
method, can be verified with the help of statistical techniques and
principles. This ensures better and more objectivity as compared to
subjectiveness in decision making by non-scientific methods.
(c)
Degree of accuracy: The scientific method is more precise than

non-scientific methods. Though measurement is not always
attempted in every scientific investigation, but wherever
attempted even the quantitative concept can be defined precisely,
measure effectively and helps in achieving results with higher 17
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degree of accuracy. Notes
Activity
Continuing and exhaustive: The scientific method takes Define both the
___________________terms
research methods as well as
cognizance of the existing knowledge. The results achieved by research methodology.
___________________
various researchers lend to the same conclusions. This helps in
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___________________
accumulation of systematic knowledge which is continuous and
unending. However, the same is not true in case of non-scientific ___________________
method. ___________________
___________________
Check Your Progress
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___________________
Fill in the blanks:
___________________
1. Descriptive research is usually a fact finding approach
generalizing a _________________ study of the present ___________________
situation. ___________________
2. _________________ is the application of available

scientific methods in social science research which
helps to contradict, alter or modify any existing theory
or theories and helps to formulate policy.
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3. _________________ research is an empirical enquiry for
situations that have already occurred.
4. The scientific method is more precise than
_________________ methods.
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Research Methods and Research Methodology

z Research methods are the methods or techniques employed by
researchers in conducting research operations.
z Research methodology is a scientific and systematic way to
solve research problems. A researcher has to design his
methodology, i.e., in addition to the knowledge of
methods/techniques, he has to apply the methodology as well.
The methodology may differ from problem to problem. Thus,
the scope of research methodology is wider than research
methods. In a way, research methodology deals with the
(c)
research methods and takes into consideration the logic behind

the methods, we use.
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Check Your Progress
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Notes
Activity
Fill in the blanks:
Give___________________
a brief about the
concept. 1. Research methodology is a scientific and
___________________
_______________ way to solve research problems.
___________________
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2. Research methods are the _______________ employed by
___________________
3. Researchers in conducting research operations.
___________________
___________________ Organizing the Research Function
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___________________ The research function as in research & development for a
___________________ manufacturing unit can be organized within an organization of
___________________
medium or large size but a marketing research organization shall
be very much different in nature as the requirements and
___________________
emphasis on research will be different.
Many a time, companies do not set up their own departments but
prefer to engage outside agencies for their marketing research
requirements. The following points should be kept in mind while
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hiring the services of outside agency:
z Technical expertise.
z Objective(s) of research studies.
z Economic considerations.
z Standing/reputation of the agency.
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Some advantages of using an outside agency are:

z It may propose a research proposal without any constraint and
may be worth considering.
z Timely advice can be sought which may have far reaching
effects on the business policy.
z The relevant problem to us today may have already been
studied by consultants and hence it shall help in saving
company’s time, money and energy.
Check Your Progress

(c)
Fill in the blanks:

1. The objective of research function should be known to
__________________ agency.
2. Outside agency may propose a research proposal
without any __________________.
Summary 19
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Notes
A research study is a scientific way to improve or develop new
___________________
methods of health care. Studies are designed to answer specific
questions on how to prevent, diagnose, or treat diseases and ___________________
disorders. Many types of research studies exist.
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___________________
Research may be grouped under two major categories: ___________________

Fundamental research and Applied research. Research on
___________________
management and commerce discipline particularly requires an
___________________
integral approach to various disciplines for obvious reasons as
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management is not a separate discipline in its own right. ___________________
The research function as in research & development for a ___________________
manufacturing unit can be organized within an organization of ___________________

medium or large size but a marketing research organization shall
___________________
be very much different in nature as the requirements and
emphasis on research will be different.
Lesson End Activity

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Write short notes on historical, experimental and ex-post facto
research methods.
Keywords
Fundamental Research: Fundamental research is research
carried out to increase understanding of fundamental principles.
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Applied Research: Applied research refers to scientific study and

research that seeks to solve practical problems.
Research Methodology: Research methodology is a way to
systematically solve the research problem. It is the process used
to collect information and data for the purpose of making business
decisions.
Case Study Approach: A detailed intensive study of a unit, such
as a corporation or a corporate division that stresses factors
contributing to its success or failure.
(c)
Scientific Research: Application of scientific method to the

investigation of relationships among natural phenomenon, or to
solve a medical or technical problem.
20
S
Notes
1. Name different types of research.
___________________
___________________
2. What are the characteristics of scientific research?
___________________ 3. Distinguish between scientific and non scientific research.
E
___________________ 4. Distinguish between research methods and research
methodology.
___________________
___________________
5. What do you mean by organising the research function?
UP
___________________
Further Readings
___________________
___________________ Books
___________________ Bhattacharyya, D.K. (2009). Research Methodology. Excel Books
India.
Goddard, Wayne and Melville, Stuart (2004). Research
Methodology: An Introduction. Juta and Company Ltd.
E-
Kothari, C.R. (2009). Research Methodology: Methods and
Techniques. New Age International.
Kumar, Rajendar (2011). Research Methodology. APH Publishing.
Panneerselvam, R. (2004). Research Methodology. PHI Learning
Pvt. Ltd.
CC
Web Readings
http://books.google.co.in/books?id=hZ9wSHysQDYC&pg=PA2&dq=
types+of+research&hl=en&sa=X&ei=I7__UL2ZL8WtrAeFnoCoAQ
&ved=0CDkQ6AEwAQ#v=onepage&q=types%20of%20research&f=
false
http://bsapp.com/seniorprojects/adobe_files/introductionpres/spnote
s.pdf
(c)
UNIT 3: Research and Management Decisions
Unit 3
21
S
Notes
Research and Management

___________________
___________________
Decisions
E
___________________
___________________
Objectives ___________________
___________________
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topics:
___________________
\ Importance of Research in Management Decisions
\ Role of Research Methods/ Methodology in Business/ Industry ___________________
\ Current status of Research in India ___________________

\ Limitations of Research ___________________
Introduction
Today’s managers have a growing need to understand research and
incorporate them into decision making. Research always facilitates
E-
effective management. At many government organisations
research drives every aspect of major decision making. In some
organisations, research is so fundamental that management makes
hardly any significant decision without the benefit of some kind of
research.
The prime managerial value of management research is that it
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reduces uncertainty by providing information that improves the

decision-making process. Management research, by supplying
managers with pertinent information, may play an important role
by reducing managerial uncertainty in each of these stages.
Doing research in business management is vital as it helps a
business plan for the future, based on what may have happened in
the past. If carried out successfully it can help a company make
informed plans on how to become more viable in its sector.
If something has been unsuccessful, for instance, having carried
out effective research may help a business avoid future failure.
(c)
Carrying out research may also help a company decide whether

now is the right time to expand into another city or whether it
should apply for a new loan. It also helps a business determine
whether a procedure should be changed or if more needs to be done
to meet the needs of the customer base. Research in business
22 management may come in different forms, depending on what a
S
Notes
Activity company is hoping to achieve.
___________________
Define research in context of
management decision.
___________________ Importance of Research in Management Decisions
___________________ The role of research has greatly increased in the field of business
E
___________________ and economy as a whole. The study of research methods provides
you with the knowledge and skills you need to solve the problems
___________________
and meet the challenges of today’s modern pace of development.
___________________ Three factors stimulate the interest in a scientific research to
UP
___________________ decision making:
___________________ z The manager’s increased need for more and better
___________________ information.
___________________ z The availability of improved techniques and tools to meet this

need.
z The resulting information overload.
The usefulness and contribution of research in assisting marketing
E-
decisions is so crucial that it has given rise to the opening of a new
field altogether called ‘marketing research’.
Market research is basically the systematic gathering, recording
and analyzing of the facts about business problems with a view to
investigate the structure and development of a market for the
purpose of formulating efficient policies for purchasing, production
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and sales.
Modern industry with its large scale operations tends to create a
gulf between the customer and the manufacturer. Particularly
when business is too big and operations are too far-flung, one
cannot depend upon casual contacts and personal impressions.
Research methodology has been developed as the tool by which
business executives keep in touch with their customers. If an
entrepreneur has to make sound decisions, he must know who his
customers are and what they want. To a certain extent he relies on
his salesmen and his dealers to supply him with market
information but in recent years, more and more firms/executives
(c)
have turned to research methodology as a medium of

communication between the customer and the company.
Marketing research is the link between the manufacturer and the
consumer and the means of providing consumer-orientation in all
aspects of the marketing function. It is the instrument of obtaining
the knowledge about the market and the consumer through 23
S
objective methods which guard against the manufacturer’s Notes
Activity
subjective bias. Write a short note on
___________________
researcher’s role in the
Many researchers define marketing research as gathering, industry.
___________________
recording and analyzing of all facts about problems relating to the
E
___________________
transfer and sale of goods and services from producer to consumer.
___________________
Research methodology is an essential prerequisite for consumer-
___________________
oriented marketing. It is necessary for developing the marketing
strategy where in factors under the control of the organization viz., ___________________
UP
product, distribution system, advertising, promotion and price can ___________________
be utilized so as to obtain maximum results in the context of the
___________________
factors outside the control of the organization viz., economic
environment, competitor and laws of land. ___________________
___________________
Role of Research Methods/Research Methodology in

Business/Industry
Before undertaking any research it is essential to delimit the
E-
primary objectives of the project and then to define the
methodology in as much detail as possible. This shall help the
researcher to utilize the research for decision making. Any
research done on an arbitrary basis, i.e., without having explicit
objectives or applying one’s personal convenience in data collection
and interpretation etc. shall be of no use.
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Common uses of Research in Decision Making

The following are the areas in which research methodology can
help in better decision making:
Marketing Research
z Product research: Assessment of suitability of goods with
respect to design and price.
z Market characteristics research (qualitative): Who uses
the product? Relationship between buyer and user, buying
motive, how a product is used, analysis of consumption rates,
(c)
units in which product is purchased, customs and habits

affecting the use of a product, consumer attitudes, shopping
habits of consumers, brand loyalty, research of special
consumer groups, surveys of local markets, basic economic
analysis of the consumer market, etc.
24 z Size of market (quantitative): Market potential, total sales
S
Notes quota, territorial sales quota, quota for individuals,
___________________ concentration of sales and advertising efforts; appraisal of
efficiency, etc.
___________________
___________________ z Competitive position and trends research.
E
___________________ z Sales research: Analysis of sales records.
___________________ z Distribution research: Channels of distribution, distribution

costs.
___________________
UP
___________________ z Advertising and promotion research: Testing and
evaluating, advertising and promotion.
___________________
z New product launching and product positioning.
___________________
___________________ Government Policies and Economic System

Research helps a decision maker in a number of ways, e.g., it can
help in examining the consequences of each alternative and help in
bringing out the effect on economic conditions. Various examples
can be quoted, such as; problems of big and small industries due to
E-
various factors – upgradation of technology and its impact on
labour and supervisory deployment, effect of government’s liberal
policy, WTO and its new guidances, ISO 9000/ 14000 standards
and their impact on our exports allocation of national resources on
national priority basis, etc.
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Solving Various Operational and Planning Problems of Business and Industry

Various types of researches, e.g., market research, operations
research and motivational research, when combined together, help
in solving various complex problems of business and industry in a
number of ways. These techniques help in replacing intuitive
business decisions by more logical and scientific decisions.
Market research helps in deciding forecasting which helps in
efficient production and investment programmes such as
purchasing and financial plans which ultimately result in projected
profit and loss account.
(c)
Social Relationships
Research in social sciences is concerned with both – knowledge for
self and knowledge for helping in solving immediate problems of
human relations. It is a sort of formal training which helps an
individual in a better way, for example,
25
z It helps professionals to earn their livelihood.
S
Notes
Activity
z It helps students to know how to write and report various
___________________
Explain the current scenario of
findings. research in India.
___________________
z It helps philosophers and thinkers in their new thinkings and
E
___________________
ideas.
___________________
z It helps in developing new styles for creative work.
___________________
z It may help researchers, in general, to generalize new theories.
___________________
UP
Other areas have been already highlighted in our introductory
___________________
discussion. Also in subsequent chapters we have discussed various
contemporary areas encompassing all functional areas of ___________________
management. ___________________
Check Your Progress ___________________
True or False:
1. Product research is an Assortment of suitability of
goods with respect to design and price.
E-
2. Research helps a decision maker in a number of ways,
e.g., it can help in examining the consequences of each
alternative and help in bringing out the effect on
economic conditions.
Current Status of Research in India

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Research in India can still be said to be in the growing phase.

Although there is an enormous interest evinced in research by our
business, they are not as yet completely sold on its value of or as
an aid to marketing. This is due partly to the fact that in India,
many product groups are still enjoying a sellers’ market and
consequently management is pre-occupied with problems relating
to production and raw materials.
Secondly, there is a general misconception among Indian
businessmen that research is a very costly affair and hence
luxuries that they can ill afford. This is particularly true of smaller
(c)
firms and industries but paradoxically, it is they who require

research even more than the larger firms in order to make
marketing effort more efficient and to reduce or eliminate wastage.
However, it is important for businessmen to realize that no product
can have a sellers' market in perpetuity, particularly in a
26 developing economy. When the reversal occurs, the manufacturer
S
Notes
Activity who has kept in touch with the consumer all through and practised
List ___________________
down various limitations of consumer-oriented approach will reap the rewards. Further, it
research. should be realized that research increases the efficiency of
___________________
marketing efforts, reduces wastage and thereby pays.
___________________
E
___________________ True or False:
___________________ 1. It should be realized that research increases the
UP
efficiency of marketing efforts, reduces wastage and
___________________
thereby pays.
___________________
2. It is important for businessmen to realize that any
___________________
product can have a sellers' market in perpetuity,
___________________ particularly in a developing economy.
Limitations of Research
In India, research based decision making has just made a

E-
beginning. There are still a number of gaps in understanding
between the researchers and its users.
It may be made clear that research is there to help in decision

making and is not a substitute of decision making. Some of the
limitations are given below:
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z Research can provide a number of facts, but it doesn’t provide

actionable results.
z Some problems just cannot be researched, e.g., a precise
estimate of sales directly attributable to advertising.
z It cannot provide the answer to any problem but can only
provide a set of guidelines. Thus, management will have to
consider research findings in the light of other factors such as
production, finance and personnel, in arriving at the decision.
z Managers normally do not include research in the overall
problem or total decision making. Partial decisions on specific
(c)
issues and without proper timing and budget may not help in
satisfactory solutions.
z Managers rely more on intuition and judgement rather than
on research.
27
Check Your Progress
S
Notes
True or False:
___________________
1. All business problems can be researched.
___________________
2. Partial decisions on specific issues and without proper
E
___________________
timing and budget may not help in satisfactory
___________________
solutions.
___________________
Summary ___________________
UP
___________________
The study of research methods provides you with the knowledge
and skills you need to solve the problems and meet the challenges ___________________
of today’s modern pace of development. ___________________
Market research is basically the systematic gathering, recording ___________________

and analyzing of the facts about business problems with a view to
investigate the structure and development of a market for the
purpose of formulating efficient policies for purchasing, production
and sales.
E-
Many researchers define marketing research as gathering,
recording and analyzing of all facts about problems relating to the
transfer and sale of goods and services from producer to consumer.
Research methodology is an essential prerequisite for consumer-
oriented marketing.
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Lesson End Activity

Select a company of your choice and find out the research
methodology used by them before entering into the new market.
Keywords
Product Research: It is a kind of marketing research that yields
information about desired characteristics of the product or service.
Limitation: a principle that limits the extent of something.
Decision Making: the cognitive process of reaching a decision.
(c)

1. Explain the Government policies and economic system in
context of research in decision making.
28 2. Explain the social relationships in context of research in
S
Notes decision making.
___________________ 3. What is the general misconception among the Indian
___________________ businessman regarding research? Explain in brief.
___________________ 4. Briefly explain two limitations of research.
E
___________________
Further Readings
___________________
___________________ Books
UP
___________________ Bhattacharyya, D. K. (2009). Research Methodology. Excel Books
India.
___________________
___________________
___________________
E-
Pvt. Ltd.
Web Readings
http://researchcooperative.org/profiles/blogs/status-of-research-in-
india
http://books.google.co.in/books?id=n1yxhBDxL2QC&printsec=front
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cover&dq=management+decision+making+and+research&hl=en&s
a=X&ei=Ws__UKHeNMj7rAfn94G4Cg&ved=0CDMQ6AEwAA#v=o
nepage&q=management%20decision%20making%20and%20resear
ch&f=false
(c)
UNIT 4: Defining Problem
Unit 4
29
S
Notes
Activity
Defining Problem
___________________
Write a short note on
formulation of problem.
___________________
E
___________________
Objectives
___________________
topics: ___________________
\ Meaning of Research Problem ___________________
UP
\ Formulation of the Problem ___________________
\ Formulation of Hypothesis
___________________
\ Developing the Research Plan
___________________
\ How to prepare a Synopsis
___________________
Introduction to Research Problem

A research problem is the situation that causes the researcher to
feel apprehensive, confused and ill at ease. It is the demarcation of
E-
a problem area within a certain context involving the WHO or
WHAT, the WHERE, the WHEN and the WHY of the problem
situation.
There are many problem situations that may give rise to research.
Three sources usually contribute to problem identification. Own
experience or the experience of others may be a source of problem
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supply. A second source could be scientific literature. You may

read about certain findings and notice that a certain field was not
covered. This could lead to a research problem. Theories could be
a third source. Shortcomings in theories could be researched.
Research can thus be aimed at clarifying or substantiating an
existing theory, at clarifying contradictory findings, at correcting a
faulty methodology, at correcting the inadequate or unsuitable use
of statistical techniques, at reconciling conflicting opinions, or at
solving existing practical problems.
Formulation of the Problem

(c)
Formulation of the problem means defining the problem precisely.

In other words, a problem well defined is half solved. In operations
research, we say that formulation of problem is often more
essential than its solution because when the problem is
30
formulated, an appropriate technique can be applied to generate
S
Notes
alternative solutions. Choosing the best alternative is the best
___________________ decision under the given circumstances.
___________________ Steps involved in defining a problem are:
___________________ Statement of the problem in a general way.
E
z
___________________ z Understanding the nature of the problem.
___________________
z Surveying the available literature.
___________________
z Developing the idea through discussions.
UP
___________________
z Rephrasing the research problem into a working proposition.
___________________
Once the problem has been selected, the same has to be understood
___________________
thoroughly and then the same has to be reframed into meaningful
___________________ terms from an analytical point of view. The best way is to discuss
the problem with friends or colleagues or with those who have the
knowledge of it. Both parties, the researcher and/or the concerned
manager and customer, must agree on the specific nature of the
research problem. Ideally, both the parties must ascertain the
E-
priorities of the issues involved, scope or potential benefits, cost as
well as the time required to conduct the study. Researcher must
specify the exact issues being examined and the underlying logic in
setting the priorities. Moreover, the research must define the
boundaries of the population covered in the proposal.
In essence, a proper formulation of the research problem starting
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with objectives would enable a researcher to go ahead in the proper

direction. Finally, it may be noted that problem formulation would
have focus on what sort of decision issues are tackled. In other
words, it gives a clear idea of the research itself.
Check Your Progress

True or False:
1. Both parties, the researcher and/or the concerned
manager and customer, must agree on the specific
nature of the research problem.
(c)
2. A problem well defined is full solved.

Formulation of Hypothesis 31
S
Notes
Activity
Concept of Hypothesis Write a short note on
___________________
formulation of hypothesis.
A hypothesis is a proposition – a tentative assumption which a ___________________
researcher wants to test for its logical or empirical consequences.
E
___________________
Hypotheses are more useful when stated in precise and clearly
defined terms. It may be mentioned that though a hypothesis is ___________________
useful it is not always necessary, especially in case of exploratory ___________________

researches. However, in a problem-oriented research, it is
___________________
UP
necessary to formulate a hypothesis or hypotheses. In such
___________________
researches, hypotheses are generally concerned with the causes of
a certain phenomenon or a relationship between two or more ___________________
variables under investigation. ___________________
Hypothesis Testing ___________________
A number of steps are involved in testing a hypothesis:

z Formulate a hypothesis.
Set up a suitable significance level.
E-
z
z Choose a test criterion.

z Compute the statistic.
z Make decision.
Formulate a Hypothesis
CC
Let us discuss about introduction of a new drug. The drug is tested

on a few patients and based on the response from patients, a
decision has to be made whether the drug should be introduced or
not. We make certain assumptions about the parameter to be
tested – these assumptions are known as hypotheses.
We start with a ‘null hypothesis’: H0: m = 100. This is a claim or
hypothesis about the values or population parameters.
This is tested against alternate hypothesis, m1 : m ≠ 100.
The null hypothesis is tested with available evidence and a

(c)
decision is made whether to accept this hypothesis or reject it. If

the null hypothesis is rejected, we accept the alternate hypothesis.
32 Setting up a Suitable Significance Level
S
Notes
There are two types of errors that can be committed in making
___________________
decisions regarding accepting or rejecting the null hypothesis:
___________________
z Type I error: An error made in rejecting the null hypothesis,
___________________ when in fact it is true.
E
___________________
z Type II error: An error made in accepting the null hypothesis,
___________________ when in fact it is untrue.
___________________ The level of significance signifies the probability of committing
UP
___________________ Type I error and is generally taken as equal to 5% (a = .05). This
means that even after testing the hypothesis, when a decision is
___________________
made, we may still be committing an error in rejecting the null
___________________ hypothesis. Sometimes, the value of ‘a’ is taken as .01 but it is the
___________________ discretion of the investigator, depending upon the sensitivity of the
study.
Choose a Test Criterion

This means selection of a suitable probability distribution that can
E-
be used for the available information under consideration.
The different distributions that are normally used are:
z Normal distribution: Z characteristic, this is most often used,
when the samples are more than 30.
z T-distribution: ‘T’ test is used for small samples only.
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z F – test and chi-square test.
Compute the Test Characteristic

This involves the actual collection and computation of the sample
data. For the case under consideration, we have to find the sample
mean () and then compute the calculated ‘Z’. This calculated value
(absolute) is compared with tabulated value obtained from normal
distribution table against the decided criterion (value of ‘a’ and one
tail or two tails).
Make a Decision
(c)
If the calculated value of the test characteristic is greater than the

tabulated value, the null hypothesis is rejected and the alternate
hypothesis is accepted. Talking in terms of critical region, the
value of calculated characteristic falls outside the acceptance
region.
33
Check Your Progress
S
Notes
Activity
True or False:
How to develop a research
___________________
1. In a problem-oriented research, it is necessary to plan?
___________________
formulate a hypothesis or hypotheses.
E
___________________
2. We make certain assumptions about the parameter to
___________________
be tested to formulate a hypothesis.
___________________
Developing the Research Plan ___________________
UP
___________________
The next step of the research process calls for determining the
information needed, developing a plan for gathering it efficiently ___________________
and presenting the management of the organization. The plan ___________________
outlines sources of secondary data and spells out the specific
___________________
research approaches, contact methods, sampling plan and
instruments that the researcher will use to gather primary data.
First of all research objectives must be translated into specific
information needs. To meet the management information needs,
E-
the researcher can gather secondary data and primary data or
both.
Implementing the Research Plan

The researcher next puts the research plan into action.
This involves collecting, processing and analyzing the information.
CC
Interpreting and Reporting the Findings

After collecting, processing and analyzing the information
collected, the researcher must now interpret the findings, draw
conclusions and then report to the management.
Check Your Progress

Fill in the blanks:
1. ________________ calls for determining the information
needed, developing a plan for gathering it efficiently and
presenting the management of the organization.
(c)
2. To meet the management information needs, the

researcher can gather ________________ data and
________________ data or both.
34
How to Prepare a Synopsis
S
Notes
Activity
Synopsis is an abstract form of research which underlines the
Write___________________
a short note on
synopsis.
research procedure followed and is presented before the guide for
___________________ evaluating its potentiality. In one sentence it may be described as a
___________________ condensation of the final report. The structure of synopsis varies
E
___________________
and also depends on the guides’ choice. However, for our
understanding a common structure may be framed as under:
___________________
___________________ Defining the Problem
UP
___________________ In defining the problem of the research objective, definition of key
terms, general background information, limitations of the study
___________________
and order of presentation should be mentioned in brief.
___________________
___________________ Review of Existing Literature

In this head, researcher should study the summary of different
points of view on the subject matter as found in books, periodicals
and approach to be followed at the time of writing.
E-
Conceptual Framework and Methodology
Under this head the researcher should first make a statement of
the hypothesis. Discussion on the research methodology used, duly
pointing out the relationship between the hypothesis and objective
of the study and finally discussions about the sources and means of
obtaining data should also be made. In this head the researcher
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should also point out the limitations of methodology, if any, and

the natural crises from which the research is bound to suffer for
such obvious limitations.
Analysis of Data
Analysis of the data involves testing of hypothesis from data
collected and key conclusions thus arrived.
General Conclusions
In general conclusions, the researcher should make a restatement
of objectives. Conclusion with respect to the acceptance or rejection
(c)
of hypothesis, conclusion with respect to the stated objectives,

suggested areas of further research and final discussion of possible
implications of the study for a model, group, theory and discipline.
Finally the researcher should mention about the bibliographies
and appendices. The above format is drawn after a standard
framework followed internationally in preparation of a synopsis. 35
S
However, in our country, keeping in view the object of research, Notes
style and structure of synopsis varies and quite often it is found ___________________
that the research guide exercises his own discretion in synopsis
___________________
preparation than following some acceptable international norms.
E
___________________
A standard format for preparation of synopsis commonly used in
management and commerce research in India may be drawn as ___________________
follows: ___________________
___________________
Introduction
UP
___________________
This includes definition of the problem and its review
from a historical perspective. ___________________
___________________
Objective of the Study
___________________
It defines the research purpose and its speciality from the existing
available research in the related field.
Literature Review
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It includes among other things, different sources from which the
required abstract is drawn.
Methodology
It is intended to draw out the sequences followed in research and
ways and manners of carrying out the survey and compilation of
data.
CC
Hypothesis
It is a formal statement relating to the research problem and it
need to be tested based on the researchers’ findings.
Model
It underlies the nature and structure of the model that the
researcher is going to build in the light of survey findings.
Check Your Progress

(c)
Fill in the blanks:

1. ________________ a formal statement relating to the
research problem and it need to be tested based on the
researchers’ findings.
Contd….
36
2. ________________ is an abstract form of research which
S
Notes
underlines the research procedure followed and is
___________________
presented before the guide for evaluating its
___________________ potentiality.
___________________
E
___________________ Summary
___________________ A research problem is the situation that causes the researcher to
___________________
UP
___________________
___________________ situation.
___________________ Once the problem has been selected, the same has to be understood
___________________ thoroughly and then the same has to be reframed into meaningful
terms from an analytical point of view. The best way is to discuss
the problem with friends or colleagues or with those who have the
knowledge of it.
The research plan outlines sources of secondary data and spells out
E-
the specific research approaches, contact methods, sampling plan
and instruments that the researcher will use to gather primary
data.
Lesson End Activity

CC
Discuss the structure of synopsis in brief.
Keywords
Synopsis: A brief summary or general survey of something.
Literature Review: A literature review is a text written by
someone to consider the critical points of current knowledge
including substantive findings as well as theoretical and
methodological contributions to a particular topic
Hypothesis: A proposition made as a basis for reasoning, without
any assumption of its truth.
(c)
Methodology: A system of methods used in a particular area of

study.
37
Review Questions
S
Notes
1. What is a research problem? State the main issues which
___________________
should receive the attention of the researcher. Give examples
___________________
to illustrate your answer.
E
___________________
2. What is the necessity of defining a research problem? Explain.
___________________
3. Why is the formulation of a research problem regarded as
important? ___________________
___________________
4. What is a hypothesis? Should every research problem have a
UP
hypothesis? ___________________
5. “A research scholar has to work as a judge and derive the ___________________
truth”. Discuss. ___________________
___________________
Further Readings
Books
Bhattacharyya, D K (2009). “Research Methodology.” Excel Books
E-
India.
Goddard, Wayne & Melville, Stuart (2004). “Research Methodology:
An Introduction.” Juta and Company Ltd.
Kothari, C. R. (2009). “Research Methodology: Methods and
Techniques.” New Age International.
CC
Kumar, Rajendar (2011). “Research Methodology.” APH

Publishing.
Panneerselvam, R. (2004). “Research Methodology.” PHI Learning
Pvt. Ltd.
Web Readings
http://nmmu.ac.za/robert/resprobl.htm
http://www.sagepub.com/upm-
data/6051_Chapter_3_Brewer_I_Proof_2.pdf
(c)
(c)
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E-
UP
ES
UNIT 5: Case Studies
Unit 5
39
S
Notes
Case Studies
___________________
___________________
E
___________________
Objectives
___________________
After analyzing these cases, the student will have an appreciation of the
concept of topics studied in this Block. ___________________
___________________
Case Study 1: Executive Development Programme at a
UP
Management Institute ___________________
___________________
An autonomous management institute of repute was well-known
for the high quality of the students graduating and entering to ___________________
the corporate world. The institute’s main mission was to extend
___________________
this high quality of education to those who could not undertake a
full time college programme. Therefore, the institute conducted
programmes aimed at providing education and training in several
areas of management to working executives. These working
executives attended the programmes either their own (after
working hours) or sponsored by the company where they were
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working.
The executive development programme had three tiers. The First
tier was to develop supervisory personal, the Second and Third
tiers were meant for middle level and top level executive. The
main emphasis of this programme was to improve trainee’s
managerial, decision-making, human relation skills. Over a
period of time the enrolment to this programme was on the
decline. The institute was at a loss to explain, why such a thing
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was happening? The institute was very sure that the many of the
doubts raised by the programme participants were amply cleared
and the feedback from the participants was very positive, with no
negatives in the feed back form. Despite this, the institute could
not trace the reason for the declining attendance. The institute
wondered, whether the decline was caused by economic factors or
increased competition from other education providers. Could it be
due to content or structure of the programme, or could it be due to
the fact that it was not properly promoted and not properly
targeted at the right level.
Consequently, a major promotion programme was conducted by
mailing the brochures which indicated the content and the
structure of the course. The mailing was done, both for those who
attended the past programme and others (freshers).
(c)
Questions:
1. What is the research problem?
2. What is the decision problem?
Contd….
40
3. What will be your advice to the management institute
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Notes regarding the method of addressing the research problem?
___________________ 4. What data should be collected and how this data can be used
to answer the research question?
___________________
Source: S N Murthy and Dr U Bhojanna (2010). “Business Research Methods”. Excel Books
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___________________
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___________________
___________________
___________________
___________________
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(c)
Case Study 2: Tasty Foods 41
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Notes
Tasty Foods (India) Ltd. is a wholly owned subsidiary of delicious ___________________

foods, a giant German based restaurants chain. Tasty food was
famous for its continental cuisine. The chain of restaurants was ___________________
well spread across Europe. It was eyeing the Asian continent for a
E
___________________
long time. In 1996, it entered Japan and gained enormous
success. The same year it entered Malaysia, Singapore and made ___________________
a landmark.
___________________
The Asian market was had prove to be lucrative, as the chain had
more than 100 restaurants across these countries. The chain ___________________
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thought of entering the Indian sub-continent, which was supposed
to have enormous potential. In 2001, the chain made a survey, ___________________
and the survey revealed the shocking information that, most food-
___________________
lovers were vegetarians. Unfortunately, the chain was well-known
for its non-vegetarian cuisine, especially, Barbecue and Dover ___________________
sole. The chain also gathered information that McDonalds and
Tricon groups of restaurants had already set up their operation, ___________________
but adopted vegetarian cuisine. The chain was surprised to find
that McDonalds, very well-known for its Hamburgers (Beef) and
chicken burgers had adopted Indian dishes and were running
successfully. Moreover, Tricon has set up a 100% pure vegetarian
restaurant in Ahmedabad where the majority were vegetarians.
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The chain was in a dilemma. But it finally decided to launch its
restaurants in different metros of the country, with its world
famous non-vegetarian cuisine. The cuisine also contained
vegetarian dishes but not many. The restaurant had a poor
response rate in the first six months. The chain incurred a loss of
` 2 crore in this period, and hence thought of closing some of its
restaurants. Then it appointed a well renowned market research
agency to find out what went wrong. Research findings revealed
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that if the chain wanted to survive and succeed in the Indian

market it had to add vegetarian dishes to its cuisine.
The main problem was that the cuisine of the chain was
predominantly non-vegetarian, and did not contain many
vegetarian dishes. It appealed to the global headquarters in
Germany to solve the problem, by suggesting vegetarian dishes.
The headquarters after consulting the experts advised the chain
to stick to the non-vegetarian cuisine. It also suggested that the
chain might run the restaurants in particular metros where more
number of non-vegetarian food lovers were present and close
down rest of the restaurants. Contrary to this decision, the chain
was firm to introduce many vegetarian cuisines and asked the
expert team to find vegetarian dishes irrespective of its
acceptance by customers.
(c)
Questions:
1. Mention the proper research design to find out ‘consumers
opinion’ on cuisine.
2. Suggest suitable locations, sample size and technique and
scales to be used to find out accurate opinion.
Contd….
42
3. What appropriate data collection would you suggest and the
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Notes instrument to be used for this situation?
___________________ 4. Mention the necessary components that the instruments
contain to find the consumer opinion accurately.
___________________
Source: S N Murthy and Dr U Bhojanna(2010). “Business Research Methods”. Excel Books
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___________________
___________________
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___________________
___________________
___________________
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(c)
UNIT 6: Decision-making in Research Methodology
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Notes
___________________
___________________
___________________
___________________
___________________
___________________
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___________________
___________________
___________________
___________________
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BLOCK-II
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(c)
44
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Notes
UNIT 6: DECISION-MAKING IN RESEARCH
___________________ UNIT 8: RESEARCH DESIGN
METHODOLOGY
z Introduction
z ___________________
Introduction
z Research Design
What is Decision-Making?
___________________
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z
z Types of Research Design
z Components in Decision-making
___________________
z Types of Decision Models

___________________ UNIT 9: CAUSAL RESEARCH
z Introduction
___________________
UNIT 7: RELATIONSHIP BETWEEN MANAGEMENT
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z Causal Design
AND___________________
RESEARCH PROBLEM
z Introduction z Types of Causal Research
___________________
z Management and Research Problem z Quasi-Experimental Designs
___________________
z Respective Roles
___________________ UNIT 10: CASE STUDIES
z Problems Encountered by Researchers in India
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(c)
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Notes
Activity
___________________
Define Decision-making.
Decision-making in Research ___________________
Methodology ___________________
___________________
Objectives ___________________
___________________
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topics:
___________________
 What is decision making?
 Components in decision making ___________________
 Types of decision models ___________________
___________________
Introduction
Decision can be regarded as the mental processes (cognitive
process) resulting in the selection of a course of action among
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several alternative scenarios. Every decision making process
produces a final choice. The output can be an action or an opinion
of choice.
What is Decision-making?
Decision in any aspect refers to the selection of the best or
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favourable alternative out of several alternatives. In earlier days

decisions were made mainly on personal judgement.
Nowadays in marketing one has to consider various aspects such
as planning, organization, direction, command and control. While
performing so many activities, marketing has to face many
situations from which the best choice is to be taken. This choice
making is known as decision-making. Simply, decision is a
selection from two or more courses of action.
Decision-making may be defined as–‘a process of best selection from
a set of alternative courses of action, which is supposed to meet
(c)
objectives up to the satisfaction of the decision maker’.

The knowledge of statistical techniques helps to select the best
action. Measures of central tendency show the average value,
dispersion measures the average deviations of variables.
Techniques of correlation and regression help in establishing
functional relation of variables, where forecasting helps in
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Notes scientific prediction. Again, time series analysis gives us an
Activity
___________________
What are the components of estimation of variables subject to condition. The test of hypothesis
decision making? procedures was designed to test a statistical statement about a
___________________
population (the null hypothesis) for a given level of significance.
___________________
The statistical decision theory (also known as Bayesian decision
___________________
theory) in the present context refers to value of information under
___________________ conditions of uncertainty. In this case the probability theory has a
___________________ vital role. As such, this probability theory will be used more
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frequently in the decision-making theory under uncertainty and
___________________
risk.
___________________
The statistical decision theory tries to analyze the logical structure
___________________
of the problem in alternative actions, states of nature, possible
___________________ outcomes and likely payoffs from each such outcome.
Check Your Progress

True or False:
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1. The knowledge of statistical techniques helps to
deselect the best action.
2. The statistical decision theory tries to analyze the
logical structure of the problem.
Components in Decision-making
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The management of an industry or an organization is involved in

taking decisions about the development or expansion of the
concern. No doubt the concern has to face many problems from
time to time. The management has to overcome or solve these
problems. These problems may be regarding the availability of
resources, quality of production, costing, publicity or promotion,
etc. To illustrate for the publicity of goods produced, the
manufacturer or seller may take the help of TV, radio, newspapers
or door-to-door promotion. Many such endless problems are there.
In each of these decision-making problems, there are some common
components. These are discussed as follows.
(c)
Course of Action
Decision-making problems deal with the selection of a single act
from a set of alternative acts. If two or more alternative courses of
action occur in a problem, then making a decision is necessary to
select only one course of action. In the above example of
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advertising goods produced, there are so many alternative courses Notes
of actions. The final choice of any one will depend on the payoff ___________________
(or money value) of each strategy under the circumstances.
___________________
Let the acts or actions be symbolised by a1, a2, a3, a4, ...........; then
___________________
the totality of all these actions is known as action space denoted by
___________________
A. For four actions a1, a2, a3, a4; A = action space = {a1, a2, a3} or A =
{A1, A2, A3}. In a tree diagram the acts or actions are given after the ___________________
initial fork as shown in Figure 6.1. Acts may be also be represented ___________________
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in the following matrix form, i.e., either in row or column way. ___________________
___________________
___________________
___________________
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Source: “Research Methodology”. (2012).University of Petroleum & Energy Studies. (P44)
Figure 6.1: Actions after the Initial fork
States of Nature (Events)

If the outcome of some action (or act) is not known in advance, then
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that outcome is uncertain, but is vital for the choice of any act.
When there are many possible outcomes (or states of nature) of an
event, one cannot predict what will happen–it is only in terms of
probability that one may forecast. The various states of nature are
outside a firm and, as such, not under their control, e.g., consumer
demand, change of taste, improvement of technology, etc. These
affect the payoff and, hence, the choice of an act. A set of states of
nature may be represented in any one of the following ways:
S = {S1, S2, S3, ......., Sn}
or E = {E1, E2, E3 ......., En}

(c)
or  = {1, 2, 3 .......}
For example, if a cosmetic product is marketed, it may be highly

liked by customers (outcome 1) or it may not appeal at all
(outcome 2), or it may satisfy only a small fraction, say 20%
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Notes
(outcome 3).
___________________
  = {1, 2, 3}
___________________
In a tree diagram the places are text to acts. We may also get
___________________
another act on the happening of an event in Figure 6.2.
___________________
___________________
___________________
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___________________
___________________
___________________
___________________
Figure 6.2: Happening of an event
In matrix form they may be represented in either of the following

two ways:
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Figure 6.3: Matrix
Outcomes
There is an outcome (or consequence) of the combination of each
act with each possible state of nature. This outcome is also known
as conditional value.
(c)
In general, if there are m possible actions and n admissible states

of nature, the consequences will be m × n in number.
It may be noted here that these consequences may be evaluated in
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several ways such as: Notes
Activity
 In terms of profit ___________________
Highlight the types of decision
models.
 In terms of cost ___________________
___________________
 In terms of opportunity loss
___________________
 Utility
___________________
Check Your Progress
___________________
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Fill in the blanks:
___________________
1. There is an _______________ of the combination of each ___________________
act with each possible state of nature.
___________________
2. _______________ problems deal with the selection of a
___________________
single act from a set of alternative acts.
Types of Decision Models

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The aim of the decision theory is to guide the decision-maker in
choosing the best course of action. Depending upon the available
information about the occurrence of various states of nature and
environment, the decision models may be classified into the
following types:
 Certainty
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 Risk
 Uncertainty
Decision-making under Certainty

In this case the decision-maker can easily select the course of
action, as he presumes that only one state of nature is relevant for
his purposes. For example, suppose a person desires to deposit
` 10,000 for a certain period. Bank deposit gives 12%, Unit Trust of
India offers 14% and Government bond’s rate is 11% p.a. All the
investments are fully secured. Then surely investment in Unit
Trust of India is the best choice.
(c)
Decision-making Under Risk

Here the decision-maker faces many states of nature. As such, he
is supposed to believe authentic information, knowledge, past
experience or happenings to enable him to allot probability values
to the likelihood of occurrence of each state of nature. Sometimes
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Notes with reference to past records, experience or information,
___________________ probabilities to future events could be allotted. On the basis of
probability distribution of the states of nature, one may select the
___________________
best course of action having the highest expected payoff value.
___________________
The expected value (or expected monetary value, i.e., EMV) is
___________________
widely used to evaluate the alternative course of action (or act).
___________________ The expected value is calculated by the following formula for one
___________________ row only:
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___________________  Pj Oij = P1 Oi1 + P2 O12 + ............ + Pn Oin’
___________________ Where P1 to Pn indicate the probabilities of states of nature (or
___________________ events) and Oij the payoffs of the outcomes due to combination of
___________________ each event and act.
Steps for Calculating Expected Monetary Value (EMV)

 Construct the payoff table listing the different courses of
action and states of nature.
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 List the payoffs thus obtained with the corresponding
probability of each state of nature.
 Multiply the payoffs with the associated probabilities and add
up these values for each course of action which gives the
expected value.
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 On the basis of these expected values, determine the best

course of action or strategy.
Example:
The payoff table for three courses of action (A) with three states of
nature (E) (or events) with their respective probabilities (P) are
given. Find the best course of action.
Table 6.1: Payoff Table

(c)
Solution:
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Notes
Let us calculate the expected value of each act:
___________________
A1 : 2.5 (.3) + 2 (.4) + (-1) (.3) = .75 + .8 - .3 = 1.25
___________________
A2 : 4 (.3) + 2.6 (.4) + 0 (.3) = 1.2 + 1.04 + 0 = 2.24
___________________
A3 : 3 (.3) + 1.8 (.4) + 1 (.3) = .9 + .72 + .3 = 1.92 ___________________
From the above calculations we find that A2 is the best. So the ___________________
decision-maker will select the alternative A2 amongst the three ___________________
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courses of action. ___________________
Decision-making under Uncertainty ___________________
In this case the probabilities associated with the different states of ___________________
nature are unknown. Moreover, there is no previous data or ___________________

information available which could allot the probability of the
occurrence of states of nature.
As such, the decision-maker cannot calculate the expected payoff
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for the course of action. The decision-maker faces problems when
he desires to introduce new plant or production. A number of
decision criteria have been provided for decision-making under
such a state of nature. The decision-maker may choose any one of
the following:
Maximin
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The course of action that maximizes the minimum possible payoff

is selected. The decision-maker lists down the minimum outcome
within each course of action (or act) and then selects the strategy
with the maximum number.
This is also known as a pessimistic decision criterion as it locates
the strategy having the least loss.
Maximax
In this case the course of action that maximizes the maximum
payoff is taken. The decision-maker lists down the maximum
(c)
payoff associated with each course of action, and then selects that
alternative having maximum number.
This may be called an optimistic decision criterion as the decision-
maker selects the alternative of highest possible gain.
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Notes Minimax Regret
___________________ The regrets (i.e., opportunity loss) for each course of action are to
___________________ be calculated with reference to the payoff list of various alternative
acts. Now obtain the maximum regret and hence select the course
___________________
of action with minimum of the maximum regret values.
___________________
___________________
Hurwitz Criterion
___________________ This criterion makes a compromise between maximax and
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maximin, i.e., and optimistic and pessimistic decision criterion. At
___________________
first, a coefficient of optimism a (0  a  1) is selected, which is
___________________ assumed to be degree of optimism. Now, according to Hurwitz,
___________________ select that alternative which maximizes.
___________________
Criterion on Rationality
This criterion is based on the principle of equal n likelihood. The
decision-maker first calculates the average outcome for each course
of action and then selects the maximum number.
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Check Your Progress
Fill in the blanks:
1. The decision-maker can calculate the expected
________________ for the course of action.
2. The ________________ is widely used to evaluate the
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alternative course of action (or act).
Summary
Decision making is the study of identifying and choosing
alternatives based on the values and preferences of the decision
maker. Making a decision implies that there are alternative
choices to be considered, and in such a case we want not only to
identify as many of these alternatives as possible but to choose the
one that best fits with our goals, objectives, desires, values, and so
on.
(c)
Lesson End Activity

Payoffs of three activities X, Y and Z and the nature A, B and C are
given below:
Payoff (in `)
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Notes
Activity Nature X Y Z
___________________
A -2 -5 20
___________________
B 20 -10 -5
C 40 60 30 ___________________
The probabilities of the nature are 0.3, 0.4 and 0.3 ___________________
___________________
Calculate the EMV for the above data and select the best activity.
___________________
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Keywords ___________________
Decision: It refers to the selection of the best or favourable ___________________
alternative out of several alternatives. ___________________
The Statistical Decision: It refers to value of information under ___________________

conditions of uncertainty.
Decision-making: Decision making process is continuous and
indispensable component of managing any organization or
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business activities.
Decision-making Problems: It deals with the selection of a
single act from a set of alternative acts.

