Professional Documents
Culture Documents
FOR BUSINESS
Dr. Yos Sunitiyoso
1. INTRODUCTION
BUSINESS RESEARCH
Exploratory
Descriptive
Causal
EXPLORATORY RESEARCH
Characteristics of leaders
Empathetic
Resourceful
Ability to delegate
CAUSAL RESEARCH
Research conducted to identify cause and effect
relationships (inferences).
Evidence of causality:
Temporal sequence—the appropriate causal order of
events.
Concomitant variation—two phenomena vary together.
Nonspurious association—an absence of alternative
plausible explanations.
THE SPURIOUS EFFECT OF ICE CREAM
CHARACTERISTICS OF DIFFERENT TYPES OF BUSINESS RESEARCH
Note: Diamond-shaped boxes indicate stages in the research process in which a choice of one or more techniques must be
made. The dotted line indicates an alternative path that skips exploratory research.
© 2010 SOUTH-WESTERN/CENGAGE LEARNING. ALL RIGHTS RESERVED. MAY NOT BE SCANNED, COPIED OR
6–20
DUPLICATED, OR POSTED TO A PUBLICALLY ACCESSIBLE WEBSITE, IN WHOLE OR IN PART.
DEFINING THE RESEARCH OBJECTIVES
Research objectives
The goals to be achieved by conducting research.
Deliverables
The consulting term used to describe research objectives
to a research client.
GOOD DECISIONS START WITH A
GOOD PROBLEM DEFINITION
Decision Statement
A written expression of the key question(s) that the research
user wishes to answer.
Problem Definition
The process of defining and developing a decision statement
and the steps involved in translating it into more precise
research terminology, including a set of research objectives.
EXAMPLE DECISION STATEMENTS, RESEARCH OBJECTIVES, AND RESEARCH H YPOTHESES
DEFINING PROBLEMS CAN BE DIFFICULT
THE PROBLEM-DEFINITION PROCESS
Problem
When there is a difference between the current
conditions and a more preferable set of conditions.
Problems Mean Gaps
Business performance is worse than expected business
performance.
Actual business performance is less than possible business
performance.
Expected business performance is greater than possible
business performance.
THE PROBLEM-DEFINITION PROCESS
UNDERSTAND THE BUSINESS DECISION
Situation Analysis
The gathering of background information to familiarize
researchers and managers with the decision-making
environment.
Interview Process
Develop many alternative problem statements
Think about possible solutions to the problem
Make lists
Be open-minded
UNDERSTAND THE BUSINESS DECISION
Identifying Symptoms
Interrogative techniques
Asking multiple what, where, who, when, why, and how questions about
what has changed.
Probing
An interview technique that tries to draw deeper and more elaborate
explanations from the discussion.
WHAT HAS CHANGED?
SYMPTOMS CAN BE CONFUSING
WRITING MANAGERIAL DECISION STATEMENTS
INTO CORRESPONDING RESEARCH OBJECTIVES
Decision statements must be translated into
research objectives.
Once the decision statement is written, the research essentially
answers the question, “What information is needed to address
this situation?”
What is a Variable?
Anything that varies or changes from one instance to another; can
exhibit differences in value, usually in magnitude or strength, or in
direction.
What is a Constant?
Something that does not change; is not useful in addressing research
questions.
TYPES OF VARIABLES
Hypotheses
Statements that can be empirically tested.
State what is expected to be found through the study.
Respondents
People who verbally answer an interviewer’s questions or
provide answers to written questions.
Sample Survey
A survey that emphasizes contacting respondents who
are a representative sample of the target population.
USING SURVEYS
Survey Objectives
Surveys attempt to describe what is happening, what
people believe, what they are like, or to learn the
reasons for a particular business activity.
Survey research is descriptive research:
Identifying characteristics of target markets
Measuring consumer attitudes
Identifying information regarding activities that could make the company
more “green”
Surveys can be both quantitative and qualitative.
ADVANTAGES OF SURVEYS
Quick
Inexpensive (depend)
Efficient
Accurate
CLASSIFYING SURVEY RESEARCH
METHODS
Structured/Unstructured Questionnaires
Structured question: imposes a limit on the number of allowable
responses.