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1. “The knowledge of statistical techniques helps to select the

best action.” Explain.
2. Discuss the states of nature in decision making.
3. Describe Decision-making Under Certainty.
4. What are the Steps for Calculating Expected Monetary Value?
5. “A number of decision criteria have been provided for decision-
making under such a state of nature.” Elucidate.
Further Readings
(c)
Books
Bhattacharyya, D. K. (2009). Research Methodology. Excel Books
India.
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Notes
___________________
___________________
___________________ Pvt. Ltd.
___________________
Web Readings
___________________
http://www.managementstudyguide.com/what-is-decision-
___________________
making.htm
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___________________
http://en.wikipedia.org/wiki/Decision_making
___________________
http://www.hss.cmu.edu/departments/sds/ddmlab/researchn.htm
___________________
http://docs.health.vic.gov.au/docs/doc/885C9EB9C93694E4CA2578
___________________
8B001D0467/$FILE/How%20to%20use%20qualitative%20research
%20final.pdf
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(c)
UNIT 7: Relationship between Management and Research Problem
Unit 7
55
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Notes
Activity
Relationship between
___________________
Define research problem.
___________________
Management and Research
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___________________
Problem ___________________
___________________
Objectives ___________________
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After completion of this unit, the students will be aware of the following ___________________
topics:
___________________
\ Management and Research Problem
___________________
\ Respective Roles
___________________
\ Problems encountered by researchers in India
Introduction
A research problem is the situation that causes the researcher to
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situation.
There are many problem situations that may give rise to research.
Three sources usually contribute to problem identification. Own
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experience or the experience of others may be a source of problem

supply. A second source could be scientific literature. You may
read about certain findings and notice that a certain field was not
covered. This could lead to a research problem. Theories could be
a third source. Shortcomings in theories could be researched.
Research can thus be aimed at clarifying or substantiating an
existing theory, at clarifying contradictory findings, at correcting a
faulty methodology, at correcting the inadequate or unsuitable use
of statistical techniques, at reconciling conflicting opinions, or at
solving existing practical problems.
(c)
Management and Research Problem

An old saying is "A problem well defined is half solved". This is
held true in the area of research. Hence, the research activities
start with defining the problem. Problem is primarily a situation of
56 dilemma of decision situation and the simplest of decision
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Notes situations can be characterized by the following conditions:
___________________
z There is an individual operating within some environment to
___________________ which the problem can be attributed.
___________________ z The individual has at least two courses of action that can be
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___________________ pursued, and is able to make a choice from the available
courses of action.
___________________
z There are at least two possible outcomes of that choice, and
___________________
one of these outcomes is preferred to the other.
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___________________
z There is a chance, but not an equal chance, that each course of
___________________
action will lead to the desired outcome.
___________________
Thus, a problem is the dilemma of choosing one alternative among
___________________ various alternatives for making a choice on courses of action.
Which course of action needs to be selected, gives rise to the need
of research.
One of the best ways to approach the research process is to state
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the basic dilemma that arises the need for research and than to
develop other questions by progressively breaking down the
original question in more specific ones. This original question is
called the management problem which when is broken in specific
ones is called the research problem.
Management problem is the actual problem that the management
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is facing, viz;
z Rising cost
z Sales decline
z Increasing LTO
z Market contraction and expansion decisions; etc.
Breaking down the management problem into specific one requires
a step wise analysis.
First, the management dilemma needs to be defined which is not a
difficult task as all modern organizations keep track of their
(c)
performance factors (Like: Sales, Profits, Employees Turnover;

etc.). For arriving at final management dilemma the first stage is
exploration where a researcher needs to review published
resources and interview information gatekeepers. By collecting and
recording the exploratory information, the researcher needs
toword the dilemma or the correction of the symptom in the
question form, usually starting with, "How can the 57
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organization…?" Notes
Activity
Once the management dilemma is worded in the question form ___________________
Discuss the various roles.
then further exploratory research is taken to find out the possible ___________________
management actions that might be taken to solve the management
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___________________
dilemma. This requires qualitative research techniques to be used
viz; Brain storming with the experts, Interviews with information ___________________
gatekeepers, secondary sources study, etc. ___________________
Finally, several research questions is to be framed which could be ___________________
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used for further investigation by using both qualitative as well as ___________________
quantitative study. Each question is an alternative action that
___________________
management might take to solve the management dilemma.
Among them the most plausible action or the one that offers the ___________________
greatest gain using the fewest resources should be researched first. ___________________
Check Your Progress

True or False:
1. A problem is the dilemma of choosing one alternative
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among various alternatives for making a choice on
courses of action.
2. Financial problem is the actual problem that the
management is facing.
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Respective Roles
Following are the Respective Roles:
The Management's Role

The manager must move from the management dilemma to
management question to proceed with the research process.
Management problems are too numerous to list, but they can be
categorized in:
z Choice of purpose or objective: "What do we want to achieve?"
z Generation and evaluation of solution: "How can we achieve
(c)
them?"
z Troubleshooting or control situation: "Why are we facing the
present situation?"
58
Researcher’s Role
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Notes
Once the researcher has a clear statement of the management
___________________
question, they with the help of the manager must translate them
___________________
into research question.
___________________
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The research question should be a fact - oriented, information -
___________________ gathering question. Only relevant alternatives should be
___________________ considered. To have an idea of relevant alternatives the insight of
manager must be taken. This will also help the researcher having
___________________
idea of manager's decision making environment.
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___________________
The researcher’s task is to assist the manager in formulating a
___________________
research question that fits to resolve the management dilemma. A
___________________ Research question is the hypothesis of choice that best states the
___________________ objective of the research study. It is more specific management
question that needs to be answered and this can be more than one.
After exploration is complete the research questions must be fine
tuned.
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(c)
Figure 7.1: Steps to Investigative Questions

After the research problem is formulated it should further be 59
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broken down in Investigative question and Measurement question. Notes
Activity
Investigative questions are questions the researcher must answer ___________________
Write short notes on the
to arrive at a conclusion about the research question. These problems Encountered by
___________________
Researchers in India.
questions reveal the specific piece of information the manager feels
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___________________
to know to answer the research question. Measurement questions
are the questions that the researcher asks to the respondents. ___________________
They appear on the questionnaire and are in line with the ___________________
information needed for the research question.
___________________
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Fill in the blanks: ___________________
1. The research question should be a _________________ ___________________

information – gathering question. ___________________
2. After the research problem is formulated it should

further be broken down in _________________ question
and Measurement question.
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Problems Encountered by Researchers in India
Researchers in India, particularly those engaged in empirical
research, are facing several problems.
Some of the important problems are as follows:
The lack of a scientific training in the methodology of research
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z
is a great impediment for researchers in our country. There is
paucity of competent researchers. Many researchers take a
leap in the dark without knowing research methods. Most of
the work, which goes in the name of research, is not
methodologically sound. Research to many researchers and
even to their guides, is mostly a scissor and paste job without
any insight shed on the collated materials. The consequence is
obvious, viz., the research results, quite often, do not reflect
the reality or realities. Thus, a systematic study of research
methodology is an urgent necessity. Before undertaking
research projects, researchers should be well equipped with all
(c)
the methodological aspects. As such, efforts should be made to

provide short duration intensive courses for meeting this
requirement.
z There is insufficient interaction between the university
research departments on one side and business
60 establishments, government departments and research
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Notes institutions on the other side. A great deal of primary data of
___________________ non-confidential nature remains untouched/untreated by the
researchers for want of proper contacts. Efforts should be
___________________
made to develop satisfactory liaison among all concerned for
___________________
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better and realistic researches. There is need for developing
___________________ some mechanisms of a university—industry interaction
___________________ programme so that academics can get ideas from practitioners
on what needs to be researched and practitioners can apply
___________________
the research done by the academics.
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___________________
z Most of the business units in our country do not have the
___________________
confidence that the material supplied by them to researchers
___________________ will not be misused and as such they are often reluctant in
___________________ supplying the needed information to researchers. The concept
of secrecy seems to be sacrosanct to business organisations in
the country so much so that it proves an impermeable barrier
to researchers. Thus, there is the need for generating the
confidence that the information/data obtained from a business
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unit will not be misused.
z Research studies overlapping one another are undertaken
quite often for want of adequate information. This results in
duplication and fritters away resources. This problem can be
solved by proper compilation and revision, at regular intervals,
of a list of subjects on which and the places where the research
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is going on. Due attention should be given toward

identification of research problems in various disciplines of
applied science which are of immediate concern to the
industries.
z There does not exist a code of conduct for researchers and
inter-university and interdepartmental rivalries are also quite
common. Hence, there is need for developing a code of conduct
for researchers which, if adhered sincerely, can win over this
problem.
z Many researchers in our country also face the difficulty of
adequate and timely secretarial assistance, including
(c)
computerial assistance. This causes unnecessary delays in the

completion of research studies. All possible efforts are made in
this direction so that efficient secretarial assistance is made
available to researchers and that too well in time. University
Grants Commission must play a dynamic role in solving this 61
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difficulty. Notes
z Library management and functioning is not satisfactory at ___________________

many places and much of the time and energy of researchers ___________________
are spent in tracing out the books, journals, reports, etc.,
E
___________________
rather than in tracing out relevant material from them.
___________________
z There is also the problem that many of our libraries are not
___________________
able to get copies of old and new Acts/Rules, reports and other
government publications in time. This problem is felt more in ___________________
UP
libraries which are away in places from Delhi and/or the state ___________________
capitals. Thus, efforts should be made for the regular and
___________________
speedy supply of all governmental publications to reach our
libraries. ___________________
___________________
z There is also the difficulty of timely availability of published
data from various government and other agencies doing this
job in our country. Researcher also faces the problem on
account of the fact that the published data vary quite
significantly because of differences in coverage by the
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concerning agencies.
z There may, at times, take place the problem of
conceptualization and also problems relating to the process of
data collection and related things.
Opinion is a verbal statement of a person and given merely for the
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sake of responding or rather to answer a particular question

without any object or aim and based on superficial and or partial
information of the object or situation about which the opinion is
passed.
Research, unless it is understood in its right spirit, cannot be
undertaken with success. What is important for researchers is to
take research more as a passion than for career progress. From our
experience, we see that most of the students are interested in
research merely to fulfil their career prospects. In this way, certain
researches are carried out in a mechanical way. The researcher
should have the natural interest in the research.
(c)
There are still certain things which we need to consider before we

go into the research matter in more depth. What are the
management areas and what is the scope available for research in
this field?
62 Now to define management, without going into the traditional
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Notes approach we may put it in more simplistic terms like:
___________________ Management in all business and organizational activities is the act
of getting people together to accomplish desired goals and
___________________
objectives using available resources efficiently and effectively.
___________________
E
Management comprises planning, organizing, staffing, leading or
___________________ directing, and controlling an organization (a group of one or more
___________________ people or entities) or effort for the purpose of accomplishing a goal.
___________________ The foregoing discussions help us to understand that there are
UP
___________________ different functional areas of management. Such functional areas
may be listed as follows:
___________________
z Marketing
___________________
z Human resource management
___________________
z Production
z Finance and accounting
z Information technology
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z Material planning and production control
z Purchasing function
z Advertising and sales promotion function
z Social functions, which enables a company to fulfil the social
responsibility, etc.
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There may be certain other function too which, however, depends

more on the requirements of the environment or particular
environment that prevails in a company.
Research on competency development is also another important
aspect, which focuses on integration of business plan of the
company with selecting the right individual for the job.
Competency is defined as the smallest unit of on-the-job behaviour
Similar contemporary areas of research interest are; Innovation
and creativity, Six-sigma practices, Supply chain management,
(c)
Knowledge management issues, Business process outsourcing,

Human resource outsourcing, Customer Relationship Management
(CRM), e-CRM, Web marketing, Financial re-engineering, etc.
In selecting a research topic, out of several potential topics, the
first task is to narrow down to the most potential one out of the
different alternatives. Selection of a research topic is the first task 63
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of the research process. The research process consists of a series of Notes
actions or steps necessary to carry out research in a sequential and ___________________
logical manner. Selection of research topic although primarily
___________________
depends on the guides’ instructions, the researcher should also
E
take independent decisions to a great extent for influencing the ___________________
guide in this matter. Certain pertinent factors in this regard are: ___________________
z The selected topic should have some current implication. ___________________
z There should be scope and amenities to carry out the intended ___________________
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research, as for example; availability of required data, ___________________
feasibility of carrying out survey etc.
___________________
z The selected research topic should contribute to knowledge in
___________________
the desired field.
___________________
z The selected topic should receive the necessary concurrence
from the research guide.
Check Your Progress

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True or False:
1. Selection of a research topic is the last task of the
research process.
2. The selected topic should have some current
implication.
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Summary
Management research is in the throes of a healthy debate on both
its ontological status and the appropriateness of various research
processes. Research on competency development is also another
important aspect, which focuses on integration of business plan of
the company with selecting the right individual for the job.
Selection of research topic although primarily depends on the
guides’ instructions, the researcher should also take independent
decisions to a great extent for influencing the guide in this matter.
(c)
Lesson End Activity

“The lack of a scientific training in the methodology of research is a
great impediment for researchers in our country.” Explain.
64
Keywords
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Notes
___________________ Problem: A problem is the dilemma of choosing one alternative

___________________
among various alternatives for making a choice on courses of
action.
___________________
E
Competency: It is defined as the smallest unit of on-the-job
___________________
behaviour that is observable, measurable, and changes over time.
___________________
Opinion: It is a verbal statement of a person and given merely for
___________________
the sake of responding or rather to answer a particular question
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___________________ without any object or aim and based on superficial and or partial
___________________ information of the object or situation about which the opinion is
passed.
___________________
Research: The systematic investigation into and study of
___________________
materials and sources in order to establish facts and reach new
conclusions.

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1. “A problem well defined is half solved.” Explain.
2. Highlight conditions for decision situations.
3. What are the problems which management is facing?
4. Describe the Researcher’s Role.
5. “Research studies overlapping one another are undertaken
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quite often for want of adequate information.” Elucidate.
Further Readings
Books
India.
(c)

Pvt. Ltd.
65
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Web Readings Notes
http://oro.open.ac.uk/12053/4/jan%27s_chapter_final_draft.pdf ___________________
http://hull.ac.uk/php/sbsad2/Mode%202%20Management%20Resea ___________________
rch.pdf
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___________________
http://wiki.answers.com/Q/What_is_the_relationship_between_man ___________________
agers_and_research
___________________
http://www.hss.iitb.ac.in/FGKS_IITB_2010/papers/Ram_Gupta.pdf
___________________
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___________________
___________________
___________________
___________________
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(c)
(c)
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ES
UNIT 8: Research Design
Unit 8
67
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Notes
Activity
Research Design
___________________
Define Research Design.
___________________
E
___________________
Objectives
___________________
topics: ___________________
\ Research Design ___________________
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\ Types of Research Design
___________________
\ Principle methods of data collection
___________________
Introduction ___________________
___________________
Research design or model indicates a plan of action to be carried
out in connection with a proposed research work. It provides only a
guideline for the researcher to enable him to keep track of his
actions and to know that he is moving in the right direction in
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order to achieve his goal. The design may be a specific presentation
of the various steps in the process of research. These steps include
the selection of a research problem, the presentation of a problem,
the formulation of the hypothesis, conceptual clarity, methodology,
survey of literature and documentation, data collection, testing of
the hypothesis, interpretation, presentation and report writing.
When Apple India Ltd. launched its Apple juice with extraordinary
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caution no comprehensive study had ever been done by Apple India

Ltd. In this unit various types of research designs are explained
with suitable examples.
Research Design
The purpose of marketing research is to provide information which
will aid in management decision-making. A marketing manager,
for example, in a large consumer goods company may want to
collect information to assess whether or not to launch a new
product or to determine why the sales of a particular product are
(c)
declining. In collecting this information, three major steps may be

identified. First and the foremost is establishing of research
objectives. Then a research plan needs to be formulated and
implemented; and finally data analyzed followed by a presentation
of research findings. A clear and precise definition should be made
by the management of the decision problem, this should be
68 expressed not only in terms of problem symptoms such as a decline
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Notes in market share but also with possible contributing factors such as
___________________ changes in competitors’ strategies or in consumers’ tastes, as well
as the actions the management might take based on research
___________________
findings. Otherwise, irrelevant information may be collected.
___________________
E
Development of a research plan requires what data are to be
___________________
collected; what research techniques and instruments are to be used;
___________________ how a sample is to be selected; and how information is to be
___________________ collected from this sample. Sometimes the required information may
already be available in secondary sources such as the government or
UP
___________________
trade reports, company records, or sales force reports. This will not,
___________________ however, have been collected with the particular problem in mind.
___________________ Consequently, primary data collection may be required, in other
words, collect information specifically for the particular problem.
___________________
Where primary data are collected, observational or other qualitative
techniques, experimentation or survey research may be conducted.
Observations and other qualitative techniques, such as projective
techniques (word association, sentence completion tasks and focus
group interviewing) are most appropriate in the initial stages of
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research, when little is known about the problem. The onus of
interpretation is, however, placed on the researcher and
consequently, such techniques are open to criticisms of subjectivity.
Experimental techniques are also potentially applicable, but they
are rarely used except in-store experiments study, for example, the
impact of in-store promotions on sales. Test marketing can also be
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viewed as a field experiment. Survey research is the technique

most commonly used in marketing research. A standard
questionnaire can be administered to large samples and
systematically analyzed using computerised techniques.
In observational or qualitative research instruments such as
coding scheme, recording sheets and other tests may need to be
designed. The most common instrument used is a questionnaire.
For unstructured interviews and focus groups, only an interview
guide indicating the topics to be covered may be required. A crucial
aspect of survey research is, however, the design of a carefully
worded questionnaire to elicit desired information from
respondents. Attention to question form and sequencing is also
(c)
essential in order to avoid biased responses.
Collection of Data
Three principle methods of data collection may be considered as
following:
Telephone Interviewing 69
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Notes
Telephone interviewing is quick and can be conducted from a
central location where interviewers are controlled by a ___________________
supervisor. However, only with this method the persons having ___________________
telephones can be interviewed and a limited number of questions
E
___________________
can be asked.
___________________
Mail Questionnaires ___________________
Mail questionnaires are the cheapest method of survey ___________________
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administration, but suffer from low response rates and also ___________________
assume that the respondent clearly understands and can respond
___________________
to questions.
___________________
Personal Interviewing ___________________
Personal interviewing is the most flexible method since the
interviewer can select the sample by judgement or convenience
sampling and is able to explain questions to the respondent. It is,
however, an expensive method of data collection and susceptible to
E-
interviewer bias. In implementation of the research plan, this is
where major sources of data inaccuracy and unreliability often arise.
In the case of surveys, for example, respondents may bias findings
by refusing to cooperate, by providing inaccurate answers, for
example on income or by giving socially undesirable responses.
Interviewers may also bias results by encouraging a specific
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response, by inaccurate recording of responses or in extreme cases,

by falsifying responses.
Current developments in telecommunications and computer
technology are rapidly changing data collection procedures and
improving their efficiency. The results can also be analyzed and
updated with each successive response, thus, considerably
reducing research time and costs. Data analysis includes
tabulating, classifying and interpreting the information collected.
The complexity of the analysis depends to a large extent on
management needs. In many cases tabulation or cross-tabulation
(c)
of results with averages and other summary statistics may suffice.

In other cases, more sophisticated multivariate techniques such as
factor or cluster analysis or multidimensional scaling may be
required, if more complex interactions in the data are to be
examined. Finally the presentation of research findings may be
verbal and/or written. In either case, the main focus should be on
70 clear presentation of key research findings and their implications
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Notes on the decisions to be made by the management. As it is obvious,
___________________ the most vital element in this process is research plan or the
Activity
What are the various types of
research framework/design. For the research to be valid and
___________________
Research Design? reliable it is imperative that proper thought should go into the
___________________
E
design of research, otherwise it may lead to GIGO (Garbage In,
___________________ Garbage Out) or mere data collection exercise with no information
___________________ to the management for its problem-solving exercise.
___________________ A marketing research design may be described as a series of
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advance decisions that, when taken together, comprises a master
___________________
plan or model for the conduct of the investigations. It is the
___________________
blueprint that is followed in completing a study. An appropriate
___________________ design requires careful consideration of the problem and objectives
___________________ to be met in relation to the time and resources available for the
study.
Objectives of the research including a statement of general
objectives and other operational objectives in as specific form as
possible are as follows:
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z The relation of these objectives with the problem at hand.
z The form in which the results will be obtained and how they
may be used.
z The methods to be used in attaining each of the objectives of
the research.
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z A time schedule for the entire research, including speculations,

deadlines for specific phases of the research.
z Personnel and administrative set-up, with duties specified for
each person working on the research project.
Check Your Progress

True or False:
1. Current developments in telecommunications and
computer technology are rapidly changing data
collection procedures and improving their efficiency.
(c)
2. Mail questionnaires are the cheapest method of survey

administration.
Types of Research Design 71
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Notes
On the basis of objectives of the marketing research, the research
___________________
can be classified into:
z Exploratory research ___________________
E
z Conclusive research ___________________
___________________
On the basis of character of data research is often classified into:
___________________
z Quantitative research
___________________
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z Qualitative research
___________________
The research design for exploratory research is best characterized
___________________
by its lack of structure and flexibility. It is generally used for the
___________________
development of hypothesis regarding potential problems and
opportunities. Exploratory research is further subdivided into (a) ___________________
Search of secondary data (b) Case study (c) Survey of experts.
Conclusive research which is used to provide information for the
evaluation of alternative courses of action can be sub-classified into
(a) Descriptive research (b) Causal or experimental research.
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Descriptive market research is used to describe marketing
phenomena while trying to determine the association among
variables. It also seeks to predict future marketing phenomena.
In cross sectional design, which is typically used in descriptive

research projects, a sample of population elements is taken at one
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point of time. In descriptive research, we can make use of both case

study and statistical study. Causal or experimental research seeks
to unearth cause and affect relationships. A good causal research
design seeks to minimize the interference of external variables
while studying the relationship between variables. There is,
however, a third type of research, also termed as performance
monitoring research that is an important part of marketing
research activity of a firm. It typically requires a longitudinal
research design (panel design), in which a fixed sample of
population elements is measured repeatedly. In the traditional
panel, the same variables are measured every time, as opposed to
(c)
an omnibus panel where different variables are measured each

time. In both types of panels, the sample of respondents remains
fixed.
72
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Notes
___________________
___________________
___________________
E
___________________
___________________
___________________
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___________________
___________________ Source: “Research Methodology”. (2012).University of Petroleum & Energy Studies. (P86)
___________________ Figure 8.1: Research Design

___________________
Exploratory Research Design
Flexibility and creativity characterize exploratory research study
since the aim of its investigation is to find new hypotheses. Hence,
formal design is rare in this type of research and much is left to the
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creative imagination of the researcher. He could conduct a study of
secondary sources of information or get views from the experts or
resort to case study analysis. Researchers exercise their individual
initiative in spotting and following leads in an organized way.
Exploratory Research using Secondary Sources of Information

Many companies who regularly conduct market research studies
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have maintained a record of research findings over the years, the

access to which is both quick and economical for a researcher.
Looking for hypotheses, a researcher could consult basic research
findings reported in professional journals. Other fruitful sources of
secondary data are public libraries, newspapers, government
reports, trade journals, general books, etc. Computerization of
database and quick search systems has made this type of research
more organized, exhaustive and quick. At the same time there
comes the problem of information overload and market research is
the only way of shifting the relevant information by use of creative
solutions to get insights on which management can act.
(c)
Exploratory Research using Expert Opinions/Individuals with

Ideas
Experts can give valuable insights into a marketing problem
because of their experience with the problem at hand, ability to act
as an observer and an ability to express ideas unlike any other 73
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individual. Despite the desire to find individuals with ideas, it is Notes
important not to concentrate the investigation only among the ___________________
better educated or more articulate persons. A practical solution is
___________________
to carry out exploratory research using a mix of cooperative,
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imaginative persons as well as randomly selected persons. ___________________
Respondents should be given full freedom to respond to get new ___________________

ideas. Various techniques called qualitative research techniques
___________________
have been developed to unearth consumers’ beliefs, values,
___________________
attitudes, feelings that influence consumer behaviour.
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___________________
These qualitative techniques can be further divided into:
___________________
Depth Interviews ___________________
These are one to one interviews because most people do not have ___________________
clear ideas why they make particular purchase decisions.
Individuals normally do not report decisions. They normally do not
report socially unacceptable motives. So researcher in-depth
interviews attempt to influence respondents to talk freely about
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their subject of interest. Researcher leads and probes the topic to
get additional information. As such respondents are not
approached with a fixed list of questions but the researcher has an
outline in mind. No two interviews will proceed the same way as,
for example, in a structured questionnaire interview. The
researcher has the flexibility to probe beyond superficial reasons;
this is its strong as well as negative point in the sense that it
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makes it difficult to compare results.

There is total reliance on the skill of the researcher which makes it
expensive to hire such knowledgeable persons. Depth interviews
were discredited after being in limelight in Ditcher’s time but have
been lately beginning to make a comeback in understanding the
consumer better for better consumer service.
Direct questions to consumers about their attitudes or motives
seldom elicit useful information. Direct questions do not measure
the relative importance of the various types of reasons, and many
individuals will not respond to what might be considered socially
(c)
unacceptable.
Instead of approaching respondents with a fixed list of questions, the
interviewer, in depth interviews, attempts to influence respondents to
talk freely about the subject of interest. This is intended to put
respondents at ease so they express any ideas they have on the
74 subject. If some idea of interest is passed over too quickly, the
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Notes interviewer may seek additional information by “probing”.
___________________
The advantages of depth interviews are:
___________________
z They bring out information that would not be obtained in a
___________________ normal interview.
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___________________ z The interviewer has a great deal of flexibility and can use his
___________________ ingenuity to stimulate respondents to reveal more of their
attitudes and motives.
___________________
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___________________ z The disadvantages of depth interviews:
___________________ z No two interviewers will proceed in exactly the same way, thus
it is difficult to compare results.
___________________
z This creates difficulty in securing respondents cooperation and
___________________
increases costs.
z The depth interview is the difficulty and cost of interpretation.
Focus Group Interviews

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When the management wants to get a first person feel of consumer
reactions on its marketing mix variables, a researcher can convert
a focus group with him/her acting as a moderator. The discussion
is guided from the generic product category to the product specific
category to the specific brand under consideration. The interviews
are usually recorded so that the researcher may not lose
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information while keeping the discussion on the track. Reports

based on focus groups typically may contain direct quotations from
the interview session. These can be highly useful and stimulating
to marketing people. The guiding concept in selecting samples for
focus groups is never to use only one focus group but to keep
running groups until the researcher is getting no more ideas.
Individuals for a focus group are selected on quota basis. Again the
disadvantage is that a skilled modulator is crucial to the success of
focus groups. Also critics of focus groups argue that the results
obtained are little more than creative ideas of the researcher.
Focus groups too, like in-depth interviews, have their advantages
(c)
like:
z Bringing out the inner motivations of the consumers.
z Letting the researcher have a first-hand experience of the
consumer reactions.
75
z Generating new ideas.
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Notes
z Focus groups have their disadvantages too:
___________________
z Excessive reliance on the skills of the moderator.
___________________
z Wrong combination of consumers in focus groups, resulting in
E
___________________
no tangible output.
___________________
z Using qualitative discussions quantitatively without checking
___________________
them out.
___________________
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Focus groups are, however, being used increasingly by researchers.
___________________
Usually more than one focus group is used to get a clear and
unbiased understanding of the target market behaviours and ___________________
attitudes. ___________________
Projective Techniques ___________________
In projective techniques interviewing, the respondents are asked to

project themselves into a particular situation. The consumers then
express different images they may have of competitive brands of a
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given product. A consumer may be asked to match a brand and a
person’s image or asked for role reversal. It is another approach to
getting respondents to reveal more than their surface feelings. For
example, consumers might be asked such questions as:
z If brand A were a motorbike, what would it be?
z If brand B were a TV, which one might it be?
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The responses depend on the personality of a consumer. Every

person has certain individual characteristics called basic
personality. This basic personality is very stable and very difficult
to change. These personality traits are present due to an
individual’s biological make-up. A marketer should remember that
it is not possible to predict an individual’s purchase behaviour
based on his personality only. Nevertheless, by understanding the
product or segment the market aims at the target group with
certain major personality traits.
Exploratory Research using Case Analysis

(c)
Although this method has long since attracted skeptic’s ire because
of its non-scientific nature, it is making a comeback. It involves the
comprehensive study of one of a few specific situations and
particularly the study of complex situations in which interrelations
of several individuals are important. A situation is called a ‘case’.
76
The design of a research project is the plan that ties the data to the
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Notes
conclusions that will be drawn. This method is based on finding the
___________________
differences and the similarities so as to find the answers. Case
___________________ research is not a quantitative exercise but is used to enhance
___________________ understanding. It requires a rare combination of judgement to
E
select cases and insight in interpreting them. Its strong points are
___________________
holistic orientation, real life situation, i.e., in case study method
___________________ inferences are made on the entire picture and not some of its parts;
___________________ all the people actually concerned with the problem are contacted
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and data is obtained informally as well.
___________________
___________________
The disadvantages are mainly owing to its time consuming
procedure; heavy reliance on investigators and the absence of
___________________
formal information gathering techniques resulting in very
___________________ generalized and random information which might not be useful at
all.
Conclusive Research
When a marketing manager has to select one course of action
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among a number of alternatives, conclusive research provides him
information that helps him to evaluate various alternatives and
select among them a course of action. This type of research
provides a rational basis for his decisions. The alternatives may be
well or vaguely defined. Conclusive research design is
characterized by formal research procedures. The research
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objectives are accurately defined and so are information needs.

Conclusive research studies can be classified either as descriptive
or experimental.
Descriptive Research
The research objectives in this type of research are generally
describing the characteristics of consumer segment, viz.,
demographic, socio-economic, geographic, psychographic and
benefits sought. Descriptive studies can also portray buyer
perceptions of brands; audience profiles for media types, viz., TV,
radio, newspaper, journals and magazines, etc. They can also
(c)
portray buying power of consumers, availability of distributors,

product consumption patterns, price sensitivity of consumers,
market share, etc. These are just a few representative studies out
of numerous studies that come under descriptive research in
marketing. Despite the emphasis on description, it should not be
concluded that the studies should be simply fact-gathering 77
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expeditions. They can also be used to make predictions about the Notes
occurrence of a marketing phenomenon. The data regarding the ___________________
presence of an association among variables can only be used for
___________________
productive purposes but statements regarding cause and effect
E
relationships are not possible with descriptive research (As may be ___________________
possible in experimental or causal research). ___________________
The purpose and nature of descriptive research is quite different ___________________

from that of exploratory research. Many descriptive studies are ___________________
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made with only hazy objectives and with inadequate planning.
___________________
Much of the data collected in such studies turns out to be useless.
Descriptive studies of this type are actually more of exploratory ___________________
type. Effective descriptive research is marked by a clear statement ___________________
of the decision problem, specific research objectives and detailed
___________________
information needs. The research design should be fairly structured.
Since the purpose is to provide information regarding specific
questions or hypothesis, the research must be designed to ensure
accuracy of the findings. Since descriptive studies may cost huge
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amount of money to carry out, there is then this necessity of its
formal design.
Descriptive research often makes use of survey research design
which consists of a cross-sectional research design that is,
collecting data on few factors from a number of cases at one point
of time. This is the most popular type of research design and is
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useful in describing the characteristics of consumers and

determining the frequency of marketing phenomenon. As already
mentioned it is often expensive and requires skilful and competent
researchers to conduct it effectively. It is also termed as statistical
method in contrast to case method which focuses on many factors
of few cases. This method ceases to focus on individual cases and
focuses instead on classes, averages, percentages, measures of
dispersion and more sophisticated statistical procedures. For
example, cluster analysis can be used to group customers into
different classes on the basis of few customer attributes or
characteristics. Factor analysis can be used to group attributes
(c)
into few factors which are important from consumers’ point of view
vis-à-vis a product, etc. In fact descriptive research presupposes
that a sound causal model of marketing system exists in the mind
of the decision-maker in contrast to exploratory research which
seeks to generate hypotheses. A researcher has to have a tentative
hypothesis for carrying out descriptive research for the sole reason
78 that he knows what data to collect from his respondents in the
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Notes survey. Descriptive research designs can also use one or more of
___________________ the following sources of data:
___________________ z Interrogation of respondents
___________________ z Secondary data
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___________________ z Simulation
___________________
The analysis techniques used in descriptive research are those
___________________ specifically for mass data. Each individual item tends to lose its
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___________________ identity. This is both an advantage and a disadvantage. The
advantage lies in the objectivity with which the analysis can be
___________________
made. Averages or variance can be computed and compared; two
___________________ independent researchers will arrive at similar results which is not
___________________ the case with the case method. But the disadvantage lies in its
mobility to prove cause and effect relationships which is the
domain of experimental (causal) research. Even the direction of
causal effect may not be visible through statistical study, e.g. when
advertising and sales co-vary, it is often not clear whether
E-
advertising causes sales or sales cause the expenditure of more
advertising effort because of greater apparent potential sales
results. Simulation of marketing phenomenon consists in an
incomplete representation of the marketing system or some aspect
of this system. It is relatively a new source of data which is largely
computer-oriented. Simulation can be used to gain insight into the
dynamics of the marketing system by manipulating the
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independent variables (marketing mix and situational variables)

and observing their influence on the dependent variables. A
marketing simulation requires data inputs regarding the
characteristics of the phenomenon to be represented and the
relationships present. Simulations should neither over-simplify nor
over-complicate. The limitations are its validity and time/cost of
updating the model as conditions change. Simulation models can
be classified on the basis of the purpose they serve, viz., predictive
and descriptive.
Very often descriptive research may take the route of analyzing
(c)
already existing data on respondents, e.g., census data. Secondary

source of data is much cheaper to access than carrying out a full-
fledged survey and hence a great temptation for a market research.
But the validity and appropriateness of such a secondary data
descriptive research should always be borne in mind before
embarking on one.
79
Example
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Notes
The exploratory research on the drinking habit of milk yielded a ___________________
set of three hypotheses to be tested. The information requirements
___________________
were met by collecting data from over 100 respondents belonging to
the upper-income group. A statistical frequency analysis and cross-
E
___________________
classification analysis revealed the following: ___________________
z 64 per cent of the respondents preferred milk for themselves or
___________________
their children as a breakfast drink. Mere 32 per cent
___________________
respondents responded positively towards tea/coffee as
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breakfast drink. Rest of them opted for juice in the morning. ___________________
z 76 per cent of the respondents were positive about the taste of ___________________
the flavoured milk with the teenagers liking it much more. ___________________
z 40 per cent elders preferred tea/coffee in the evening, whereas ___________________

35 per cent of the teenagers preferred milk as a breakfast
drink.
z 80 per cent of the respondents wanted to give their children
milk during the day when they return from school.
E-
z 62 per cent of the respondents considered it a status symbol to
offer tea/coffee to their guests or at social gatherings.
Experimental or Causal Research

Experimental research is conducted mostly in laboratories in the
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context of basic research. The principle advantage of experimental

designs is that it provides the opportunity to identify cause-and-
effect relationships. Non-experimental research, e.g., case studies,
surveys, correlation studies, is non-manipulative observational
research usually conducted in natural settings. While laboratory-
controlled experimental studies tend to be higher in internal
validity, non-experimental studies tend to be higher in external
validity.
One major limitation of experimental research is that studies are
typically conducted in contrived or artificial laboratory settings.
Results may not generalize or extrapolate to external settings.
(c)
Two exceptions to this rule are natural experiments and field

experiments. Natural experiments document and compare the
behaviours of subjects before and after some natural event; e.g.,
floods, tornadoes, hurricanes. Field experiments involve
manipulating conditions in the natural setting for the purpose of
80 determining their influence on behaviour. The field experiment is
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Notes unique insofar as it tends to be moderately high on both external
___________________ and internal validity.
___________________ In experimental research, the investigator manipulates conditions
___________________ for the purpose of determining their effect on behaviour. Subjects
E
should be unaware of their membership in an experimental group
___________________
so that they don’t act differently (Hawthorne Effect). In the
___________________ simplest experimental design, investigators administer a placebo
___________________ to the control group and a treatment to the experimental group.
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Experimental designs vary in terms of subjects’ assignments to
___________________
different groups, whether subjects were pre-tested, whether
___________________
different treatments were administered to different groups, and
___________________ the number of variables being investigated.
___________________ Experiments are typically structured in terms of independent,
organism, and dependent variables. The independent variable is a
manipulated environmental stimulus dimension, the organism-
variable is some dimension (e.g., sex, race) of more or less stable
characteristics of the organism, and the dependent variable is a
E-
behavioural dimension that reflects the influence of the
independent and organism-variables. The general objective in
experimental research is to define the relationship between the
antecedent (independent and organism) variables and the
consequent (dependent) variables.
Check Your Progress

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Fill in the blanks:

1. _________________ research is conducted mostly in
laboratories in the context of basic research.
2. _________________of marketing phenomenon consists in
an incomplete representation of the marketing system
or some aspect of this system.
Summary
Development of a research plan requires what data are to be
(c)
collected; what research techniques and instruments are to be

used; how a sample is to be selected; and how information is to be
collected from this sample. Experimental techniques are also
potentially applicable, but they are rarely used except in-store
experiments study, for example, the impact of in-store promotions
on sales. A marketing research design may be described as a series 81
S
of advance decisions that, when taken together, comprises a Notes
master plan or model for the conduct of the investigations. It is the ___________________
blueprint that is followed in completing a study. The research
___________________
design for exploratory research is best characterized by its lack of
E
structure and flexibility. It is generally used for the development of ___________________
hypothesis regarding potential problems and opportunities. ___________________
___________________
Lesson End Activity ___________________
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Discuss exploratory research using case analysis. ___________________
___________________
Keywords
___________________
Research Design: A research design encompasses the ___________________
methodology and procedure employed to conduct scientific
research.
Telephone Interviewing: It is quick and can be conducted from a
central location where interviewers are controlled by a supervisor.
E-
Personal Interviewing: It is the most flexible method since the
interviewer can select the sample by judgement or convenience
sampling and is able to explain questions to the respondent.
Marketing Research Design: A marketing research design may
be described as a series of advance decisions that, when taken
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together, comprises a master plan or model for the conduct of the

investigations.

1. “Where primary data are collected, observational or other
qualitative techniques, experimentation or survey research
may be conducted.” Explain.
2. What are the three principle methods of data collection?
3. Differentiate between Exploratory research and Conclusive
research.
(c)
4. Differentiate between Quantitative research and Qualitative

research.
5. Discuss Exploratory Research using Expert opinions/
individuals with Ideas.
82
Further Readings
S
Notes
___________________ Books
___________________
India.
E
___________________ Goddard, Wayne and Melville, Stuart (2004). Research
___________________
___________________
UP
___________________
___________________
___________________
Pvt. Ltd.
___________________
Web Readings
http://en.wikipedia.org/wiki/Research_design
http://libguides.usc.edu/content.php?pid=83009&sid=818072
E-
http://www.uwc.ac.za/usrfiles/users/270084/Research_and_Design_
I.pdf
http://www.amazon.com/Research-Design-Qualitative-
Quantitative-Approaches/dp/0761924426
http://www.deakin.edu.au/buslaw/infosys/research/students/docs/re
search-design.pdf
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(c)
UNIT 9: Causal Research
Unit 9
83
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Notes
Activity
Causal Research
___________________
Discuss briefly various types
of causal research.
___________________
E
___________________
Objectives
___________________
topics: ___________________
\ Meaning of Causal research ___________________
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\ Types of causal research ___________________
\ Quasi-Experimental Designs
___________________
Introduction ___________________
___________________
Causal Research explores the effect of one thing on another and
more specifically, the effect of one variable on another.
The research is used to measure what impact a specific change will
have on existing norms and allows market researchers to predict
E-
hypothetical scenarios upon which a company can base its business
plan.
For example, if a clothing company currently sells blue denim
jeans, causal research can measure the impact of the company
changing the product design to the colour white.
Following the research, company bosses will be able to decide
CC
whether changing the colour of the jeans to white would be

profitable. To summarise, causal research is a way of seeing how
actions now will affect a business in the future.
Causal Design
Causal design is the study of cause and effect relationships
between two or more variables.
William J. Goode & Paul K. Hatt in Methods in Social Research
define cause and effect relationship as:
(c)
"When two or more cases of given phenomenon have one and only
one condition in common, that condition may be regarded as the
cause and effect of that phenomenon."
The set of causes generated to predict their effects, can be
deterministic or probabilistic in nature. The deterministic cause is
84 the one which is essential and adequate for stimulating the
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Notes occurrence of another event. While the probabilistic is the one that
___________________ is essential, but is not the only one responsible for the stimulation
of the occurrence of another event.
___________________
___________________ The objective is to determine which variable might be causing
E
certain behaviour i.e., whether there is a cause and effect
___________________
relationship between variables, causal research must be
___________________ undertaken. This type of research is very complex and the
___________________ researcher can never be completely certain that there are not other
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factors influencing the causal relationship, especially when dealing
___________________
with people's attitudes and motivations. There are often much
___________________
deeper psychological considerations that even the respondent may
___________________ not be aware of.
___________________
Types of Causal Research
There are two research methods for exploring the cause and effect
relationships between variables:
E-
Experimental Designs
There can be nine types of experimental design based on the use or
approximate randomization of subjects into treatment and control
groups.
Classic Experimental Designs

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In the classic experiment method, subjects are assigned randomly

in to control and treatment groups, also amenable to a variety of
ANOVA designs. There are two types of classic experimental
designs:
Between subjects' designs: In this case, there are different
subjects for each level of the independent variable(s) (e.g., for each
different types of media exposure in a study of the effect of political
advertising). Any given subject is exposed to only one level and
comparisons are made among subjects' reactions or effects.
Within subjects' (repeated measures) designs: The same
(c)
subjects are used for each level of the independent variable, as in

before-after studies or panel studies. Since the subjects are the
same for all levels of the independent variable(s), they are their
own controls (that is, subject variables are controlled). Compared
to between-subjects' designs, within-subjects designs' control for
subject variables better but at the expense of greater threat to 85
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validity in the form of contamination from influences arising from Notes
subjects going from one experimental level (condition) to another. ___________________
Lottery Designs ___________________
E
___________________
These designs are used when lotteries are expected; eliminate a
major impediment to randomization. ___________________
___________________
Waiting List Designs
___________________
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These designs are used when demand outstrips supply, which also
___________________
legitimate giving treatment to some citizens but not others, since
offering treatment to all is impossible due to limited supply (e.g., ___________________
studies of clients vs. a waiting list group). ___________________
___________________
Equivalent Time Series Designs
These are used when treatment cannot be delivered
simultaneously to all, also legitimating giving treatment to some
citizens but, temporarily, not to others, as when all employees are
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to receive training, but in rotations, such that different types of
training can be delivered to different groups.
Spatial Separation Designs

When treatment groups are separated and have no experiment-
relevant intercommunication, as when participative management
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is tried with a treatment group of new, randomly assigned

employees in one location but not in another.
Mandated Change/unknown Solution Designs

When change is required but there is no single clear solution,
random assignment of subjects can gain acceptance, as in random
assignment of students to classes with alternative textbooks.
Tie-breaking Designs
In cases where receiving treatment is merit-based, as in some
academic situations, those receiving tied scores on merit-based
(c)
exams can be randomly assigned to a treatment and a control

group.
86 Indifference Curve Designs
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Notes
Activity The attractiveness of the treatment can sometimes be adjusted to a
___________________
What are quasi-experimental point where some people will be indifferent towards receiving or
designs? Explain its types.
___________________ not receiving it, and thus, may be randomly assigned to a
___________________ treatment or a control group.
E
___________________
New organizations' Design
___________________
When a new organization is established, such as, one providing job
___________________ training, opportunities may well arise which permit the random
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___________________ assignment of clients to a control and a treatment organization.
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. ________________ is the study of cause and effect
relationships between two or more variables.
2. There can be ________________ types of experimental
design based on the use or approximate randomization
E-
of subjects into treatment and control groups.
3. ________________ designs are used when lotteries are
expected, eliminate a major impediment to
randomization.
Quasi-Experimental Designs
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Following are the different types of quasi-experiemental designs:
Non-equivalent Control Group Designs

There can be 11 non-equivalent control group research designs.
But due to non-equivalency of the comparison group, validity
threats are much more possible than in a randomized design.
One-Group Post-test only Design
There is no pretest baseline or a comparison group, the valid
conclusions about treatment effects are based solely on post-test
information. Changes in the dependent variable may be due to
(c)
treatment, or may be due to any number of causes of invalidity

such as: history (other events coexisting with treatment),
experimenter expectation (subjects seeking to provide responses
known to be desired), etc. If this design is used, as in a single-shot
case study, information must be gathered on pretest conditions, if 87
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only through respondent recollections. Notes
Post-test only Design with Non-equivalent Comparison ___________________

Groups Design ___________________
It is also used to draw valid conclusions about treatment effect
E
___________________
based only on post-test information on two Non-equivalent groups
___________________
since effects may be due to treatment or to non-equivalencies
___________________
between the groups.
___________________
Post-test only Design with Predicted Higher-Order
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Interactions ___________________
Sometimes, the expectation of the treatment effect interacts ___________________
with a third variable. Instead of the expectation that treatment ___________________

group subjects will be higher on the dependent, one has the ___________________
expectation that the subjects will be higher if in the upper half of
third variable Y but lower (or not as high) if in the bottom half of
Y. For instance, training may lead to greater productivity for high
education employees but not for low education employees on the
E-
same tasks. The interaction creates two or more expectations
compared to the simple one-expectation, one-group post-test only
design. Because there are more expectations, there is greater
verification of the treatment effect. However, this design is still
subject to the possible challenges to validity due to such factors as,
history (subjects high in education had different experiences) - it is
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just that the counter-argument has to be more complex to account

for the interaction, and therefore, may be somewhat less likely to
be credible.
One-Group Pre-test-Post-test Design
This is a common but flawed design in social science. It is subject
to such threats to validity as: history (events intervening between
pretest and post-test), maturation (changes in the subjects),
regression towards the mean (the tendency of extremes to revert
towards averages), testing (the learning effect on the post-test of
having taken the pretest), and most challenges discussed in the
separate sections on validity.
(c)
Two-Group Pre-test-Post-test Design using an Untreated

Control Group
If a comparison group which does not receive treatment is added to
what otherwise would be a one-group pre-test-post-test design,
88 threats to validity are reduced. Since the groups are not
S
Notes equivalent, there is still the possibility of selection (observed
___________________ changes are due to selection of subjects, such as working with more
motivated volunteers in a treatment group – see two-stage least
___________________
squares for a discussion of testing for selection bias). Much
___________________
E
depends on the outcome.
___________________
For instance, if the treatment group starts below the comparison
___________________ group and ends up above after treatment, a stronger inference of a
___________________ treatment effect exists than if both groups rise in performance, but
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the treatment group more so (this might well be due to selection).
___________________
A strongly recommended modification to this design is to have
___________________
more than one pretest. Multiple pretests (at the same interval as
___________________ between the last pretest and the post-test) help establish the
___________________ performance trends in both the treatment group and the control
group, and treatment should be revealed by a change in the trend
line for the treatment group, but not the control group.
Non-equivalent Dependent Variables Pre-test – Post-test
Design
E-
In this design, the researcher identifies dependent variables
related to the treatment-related variable, but where treatment is
predicted to have no effect. Then, if the variable thought to be
affected by treatment does, in fact, change in the predicted
direction, there is no change in the other related dependent
variables, again as predicted, then the inference is made that the
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change in question is due to treatment, not some confounding

cause such as test experience from the pretest.
Removed-Treatment Pre-test – Post-test Design
In some situations, it is possible not only to introduce a treatment
but also to remove it. If the dependent variable goes up after
treatment and then goes down when treatment is removed, this is
some evidence for the effect of treatment. Of course, if the variable
goes up after treatment, it might come down on its own anyway
due to a declining return or attrition effect. Cook and Campbell
(1979), therefore, recommend at least two post-tests after
(c)
treatment and before the removal of treatment, in order to

establish trend effects after treatment. The researcher also needs
to beware of resentment effects due to treatment removal, as these
also might cause a decline in the variable measured, depending on
the situation.
89
Repeated-Treatment Design
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Notes
This design is similar to the preceding one but follows a pre-test-
___________________
treatment-post-test-removal of treatment-post-test-restoration of
treatment-post-test pattern. The expected treatment effect is for ___________________
the dependent variable to increase after treatment, decline after
E
___________________
the removal of treatment, then increase again with the restoration
___________________
of treatment. Even if this outcome occurs, inference is not foolproof
___________________
as the decline phase may be due to resentment at the removal of
treatment rather than direct adverse affects of removal of ___________________
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treatment and the subsequent rise may be due not to restoration of ___________________
treatment but removal of the source of resentment. Also, subjects
___________________
may more easily become aware of experimenter's expectations in
this design, and may seek to meet (or react against) expectations, ___________________
thereby contaminating the study. ___________________
Reversed-Treatment Pre-test-Post-test Non-equivalent

Comparison Groups Design
This design is one in which the non-equivalent comparison group
E-
receives the opposite treatment (e.g., the treatment group receives
participative leadership while the comparison group receives
autocratic leadership). The expectation is that the post-test will
show increase for the treatment group and decrease for the
comparison group. Cook and Campbell (1979) suggest adding a no-
treatment group and even a placebo group where appropriate.
Multiple pretests will improve this design by showing pre-existing
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trends in the treatment and Non-equivalent comparison group.
Cohort Designs with Cyclical Turnover

This design refers to the study of groups as they evolve over time, as
in the study of a fourth-grade class in year 1, the corresponding fifth
grade class in year two, etc. The expectation is that the class
average will increase in the post-test after treatment. This design is
liable to the same challenges to validity as simple pre-test-post-test
designs, but it can be strengthened by partitioning the cohort into
subgroups according to their exposure to the treatment. In a study
of the effects of television violence, for instance, the cohort may be
(c)
divided into groups of high, medium, and low exposure to violent

television shows. The expectation is that the partitions exposed
more will show more change on the dependent variable. Where
partitioning is not possible, having multiple pretests and post-tests
90 can establish trends to rebut "it would have happened anyway"
S
Notes arguments about the validity of conclusions under this design.
___________________
Regression-Discontinuity Design
___________________
One might hypothesize that if there is a treatment effect, then the
___________________ slope of the regression line relating scores before and after
E
___________________ treatment would be the same, but there would be a discontinuous
jump in magnitude on the dependent variable immediately after
___________________
treatment. This test requires verification that the relationship
___________________ between pretest and post-test scores is linear, as two linear
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___________________ regressions (one before, one after treatment) on a curvilinear
___________________
underlying relationship could spuriously appear to meet this test.
Also, there may be a treatment effect taking the form of a steeper
___________________
regression slope but no discontinuity at the point of treatment.
___________________ Such a treatment effect is very difficult to differentiate from a
simple curvilinear relationship.
Interrupted Time Series Designs
There are six interrupted time series designs comprising multiple
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pretests and post-tests.
Simple Interrupted Time Series Design: This is the one-group
pre-test-post-test design augmented with multiple pretests and
post-tests. The trend found in multiple pretests can be compared to
the trend found in multiple post-tests to assess whether apparent
post-treatment improvement may simply be an extrapolation of a
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maturation effect which was leading towards improvement

anyway. There may be other confounding factors as well, such as,
failure to seasonally adjusted data, confounding a seasonal effect
with a treatment effect.
In general, this design is liable to history-type challenges to
validity: the possibility that other factors historically coterminous
with the treatment actually led to the observed effect. Other
threats to validity include selection bias, as due to the non-random
attrition of subjects in the post-test; instrumentation bias (the
post-test is not equivalent to the pretest); and testing (there may
be a learning effect from the pretest such that the observed effect
(c)
is one, a test artifact rather than a treatment effect).

Interrupted Time Series with a Non-equivalent No-
Treatment Comparison Group: This is the two-group pre-test-
post-test design using an untreated control group, but with
multiple pretests and post-tests. By having a comparison group,
even if Non-equivalent (not randomized), the same threats to 91
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validity can occur, but they most occur in a more complex and Notes
hence, more easily disproved way. ___________________
For instance, if this design shows an improvement in the ___________________
treatment but not comparison group, it may still be true that there
E
___________________
is historical bias, but such bias must be unique to the treatment
group for some reason, not including variables which also affect the ___________________
comparison group. There could be seasonal bias, but only if the ___________________
seasonal factors were thought to be uniquely associated with ___________________
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treatment, and so on.
___________________
Interrupted Time Series with Non-equivalent Dependent
___________________
Variables: This is the non-equivalent dependent variables pre-
test-post-test design with multiple pretests and post-tests. The ___________________
object is to find dependent variables related to the one of thought ___________________

to be influence by treatment, but where the related variables are
not. Cook and Campbell (1979) give the example of influence of
breathalyzer tests given by police when bars are open weekend
nights, but not given at other times. The dependent variable of
E-
interest is accident rates on weekend nights. The related
dependents are accident rates on weekday nights when bars are
open and accident rates at times when bars are not open.
The expectation is that the treatment effect of breathalyzer testing
will be significantly greater for weekend nights than at other
times. Counter-explanations for lower accident rates (e.g., safer
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cars, and stricter court treatment of offenders) must explain not

only the lower accident rate on weekend nights, but also the lack of
effect at other times. Of course, confounding factors may well exist,
but they must be unique to the dependent variable of interest.
Interrupted Time Series with Removed Treatment: This is the
removed treatment pre-test-post-test design with multiple pretests
and post-tests, including ones in between the original treatment
and its removal, and hence, is a more powerful test. For instance,
the threat of history is reduced because any historical forces
coincident with treatment would also have increase after
treatment and decrease after removal, an unlikely circumstance.
(c)
Ideally, the removal of treatment does not occur until enough

observations have been taken to rule out any seasonal or other
cyclical effects.
Interrupted Time Series with Multiple Replications: This is
simply the interrupted time series with removed treatment design,
92 except that treatment and removal occur multiple times on a
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Notes schedule. Circumstances rarely permit such a design, but it is
___________________ stronger yet. By timing the replications randomly, the researcher
is able to minimize contamination from cyclical factors. This design
___________________
assumes one is dealing with a treatment effect which dissipates in
___________________
E
a timely manner before the next replication, without carry-over
___________________ effects.
___________________ Interrupted Time Series with Switching Replications: This is
___________________ a further refinement in which there are two groups, each serving
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as either the treatment or comparison group on an alternating
___________________
basis, through the multiple replications of treatment and removal.
___________________
This requires an even higher level of control over subjects by the
___________________ researcher but is a particularly strong design in ruling out threats
___________________ to validity. It does not lend itself to studies where the treatment
intervention has been gradual, or where treatment.
Check Your Progress

Fill in the blanks:
E-
1. __________________ used to draw valid conclusions
about treatment effect based only on post-test
information on two Non-equivalent groups since effects
may be due to treatment or to non-equivalencies
between the groups.
2. In __________________ design, the researcher identifies
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dependent variables related to the treatment-related

variable, but where treatment is predicted to have no
effect.
Summary
Causal Research explores the effect of one thing on another and more
specifically, the effect of one variable on another. The research is used
to measure what impact a specific change will have on existing norms
and allows market researchers to predict hypothetical scenarios upon
which a company can base its business plan.
(c)
For example, if a clothing company currently sells blue denim

jeans, causal research can measure the impact of the company
changing the product design to the colour white.
Following the research, company bosses will be able to decide
whether changing the colour of the jeans to white would be
profitable. To summarise, causal research is a way of seeing how 93
S
actions now will affect a business in the future. Notes
The objective of causal research is to determine which variable ___________________

might be causing certain behaviour i.e., whether there is a cause ___________________
and effect relationship between variables, causal research must be
E
___________________
undertaken. This type of research is very complex and the
researcher can never be completely certain that there are not other ___________________
factors influencing the causal relationship, especially when dealing ___________________

with people's attitudes and motivations. There are often much ___________________
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deeper psychological considerations that even the respondent may
___________________
not be aware of.
___________________
Quasi-Experimental Designs includes researches like Non-
equivalent Control Group Designs, One-Group Post-test only ___________________
Design, Post-test only Design with Non-equivalent Comparison ___________________

Groups Design, Post-test only Design with Predicted Higher-Order
Interactions, One-Group Pre-test-Post-test Design, Two-Group Pre-
test-Post-test Design using an Untreated Control Group, Reversed-
Treatment Pre-test-Post-test Non-equivalent Comparison Groups
E-
Design, Interrupted Time Series with Multiple Replications
Interrupted Time Series with Switching Replications etc.
Lesson End Activity

Take any firm of your choice who is analysing the customer
satisfaction level for its product. Discuss how causal design can be
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used in it and its related advantages.
Keywords
Causal Design: It is the study of cause and effect relationships
between two or more variables.
Classic Experimental Designs: In this experiment method,
subjects are assigned randomly in to control and treatment groups,
also amenable to a variety of ANOVA designs.
Lottery Designs: These designs are used when lotteries are
(c)
expected; eliminate a major impediment to randomization.

Spatial Separation Designs: When treatment groups are
separated and have no experiment-relevant intercommunication, as
when participative management is tried with a treatment group of
new, randomly assigned employees in one location but not in another.
94
Tie-breaking Designs: In cases where receiving treatment is
S
Notes
merit-based, as in some academic situations, those receiving tied
___________________
scores on merit-based exams can be randomly assigned to a
___________________ treatment and a control group.
___________________
E
___________________ Questions for Discussion
___________________ 1. Critically analyse the statement, “Causal design is the study of
___________________
cause and effect relationships between two or more variables”.
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___________________ 2. Explain Experimental Designs
___________________ 3. What is Equivalent time series designs?
___________________ 4. Discuss Indifference curve designs.

___________________ 5. Describe in detail Quasi-Experimental Designs.
Further Readings
Books
E-
Bhattacharyya, D.K. (2009). Research Methodology. Excel Books
India.
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Pvt. Ltd.
Web Readings
http://www.marketresearchworld.net/index.php?option=com_conte
nt&task=view&id=799&Itemid=64
http://www.businessdictionary.com/definition/causal-research.html
http://www.htm.uoguelph.ca/MJResearch/ResearchProcess/Causal
(c)
Research.htm
http://www.slideshare.net/shwetasharma/causal-research-
presentation
http://en.wikipedia.org/wiki/Exploratory_research
Unit 10
95
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Notes
Case Studies
___________________
___________________
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___________________
Objectives
___________________
___________________
Case Study 1: Shri Ram Consultants
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___________________
Shri Ram consultants have been appointed by a leading to ___________________
prepare a feasibility report for opening a five-star hotel in Pune.
The group had been the most successful one in the hotel industry ___________________
and had always kept its eyes open for new opportunities.
___________________
In view of the very fast industrial growth in the city of Pune, the
city had attracted the attention of the group. Pune, apart from
being a modern city, has the added advantage of pleasant weather
and several places of tourist attraction in the neighbourhood.
Moreover, the closeness to Mumbai, a city of international
E-
stature, made it very easily accessible to international tourists.
For Shri Ram consultants this was the first time that an
assignment concerning the hotel industry had been received.
They, however, soon realized that the assignment was not as
simple as it appeared to be in the first place. The feasibility of
such a hotel would depend essentially on two factors.
Businessmen visiting the city for work would constitute one
segment of the market, while tourists would constitute the other.
Further, the tourists could be Indians or foreigners. The success
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of such a hotel would also depend upon the relative attraction of

other tourist centres in the vicinity.
Further, it was necessary to estimate fluctuations in demand for
hotel accommodation so that attractive discounts could be offered
during the off-season for business conferences, executive
development programmes, etc.
The consultants realized that they would have to undertake a
market research on a national scale to assess the tourist potential
of the city. They would also have to survey the foreign tourists to
estimate one of the most important segments of the market.
The consultants wondered whether such a survey will have to
extend over a period of one full year to completely take into
account the seasonal variations in tourists’ traffic. They were also
(c)
undecided about the manner in which the survey should be

conducted. The company also feared that in the absence of an
accurate definition of the problem, they may land up surveying
the complete tourist market in India rather than studying the
feasibility of a hotel in Pune. They had heard that ITBC had
appointed lady interviewers at several major airports for
Contd…
96 conducting such surveys and wondered if such a methodology
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Notes could be of use to them.
The problem appeared well defined and they were concerned as
___________________
the preliminary report explaining methodology of the research
___________________ and the questionnaires to be used had to be submitted to the
client along with the estimate of expenses within one month.
___________________
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Questions:
___________________ 1. How would you define the problem of assessing the feasibility
___________________ of the hotel so as to help design the survey?
2. How would you plan a survey for actually collecting
___________________ information on expected demand for hotel space? How would
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___________________ you estimate the cost of such a survey?
___________________ Source: S N Murthy and Dr U Bhojanna (2010). “Business Research Methods”. Excel Books
___________________
___________________
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(c)
Case Study 2: Excel Publishing House 97
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Notes
Excel publishing house has been in existence for the past 15 years
___________________
or so. The company was set up by an entrepreneur Shri Anurag
Jain, whose main emphasis is to publish management books and ___________________
sell them at moderate prices so that they may be within the reach
of management students.
E
___________________
After a few years of experience in the publishing house, Shri Jain ___________________
felt that the company should concentrate on selected management
books, according to prescribed course contents of the institutes. ___________________
But he feels that the problem of selecting a particular textbook for
publication is very crucial in view of increasing competition in the ___________________
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textbook market. Mr Jain wants to develop a proforma to elicit ___________________
relevant information from institutes/authors interested in having
their works published. ___________________
Questions: ___________________
1. What sample design is being used by Mr Jain?
___________________
2. What type of study is this?
Source: S N Murthy and Dr U Bhojanna (2010). “Business Research Methods”. Excel Books
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(c)
(c)
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UNIT 11: Sampling Procedures
99
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Notes
___________________
___________________
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___________________
___________________
___________________
___________________
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___________________
___________________
___________________
___________________
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BLOCK-III
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(c)
100
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Notes
UNIT 11: SAMPLING PROCEDURES
___________________ UNIT 13: PRIMARY DATA COLLECTION
z Introduction z Introduction
___________________
z Concept of Sampling z Primary Data
___________________
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z Steps in Sampling Process z Methods of Collection of Primary Data
___________________
UNIT___________________
12: SAMPLING TECHNIQUES UNIT 14: SECONDARY DATA COLLECTION
___________________
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z Probability Sampling Techniques z Secondary Data
___________________
z Non-probability Sampling Techniques z Classification of Secondary Data
___________________
z Errors in Sampling z Methods and Techniques of Collection of Secondary
___________________ Data
___________________ z Evaluation of Secondary Data
UNIT 15: CASE STUDIES

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(c)
Unit 11
101
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Notes
Activity
Sampling Procedures
___________________
Write short note on Sampling.
___________________
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___________________
Objectives
___________________
topics: ___________________
\ Concept of Sampling ___________________
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\ Steps in Sampling Process ___________________
\ Limitations of sampling
___________________
Introduction ___________________
___________________
The word 'sample' means a part of any collection of things,
individuals or results of operations that are quantitatively
expressed. A totality or a collection of things or individuals is said
to constitute a population. Hence a sample simply means a part of
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a population. A finite population is one that has individuals or
things that can be finitely expressed in numerical terms, whereas
an infinite population is one that cannot be expressed finitely. For
example, the heights of 100 persons form a finite population
whereas all the heavenly bodies such as stars are infinite.
Population is also called universe. The following are a few
examples of finite populations: population of marks of students at
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an examination, population of prices, weights, incomes etc.

To draw certain conclusions about the characteristics of a
population it is sufficient to select and study a part of it. In short,
for the purpose of statistical studies, a sample would suffice. The
entire work of selecting samples from a population is termed
sampling.
Concept of Sampling
The principle aim of selecting a sample and studying it is to
acquire the maximum information about the population with the
(c)
least amount of time, money and energy. In brief, maximum

information with minimum effort is the goal of sampling. A sample
is a part of a target population, which is carefully selected to
represent the population.
102
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Notes Sample Frame
___________________ Sampling frame is the list of elements from which the sample is
___________________
actually drawn. Actually, sampling frame is nothing but the
correct list of population.
___________________
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Example: Telephone directory, Product finder, Yellow pages.
___________________
Distinction between Census and Sampling
___________________
___________________
Census refers to complete inclusion of all elements in the
population. A sample is a sub-group of the population.
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___________________
When is a Census Appropriate?
___________________
1. A census is appropriate if the size of population is small. For
___________________
example, a researcher may be interested in contacting firms in
___________________
iron and steel or petroleum products industry. These
industries are limited in number, so a census will be suitable.
2. Sometimes, the researcher is interested in gathering
information from every individual.
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Example: Quality of food served in a mess.
When is Sample Appropriate?
1. When the size of population is large.
2. When time and cost are the main considerations in research.
3. If the population is homogeneous.
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4. Also, there are circumstances when a census is not possible.

Example: Reactions to global advertising by a company.
Before undertaking the work of sampling it is necessary to bear in
mind the following points:
1. No bias or prejudice should creep into the selection of a sample
or samples.
2. All members of the sample should be governed by the same
rules and conditions of sampling.
3. Individual members of the sample should be entirely
(c)
independent of one another.

4. Special importance should never be attached to certain parts
of the population while selecting members for the sample.
103
Amongst the methods of sampling there are two categories:
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Notes
probability sampling and non-probability sampling. In probability
sampling, the process of selecting members is based on the chance ___________________
factor. If the process of selection is not based on chance but on ___________________
some arbitrary method, then it is non-probability sampling.
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___________________
The entire work of selecting samples from a population is termed
___________________
sampling.
___________________
Reasons ___________________
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To draw certain conclusions about the characteristics of a ___________________
population it is sufficient to select and study a part of it. In short, ___________________
for the purpose of statistical studies, a sample would suffice.
___________________
Objectives ___________________
The principle aim of selecting a sample and studying it is to

acquire the maximum information about the population with the
least amount of time, money and energy. In brief, maximum
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information with minimum effort is the goal of sampling.
Basis
The basis of sample is
z The size of population is large.
z Time and cost are the main considerations in research.
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z The population is homogeneous.

z There are circumstances when a census is not possible.
Principles of Sampling
Before undertaking the work of sampling it is necessary to bear in
mind the following points:
1. No bias or prejudice should creep into the selection of a sample
or samples.
2. All members of the sample should be governed by the same
(c)
rules and conditions of sampling.

3. Individual members of the sample should be entirely
independent of one another.
4. Special importance should never be attached to certain parts
of the population while selecting members for the sample.
104 Amongst the methods of sampling there are two categories:
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Notes probability sampling and non-probability sampling. In probability
___________________ sampling, the process of selecting members is based on the chance
factor. If the process of selection is not based on chance but on
___________________
some arbitrary method, then it is non-probability sampling.
___________________
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___________________ Assumptions
___________________ Assumptions of quantitative sampling
___________________ z We want to generalize to the population.
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___________________ z Random events are predictable.
___________________ z We can compare random events to our results.
___________________ Therefore Probability sampling is the best approach.
___________________ Assumptions of qualitative sampling

z Social actors are not predictable like objects.
z Randomized events are irrelevant to social life.
z Probability sampling is expensive and inefficient.
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Therefore Non-probability sampling is the best approach.
Pre-requisites
Sampling strategy has two main components:
z Selecting the sample, which involves sampling
z Processing the data which has certain rules for calculating
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statistics.
Good sampling design should take into account both of these and
should:
z Relate to the objectives of the investigation
z Be practical and achievable;
z Be cost-effective in terms of equipment and labour;
z Provide estimates of population parameters that are truly
representative and unbiased.
Ideally, representative samples should be:
(c)
z Taken at random so that every member of the population of

data has an equal chance of selection;
z Large enough to give sufficient precision;
z Unbiased by the sampling procedure or equipment.
These may well conflict and there is rarely any unique best answer 105
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to a sampling problem. Notes
It is very important in sampling procedures to take into account ___________________

relevant factors such as: ___________________
z Location
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___________________
z Habitat ___________________
z Time ___________________
z Age ___________________
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___________________
z Sex
___________________
z Physiological condition and
___________________
z Disease status
___________________
These also need to be noted in the design as otherwise a wrong
interpretation may arise from the results.
When is Sample Appropriate?

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1. When the size of population is large.
2. When time and cost are the main considerations in research.
3. If the population is homogeneous.
4. Also, there are circumstances when a census is not possible.
Example: Reactions to global advertising by a company.
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Advantages
Following are the advantages of sampling:
z Sampling reduces the time and cost of research studies.
Because of sampling it has become possible to undertake a
national or global studies at a reasonable cost and time. Such
economy in time and cost improves the viability of several field
studies.
z Sampling requires smaller staff both for field work ad for
processing and analyzing the data.
(c)
z The quality of a study is often better with sampling to a

complete coverage. The possibility of better interviewing, more
thorough investigation of missing, wrong or suspicious
information, better supervision, and better processing is
greater in sampling than in complete coverage.
106 z Sampling provides much quicker results than does a census.
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Notes The speed of execution minimizes the time between the
___________________ recognition of a need for information and the availability of
that information. The speed of execution is vital in feasibility
___________________
studies, evaluation studies, and business research. Timely
___________________
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execution of a study is essential for making use of its findings.
___________________
z Sampling is the only procedure possible, if the population is
___________________ infinite, e.g., throws of dice, consumer behaviour surveys, etc.
___________________ z Statistical sampling yields a crucial advantage over any other
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___________________ way of choosing a part of the population for a study. That is,
___________________
when the estimates of the population characteristics are made
from the sample results, the precision of these estimates can
___________________
also be gauged from the sample results themselves.
___________________
Limitations
Following are the limitations of sampling:
z Demands more rigid control in undertaking sample operation.
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z Minority and smallness in number of sub-groups often render
study to be suspected.
z Accuracy level may be affected when data is subjected to
weighing.
Sometimes the information about each and every unit of the
population is required. This is possible only through the complete
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enumeration because the sample will not serve the purpose. Some
examples in which the sampling is not allowed are to conducting
the elections; we need a complete list of the votes. The candidates
participating in the election will not accept the results prepared
from a sample. With increase in literacy, the people may become
statistical minded and they may become willing to accept the
results prepared from the sample. In advanced countries the
opinion polls are frequently conducted and unofficially the people
accept the results of sample survey.
Tax is collected from all the tax payers. A complete list of all the
(c)
tax payers is required. The telephone, gas and electricity bills are
sent to all the consumers. A complete list of the owners of land and
property is always prepared to maintain the records. The position
of stocks in factories requires complete entries of all the items in
the stock.
107
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Check Your Progress Notes
Activity
Write short note on Sampling
Process.
1. A census is appropriate if the size of population is ___________________
________________
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___________________
2. ________________ frame is the list of elements from
___________________
which the sample is actually drawn.
___________________
Steps in Sampling Process ___________________
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___________________
Sampling process consists of seven steps. They are:
___________________
Define the population ___________________
___________________
Identify the sampling frame

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Specify the sampling unit
Selection of sampling method

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Determination of sample size
Specify sampling plan
Selection of sample
Figure 11.1: Sampling Process

(c)
Step 1: Define the Population

The basic issue in developing a sampling plan is to specify the
characteristics of those individuals or things (for example,
customers, companies, stores) from whom or about whom
108 information is needed to meet the research objectives. Population
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Notes is defined in terms of:
___________________
1. Elements
___________________
2. Sampling units
___________________
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3. Extent
___________________
4. Time.
___________________
Example: If we are monitoring the sale of a new product recently
___________________
introduced by a company, say (shampoo sachet) the population will
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___________________ be:
___________________ 1. Element - Company’s product
___________________
2. Sampling unit - Retail outlet, super market
___________________
3. Extent - Hyderabad and Secunderabad
4. Time - April 10 to May 10, 2006.
Step 2: Identify the Sampling Frame
Sampling frame could be (a) Telephone Directory (b) Localities of a
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city using the municipal corporation listing (c) Any other list
consisting of all sampling units.
Example: You want to learn about scooter owners in a city. The
RTO will be the frame, which provides you names, addresses and
the types of vehicles possessed.
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Step 3: Specify the Sampling Unit

Individuals who are to be contacted are the sampling units. If
retailers are to be contacted in a locality, they are the sampling
units.
Sampling unit may be husband or wife in a family. The selection of
sampling unit is very important. If interviews are to be held during
office timings, when the heads of families and other employed
persons are away, interviewing would under-represent employed
persons, and over-represent elderly persons, housewives and the
unemployed.
(c)
Step 4: Selection of Sampling Method

This refers to whether (a) probability or (b) non-probability
methods are used.
109
Step 5: Determine the Sample Size
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Notes
This means we need to decide “how many elements of the target
___________________
population are to be chosen?” The sample size depends upon the
type of study that is being conducted. For example, if it is an ___________________
exploratory research, the sample size will be generally small. For
E
___________________
conclusive research, such as descriptive research, the sample size
___________________
will be large.
___________________
The sample size also depends upon the resources available with
___________________
the company. It depends on the accuracy required in the study and
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the permissible errors allowed. ___________________
Step 6: Specify the Sampling Plan ___________________
___________________
A sampling plan should clearly specify the target population.
Improper defining would lead to wrong data collection. ___________________
Example: This means that, if a survey of a household is to be

conducted, a sampling plan should define a “household” , i.e “Does
the household consist of husband or wife or both”, minors etc.,
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“Who should be included or excluded”. Instructions to the
interviewer should include “How he should obtain a systematic
sample of households, probability sampling non-probability
sampling”. Advise him on what he should do to the household, if no
one is available.
Step 7: Select the Sample
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This is the final step in the sampling process. Based on the above
parameters sample respondents may be selected to collect the data
for the purpose of research.
Sampling Design
A Sampling design is a definite plan for obtaining a sample from a
given population. It refers to the technique or the procedure the
business researches would adopt to select units for the sample. It
will also indicate the number of units to be included in the sample
also known as Sample size. Sampling design is determined before
data are collected.
(c)
Characteristics
z Goal Orientation: Sample design should be oriented to the
research objectives.
110 z Measurability: The parameters under study should be
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Notes somehow or the other measurable so that accuracy can be
___________________ ensured.
___________________ z Usability: The sample size should be convenient to collect and
___________________ analyze.
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___________________ z Cost factor: The total cost of sample design, collection and
analysis of the data should be minimum.
___________________
Thus one has to weigh the pros and cons of various sample designs
___________________
before selecting the best possible one.
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___________________

___________________ True or False:
___________________ 1. The basic issue in developing a sampling plan is to

specify the characteristics of those individuals or
things.
2. Individuals who are not to be contacted are the
sampling units.
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Summary
Sampling is a part of the total population. It can be an individual
element or a group of elements selected from the population.
Although it is a subset, it is representative of the population and
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suitable for research in terms of cost, convenience, and time. The

sample group can be selected based on a probability or a non
probability approach. A sample usually consists of various units of
the population.
Lesson End Activity

Identify the appropriate target population and sampling frame for
various situations listed below:
1. The regional marketing manager of a beverage company wants
to test market three new flavours to gauge their acceptance.
(c)
2. A manufacturer wants to assess whether adequate inventories

of spare parts are being maintained by the distributors to
prevent shortages and loss of business.
3. A wholesaler dealing with audio/video equipments wants to 111
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evaluate the reaction of dealers towards a new promotion Notes
policy announced. ___________________
4. A TV channel wants to determine the viewing habits of ___________________
housewives and their programme preferences.
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___________________
___________________
Keywords
___________________
Sampling: Sampling is the act, process, or technique of selecting a
___________________
representative part of a population for the purpose of determining
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the characteristics of the whole population. ___________________
Sampling Frame: It is the list of elements from which the sample ___________________
is actually drawn. ___________________
Sampling Unit: A unit in a statistical analysis refers to one ___________________

member of a set of entities being studied.
Sample Plan: A sampling plan should clearly specify the target
population.
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1. What are the Principles of Sampling?
2. Discuss the assumptions of quantitative sampling.
3. Highlight the two main components of sampling strategy.
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4. What are the advantages and disadvantages of sampling?

5. Define Sampling Design.
Further Readings
Books
India.
(c)

112
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Notes
Pvt. Ltd.
___________________
___________________ Web Readings

___________________ http://www.indiana.edu/~educy520/sec5982/week_2/sampling.pdf
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___________________ http://www.mbaknol.com/research-methodology/meaning-of-
sampling-and-steps-in-sampling-process/
___________________
___________________
http://en.wikipedia.org/wiki/Sampling_%28statistics%29
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___________________ http://psychology.ucdavis.edu/rainbow/html/fact_sample.html
___________________
___________________
___________________
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(c)
UNIT 12: Sampling Techniques
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Notes
Activity
___________________
Discuss the advantages and
Sampling Techniques disadvantages of probability
___________________
sampling technique.
___________________
Objectives
___________________
topics: ___________________
 Probability Sampling Techniques ___________________
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 Non-Probability Sampling Techniques ___________________
 Multistage Sampling
___________________
___________________
Introduction
___________________
Sampling design may be classified into two types i.e., probability
sampling and non-probability sampling.
Probability sampling: In a probability sample, every unit in the
population has equal chances for being selected as a sample unit.
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Non–probability sampling: In the non-probability sampling, the
units in the population have unequal or negligible, almost no
chances for being selected as a sample unit.
Probability Sampling Techniques

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Following are the probability sampling techniques:

1. Random Sampling
2. Systematic sampling
3. Stratified random sampling
4. Cluster sampling
5. Multistage sampling
6. Area sampling
Random Sampling
(c)
Simple random sample is a process in which every item of the

population has an equal probability of being chosen.
There are two methods used in the random sampling:
1. Lottery method
2. Using random number table.
1. Lottery method: Take a population containing four
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Notes
departmental stores: A, B, C and D. Suppose we need to pick a
___________________
sample of two stores from the population using a simple random
___________________ procedure. We write down all possible samples of two. Six
___________________ different combinations, each containing two stores from the
population, are AB, AD, AC, BC, BD, and CD. We can now write
___________________
down six sample combination on six identical pieces of paper,
___________________ fold the piece of paper so that they cannot be distinguished. Put
___________________ them in a box. Mix them and pull one at random. This
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procedure is the lottery method of making a random selection.
___________________
___________________
2. Using random number table: A random number table
consists of a group of digits that are arranged in random order,
___________________
i.e., any row, column, or diagonal in such a table contains
___________________ digits that are not in any systematic order. There are three
tables for random numbers (a) Tippet’s table (b) Fisher and
Yate’s table (c) Kendall and Raington table.
The table for random number is as follows:
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Table 12.1: Random Numbers
40743 39672
80833 18496
10743 39431
88103 23016
53946 43761
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31230 41212
24323 18054
Example: Taking the earlier example of stores. We first number

the stores.
1A 2B 3C 4D
The stores A, B, C and D have been numbered as 1, 2, 3 and 4.
We proceed as follows, in order to select two shops out of four
randomly:
Suppose, we start with the second row in the first column of the
(c)
table and decide to read diagonally. The starting digit is 8. There

are no departmental stores with the number 8 in the population.
There are only four stores. Move to the next digit on the diagonal,
which is 0. Ignore it, since it does not correspond to any of the
stores in the population. The next digit on the diagonal is 1 which
corresponds to store A. Pick A and proceed until we get two
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samples. In this case, the two departmental stores are 1 and 4. The Notes
sample derived from this consists of departmental stores A and D. ___________________
In random sampling, there are two possibilities (1) Equal ___________________
probability (2) Varying probability.
___________________
Equal Probability ___________________
This is also called as the random sampling with replacement. ___________________
Example: Put 100 chits in a box numbered 1 to 100. Pick one ___________________
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number at random. Now the population has 99 chits. Now, when a ___________________
second number is being picked, there are 99 chits. In order to ___________________
provide equal probability, the sample selected is being replaced in
___________________
the population.
___________________
Varying Probability
This is also called random sampling without replacement. Once a
number is picked, it is not included again. Therefore, the
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probability of selecting a unit varies from the other. In our
example, it is 1/100, 1/99, 1/98, 1/97 if we select four samples out of
100.
Systematic Random Sampling

There are three steps:
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1. Sampling interval K is determined by the following formula:
K=
2. One unit between the first and Kth unit in the population list
is randomly chosen.
3. Add Kth unit to the randomly chosen number.
Example: Consider 1,000 households from which we want to
select 50 units.

(c)
Calculate K =
To select the first unit, we randomly pick one number from 1 to 20,
say 17. So our sample begins with 17,37,57………….. Please note
that only the first item was randomly selected. The rest are
systematically selected. This is a very popular method because we
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Notes need only one random number.
___________________
Stratified Random Sampling
___________________
A probability sampling procedure is that in which simple random
___________________
sub-samples are drawn from within different strata that are, more
___________________ or less equal on some characteristics. Stratified sampling is of two
___________________ types:
___________________ 1. Proportionate stratified sampling: The number of
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sampling units drawn from each stratum is in proportion to
___________________
the population size of that stratum.
___________________
2. Disproportionate stratified sampling: The number of
___________________
sampling units drawn from each stratum is based on the
___________________ analytical consideration, but not in proportion to the size of the
population of that stratum.
Sampling process is as follows:
1. The population to be sampled is divided into groups
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(stratified).
2. A simple random sample is chosen.
Reason for Stratified Sampling

Sometimes, marketing professionals want information about the
component part of the population. Assume there are three stores.
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Each store forms a strata and the sampling from within each
strata is being selected. The resultant might be used to plan
different promotional activities for each store strata.
Suppose a researcher wishes to study the retail sales of products,
such as tea in a universe of 1,000 grocery stores (Kirana shops
included). The researcher can first divide this universe into three
strata based on the size of the store. This benchmark for size could
be only one of the following (a) floor space, (b) volume of sales
(c) variety displayed, etc.
Table 12.2: Sales of Products

(c)
Size of Stores No. of Stores Percentage of Stores

Large stores 2,000 20
Medium stores 3,000 30
Small stores 5,000 50
10,000 100
Suppose we need 12 stores, and then choose four from each
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Notes
stratum, at random. If there was no stratification, simple random
sampling from the population would be expected to choose two ___________________
large stores (20% of 12) about four medium stores (30% of 12) and ___________________
about six small stores (50% of 12).
___________________
As can be seen, each store can be studied separately using the
___________________
stratified sample.
___________________
Selection by Proportionate Stratified Sample ___________________
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Assume that there are 60 students in a class of a management ___________________
school, of this, 10 has to be selected to take part in a Business quiz ___________________
competition. Assume that the class has students specializing in
___________________
marketing, finance and HR stream.
___________________
The first step is to subdivide the students of the class into 3
homogeneous groups or stratify the student population, by the area
in which they are specializing.
Table 12.3: Streams of Students

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Marketing Streaming Finance Stream HR Stream
1 32 8 11 33 34
2 36 12 13 35 37
3 40 15 17 38 39
4 43 18 20 41 42
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5 46 19 21 44 45
7 47 22 24 49 48
9 60 23 25 59 58
10 57 28 26 60 56
14 50 27 29 52 51
16 53 31 30 55 54
Second step is to calculate the sampling fraction f = n/N

n = Sample size required
N = Population size
(c)
Third step determines how many are to be selected from marketing

stream (say n1)
n1 = 30 × 1/10 = 30 × 1/10
Sample to be selected from marketing strata n1= 30 × 1/10 = 3

Now we can select 3 numbers from among 30 numbers at random
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Notes
say 7,60,22
___________________
Similarly we can select n2 n3
___________________
n2 = 20 × 1/10 = 2
___________________
___________________ The 2 numbers selected at random from finance stream are 13,59
___________________ N3 = 10 × 1/10 = 1
___________________ Stratified sampling can be carried out with:
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___________________
1. Same proportion across the strata proportionate stratified
___________________ sample.
___________________ 2. Varying proportion across the strata disproportionate
___________________ stratified sample.
Example
Table 12.4: A Stratified Sample
Size of stores No. of stores Sample Sample

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(Population) Proportionate Disproportionate
Large 2,000 20 25
Medium 3,000 30 35
Small 5,000 50 40
10,000 100 100
Example
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Table 12.5: Estimation of Universe Mean with a Stratified Sample
Size of stores Sample Mean No. of stores Percent of stores

Sales per store
Large 200 2000 20
Medium 80 3000 30
Small 40 5000 50
10,000 100
The population mean of monthly sales is calculated by multiplying

the sample mean by its relative weight.
(c)
200 × 0.2 + 80 × 0.3 + 40 × 0.5 = 84
Sample Proportionate
If N is the size of the population.
n is the size of the sample.
i represents 1,2,3,…………..k [number of strata in the population]
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Notes
 Proportionate sampling
___________________
p = = = .... = = ___________________
___________________
= = n1 = × n1 and so on ___________________
___________________
n1 is the sample size to be drawn from stratum 1
___________________
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n1+ n2 +…………nk = n [Total sample size of the all strata]
___________________
Cluster Sampling ___________________
The following steps are followed. ___________________
1. The population is divided into clusters. ___________________
2. A simple random sample of few clusters is selected.

3. All the units in the selected cluster are studied.
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The above mentioned cluster sampling is similar to the first step of
stratified random sampling. But the two sampling methods are
different. The key to cluster sampling is decided by how
homogeneous or heterogeneous the clusters are.
A major advantage of simple cluster sampling is the case of sample
selection. Suppose, we have a population of 20,000 units from
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which we wish to select 500 units. Choosing a sample of that size is

a very time-consuming process, if we use Random Numbers table.
Suppose, the entire population is divided into 80 clusters of 250
units each, we can choose two sample clusters (2 × 250 = 500)
easily by using cluster sampling. The most difficult job is to form
clusters. In marketing, the researcher forms clusters so that he can
deal with each cluster differently.
Example
Assume there are 20 households in a locality.
Table 12.6: Number of Households in a Locality

(c)
Cross Houses
1 X1 X2 X3 X4
2 X5 X6 X7 X8
3 X9 X10 X11 X12
4 X13 X14 X15 X16
We need to select eight houses. We can choose eight houses at
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Notes
random. Alternatively, two clusters, each containing four houses
___________________
can be chosen. In this method, every possible sample of eight
___________________ houses would have a known probability of being chosen – i.e.
___________________ chance of one in two. We must remember that in the cluster, each
house has the same characteristics. With cluster sampling, it is
___________________
impossible for certain random sample to be selected. For example,
___________________ in the cluster sampling process described above, the following
___________________ combination of houses could not occur: X1 X2 X5 X6 X9 X10 X13 X14.
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___________________ This is because the original universe of 16 houses has been
redefined as a universe of four clusters. So only clusters can be
___________________
chosen as a sample.
___________________
___________________
Multistage Sampling
The name implies that sampling is done in several stages. This is
used with stratified/ cluster designs.
An illustration of double sampling is as follows.
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The management of a newly-opened club is solicits new
membership. During the first rounds, all corporates were sent
details so that those who are interested may enroll. Having
enrolled, the second round concentrates on how many are
interested to enroll for various entertainment activities that club
offers such as billiards, indoor sports, swimming, and gym etc.
After obtaining this information, you might stratify the interested
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respondents. This will also tell you the reaction of new members to
various activities. This technique is considered to be scientific,
since there is no possibility of ignoring the characteristics of the
universe.
Advantage: May reduce cost, if first stage results are enough to
stratify or cluster.
Disadvantage: Costs increase as more and more stages are
included.
Area Sampling
(c)
This is another type of cluster sampling. In this method clusters

are formed on the basis of geographical location.
Suppose a researcher wishes to measure certain characteristics of
salesman working in a certain industry. Assume that the
attributes required to be measured is job satisfaction or earnings
or pride, etc. The researcher could prepare a list of salesman
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working for various selected firms. If the researcher studied each Notes
of the salesman in each of the firm selected, with respect to the ___________________
above characteristics he is carrying out would amount to one stage
___________________
sampling. If on the other hand the researcher sub sampled the
salesman from each of the firm listed, it would be 2 stage ___________________
sampling. Area sampling is very similar to this. ___________________
There are two types of area sampling (i) one stage area sampling, ___________________
and (ii) two stage area sampling. ___________________
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One Stage Area Sampling ___________________
___________________
One stage area sampling involves the following procedure:
___________________
 Segmenting the total area (state or country) into sub areas.
___________________
 Select sub areas randomly.
 Study all the units in the sub area which has been selected.
For example, retailers or agents or households in a particular sub
area selected.
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Advantages
 Easy to understand.
 There is no need to segment the population.
Disadvantages
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Final sample may not be the representative of the population. This

is because, characteristics of the units within a given sub area will
be similar to one another.
Two Stage Area Sampling

Two stage area sampling is done as follows. As the name itself
indicates, the entire sampling is done in two stages of random
sampling. First stage involves selection of sub areas randomly.
Second stage involves further division of sub areas and selecting
sampling units from the sub divided areas. Sample chosen by this
method will be representative of the population. Therefore,
(c)
statistically it will be more accurate.