Unstructured question: does not restrict respondents’ answers.
Disguised/Undisguised Questionnaires
Undisguised questions: assume the respondent is willing to answer.
Disguised questions: assume the purpose of the study must be
hidden from the respondent.
CLASSIFYING SURVEY RESEARCH
METHODS (CONT’D)
Temporal Classification
Cross-sectional study: various segments of a population
are sampled and data are collected at a single moment
in time.
CATEGORIZING SURVEY RESEARCH
METHODS (CONT’D)
Temporal Classification (cont’d)
Longitudinal study: A survey of respondents at different
times, thus allowing analysis of response continuity and
changes over time.
Tracking study: uses successive samples to compare trends and identify
changes in variables such as consumer satisfaction, brand image, or
advertising awareness.
Consumer panel: a survey of the same sample of individuals or
households to record (in a diary) their attitudes, behavior, or purchasing
habits over time.
LONGITUDINAL RESEARCH FROM A HARRIS POLL
SELF-ADMINISTERED QUESTIONNAIRES CAN BE EITHER PRINTED OR ELECTRONIC
ETHICAL ISSUES IN SURVEY RESEARCH
Many ethical issues apply to survey
research:
Respondents’ right to privacy
Use of deception
Respondents’ right to be informed
Need for confidentiality
Need for honesty in collecting data
Need for objectivity in reporting data
5. EXPERIMENTAL
RESEARCH
CREATING AN EXPERIMENT
Subjects
The sampling units for an experiment, usually human
respondents who provide measures based on the
experimental manipulation.
Independent Variables
Experimental conditions
One of the possible levels of an experimental (independent) variable
manipulation.
Blocking variables
Variables included in the statistical analysis as a way of controlling or
accounting for variance due to that variable:
Categorical variables
EXPERIMENTAL CONDITIONS IN SELF-EFFICACY EXPERIMENT
CREATING AN EXPERIMENT (CONT’D)
Main Effect
The experimental difference in dependent variable means
between the different levels of any single experimental
variable.
Interaction Effect
Differences in dependent variable means due to a specific
combination of independent variables.
JOB SATISFACTION MEANS IN SELF-EFFICACY EXPERIMENT
EXPERIMENTAL GRAPH SHOWING RESULTS WITHIN EACH CONDITION
DESIGNING AN EXPERIMENT TO MINIMIZE
EXPERIMENTAL ERROR
Manipulation of the Independent Variable
Experimental treatment: the way an experimental
variable is manipulated.
Categorical variables: described by class or quality
Continuous variables: described by quantity (level)
Experimental Group
A group of subjects to whom an experimental treatment is administered.
Control Group
A group of subjects to whom no experimental treatment is administered.
DESIGNING AN EXPERIMENT (CONT’D)
More than One Independent Variable
Cell: a specific treatment combination associated with an
experimental group.
Computation of the number of cells in an experiment:
K = (T1)(T2)..(Tm)
Repeated Measures
Experiments in which an individual subject is exposed to
more than one level of an experimental treatment.
ETHICAL ISSUES IN EXPERIMENTATION
Debriefing experimental subjects
Communicating the purpose of the experiment
Explaining the researcher’s hypotheses
Attempts to interfere with a competitor’s
test-marketing efforts
Such acts as changing prices or increasing advertising to
influence (confound) competitors’ test-marketing results
are ethically questionable.
PRACTICAL EXPERIMENTAL DESIGN
ISSUES
Basic versus Factorial Experimental Designs
Basic experimental designs – a single independent variable
and a single dependent variable.
Factorial experimental design – allows for an investigation of
the interaction to two or more independent variables.
Laboratory Experiment
A situation in which the researcher has more complete control
over the research setting and extraneous variables.
Field Experiments
Research projects involving experimental manipulations that
are implemented in a natural environment.
THE ARTIFICIALITY OF LABORATORY VERSUS FIELD EXPERIMENTS
WITHIN-SUBJECTS AND BETWEEN-SUBJECTS
DESIGNS
Within-Subjects Design
Involves repeated measures because with each treatment the
same subject is measured.