The disadvantage of this method is that, it is time consuming and
expensive.
Example
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Notes
Suppose a TV channel (star sports) in a metro wants to carry out a
___________________
study related to TV viewing behaviour of households. Assume that
___________________ there are 10 Blocks in that metro and each block has 1000 houses.
___________________ Suppose a sample of 200 houses is to be chosen for the study
through area sampling. Table below shows different combinations
___________________
for getting 200 samples.
___________________
Various sampling plans are given in the table
___________________
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Table 12.7: Various Sampling Plans
___________________
Sampling plan No. of sub areas No. of units to be selected
___________________ from each sub area
1 10 20
___________________
2 20 10
___________________
3 25 8
4 40 5
5 50 4
6 100 2
7 200 1
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Plan 1 as above is one stage area sampling. This is because 20
units are drawn from each phases without any further sub
division. Plan 2 to Plan 7 are two stage area sampling plan, as
each phases are sub divided into sub areas. Plan 1 will be least
representative and Plan 7 will be most representative. In terms of
cost and time Plan 1 will be the best and Plan 7 is the worst. Other
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plans are in between. Therefore, choice of Plan 1 to Plan 7 will

depend entirely on the precision required for the researcher.
Advantages and Disadvantages of Probability Sampling

Following are the advantages and disadvantages of probability
sampling:
Advantages
 It is unbiased.
 Quantification is possible in probability sampling.
(c)
 Less knowledge of universe is sufficient.
Disadvantages
 It takes time.
 It is costly.
 More resources are required to design and execute than in
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Notes
non-probability design. Activity
___________________
What is non-probability
In marketing research, non-probability sample is used due to time
sampling technique?
and budget constraints. ___________________
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. In a _______________ sample, every unit in the
___________________
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population has equal chances for being selected as a
sample unit. ___________________
___________________
2. In the _______________ sampling, the units in the
population have unequal or negligible, almost no ___________________
chances for being selected as a sample unit. ___________________
3. _______________ is also called random sampling without
replacement.
4. _______________ is a probability sampling procedure in
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which simple random sub-samples are drawn from within
different strata that are, more or less equal on some
characteristics.
Non-Probability Sampling Techniques

Following are the non-probability sampling techniques:
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1. Deliberate sampling
2. Shopping Mall Intercept Sampling
3. Sequential sampling
4. Quota sampling
5. Snowball sampling
6. Panel samples
Deliberate or Purposive Sampling

This is also known as the judgment sampling. The investigator
(c)
uses his discretion in selecting sample observations from the

universe. As a result, there is an element of bias in the selection.
From the point of view of the investigator, the sample thus chosen
may be a true representative of the universe. However, the units in
the universe do not enjoy an equal chance of getting included in
the sample. Therefore, it cannot be considered a probability
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Notes sampling.
___________________
Example: Test market cities are being selected, based on the
___________________ judgment sampling, because these cities are viewed as typical
___________________ cities matching with certain demographical characteristics.
Judgment sample is also frequently used to select stores for the
___________________
purpose of introducing a new display.
___________________
___________________
Shopping Mall Intercept Sampling
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This is a non-probability sampling method. In this method the
___________________
respondents are recruited for individual interviews at fixed
___________________
locations in shopping malls. (Example: Shopper’s Shoppe, Food
___________________ World, Sunday to Monday). This type of study would include
___________________ several malls, each serving different socio-economic population.
Example: The researcher may wish to compare the responses of
two or more TV commercials for two or more products. Mall
samples can be informative for this kind of studies. Mall samples
should not be used under following circumstances i.e., if the
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difference in effectiveness of two commercials varies with the
frequency of mall shopping, change in the demographic
characteristic of mall shoppers, or any other characteristic. The
success of this method depends on “How well the sample is
chosen”.
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Merits
1. It has a relatively small universe.
2. In most cases, it is expected to give quick results. The purpose
of deliberate sampling has become a practical method in
dealing with economic or practical problems.
3. In studies, where the level of accuracy can vary from the
prescribed norms, this method can be used.
Demerits
1. Fundamentally, this is not considered a scientific approach, as
(c)
it allows for bias.

2. The investigator may start with a preconceived idea and draw
samples such that the units selected will be subjected to
specific judgment of the enumerator.
Sequential Sampling
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This is a method in which the sample is formed on the basis of a Notes
series of successive decisions. ___________________
First a sample is selected, from the selected sample data collection ___________________
and analysis is done. Based on this, a decision is made whether ___________________
further samples are required or not. Sample size is not known in
___________________
advance or beforehand in this method. At each stage, a decision is
taken, whether further samples are required or not. This depends on ___________________
the adequacy of information provided by existing sample respondents. ___________________
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Example: Assume that a product needs to be evaluated. ___________________
A small probability sample is taken from among the current user. ___________________
Suppose it is found that average annual usage is between 200 to ___________________

300 units. It is known that the product is economically viable only
___________________
if the average consumption is 400 units. This information is
sufficient to take a decision to drop the product. On the other hand,
if the initial sample shows a consumption level of 450 to 600 units,
additional samples are needed for further study.
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Quota Sampling
Quota sampling is quite frequently used in marketing research. It
involves the fixation of certain quotas, which are to be fulfilled by
the interviewers.
Suppose, 2,00,000 students are appearing for a competitive
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examination. We need to select 1% of them based on quota

sampling. The classification of quota may be as follows:
Example:
Table 12.8: Classification of Samples
Category Quota
General merit 1,000
Sport 600
NRI 100
SC/ST 300
TOTAL 2,000
(c)
Quota sampling involves the following steps:

1. The population is divided into segments on the basis of certain
characteristics. Here, the segments are termed as cells.
2. A quota of unit is selected from each cell.
Advantages
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Notes
1. Quota sampling does not require prior knowledge about the
___________________
cell to which each population unit belongs. Therefore, this
___________________ sampling has a distinct advantage over stratified random
___________________ sampling, where every population unit must be placed in the
appropriate stratum before the actual sample selection.
___________________
2. It is simple to administer. Sampling can be done very quickly.
___________________
___________________
3. The necessity of the researcher going to various geographical
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locations is avoided and thus cost is reduced.
___________________
___________________ Limitations
___________________ 1. It may not be possible to get a “representative” sample within
___________________ the quota as the selection depends entirely on the mood and
convenience of the interviewer.
2. Since too much liberty is being allowed to the interviewer, the
quality of work suffers if they are not competent.
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Snowball Sampling
This is a non-probability sampling. In this method, the initial
group of respondents are selected randomly. Subsequent
respondents are being selected based on the opinion or referrals
provided by the initial respondents. Further referrals will lead to
more referrals, thus leading to a snowball sampling. The referrals
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will have demographic and psychographic characteristics that are

relatively similar to the person referring them.
Example: College students bring in more students on the
consumption of Pepsi. The major advantage of snowball sampling
is that it monitors the desired characteristics in the population.
Panel Samples
Panel samples are frequently used in marketing research. To give
an example, suppose that one is interested in knowing the change
in the consumption pattern of households. A sample of households
is drawn. These households are contacted to gather information on
(c)
the pattern of consumption. Subsequently, say after a period of six

months, the same households are approached once again and the
necessary information on their consumption is collected.
Distinction between Probability and Non-Probability Sample
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Probability Sample Notes
___________________
1. Here, each member of a universe has a known chance of being
selected and included in the sample. ___________________
2. Any personal bias is avoided. The researcher cannot exercise ___________________
his discretion in the selection of sample items. ___________________
Examples: Random Sample, cluster sample. ___________________
___________________
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Non-Probability Sample
___________________
In this case, the likelihood of choosing a particular universe
element is unknown. The sample chosen in this method is based on ___________________
aspects like convenience, quota, etc. ___________________
Examples: Quota sampling, Judgment sampling. ___________________
Errors in Sampling
Now let us discuss the errors in sampling:
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Sampling Error
The only way to guarantee the minimization of sampling error is to
choose the appropriate sample size. As the sample keeps on
increasing, the sampling error decreases. Sampling error is the gap
between the sample mean and population mean.
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Example: If a study is done amongst Maruti car-owners in a city

to find the average monthly expenditure on the maintenance of
car, it can be done by including all Maruti car-owners. It can also
be done by choosing a sample without covering the entire
population. There will be a difference between the two methods
with regard to monthly expenditure.
Non-sampling Error
One way of distinguishing between the sampling and the non-
sampling error is that, while sampling error relates to random
variations which can be found out in the form of standard error,
(c)
non-sampling error occurs in some systematic way which is

difficult to estimate.
Sampling Frame Error
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Notes
A sampling frame is a specific list of population units, from which
___________________ the sample for a study being chosen.
___________________
Example 1: An MNC bank wants to pick up a sample among the
___________________ credit card holders. They can readily get a complete list of credit
___________________ card holders, which forms their data bank. From this frame, the
desired individuals can be chosen. In this example, sample frame is
___________________
identical to ideal population namely all credit card holders. There
___________________ is no sampling error in this case.
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___________________ Example 2: Assume that a bank wants to contact the people
___________________ belonging to a particular profession over phone (doctors, lawyers)
___________________
to market a home loan product. The sampling frame in this case is
the telephone directory. This sampling frame may pose several
___________________
problems: (1) People might have migrated. (2) Numbers have
changed. (3) Many numbers were not yet listed. The question is
“Are the residents who are included in the directory likely to differ
from those who are not included”? The answer is yes. Thus in this
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case, there will be a sampling error.
Non-response Error
This occurs, because the planned sample and final sample vary
significantly.
Example: Marketers want to know about the television viewing
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habits across the country. They choose 500 households and mail
the questionnaire. Assume that only 200 respondents reply. This
does not show a non-response error, which depends upon the
discrepancy. If those 200 who replied did not differ from the chosen
500, there is no non-response error.
Consider an alternative. The people who responded are those who
had plenty of leisure time. Therefore, it is implied that non-
respondents do not have adequate leisure time. In this case, the
final sample and the planned sample differ. If it was assumed that
all the 500 chosen have leisure time, but in the final analysis only
200 have leisure time and not others. Therefore, a sample with
(c)
respect to leisure time leads to response error.
Guidelines to Increase the Response Rate

Every researcher likes to get maximum possible response from the
respondents, and will be most delighted if cent percent respondent
unfortunately, this does not happen. The non-response error can be
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reduced by increasing the response rate. Higher the response rate, Notes
more accurate and reliable is the data. In order to achieve this, ___________________
some useful hints could be as follows.
___________________
1. Intimate the respondents in advance through a letter. This
___________________
will improve the preparedness.
___________________
2. Personalized Questionnaire should be accompanied by a
___________________
covering letter.
___________________
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3. Ensure/Assure that confidentiality will be maintained.
___________________
4. Questionnaire length is to be restricted.
___________________
5. Increase of personal interview, ID card is essential to prove
___________________
the bonafide.
___________________
6. Monetary incentives are gifts will act as motivator.
7. Reminder/Revisits would help.
8. Send self addressed/stamped envelope to return the completed
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questionnaire.
Data Error
This occurs during the data collection, analysis of data or
interpretation. Respondents sometimes give distorted answers
unintentionally for questions which are difficult, or if the question
is exceptionally long and the respondent may not have answer.
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Data errors can also occur depending on the physical and social
characteristics of the interviewer and the respondent. Things such
as the tone and voice can affect the responses. Therefore, we can
say that the characteristics of the interviewer can also result in
data error. Also, cheating on the part of the interviewer leads to
data error. Data errors can also occur when answers to open-ended
questions are being improperly recorded.
Failure of the Interviewer to Follow Instructions

 The respondent must be briefed before beginning the
interview, “What is expected?” “To what extent he should
(c)
answer?” Also, the interviewer must make sure that

respondent is familiar with the subject. If these are not made
clear by the interviewer, errors will occur.
 Editing mistakes made by the editors in transferring the data
from questionnaire to computers are other causes for errors.
 The respondent could terminate his/her participation in data
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Notes gathering, because it may be felt that the questionnaire is too
___________________ long and tedious.
___________________
Check Your Progress
___________________
Fill in the blanks:
___________________
1. Deliberate or Purposive Sampling is also known as the
___________________ _______________.
___________________
2. In _____________ method the respondents are recruited
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___________________ for individual interviews at fixed locations in shopping
___________________ malls.
___________________ 3. _____________ is a method in which the sample is

formed on the basis of a series of successive decisions.
___________________
4. In _____________ method, the initial group of
respondents are selected randomly.
Summary
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Sample is a representative of population. Census represents cent
percent of population. The most important factors distinguishing
whether to choose sample or census is cost and time. There are
seven steps involved in selecting the sample. There are two types
of sample (a) Probability sampling (b) Non-probability sample.
Probability sampling includes random sampling, stratified random
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sampling systematic sampling, cluster sampling, Multistage

sampling. Random sampling can be chosen by Lottery method or
using random number table. Samples can be chosen either with
equal probability or varying probability. Random sampling can be
systematic or stratified. In systematic random sampling, only the
first number is randomly selected. Then by adding a constant “K”
remaining numbers are generated. In stratified sampling, random
samples are drawn from several strata, which have more or less
same characteristics. In multistage sampling, sampling is drawn in
several stages.
(c)
Lesson End Activity

Prepare a sample plan including the sample size for Santoor soap,
keeping in mind both the male and female customers. Use three
economic strata, the educational level and the age group
influencing the buyer behaviour. Prepare a sampling design for the
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following: Notes
1. To measure the effectiveness for a TV Ad on soaps. ___________________
2. Consumer reaction to a new brand of coffee introduced. ___________________
___________________
3. To assess the market share of branded soap.
___________________
Keywords ___________________
Sample: A sample is a part of a target population, which is ___________________
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carefully selected to represent the population. ___________________
Sample Frame: Sampling frame is the list of elements from which ___________________
the sample is actually drawn. Actually, sampling frame is nothing ___________________
but the correct list of population.
___________________
Census: A census is appropriate if the size of population is small.
Simple Random Sampling: Simple Random Sampling is the
simplest type of sampling, in which we draw a sample of size (n) in
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such a way that each of the ‘N’ members of the population has the
same chance of being included in the sample.
Stratified Random Sampling: In Stratified random sampling
the members of the population are first assigned to strata or
groups, on the basis of some characteristic and a simple random
sample is drawn from each stratum.
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Judgment Sampling: In judgment sampling, the judgment or

opinion of some experts forms the basis of the sampling method.

1. Distinguish census from sampling.
2. What is sampling frame? Give an example.
3. What are the steps involved in the process of sampling?
4. What are the different types of sample designs?
5. What are the types of probability sampling techniques?
(c)
6. What is systematic random sampling? How are the random

start number and the sampling interval determined?
Further Readings
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Notes
___________________ Books
___________________
India.

___________________
___________________
UP
___________________
___________________
___________________
Pvt. Ltd.
___________________
Web Readings
http://sociology.about.com/od/Research/a/sampling-designs.htm
http://www.slideshare.net/ludymae/chapter-8sample-sampling-
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techniques
www.pitt.edu/~super4/33011-34001/33841.ppt
optimierung.mathematik.unikl.de/mamaeusch/.../sampling_en.pdf
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(c)
UNIT 13: Primary Data Collection
Unit 13
133
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Notes
Activity
Primary Data Collection

___________________
Write short note Primary Data.
___________________
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___________________
Objectives
___________________
topics: ___________________
\ Primary Data ___________________
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\ Methods of Collection of Primary Data ___________________
\ Importance of Questionnaire
___________________
Introduction ___________________
___________________
Once the researcher has decided the ‘Research Design’, the next job
is of data collection. For data to be useful, our observations need to
be organized so that we can get some patterns and come to logical
conclusions.
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Statistical investigation requires systematic collection of data, so
that all relevant groups are represented in the data.
To determine the potential market for a new product, for example,
the researcher might study 500 consumers in a certain
geographical area. It must be ascertained that the group contains
people representing variables such as income level, race, education
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and neighbourhood. The quality of data will greatly affect the

conclusions and hence, utmost importance must be given to this
process and every possible precaution should be taken to ensure
accuracy, while gathering and collecting data.
Depending upon the sources utilized, whether the data has come
from actual observations or from records that are kept for normal
purposes, statistical data can be classified into two categories –
Primary and secondary.
Primary Data
(c)
The data directly collected by the researcher, with respect to the

problem under study, is known as primary data. Primary data is
also the firsthand data collected by the researcher for the
immediate purpose of the study. Primary data is one which is
collected by the investigator himself for the purpose of a specific
134 inquiry or study. Such data is original in character and is
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Notes
Activity
generated by surveys conducted by individuals or research
___________________
What are the methods of institutions.
Collection of Primary Data?
___________________ Primary data is that which is collected by sociologists themselves
___________________ during their own research using research tools such as
E
experiments, survey questionnaires, interviews and observation.
___________________
Primary data can take a quantitative or statistical form, e.g.
___________________
charts, graphs, diagrams and tables. It is essential to interpret and
___________________ evaluate this type of data with care. In particular, look at how the
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___________________ data is organised in terms of scale. Is it organised into percentages,
___________________
hundreds, thousands, etc.? Is it a snapshot of a particular year or
is it focusing on trends across a number of years?
___________________
Primary data can also be qualitative, e.g. extracts from the
___________________
conversations of those being studied. Some researchers present
their arguments virtually entirely in the words of their subject
matter. Consequently the data speaks for itself and readers are
encouraged to make their own judgements.
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Check Your Progress
True or False:
1. Primary data can take a quantitative or statistical
form.
2. Primary data can also not be qualitative.
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Methods of Collection of Primary Data

Observation and questioning are two broad approaches available
for primary data collection. The major difference between the two
approaches is that in the questioning process, the respondents play
an active role because of their interaction with the researcher.
Observation Method
In the observation method, only present/current behaviour can be
studied. Therefore, many researchers feel that this is a great
(c)
disadvantage. A causal observation could enlighten the researcher

to identify the problem; such as the length of the queue in front of
a food chain, price and advertising activity of the competitor etc.
Observation is the least expensive mode of data collection.
Survey Research Design 135
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Notes
Survey is used most often to describe a method of gathering
information from samples of individuals. For example, sample of ___________________
voters are questioned before elections to determine how the public ___________________
perceives the candidate and the party. A manufacturer does a
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___________________
survey of the potential market before introducing a new product.
Government commissions conduct a survey to gather the factual ___________________
information; it needs to evaluate existing legislation, etc. ___________________
Steps involved in Designing Survey Method ___________________
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1. Select and formulate research problem. ___________________
2. Select an appropriate survey method. ___________________
3. Design the survey method/research design. ___________________
___________________
4. Conduct survey and collect data.
5. Analyze and report.
Purpose of Survey
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There are two purposes of survey, they are as follows:
z Information gathering: It collects information for a specific
purpose. For example, pools, census, customer satisfaction,
attitude, etc.
z Theory testing and building: Surveys are also used for the
purpose of testing and building theory. For example,
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personality and social psychology theories.
Survey Methods
Following are the survey methods:
Personal Interviews
An interview is called personal when the Interviewer asks the
questions face-to-face with the Interviewee. Personal interviews
can take place at home, at a shopping mall, on the street, and so
on.
(c)
Telephone Surveys
It is a process of collecting information from sample respondents by
calling them over telephone. Surveying by telephone is the most
popular interviewing method.
136
Computer Direct Interviews
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Notes
___________________
These are the methods in which the respondents enter their
answers directly into a computer.
___________________
Email Surveys
___________________
E
Email Questionnaire is a new type of questionnaire system that
___________________
revolutionizes the way on-line questionnaires are conducted.
___________________
Unlike other on-line questionnaire systems that need a web server
___________________ to construct, distribute and manage results, Email Questionnaire
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___________________ is totally email based. It works with the existing email system
making on-line questionnaire surveys available to anyone with an
___________________
Internet connection.
___________________
Internet/Intranet (Web Page) Survey
___________________
Web surveys are rapidly gaining popularity. They have major
speed, cost, and flexibility advantages, but also significant
sampling limitations. These limitations make software selection
especially important and restrict the groups that can be studied
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using this technique.
Mail Questionnaire
Mail questionnaire is a paper questionnaire, which is sent to
selected respondents to fill and post filled questionnaire back to
the researcher.
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Example, “Tell me spontaneously, what comes to your mind if I

ask you about cigarette smoking”.
z In case of a mail questionnaire, it is not possible to verify
whether the respondent himself/herself has filled the
questionnaire. If the questionnaire is directed towards the
housewife, say, to know her expenditure on kitchen items, she
alone is supposed to answer it. Instead, if her husband
answers the questionnaire, the answer may not be correct.
z Any clarification required by the respondent regarding
questions is not possible.
(c)
Example: Prorated discount, product profile, marginal rate, etc.,

may not be understood by the respondents.
z If the answers are not correct, the researcher cannot probe
further.
z Poor response (30%) – Not all will reply.
z In populations of lower educational and literacy levels, 137
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response rates to mail surveys are often too small to be useful. Notes
___________________
Summary of Survey Methods
___________________
Choice of survey method will depend on several factors. These
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___________________
include:
___________________
Table 13.1: Factors of Survey Methods
___________________
Speed Email and web page surveys are the fastest methods,
followed by telephone, interviewing, and mail surveys are ___________________
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the slowest.
Cost Personal interviews are the most expensive followed by ___________________
telephone and the mail. Email and the web page surveys
are the least expensive for the large sample. ___________________
Internet usage Internet is the basis for Email and web page surveys. ___________________
Literacy level Interview method is most used and email and web page
___________________
surveys are not used for illiterate people.
Sensitive Computer direct interviews are most suitable to get
questions answers for sensitive questions.
Video, Sound, To get reactions to video, music or picture, computer direct
Graphic interviews and web pages are useful. To get reactions to
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music the above methods and telephone may be used. To
show pictures email, web page, computer direct interviews
can be used.
Questionnaire
A questionnaire is a research instrument consisting of a series of
questions and other prompts for the purpose of gathering
information from respondents. The questionnaire was invented by
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Sir Francis Galton.
Importance and Limitations of Questionnaire in MR

Questionnaires have advantages over some other types of data
collection. Questionnaires are cheap, do not require as much effort
from the questioner as verbal or telephone surveys, and often have
standardized answers that make it simple to compile data.
However, such standardized answers may frustrate users.
Questionnaires are also sharply limited by the fact that
respondents must be able to read the questions and respond to
(c)
them. Thus, for some demographic groups conducting a survey by

questionnaire may not be practical.
Characteristics of Questionnaire
1. It must be simple. The respondents should be able to
understand the questions.
138 2. It must generate replies that can be easily be recorded by the
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Notes interviewer.
___________________
3. It should be specific, so as to allow the interviewer to keep the
___________________ interview to the point.
___________________ 4. It should be well arranged, to facilitate analysis and
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___________________ interpretation.
___________________ 5. It must keep the respondent interested throughout.

___________________
Process of Questionnaire Designing
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___________________
The following are the seven steps involved in designing a
___________________
questionnaire:
___________________
2 3
1
___________________ W hat type of D ecide on the type of
D eterm ine w hat
questionnaire to be used questions
inform ation is needed
4
6 5
D ecide on the w ording of
Pre-test D eciding on the layout
questions
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7
R evise and prepare final
questionnaire
Figure 13.1: Questionnaire Designing Steps
Step 1: Determine What Information is required

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The first question to be asked by the market researcher is “what

type of information does he need from the survey?” This is valid
because if he omits some information on relevant and vital aspects,
his research is not likely to be successful. On the other hand, if he
collects information which is not relevant, he is wasting his time
and money.
At this stage, information required, and the scope of research
should be clear. Therefore, the steps to be followed at the planning
stage are:
1. Decide on the topic for research.
(c)
2. Get additional information on the research issue, from

secondary data and exploratory research. The exploratory
research will suggest “what are the relevant variables?”
3. Gather what has been the experience with similar study.
4. The type of information required. There are several types of 139
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information such as (a) awareness, (b) facts, (c) opinions, (d) Notes
attitudes, (e) future plans, (f) reasons. ___________________
Facts are usually sought out in marketing research. ___________________
Example: Which television programme did you see last Saturday?
E
___________________
This requires a reasonably good memory and the respondent may
___________________
not remember. This is known as recall loss. Therefore, questioning
___________________
the distant past should be avoided. Memory of events depends on
(1) Importance of the events, and (2) Whether it is necessary for ___________________
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the respondent to remember. In the above case, both the factors ___________________
are not fulfilled. Therefore, the respondent does not remember. On
___________________
the contrary, a birthday or wedding anniversary of individuals is
remembered without effort since the event is important. Therefore, ___________________
the researcher should be careful while asking questions about the ___________________
past. First, he must make sure that the respondent has the
answer.
Mode of Collecting the Data

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The questionnaire can be used to collect information either
through personal interview, mail or telephone. The method chosen
depends on the information required and also the type of
respondent. If the information is to be collected from illiterate
individuals, a questionnaire would be the wrong choice.
Step 2: Different Types of Questionnaire
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1. Structured and Non-disguised

2. Structured and Disguised
3. Non-structured and Disguised
4. Non-structured and Non-disguised
1. Structured and Non-disguised Questionnaire: Here,
questions are structured so as to obtain the facts. The
interviewer will ask the questions strictly in accordance with
the prearranged order. For example, what are the strengths of
soap A in comparison with soap B?
(c)
Cost is less
Lasts longer
Better fragrance
140 Produces more lather
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Notes
Available in more convenient sizes
___________________
Structured and non-disguised questionnaire is widely used in
___________________
market research. Questions are presented with exactly the
___________________ same wording and same order to all respondents. The reason
E
___________________ for standardizing the question is to ensure that all
respondents reply the same question. The purpose of the
___________________
question is clear. The researcher wants the respondent to
___________________ choose one of the five options given above. This type of
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___________________ questionnaire is easy to administer. The respondents have no
___________________
difficulty in answering, because it is structured, the frame of
reference is obvious.
___________________
In a non-disguised type, the purpose of the questionnaire is
___________________
known to the respondent.
Example: “Subjects attitude towards Cyber laws and the need
for government legislation to regulate it”.
Certainly, not needed at present
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Certainly not needed
I can’t say
Very urgently needed
Not urgently needed
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2. Structured and disguised Questionnaire: This type of

questionnaire is least used in marketing research. This type of
questionnaire is used to know the peoples’ attitude, when a
direct undisguised question produces a bias. In this type of
questionnaire, what comes out is “what does the respondent
know” rather than what he feels. Therefore, the endeavour in
this method is to know the respondent’s attitude.
Currently, the “Office of Profit” Bill is:
In the Lok Sabha for approval.
Approved by the Lok Sabha and pending in the Rajya
(c)
Sabha.
Passed by both the Houses, pending the presidential
approval.
The bill is being passed by the President.
Depending on which answer the respondent chooses, his 141
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knowledge on the subject is classified. Notes
In a disguised type, the respondent is not informed of the ___________________

purpose of the questionnaire. Here the purpose is to hide ___________________
“what is expected from the respondent?”
E
___________________
Example 1: “Tell me your opinion about Mr. Ben’s healing ___________________
effect show conducted at Bangalore?”
___________________
Example 2: “What do you think about the Babri Masjid
___________________
demolition?”
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___________________
3. Non-Structured and Disguised Questionnaire: The main
___________________
objective is to conceal the topic of enquiry by using a disguised
stimulus. Though the stimulus is standardized by the ___________________
researcher, the respondent is allowed to answer in an ___________________
unstructured manner. The assumption made here is that
individual’s reaction is an indication of respondent’s basic
perception. Projective techniques are examples of non-
structured disguised technique. The techniques involve the use
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of a vague stimulus, which an individual is asked to expand or
describe or build a story, three common types under this
category are (a) Word association (b) Sentence completion (c)
Story telling.
4. Non-structured and Non-disguised Questionnaire: Here

the purpose of the study is clear, but the responses to the
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question are open-ended. Example: “How do you feel about the

Cyber law currently in practice and its need for further
modification”? The initial part of the question is consistent.
After presenting the initial question, the interview becomes
much unstructured as the interviewer probes more deeply.
Subsequent answers by the respondents determine the
direction the interviewer takes next. The question asked by
the interviewer varies from person to person. This method is
called “the depth interview”. The major advantage of this
method is the freedom permitted to the interviewer. By not
restricting the respondents to a set of replies, the experienced
(c)
interviewers will be above to get the information from the

respondent fairly and accurately. The main disadvantage of
this method of interviewing is that it takes time, and the
respondents may not cooperate. Another disadvantage is that
coding of open-ended questions may pose a challenge.
142 For example: When a researcher asks the respondent “Tell me
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Notes something about your experience in this hospital”. The answer
___________________ may be “Well, the nurses are slow to attend and the doctor is
rude. ‘Slow’ and ‘rude’ are different qualities needing separate
___________________
coding. This type of interviewing is extremely helpful in
___________________
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exploratory studies.
___________________
Table 13.2: Characteristics of Different Type of Questionnaires
___________________
Types Characteristics
___________________ Structured – Disguised The same question is posed to each respondent.
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Administering the questionnaire and post-
___________________
administration work is simple i.e. coding
tabulating, etc. is easy.
___________________
This type of questionnaire is least used in market
___________________ research.
Respondents’ bias is minimized.
___________________
Unstructured – This type of questionnaire is very commonly used
Disguised for focus group discussions.
This is difficult to analyse, code etc,
No fixed set of questions.
The inner self (why) of an individual is researched.
E.g.: Motivation Research.
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Unstructured – No fixed questions.
Undisguised Suitable for conducting depth interview.
Subject-matter can be questioned in great detail.
Coding, tabulating etc. are difficult not a very
frequently used method.
Structured – Fixed set of questions to every respondent.
Undisguised Inappropriate when researcher wants to probe
deeper.
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Easy to administer coding, tabulating is easy.

Due to restructuring and undisguised nature of the
questionnaire, there is no possibility of the
respondent misunderstanding the question. This is
the most commonly used method.
Step 3: Type of Questions

Open-ended Questions
These are questions where respondents are free to answer in their
own words.
Example: “What factor do you consider while buying a suit?” If
multiple choices are given, it could be colour, price, style, brand,
(c)
etc., but some respondents may mention attributes which may not
occur to the researcher.
Therefore, open-ended questions are useful in exploratory
research, where all possible alternatives are explored. The greatest
disadvantage of open-ended questions is that the researcher has to
note down the answer of the respondents verbatim. Therefore, 143
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there is a likelihood of the researcher failing to record some Notes
information. ___________________
Another problem with open-ended question is that the respondents ___________________
may not use the same frame of reference.
E
___________________
Example: “What is the most important attribute in a job?”
___________________
Ans.: Pay ___________________
The respondent may have meant “basic pay” but interviewer may ___________________
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think that the respondent is talking about “total pay including
___________________
dearness allowance and incentive”. Since both of them refer to pay,
it is impossible to separate two different frames. ___________________
___________________
Dichotomous Question
___________________
These questions have only two answers, ‘Yes’ or ‘no’, ‘true’ or ‘false’
‘use’ or ‘don’t use’.
Do you use toothpaste? Yes ……….. No …………
There is no third answer. However sometimes, there can be a third
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answer: Example: “Do you like to watch movies?”
Ans.: Neither like nor dislike.
Dichotomous questions are most convenient and easy to answer. A
major disadvantage of dichotomous question is that it limits the
respondent’s response. This may lead to measurement error.
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Close-ended Questions
There are two basic formats in this type:
z Make one or more choices among the alternatives.
Rate the alternatives.
Choice among Alternatives

Which of the following words or phrases best describes the kind of
person you feel would be most likely to use this product, based on
what you have seen in the commercial?
(c)
(a) Young ………… old …………….

Single ………… Married ………..
Modern ………… Old fashioned ……………...
144 (b) Rating Scale
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Notes
z Please tell us your overall reaction to this commercial.
___________________
A great commercial; would like to see again.
___________________
Just so-so, like other commercials.
___________________
E
Another bad commercial.
___________________
___________________
Pretty good commercial.
___________________ z Based on what you saw in the commercial, how interested do
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you feel, while you would be buying the products.
___________________
Definitely
___________________
___________________
Probably I would buy
___________________ I may or may not buy

Probably I would not buy
Definitely I would not buy.
Closed-ended questionnaires are easy to answer. It requires less
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effort on the part of the interviewer. Tabulation and analysis is
easier. There are lesser errors, since the same questions are asked
to everyone. The time taken to respond is lesser. We can compare
the answer of one respondent to another respondent.
One basic criticism of closed-ended questionnaires is that middle
alternatives are not included in this, such as “don’t know”. This
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will force the respondents to choose among the given alternative.
Step 4: Wordings of Questions

Wordings of particular questions could have a large impact on how
the respondent interprets them. Even a small shift in the wording
could alter the respondent’s answer.
Example 1: “Don’t you think that Brazil played poorly in the FIFA
cup?” The answer will be ‘yes’. Many of them do not have idea
about the game. They will also most likely say ‘yes’. If the question
is worded in a slightly different manner, the response will be
different.
(c)
Example 2: “Do you think that, Brazil played poorly in the FIFA
cup?” This is a straightforward question. The answer could be ‘yes’,
‘no’ or ‘don’t know’ depending on the knowledge the respondents
have about the game.
Example 3: “Do you think anything should be done to make it 145
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easier for people to pay their phone bill, electricity bill and water Notes
bill under one roof”? ___________________
Example 4: “Don’t you think something might be done to make it ___________________
easier for people to pay their phone bill, electricity bill, water bill
E
___________________
under one roof”?
___________________
A change of just one word as above can generate different
___________________
responses by respondents.
___________________
Guidelines towards the use of correct wording:
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___________________
Is the vocabulary simple and familiar to the respondents?
___________________
Example: Instead of using the word ‘reasonably’, ‘usually’,
___________________
‘occasionally’, ‘generally’, ‘on the whole’.
___________________
Example: “How often do you go to a movie?” “Often, may be once a
week, once a month, once in two months or even more.”
Avoid Double-Barrelled Questions

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These are questions, in which the respondent can agree with one
part of the question, but not agree with the other or cannot answer
without making a particular assumption.
Example 1: “Do you feel that firms today are employee-oriented and
customer-oriented?” There are two separate issues here – [yes] [no]
Example 2: “Are you happy with the price and quality of branded
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shampoo?” [yes] [no]
Avoid Leading and Loading Questions

1. Leading Questions: A leading question is one that suggests
the answer to the respondent. The question itself will influence
the answer, when respondents get an idea that the data is
being collected by a company. The respondents have a
tendency to respond positively.
Example 1: “How do you like the programme on ‘Radio
Mirchy’? The answer is likely to be ‘yes’. The unbiased way of
(c)
asking is “which is your favourite F.M. Radio station? The

answer could be any one of the four stations namely 1. Radio
City 2. Mirchy 3. Rainbow 4. Radio-One.
146
Example 2: Do you think that offshore drilling for oil is
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Notes
environmentally unsound? The most probable response is ‘yes’.
___________________
The same question can be modified to eliminate the leading
___________________ factor.
___________________ What is your feeling about the environmental impact of
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___________________ offshore drilling for oil? Give choices as follows:
___________________ (a) Offshore drilling is environmentally sound.

___________________ (b) Offshore drilling is environmentally unsound.
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___________________ (c) No opinion.
___________________ 2. Loaded Questions: A leading question is also known as a
___________________ loaded question. In a loaded question, special emphasis is
given to a word or a phrase, which acts as a lead to
___________________
respondent.
Example: “Do you own a Kelvinator refrigerator.” A better
question would be “what brand of refrigerator do you own?”
“Don’t you think the civic body is ‘incompetent’?” Here the
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word incompetent is ‘loaded’.
Are the Questions Confusing? If there is a question unclear
or is confusing, then the respondent becomes more biased
rather that getting enlightened. Example: “Do you think
that the government publications are distributed
effectively?” This is not the correct way, since respondent
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does not know what the meaning of the word effective

distribution is. This is confusing. The correct way of
asking questions is “Do you think that the government
publications are readily available when you want to buy?”
Example: “Do you think whether value price equation is
attractive?” Here, respondents may not know the meaning
of value price equation.
Applicability: “Is the question applicable to all
respondents?” Respondents may try to answer a question
even though they don’t qualify to do so or may lack from
any meaningful opinion.
(c)
Examples: 1. “What is your present education level?”

(2) “Where are you working?” (assuming he is employed)
(3) “From which bank have you taken a housing loan?”
(assuming he has taken a loan).
Avoid Implicit Assumptions 147
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Notes
An implicit alternative is one that is not expressed in the options.
Consider following two questions: ___________________
Would you like to have a job, if available? ___________________
E
___________________
Would you prefer to have a job, or do you prefer to do just domestic
work? ___________________
Even though, we may say that these two questions look similar, ___________________
they vary widely. The difference is that Q-2 makes explicit the ___________________
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alternative implied in Q-1.
___________________
Split Ballot Technique ___________________
This is a procedure used wherein (1) The question is split into two ___________________
halves and (2) Different sequencing of questions is administered to ___________________

each half. There are occasions when a single version of questions
may not derive the correct answer and the choice is not obvious to
the respondent.
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Example: “Why do you use Ayurvedic soap”? One respondent might
say “Ayurvedic soap is better for skin care”. Another may say
“Because the dermatologist has recommended”. A third might say
“It is a soap used by my entire family for several years”. The first
respondent answers the reason for using it at present. The second
respondent answers how he started using. The third respondent
replies “the family tradition for using”. As can be seen, different
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reference frames are used. The question may be balanced and

rephrased.
Step 5: Sequence and Layout

Some guidelines for sequencing the questionnaire are as follows:
Divide the questionnaire into three parts:
(1) Basic information (2) Classification (3) Identification
information. Items such as age, sex, income, education, etc., are
questioned in the classification section. The identification part
involves body of the questionnaire. Always move from general to
(c)
specific questions on the topic. This is known as funnel sequence.

Sequencing of questions is illustrated below:
(1) Which TV shows do you watch?
Sports ................... News ...................
148 (2) Which among the following are you most interested in?
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Notes
Sports ................... News ...................
___________________
Music ................... Cartoon ...................
___________________
(3) Which show did you watch last week?
___________________
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World Cup Football ...................
___________________
___________________
Bournvita Quiz Contest ...................
___________________ War News in the Middle East ...................
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___________________ Tom and Jerry cartoon show ...................
___________________ The above three questions follow a funnel sequence. If we reverse

___________________
the order of question and ask “which show was watched last
week”?, the answer may be biased. This example shows the
___________________
importance of sequencing.
Step 6: Pre-testing of Questionnaire

Pre-testing of a questionnaire is done to detect any flaws that
might be present. For example, the word used by researcher must
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convey the same meaning to the respondents. Are instructions
clear skip questions clear? One of the prime conditions for pre-
testing is that the sample chosen for pre-testing should be similar
to the respondents who are ultimately going to participate. Just
because a few chosen respondents fill in all the questions going
does not mean that the questionnaire is sound.
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Step 7: Revise and preparation of final questionnaire

Final questionnaire may be prepared after pre-testing the
questionnaire with the small group of respondents. Questionnaire
should be revised for the following:
1. To correct the spellings.
2. To place the questions in proper order to avoid the contextual
bias.
3. To remove the words which are not familiar to respondents.
4. To add or remove questions arise in the process of pre-test, if
(c)
any.
5. To purge the words with double meaning, etc.
149
Check Your Progress
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Notes
Fill in the blanks:
___________________
1. _____________ of a questionnaire is done to detect any
___________________
flaws that might be present.
E
___________________
2. A _____________ question is also known as a loaded
___________________
question.
___________________
Summary ___________________
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Primary data is important for all areas of research because it is ___________________
unvarnished information about the results of an experiment or ___________________

observation. It is like the eyewitness testimony at a trial. No one ___________________
has tarnished it or spun it by adding their own opinion or bias so it
___________________
can form the basis of objective conclusions. Primary data is the
specific information collected by the person who is doing the
research. It can be obtained through clinical trials, case studies,
true experiments and randomized controlled studies. This
E-
information can be analyzed by other experts who may decide to
test the validity of the data by repeating the same experiments.
Lesson End Activity

Discuss the procedure in Split Ballot Technique.
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Keywords
Primary Data: It is one which is collected by the investigator
himself for the purpose of a specific inquiry or study.
Personal Interviews: An interview is called personal when the
Interviewer asks the questions face-to-face with the Interviewee.
Telephone Surveys: It is a process of collecting information from
sample respondents by calling them over telephone.
Email Questionnaire: It is a new type of questionnaire system
that revolutionizes the way on-line questionnaires are conducted.
(c)
Mail Questionnaire: It is a paper questionnaire, which is sent to

the researcher.
150 Questionnaire: A questionnaire is a research instrument
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Notes consisting of a series of questions and other prompts for the
___________________ purpose of gathering information from respondents.
___________________
___________________
E
___________________ 1. “Primary data can take a quantitative or statistical form.”
Elucidate.
___________________
___________________ 2. Discuss observation method.
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___________________ 3. Highlight the purposes of survey.
___________________ 4. Discuss various survey methods.
___________________ 5. What is Mail Questionnaire?
___________________
6. Describe Importance and Limitations of Questionnaire in MR.
7. What is the Process of Questionnaire Designing?
Further Readings
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Books
India.

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Pvt. Ltd.
Web Readings
http://revisionworld.co.uk/a2-level-level-
revision/sociology/research-methods/primary-data-collection/what-
(c)
primary-data
151
http://wiki.answers.com/Q/What_are_the_methods_for_collecting_p
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Notes
rimary_data
___________________
http://socialscience.stow.ac.uk/psychology/psych_A/george/primary_
secondary.htm ___________________
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___________________
www.unescap.org/tid/projects/artnetbk05_surveydesign.pdf
___________________
___________________
___________________
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___________________
___________________
___________________
___________________
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(c)
(c)
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ES
UNIT 14: Secondary Data Collection
Unit 14
153
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Notes
Activity
Secondary Data Collection

___________________
Write short note on data
collection procedure for
___________________
primary data.
E
___________________
Objectives
___________________
topics: ___________________
\ Secondary Data ___________________
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\ Methods and Techniques of Collection of Secondary Data ___________________
\ Acculturation
___________________
\ Evaluation of Secondary Data
___________________
Introduction ___________________
Secondary data is the data that have been already collected by and
readily available from other sources. Such data are cheaper and
more quickly obtainable than the primary data and also may be
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available when primary data can not be obtained at all.
Secondary Data
Secondary data are statistics that already exist. They have been
gathered not for immediate use. This may be described as “those
data that have been compiled by some agency other than the user
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or researcher in question”.
Advantages of Secondary Data

Following are the advantages of secondary data:
z It is economical. It saves efforts and expenses.
z It is time saving.
z It helps to make primary data collection more specific since
with the help of secondary data, we are able to make out what
are the gaps and deficiencies and what additional information
needs to be collected.
(c)
z It helps to improve the understanding of the problem.

z It provides a basis for comparison for the data that is collected
by the researcher.
154
Disadvantages of Secondary Data
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Notes
Following are the disadvantages of secondary data:
___________________
1. Secondary data is something that seldom fits in the framework
___________________
of the marketing research factors. Reasons for its non-fitting
___________________ are:-
E
___________________ Unit of secondary data collection-Suppose you want
___________________ information on disposable income, but the data is
available on gross income. The information may not be
___________________
same as we require.
UP
___________________
Class Boundaries may be different when units are same.
___________________
Table 14.1: Class Boundaries
___________________
Before 5 Years After 5 Years
___________________
2500-5000 5000-6000
5001-7500 6001-7000
7500-10000 7001-10000
Thus the data collected earlier is of no use to you.