Between-Subjects Design
Each subject receives only one treatment combination.
Usually advantageous although they are usually more costly.
Validity is usually higher.
WITHIN- AND
BETWEEN-SUBJECTS
DESIGNS
ISSUES OF EXPERIMENTAL VALIDITY
Internal Validity
The extent that an experimental variable is truly
responsible for any variance in the dependent variable.
Does the experimental manipulation truly cause changes in the specific
outcome of interest?
Manipulation Checks
A validity test of an experimental manipulation to make
sure that the manipulation does produce differences in
the independent variable.
LABORATORY VS. FIELD EXPERIMENTS
Laboratory Field
Experiment Experiment
464.685 661.143
(Avg. Payoff (Avg. Payoff
1.092.937) 1.132.229)
EFFECT OF TREATMENT
Variable
Anything that varies or changes from one instance to
another; can exhibit differences in value, usually in
magnitude or strength, or in direction.
Capture different values of a concept.
Constructs
Concepts measured with multiple variables.
NOMINAL, ORDINAL, INTERVAL, AND RATIO SCALES PROVIDE DIFFERENT I NFORMATION
LEVELS OF SCALE MEASUREMENT
Nominal
Assigns a value to an object for identification or
classification purposes.
Most elementary level of measurement.
Ordinal
Ranking scales allowing things to be arranged based on
how much of some concept they possible.
Have nominal properties.
LEVELS OF SCALE MEASUREMENT
(CONT’D)
Interval
Capture information about differences in quantities of a
concept.
Have both nominal and ordinal properties.
Ratio
Highest form of measurement.
Have all the properties of interval scales with the
additional attribute of representing absolute quantities.
Absolute zero.
FACTS ABOUT THE FOUR LEVELS OF SCALES
MATHEMATICAL AND STATISTICAL ANALYSIS OF
SCALES
Discrete Measures
Measures that can take on only one of a finite number of values.
Continuous Measures
Measures that reflect the intensity of a concept by assigning values that can
take on any value along some scale range.
COMPUTING SCALE VALUES
Summated Scale
A scale created by simply summing (adding together) the
response to each item making up the composite measure.
Reverse Coding
Means that the value assigned for a response is treated
oppositely from the other items.
COMPUTING A COMPOSITE SCALE
THREE CRITERIA FOR GOOD
MEASUREMENT
Reliability Validity
Good
Measurement
Sensitivity
RELIABILITY AND VALIDITY ON TARGET
WHAT IS AN ATTITUDE?
Attitude
An enduring disposition to consistently respond in a given
manner to various aspects of the world.
Components of attitudes:
Affective Component
The feelings or emotions toward an object
Cognitive Component
Knowledge and beliefs about an object
Behavioral Component
Predisposition to action
Intentions
Behavioral expectations
TECHNIQUES FOR MEASURING ATTITUDES
Ranking
Requiring the respondent to rank order objects in overall
performance on the basis of a characteristic or stimulus.
Rating
Asking the respondent to estimate the magnitude of a
characteristic, or quality, that an object possesses by
indicating on a scale where he or she would rate an
object.
TECHNIQUES FOR MEASURING ATTITUDES
Sorting
Presenting the respondent with several concepts typed
on cards and requiring the respondent to arrange the
cards into a number of piles or otherwise classify the
concepts.
Choice
Asking a respondent to choose one alternative from
among several alternatives; it is assumed that the chosen
alternative is preferred over the others.
ATTITUDE RATING SCALES
Simple Attitude Scale
Requires that an individual agree/disagree with a
statement or respond to a single question.
This type of self-rating scale classifies respondents into one of two
categories (e.g., yes or no).
Example:
THE PRESIDENT SHOULD RUN FOR RE-ELECTION
_______ AGREE ______ DISAGREE
ATTITUDE RATING SCALES (CONT’D)
Category Scale
A more sensitive measure than a simple scale in that it can have
more than two response categories.
Question construction is an extremely important factor in increasing the usefulness
of these scales.
Example:
How important were the following in your decision to visit Bandung?
(check one for each item)
VERY SOMEWHAT NOT TOO
IMPORTANT IMPORTANT IMPORTANT
CLIMATE ___________ ___________ ___________
COST OF TRAVEL ___________ ___________ ___________
FAMILY ORIENTED ___________ ___________ ___________
EDUCATIONAL/HISTORICAL ASPECTS ___________ ___________ ___________
FAMILIARITY WITH AREA ___________ ___________ ___________
SELECTED CATEGORY SCALES
© 2010 SOUTH/WESTERN/CENGAGE LEARNING. ALL RIGHTS RESERVED. MAY NOT BE SCANNED, COPIED OR
14–92
DUPLICATED, OR POSTED TO A PUBLICALLY ACCESSIBLE WEBSITE, IN WHOLE OR IN PART.
ATTITUDE RATING SCALES (CONT’D)
Likert Scale
A popular means for measuring attitudes.
Respondents indicate their own attitudes by checking how
strongly they agree or disagree with statements.
Typical response alternatives: “strongly agree,” “agree,” “uncertain,”
“disagree,” and “strongly disagree.”
Example:
It is more fun to play a tough, competitive tennis match than to play an
easy one.
___Strongly Agree ___Agree ___Not Sure ___Disagree ___Strongly Disagree
LIKERT SCALE ITEMS FOR MEASURING ATTITUDES TOWARD PATIENTS’ INTE RACTION WITH A PHYSICIAN’S SERVICE
STAFF
ATTITUDE RATING SCALES (CONT’D)
Semantic Differential
A series of seven-point rating scales with bipolar
adjectives, such as “good” and “bad,” anchoring the
ends (or poles) of the scale.
A weight is assigned to each position on the scale. Traditionally, scores are
7, 6, 5, 4, 3, 2, 1, or +3, +2, +1, 0, -1, -2, -3.
Example:
Exciting ___ : ___ : ___ : ___ : ___ : ___ : ___ Calm
Interesting ___ : ___ : ___ : ___ : ___ : ___ : ___ Dull
Simple ___ : ___ : ___ : ___ : ___ : ___ : ___ Complex
Passive ___ : ___ : ___ : ___ : ___ : ___ : ___ Active
SEMANTIC DIFFERENTIAL SCALES FOR MEASURING ATTITUDES TOWARD SUPE RMARKETS
OTHER SCALE TYPES (CONT’D)
Image Profile
A graphic representation of semantic differential data
for competing brands, products, or stores to highlight
comparisons.
Because the data are assumed to be interval, either the
arithmetic mean or the median will be used to compare
the profile of one product, brand, or store with that of a
competing product, brand, or store.
IMAGE PROFILES OF COMMUTER AIRLINES VERSUS MAJOR AIRLINES
ATTITUDE RATING SCALES (CONT’D)
Numerical Scales
Scales that have numbers as response options, rather
than “semantic space” or verbal descriptions, to identify
categories (response positions).
In practice, researchers have found that a scale with numerical labels for
intermediate points on the scale is as effective a measure as the true
semantic differential.
Example:
Now that you’ve had your automobile for about one year, please tell us how
satisfied you are with your Ford Focus.
Extremely Dissatisfied 1 2 3 4 5 6 7 Extremely Satisfied
OTHER SCALE TYPES (CONT’D)
Stapel Scale
Uses a single adjective as a substitute for the semantic
differential when it is difficult to create pairs of bipolar
adjectives.
Tends to be easier to conduct and administer than a semantic
differential scale.
A STAPEL SCALE FOR MEASURING A STORE’S IMAGE
MEASURING BEHAVIORAL INTENTION
Behavioral Component
The behavioral expectations (expected future actions) of
an individual toward an attitudinal object.
Example:
How likely is it that you will purchase a Honda Fit?
I definitely will buy
I probably will buy
I might buy
I probably will not buy
I definitely will not buy
MEASURING BEHAVIORAL INTENTION
Behavioral Differential
A rating scale instrument similar to a semantic differential,
developed to measure the behavioral intentions of subjects
toward future actions.