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2. Accuracy of secondary data is not known.
3. Data may be outdated.
Evaluation of Secondary Data

Because of the above mentioned disadvantages of secondary data,
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we will lead to evaluation of secondary data. Evaluation means the

following four requirements must be satisfied:
1. Availability: It has to be seen that the kind of data you want
is available or not. If it is not available then you have to go for
primary data.
2. Relevance: It should be meeting the requirements of the
problem. For this we have two criterions:-
Units of measurement should be the same.
Concepts used must be same and currency of data should
not be outdated.
(c)
3. Accuracy: In order to find how accurate the data is, the

following points must be considered: -
Specification and methodology used;
Margin of error should be examined; 155
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Notes
The dependability of the source must be seen. Activity
___________________
Write short note on major
4. Sufficiency: Adequate data should be available. steps in conducting a survey.
___________________
Robert W Joselyn has classified the above discussion into eight
E
___________________
steps. These eight steps are sub classified into three categories. He
has given a detailed procedure for evaluating secondary data. ___________________
z Applicability of research objective. ___________________
z Cost of acquisition. ___________________
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___________________
z Accuracy of data.
___________________
Classification of Secondary Data ___________________
Secondary data can be classified as: ___________________
z Internal secondary data

z External secondary data
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Internal Secondary Data
Internal secondary data is a part of the company’s record, for
which research is already conducted. Internal data are those that
are found within the organisation. Example: Sales in units, credit
outstanding, call reports of sales persons, daily production report,
monthly collection report, etc.
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External Secondary Data

The data collected by the researcher from outside the company.
This can be divided into four parts:
z Census data
z Individual project report being published
z Data collected for sale on a commercial basis called syndicated
data
z Miscellaneous data
(c)
z Census data is the most important data among the sources of

data. The following are some of the data that can obtain by
census records.
z Census of the wholesale trade
z Census of the retail trade
156 z Population Census
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Notes
Activity z Census of manufacturing industries
___________________
Discuss secondary data
collection.
z Individual project report being published
___________________
z Encyclopaedia of business information sources
___________________
E
z Product finder
___________________
___________________
z Thomas registers, etc.
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___________________ 1. ______________ data are statistics that already exist.
___________________
2. ______________ are those that are found within the
___________________ organisation.
3. ______________ is the data collected by the researcher
from outside the company.
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Methods and Techniques of Collection of Secondary
Data
These techniques involve data collection on a commercial basis,
i.e., data collected by this method is sold to interested clients on
payment. Examples of such organisations are AC. Nielson, ORG
Marg, IMRB, etc. These organizations provide NRS called National
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Readership Survey to the sponsors and advertising agencies. They

also provide business relationship survey called BRS which
estimates the following:
1. Rating
2. Profile of the company, etc.
These people also provide TRP rating namely television rating
points on a regular basis. This provides:
1. Viewership figures
2. Duplication between programmes, etc. Some of the interesting
(c)
studies made by IMRB are Study of Nations Attitude and

Awareness Programme (SNAP). In this study, the various
groups of India’s population and their lifestyles, attitudes of
Indian housewives were detailed.
There is also a study called FSRP which covers children in the age 157
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group of 10-19 years. Beside their demographics and Notes
psychographics, the study covers areas such as: ___________________
z Children as decision-makers ___________________
Role models of Indian children
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z ___________________
z Pocket money and its usage ___________________
___________________
z Media reviews
___________________
Favoured personalities and characteristics
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z
___________________
z Brand awareness and advertising recall.
___________________
Syndicated sources consist of market research firms offering
___________________
syndicated services. These market research organisations collect
and update information on a continuous basis. Since data is ___________________
syndicated, its cost is spread over a number of client organisations

and hence is cheaper. For example, a client firm can give certain
specific question to be included in the questionnaire, which is used
routinely to collect syndicated data. The client will have to pay
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extra charges for these.
The data generated from additional questions and analysis will be

revealed only to the firms submitting the questions. Therefore we
can say that the customization of secondary data is possible. Some
areas of syndicated services are newspapers, periodical readership,
popularity of TV channels, etc. Data from syndicated sources are
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available on a weekly or monthly basis.
Classification of Syndicated Data

Syndicated data may be classified as:
z Consumer purchase data
z Retailer and wholesaler data
z Advertising data.
Most of these data collection methods as mentioned above are also
known as syndicated data. Syndicated data can be classified into:
(c)
Consumer Purchase Data or Panel Type Data

This is one type of syndicated data. In this method there are
consumer panels. Members of this panel will be representative of
the entire population. Panel members keep diaries in which they
158 record all purchases made by them. Products purchased range
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Notes from packaged food to personal care products. Members submit the
___________________ dairies every month to the organisations for which they are paid.
This panel data can be used to find out the sales of the product.
___________________
These panel data also provides an insight into repeat purchases,
___________________
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effect of free samples, coupon redemption, etc.
___________________
The consumer panel data also provides profile of the target
___________________ audience. Nowadays, diaries are replaced by hand-held scanners.
___________________ Panels also provide data on consumer buying habits on petrol, auto
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parts, sports goods, etc.
___________________
___________________
Advantages
___________________ z Use of scanner tied to the central computer helps the panel
members to record their purchases early (almost immediately).
___________________
z It also provides reliability and speed.
z Panel can consist only of senior citizens or only children.
Limitations
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z Low-income groups are not represented.
z Some people do not want to take the trouble of keeping records
of their purchases. Therefore, relevant data is not available.
We also have the Consumer Mail Panel (CMP). This consists of
members who are willing to answer mail questionnaires. A large
number of such households are kept on the panel. This serves as a
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universe through which panels are selected.
Retail and Wholesale Data

Marketing research is done in a retail store. These are
organisations that provide continuous data on grocery products.
The procedure does not involve questioning people and also does
not rely on their memory. This requires cooperation from the
retailer to allow auditing to be carried out. Generally, retail audit
involves counting of stocks between two consecutive visits. It
involves inspection of goods delivered between visits. If the stock of
any product in the shop is accurately counted during both the
(c)
visits and data on deliveries are accurately taken from the records,
the collection of sales of a product over that period can be
determined accurately as follows:
Initial stock + Deliveries between successive visits – Second time 159
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stock = Sales Notes
If this information is obtained from different shops from the ___________________

representative sample of shops, then the accurate estimates of ___________________
sales of the product can be made. To do this, some shops can be
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___________________
taken as a “Panel of shops” representing the universe.
___________________
Advantages
___________________
z It provides information between audits on consumer purchase
___________________
over the counter in specific units. For example, KGs, bottles,
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No’s, etc. ___________________
z It provides data on shop purchases i.e., the purchases made by ___________________
the retailer between audits. ___________________
z The manufacturer comes to know how competitor is doing. ___________________
z It is a very reliable method.

Disadvantages
z Experience is needed by the market researcher.
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z Cooperation is required from the retail shop.
z It is time consuming.
Advertising Data
Since a large amount of money is being spent on advertising, data
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needs to be collected on advertising. One way of recording is by

using passive meter. This is attached to a TV set records when the
set was ‘On’. It will record “How long a channel is viewed”. By this
method, data regarding audience interest in a channel can be
ascertained. One thing to be noticed from the above is that it only
tells you that someone is viewing television at home. But it does
not tell you “who is viewing at home”. To find out “who is viewing”
a new instrument called ‘People’s Meter’ is introduced. This is a
remote-controlled instrument buttons. Each household is given a
specific button. When that button is pressed, it signals the control
box that a specific person is viewing. This information is recorded
(c)
electronically and sent to a computer that stores this information

which is subsequently analysed.
160
Miscellaneous Secondary Data
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Notes
This data includes trade associations such as FICCI, CEI,
___________________ Institution of Engineers, Chamber of Commerce, libraries such as
___________________ public library, university libraries, etc., literature, state and
central government publications, private sources such as All India
___________________
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Management Association (AIMA), Financial Express and financial
___________________
dailies, world bodies and international organizations such as IMF,
___________________ ADB, etc.
___________________
Advantages of Secondary Data
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___________________
Following are the advantages of secondary data:
___________________
z It is economical, without the need to hire field staff.
___________________
z It saves time; (normally 2 to 3 months). If data is available on
___________________
hand it can be tabulated in minutes.
z They provide information, which retailers may not be willing
to reveal to researcher.
No training is required to collect this data, unlike primary
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z
data.
Disadvantages of Secondary Data

Because secondary data has been collected for some other projects,
it may not fit in with the problem that is being defined. In some
cases, the feed is so poor that the data becomes completely
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inappropriate. It may be ill-suited because of the following three

reasons:
i. Unit of measurement
ii. Definition of a class
iii. Accuracy
iv. Recency
Unit of Measurement
It is common for secondary data to be expressed in units.
(c)
Example: Size of the retail establishments, for instance, can be

expressed in terms of gross sales, profits, square feet area and
number of employees. Consumer incomes can be expressed in
variables the individual, family, household etc. Secondary data
available may not fit in easily.
Definition of a Class 161
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Notes
Assume that the class intervals are quite different from those
which are needed. ___________________
Example: Data available with respect to age group is as follows: ___________________
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___________________
< 18 year
___________________
18 – 24 years
___________________
25 – 34 years
___________________
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35 – 44 years
___________________
Suppose the company needs a classification less than 20, 20–30
___________________
and 30–40, the above classification of secondary data cannot be
used. ___________________
Problem of Accuracy ___________________
The accuracy of secondary data available is highly questionable. A

number of errors are possible in the collection and analysis of the
data. Accuracy of secondary data depends upon:
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1. Who has collected the data?
2. How is the data collected?
1. Who has collected the data? The reliability of the source
determines the accuracy of the data. Assume that a publisher
of a private periodical conducts a survey of his readers. The
main aim of the survey is to find out the opinion of readers
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about advertisements appearing in it. This survey is done by

the publisher in the hope that other firms will buy this data
before inserting advertisements.
Assume that a professional MR agency has conducted a
similar survey and has sold its syndicated data on many
periodicals.
If you are an individual who wants information on a particular
periodical you buy the data from MR agency rather from the
periodical’s publisher. The reason for this is trust of the MR
agency. The reasons for trusting the MR agency are as follows:
(c)
(a) Being an independent agency there is no bias. The MR

agency is likely to provide an unbiased data.
(b) The data quality of MR agency will be good since they are
professionals.
162 2. How the data collected?
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Notes
(a) What instruments were used?
___________________
(b) What type of sampling was done?
___________________
(c) How large was the sample?
___________________
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(d) What was the time period of data collection? Example:
___________________
days of the week, time of the day.
___________________
___________________ Recency
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___________________ This pertains to “how old was the information?” If it is five years
___________________
old, it may be useless. Therefore, the publication lag is a problem.

1. In ________________ study, the various groups of India’s
population and their lifestyles, attitudes of Indian
housewives were detailed.
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2. ________________ sources consist of market research
firms offering syndicated services.
3. In ________________ method there are consumer panels.
Evaluation of Secondary Data

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Before evaluating the secondary data, 5 questions must be

answered.
i. What is the purpose of the study?
ii. Who collected the information?
iii. What information was collected?
iv. How was the information collected?
v. How consistent is the information with other sources?
z What is the purpose of the study? The reason “why” the
data is collected must be clearly identified.
(c)
z Who collected the information? The competency of the

person or the organization that collects the information is
important. This is because, organizations differ in terms of the
resources they command and quality of work done. The
competencies of the organization can be found out:
By examining the procedure and methods adopted for 163
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collecting the data. Notes
By asking others who have experience with this ___________________

organization, to find out the reputation and credibility. By ___________________
asking other clients of the firm, whether they were
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___________________
satisfied by the work of the organization.
___________________
z What information was collected? Many times companies
___________________
claim that they have collected the data on a specific subject but
what is required may be quite different. The user of the ___________________
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information must identify “what exactly was collected”. ___________________
z How was the information collected? What is secondary ___________________

data for someone is the primary data for someone else?
___________________
Therefore, researchers must be aware of the methods used to
___________________
obtain information reported in secondary source, i.e. sample
size, nature of the sample, response rate. Validity of the
information makes difference in the quality of secondary data.
Normally, reputed organizations not only provide secondary
data but also provide the information on methods of data
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collection.
z Consistency of information: Different organizations provide
the same secondary data. These need to be compared. If two or
more independent organizations, report the same data, then
the confidence regarding the validity and the reliability of data
would be high.
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Check Your Progress

Fill in the blanks:
1. The _______________ of the person or the organization
that collects the information is important.
2. The _______________ of the information must identify
“what exactly was collected”.
Summary
(c)
Secondary data are statistics that already exists. These may not be
readily used because these data are collected for some other
purpose. There are 2 types of secondary data (1) Internal, and (2)
External secondary data. Census is the most important among
secondary data. Syndicated data is an important form of secondary
164 data which may be classified into (a) Consumer purchase data (b)
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Notes Retailer and wholesaler data (c) Advertising data. Each has
___________________ advantages and disadvantages. Secondary data has its own
advantages and disadvantages. Before evaluating secondary data
___________________
researcher should look for its source, reliability and consistency.
___________________
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___________________
Lesson End Activity
___________________
Study the demand estimation process for an existing product in
___________________ any organisation that you are familiar with
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___________________
1. What were the sources of secondary data utilized?
___________________
2. What specific use of secondary data was made in the study?
___________________
___________________ Keywords
Secondary Data: Secondary data is the data that have been
already collected by and readily available from other sources.
Internal Secondary Data: Internal secondary data is a part of
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the company’s record, for which research is already conducted.
External Secondary Data: The data collected by the researcher
from outside the company.

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1. What is meant by secondary data?

2. Differentiate between internal and external secondary data.
3. What are the sources of secondary data?
4. What are the types of secondary data?
5. What are the methods or techniques of collection of secondary
data?
6. What are the classifications of syndicated data?
7. What are the advantages and limitations of syndicated data?
8. What are the advantages and disadvantages of secondary
(c)
data?
9. Discuss the sources of secondary data for the study on
“consumer purchasing a white good”.
10. How is secondary data evaluated?
Further Readings 165
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Notes
Books ___________________
___________________
India.
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___________________
___________________
___________________
Techniques. New Age International. ___________________
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Kumar, Rajendar (2011). Research Methodology. APH Publishing. ___________________
Panneerselvam, R. (2004). Research Methodology. PHI Learning ___________________

Pvt. Ltd. ___________________
___________________
Web Readings
http://www.egyankosh.ac.in/bitstream/123456789/35539/3/Unit-
4.pdf
http://sociology.about.com/od/Research-Methods/a/Secondary-Data-
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Analysis.htm
http://www.scribd.com/doc/34513730/11/COLLECTION-OF-
SECONDARY-DATA
http://www.managementstudyguide.com/secondary_data.htm
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(c)
(c)
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Unit 15
167
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Notes
Case Studies
___________________
___________________
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___________________
Objectives
___________________
___________________
Case Study 1: Moonlight Restaurant
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___________________
Moonlight restaurant was located in a small town of Karnataka.
This town is well-known for its educational institutions, both in ___________________
engineering and medical science. A large population consists of
___________________
students from all over India. The restaurant owner is a qualified
hotel management graduate, and hence believed in running the ___________________
hotel professionally. This restaurant opened only for dinner and
snacks and hence was kept open from 6 p.m. till well past
midnight. Prices of items were reasonable and sales revenue grew
satisfactorily. The ambiance was good and hence attracted crowds
during late evenings. The main concern was that there was news
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in the air that two or three fashionable restaurants are going to
open within one year, close to Moonlight restaurant. This was a
definite threat to Moonlight’s owner Mr. Bala. He wanted to
conduct an opinion survey of his current customers.
Mr. Bala got a questionnaire designed, which was to be handed
over to customers who visited the hotel. A total of 1,000
questionnaires, over a period of time were distributed to all
customers. If a family consisted of 4-5 persons, the head of the
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family was asked to fill up. An incentive of 5% off from the bill
was offered to fill the questionnaire.
A record of “how many answered all questions”, and “how many
filled partially” was kept, along with the total food bill of these
1,000 respondents.
The questionnaire is as follows:
1. How did you come to know about Moonlight restaurant?
a. From newspaper advertisement
b. Friends and relatives
c. From business people
d. From TV clippings
e. Passing this way and noticed
(c)
f. From College Faculty

g. Other sources
2. How far are you located from here?
a. Less than 1 km. b. 1 to 3 km.
c. More than 3 km.
Contd….
168 3. Before this visit, how many times have you visited this
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Notes restaurant?
a. 1 to 2 times b. 3 to 4 times
___________________
c. 5 to 7 times d. Never come here before
___________________
4. Do you intended to come again after today?
___________________
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Yes ______ No ______ Can’t say ______
___________________ 5. Rank the following – In Moonlight restaurant, which attribute
according to you is the best? Indicate your preference.
___________________
a. Quality of food b. Price charged
___________________
c. Ambiance d. Variety of food
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___________________ e. Service of staff
___________________ 6. Rank the following – In case you have to select a restaurant in
general, which attribute would you prefer (rank the
___________________ alternatives)
___________________ a. Quality of food b. Service of staff
c. Variety of food d. Ambiance
e. Price charged
7. Sex
_____ Male _____ Female
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8. Age is
_____ below 20 ______ 21 – 25 ______ 26 – 30 _____ 31 – 40
9. Occupation _______
________ salaried, ________ Business, _______ Govt Servant
10. Your educational level
______ High School, _______ Under graduate,
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______ Degree graduate _______ Doctorate

_______ Masters Degree
Questions:
1. For each of the questions in the questionnaire, what level of
scale measurement would you use for the data collected (i.e.
Normal, ordinal, interval, ratio)?
2. Which questions would you use to analyse the following?
(a) How much customer loyalty does Moonlight restaurant
enjoy?
(b) Does customer perception of Moonlight restaurant vary,
in terms of whether the customers are?
(c)
i. Male or female
ii. Perception of locals vs those who come a distance.
3. Are customers’ perceptions about Moonlight restaurant
relative to their impressions about other restaurants? Do they
have a bearing and how much they spend at the restaurant?
Case Study 2: Tomato Growers Dilemma 169
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Notes
India is a country comprising over 6 lakh villages and 741 million
___________________
people dwelling in rural areas. The main occupation of Indians is
agriculture. More than half of the Indians depend on agriculture. ___________________
During the early 80’s, Indian farmers, especially those who were
growing tomatoes on a large scale encountered a major problem in
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___________________
the area of harvesting. Tomato is a labour intensive crop and
large scale tomato growers were depending on labourers for ___________________
harvesting and transporting it to the market. Tomato is a ___________________
perishable product, so tomato growers need large number of
labourers at a time. Availability of labour was a problem. ___________________
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To aid the farmers, harvesting machines were introduced into the ___________________
market. Large scale growers of tomatoes were very happy because
the machine was introduced to overcome the problem of non- ___________________
availability of labourers. Their happiness was short lived, because
farmers found that there was a massive wastage of tomatoes ___________________
while harvesting in machines. ___________________
It was felt that, the wastage was due to the layout of plantation
and the distance between the rows in planting. So farmers were
asked to follow the guidelines given by concerned authorities (i.e.
agriculture department) in plantation to minimise the wastage
during the harvesting time. Farmers followed the guidelines given
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by agricultural department. Even then they could not decrease
the wastage of tomatoes.
Subsequently, joint study was conducted by agriculture
department and farmers to identify the problem. This time, they
felt that wastage was due to improper handling in the operation
of machine. To overcome this, machine operators were trained to
handle the machine. Despite this, the wastage did not decrease.
The government was quite serious and asked the authorities to
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take appropriate steps to solve the problem at the earliest. The

investigation team defined the problem differently. They stated
that the harvesting machine was the problem. Based on this
statement, the machine was altered and tested. The problem
could still not be solved. It was now obvious that the mistake was
in problem identification. As a management student, could you
analyse and answer the following issues.
Questions:
1. Why was there a failure in problem definition?
2. Explain the systematic method of identifying and defining the
problem.
3. What could be the problem in the above case?
4. What are the possible solutions to the problem of tomato
(c)
growers?
(c)
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UNIT 16: Data Measurement
171
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Notes
___________________
___________________
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___________________
___________________
___________________
___________________
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___________________
___________________
___________________
___________________
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BLOCK-IV
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(c)
172
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Notes
UNIT 16: DATA MEASUREMENT
___________________ UNIT 18: OBSERVATION METHODS
___________________
z Concept of Measurement z Meaning of Observation
___________________
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z Types of Scale/Levels z Survey Method/Research
___________________
z Difficulty of Measurement z Schedule
___________________
z Criteria for Good Measurement
___________________ UNIT 19: ANALYSIS OF VARIANCE (ANOVA)
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UNIT 17: HYPOTHESIS TESTING z Introduction
___________________
z Introduction z Meaning of Analysis of Variance
___________________
z Hypothesis: Meaning and Definition z One-way ANOVA
___________________
z Sources of Hypothesis z Two-way ANOVA
___________________
z Types of Hypothesis
UNIT 20: CASE STUDY
z Hypothesis Testing
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(c)
Unit 16
173
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Notes
Activity
Data Measurement
___________________
What is measurement?
___________________
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___________________
Objectives
___________________
topics: ___________________
\ Concept of Measurement ___________________
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\ Types of scale/levels ___________________
\ Difficulty of Measurement
___________________
\ Criteria for good Measurement
___________________
Introduction ___________________
In research, qualitative and subjective problems like group values

and attitudes are frequently put to quantitative and objective
measurement to establish a scientific status of the study.
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Therefore, much attention has been given/placed on developing the
measuring instruments commonly known as 'Scales'. Attitude is a
degree of positive or negative effect associated with some
psychological object. Attitudes are subjective and personal.
Attitude influences the behaviour. Purchase decisions are based
upon the attitudes. The attitudes can change over time.
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Concept of Measurement
Measurement stands for the assignment of numbers to the
characteristics of persons, objects or events on the basis of certain
principles Measurement is the process of assigning numbers or
scores to attributes of people or objects. It is the process of
describing some property of a phenomenon of interest by assigning
numbers in a reliable and valid way. Measurement assigns a
numeric value to represent the magnitude of a quantity of a given
dimension. It is at the heart of analysis, testing and discovery. The
British scientist Lord Kelvin once said, “When you can measure
(c)
what you are speaking about and express it in numbers you know
something about it; but when you cannot express it in numbers
your knowledge is of a meagre and unsatisfactory kind.”
174
Functions
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Notes
Normally, when one hears the term measurement, they may think
___________________ in terms of measuring the length of something (e.g., the length of a
___________________ piece of wood) or measuring a quantity of something (i.e. a cup of
flour).This represents a limited use of the term measurement. In
___________________
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statistics, the term measurement is used more broadly and is more
___________________
appropriately termed scales of measurement. Scales of
___________________ measurement refer to ways in which variables/numbers are
___________________ defined and categorized. Each scale of measurement has certain
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properties which in turn determine the appropriateness for use of
___________________
certain statistical analyses. Measurement is defined as assignment
___________________ of numbers to the objects, items, or events as per guidelines or
___________________ rules or parameters. Measuring characteristics actually means the
___________________
process of mapping of objects/items onto a subset of real numbers
i.e., measuring the association of numbers assigned and
characteristics of the objects.
In research, measurement is related to qualitative aspect, although
physical phenomenon can be quantified by using certain standard
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units of measurement, yardstick, and parameters but when it
comes to measurement of judgmental or qualitative aspect of socio-
economical, political, physiological, and psychological and the other
related aspects that may be abstract in nature, it becomes difficult
to quantify and measure such characteristics.
Mapping Rules
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In measuring, one devises some mapping rule and then translates

the observation of the property indicates using this rule. For each
concept or construct, several types of measurement are possible; the
appropriate choice depends on what one assumes about the mapping
rules. Each one has its own set of underlying assumptions about
how the numerical symbols correspond to real- world observation.
Mapping rules have four characteristics:
1. Classification: Numbers are used to group or sort responses.
No order exits.
(c)
2. Order: Numbers are ordered. One number is greater than,

lesser than, or equal to another number.
3. Distance: differences between numbers are ordered. The
difference between any pair of numbers is greater than, lesser
than, or equal to the difference between any other pair of 175
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numbers. Notes
Activity
4. Origin: The number series has a unique origin indicated by ___________________
What are the various types of
the number zero. This is absolute and meaningful zero point. scale / levels?
___________________
Combinations of these characteristics of classification, order,
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___________________
distance and origin provide four widely used classifications of
___________________
measurement scales. 1. Nominal, 2. Ordinal, 3. Interval and 4. Ratio
___________________
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1. ________________ scale may tell us "How far the objects ___________________

are apart with respect to an attribute?"
___________________
2. ________________ scale is used to assess attitude of the ___________________
respondents group regarding any issue of public
interest.
Types of scale/levels
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These are four kinds of scales, namely:
(a) Nominal scale
(b) Ordinal scale
(c) Interval scale
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(d) Ratio scale
Nominal Scale
In this scale, numbers are used to identify the objects. For
example, University Registration numbers assigned to students,
numbers on their jerseys.
Examples: Have you ever visited Bangalore?
Yes-1
No-2
‘Yes’ is coded as ‘One’ and ‘No’ is coded as ‘Two’. The numeric
(c)
attached to the answers has no meaning, and is a mere

identification. If numbers are interchanged as one for ‘No’ and two
for ‘Yes’, it won’t affect the answers given by respondents. The
numbers used in nominal scales serve only the purpose of counting.
176 The telephone numbers are an example of nominal scale, where
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Notes one number is assigned to one subscriber. The idea of using
___________________ nominal scale is to make sure that no two persons or objects
receive the same number. Similarly, bus route numbers are the
___________________
example of nominal scale.
___________________
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“How old are you”? This is an example of a nominal scale.
___________________
“What is your PAN Card number?
___________________
Arranging the books in the library, subject-wise, author-wise – we
___________________
use nominal scale.
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___________________
Example: Physics-48, Chemistry-92, etc.
___________________
Limitations
___________________
(a) There is no rank ordering.
___________________
(b) No mathematical operation is possible.
(c) Statistical implication – Calculation of the standard deviation
and the mean is not possible. It is possible to express the mode.
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Ordinal Scale (Ranking Scale)
The Ordinal scale is used for ranking in most market research
studies. Ordinal scales are used to ascertain the consumer
perceptions, preferences, etc. For example, the respondents may be
given a list of brands which may be suitable and were asked to
rank on the basis of ordinal scale.
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z Lux
z Liril
z Cinthol
z Lifebuoy
z Hamam
Table 16.1: Ordinal Scale-based Rank
Rank Item Number of respondents

I Cinthol 150
II Liril 300
(c)
III Hamam 250

IV Lux 200
V Lifebuoy 100
Total 1,000
In the above example, II is mode and III is median.

Statistical implications: It is possible to calculate the mode and 177
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the median. Notes
In market research, we often ask the respondents to rank the items, ___________________
like for example, “A soft drink, based upon flavour or colour”. In such ___________________
a case, the ordinal scale is used. Ordinal scale is a ranking scale.
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___________________
Rank the following attributes of 1–5 scale according to the
___________________
importance in the microwave oven:
___________________
Table 16.2: Ranking Scale
___________________
Attributes Rank
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Company Image 5 ___________________
Functions 3
___________________
Price 2
Comfort 1 ___________________
Design 4 ___________________
Difference between Nominal and Ordinal Scales

In nominal scale numbers can be interchanged, because it serves
only for the purpose of counting. Numbers in Ordinal scale have
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meaning and it won’t allow interchangeability.
Interval Scale
Interval scale is more powerful than the nominal and ordinal
scales. The distance given on the scale represents equal distance
on the property being measured. Interval scale may tell us “How
far the objects are apart with respect to an attribute?” This means
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that the difference can be compared. The difference between “1”

and “2” is equal to the difference between “2” and “3”.
Example 1: Suppose we want to measure the rating of a
refrigerator using interval scale. It will appear as follows:
1. Brand name Poor ———————— Good
2. Price High ———————— Low
3. Service after-sales Poor ———————— Good
4. Utility Poor ———————— Good
The researcher cannot conclude that the respondent who gives a
(c)
rating of 6 is 3 times more favourable towards a product under

study than another respondent who awards the rating of 2.
Example 2: How many hours you spend to do class assignment
every day?
< 30 min.
178
30 min. to 1 hr.
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Notes
Activity
1hr. to 1½ hrs.
___________________
Explain the difficulty of
measurement.
___________________
> 1½ hrs.
___________________ Statistical implications: We can compute the range, mean,
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median, etc.
___________________
Difference between Interval and Ordinal Scales
___________________
___________________
Ordinal scale gives only the ranking of the alternatives viz., one is
greater than the other, but won’t give the difference/distance
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___________________
between one and the other. Interval scales provide information
___________________ about the difference between one and the other.
___________________
Ratio Scale
___________________
Ratio scale is a special kind of internal scale that has a meaningful
zero point. With this scale, length, weight or distance can be
measured. In this scale, it is possible to say, how many times
greater or smaller one object is being compared to the other.
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Example: Sales this year for product A are twice the sales of the
same product last year.
Statistical implications: All statistical operations can be
performed on this scale.
Check Your Progress

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Fill in the blanks:

1. _________________ Scaling is used to study consumer
attitudes, particularly with respect to perceptions and
preferences.
2. Thurstone Scale is also known as an _________________
scale.
Difficulty of Measurement
Measurement may be difficult sometimes due to two important
factors. One is respondent and other one is the instrument
(c)
generally used in gathering data.

1. Respondent who is very crucial to provide the necessary
information to the researcher may find it difficult to provide?
Some of the reasons may be as follows:
(a) Respondent may not able to understand the intention of 179
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the investigator. Notes
Activity
(b) Respondent may not recollect the required information. ___________________
Discuss the criteria for good
Measurement.
(c) Some times, the respondent may not like to share the ___________________
information with the investigator.
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___________________
(d) Respondent may find that the environment is not ___________________
congenial to share the information.
___________________
2. Instrument developed by the researcher may have some
___________________
problems. Some of them are:
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___________________
(a) Instrument may be too lengthy
___________________
(b) Lack of clarity on the instructions.
___________________
(c) Lack of sequence in the instrument
___________________
(d) Clarity about the purpose of the research
(e) Poor language.
Check Your Progress

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Fill in the blanks:
1. Semantic Differential Scale is very similar to the
__________________ Scale.
2. The Likert Scale consists of two parts
__________________ and __________________
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Criteria for Good Measurement

There are two criteria to decide whether the scale selected is good
or not. They are shown in the diagram given below:
(c)
Figure 16.1: Criteria for Scale Evaluation

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Reliability
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Notes
For a research to be sound, reliability is an important criterion.
___________________ Reliability means, ability of a scale to produce a consistent result if
___________________ repeated measurements are taken. Reliability is the extent to
which scales are free from random error and produce consistent
___________________
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results. Lesser the random error, the data will be more reliable.
___________________
Random error is not a constant error but, it depends on the person
___________________ using the measuring instrument or measurement situation. A
___________________ random error leads to inconsistency in measurement; when the
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measurements are made on the same objects or persons.
___________________
An example of random error would be the use of elastic scale to
___________________
measure a person’s height. If 2 successive measurements are
___________________
made, the person who is measuring would stretch the elastic ruler
___________________ to different degree on 2 successive occasions, therefore, the height
measurement would never be the same, even though the person’s
height has not changed.
In addition to the random error, there is one more error namely
systematic error. It is also called as non sampling error. This error
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includes all types of errors except random sampling error.
Therefore, we can say
Measurement result = true measurement + measurement error
Measurement error = true measurement + systematic error +
random error
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Test-retest Method
There is an approach called test-retest to check the reliability. In
this approach, respondents are given identical sets of scales at two
different points of time under almost identical conditions. The time
interval is between 2 to 5 weeks. The similarity between 2
measurements is determined by calculating the correlation
coefficient. Higher the value of correlation coefficient, greater the
reliability.
The disadvantage of this method is that, if the interval between
first and second test is more the scale will be less reliable.
(c)
Second disadvantage is it is difficult to convince the original

respondents to take the test for second time.
Third disadvantage is that, the second time answer may be
influenced by the first time answer. Assume that, an opinion about
the hospital service is asked. Two weeks later, if the same question 181
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is asked, the reply by respondent will be influenced by what was Notes
told the first time. ___________________
Equivalent Forms Reliability ___________________
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___________________
In this method 2 “equivalent” scales are used to obtain consistent
results. So, the researcher administer one scale to the respondent ___________________
and 2 weeks later another scale, which is equivalent of the first one ___________________
to the same respondent.
___________________
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The greatest problem of this method is to construct 2 scales that
___________________
appear to be different but have similar effect. This alternative
forms test is similar to the test-retest method, except that the test- ___________________
retest method uses the same measuring instrument both the times. ___________________
___________________
Internal Consistency
In this method two or more measurement of the same concept is
taken at the same time and then compares to see if they agree with
each other. Suppose we use Likert scale and offer choices from
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strongly agree to strongly disagree to determine consumer attitude
towards the service rendered by Big Bazar. Suppose the researcher
prepares 4 statements scale to measure this:
1. I enjoy shopping at Big Bazar.
2. All my needs for my household are satisfied by shopping in Big
Bazar.
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3. Service provided to me by Big Bazar is excellent.

4. I like the front line salesman regarding the service rendered.
The degree to which the 4 statements show correlation across a
sample of respondents indicates the reliability of the measure. If
correlation is high, then reliability will also be high.
Methods to Improve Reliability

1. Number of measurements is to be increased. Instead of
conducting one test, average scores of several equivalent forms
of the test is to be considered for reliability.
(c)
2. Controls used for conducting the experiment must be good.

Example, (a) measuring device must be accurate. (b) The
researcher who administers must be trained to avoid bias in
respondents.
3. Items to be measured must be stated clearly.
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Validity
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Notes
The paradigm of validity focused in the question “Are we
___________________ measuring, what we think, we are measuring”? Success of the scale
___________________ lies in measuring “What is intended to be measured?” Of the two
attributes of scaling, validity is the most important.
___________________
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___________________ There are several methods to check the validity of the scale used
for measurement.
___________________
1. Construct Validity: A sales manager believes that there is a
___________________
clear relation between job satisfaction for a person and the
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___________________ degree to which a person is an extrovert and the work
___________________ performance of his sales force. Therefore, those who enjoy high
___________________
job satisfaction, and have extrovert personalities should
exhibit high performance. If they do not, then we can question
___________________
the construct validity of the measure.
2. Content Validity: A researcher should define the problem
clearly. Identify the item to be measured. Evolve a suitable
scale for this purpose. Despite these, the scale may be
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criticised for being lacking in content validity. Content validity
is known as face validity. An example can be the introduction
of new packaged food. When new packaged food is introduced,
the product representing a major change in taste, thousands of
consumers may be asked to taste the new packaged food.
Overwhelmingly, people may say that they liked the new
flavour. With such a favourable reaction, the product when
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introduced on a commercial scale may still meet with failure.

So, what is wrong? Perhaps a crucial question that was
omitted. The people may be asked if liked the new packaged
food, to which the majority might have “yes” but the same
respondents were not asked, “Are you willing to give up the
product which you are consuming currently?” In this case, the
problem was not clearly identified and the item to be
‘measured’ was left out.
3. Predictive Validity: This pertains to “How best a researcher
can guess the future performance from the knowledge of
(c)
attitude score”?
Example: An opinion questionnaire, which is the basis for
forecasting the demand for a product has predictive validity. The
procedure for predictive validity is to first measure the attitude
and then predicts the future behaviour. Finally, this is followed by
the measurement of future behaviour at an appropriate time. 183
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Compare the two results (past and future). If the two scores are Notes
closely associated, then the scale is said to have predictive validity. ___________________
Relationship between Reliability and Validity ___________________
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___________________
1. If a scale is to be valid, it must be reliable.
___________________
2. The scale does not have to be valid to be reliable.
___________________
3. Reliability is a necessary but not a sufficient condition for
___________________
validity. This is because validity requires other factors to be
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satisfied. ___________________
4. Validity is not a necessary condition for reliability. ___________________
___________________
Sensitivity
___________________
Sensitivity is also a criterion for good measurement. Sensitivity is
the ability of a measurement to indicate changes or differences
between the methods applied. Relevance to the decision is to be
made or problem to be solved in practical consideration.
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Check Your Progress
Fill in the blanks:
1. An ________________ questionnaire, which is the basis
for forecasting the demand for a product has predictive
validity.
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2. Those who enjoy high job satisfaction, and have

extrovert personalities should exhibit ________________
performance.
Summary
Measurement stands for the assignment of numbers to the
characteristics of persons, objects or events on the basis of certain
principles Measurement is the process of assigning numbers or
scores to attributes of people or objects. Measurement can be made
using nominal, ordinal, interval or ratio scale. These scales show
(c)
the extent of likes/dislikes, agreement disagreement or belief

towards an object. Each of the scale has certain statistical
implications.
184
Lesson End Activity
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Notes
What can be measured about the objects listed below?
___________________
___________________
1. Packaged food.
___________________ 2. Output of a manufacturing unit.
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___________________ 3. Job satisfaction.
___________________ 4. Subordinate staff in a college.

___________________
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___________________
Keywords
___________________ Scaling: The generation of a continuum upon which measured
objects are located.
___________________
___________________
Nominal Scale: In this scale, numbers are used to identify the
objects.
Ordinal Scale (Ranking scale): The Ordinal scale is used for
ranking in most market research studies. Ordinal scales are used
to ascertain the consumer perceptions, preferences, etc.
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Interval Scale: Interval scale is more powerful than the nominal
and ordinal scales. The distance given on the scale represents
equal distance on the property being measured.
Ratio Scale: Ratio scale is a special kind of internal scale that has
a meaningful zero point. With this scale, length, weight or distance
can be measured.
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Rank Order Scale: In this method, respondents are required to

rank more than two objects or alternatives based on some criteria.
Constant Sum Scale: Constant sum scale is one of the methods of
comparative scaling. In this method, the respondent is instructed
to allocate some constant sum (points) to various features given,
based on the importance of attribute to the respondent.

1. What is measurement?
(c)
2. Write down the Functions of measurement.

3. What are the 4 types of basic scales?
4. Explain the Mapping Rule of measurement.
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5. Discuss Difficulty of Measurement
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Notes
6. What are the Criteria for good Measurement?
___________________
___________________
Further Readings
E
___________________
Books ___________________
S. N. Murthy and U. Bhojanna, Business Research Methods, Excel ___________________
Books, 2007.
___________________
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Rajendra Nargundkar. Marketing Research. Tata McGraw Hill
___________________
Pub. Co. Ltd
___________________
Donald R. Cooper. Business Research Methods. Tata McGraw Hill
___________________
Pub. Co. Ltd
___________________
Beri. G. C. Marketing Research. Tata McGraw Hill Publishing Co.
Ltd
Shajahan S. Marketing Research - MacMillan India Ltd
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Web Readings
http://www.statsdirect.com/help/basics/measurement_scales.htm
http://infinity.cos.edu/faculty/woodbury/stats/tutorial/Data_Levels.
htm
http://www.learner.org/courses/learningmath/data/session1/part_b/
index.html
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(c)
(c)
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UNIT 17: Hypothesis Testing
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Notes
Activity
___________________
What is Hypothesis?
Hypothesis Testing ___________________
___________________
Objectives
___________________
topics: ___________________
 Hypothesis: Meaning and Definition ___________________
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 Sources of Hypothesis ___________________
 Types of Hypothesis
___________________
 Hypothesis Testing
___________________
 Errors in Hypothesis Testing
___________________
Introduction
A hypothesis is a tentative proposition relating to certain
phenomenon, which the researcher wants to verify when required.
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If the researcher wants to infer something about the total
population from which the sample was taken, statistical methods
are used to make inference. We may say that, while a hypothesis is
useful, it is not always necessary. Many a time, the researcher is
interested in collecting and analyzing the data indicating the main
characteristics without a hypothesis. Also, a hypothesis may be
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rejected but can never be accepted except tentatively. Further

evidence may prove it wrong. It is wrong to conclude that since
hypothesis was not rejected it can be accepted as valid.
What is a Null Hypothesis?: A null hypothesis is a statement
about the population, whose credibility or validity the researcher
wants to assess based on the sample. A null hypothesis is
formulated specifically to test for possible rejection or nullification.
Hence, the name ‘null hypothesis’. Null hypothesis always states
“no difference”. It is this null hypothesis that is tested by the
researcher.
(c)
Hypothesis: Meaning and Definition

A hypothesis is a proposition that is consistent with known data,
but has been neither verified nor shown to be false. In other words
it is a statement that expresses the probable relationship between
variables. In symbolic logic, a hypothesis is the first part of an
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Notes implication (with the second part being known as the predicate)
___________________ and is synonymous with "conjecture or a statistical hypothesis that
refers to a statement on which hypothesis testing will be based.
___________________
Particularly important statistical hypothesis include the null
___________________
hypothesis and alternative hypothesis.
___________________
Characteristics of Hypothesis
___________________
The following are the factors to be taken into account before
___________________
judging whether hypothesis is good or not. Some of the
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___________________ characteristics of a hypothesis to be good are:
___________________
 Clarity of concepts.
___________________
 Whether possible to test or not?
___________________
 Whether “what is to be tested is clear or not”?
 Whether appropriate statistical techniques are available for
testing?
Whether logical derivation is possible or not?
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
 Whether bias or subjectivity is eliminated or not? Objectivity

should be the sole criteria.
 Whether the hypothesis is simple or not?
 Adequate theoretical backing is a prerequisite for hypothesis
testing.
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Clarity of Concepts
Concepts should not be abstract. If concepts are not clear, precise
problem formulation will be difficult leading to difficulty in data
collection. Concepts are important because, it means different to
different people. The way concept is understood depends on the
needs of a person.
Example: Wearing a sunglass represents a life style for a student,
whereas it is an eye protecting device to a doctor. Therefore,
different people hold different concepts about the same object.
(c)
Concept can be classified as concrete concepts and abstract

concepts. Concrete concepts are tangible things like chair or book.
Abstracts concepts refer to characteristics of items such as
attitude, motivation etc. concepts can also refer to different
phenomenon.
Example: Same word may have several meaning. The researcher
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may use a word in one context but it may mean different to Notes
different people. ___________________
Example: “Dispose” to a researcher may mean “to give way”, but ___________________
other meanings are “to get rid of”, “to sell” and “to throw away”.
___________________
Sometimes researcher may use different words to describe the
same phenomenon. Examples, “whole”, “integral”, “complete”, ___________________
“entire”. Some concepts may not be measurable. Therefore, ___________________

concepts should be clear. ___________________
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Ability to Test ___________________
It should be possible to verify the hypothesis. Therefore, a good ___________________
hypothesis is one in which there is empirical evidence. ___________________
Example: “Children of rich parents do not do well in their ___________________

studies.”
“Most multinationals do not follow ethical codes” statement such
as above, which is general in nature, should be avoided.
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Specific/Clear
What is to be tested should be clear. The relationship between the
variables should clear or the statistic under verification should be
mentioned clearly.
Example: Two wheelers manufactured by company “A” gives
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better mileage than that manufactured by company “B”. Here what

is to be verified is clear and specific.
Statistical Tools
Hypothesis should be such that, it is possible to use statistical
techniques. Such as ANOVA, Chi square, t-test or other non-
parametric tests.
Logical
If there is 2 or more Hypothesis derived from the same basic
theory, they should not contradict each other.
(c)
Example: All objects dropped from a height come down. Stone is

an object. Therefore, when dropped from a height should come
down.
190 Example: Man is mortal
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Notes
Raman is a man
___________________
Therefore he is mortal
___________________
___________________ Subjectivity
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___________________ Researcher’s subjectivity or his biased Judgments should be
eliminated from the hypothesis.
___________________
___________________
Example: Older sales man sells less than younger salesman. This
may be a biased opinion. As a matter of fact, older salesman may
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___________________
be selling more due to their experience and rapport developed with
___________________ the customer.
___________________
Simple
___________________
Hypothesis should be simple. Simple means less constraints or
assumptions before formulating it.
Example: Our advertisement and our sales are related. Here the
assumption made is that “No other factor other than our
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advertisement is responsible for our sales. In reality, the
advertiser should know that competitor’s activity, which is beyond
the control of the advertiser, is assumed to be nonexistent. This
may be done by the researcher to make the hypothesis simple. In
reality it is not so.
Theory
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Hypothesis must be supported or backed up by theoretical relevance.