A description of the object to be judged is placed on the top of a sheet, and the
subjects indicate their behavioral intentions toward this object on a series of scales.
Example:
A 25 year-old woman sales representative
Would ___ : ___ : ___ : ___ : ___ : ___ : ___ : Would Not
ask this person for advice.
RANKING
Example:
Here is a sheet that lists several airlines. Next to the name of each airline is a pocket. Here are ten cards. I
would like you to put these cards in the pockets next to the airlines you would prefer to fly on your next trip.
Assume that all of the airlines fly to wherever you would choose to travel. You can put as many cards as you
want next to an airline, or you can put no cards next to an airline.
Cards
American Airlines _____
Delta Airlines _____
United Airlines _____
Southwest Airlines _____
Northwest Airlines _____
7. QUESTIONNAIRE DESIGN
QUESTIONNAIRE QUALITY AND DESIGN:
BASIC CONSIDERATIONS
Questionnaire design is one of the most critical
stages in the survey research process.
A questionnaire (survey) is only as good as the questions it asks
- Ask a bad question, get bad results.
Composing a good questionnaire appears easy, but it is usually
the result of long, painstaking work.
The questions must meet the basic criteria of relevance and
accuracy.
DECISIONS IN QUESTIONNAIRE DESIGN
1. What should be asked?
2. How should questions be phrased?
3. In what sequence should the questions be
arranged?
4. What questionnaire layout will best serve the
research objectives?
5. How should the questionnaire be pretested?
Does the questionnaire need to be revised?
WHAT SHOULD BE ASKED?
Questionnaire Relevancy
All information collected should address a research question
in helping the decision maker in solving the current business
problem.
Questionnaire Accuracy
Increasing the reliability and validity of respondent
information requires that:
Questionnaires should use simple, understandable, unbiased, unambiguous,
and nonirritating words.
Questionnaire design should facilitate recall and motivate respondents to
cooperate.
Proper question wording and sequencing to avoid confusion and biased
answers.
WORDING QUESTIONS
Open-ended Response Questions
Pose some problem and ask respondents to answer in
their own words.
Advantages:
Are most beneficial in exploratory research, especially when the range of
responses is not known.
May reveal unanticipated reactions toward the product.
Are good first questions because they allow respondents to warm up to
the questioning process.
Disadvantages:
High cost of administering open-ended response questions.
The possibility that interviewer bias will influence the answer.
Bias introduced by articulate individuals’ longer answers.
WORDING QUESTIONS (CONT’D)
Fixed-alternative Questions
Questions in which respondents are given specific,
limited-alternative responses and asked to choose the
one closest to their own viewpoint.
Advantages:
Require less interviewer skill
Take less time to answer
Are easier for the respondent to answer
Provides comparability of answers
Disadvantages:
Lack of range in the response alternatives
Tendency of respondents to choose convenient alternative
TYPES OF FIXED-ALTERNATIVE
QUESTIONS
Simple-dichotomy (dichotomous) Question
Requires the respondent to choose one of two alternatives (e.g.,
yes or no).
Determinant-choice Question
Requires the respondent to choose one response from among
multiple alternatives (e.g., A, B, or C).
Frequency-determination Question
Asks for an answer about general frequency of occurrence (e.g.,
often, occasionally, or never).
Checklist Question
Allows the respondent to provide multiple answers to a single
question by checking off items.
PHRASING QUESTIONS FOR SELF-ADMINISTERED,
SURVEYS
Influences on Question Phrasing:
The means of data collection will influence the question
format and question phrasing.
Questions for mail, Internet, and telephone surveys must be less complex
than those used in personal interviews.
Questionnaires for telephone and personal interviews should be written in
a conversational style.
REDUCING QUESTION COMPLEXITY BY PROVIDING FEWER RESPONSES FOR TE LEPHONE
INTERVIEWS
GUIDELINES FOR CONSTRUCTING
QUESTIONS
Avoid complexity: Simpler language is better.
Avoid leading and loaded questions.
Avoid ambiguity: Be as specific as possible.
Avoid double-barreled items.
Avoid making assumptions.
Avoid burdensome questions that may tax the
respondent’s memory.
Make certain questions generate variance.
WHAT IS THE BEST QUESTION SEQUENCE?
Order bias
Bias caused by the influence of earlier questions in a questionnaire
or by an answer’s position in a set of answers.
Funnel technique
Asking general questions before specific questions in order to
obtain unbiased responses.
Filter question
A question that screens out respondents who are not qualified to
answer a second question.
Pivot question
A filter question used to determine which version of a second
question will be asked.
A WELL DESIGNED QUESTIONNAIRE:
Gives accurate and relevant information to your research question
Minimises potential sources of bias
Will more likely be completed
Study protocol
Prepared by Snoopy
vs.
How often did you touch a dog during the
past 3 months?
Once •
Twice •
Three times or more •
Not at all •
Don´t know •
BE APPROPRIATE
Are you a drunk?
Yes •
No •
vs.
How often have you consumed alcoholic beverages during
the past 6 months?
Daily •
2-6 times/week •
Once a week •
Less than once a week •
Don´t know •
BE OBJECTIVE
Did you drink the strange brownish drink in Prague?
Yes •
No •
vs.
Which beverage did you consume?
Water •
Beer •
Wine •
Karkadé •
None of them •
Don´t know •
BE SIMPLE
Did you smoke not less than a mean amount
of 7 cigarettes/2 days from 1999 onwards?
Yes •
No •
vs.
Did you smoke an average of 2 pack of cigarettes/week for
the last 5 years?
Yes •
No •
Don´t know •
FORMAT OF QUESTIONS
Two main question formats
Closed format forced choice
Yes Always
No Sometimes
Don’t know Never
Open format free text
Ambiguity.....
Where do you like to shop ?
Shop for what? grocery, gasoline, clothes or what?
PROBLEMS AND PITFALLS
Avoid jargon/abbreviations/slang
How often do you get up at night to PU? (pass urine)
New questionnaires
Not validated
Needs to be tested (pilot)
PILOTING AND EVALUATION
Single 1 Separated 3
Married 2 Divorced 4
Widowed 5 Don’t know 9
SUMMARY
A well designed questionnaire:
Will give appropriate data which allow to answer your
research question
Will minimise potential sources of bias, thus increasing
the validity of the questionnaire
Will much more likely be completed
Population (universe)
Any complete group of entities that share some common set of
characteristics.
Population Element
An individual member of a population.
Census
An investigation of all the individual elements that make up a
population.
WHY SAMPLE?
Pragmatic Reasons
Budget and time constraints.
Limited access to total population.
Non-probability Sampling
A sampling technique in which units of the sample are selected on
the basis of personal judgment or convenience.
The probability of any particular member of the population being
chosen is unknown.
NONPROBABILITY SAMPLING
Convenience Sampling
Obtaining those people or units that are most conveniently
available.
Quota Sampling
Ensures that various subgroups of a population will be represented
on pertinent characteristics to the exact extent that the investigator
desires.
NONPROBABILITY SAMPLING (CONT’D)
Possible Sources Of Bias
Respondents chosen because they were:
Similar to interviewer
Easily found
Willing to be interviewed
Middle-class
Snowball Sampling
A sampling procedure in which initial respondents are selected by
probability methods and additional respondents are obtained from
information provided by the initial respondents.
PROBABILITY SAMPLING
Simple Random Sampling
Assures each element in the population of an equal chance of being
included in the sample.
Systematic Sampling
A starting point is selected by a random process and then every nth
number on the list is selected.
Stratified Sampling
Simple random subsamples that are more or less equal on some
characteristic are drawn from within each stratum of the population.
PROPORTIONAL VERSUS DISPROPORTIONAL
SAMPLING
Proportional Stratified Sample
The number of sampling units drawn from each stratum is in proportion to the
population size of that stratum.
National vs.
Resources
Local
Appropriate
Sample
Design
Knowledge of
Time
Population
COMPARISON OF SAMPLING TECHNIQUES: NONPROBABILITY SAMPLES
COMPARISON OF SAMPLING TECHNIQUES: PROBABILITY SAMPLES
9. DATA PREPARATION
STAGES OF DATA ANALYSIS
Raw Data
The unedited responses from a respondent exactly as
indicated by that respondent.