Example: Attitude of customer towards a new product
introduction. This study is very well backed up by theory on
consumer behaviour.
Contents of a Good Hypothesis

z A good hypothesis is based on sound reasoning. It should be
based on previous research and should follow the most likely
outcome, not the exceptional outcome.
z A good hypothesis provides a reasonable explanation for
(c)
the predicted outcome. It does not look for unrealistic

explanations.
 A good hypothesis clearly states the relationship between the
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defined variables. Clear, simply written hypothesis is easier to Notes
Activity
test. Do not be vague. What
___________________
are null hypothesis and
alternate hypothesis?
 A good hypothesis defines the variables in easy to measure ___________________
terms.
___________________
 Who are the participants?
___________________
 What is different or will be different in your test?
___________________
 What is the effect?
___________________
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 A good hypothesis is testable in a reasonable amount of time.
___________________
1. A ______________ is a tentative proposition relating to ___________________

certain phenomenon, which the researcher wants to
verify when required.
2. A ______________ is a statement about the population,
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whose credibility or validity the researcher wants to
assess based on the sample.
Sources of Hypothesis
Hypothesis can be derived from many sources:
 Theory
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 Observation
 Past experience
 Case studies
 Similarity
Theory
Theory on the subject can act as a source of hypothesis. We start of
from a general premise and then formulate hypothesis.
Example: Providing employment opportunity is an indicator of
(c)
social responsibility of a government enterprise. From the above

several hypothesis, it can be deduced that:
 Public enterprise has greater social concern than other
enterprises.
 People’s perception of government enterprise is social concern.
 Govt enterprises help in improving the life of less privileged
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Notes people.
___________________
Observation
___________________
Peoples’ behaviour is observed. In this method we use observed
___________________
behaviour to infer the attitudes. This is an indirect method of
___________________ attitude measurement. Direct observation is used to get insights
___________________ into research behaviour and other related issues.
___________________ Example: A shopper in a supermarket may be disguised, to watch
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the customer in the stores. The following may be observed. (a) How
___________________
the customer approaches the – Product category, (b) How long
___________________ he/she spends in front of display, (c) Whether the customer had
___________________ difficulty in locating the product. Collect all these data and
___________________
formulate a hypothesis regarding the behaviour of the customer
towards the product.
Past Experience
Here researcher goes by past experience to formulate the
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hypothesis.
Example: A dealer may state that fastest moving kids apparel is
frock. This may be verified.
Case Studies
Case studies published can be used as a source for hypothesis.
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Normally this is done before the launch of a product to find

customer taste and preferences.
Similarity
This could be with respect to similarity in activities of human beings.
Example: Dress, food habits or any other activities found in
human living in different parts of the globe.
Check Your Progress

Fill in the blanks:
(c)
1. A _____________ test is one in which the test statistics

leading to rejection of null hypothesis falls on both tails
of the sampling distribution curve as shown.
2. _____________ tells the researcher the number of
elements that can be chosen freely.
Types of Hypothesis
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Notes
There are several basis on which hypothesis are classified: Activity
___________________
What is Hypothesis Testing?
 Descriptive Hypothesis
___________________
 Relation Hypothesis
___________________
Descriptive Hypothesis ___________________
These by name imply describing some characteristics of an object, ___________________

a situation, an individual or even an organization.
___________________
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Example: ___________________
 Students from autonomous institutions are placed faster than ___________________
other institutions.
___________________
 Research and practice of educations system in our country is
___________________
not integrated.
 Why youngsters prefer “X” soft drinks?
 Decentralization of decision making is more effective.
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The above tells us the characteristics of some entity.
Relational Hypothesis
 In this case we describe relationship between 2 variables
 Why rich people shop at life style?
Rate of attrition is high in those jobs where there is night shift
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
working.
 More cohesive is the group, better is the output.
Working Hypothesis
This is a hypothesis framed in the early stages of research. These
are altered or modified as investigation proceeds.
Example: As of now “demand and quality are related”. Later on
this may not be the fact as investigation proceeds.
Null Hypothesis
(c)
This hypothesis states that there is no difference between the

parameter and the statistic that is being compared.
Example: There is no relationship between marks obtained in the
examination and the success of the same student in the corporate
world. Null hypothesis are framed for testing statistical
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Notes significance. Null hypothesis is very exact.
___________________
Analytical Hypothesis
___________________
Here relationship of analytical variable is found. These are used
___________________
when one would like to specify the relationship between changes in
___________________ one property leading to change in another.
___________________ Example: Income level related to number of children in the family
___________________ or literacy related to number of children in the family.
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___________________
Statistical Hypothesis
___________________
These are got from samples that are measurable. Statistical
___________________ hypothesis are of 2 types:
___________________
Hypothesis which Indicates Differences
Example: There is a difference between the performance of students
graduating from English medium schools and those of others.
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Hypothesis which Indicates Association
Example: there is a perfect relationship between price and
demand.
Common Sense Hypothesis

There are based on what is being observed:
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 Junior students are more disciplined than seniors.

 Economically poor students work hard compared to those, who
come from well to do families.
 Middle class families lead a humble living. The above are
observed on a day to day basis over a period of time before
drawing any conclusions.
Check Your Progress

Fill in the blanks:
(c)
1. A ______________ is a tentative proposition relating to

certain phenomenon, which the researcher wants to
verify when required.
2. A ______________ is a statement about the population,
whose credibility or validity the researcher wants to
assess based on the sample.
Hypothesis Testing
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Notes
Hypothesis testing is making an inference about how the value of a Activity
___________________
Write down the Elements and
parameter relates to a specific numerical value: Is it less than,
limitations of hypothesis.
equal to, or greater than the specified number? ___________________
Examples: You want to determine whether the mean level of blood ___________________
alcohol exceeds the legal limits after two drinks. ___________________
Any hypothesis can be subjected to test with known statistical ___________________

method. The rest is core otherwise the research study will be
___________________
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incomplete. Thus testing of hypothesis is an essential part of the
___________________
research study of the reasons that the study of statistical inference
enables researcher to so much confidently examine the accuracy of ___________________
the study results. Data with experimental nature require ___________________
undergoing a comparison of two or more relating to statistics. An
___________________
evaluation of the difference between two statistics, say means is
desired. Both means are subject to error. May the difference
between the two means be ascribed to sampling error or may it be
due to structures differ. A decision in this regard is required
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between these alternatives. Statistical procedure which leads to
decision of this kind is called Test of Significance. It may be
applied to the difference between statistics of independent samples
or between statistics obtained under different condition for the
sample. Sometimes it is applied to test the difference between a
single sample statistic and fixed value.
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There are two important means of testing hypothesis:

 The study of hypothesis for logical consistency
 The study of hypothesis for agreement with fact
Elements
Following are the elements of hypothesis:
Null Hypothesis
Statement regarding the value(s) of unknown parameter(s). Typically
will indicate no association between explanatory and response
(c)
variables in our applications (will always contain an equality)
Alternative Hypothesis
Statement contradictory to the null hypothesis (will always contain
an inequality)
Test Statistic
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Notes
Quantity based on sample data and null hypothesis used to test
___________________
between null and alternative hypotheses
___________________
Rejection Region
___________________
___________________ Values of the test statistic for which we reject the null in favour of
the alternative hypothesis
___________________
___________________ Procedure
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___________________ Following are the steps/procedure of testing hypothesis:
___________________ Step 1: Formulate the hypothesis.
___________________ Step 2: Select the level of significance.
___________________ Step 3: Find the critical region.
Step 4: Select an appropriate test.
Step 5: Calculate the value.
Step 6: Obtain the critical test value.
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Step 7: Make decisions.
Step 1: Formulate the Hypothesis

The normal approach is to set two hypotheses instead of one, in
such a way, that if one hypothesis is true, the other is false.
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Alternatively, if one hypothesis is false or rejected, then the other

is true or accepted. These two hypotheses are:
 Null hypothesis
 Alternate hypothesis
Let us assume that the mean of the population is µo and the mean of
the sample is x. Since we have assumed that the population has a
mean of µo, this is our null hypothesis. We write this as Hoµ = µo,
where Ho is the null hypothesis. Alternate hypothesis is HA = µ. The
rejection of null hypothesis will show that the mean of the population
is not µo. This implies that alternate hypothesis is accepted.
(c)
Step 2: Significance Level

Having formulated the hypothesis, the next step is its validity at a
certain level of significance. The confidence with which a null
hypothesis is accepted or rejected depends upon the significance
level. A significance level of say 5% means that the risk of making
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a wrong decision is 5%. The researcher is likely to be wrong in Notes
accepting false hypothesis or rejecting a true hypothesis by 5 out of ___________________
100 occasions. A significance level of say 1% means, that the
___________________
researcher is running the risk of being wrong in accepting or
rejecting the hypothesis is one of every 100 occasions. Therefore, a ___________________
1% significance level provides greater confidence to the decision ___________________

than 5% significance level.
___________________
There are two types of tests: ___________________
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 One- Tailed Test ___________________
 Two- Tailed Test ___________________
___________________
Step 3: One-tailed and Two-tailed Tests
___________________
A hypothesis test may be one-tailed or two-tailed:
One- Tailed Test
One-tailed test the test-statistic for rejection of null hypothesis
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falls only in one-tail of sampling distribution curve which is shown
in figure 17.1.
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Source: http://www.win-vector.com/blog/2009/12/statistics-to english-translation-part-2b-

calculating-significance/
Figure 17.1: One-Tailed Test
Example: In a right side test, the critical region lies entirely in the
right tail of the sample distribution. Whether the test is one-sided
or two-sided – depends on alternate hypothesis.
(c)
Example: A tyre company claims that mean life of its new tyre is
15,000 km. Now the researcher formulates the hypothesis that tyre
life is = 15,000 km.
Two-Tailed Test
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Notes
A two-tailed test is one in which the test statistics leading to
___________________
rejection of null hypothesis falls on both tails of the sampling
___________________ distribution curve as shown in figure 17.2.
___________________
___________________
___________________
___________________
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___________________
___________________
___________________
___________________ Source: http://www.win-vector.com/blog/2009/12/statistics-to-english-translation-part-2b-

calculating-significance/
Figure 17.2: Two-Tailed Test
When we should apply a hypothesis test that is one-tailed or two-

tailed depends on the nature of the problem.
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One-tailed test is used when the researcher’s interest is primarily
on one side of the issue.
Example: “Is the current advertisement less effective than the
proposed new advertisement”?
A two-tailed test is appropriate, when the researcher has no reason
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to focus on one side of the issue.

Example: “Are the two markets – Mumbai and Delhi different to
test market a product?”
Example: A product is manufactured by a semi-automatic
machine. Now, assume that the same product is manufactured by
the fully automatic machine. This will be two-sided test, because
the null hypothesis is that “the two methods used for
manufacturing the product do not differ significantly”.
 H0 = 1 = 2
(c)
Table 17.1: Alternate Hypothesis

Step 4: Select Test Criteria
ES
Notes
If the hypothesis pertains to a larger sample (30 or more), the Z-
test is used. When the sample is small (less than 30), the T-test is ___________________
used. ___________________
___________________
Step 5: Calculate the Value
___________________
Carry out computation using an appropriate statistical test based
on the sample size. ___________________
___________________
Step 6: Obtain the Critical Test Value
UP
___________________
Find the critical test value from the statistical table at a given
___________________
level of significance for the appropriate number of degrees of
freedom. ___________________
Degree of Freedom: ___________________
It tells the researcher the number of elements that can be chosen

freely. Example, a + b/2 = 5. fix a = 3, b has to be 7. Therefore, the
degree of freedom is 1.
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Step 7: Make Decisions
Compare the table value with the computed value. Accepting or
rejecting the null hypothesis depends on whether the computed
value falls in the region of rejection at a given level of significance.
If the computed value is higher than the table value, we reject the
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null hypothesis and conclude that the alternative hypothesis is

accepted and vice-versa.
Example:
Null hypothesis: There is no impact of advertisement on sales of
product X.
Assume that sample size is more than 30, so Z test is used. If
computed value of Z is 5.3 and table value at 5% significance is
10.23. Here computed value is higher than the table value, so we
reject the null hypothesis.
Researcher can make a decision as; advertisement has an impact
(c)
on sales of product X.
Errors in Hypothesis Testing
ES
Notes
There are two types of errors:
___________________
 Hypothesis is rejected when it is true.
___________________
 Hypothesis is not rejected when it is false.
___________________
1 is called Type 1 error () and 2 is called Type 2 error ().
___________________
When a =0.10 it means that true hypothesis will be accepted in 90
___________________ out of 100 occasions. Thus, there is a risk of rejecting a true
___________________ hypothesis in 10 out of every 100 occasions. To reduce the risk, use
UP
___________________
a = 0.01 which implies that we are prepared to take a 1% risk i.e.,
the probability of rejecting a true hypothesis is 1%. It is also
___________________
possible that in hypothesis testing, we may commit Type 2 error ()
___________________ i.e., accepting a null hypothesis which is false. The only way to
___________________ reduce Type 1 and Type 2 error is by increasing the sample size.
Example of Type 1 and Type 2 error
Type 1 and Type 2 error is presented as follows:
Suppose a marketing company has 2 distributors (retailers) with
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varying capabilities. On the basis of capabilities, the company has
grouped them into two categories: (1) Competent retailer,
(2) Incompetent retailer. Thus, R1 is a competent retailer and R2 is
an incompetent retailer. The firm wishes to award a performance
bonus (as a part of trade promotion) to encourage good retailer-
ship. Assume that two actions A1 and A2 would represent whether
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the bonus or trade incentive is given and not given. This is shown
as follows:
Table 17.2: Behaviour of Retailers
When the firm has failed to reward a competent retailer, it has

committed type-2 error. On the other hand, when it was rewarded
to an incompetent retailer, it has committed type-1 error.
(c)
Limitations of Hypothesis
A null hypothesis is only useful if it possible to calculate from it the
probability of observing a data set with particular parameters. In
general it is much harder to be precise about how probable the
data would be if the alternative hypothesis is true.
If experimental observations contradict the prediction of the null
ES
Notes
hypothesis, it means that either the null hypothesis is false or we
have observed an event with very low probability. This gives us ___________________
high confidence in the falsehood of the null hypothesis which can ___________________
be improved by increasing the number of trails. However,
___________________
accepting the alternative hypothesis only commits us to a
difference in observed parameters; it does not prove that the theory ___________________
or principles that predicted such a difference is true, since it is ___________________

always possible that the difference could be due to additional ___________________
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factors not recognized by the theory.
___________________
The formulation, testing, and rejection of null hypothesis are
___________________
methodologically consistent with the falsifications model of
scientific discovery formulated by Karl Popper and widely believed ___________________
to apply to most kinds of empirical research. ___________________
Check Your Progress

Fill in the blanks:
E-
1. A ______________ test is one in which the test statistics
leading to rejection of null hypothesis falls on both tails
2. ______________tells the researcher the number of
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Summary
Hypothesis is a proposition which the researcher wants to verify.
There are two types of hypothesis, descriptive and relationship.
There are several types of hypothesis such as theory, observation,
past experience and case studies. There are several characteristics
of the hypothesis, which decides whether a hypothesis is good or
bad.
Researcher will form 2 hypothesis (a) Null hypothesis (b)
Alternative hypothesis, for accepting or rejecting the statement.
There are 2 types of tests one-tailed test or two-tailed test. Two
(c)
types of error may occur while testing hypothesis (a) Hypothesis is

rejected when it is true (b) Hypothesis not rejected when it is false
former is known as types error and later is known as type 2 error.
202
Lesson End Activity
S
Notes
Make alternative and null hypothesis for the following situation:
___________________
___________________
1. If the water faucet is opened, then the amount of water flowing
will increase.
___________________
E
2. If fenders are placed on a bicycle, then the user will stay dry
___________________
when going through puddles.
___________________
3. If there is a relation between the wave length of light and the
___________________ photosynthesis rate, then light of different colours will cause
UP
___________________ the plant to make different amounts of oxygen.
___________________ 4. If temperature is related to the rate of metabolism in animals,
___________________ then raising the ambient temperature will cause an increase in
___________________
animal metabolism.
Keywords
Null Hypothesis: The null hypothesis is a hypothesis which the
researcher tries to disprove, reject or nullify.
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Alternate Hypothesis: An alternative hypothesis is one that
specifies that the null hypothesis is not true. The alternative
hypothesis is false when the null hypothesis is true and true when
the null hypothesis is false.
One-tailed Test: In one-tailed test the test-statistic for rejection of
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null hypothesis falls only in one-tailed of sampling distribution

curve.
Two-tailed Test: A two-tailed test is one in which the test
statistics leading to rejection of null hypothesis falls on both tails
Degree of Freedom: It tells the researcher the number of

1. Distinguish Theory and Hypothesis.
(c)
2. Explain briefly various types of hypothesis.

3. Explain the various sources from which hypothesis are
derived.
4. What are the characteristics of hypothesis? Explain each one
ES
Notes
in detail.
___________________
5. What are the various steps used to test hypothesis?
___________________
6. What is a one-tailed and two-tailed test?
___________________
___________________
Further Readings
___________________
Books ___________________
UP
S. N. Murthy and U. Bhojanna, Business Research Methods, Excel
___________________
Books, 2007.
___________________
___________________
Pub. Co. Ltd
___________________
Pub. Co. Ltd
Ltd
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Shajahan. S. Marketing Research - MacMillan India Ltd
Web Readings
http://www.math.uah.edu/stat/hypothesis/index.html
http://www.sagepub.com/upm-data/40007_Chapter8.pdf
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http://www.sjsu.edu/faculty/gerstman/StatPrimer/hyp-test.pdf
http://mathworld.wolfram.com/HypothesisTesting.html
(c)
(c)
CC
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UP
ES
UNIT 18: Observation Methods
Unit 18
205
S
Notes
Activity
Observation Methods
___________________
Write down the meaning of
observation.
___________________
E
___________________
Objectives
___________________
topics: ___________________
\ Meaning of Observation ___________________
UP
\ Survey Method/Research ___________________
\ Types of Survey Methods
___________________
Introduction ___________________
___________________
In the observation method, only present/current behaviour can be
studied. Therefore, many researchers feel that this is a great
disadvantage. A causal observation could enlighten the researcher
to identify the problem. Such as the length of the queue in front of
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a food chain, price and advertising activity of the competitor etc.
Observation is the least expensive mode of data collection.
Example: Suppose a Road Safety Week is observed in a city and
the public is made aware of advance precautions while walking on
the road. After one week, an observer can stand at a street corner
and observe the number of people walking on the footpath and
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those walking on the road during a given period of time. This will
tell him whether the campaign on safety is successful or
unsuccessful.
Sometimes, observation will be the only method available to the
researcher.
Example: Behaviour or attitude of the children and also of those
who are inarticulate.
Meaning of Observation
Observation is one of the methods of collecting data. It is used to
(c)
get both past and current information. Instead of asking people

questions, as a survey does, observation depends on watching what
people do. Specifically Observation research can be defined as the
systematic process of recording patterns of occurrences or
behaviours without questioning or normally communicating with
206 the people involved. Instead of asking respondents about their
S
Notes current behaviour, we may observe it and record our observations.
___________________ Although it is not possible to observe past behaviour, we may
observe the results of such behaviour. In a way, secondary data
___________________
reflect the results of the past behaviour of people as also of past
___________________
E
occurrences. In marketing research, the observational methods are
___________________ not used frequently. All the same, as it is used especially in
___________________ marketing experimentation, a brief discussion is provided here.
The major application of observation as an information collection
___________________
method may be classified into categories of the audit, coincidental
UP
___________________ recording devices, and a general classification, direct observation
___________________
Types
___________________
There are several methods of observation of which any one or a
___________________
combination of some of them could be used by the observer. Some
of these are:
z Structured or unstructured method
z Disguised or undisguised method
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z Direct-indirect observation
z Human-mechanical observation
Structured-Unstructured Observation
Whether the observation should be structured or unstructured
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depends on the data needed.

Example 1: A manager of a hotel wants to know “how many of his
customers visit the hotel with their families and how many come
as single customers. Here, the observation is structured, since it is
clear “what is to be observed”. He may instruct his waiters to
record this. This information is required to decide requirements of
the chairs and tables and also the ambience.
Suppose, the manager wants to know how single customers and
those with families behave and what their attitudes are like. This
study is vague, and it needs a non-structured observation.
(c)
It is easier to record structured observation than non-structured

observation.
Example 2: To distinguish between structured and unstructured
observations, consider a study, investigating the amount of search
that goes into the purchase of a soap. On the one hand, the
observers could be instructed to stand at one end of a supermarket 207
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and record each sample customer’s search. This may be observed Notes
and recorded as follows: “The purchaser first paused after looking ___________________
at HLL brand. He looked at the price on of the product, kept the
___________________
product back on the shelf, then picked up a soap cake of HLL and
E
glanced at the picture on the pack and its list of ingredients, and ___________________
kept it back. He then checked the label and price for P&G product, ___________________
kept that back down again, and after a slight pause, picked up a
___________________
different flavour soap of M/s Godrej Company and placed it in his
___________________
trolley and moved down the aisle”. On the other hand, observers
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might simply be told to record the “first soap cake examined”, by ___________________
checking the appropriate boxes in the observation form. The ___________________
‘second situation’ represents more structured than the first.
___________________
To use a more structured approach, it would be necessary to decide
___________________
precisely what is to be observed and the specific categories and
units that would be used to record the observations.
Disguised-Undisguised Observation
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In disguised observation, the respondents do not know that they
are being observed. In non-disguised observation, the respondents
are well aware that they are being observed. In disguised
observation, observers often pose as shoppers. They are known as
“mystery shoppers”. They are paid by research organisations. The
main strength of disguised observation is that it allows for
registering the true of the individuals.
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In the undisguised method, observations may be restrained due to

induced error by the objects of observation. The ethical aspect of
disguised observations is still open to question and debate.
Direct-Indirect Observation
In direct observation, the actual behaviour or phenomenon of
interest is observed. In indirect observation, the results of the
consequences of the phenomenon are observed. Suppose, a
researcher is interested in knowing about the soft drinks
consumption of students in a hostel, he may like to observe empty
(c)
soft drink bottles dropped into the bin. Similarly, the observer may
seek the permission of the hotel owner to visit the kitchen or
stores. He may carry out a kitchen/stores audit, to find out the
consumption of various brands of spice items being used by the
hotel. It may be noted that the success of an indirect observation
208 largely depends on “how best the observer is able to identify
S
Notes physical evidence of the problem under study”.
___________________
Human-Mechanical Observation
___________________
Most of the studies in marketing research are based on human
___________________
E
observation, wherein trained observers are required to observe and
___________________
record their observation. In some cases, mechanical devices such as
___________________ eye cameras are used for observation. One of the major advantages
___________________ of electrical/mechanical devices is that their recordings are free
from any subjective bias.
UP
___________________
___________________ Criteria
___________________ 1. Information must be observable or inferable from observable
___________________ 2. Behaviour must be repetitive frequent, or predictable
3. Behaviour must be of relatively short duration
Factors Affecting
The observer should examine the following questions well in
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advance to enable to have effective plan of action. They are:
z what should be observed;
z how the observation should be recorded;
z what type of tools and techniques need to be used;
how to ensure accuracy of observation; and
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z What type of relationship should be there between the observers

and observed how the desired relationship should be established.
Observation must be done under conditions which will enable to
collect accurate results. The distance and light must be
satisfactory. Proper mechanical aids should be chosen. The
observation should have sufficient number of samples. If it is
possible, the observation could be repeated through another set of
observers for verification or accuracy. In direct observation, we
concurrently observe and record the behaviours of interest and in
many of these situations, the observer's presence is known to the
(c)
subject. A common presumption would seem to be that the

subject's behaviour is the same as it would be if the observer were
not present. However, reactivity surely occurs in some of these
cases, as subjects respond to the presence of observers by changing
their behaviours.
Limitations 209
S
Notes
1. The observer might wait for longer period at the point of Activity
observation. And yet the desired event may not take place. ___________________
What are the various ways of
survey method?
Observation is required over a long period of time and hence ___________________
may not occur.
E
___________________
2. For observation, an extensive training of observers is required.
___________________
3. This is an expensive method.
___________________
4. External observation provides only superficial indications. To ___________________
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delve beneath the surface is very difficult. Only overt
___________________
behaviour can be observed.
___________________
5. Two observers may observe the same event, but may draw
different inferences. ___________________
___________________
6. It is very difficult to gather information on (1) Opinions (2)
Intentions.
Check Your Progress

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Fill in the blanks:
1. ______________ is used to analyse those data which
cannot be quantified.
2. In ______________ the respondents do not know that
they are being observed.
CC
Survey Method/Research
Survey is used most often to describe a method of gathering
information from samples of individuals. For example, sample of
voters are questioned before elections to determine how the public
perceives the candidate and the party. A manufacturer does a
survey of the potential market before introducing a new product.
Government commissions conduct a survey to gather the factual
information; it needs to evaluate existing legislation, etc.
Types
(c)
Personal Interviews
An interview is called personal when the Interviewer asks the
questions face-to-face with the Interviewee. Personal interviews can
take place at home, at a shopping mall, on the street, and so on.
210 Telephone Surveys
S
Notes
It is a process of collecting information from sample respondents by
___________________
calling them over telephone. Surveying by telephone is the most
___________________ popular interviewing method.
___________________
E
Computer Direct Interviews
___________________
These are methods in which the respondents key in (enter) their
___________________
answers directly into a computer.
___________________
UP
___________________
Email Surveys
___________________ Email Questionnaire is a new type of questionnaire system that

___________________
Unlike other on-line questionnaire systems that need a web server
___________________ to construct, distribute and manage results, Email Questionnaire
is totally email based. It works with the existing email system
making on-line questionnaire surveys available to anyone with an
Internet connection.
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Internet/Intranet (Web Page) Survey
Web surveys are rapidly gaining popularity. They have major
speed, cost, and flexibility advantages, but also significant
sampling limitations. These limitations make software selection
especially important and restrict the groups that can be studied
using this technique.
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Mail Questionnaire
Mail questionnaire is a paper questionnaire, which is sent to
the researcher.
Schedule
Schedule may be defined as a proforma that contains a set of
questions which are asked and filled by an interviewer in a face to
face situation with another. It is a standardized device or tool of
(c)
observation to collect the data in an objective manner. In this

method of data collection the interviewer puts certain questions
and the respondent furnishes certain answers and the interviewer
records as they are given.
Purpose 211
S
Notes
The main objectives of the schedule are as follows:
___________________
z Delimitation of the topic: A schedule is always about a
definite item of enquiry. Its subject is a single and isolated ___________________
item rather than the research subject in general. The schedule
E
___________________
therefore delimits and specifies the subject of enquiry.
___________________
z Aids to Memorize: It is not possible for the interviewer to
___________________
keep in mind or memorize all the information that he collects
___________________
from different respondents. Without a standardized tool, he
UP
might ask different questions to different respondents and ___________________
thereby get confused when he requires analyzing and ___________________
tabulating the data. Therefore schedule acts as an "aide
___________________
memoire".
___________________
z Aid to classification and analysis: Another objective of the
schedule is to tabulate and analyze the data collected in a
scientific and homogeneous manner.
Types
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These are as follows:
Observation Schedule
The schedules which are used for observation are known as
observation schedules. Using this schedule, observer records the
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activities and responses of an individual respondent or a group of

respondents under specific conditions. The main purpose of the
observation schedule is to verify information.
Rating Schedule
Rating schedules are used to assess the attitudes, opinions,
preferences, inhibitions, perceptions and other similar elements or
attributes of respondent. Such measurement is done using a
Rating Scale. We have discussed about various rating scales
separately in attitude measurement chapter.
Document Schedule
(c)
These schedules are used in exploratory research to obtain data

regarding written evidence and case histories from autobiography,
diary, or records of government etc. It is an important method for
collecting preliminary data or for preparing a source list.
212 Institution Survey Schedules
S
Notes
This type of schedule is used for studying different problems of
___________________
institutions.
___________________
Interview Schedule
___________________
E
___________________ Using his schedule, an interviewer presents the questions to the
interviewee and records his responses in the given space of the
___________________
questionnaire.
___________________
UP
___________________
Preparation and Forms
___________________
Questions to be Included in the Schedule
___________________ z The questions should be short, simple and easy to understand

by the respondent.
___________________
z The questions should have some direct relation to the problem.
z The information collected through schedule should be
amendable to statistical manipulation and tabulation.
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z The questions must be interrelated and such that cross
checking is feasible.
z Questions should be free from personal bias and should not
hurt the feelings of the respondents.
z Questions should be standardized.
z Precise terms should be used in framing the questions.
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z They should be subject to pre-testing.
Organization of Schedule
1. Selection of respondents: Generally sampling method is
used for selection of respondents. The sample must be
representative and should contain the biographical details and
other relevant information about the respondents.
2. Selection and training of the field workers: In the
schedule method, field workers carry out the interview and
collect data. Since there is a shortage of trained field workers,
(c)
they have to be selected carefully.

3. Interviews and correct replies: For a successful interview
and correct result following steps are to be taken.
4. Correct approach: The field worker should approach the 213
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respondent in a manner so that the respondent understands Notes
correctly the purpose. Generally, the respondent should be ___________________
approached when he is not busy and willing to corporate.
___________________
5. Proper response: For proper responses the researcher should
E
___________________
be able to convince the respondents.
___________________
6. Correct reply: For proper response and correct reply the
___________________
respondent should not be hurt. He should be understood in
right perspective and context. ___________________
UP
___________________
Testing the Validity of the Results
___________________
After receipt of the filled-in schedule it should be subject to certain
___________________
tests and checking so that the correctness of the collected data can
be established. It can be done in several ways. The investigator ___________________
himself may select the respondent and administer the schedule

and find out the variation, if any. If variations are of a large degree
then it should be either rejected or modified.
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Check Your Progress
Fill in the blanks:
1. _____________ is used most often to describe a method
of gathering information from samples of individuals.
2. In _____________ on, the actual behaviour or
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phenomenon of interest is observed.

3. _____________ may be defined as a proforma that
contains a set of questions which are asked and filled
by an interviewer in a face to face situation with
another.
Summary
Observation is one of the methods of collecting data. It is used to
get both past and current information. Instead of asking people
questions, as a survey does, observation depends on watching what
(c)
people do. Specifically Observation research can be defined as the

systematic process of recording patterns of occurrences or
behaviours without questioning or normally communicating with
the people involved. Survey is used most often to describe a method
of gathering information from samples of individuals. For example,
214 sample of voters are questioned before elections to determine how
S
Notes the public perceives the candidate and the party.
___________________
Qualitative techniques are used in exploratory research. Depth
___________________ interview allows flexibility in gathering information, unstructured
___________________ nature of the interview allows the respondent to tell whatever he
E
wishes. The greatest advantages of depth interview are its ability
___________________
to discover hidden motives. However its limitation is subjectivity.
___________________ Focus group is another method used for gathering information. It
___________________ is nothing but an indirect interview. However focus group suffers
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from certain disadvantages, such as influence of one member on
___________________
others. Morever, the success depends on the skill of the moderator.
___________________
___________________
Lesson End Activity
___________________
“Direct observation is distinguished from participant observation
in a number of ways”. Discuss.
Keywords
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Direct-Indirect Observation: In direct observation, the actual
behaviour or phenomenon of interest is observed.
Survey: Survey is used most often to describe a method of
gathering information from samples of individuals.
Personal Interviews: An interview is called personal when the
CC

Telephone Surveys: It is a process of collecting information from
sample respondents by calling them over telephone.
Schedule: Schedule may be defined as a proforma that contains a
set of questions which are asked and filled by an interviewer in a
face to face situation with another.
Delphi Technique: This is a process where a group of experts in
the field gather together.

(c)
1. Give any two advantages of the observation method.

2. What is schedule method?
3. What are the several methods used to collect data by
observation method?
4. What are the advantages and limitations of collecting data by 215
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observation method? Notes
___________________
Further Readings ___________________
E
___________________
Books
___________________
S. N. Murthy and U. Bhojanna, Business Research Methods, Excel
Books, 2007. ___________________
Rajendra Nargundkar. Marketing Research. Tata McGraw Hill ___________________
UP
Pub. Co. Ltd ___________________
Donald R. Cooper. Business Research Methods. Tata McGraw Hill ___________________

Pub. Co. Ltd ___________________
Beri. G. C. Marketing Research. Tata McGraw Hill Publishing Co. ___________________
Ltd
Shajahan. S. Marketing Research - MacMillan India Ltd
Web Readings
E-
http://www.managementstudyguide.com/observation_method.htm
http://www.humanresources.hrvinet.com/observation-methods/
http://www.public.asu.edu/~kroel/www500/Observation.pdf
http://www.socialresearchmethods.net/kb/qualmeth.php
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(c)
(c)
CC
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UP
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UNIT 19: Analysis of Variance (ANOVA)
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Notes
Activity
___________________
Discuss Analysis of Variance.
Analysis of Variance (ANOVA) ___________________
___________________
Objectives
___________________
topics: ___________________
 Meaning of Analysis of Variance ___________________
UP
 One-way ANOVA ___________________
 Two-way ANOVA
___________________
___________________
Introduction
___________________
With reference to agricultural experiments, the technique of
analysis of variance was first devised and developed by R. A.
Fisher. This technique was found applicable to a variety of data in
other areas as well. For the purpose of testing the hypothesis of
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equality between the variances of two samples drawn from a
normal population, the F-test is used. However, when we test the
equality between the means of some samples, then we can use the
F-test on the basis of the ratio of two variances, for evaluating the
variation 'between samples' and 'within samples'.
CC
Meaning of Analysis of Variance

ANOVA is a statistical technique. It is used to test the equality of
three or more sample means. Based on the means, inference is
drawn whether samples belongs to same population or not.
Conditions for using ANOVA:
1. Data should be quantitative in nature.
2. Data normally distributed.
3. Samples drawn from a population follow random variation.
ANOVA can be discussed in two parts:
(c)
1. One-way classification.
2. Two and three-way classification.
The technique of analysis of variance can be used for data
classified under one-way and also data classified under two-way.
For dealing with the data under both these classifications we can
ES
Notes adopt one of the three methods (a) Direct method (b) Shortcut
Activity
___________________
What is One-way ANOVA?
method and (c) Coding Method.
___________________ When using analysis of variance, it is assumed that each of the
___________________ samples is drawn from population having normal distribution with
same variance. The assumption of normality is not required when
___________________
the sample size is large.
___________________
The analysis of variance is carried out in following three steps:
___________________
UP
1. Population variance is estimated by variance among sample
___________________
means.
___________________
2. A second estimate of variance is made form variance within
___________________ samples.
___________________ 3. Comparing these two estimates of variance. If they are
approximately equal in value it is inferred that the means are
not significantly different.
Check Your Progress

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Fill in the blanks:
1. The technique of _____________ can be used for data
classified under one-way and also data classified under
two-way.
2. _____________ is a statistical technique used to test the
CC
equality of three or more sample means.
One-way ANOVA
In statistics, one-way analysis of variance (abbreviated one-way
ANOVA) is a technique used to compare means of two or more
samples (using the F distribution). This technique can be used only
for numerical data.
The ANOVA tests the null hypothesis that samples in two or more
groups are drawn from populations with the same mean values. To
do this, two estimates are made of the population variance. These
(c)
estimates rely on various assumptions (see below). The ANOVA

produces an F-statistic, the ratio of the variance calculated among
the means to the variance within the samples. If the group means
are drawn from populations with the same mean values, the
variance between the group means should be lower than the
variance of the samples, following the central limit theorem. A
higher ratio therefore implies that the samples were drawn from
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populations with different mean values. Notes
Typically, however, the one-way ANOVA is used to test for ___________________

differences among at least three groups, since the two-group case ___________________
can be covered by a t-test (Gosset, 1908). When there are only two
___________________
means to compare, the t-test and the F-test are equivalent; the
relation between ANOVA and t is given by F = t2. ___________________
___________________
Following are the steps followed in ANOVA:
___________________
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1. Calculate the variance between samples.
___________________
2. Calculate the variance within samples.
___________________
3. Calculate F ratio using the formula.
___________________
F = Variance between the samples/Variance within the sample
___________________
4. Compare the value of F obtained above in (3) with the critical
value of F such as 5% level of significance for the applicable
degree of freedom.
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5. When the calculated value of F is less than the table value of
F, the difference in sample means is not significant and a null
hypothesis is accepted. On the other hand, when the calculated
value of F is more than the critical value of F, the difference in
sample means is considered as significant and the null
hypothesis is rejected.
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One-way Classified Data

The procedure of analysis is as explained below:
Direct Method: Null hypothesis H0: m1 = m2 = m3 = ….. mp
Variance between Columns

1. Find the respective means of the individual columns and also
the Grand Mean i.e.
X 1 , X 2 , X 3 ,......and X
2. Find the deviations between the means of various columns and
(c)
the grand mean ( x ) and find the sum of the squares of these
deviations of the columns.
3. Divide the total of the square of deviations (step 2 above) by c
– 1 (the number of columns minus one). This we call the
variance between the columns [SS (B)]. Here c – 1 is known as
the degrees of freedom.
Variance within the Columns
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Notes
1. Find the deviations between the individual items and their
___________________ respective means, in respect of each column. Find the sum of
___________________ the squares of these deviations pertaining to all the columns
[SS(W)]
___________________
___________________ 2. Divide the total SS(W) by N – C where N is the number of

given items and C is the number of columns (here N – C is
___________________
referred to as the degrees of freedom).
___________________
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___________________
F-ratio
We divide the higher variance amongst the two variances i.e. SS(B)
___________________
and SS(W) by the lower variance. The resulting ratio is the F-ratio.
___________________
Next, we find the table-value of F for C – 1, N – C degrees of
___________________
freedom, at 5% level of significance. We compare the calculated
value of F-ratio with the table-value.
Denoting calculated value of F as Fc and the table value of F as
F0.05, the interpretation is:
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1. If Fc > F0.05, the difference is significant. We reject the null
hypothesis.
2. If Fc < F0.05, the difference is not significant and we accept the
null hypothesis.
Two-way Classified Data

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A given data may be classified on the basis of two different factors.

For example, the yields of a crop such as wheat in four different
blocks may differ on account of four different fertilizers. Apart from
the influence of the blocks of land and fertilizers on the yields and
sampling fluctuations, there may arise variations in the form of
residual variations.
In the case of one-way classified data, it was observed that the sum
of squares between columns plus the sum of squares within
columns gave the total sum of squares. Here, in the case of two-
way classified data, we find the total sum of squares consists of the
(c)
SS in regard to columns plus SS in regard to rows of SS in regard

to residual. The degrees of freedom with respect to columns is
C – 1 and that with respect to rows in r – 1 and the degrees of
freedom with respect to the 'residual' is (c – 1) (r – 1). The total
number of d.f. is cr – 1. Here C stands for the number of columns
and r, the number of rows.
The method of analysis is explained in the following examples.
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Here, the shortcut method along with coding is used. Coding refers Notes
to the subtraction of a certain suitable constant from each one of ___________________
the values, so as to simplify the calculations.
___________________
ANOVA is useful:
___________________
1. To compare the mileage achieved by different brands of
___________________
automotive fuel.
___________________
2. Compare the first year earnings of graduates of half a dozen
___________________
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top business schools.
___________________
Application in Market Research ___________________
Consider the following pricing experiment. Three prices are ___________________
considered for a new toffee box introduced by Nutrine company.
___________________
Price of three varieties of toffee boxes are ` 39, ` 44 and ` 49. The
idea is to determine the influence of price levels on sales. Five
supermarkets are selected to exhibit these toffee boxes. The sales
are as follows:
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Table 19.1: Means of Toffee Boxes
Price (`) 1 2 3 4 5 Total Sample mean x

39 8 12 10 9 11 50 10
44 7 10 6 8 9 40 8
49 4 8 7 9 7 35 7
What the manufacturer wants to know is: (1) Whether the

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difference among the means is significant? If the difference is not

significant, then the sale must be due to chance. (2) Do the means
differ? (3) Can we conclude that the three samples are drawn from
the same population or not?
Check Your Progress

Fill in the blanks:
1. _______________ of variance is a technique used to
compare means of two or more samples.
2. We divide the higher variance amongst the two
(c)
variances i.e. SS(B) and SS(W) by the ______________

Two-way ANOVA
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Notes
Activity
In statistics, the two-way analysis of variance (ANOVA) test is an
___________________
What is Two-way ANOVA?
extension of the one-way ANOVA test that examines the influence
___________________ of different categorical independent variables on one dependent
___________________ variable. While the one-way ANOVA measures the significant
___________________
effect of one independent variable (IV), the two-way ANOVA is
used when there are more than one IV and multiple observations
___________________
for each IV. The two-way ANOVA can not only determine the main
___________________ effect of contributions of each IV but also identifies if there is
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___________________ a significant interaction effect between the IVs.
___________________ The procedure to be followed to calculate variance is the same as it

___________________
is for the one-way classification. The example of two-way
classification of ANOVA is as follows:
___________________
Example 1: A firm has four types of machines – A, B, C and D. It
has put four of its workers on each machines for a specified period,
say one week. At the end of one week, the average output of each
worker on each type of machine was calculated. These data are
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given below:
Table 19.2: Workers and Machines

Average Production by Four Types of Machine
A B C D
Worker 1 25 26 23 28
Worker 2 23 22 24 27
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Worker 3 27 30 26 32
Worker 4 29 34 27 33
The firm is interested in knowing:

1. Whether the mean productivity of workers is significantly
different.
2. Whether there is a significant difference in the mean
productivity of different types of machines.
Example 2: Company ‘X’ wants its employees to undergo three
different types of training programme with a view to obtain
improved productivity from them. After the completion of the
(c)
training programme, 16 new employees are assigned at random to

three training methods and the production performance was
recorded.
The training manager’s problem is to find out if there are any
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differences in the effectiveness of the training methods? The data Notes
recorded is as under: ___________________
Table 19.3: Daily Output of New Employees ___________________

Method 1 15 18 19 22 11 ___________________
Method 2 22 27 18 21 17
___________________
Method 3 18 24 19 16 22 15
___________________
Following steps are followed.
___________________
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1. Calculate Sample mean i.e. x ___________________
2. Calculate General mean i.e. x ___________________
3. Calculate variance between columns using the formula ___________________

2
s =
å n (x
i i – x) ___________________
k –1
where K = (n1 + n2 + n3 – 3).
4. Calculate sample variance. It is calculated using formula:

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å (x i – x)2
Sample variance si 2 = where n is No. of
n –1
observation under each method.
5. Calculate variance within columns using the formula
σ–2 =
ån i –1
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nr – k
 between column variance 

6. Calculate F using the ratio F = 
 within column variance 
7. Calculate the number of degree of freedom in the numerator F

ratio using equation, d.f = (No. of samples – 1).
8. Calculate the number of degree of freedom in the denominator
of F ratio using the equation d.f. = å (n i – k) .
9. Refer to F table F8 find value.

(c)
10. Draw conclusions.

Solution:
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Notes
Table 19.4: Sample Mean of These Methods
___________________
Method 1 Method 2 Method 3
___________________ 15 22 24
18 27 19
___________________ 19 18 16
___________________ 22 21 22
11 17 15
___________________ 18
___________________ 85 105 114
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___________________ 1. Sample mean is calculated as follows:
___________________ 85 105 114

x1 = = 17 x2 = = 21 x3 = = 19
5 5 6
___________________
2. Grand mean:
___________________
= 15 +18 +19 + 22 +11 + 22 + 27 +18 + 21 +17 + 24 +19 +16 + 22 +15 +18
16
304
= = 19
16
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3. Calculate variance between columns:
Table 19.5: Variance between Columns

n x x x–x ( x – x )2 n( x – x )2
5 17 19 -2 4 5 × 4 = 20
5 21 19 2 4 5 × 4 = 20
6 19 19 0 0 6×0=0
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 ni ( x – x ) 2 = 40
σ –2
=
å n (x
i i – x)
=
40
= 20
k –1 3 –1
Variance between column = 20

4. Calculation sample variance:
Table 19.6: Sample Variance

Training method - 1 Training Training method -3
method - 2
x– x (x– x )2 x– x (x– x )2 x– x
15-17 (-2)2 = 4 22-21 (1)2 = 1 18-19 (1)2 = 1
(c)
18-17 (1) = 1
2 27-21 (6) = 36
2 24-19 (5)2 = 25
19-17 (2)2 = 4 18-21 (-3)2 = 9 19-19 (0)2 = 0
22-17 (5) = 25
2 21-21 (0) = 1
2 16-19 (-3)2 = 9
11-17 (-6)2 = 36 17-21 (-4)2 = 16 22-19 (3)2 = 9
15-19 (-4)2 = 16
 (x– x )2 = 70  (x– x )2 = 62  (x– x )2 = 60
2 2
å (x – x ) 70 å (x – x ) 62
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Sample variance = = , = , Notes
n –1 5 –1 n –1 5 –1
2
å (x – x) =
60 ___________________
n –1 6 –1 ___________________
70 62 60 ___________________
s12 = = 17.5 s22 = = 15.5 s32 = = 12
4 4 5
___________________
5. Within column variance
___________________
 n i –1  2 ___________________
s- =   n  s1
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i –k
___________________
æ 5 –1 ö æ 5 –1 ö æ 6 –1 ö ___________________
= ç ×17.5 + ç ×15.5 + ç ×12
è 16 – 3 ÷ø è 16 – 3 ÷ø è 16 – 3 ÷ø
___________________
æ 4ö æ 4ö 5 ___________________
= ç ÷ ×17.5 + ç ÷ ×15.5 + ×12
è 13 ø è 13 ø 13
192
Within column variance = = 14.76
13
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Between column variance 20
6. F= = = 1.354
Within column variance 14.76
7. D.f of Numerator = (3 – 1) = 2.
8. D.f of Denominator = å n1 – k = (5 – 1) + (5 – 1) + (6 – 1) = 16 –
3 = 13.
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9. Refer to table using d.f = 2 and d.f = 13.

10. The value is 3.81. This is the upper limit of acceptance region.
Since calculated value 1.354 lies within it we can accept H 0,
the null hypothesis.
Conclusion: There is no significant difference in the effect of the
three training methods.
Check Your Progress

Fill in the blanks:
1. The _____________ of variance test is an extension of
(c)
the one-way ANOVA test that examines the influence

of different categorical independent variables on one
dependent variable.
2. In the two-way ANOVA model, there are _____________
factors, each with its own number of levels.
Summary
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Notes
ANOVA is a statistical technique. It is used to test the equality of
___________________
three or more sample means. Based on the means, inference is
___________________ drawn whether samples belongs to same population or not.
___________________
In statistics, one-way analysis of variance (abbreviated one-way
___________________ ANOVA) is a technique used to compare means of two or more
___________________ samples (using the F distribution). This technique can be used only
for numerical data.
___________________
UP
In statistics, the two-way analysis of variance (ANOVA) test is an
___________________
extension of the one-way ANOVA test that examines the influence
___________________
of different categorical independent variables on one dependent
___________________ variable.
___________________
Lesson End Activity
During ANNOVA, find out what happens when we calculate a
variance?
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Keywords
ANOVA: ANOVA is a statistical technique. It is used to test the
equality of three or more sample means.
One-way ANOVA: In statistics, one-way analysis of variance is a
technique used to compare means of two or more samples (using
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the F distribution).
Two-way ANOVA: In statistics, the two-way analysis of variance
(ANOVA) test is an extension of the one-way ANOVA test that
examines the influence of different categorical independent
variables on one dependent variable.