Non-respondent Error
Error that the respondent is not responsible for creating, such
as when the interviewer marks a response incorrectly.
Data Integrity
The notion that the data file actually contains the information
that the researcher is trying to obtain to adequately address
research questions.
OVERVIEW OF THE STAGES OF DATA ANALYSIS
10. DESCRIPTIVE STATISTICS
INTRODUCTION
Descriptive Statistics
Describe characteristics of populations or samples.
Inferential Statistics
Make inferences about whole populations from a sample.
Sample Statistics
Variables in a sample or measures computed from sample
data.
Population Parameters
Variables in a population or measured characteristics of the
population.
MAKING DATA USABLE
Frequency Distribution
A set of data organized by summarizing the number of
times a particular value of a variable occurs.
Percentage Distribution
A frequency distribution organized into a table (or
graph) that summarizes percentage values associated
with particular values of a variable.
Probability
The long-run relative frequency with which an event will
occur.
MEASURES OF DISPERSION
The Range
The distance between the smallest and the largest values of a
frequency distribution.
LOW DISPERSION VERSUS HIGH DISPERSION
MEASURES OF DISPERSION (CONT’D)
Why Use the Standard Deviation?
Variance
A measure of variability or dispersion.
Its square root is the standard deviation.
Standard deviation
A quantitative index of a distribution’s spread, or
variability; the square root of the variance for a distribution.
The average of the amount of variance for a distribution.
Used to calculate the likelihood (probability) of an event
occurring.
THE NORMAL DISTRIBUTION
Normal Distribution
A symmetrical, bell-shaped distribution (normal
curve) that describes the expected probability
distribution of many chance occurrences.
99% of its values are within ± 3 standard deviations
from its mean.
Example: IQ scores
Confidence Level
How much error will be tolerated?
ESTIMATING SAMPLE SIZE FOR QUESTIONS
INVOLVING MEANS
Sequential Sampling
Conducting a pilot study to estimate the population parameters
so that another, larger sample of the appropriate sample size
may be drawn.
Estimating sample size:
SAMPLE SIZE EXAMPLE
Suppose a survey researcher, studying expenditures on
lipstick, wishes to have a 95 percent confident level (Z)
and a range of error (E) of less than $2.00. The estimate
of the standard deviation is $29.00. What is the
calculated sample size?
SAMPLE SIZE EXAMPLE
Suppose, in the same example as the one before, the range of
error (E) is acceptable at $4.00. Sample size is reduced.
CALCULATING SAMPLE SIZE AT THE 99 PERCENT
CONFIDENCE LEVEL
THE NATURE OF DESCRIPTIVE ANALYSIS
Descriptive Analysis
The elementary transformation of raw data in a way that describes
the basic characteristics such as central tendency, distribution, and
variability.
Histogram
A graphical way of showing a frequency distribution in which the
height of a bar corresponds to the observed frequency of the
category.
LEVELS OF SCALE MEASUREMENT AND SUGGESTED DESCRIPTIVE STATISTICS
CREATING AND INTERPRETING
TABULATION
Tabulation
The orderly arrangement of data in a table or other
summary format showing the number of responses to
each response category.
Tallying is the term when the process is done by hand.
Frequency Table
A table showing the different ways respondents
answered a question.
Sometimes called a marginal tabulation.
FREQUENCY TABLE EXAMPLE
CROSS-TABULATION
Addresses research questions involving
relationships among multiple less-than
interval variables.
Results in a combined frequency table
displaying one variable in rows and
another variable in columns.
CROSS-TABULATION TABLES FROM A SURVEY REGARDING AIG AND GOVERNME NT BAILOUTS
CROSS-TABULATION (CONT’D)
Percentage Cross-Tabulations
Statistical base – the number of respondents or observations
(in a row or column) used as a basis for computing
percentages.
Elaboration and Refinement
Elaboration analysis – an analysis of the basic cross-
tabulation for each level of a variable not previously
considered, such as subgroups of the sample.
Moderator variable – a third variable that changes the
nature of a relationship between the original independent
and dependent variables.
CROSS-TABULATION OF MARITAL STATUS, SEX, AND RESPONSES TO THE QU ESTION “DO YOU SHOP AT TARGET?”
CROSS-TABULATION (CONT’D)
How Many Cross-Tabulations?
Every possible response becomes a possible explanatory
variable.
When hypotheses involve relationships among two
categorical variables, cross-tabulations are the right tool
for the job.
Quadrant Analysis
An extension of cross-tabulation in which responses to
two rating-scale questions are plotted in four quadrants
of a two-dimensional table.
Importance-performance analysis
AN IMPORTANCE-PERFORMANCE OR QUADRANT ANALYSIS OF HOTELS
CALCULATING RANK ORDER
Rank Order
Ranking data can be summarized by performing a data
transformation.
The transformation involves multiplying the frequency by
the ranking score for each choice resulting in a new
scale.
EXECUTIVE RANKINGS OF POTENTIAL CONFERENCE DESTINATIONS
FREQUENCIES OF CONFERENCE DESTINATION RANKINGS
INTERPRETATION
Interpretation
The process of drawing inferences from the analysis
results.
Inferences drawn from interpretations lead to
managerial implications and decisions.
From a management perspective, the qualitative
meaning of the data and their managerial implications
are an important aspect of the interpretation.
11. UNIVARIATE, BIVARIATE
& MULTI VARIATE
STATISTICAL ANALYSIS
TYPES OF STATISTICAL ANALYSIS
Univariate Statistical Analysis
Tests of hypotheses involving only one variable.
Testing of statistical significance
Nonparametric Statistics
Appropriate when the variables being analyzed do
not conform to any known or continuous distribution.
UNIVARIATE STATISTICAL CHOICE
BIVARIATE STATISTICAL ANALYSIS
Measures of Association
Refers to a number of bivariate statistical techniques used to
measure the strength of a relationship between two variables.
The chi-square (2) test provides information about whether two
or more less-than interval variables are interrelated.
Correlation analysis is most appropriate for interval or ratio
variables.
Regression can accommodate either less-than interval or
interval independent variables, but the dependent variable
must be continuous.
BIVARIATE ANALYSIS—COMMON
PROCEDURES FOR TESTING
ASSOCIATION
SCATTER DIAGRAM TO ILLUSTRATE CORRELATION PATTERNS
REGRESSION ANALYSIS
120
110
100 Yˆ aˆ ̂X
90 Yˆ
80
X
X
80 90 100 110 120 130 140 150 160 170
MULTIVARIATE DATA ANALYSIS?
Research that involves three or more variables, or
that is concerned with underlying dimensions
among multiple variables, will involve multivariate
statistical analysis.
Methods analyze multiple variables or even multiple sets
of variables simultaneously.
Business problems involve multivariate data analysis:
most employee motivation research
customer psychographic profiles
research that seeks to identify viable market segments
THE “VARIATE” IN MULTIVARIATE
Variate
A mathematical way in which a set of variables can be
represented with one equation.
A linear combination of variables, each contributing to
the overall meaning of the variate based upon an
empirically derived weight.
A function of the measured variables involved in an
analysis: Vk = f (X1, X2, . . . , Xm )
WHICH MULTIVARIATE APPROACH IS APPROPRIATE?
WHICH MULTIVARIATE DEPENDENCE TECHNIQUE SHOULD I USE?
WHICH MULTIVARIATE INTERDEPENDENCE TECHNIQUE SHOULD I USE?
THANK YOU !
REFERENCES
Neuman (2009) Social Research Methods: Qualitative and
Quantitative Approaches (7th Edition). Pearson Education.
Zikmund, W.G., Babin, B.J., Carr, J.C. and M. Griffin (2009) Business
Research Methods. South-Western Cengage Learning
Hair, J.F., Black, W.C., Babin, B.J., and R.E. Anderson (2010)
Multivariate Data Analysis – A Global Perspective. Pearson