1. What is ANOVA?
2. What is one-way ANOVA?
(c)
3. How one-way ANOVA is applied in market research?

4. Discuss two-way ANOVA with illustration.
Further Readings
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Notes
Books ___________________
S. N. Murthy and U. Bhojanna, Business Research Methods, Excel ___________________
Books, 2007.
___________________
___________________
Pub. Co. Ltd
___________________
___________________
Pub. Co. Ltd
UP
___________________
Ltd ___________________
Shajahan S . Marketing Research – MacMillan India Ltd ___________________
___________________
Web Readings
http://www.csse.monash.edu.au/~smarkham/resources/anova.htm
http://www.stat.ufl.edu/~aa/sta6127/ch12.pdf
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http://www.cimt.plymouth.ac.uk/projects/mepres/alevel/fstats_ch7.
pdf
http://onlinestatbook.com/2/analysis_of_variance/intro.html
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(c)
(c)
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UP
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UNIT 20: Case Study
Unit 20
229
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Notes
Case Study
___________________
___________________
E
___________________
Objectives
___________________
After analyzing this case, the student will have an appreciation of the
___________________
Case Study 1: Tata Salt – Desh Ka Namak
UP
___________________
The pioneer in India's branded-salt industry, Tata Salt has held
the No. 1 position in the country since its launch in 1983. It has a ___________________
37 percent share of the branded-salt market and an 18 percent
___________________
share of the total salt market. Tata Salt is riding an emotional
wave with its latest advertising campaign. The brand's new ___________________
communication uses a distinctive take to depict the purity of salt
(kharapan) in the simple acts of honesty. It also attempts to
elevate the brand to the status of a national icon - desh ka namak
(the country's salt). With this positioning, Tata Chemicals – the
manufacturers of Tata Salt, hopes to break the brand clutter
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caused by recent entrants in the salt market.
Tata Chemicals' salt story began in 1983, when it needed fresh
water for the boilers that produced soda ash at its Mithapur
plant. Fresh water was scarce, so the company set up a process to
generate it by using seawater, a freely available resource. Salt, of
high quality and purity, was a by-product.
Says Kapil Mehan, vice president (sales and marketing), Tata
Chemicals: "At that time both Unicef and the Indian government
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were promoting the intake of iodine for health reasons. Salt is the
most economical and convenient dietary vehicle for iodine
consumption."
The Tata Brand Advantage
These factors led to Tata Chemicals taking up salt production.
"We marketed the product by prefixing the Tata name to it", says
Mr Mehan. "Our positioning statement emerged: 'Namak ho Tata
ka, Tata namak'". The line remains an audio mnemonic for the
brand. The communication was built around the fact that Tata
Salt, India's first iodised salt, was manufactured by a Tata
company.
The first competitive challenge came in the early 1990s with the
launch of Captain Cook. Positioned as a free-flowing salt, it
(c)
helped create awareness about brands in the salt segment. Tata

Chemicals responded by releasing ads to counter Captain Cook's
claims. As more consumers moved from non-branded or local
products to the national brands, Tata Salt's inherent superiority
and strong distribution network ensured its continuing growth in
terms of market share and category expansion.
Contd….
230
In 1996, Annapurna, another national salt brand, was launched.
S
Notes It was positioned on the health benefits of iodine. According to Mr
Mehan, by that time iodization had become almost a hygiene
___________________
factor and consumers did not perceive it as a differentiator.
___________________ The rising number of players in the branded-salt segment got
___________________
Tata Chemicals to think of strategies to combat the possibility of
E
its market share being eroded. In 1998, the company conducted a
___________________ comprehensive market research study to understand the
consumer psyche. The results ranked Tata Salt high on attributes
___________________ such as iodization, free flow, purity and whiteness (consumers
thought of Tata Salt as 'saltier salt'). The next commercial showed
___________________
Sanjeev Kapoor, the famous chef, endorsing the product for these
UP
___________________ attributes.
Pressing the Purity Button
___________________
By late 2001 several brands had entered the market. In
___________________ September, 2001, Tata Salt was relaunched with a new
___________________
advertisement that talked about its purity, a core property of the
brand. The packaging was also changed to a more premium-
looking pack, a response to consumer feedback.
Tata Chemicals brought in consultants to track the brand and
review its marketing strategy. The results showed that Tata
Salt's brand equity index was 7, which was ahead of the
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competition. But a study by Quadra Consultancy on the
marketing strategy revealed that, though the brand awareness
was still strong, the differences between the players were getting
cloudy.
"In order to sustain a competitive advantage over a long period of
time, what is needed is for the consumer to perceive you to be
different from others," adds Mr Mehan. "The best way to
differentiate is to connect with the consumer at an emotional
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level."
The challenge, according to Mr Mehan, was to take purity, a
rational product benefit, and create an emotional link with the
consumers. A new agency, Bates India, was chosen to work on the
communication. Says J. S. Mani, Vice President and General
Manager, Bates India – "A strong fact that emerged from our
research was that consumers were troubled about the gradual
erosion of our value system. Another factor was that salt is deeply
rooted in grassroots values. Putting them together, we linked the
product (salt) with integrity of character."
The advertisements, released in August 2002, show ordinary
people doing their duties with integrity and commitment.
"Integrity should not be seen only in the context of a uniform, or
as integral to the occupation," says Mr Mani. Apart from a
(c)
policeman and an army officer, there is a railway linesman

checking the fishplates in spite of heavy rains, and a taxi driver
returning a cell phone but refusing the reward.
The Emotional Link
"Our campaign is a reassurance for Tata Salt users", says Mr
Mehan. "By using Tata Salt, a pure salt, he is a pure human
being. That's the emotional link."
Contd….
UNIT 20: Case Study
231
The communication route is interesting because Tata Salt's
S
leadership position is implied, not stated. The commercials end Notes
with the consumer stating: "Maine desh ka namak khaya hai". "If
everyone is eating the salt, it suggests that Tata Salt is the ___________________
leading salt in the market", says Mr Mani. Additionally, the ___________________
company decided to contribute 10 paise on every packet of Tata
Salt sold between August 15 and September 15, 2002, towards the
E
___________________
education of deprived girl children. The 'Desh Ko Arpan'
programme encouraged ordinary individuals to make a difference. ___________________
Over ` 35 lakh was collected and given to Child Relief and You
___________________
through this initiative.
The new campaign got an enthusiastic response from all Tata ___________________
UP
Chemicals employees, who signed a specially designed poster ___________________
reiterating their commitment to the product. "It was a very
emotional event,” says Mr Mehan. "They felt very proud to be part ___________________
of a successful company with a No 1 brand".
___________________
Tata Chemicals had taken over the distribution of Tata Salt in
December 2001 to make it more efficient. "The selling and ___________________
logistics functions are now separate entities", says Mr Mehan.
"Sales and distribution teams concentrate on developing markets
and improving the penetration level of Tata Salt. The team is
structured and focused like an FMCG company".
In order to strengthen relations with its channel partners, the
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company organised a workshop to help them manage business
through insights into marketing and strategy skills. The
workshop was greatly appreciated by the partners.
Potential to Grow
Mr Mehan feels that the brand has tremendous potential to grow,
since 70 percent of the market consists of non-branded salt. "Our
focus is on two levels: to retain our core users and bring in new
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users."
The efforts have been successful. Tata Salt was voted the fourth
most trusted brand in a survey conducted recently by The
Economic Times. "We were pleasantly surprised by the result,
since salt was thus far not considered a product exciting enough
to feature in the survey," says Mr Mehan. "We knew that our
brand was the best. This is due to a combination of personal
experience, the Tata name and product quality, which people
have experienced for so many years."
Tata Salt has a strong presence in the northern, western and
eastern regions of India. The south is a weak area, but the
company is currently evaluating options to tackle this weakness.
There are also plans to go global, and discussions for Bangladesh
and the Middle East are on the anvil.
(c)
"With the current level of activities in the market, we are looking

at enhancing Tata Salt's market share to 38-40 percent," says Mr
Mehan. "But, more than that, we are looking at expanding the
base of the category so as to bring in new users."
Contd….
232
Questions:
S
Notes
1. Develop a scale to study the attitude of consumers towards
___________________ Tata Salt.
___________________ 2. A market research survey in which hundred consumers were

contacted states that 95% of all the consumers of Tata Salt
___________________ were motivated by its advertising campaign "Desh ka
E
Namak". Find the confidence limits for the proportion of
___________________ consumers motivated by campaign in the population
___________________ (confidence level 0.95).
___________________ Source: Adapted from http://tata.com/tata_chemical
UP
___________________
___________________
___________________
___________________
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CC
(c)
UNIT 21: Multivariate Analysis
233
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Notes
___________________
___________________
E
___________________
___________________
___________________
___________________
UP
___________________
___________________
___________________
___________________
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BLOCK-V
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(c)
234
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Notes
UNIT 21: MULTIVARIATE ANALYSIS
___________________ UNIT 23: RESEARCH REPORT WRITING
___________________
z Various Multivariate Techniques z Meaning of Research Report Writing
___________________
E
z Multiple Linear Regression z Types of Research Reports
___________________
z Discriminant Analysis z Guidelines for Writing a Report
___________________
z Important Decision-making Techniques in z Approaches to Report Writing
Multivariate Analysis
___________________
z Steps in Writing Report
UP
___________________
UNIT 22: MARKET RESEARCH PROPOSAL
UNIT 24: ORAL AND WRITTEN REPORTS
z
___________________
Introduction
z Introduction
z ___________________
Research Proposal
z Oral Report
z How to Write a Research Proposal?
___________________
z Written Report
UNIT 25: CASE STUDY

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CC
(c)
Unit 21
235
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Notes
Activity
Multivariate Analysis
___________________
Explain any two multivariate
techniques.
___________________
E
___________________
Objectives
___________________
topics: ___________________
Different kind of Variables ___________________
UP
Various Multivariate Techniques ___________________
Multiple Linear Regression
___________________
Discriminant Analysis
___________________
Important decision-making techniques in Multivariate Analysis
___________________
Introduction
Variables can be analyzed in three different ways such as
univariate analysis, bivariate analysis and multivariate analysis.
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Univariate Analysis: When a single variable is analyzed alone, e.g.,
sample statistic such as “mean” which might refer to the average
consumption of a particular kind of food or the age of certain group of
students or people, it is known as univariate analysis.
Bivariate Analysis: When some association is measured between
two variables simultaneously, e.g., cross-classification of age group
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and cross consumption of two products, it is known as bivariate

analysis.
Multivariate Analysis: It is a logical extension of the univariate
analysis where two or more independent variables form the basis
for estimating the values of a dependent variable. The statistical
techniques used in multivariate analysis are called multivariate
techniques, e.g., identifying consumption habits in terms of age,
sex, socio-economic group, geographical location etc.
Various Multivariate Techniques

(c)
Following are the various multivariate techniques:
Functional Multivariate Techniques

These techniques help the researcher to develop the Predictive
Methods (normally used for forecasting) where one tries to relate
236 two data sets consisting of dependent and independent variables.
S
Notes On the basis of the specific means used in measuring the variables,
___________________ the different dependence methods can be further classified as
follows:
___________________
___________________ Correlation and Regression Analysis
E
___________________
Correlation analysis tries to measure the magnitude and direction
___________________ of relationship between two variables. Multiple and partial
___________________ correlation analyses extend the same notion between a single
variable and a set of variables. Regression analysis is used to
UP
___________________
determine the functional relationship between a dependent
___________________ variable and a host of predictors.
___________________
Discriminant Analysis
___________________
It involves a situation where the relationship(s) between a
categorical dependent variable and number of independent
variables is (are) derived.
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Analysis of Variance
This is used to analyze some experimental data when there is a
metric dependent measure and a set of experimental independent
variables which measure even on nominal or ordinal scales.
All the above mentioned analyses are extended to multivariable
level when there is more than one dependent variable. The
CC
statistical formula for estimation of parameters will, however,

change.
Structural Multivariate Techniques

Techniques which help in reducing large and complex data into
meaningful groups are known as structural multivariate
techniques.
In some cases there is no prior basis for distinguishing between
criterion and predictor variables. But the researcher may be
interested in analysing their interdependence or underlying
relationship. Techniques belonging to interdependence methods
(c)
applicable in marketing situations are as follows:

Factor Analysis 237
S
Notes
Here few basic dimensions are extracted by examining the Activity
correlations among the variables. The information from a large ___________________
Define multiple regression.
number of interrelated variables is summarized into few factors. ___________________
E
___________________
Cluster Analysis
___________________
It tries to group a set of objects into smaller sets based on their
profile similarities. ___________________
___________________
UP
Conjoint Analysis
___________________
It is a set of techniques used to derive a set of weightage for some
___________________
discrete levels of variables which are prior selected to study
___________________
consumer’s choice decision. Given a person’s overall evaluations of
a set of alternatives that are pre-specified in terms of levels of ___________________
different variables, it tries to estimate the structure of the
consumer’s judgement.
Some major techniques are discussed below.
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Check Your Progress
Fill in the blanks:
1. __________________ is used to determine the functional
relationship between a dependent variable and a host of
predictors.
CC
2. __________________ analyze some experimental data

when there is a metric dependent measure and a set of
experimental independent variables which measure
even on nominal or ordinal scales.
Multiple Linear Regression

Multiple Linear Regression is a logical extension of the simple
linear regression analysis and involves two or more independent
variables forming the basis for estimating the values of a
dependent variable.
(c)
Here, the relationship between each independent variable and the

dependent variable is a linear one.
In case of a single linear equation, the relationship is identified by
a single straight line (the line of best fit) but in case of multiple
238 regression analysis, it is a line passing through n-dimensional
S
Notes space where n is the total number of variables.
___________________
In case of n = 3, it will be a plane which is 3-dimensional.
___________________
The principal advantage of multiple regression analysis is that it
___________________ allows us to use more of the available information to estimate the
E
___________________ dependent variable.
___________________ It also has some limitations as given below:

___________________ z It assumes that the relationship between the two variables has
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___________________ most changed since the regression equation was developed.
___________________ z The relationship indicated by scatter diagram may not remain

the same if the regression equation is extended and applied to
___________________
values beyond those covered in obtaining it.
___________________
z It becomes very difficult to determine which variable is
dependent on the other and indicates a casual relationship
z There is a problem of “measurement error”. In case, the values
of the independent variable have some measurement error,
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then the sample regression coefficient will not be an unbiased
estimator of the population regression coefficient.
Example
Table 21.1: Factors of Scales
Sales Territory Sales (` Lakhs) Advertising Personal

Selling
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Y (` Lakhs)
X1 (No of Agents)
X2
1 100 40 10
2 80 30 10
3 60 20 7
4 120 50 15
5 150 60 20
6 90 40 12
7 70 20 8
(c)
The problem is to find the multiple regression equation which can

be used for evaluating sales with given “advertising expenditure”
and “numbers of selling agents”. This will help us to know which
factor – whether the advertising or personal selling – affects sales
value more.
239
Y= a + b1 x1 +b2 x2
S
Notes
The three normal equations for a linear regression are;
___________________
Sy = na + b1 Sx1 + b2 S x2 ___________________
S x1 y = a Sx1 + b1 Sx12 + b2 S x1 x2
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___________________
S x2 y = a Sx2 + b1 Sx1 x2 + b2 S x22 ___________________
___________________
Calculation table (work sheet)
___________________
X12 X22
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X1 X2 X1x2 y X1y X2y
___________________
40 1600 10 100 400 100 4000 1000
. . . . . . . . ___________________
. . . . . . . .
. . . . . . . . ___________________
60 3600 14 196 840 130 7800 1820
___________________
320 14600 96 1278 4270 800 35400 10480
Substitute in Normal Equation

800 = 8a + 320 b1 + 96 b2 ———————(i)
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35400 = 320 a + 14600 b1 + 4270 b2 ———(ii)
10480 = 96 a + 4270 b1 + 1278 b2 ————(iii)
From (i) and (ii) 340 = 180 b1 + 43 b2 ————(iv)
From (i) and (iii) –880 = – 430 b1 – 126 b2

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or, 440 = 215 b1 + 63 b2 ——————————— (v)
From (iv) and (v), b2 = 2.912
b1 = 1.193
a = 17.327
∴ The multiple regression equation is
Y = a + b1x1 + b2x2
= 17.327 + 1.193 x1 + 2.912 x2
Based on this equation, we can ascertain the sales value for the
(c)
given advertising expenditure. Since the advertising expenditure =

` 80 lakhs and number of selling personal = 25, we have;
Y = 17.327 + (1.193 x 80) + (2.912 x 25)

240
= 185.567
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Notes
___________________
= ` 185.6 lakhs
___________________ Interpretation of the Regression Equation

___________________ The b’s are called partial regression coefficient and indicate the
E
___________________ average change in y for a unit change in x, holding the other x’s
constant.
___________________
___________________
In the above equation, e.g., b1 = 1.193 shows that sales increase by
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1.193 units for every one lakh rupees of expenditure on
___________________
advertising.
___________________
B2 = 2.912 shows that sales increase by 2.912 units for every one
___________________
person employed as a selling agent. Of the two variables, personnel
___________________ selling is far more important than advertising for increasing sales.
Coefficient of Determination (r2)
∑(y – 'y ) – ∑ ( y i – y c )
2 2
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2 i
r =
∑ (y – 'y )
2
i
X1 X2 Y yc y-yc (y-yc) 2 (y-‘y) (y -‘y) 2

40 10 100 94 6 36 0 0
- - -
- - -
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- - -
S y = 800 S = 190 S = 6800
r2 = 0.972. This indicates that 97.2% of the total variation observed

is explained by the regression equation.
In other words, merely 2.8% of the total variation in the dependent
variable y remains unexplained by the regression equation.
If we do this sum excluding x2 factor, i.e., number of salesmen, and
do it only for advertising, we find that r2 = 0.944.
This comparison shows that the introduction of another
independent variable (here it is the number of selling agents) has
(c)
increased the value of r2 (coefficient of determination) from 0.944

to 0.972 on account of some improvement in explaining the
variations in the dependent variable. Multi regression analysis is
considered superior to linear regression analysis.
241
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Check Your Progress Notes
Activity
Write short note on
discriminant analysis.
1. The principal advantage of _______________ is that it ___________________
allows us to use more of the available information to
E
___________________
estimate the dependent variable.
___________________
2. The relationship indicated by _______________ may not
___________________
remain the same if the regression equation is extended
and applied to values beyond those covered in obtaining ___________________
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it. ___________________
___________________
Discriminant Analysis ___________________
In marketing, it is often required to find out: How are consumers ___________________
who buy a particular brand different from others who use
competitive brands in the product field? That is, do significant
demographic, psychographic differences exist among purchase of
different brands or pattern of buying (say, brand/store loyal
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consumers)? In general, how do the consumers in the market differ
from others?
In such problems, membership in a certain group is assumed and
afterwards researchers use their identity to examine the possible
differences among their behaviour. The exercise starts with a
profile of the object (consumer, region, product, etc.) which is
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measured on a set of variables such as age, income, education or

other background characteristics.
In case of a consumer and similarly, for a product, the variables
will be attributes, benefits, usage, etc. Now membership to a
particular group is assumed to be a function (usually linear) of
these variables. Discriminant analysis attempts to construct a
function with these variables so that objects belonging to different
groups are differentiated maximally. The linear combination of the
variables is known as discriminant function and its parameters are
called discriminant coefficients.
(c)
Suppose there are ‘g’ number of groups of n number of variables on

which the objects were measured. Then the maximum number of
discriminant functions (k) will be one less than the minimum
between g and n (i.e. K = min. (g, n)–1).
242
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Notes Check Your Progress
Activity
___________________
Describe canonical correlation True or False:
analysis and latent structural
___________________
analysis. 1. The non-linear combination of the variables is known
___________________ as discriminant function and its parameters are called
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discriminant coefficients.
___________________
2. The exercise starts with a profile of the object which is
___________________
measured on a set of variables such as age, income,
___________________
education or other background characteristics.
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___________________
___________________ Important Decision-making Techniques in

___________________ Multivariate Analysis
___________________ Multivariate analysis is a collection of methods for analyzing data
in which a number of observations are available for each object.
Techniques that take account of the various relationships among
variables are termed multivariate analysis or multivariate
techniques.
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Multivariate techniques are largely empirical and deal with the
reality; they possess the ability to analyze complex data. Besides
being a tool for analysing data, multivariate techniques also help
in various types of decision making.
The basic objective underlying multivariate techniques is to
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represent a collection of massive data in a simplified way. In other

words, multivariate techniques transform a mass of observation
into a smaller number of composite score in such a way that they
may reflect as much information as possible contained in raw data
obtained concerning a research study.
There exist a great variety of multivariate techniques which can be
conveniently classified into two broad categories viz. dependence
method and interdependence methods.
The various multivariate techniques are as under:
Multiple Regression
(c)
In multiple regression, we form a linear composite of explanatory

variables in such a way that it has maximum correlation with a
criterion variable.
This technique is appropriate when the researcher has single,
metric criterion variable which is supposed to be a function of
other explanatory variables. The main objective in using this 243
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technique is to predict the variability of the dependent variable Notes
based on its covariance with all the independent variables. One ___________________
can predict the level of dependent phenomenon through multiple
___________________
regression analysis model given the levels of independent
E
variables. ___________________
___________________
Multiple Discriminant Analysis
___________________
Through discriminant analysis technique, the researcher may
___________________
classify individuals or objects into one of two or more mutually
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exclusive and exhaustive groups on the basis of a set of ___________________
independent variables. Discriminant analysis requires interval ___________________
independent variables and a nominal dependent variable.
___________________
This analysis is considered as an appropriate technique when the
single dependent variables happens to be non-metric and is to be ___________________
classified into two or more groups depending upon its relationship

with several independent variables which all happen to be metric.
The objective in discriminant analysis happens to be to predict an
object’s likelihood of belonging to a particular group based on
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several independent variables.
Multivariate Analysis of Variance

Multivariate analysis of variance is an extension of bivariate
analysis of variance in which the ratio among groups variance
within groups is calculated on a set of variables instead of a single
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variable. This technique is considered appropriate when several

metric dependent variables are involved in a research study along
with many non-metric explanatory variables. But if the study has
only one metric dependent variable and several non-metric
explanatory variables, then we use the ANOVA technique. In other
words, multivariate analysis of variance is specially applied
whenever the researcher wants to test a hypothesis concerning
multivariate differences in group responses to experimental
manipulations.
Canonical Correlation Analysis

(c)
In this technique, an effort is made to simultaneously predict a set

of criterion variables from their joint co-variance with a set of
explanatory variables. Both metric and non-metric data can be
used in the context of this multivariate technique. The procedure
followed is to obtain a set of weights for the dependent and
244 independent variables in such a way that linear composite of the
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Notes criterion variables has maximum correlation with the linear
___________________ composite of the explanatory variables.
___________________
Factor Analysis
___________________
E
Factor analysis is by far the most often used multivariate
___________________ technique of research studies, specially pertaining to social and
___________________ behavioural sciences. It is a technique applicable when there is a
systematic interdependence among a set of observed manifest
___________________
variables and the researcher is interested in finding out something
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___________________ more fundamental or latent which creates this communality. It
___________________ seeks to resolve a large set of measured variables in terms of
___________________
relatively few categories, known as factors.
___________________ This technique allows the researcher to group variables into

factors, and factors so derived may be treated as new variables and
their values are derived by summing the values of the original
variables which have been grouped into the factor.
It is carried out on the correlation matrix. The basic purpose of
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factor analysis is to:
z Find out a few factors from which we can generate the
weighted average of the original variables.
z Identify few factors which help us to generate original
correlation matrix.
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z Help us in data interpretation.

z Identify each factor to represent a specific theoretical factor.
z It reduces the number of variables.
We make following assumptions while doing a factor analysis.
z We do not divide data into criterion versus predictor sets.
z We assume models are primarily having a linear relationship.
z Data are primarily interval scared.
Primarily, there are three methods of factor analysis. And it is
important to understand that all the methods do not necessarily
(c)
give same results. Using centroid method we try to maximize sum

of factor loadings without taking into account the signs. Principal
components method maximizes the sum of squared loadings, while
maximum likelihood method obtains factor loadings to explain
population correlation matrix based on sample correlation matrix.
Cluster Analysis 245
S
Notes
Cluster analysis consists of methods of classifying variables into
clusters. Technically, a cluster consists of variables that correlate ___________________
highly with one another and have comparatively low correlations ___________________
with the variables in other clusters. The basic objective of cluster
E
___________________
analysis is to determine how many mutually and exhaustive
groups or clusters, based on the similarities of profiles among ___________________
entities really exist in the population and then to state the ___________________
composition to such groups.
___________________
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Multidimensional Scaling ___________________
Multidimensional Scaling (MDS) allows a researcher to measure ___________________

an item in more than one dimension per item. The basic ___________________
assumption is that people perceive a set of objects as being more or
___________________
less similar to one another on a number of dimensions instead of
only one.
There are several MDS techniques often used for the purpose of
revealing patterns of one sort or another in interdependent data
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structures. If data happens to be non-metric, MDS involves rank
ordering each pair of objects in terms of similarity.
Latent Structure Analysis

This type of analysis shares both of the objectives of factor analysis
viz. to extract latent factors and express relationship of observed
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(manifest) variables with these factors as their indicators and to

classify a population of respondents into pure types. This type of
analysis is appropriate when the variables involved in a study do
not possess dependency relationship and happen to be non-metric.
Check Your Progress

True or False:
1. Cluster analysis allows a researcher to measure an
item in more than one dimension per item.
2. Multivariate analysis technique is considered
appropriate when several metric dependent variables
(c)
are involved in a research study along with many non-

metric explanatory variables.
246
Summary
S
Notes
Multivariate analysis is a logical extension of the univariate
___________________
analysis where two or more independent variables form the basis
___________________ for estimating the values of a dependent variable. The statistical
___________________ techniques used in multivariate analysis are called multivariate
E
___________________
techniques, e.g., identifying consumption habits in terms of age,
sex, socio-economic group, geographical location etc.
___________________
Multivariate techniques are largely empirical and deal with the
___________________
reality; they possess the ability to analyze complex data. Besides
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___________________ being a tool for analysing data, multivariate techniques also help
___________________ in various types of decision making.
___________________ There exist a great variety of multivariate techniques which can be
___________________ conveniently classified into two broad categories viz, dependence
method and interdependence methods.
Lesson End Activity

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Name a few major multivariate techniques and describe each
briefly.
Keywords
Univariate Analysis: The analysis is carried out with the
description of a single variable and its attributes of the applicable
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unit of analysis.
Bivariate Analysis: It involves the analysis of two variables for
the purpose of determining the empirical relationship between
them.
Linear Regression: It is the relation between variables when the
regression equation is linear: e.g., y = ax + b.
Cluster Analysis: It is the statistical classification technique in
which cases, data, or objects (events, people, things, etc.) are sub-
divided into groups (clusters) such that the items in a cluster are
very similar (but not identical) to one another and very different
(c)
from the items in other clusters.

Factor Analysis: Factor analysis is a statistical method used to
describe variability among observed, correlated variables in terms of
a potentially lower number of unobserved variables called factors.
Questions for Discussion 247
S
Notes
1. What do you understand by "multivariate analysis
___________________
techniques"? Explain their significance in research studies.
___________________
2. Write short note on Multi-regression analysis.
E
___________________
3. Write short note on Factor analysis.
___________________
4. Write short note on Cluster analysis.
___________________
5. Write Multi-dimensional scaling.
___________________
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___________________
Further Readings
___________________
Books ___________________
Bhattacharyya, D. K. (2009). Research Methodology. Excel Books ___________________
India.
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Pvt. Ltd.
Web Readings
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http://books.google.co.in/books?id=BB51TWe94EwC&printsec=fron
tcover&dq=multivariate+analysis&hl=en&sa=X&ei=1aH_ULGPK8
LirAe0toGQBg&ved=0CDMQ6AEwAQ
http://books.google.co.in/books?id=QGsKyIixFjAC&printsec=frontc
over&dq=multivariate+analysis+pdf&hl=en&sa=X&ei=HaL_UN_i
GoLxrQfSvoAI&ved=0CC0Q6AEwAA#v=onepage&q&f=false
http://www.unt.edu/rss/class/mike/6810/IntrotoMV.pdf
http://tx.shu.edu.tw/~PurpleWoo/Literature/!DataAnalysis/Method
s%20of%20Multivariate%20Analysis.pdf
(c)
(c)
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ES
UNIT 22: Market Research Proposal
Unit 22
249
S
Notes
Activity
Market Research Proposal

___________________
Define Research Proposal.
___________________
E
___________________
Objectives
___________________
topics: ___________________
\ Meaning of Research Proposal ___________________
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\ How to write Research Proposal ___________________
\ Contents of research proposal
___________________
Introduction ___________________
___________________
Marketing research is vital in all businesses and it is important
that a proposal is written before any formal research activity takes
place. Businesses often find themselves in a challenging situation
and need to find reliable answers to key questions in order to make
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the right decisions. The research proposal is a statement of intent
and explains the purpose for the research to take place.
Research Proposal
The formal marketing research proposal can be viewed as a series
of steps called the research process. To effectively conduct a
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research process, it is essential to anticipate all the steps and

recognize their interdependence. In research proposal, the
researcher should get the details of sponsor. The research proposal
could be framed up for one’s own company as an aid to marketing
decisions, for a client for commercial purpose or by a student of
marketing as an academic exercise. In all the three cases, a
researcher has to obtain certain details, which would facilitate the
researcher to design the market research proposal. The researcher
can collect the following information from the sponsor:
z The main objective of research and the detailed objectives of
the study and how the relevant information will be used by the
(c)
sponsor.
z The in-house information available to assist in preparing the
research plan. It should include the details on marketing mix,
marketing strategies and sales data.
250
z The market competition and industry conditions in the
S
Notes
market.
___________________
z The time framework for the completion of the project.
___________________
z Cost considerations, if any, which may have implications on
___________________
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the mode of operations and the area to be covered.
___________________
z Any other special considerations.
___________________
After collecting the above information and also personal discussion
___________________
with sponsor, the research agency/researcher can prepare a
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___________________ proposal for carrying out the research work. The following
___________________ Example will help in understanding details required from the
Hero-Honda company regarding market survey on “psychographic
___________________
analysis of Hero-Honda splendour owners”.
___________________
Example
Details from M/s Hero-Honda Ltd. for the market survey of Hero-
Honda splendour owners:
1. Product details: __________________
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(technical aspects). __________________
2. Give details on the __________________
exact product mix that is __________________
to be covered for the __________________
market survey. __________________
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3. List all present dealers __________________

of the product. __________________
4. List all facilities __________________
available to the customers. __________________
5. Which are the different __________________
market segments available for __________________
the product? __________________
6. Which are the known competitive __________________
products available in the market _________________
which fulfil the same needs _________________
(c)
of the users? _________________

7. Who are the major known _________________
competitors at present in _________________
the market? _________________
251
8. What is main objective of _________________
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Notes
this market survey? _________________ Activity
___________________
Write short note on how to
9. What coverage is desired _________________ write Research Proposal.
for this market survey? _________________ ___________________
E
___________________
10. What assistance will be provided _________________
by your company? _________________ ___________________
— Past sales records _________________ ___________________
— Industry demand _________________
___________________
— Sales literature _________________
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— Sales display _________________ ___________________
___________________
Check Your Progress
___________________
True or False:
___________________
1. To effectively conduct a research process it is not
essential to anticipate all the steps and recognize their
interdependence.
2. The main objective of research and the detailed
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objectives of the study and how the relevant
information will be used by the sponsor.
How to write a Research Proposal?

Research proposal is a document. Through this document, the
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decision maker and researcher enter into a contract. This

document prepared by the researcher, explains the activities to be
undertaken, to get the needed information. It also informs the
decision maker, the time taken to complete the investigation and
also the cost to be incurred.
Contents of Research Proposal

Following are the contents of research proposal:
Purpose of Proposed Research

z Goals and objectives to be stated.
(c)
z Scope of the study (what will be included and what will not be
included).
z Limitations if any due to time and money constraints, etc.
z What questions will the investigation answer?
252 Type of Study
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Notes
Is the study exploratory, descriptive or causal?
___________________
Explain how secondary data will be used?
___________________
Describe the method of gathering primary data.
___________________
E
___________________ Target Population/group to be Defined
___________________ Target population can be defined as the group of people from whom
___________________ the data is collected.
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___________________
Sample Size
___________________
Sample size is to be determined. At research proposal stage, this
___________________
will be approximate, since the response rate and accuracy required
___________________ cannot be predicted. If accuracy required is more, one has to choose
bigger sample size and vice versa. This would mean more cost and
time.
Sample Design
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Is the sample probabilistic or non probabilistic? If probabilistic,
what kind of sample? Is it random sampling or systematic random
sampling? etc.
Data Collection
Will a questionnaire be used? If yes, is it structured or
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unstructured or is it disguised or undisguised. Is the study

descriptive or causal or exploratory?
Will the questionnaire be filled in presence of researcher or to be
filled by respondent at their home without the presence of
interviewer? If the data collection is by mail questionnaire, what
incentive is being given in order to ensure response. Data collection
may include qualitative phase and could involve focus group, depth
interview, etc.
Research Instrument
Questionnaire or any other tool used to collect data and suitable
(c)
scales used as tools to analyze the data.

Benefits 253
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Notes
Description/explanation of cost-benefit analysis. How the value of
information is going to help the decision makers. ___________________
___________________
Estimation of the Cost of the Project
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___________________
Total cost of the project (proposed budget) and likely payoff. Also
___________________
how long will it take to complete the project.
___________________
Profile of the Research Firm ___________________
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Background of the firm, overview and skill of the researcher such ___________________
as qualification, experience, etc.
___________________
Presentation ___________________
___________________
Presentation should include the methodology used by the research
firm and all the above contents. It should be designed in such way,
to answer all the possible doubts of the clients about the research.
Researcher should also convince the client about the validity and
reliability of the research to be undertaken and its methodology.
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Ethical Angle of the Research Proposal
Can the research supplier guarantee that all discussions,
materials, and findings will be held in confidence? This is
especially critical in cases of new product feasibility studies,
particularly in the industrial sector with long product
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development/introduction cycles.
Questions to Address in Preparing your Research Proposal
Background Questions
z Why is this research important?
z What other studies have there been in this area?
z How will this research add to knowledge in this area?
z What do you want to find out?
What is the main question you wish to answer?
(c)
z What are the specific questions you will ask to address the
main question?
254 How you Will do Your Research
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Notes
z Will you be doing this research on your own or with others?
___________________
z Have you provided full details of anyone else you intend to
___________________
carry out this research with, including fieldworkers?
___________________
E
z Who are you targeting in this research?
___________________
z How many people or case files do you intend to interview or
___________________
read through?
___________________
z Where will the research take place?
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___________________
z Will participants be clearly and fully informed of the purpose
___________________
of the research study?
___________________
z How will you do this?
___________________
z How will participants be clear about the expectations of the
researcher?
z Do you have an information sheet and a consent form for
participants?
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z Supervisory arrangements – how do you intend your research
to be supervised and monitored and by whom?
z Who will be funding your research?
Timetable
When will your research start and finish?
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z Are there particular stages to the research - e.g. piloting, then

main research?
z If so, what are they?
z Is the timetable realistic?
z Is it influenced by external constraints or deadlines?
z How will you provide regular updates and progress reports
and to whom will you provide them?
Methodology
(c)
z What sort of data will you be collecting - e.g. are you intending
to count numbers, talk to people directly or a mixture of the
two?
z What is the main method you will use to carry out the 255
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research – e.g. questionnaire, face-to-face interviews, focus Notes
groups, paper reviews etc.? ___________________
z How will you select your sample? ___________________
z How will you recruit your sample?
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___________________
z How will you collect your data? ___________________
z Will you be paying participants? ___________________
___________________
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Ethical Issues
___________________
z Is there any potential risk or harm to participants or yourself?
___________________
z If so, what are the potential risks and what do you intend to do
___________________
to reduce them?
___________________
z How will you obtain informed consent?
z Where informed consent is unable to be provided, what will
you do?
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z How will your research comply with equal opportunities?
z How will participants be given the opportunity to complain?
z Will you be insured against professional negligence claims?
z How will you deal with complaints made against you by
participants?
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z How will you deal with any sensitive or criminal matters that
may be raised in the course of your research?
z What follow-up support will be available to participants should
they require it?
z What will you do if the focus of your research project shifts or
changes substantially from the proposal?
z If it goes outside the original remit, how will you notify the
council? You may need new approval.
Data Protection
(c)
z Will you be using recording or video equipment?

z How will you make sense of or analyse the data?
z How will the data be stored?
z For how long will the data be stored?
256 z How will it be disposed of?
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Notes
z How will you ensure confidentiality and anonymity of data?
___________________
z Who will have ultimate ownership of the data?
___________________
z If you are likely to need to contact a participant later, you need
___________________
E
to declare this now.
___________________
___________________ Dissemination
___________________ z In what form will your findings be presented - e.g. report,
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presentation, journal etc?
___________________
___________________
z How will you be disseminating your findings?
___________________ z To whom will you be disseminating your findings?
___________________ z How will you ensure anonymity in any publications?

z To whom does the research belong and have you thought about
intellectual property rights?
z It is a condition of approval that the research will be logged on
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the council’s database. The council would also like a summary
to be made available for the council’s website – would you be
willing to provide this?
Check Your Progress

Fill in the blanks:
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1. ______________ should include the methodology used by

the research firm and all the above contents.
2. Research proposal is a ______________
Summary
A marketing research proposal is a plan that offers ideas for
conducting research. The research depends on the field in which
the proposal is written. For example, a marketing research
proposal for a television network would examine the various ways
to measure viewing habits in order to create shows that would
(c)
better cater to the demographic. Ultimately, a market research

proposal details the who, the what, the where, the when and the
how of research and the information and costs associated with it.
Lesson End Activity 257
S
Notes
Discuss Ethical Angle of the Research Proposal.
___________________
Keywords ___________________
E
___________________
Marketing Research Proposal: It is a plan that offers ideas for
___________________
conducting research.
___________________
Target population: It can be defined as the group of people from
whom the data is collected. ___________________
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Sample size: The sample size of a statistical sample is the number ___________________
of observations that constitute it. ___________________
Sample Design: Sample design covers all aspects of how the ___________________
samples in our surveys are specified and selected. ___________________

1. What information the researcher can collect from the sponsor?
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2. “Research proposal is a document.” Elucidate.
3. What are the contents of research proposal?
4. Discuss the categories of Research instrument.
5. Highlight some of the Questions addressed in preparing your
research proposal.
CC
Further Readings
Books
India.
(c)

Pvt. Ltd.
258
Web Readings
S
Notes
http://www.deakin.edu.au/buslaw/infosys/research/students/docs/re
___________________ search-design.pdf
___________________
http://www.b2bmarketing.net/knowledgebank/demand-
___________________ generation/best-practice/how-write-market-research-proposal
E
___________________ http://www.ehow.com/how_4810622_write-marketing-research-
___________________ proposal.html
___________________ http://www4.caes.hku.hk/acadgrammar/report/resproposal/Market
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Research.htm
___________________
___________________ http://www.essaybay.com/research-proposal-writing-
help/marketing-research-proposal-help.php
___________________
___________________
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(c)
UNIT 23: Research Report Writing
Unit 23
259
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Notes
Activity
Research Report Writing

___________________
Write short note on Research
Report Writing
___________________
E
___________________
Objectives
___________________
topics: ___________________
\ Meaning of Research Report Writing ___________________
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\ Types of Research Reports ___________________
\ Guidelines for Writing a Report
___________________
\ Approaches to Report Writing
___________________
\ Steps in Writing Report
___________________
Introduction
The last step in the research process is the preparation and
presentation of the research report; the best of research efforts will
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be of little value unless the result can be summarized and
communicated to the management in a form that is both
understandable and useful. Preparation and presentation of the
research report is the most important part of the research process.
If the report is confusing or poorly written, all the time and effort
spent on gathering and analysing data would not carry any result.
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The purpose of this chapter is to give guidance in preparing a

research report which is simply the presentation of research
findings to a specific audience. We will discuss two vital
ingredients of this communication process. (1) the written research
report and (2) the oral presentation typically provided for those
who occupy executive positions. Along with this, we will review
some of the more popular devices for graphical and visual support
and how statistics can be used or misused to suit your needs.
Meaning of Research Report Writing

(c)
A report is a very formal document that is written for a variety of

purposes, generally in the sciences, social sciences, engineering
and business disciplines. Generally, findings pertaining to a given
or specific task are written up into a report. It should be noted that
reports are considered to be legal documents in the workplace and,
thus, they need to be precise, accurate and difficult to misinterpret.
260 There are three features that, together, characterize report writing
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Notes at a very basic level: a predefined structure, independent sections,
___________________ and reaching unbiased conclusions.
___________________ Predefined Structure: Broadly, these headings may indicate
___________________ sections within a report, such as an introduction, discussion, and
E
conclusion.
___________________
Independent Sections: Each section in a report is typically
___________________
written as a stand-alone piece, so the reader can selectively
___________________ identify the report sections they are interested in, rather than
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___________________ reading the whole report through in one go from start to finish.
___________________ Unbiased Conclusions: A third element of report writing is that
___________________ it is an unbiased and objective form of writing.
___________________
Importance
It is a record that reflects the investigation process or what the
researcher did. In a report each important term pertaining to
research problem is defined, limiting factors are recognized,
procedures are described, references are carefully documented,
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results are objectively recorded, and conclusions are presented
with scholarly spirit. It is a written document prepared by a
researcher for sharing ideas, information and experiences with
others.
For the following reasons, the report and its presentation are
important parts of the business research project:
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z They are the tangible products of the research effort. After the
project is complete and management has made the decision,
there is little documentary evidence of the project other than
the written report. The report serves as a historical record of
the project.
z Management decisions are guided by the report and the
presentation. If the first five steps in the project are carefully
conducted by inadequate attention is paid to the sixth step, the
value of the project to management will be greatly diminished.
(c)
z The involvement of many marketing managers in the project is

limited to the written report and oral presentation. These
managers evaluate the quality of the entire project based on
the quality of the report and presentation.
z Management’s decision to undertake business research in the 261
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future or to use the particular research supplier again will be Notes
Activity
influenced by the perceived usefulness of the report and the ___________________
What are the categories of
presentation. research reports?
___________________
Objective
E
___________________
The report may be meant for the people in general, when the ___________________
investigation has not been carried out at the instance of any third
___________________
party. Research is essentially a cooperative venture and it is
___________________
essential that every investigator should know what others have
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found about the phenomena under study. The purpose of a report ___________________
is thus the dissipation of knowledge, broadcasting of ___________________
generalizations so as to ensure their widest use.
___________________
A report of research has only one function, “it must inform”. It has
___________________
to propagate knowledge. Thus, the purpose of a report is to convey
to the interested persons the results and findings of the study in
sufficient detail, and so arranged as to enable each reader to
comprehend the data, and to determine for himself the validity of
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conclusions. Research results must invariably enter the general
store of knowledge. A research report is always an addition to
knowledge. All this explains the significance of writing a report. In
a broader sense, report writing is common to both academics and
organizations. However, the purpose may be different. In
academics, reports are used for comprehensive and application-
oriented learning. Whereas in organizations, reports form the basis
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for decision-making.
Check Your Progress

True or False:
1. The report may be meant for the people in general.
2. A research report is not always an addition to
knowledge.
Types of Research Reports

(c)
Depending on its intended audience, the research report may by

either technical or popular in orientation. While both approaches
describe the research study, its methodology, findings, conclusions
and recommendations, they can differ considerably in terms of
detail, writing style, use of technical terms and length. In general,
262
the higher the executive status of the audience, the shorter the
S
Notes report will tend to be.
Activity
___________________
Write short notes on These are explained as under:
guidelines for writing a report
___________________
Technical Report
___________________
E
The technical report is generally intended for other researcher, or
___________________
for research managers. The report should enable another
___________________ researcher to be a critic of methodology, check calculations and
___________________ accuracy and to follow everything which is done on a step-by-step
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basis. A brief definition of any technical term should be given.
___________________
___________________ The Popular Report

___________________ The popular report is intended for a more general audience, one
___________________ that is not conversant with the details of research methods and
terminology. Compared to the technical report, the presentation
will be a bit more lively with increased attention to headlines, flow
diagrams, charts, tables and occasional summaries for the purpose
of stressing major points.
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Because different kinds of audience may be interested in the
results of the same marketing research study, it is sometimes
necessary to write both a technical report and a popular report.
Check Your Progress

Fill in the blanks:
CC
1. The _______________ report is generally intended for

other researcher, or for research managers.
2. The _______________ report is intended for a more
general audience
Guidelines for Writing a Report

Researchers who are effective in report writing agree that there
are a series of guidelines which should be followed:
Consider the Audience

(c)
Make the report clear; use only words familiar to the readers and
define all technical terms. To make the comparison of figures
easier, use percentages, rounded off figures, ranks or ratios; put
the exact data in a table within the text or in the appendix. Use
graphic aids (charts, graphs, pictures, etc.) wherever they help 263
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clarify the presentation of data. Notes
Activity
___________________
What are the approaches to
Address the Information Needs Report Writing?
___________________
Remember the research report is designed to communicate
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information to decision makers. Make sure it clearly relates the ___________________
research findings to the objectives of management. ___________________
___________________
Be Concise, Yet Complete
___________________
Most managers will not want to read about the details of a
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research report. Knowing what to include and what to leave out is ___________________
a confusion. ___________________
___________________
Check Your Progress
___________________
True or False:
1. The research report is designed to communicate
information to decision makers.
2. Most managers will want to read about the details of a
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research report.
Approaches to Report Writing

Two main attitudes must be cultivated while preparing to write a
research report:
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z Attitude 1: Adopt the fresh mind approach (FMA).

z Attitude 2: Adopt the KISS approach (keep it short and simple).
Fresh-Mind Approach (FMA)

Normally we proceed with a preoccupied mind as if the solution is
available and the report is to be made suiting that solution. It is
essential that a researcher must clear his mind of all
preoccupations about the solution to the problem.
If the data collection, investigation and analysis are done properly,

the interpretation and recommendations may be quite different
(c)
from what the researcher expected. Developing the fresh mind

approach will help in avoiding the mindset about a situation,
which is too common when dealing with a familiar work situation.
We are always able to find fault with someone else’s work, while
we fail to see what is wrong with our own.
264
In light of this, the person who is going to assess your work will
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Notes adopt the above strategy of evaluating your work if sufficient
___________________ originality, genuineness and a fresh approach has not be adopted
by you. The project assessor certainly possesses the skills of
___________________
assessing whether the work is done with FMA or otherwise.
___________________
E
KISS Approach (Keep it Short and Simple)
___________________
Your project work is going to be read and evaluated by someone who:
___________________
z Maybe outside your organization.
___________________
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___________________ z May not be quite familiar with the field of study.
___________________ z May not be conversant with technical terms.
___________________ Therefore, you must write the project study such that:
___________________ z It is understandable.
z It is simple.
z It provides sufficient background information.
z It creates a clear picture in the mind of your work
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environment.
z It helps him understand the problem under study.
For the above you must:
z Use short sentences.
z Use simple language.
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z Use logic.
Short sentences will help in avoiding grammatical mistakes, thus
creating a good impression of the researcher.
Avoid use of technical jargon. This may cause harassment to the
assessor. If the use of technical terms in unavoidable, it is desired
to include glossary of terms in the project report. Sometimes the
researcher uses abbreviations. It is recommended that a page
explaining the full form of abbreviations may also be included. In a
nutshell, short sentences and simple language should be used
throughout the report.
(c)
Tips to be followed:
z Use a friendly and informal tone.
z Explain things clearly.
z Avoid overloading with information. 265
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Notes
z Use relevant anecdotes. Activity
___________________
Highlight the stages in writing
z Keep sentences, and paragraphs, short. a report.
___________________
z Choose simple and familiar words.
E
___________________
z Avoid long phrases. Say although’ rather than "in spite of the
___________________
fact that”.
___________________
z Explain jargon and technical terms clearly.
___________________
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1. Developing the fresh mind approach will help in ___________________
avoiding the mindset about a __________________
___________________
2. __________________ sentences will help in avoiding
grammatical mistakes.
Steps in Writing Report

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The method of carrying out the study, assembling of data and
compiling of a report should be carried on in the following eight
stages:
1. Preparation
2. Gathering the information
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3. Sorting, selecting, arranging and recording the material

4. Writing the introduction
5. Recording inferences
6. Writing recommendations
7. Preparing the report presentation
8. Typing the report
Preparation
Ready yourself mentally for the task of project writing as explained
(c)
in Fresh Mental Approach (FMA).

Be sure you accurately understand the purpose of your report and
its objectives as defined in the project synopsis or terms of
reference.
266 Put yourself in the position of the evaluator and ask yourself these
S
Notes questions:
___________________
z What information, i.e., evidence and justification, would I
___________________ require to arrive at a logical inference and make the right
___________________ decision?
E
___________________ z As an evaluator, how much, if anything, do I already know
about this subject?
___________________
___________________ Decide on the following issues:
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___________________ z Method of study.
___________________ z What information do you need?
___________________ z Who is going to be involved?

___________________ z With whom you going to carry out your study?
z When are you going to carry out your study?
z Project plan–time schedule to complete the task.
It is extremely useful to relate the plan to a time schedule so that
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you know what to do and when, in order to complete the report by
the required deadline. (Prepare a CPM by breaking down the
project activities into sub-tasks and allocate duration to each sub-
task).
Gathering the Material

CC
At this stage, don’t attempt to write the report. Collect all the
information i.e., facts, figures and ideas, about the subject by
whatever means available. Some of the means used in gathering
the information are briefly given as under:
By Observation
Don’t rely on your memory. While observing an operation or
coincidence or a situation, record the sequence in detail. Look at it,
watch it, time it and record everything you see.
By Reading
(c)
Published work of other researchers on similar issues, factual

documentation produced within the organization (if the study is
about an organization), and documentation of professional bodies
will often provide enough information relative to your subject. Give
credit in your report to the source of such information.
By Interviews 267
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Notes
Interviews can be formal or informal depending upon their nature
and the person being interviewed. Keep the following points in ___________________
mind: ___________________
Plan your interview
E
z ___________________
z Give your interviewee notice of your subject ___________________
z Prepare your questions beforehand ___________________
___________________
z Don’t rush an interview
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___________________
z Focus on substance
___________________
z Be accurate
___________________
By Discussion ___________________
Hold discussions with your colleagues, guide, and any interested
person in the subject. Respect their views.
By Surveys
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Surveys are carried out to assess customer opinion and reaction.
These are also useful in understanding people’s attitudes.
Questionnaires are useful instruments in carrying out surveys.
Care must be taken in preparing the questionnaire and, if in
doubt, seek the advice of your guide. Include copies of the
questionnaires and of their analysis in your report.
CC
By Enquiries
Enquiries can be made from manufacturing or service industry
through letters, fax or telephone.
Explain:
z Who you are?
z Purpose of your enquiry.
Be polite while asking for their help. Generally you will receive a
favourable response and these sources of information can be most
(c)
valuable. Give credit to such informants and always thank them

for their help. Acknowledge their support in your report. Use your
knowledge and experience
268 By Experiment
S
Notes
Try something and see if it works. Record the details and verify the
___________________
results. If there is any doubt about the accuracy of the information,
___________________ try and check and verify it from another source.
___________________
If it is not possible to verify the information, discard it or quote it
E
___________________ as uncorroborated. Always be sure of the facts.
___________________ Make liberal use of visuals, i.e., diagrams, maps, charts,
___________________ photographs, statistical tables. Even sometimes it may be
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appropriate to attach sample products to illustrate and explain
___________________
your text. This will make your report visually attractive and
___________________
interesting.
___________________
Avoid using memory and prejudice. These can often lead to
___________________ distorted facts. As a report writer always carry a notebook with
you and note down pieces of information or ideas or things to do at
the time they come to you, instead of relying upon the memory.
Once you have written it down you can concentrate on something
else.
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At this stage you will have sufficient information in the form of
notes, collections from various published data, survey data and so
on. The next step is to sort it all out.
Sorting, Selecting, Arranging and Recording Material

Having assembled all your material, check to ensure that you have
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all you need to support your arguments. Arrange it in logical

sequence, start to finish, ensuring a natural flow. The
questionnaires, surveys and any other similar document should be
explained properly. To ensure clarity to the readers, adequate
notations should be used for visuals, i.e. diagrams, maps, charts,
photographs, statistical tables.
If illustrations are used to explain a particular part of the text and

are not going to be referred to several times, insert them in the
appropriate position in the text.
If the evaluator needs to refer to these illustrations several times

(c)
or if they form a supportive material it should be put in the

appendices section at the end of the report.
Writing the Introduction 269
S
Notes
While writing the introduction take following points into
consideration: ___________________
z Create a background of the organization and work situation ___________________
for which the project work is being done.
E
___________________
z Describe the purpose of study. ___________________
z Describe the method of study. ___________________
___________________
z Explain difficulties encountered in the preparation of report.
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___________________
z Introduce yourself, your institution/organization briefly.
___________________
z Ensure continuity between all sections.
___________________
Recording Inferences ___________________
The conclusions or findings should flow from the outcome of the
investigations. These findings should lead to concrete
recommendations. While writing conclusions, the objectives of the
study should be kept in mind. This will facilitate in understanding
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the quality of investigations and gauge the success of work.
Summary of the problem areas followed by explanation of the
various alternative solutions to the problem should be undertaken
and the reason for accepting or rejecting the possible alternative
should be explained logically.
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Writing Recommendations
While writing recommendations you must adopt a positive attitude
and enlist those points first, which you really want to be done. You
must adopt a constructive approach.
Report Presentation
Stitch together all the different threads of information into a
coherent whole. Present the data in the form as suggested in the
chapter plan. Write the first draft. Discuss with your guide and
incorporate the suggested modifications. Revise the document and
type it finally. The graphics play a significant role in report image
(c)
and care must be taken about the visual aspects of the report.
270 Visual Aspects of the Report
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Notes
Before organizing the report, you must think and plan:
___________________
z What graphics are to be used?
___________________
z How many graphics are to be used?
___________________
E
___________________
z Where to use graphics in the text?
___________________ The graphics used in reports are normally:
___________________ z Charts
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___________________ z Graphs
___________________ z Photographs
___________________ z Maps
___________________
Typing the Report
For report typing, A4 size of paper is recommended. It is of a
standard size and will present no difficulty with covers, binding,
photocopying and dividing cards between the sections.
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Make sure:
z Each section of the report starts on a new page.
z Indicate where capitals, italics and underlining are required.
z If using DTP indicate bold, capital, front type and font size
required.
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z All headings and sections and subsections are clearly

indicated.
z Indicate where any indentations of the text are required for
the ease of reading.
z It is recommended that a clear system of identification is
issued for sections, subsections and paragraphs for the speed
of reference.
Check Your Progress

Fill in the blanks:
(c)
1. While observing an ____________ or a situation, record

the sequence in detail.
2. ____________ can be formal or informal depending upon
their nature and the person being interviewed.
Summary 271
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Notes
An objective of organizing research report writing is to allow
___________________
people to read your work selectively. A proper research report
includes the following sections, submitted in the order listed, each ___________________
section to start on a new page. Some journals request a summary
E
___________________
to be placed at the end of the discussion. Some techniques articles
___________________
include an appendix with equations, formulas, calculations, etc.
Some journals deviate from the format, such as by combining ___________________
results and discussion, or combining everything but the title, ___________________
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abstract, and literature as is done in the journal Science. ___________________
___________________
What are the points to be kept in mind while typing the Report?
___________________
Keywords
Report: A report is a very formal document that is written for a
variety of purposes, generally in the sciences, social sciences,
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engineering and business disciplines.
Technical Report: The report should enable another researcher
to be a critic of methodology, check calculations and accuracy and
to follow everything which is done on a step-by-step basis.
Popular Report: The popular report is intended for a more
general audience, one that is not conversant with the details of
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research methods and terminology.

Surveys: Surveys are carried out to assess customer opinion and
reaction.

1. What are the three features of research report writing?
2. Highlight the Importance of research report writing.
3. What are the objectives of research report writing?
(c)
4. Distinguish between technical and popular report.

5. What is Fresh Mind Approach (FMA)?
272
Further Readings
S
Notes
___________________ Books
India.
___________________
E
___________________
___________________
___________________
UP
___________________
___________________
___________________ Pvt. Ltd.
___________________
Web Readings
http://dwb4.unl.edu/Chem/CHEM869K/CHEM869KLinks/www.ruf.
rice.edu/~bioslabs/tools/report/reportform.html
http://www.ruf.rice.edu/~bioslabs/tools/report/reportform.html
E-
http://www.valpo.edu/geomet/geo/courses/geo361/presenting.html
http://www.fao.org/docrep/W3241E/w3241e0b.htm
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(c)
UNIT 24: Oral and Written Reports
Unit 24
273
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Notes
Activity
Oral and Written Reports

___________________
Write short note on Oral
Report
___________________
E
___________________
Objectives
___________________
topics: ___________________
\ Oral Reports ___________________
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\ Nature of Oral Reports ___________________
\ Written Reports
___________________
Introduction ___________________
___________________
The last and final phase of the journey in research is writing of the
report. After the collected data has been analyzed and interpreted
and generalizations have been drawn the report has to be
prepared. The task of research is incomplete till the report is
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presented.
Reports can be, broadly of two types: oral and written. Oral
presentation is essentially a spoken form of technical writing,
which involves both the activity and the art of public conversation.
With the spread of modern media and technology, oral
presentation has become a significant means of effective
CC
communication for scientists, engineers, and other technical

personnel. The presentation situation is based on reciprocal action
between the presenter and the audience. Moreover, oral
presentation helps to broaden the thinking process of the writers of
the project report as it involves the reader's participation face to
face. Therefore, it becomes important for a presenter to acquire the
skills of presentation.
Writing of a report is the last step in a research study and requires
a set of skills somewhat different from those called for in respect of
the earlier stages of research. This task should be accomplished by
the researcher with utmost care.
(c)
Oral Report
An oral report is any presentation of information through the
spoken word. Oral presentation of the report is really a challenge
to the researcher than the written presentation because of direct
274 interaction with the audience. Any sign of faltering during an oral
S
Notes presentation will make an unfavourable impression on the
___________________ audience and may lower the self confidence of the researcher.
Therefore, oral presentation requires extra effort compare to the
___________________
written presentation of a report.
___________________
E
The ability to communicate orally is extremely important to
___________________
effective management in general and to the marketing research
___________________ functions in particular. Whenever the researcher has to present
___________________ the report in person, the researcher’s skills will be in exposition, he
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may learn directly the reactions, he may have to answer
___________________
unexpected questions on the spot and may counter any opposition
___________________
or scepticism from the clients. The point to be remembered while
___________________ doing oral presentation is language used, time management, use of
___________________ graph, purpose of the report, etc. Visuals used must be
understandable to the audience. The presenter must make sure
that presentation is completed within the time allotted. Some time
should be set apart for questions and answers.
Oral presentations are very popular forms of communication in
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technical areas – presentations of doctoral theses, lectures,
presentation of papers, etc. Therefore, broadly speaking, one can
think of four different categories of audience:
z Customers and clients in a business endeavour
z Junior or fellow employees in one’s organisation
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z Fellow professionals (including juniors too) in one’s field

/organisation
z One’s superiors in the set-up one is working for
It is obvious that oral presentations are called for increasingly in
this age of fast economic growth and competition – and, these
opportunities keep increasing as one goes up the ladder of
responsibility within an organisation. Professionals in the art of
oral presentation are, therefore, ever sought after by managers or
executives to imbibe instructions or skills in this respect. The best
practical guide in this regard is often attending such activities,
wherein experienced and expert personnel deliver the
(c)
presentation. After all an oral presentation of technical material is

in its essence the spoken form of a technical writing.
For a beginner, in both these aspects, deliberate and careful
preparations are needed. And, after sometime, depending on the
innate capability, the prospective presenter (as the aspiring writer) 275
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begins gaining ground. Some aspirants, as in any field under the Notes
sum, outshine others as ace writers or oral presentation-makers. ___________________
Considerations ___________________
E
A researcher has to consider the following when he has been asked ___________________
to make an oral presentation: Consider the audience to whom the ___________________

report has to be presented and prepare the same so as to
___________________
incorporate the technical requirements. If the researcher has been
___________________
asked to make an oral presentation of the research findings, the
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researcher has to prepare the report to present the same to the ___________________
clients accordingly. Despite the cost, time, and effort an effective ___________________
presentation requires, there are many sound reasons for doing oral
___________________
and projected presentations in addition to conventional written
reports. By far the most compelling and important reason is simply ___________________
that people recall a vastly higher percentage of what they see and
hear than what they only see or hear.
Nature of an Oral Presentation

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Opening: A brief statement can be made on the nature of
discussion that will follow. The opening statement should explain
the nature of the project, how it came about and what was
attempted.
Finding/Conclusion: Each conclusion may be stated backed up
by findings.
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Recommendation: Each recommendation must have the support

of conclusion. At the end of the presentation, question-answer
session should follow from the audience.
Method of presentation: Visuals, if need to be exhibited, can be
made use of. The use of tabular form for statistical information
would help the audience.
Points to remember in oral presentation:
Language used must be simple and understandable.
z Time Management should be adhered.
(c)
z Use of charts, graph, etc., will enhance understanding by the

audience.
z Vital data such as figures may be printed and circulated to the
audience so that their ability to comprehend increases, since
they can refer to it when the presentation is going on.
276 z The presenter should know his target audience well in advance
S
Notes to prepare tailor-made presentation.
___________________
z The presenter should know the purpose of report such as “Is it
___________________ for making a decision”, “Is it for the sake of information”, etc.
___________________
E
Preparation for an Oral Presentation
___________________
Preparations for delivering an oral presentation, about a given
___________________ technical subject/topic, begin from the very moment you conceive
___________________ about the very exercise itself. Every stage of this conceptual
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activity unfolds what is required of the person, the material and
___________________
the exercise – this mental image is a blue print of the preparations
___________________
expected on your part.
___________________
However, the broad outlines for an orderly (and logical) delivery,
___________________ the following frame work of steps can be written down:
z Making a comprehensive assessment of the situation: the
whole process of oral presentation.
z Sitting down, having collected the source and reference
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material, and writing down the material to be talked about
before the audience. Beginning to write, correct, enrich, revise,
and rewrite is the mantra.
z Now, or even before or in conjunction with the writing part,
prepare the graphic aids. Graphic aids comprise slides, charts,
maps, etc. Use of as many graphic aids as are available add to
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the flavour and effectiveness of the efforts – however,

beginners should beware of un-necessary (or too much) volume
of these aids.
z Rehearse the presentation – preferably before your
colleagues/friends. Take note of suggestions/criticisms .
z Finally, making the presentation.
Starters in this field of technical communication are more often
than not overcome by nervousness due to stage fright. Jumping
into the fray, so to say, is the only (and the best) way to launch
oneself into the role of an oral presenter – once a hesitant, fearful
(c)
non-swimmer is into the water, he it is who turns out to be an ace

swimmer with repeated efforts. With the passage of time
uncertainty on one’s mental plane vanishes and an appropriate
tone and rapport with the audience gets established. The test of
the success in this regard lies in the ever-narrowing gap between
the information you are presenting and the amount absorbed by 277
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the listeners. These are the days of talking to groups, technical Notes
lectures, and seminars in all scientific and professional ___________________
environments.
___________________
What does an Oral Presentation Achieve? – Its Intrinsic
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___________________
Objectives
___________________
It is natural that speaking (such as in an oral presentation) has its
___________________
specific objectives, vis-à-vis, its audience. Speaking can be resorted
to for: ___________________
UP
___________________
Informing and Guiding
___________________
With the purpose of informing and/or guiding the speaker it may
___________________
simple update the listeners on the topic. Here, listeners can ask for
___________________
classifications and further explanations/implications – otherwise,
no action on the part of the audience is required.
As far as guiding the audience (say, the work force, work
supervisors, estimators, etc.) is concerned more time is to be
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provided for proper interaction – clearing confusions, doubts, etc.
Explaining Procedures
Its audience is expected to be people with some background and
experience about the technical job at hand. And, the best way to
make them aware of the procedure to be followed (say, operating a
CC
piece of equipment, constructing a specialised item of work,

performing an experiment, working a computer operation, work
out a new design effort, or executing some specialised job, etc.) is
the oral method – aided by actual piece of equipment at hand,
graphic aids or a film-reel exhibition.
This is a special session in which lay people may not participate.
Interaction by way of questions, clarifications, or demonstrations is
an essential part of the programme. It may also involve hands-on
experience for the target group.
Persuasion and Motivation

(c)
This mode of oral presentation requires intense interaction and

involvement of the audience. The speaker has to kindle a spark of
interest in the listeners to act in a particular way – “Judge a man
by his questions rather than his answers”:
278 You might have to speak about the need to hold more constructive
S
Notes and interactive meetings, at regular intervals for their persuasion.
___________________
The success of such speeches is basically dependent on one’s
___________________ persuasive/motivating powers. Experienced minds can easily
___________________ perceive the positive impact of the speech on the listeners, who
E
shall leave the place ready to implement what is intended to be
___________________
done.
___________________
___________________
Advantages of Oral Presentations
UP
___________________
z Presentations dramatize the results of a survey, so they
recalled more vividly and in greater detail than written
___________________
reports.
___________________
z They are interactive, so the presenter can listen to questions,
___________________
ask for clarification, and respond immediately.
z They provide audience feedback, so the presenter can be sure

sponsors and information seekers understand results.
z They address a group of information seekers simultaneously,

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allowing audience members to converse with one another.
z They are compelling because the information can’t be readily

ignored, while written reports are often set aside.
Disadvantages of Oral Presentations

z Report presentations are costly in terms of money, researcher
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time and effort, and the information seekers’ time.
z They are perishable so they are always extra or supplementary

to a written report.
z They are demanding on the researcher’s expertise, not only on

technical matters, but also speaking before a group.
z They are time and location specific, so they may require rigid
scheduling and travel by the researcher or information
seekers.
z They are complex and difficult to control, so they are many

(c)
opportunities for something to go wrong or badly.

279
Check Your Progress
S
Notes
Fill in the blanks: Activity
Write___________________
short note on Written
1. The success of such speeches is basically dependent on Report.
___________________
one’s _________________ powers.
E
___________________
2. The _________________ should know his target audience
___________________
well in advance to prepare tailor-made presentation.
___________________
Written Report ___________________
UP
A Report must truly reflect the work and care that has been ___________________
exercised throughout research investigation. The report writer ___________________

must have a complex group of investigation and then should able ___________________
to use various means of communication (words. symbols. charts.
___________________
illustrations etc) to transmit their understandings and findings to
others.
Reports are a highly structured form of writing often following
conventions that have been laid down to produce a common format.
E-
Structure and convention in written reports stress the process by
which the information was gathered as much as the information
itself. The skills involved in writing a report will help you to
condense and focus information, drawing objective findings from
detailed data Though who need to develop competence in effective
report writing may find the following procedural out line useful.
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Types of Written Report

Written report may be classified based on whether the report is a
short report or a long report. Long report can further be classified
based on technical report or non technical report.
Following are the Various Types of Written Reports:
Reports can be classified based on the time-interval such as:
1. Daily
2. Weekly
3. Monthly
(c)
4. Quarterly
5. Yearly
280 Type of reports:
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Notes
1. Short report
___________________
2. Long report
___________________
3. Formal report
___________________
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4. Informal report
___________________
___________________
5. Government report
___________________ Short Report
UP
___________________
Short reports are produced when the problem is very well defined
___________________ and if the scope is limited. For example, Monthly sales report. It
___________________ will run into about five pages. It consists of report about the
progress made with respect to a particular product in clearly
___________________
specified geographical locations.
Long Report
This could be both a technical report as well as non-technical
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report. This will present the outcome of the research in detail.
Technical Report: This will include the sources of data, research
procedure, sample design, tools used for gathering data, data
analysis methods used, appendix, conclusion and detailed
recommendations with respect to specific findings. If any journal,
paper or periodical is referred, such references must be given for
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the benefit of reader.

Non-technical Report: This report is meant for those who are not
technically qualified. For e.g. Chief of the finance department. He
may be interested in financial implications only, such as margins,
volumes, etc. He may not be interested in the methodology.
Formal Report
A formal report collects and interprets data and reports
information. It may, in the course of doing these tasks, include an
analysis and make recommendations for a course of action.
(c)
Example: The report prepared by the marketing manager to be

submitted to the Vice-President (marketing) on quarterly
performance, reports on test marketing.
Informal Report 281
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Notes
The report prepared by the supervisor by way of filling the shift log
book, to be used by his colleagues. ___________________
___________________
Government Report
E
___________________
These may be prepared by state governments or the central
___________________
government on a given issue.
___________________
Example: Programme announced for rural employment strategy as
___________________
a part of five-year plan or report on children’s education, etc.
UP
___________________
Precautions in Writing Reports
___________________
Research report is a channel to communicate the research findings
___________________
to the readers of the report. A good research report is that which
does this task efficiently and effectively the following precautions ___________________
are to be taken to prepare a good research report:

z The research report should be long enough to cover the subject
and short enough to retain the reader’s interest
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z A research report should not be dull and should not sustain
reader’s interest.
z Abstract terminology and technical Jargon should be avoided
in the research report. The matter should be conveyed as
simply as possible.
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z Charts, Graphs and statistical tables should be used to acquire

with knowledge on the content
z The layout of the report should be well planned in accordance
with the research problem
z The research report should be free from grammatical mistakes
and should use techniques of composition of report writing
such as quotations, foot notes, documentation, proper
punctuation and use of observations
z The research report should present the logical analysis of the
subject matter.
(c)
z The report should show originality and should be an attempt

to solve some intellectual problem
z The report should also indicate the policy implication relating
to the problem and consideration
282 z Appendices should be enlisted in respect of all the technical
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Notes data in the report.
___________________
z Index should also be prepared and appended at the end
___________________
z Report must be attracted in appearance, neat and clean,
___________________ whether typed or printed.
E
___________________ z Bibliography of the sources of information must also be
___________________ appended
___________________ z Confidence limits and constraints considered for the study
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___________________ should also be mentioned
___________________ z Objective of the study, nature of the problem, methods

employed and analysis technique adopted must also be clearly
___________________
stated in the report.
___________________
Check Your Progress
Fill in the blanks:
1. _______________ is a channel to communicate the
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research findings to the readers of the report.
2. _______________ reports are produced when the
problem is very well defined and if the scope is limited.
Summary
Making an oral presentation is somewhat difficult compared to the
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written report because the reporter has to interact directly with

the audience. The point to be remembered while doing oral
presentation is language used. Time management, use of graph,
purpose of the report, etc. Visuals used must be understandable to
the audience. The presenter must make sure that presentation is
completed within the time allotted. Sometime should be set apart
for questions and answers.
We have discussed in this unit the various facets of oral
presentation, classification and guidelines for preparing oral
presentation. The report writer must have a complex group of
(c)
investigation and then should able to use various means of

communication (words. symbols. charts. illustrations etc) to
transmit their understandings and findings to others. Research
report is a channel to communicate the research findings to the
readers of the report. Written report may be classified based on
whether the report is a short report or a long report. It can also be 283
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classified based on technical report or non technical report. Notes
___________________
Highlight the precautions in writing reports.
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___________________
___________________
Keywords ___________________
Opening Statement: The opening statement should explain the ___________________
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nature of the project, how it came about and what was attempted.
___________________
Oral Report: The oral report is the type of report which is ___________________
presented orally by the reporter.
___________________
Recommendation: Recommendation means something that
___________________
recommends (or expresses commendation) of a person or thing as
worthy or desirable.
Short Report: Short reports are produced when the problem is
very well defined and if the scope is limited.
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Long Report: This could be both a technical report as well as non-
technical report.
technically qualified.
Formal Report: A formal report collects and interprets data and
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reports information. It may, in the course of doing these tasks,

include an analysis and make recommendations for a course of
action.
Informal Report: The report prepared by the supervisor by way
of filling the shift log book, to be used by his colleagues.
Government Report: These may be prepared by state
governments or the central government on a given issue.

1. “Oral presentation of the report is really a challenge to the
(c)
researcher than the written presentation because of direct

interaction with the audience.” Elucidate.
2. What are the different categories of audience?
3. What is the nature of an Oral presentation?
284
4. How you will prepare for an Oral Presentation?
S
Notes
___________________
5. What does an Oral Presentation Achieve?
___________________ 6. What are the types of Written Report?
___________________ 7. What are the precautions in Writing Reports?
E
___________________
___________________
Further Readings
___________________ Books
UP
___________________ India.

___________________
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Pvt. Ltd.
Web Readings
http://www.prismnet.com/~hcexres/textbook/oral.html
http://www.ehow.com/how_5135325_write-oral-presentation.html
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http://www.itchybrainscentral.com/custom-write/oral-
presentation.html
http://www.wisegeek.org/what-is-an-oral-report.htm
http://www.columbia.edu/itc/seas/E3810-lab/oreport.html
(c)
UNIT 20: Case Study
Unit 25
285
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Notes
Case Study
___________________
___________________
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___________________
Objectives
___________________
After analyzing this case, the student will have an appreciation of the
___________________
Case Study: Nescafe
UP
___________________
The hot beverages market in India has predominantly been
dominated by tea, but lately the coffee market has come up as a ___________________
buoyant force. The rapid growth of the coffee market in the past
___________________
decade provides an insight into the consumers' mind who does not
want to remain confined to the traditional tea drinking habits, ___________________
and wants to explore new drinks. The upcoming chain of coffee
houses such as Barista, Café Coffee Days, Georgia, Nescafe Bars,
etc account for the fact of the growing popularity of coffee
amongst the Indian consumers.
Nescafe is the most visible player in the coffee market. It holds
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more than a 55% market share of the coffee market across India.
The two primary brands of Nescafe available in India are Nescafe
Sunrise and Nescafe Classic. Nescafe Classic is the major player
in the northern and the western parts of India covering the states
of Punjab, UP, Delhi, Gujarat and Mumbai. In the south Indian
market the most visible player is Nescafe Sunrise. It covers the
states of Tamil Nadu, Kerala, Andhra Pradesh and Karnataka.
One of the closest competitors of Nescafe in the Indian coffee
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market is Bru. The upcoming cafes such as Barista and Café

Coffee Day also stiffen the competition. The presence of various
players in the coffee market has made it more dynamic. To
survive in the market today requires more than just what the
product has to offer. Marketing of the product has gained
unprecedented importance for the players. Various marketing
strategies are employed taking into consideration the customer
preferences, competitor strategies, market volatility and the
prevalent market dynamics.
The distribution network of Nescafe is very strong. It is present in
3 lac outlets out of a universe of 15 lacs. Thus, it penetrates to the
base consumer anywhere and everywhere.
It has established such high levels of brand recognition that when
one thinks of coffee, Nescafe strikes one's thought process almost
(c)
as if it were the definition of coffee.

The general perception in the minds of people is that coffee is not
meant for the general masses and coffee is generally consumed by
the affluent section of society. This perception has to change by
making coffee available to general masses at strategic locations.
This is being done by the company by positioning mobile vending
Contd….
286 machines at various strategic locations that are frequented by the
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Notes general masses.
The pricing of Nescafe Classic is significantly higher than its
___________________
competitors Bru. The reason being Bru contains 70 % coffee and
___________________ 30 % chickory whereas Nescafe contains 100 % pure coffee.
Notwithstanding this fact, Nescafe has come up with Nescafe
___________________ Sunrise which has competitive pricing with respect to its rival
E
Bru.
___________________
The major players vis-à-vis Nescafe are:
___________________
Bru: Of late, Bru has also started its sampling activities in office
___________________ canteens etc. where it samples free coffee and also free sampling
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of Bru coffee powder sachet with it.
___________________
Georgia: It is another major competitor of Nescafe in the vending
___________________ business.
___________________ Question:
1. What should Nescafe do?
___________________
Source: S N Murthy and Dr U Bhojanna (2010). “Business Research Methods”, Excel Books
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(c)
Glossary
Glossary
287
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Notes
Alternate Hypothesis: An alternative hypothesis is one that specifies ___________________
that the null hypothesis is not true. The alternative hypothesis is false
when the null hypothesis is true and true when the null hypothesis is ___________________
false.
E
___________________
ANOVA: ANOVA is a statistical technique. It is used to test the equality ___________________

of three or more sample means.
___________________
Applied Research: Applied research refers to scientific study and
___________________
research that seeks to solve practical problems.
UP
___________________
Attitude: A settled way of thinking or feeling typically reflected in a
person's behaviour. ___________________
Bivariate Analysis: It involves the analysis of two variables for the ___________________
purpose of determining the empirical relationship between them.
___________________
Case Study Approach: A detailed intensive study of a unit, such as a
corporation or a corporate division that stresses factors contributing to its
success or failure.
Causal Design: It is the study of cause and effect relationships between

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two or more variables.
Census: A census is appropriate if the size of population is small.
Classic Experimental Designs: In this experiment method, subjects are

assigned randomly in to control and treatment groups, also amenable to a
variety of ANOVA designs.
Cluster Analysis: It is the statistical classification technique in

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which cases, data, or objects (events, people, things, etc.) are sub-divided
into groups (clusters) such that the items in a cluster are very similar
(but not identical) to one another and very different from the items in
other clusters.
Competency: It is defined as the smallest unit of on-the-job behaviour

Constant Sum Scale: Constant sum scale is one of the methods of

comparative scaling. In this method, the respondent is instructed to
allocate some constant sum (points) to various features given, based on
the importance of attribute to the respondent.
(c)
Decision Making: the cognitive process of reaching a decision.
Decision: It refers to the selection of the best or favourable alternative

out of several alternatives.
Decision-making problems: It deals with the selection of a single act

from a set of alternative acts.
288 Decision-making: Decision-making process is continuous and
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Notes indispensable component of managing any organization or business
activities.
___________________
Degree of Freedom: It tells the researcher the number of elements that
___________________
can be chosen freely.
___________________
E
Delphi Technique: This is a process where a group of experts in the
___________________ field gather together.
___________________ Direct-Indirect Observation: In direct observation, the actual
___________________ behaviour or phenomenon of interest is observed.
UP
___________________ Email Questionnaire: It is a new type of questionnaire system that
___________________
Empirical: The observations and propositions which are primarily based
___________________
on some sense experiments or derived from experience by methods of
___________________ inductive logic including mathematics and statistics.
External Secondary Data: The data collected by the researcher from

outside the company.
Factor Analysis: Factor analysis is a statistical method used to

describe variability among observed, correlated variables in terms of a
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potentially lower number of unobserved variables called factors.
Formal Report: A formal report collects and interprets data and reports
information. It may, in the course of doing these tasks, include an
analysis and make recommendations for a course of action.
Fundamental Research: Fundamental research is research carried out

to increase understanding of fundamental principles.
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Government Report: These may be prepared by state governments or

the central government on a given issue.
Hypothesis: A proposition made as a basis for reasoning, without any

assumption of its truth.
Informal Report: The report prepared by the supervisor by way of filling

the shift log book, to be used by his colleagues.
Internal Secondary Data: Internal secondary data is a part of the

company’s record, for which research is already conducted.
Interval Scale: Interval scale is more powerful than the nominal and
ordinal scales. The distance given on the scale represents equal distance
(c)
on the property being measured.
Judgment Sampling: In judgment sampling, the judgment or opinion of

some experts forms the basis of the sampling method.
Limitation: A principle that limits the extent of something.
Glossary
Linear Regression: It is the relation between variables when the 289
S
regression equation is linear: e.g., y = ax + b. Notes
Literature Review: A literature review is a text written by someone to ___________________

consider the critical points of current knowledge including substantive
___________________
findings as well as theoretical and methodological contributions to a
particular topic
E
___________________
Long Report: This could be both a technical report as well as non- ___________________
technical report.
___________________
Lottery Designs: These designs are used when lotteries are expected;
___________________
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eliminate a major impediment to randomization.
___________________
Mail questionnaire: It is a paper questionnaire, which is sent to
selected respondents to fill and post filled questionnaire back to the ___________________
researcher. ___________________
Marketing Research Design: A marketing research design may be ___________________
described as a series of advance decisions that, when taken together,
comprises a master plan or model for the conduct of the investigations.
Marketing Research Proposal: It is a plan that offers ideas for

conducting research.
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Methodology: A system of methods used in a particular area of study.
Motivation: The reason or reasons one has for acting or behaving in a

particular way.
Nominal Scale: In this scale, numbers are used to identify the objects.
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technically qualified.
Null Hypothesis: The null hypothesis is a hypothesis which the

researcher tries to disprove, reject or nullify.
One-tailed test: In one-tailed test the test-statistic for rejection of null

hypothesis falls only in one-tailed of sampling distribution curve.
One-way ANOVA: In statistics, one-way analysis of variance is a

technique used to compare means of two or more samples (using the F
distribution).
Opening Statement: The opening statement should explain the nature

of the project, how it came about and what was attempted.
(c)
Opinion: It is a verbal statement of a person and given merely for the

sake of responding or rather to answer a particular question without any
object or aim and based on superficial and or partial information of the
object or situation about which the opinion is passed.
Oral Report: The oral report is the type of report which is presented
orally by the reporter.
290 Ordinal Scale (Ranking scale): The Ordinal scale is used for ranking
S
Notes in most market research studies. Ordinal scales are used to ascertain the
consumer perceptions, preferences, etc.
___________________
Personal interviewing: It is the most flexible method since the
___________________
interviewer can select the sample by judgement or convenience sampling
___________________ and is able to explain questions to the respondent.
E
___________________ Personal interviews: An interview is called personal when the
___________________ Interviewer asks the questions face-to-face with the Interviewee.
___________________ Personal Interviews: An interview is called personal when the
UP
___________________
Popular Report: The popular report is intended for a more general
___________________
audience, one that is not conversant with the details of research methods
___________________ and terminology.
___________________ Primary Data: It is one which is collected by the investigator himself for
the purpose of a specific inquiry or study.
Problem: A problem is the dilemma of choosing one alternative among

various alternatives for making a choice on courses of action.
Product Research: It is a kind of marketing research that yields
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information about desired characteristics of the product or service.
Questionnaire: A questionnaire is a research instrument consisting of a

series of questions and other prompts for the purpose of gathering
information from respondents.
Rank Order Scale: In this method, respondents are required to rank

more than two objects or alternatives based on some criteria.
CC
Ratio Scale: Ratio scale is a special kind of internal scale that has a
meaningful zero point. With this scale, length, weight or distance can be
measured.
Recommendation: Recommendation means something that recommends

(or expresses commendation) of a person or thing as worthy or desirable.
Report: A report is a very formal document that is written for a variety of

purposes, generally in the sciences, social sciences, engineering and
business disciplines.
Research Design: A research design encompasses the methodology and

procedure employed to conduct scientific research.
(c)
Research Methodology: Research methodology is a way to

systematically solve the research problem. It is the process used to collect
information and data for the purpose of making business decisions.
Research: The systematic investigation into and study of materials and

sources in order to establish facts and reach new conclusions.
Glossary
291
Sample Design: Sample design covers all aspects of how the samples in
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our surveys are specified and selected. Notes
Sample Frame: Sampling frame is the list of elements from which the ___________________
sample is actually drawn. Actually, sampling frame is nothing but the ___________________
correct list of population.
E
___________________
Sample Plan: A sampling plan should clearly specify the target
___________________
population.
___________________
Sample size: The sample size of a statistical sample is the number of
observations that constitute it. ___________________
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Sample: A sample is a part of a target population, which is carefully ___________________
selected to represent the population.
___________________
Sampling frame: It is the list of elements from which the sample is
___________________
actually drawn.
___________________
Sampling Unit: A unit in a statistical analysis refers to one member of a
set of entities being studied.
Sampling: Sampling is the act, process, or technique of selecting a

representative part of a population for the purpose of determining the
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characteristics of the whole population.
Scaling: The generation of a continuum upon which measured objects

are located.
Schedule: Schedule may be defined as a proforma that contains a set of

questions which are asked and filled by an interviewer in a face to face
situation with another.
CC
Scientific Research: Application of scientific method to the

investigation of relationships among natural phenomenon, or to solve a
medical or technical problem.
Secondary Data: Secondary data is the data that have been already
collected by and readily available from other sources.
Short Report: Short reports are produced when the problem is very well
defined and if the scope is limited.
Simple Random Sampling: Simple Random Sampling is the simplest

type of sampling, in which we draw a sample of size (n) in such a way
that each of the ‘N’ members of the population has the same chance of
being included in the sample.
(c)
Spatial Separation Designs: When treatment groups are separated and

have no experiment-relevant intercommunication, as when participative
management is tried with a treatment group of new, randomly assigned
employees in one location but not in another.
292 Stratified Random Sampling: In Stratified random sampling the
S
Notes members of the population are first assigned to strata or groups, on the
basis of some characteristic and a simple random sample is drawn from
___________________
each stratum.
___________________
Survey: Survey is used most often to describe a method of gathering
___________________ information from samples of individuals.
E
___________________ Surveys: Surveys are carried out to assess customer opinion and reaction.
___________________ Synopsis: A brief summary or general survey of something.
___________________ Target Population: It can be defined as the group of people from whom
UP
___________________ the data is collected.
___________________ Technical Report: The report should enable another researcher to be a

critic of methodology, check calculations and accuracy and to follow
___________________
everything which is done on a step-by-step basis.
___________________
Telephone Surveys: It is a process of collecting information from sample
respondents by calling them over telephone.
Telephone Surveys: It is a process of collecting information from sample

respondents by calling them over telephone.
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The Statistical Decision: It refers to value of information under
conditions of uncertainty.
Tie-breaking Designs: In cases where receiving treatment is merit-

based, as in some academic situations, those receiving tied scores on
merit-based exams can be randomly assigned to a treatment and a control
group.
CC
Two-tailed Test: A two-tailed test is one in which the test statistics

leading to rejection of null hypothesis falls on both tails of the sampling
distribution curve as shown.
Two-way ANOVA: In statistics, the two-way analysis of variance

(ANOVA) test is an extension of the one-way ANOVA test that examines
the influence of different categorical independent variables on one
dependent variable.
Univariate Analysis: The analysis is carried out with the description of

a single variable and its attributes of the applicable unit of analysis.
Variables: A factor whose change or difference we study.

(c)

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UNIT 20: Case Study

Dr S R Das Dr Sanjay Mittal Prof V K Nangia

SLM Development Team

Mr Kapil Mehra Mr A N Sinha

Manager – Material Sr Manager – Printing

Course Code: MBCQ-723D

Course Name: Research Methodology

Version: July 2013

© MPower Applied Learning Enterprise

Unit 1 Introduction to Research Methodology.......................................................................... 3

Unit 6 Decision-making in Research Methodology................................................................. 45

Unit 11 Sampling Procedures.................................................................................................. 101

Unit 16 Data Measurement ..................................................................................................... 173

Unit 17 Hypothesis Testing ..................................................................................................... 187

Unit 22 Market Research Proposal ......................................................................................... 249

Unit 23 Research Report Writing............................................................................................ 259

Unit 24 Oral and Written Reports .......................................................................................... 273

Unit 25 Case Study .................................................................................................................. 285

z Research Methods and Research Methodology

\ Features of good Research Study ___________________

Research may be defined as a documented prose work.

towards purposeful investigation. This needs formulating a

Check Your Progress

1. The objective of research is to determine the association

Features of a Good Research Study

A good research is objective in the sense that it must answer the

population having characteristics identical to the one in the earlier

z Decision based conclusions.

Many more factors such as directives of government, employment

Check Your Progress

2. Its another motivation is to get intellectual joy of doing

as a factor whose change or difference we study. ___________________

Now, there are two types of variables:

dependent variable we try to understand. There may be several

Attitude as we all know is the psychic change and it can neither be

sake of responding or rather to answer a particular question

should have the natural interest in the research.

There are still certain things which we need to consider before we

Now to define management, without going into the traditional 9

z Human resource management ___________________

z Finance and accounting

There may be certain other function too which, however, depends

Human resource outsourcing, Customer Relationship Management

10 of the research process. The research process consists of a series of

___________________ z The selected topic should receive the necessary concurrence

Check Your Progress

while building a new theory and approach on any particular

Lesson End Activity 11

new knowledge. ___________________

Questions for Discussion

4. Distinguish between attitude and opinion.

Dennis Howitt and Duncan Cramer, Introduction to Research

Types of Research Studies

\ Meaning of Research Studies ___________________

Introduction to Research Studies ___________________

A research study is a scientific way to improve or develop new

The science of psychology has certain assumptions regarding

14 management (where we need to study the marketing behaviours of

which contradicted Maslow's hierarchy of Needs theory and

Formulative or exploratory research: Formulative or

for further research on principles of developing hypothesis and its 15

Experimental research: Although experimental research is ___________________

quantified. It is also classified under conclusive research. ___________________