BRM Civil

BUSINESS RESEARCH METHODS
FACULTY : Prof. MAYANK YADAV

SCHOOL OF MANAGEMENT
NIT Rourkela
Course book Source and Adoption: C R
Kothari, Research Methodology, New Age
International
Business vs Commerce
Research
• What is Research???
• Research in common parlance refers to a search for
knowledge.
• Redman and Mory define research as a “systematized
effort to gain new knowledge.”
• According to Clifford Woody research comprises
defining and redefining problems, formulating
hypothesis or suggested solutions; collecting,
organising and evaluating data; making deductions and
reaching conclusions; and at last carefully testing the
conclusions to determine whether they fit the
formulating hypothesis.
MOTIVATION IN RESEARCH
1. Desire to get a research degree along with its
consequential benefits;
2. Desire to face the challenge in solving the
unsolved problems, i.e., concern over practical
problems initiates research;
3. Desire to get intellectual joy of doing some
creative work;
4. Desire to be of service to society;
5. Desire to get respectability.
Business Research??
• The term ‘business research’, as it is used in this book, refers
to academic research on topics relating to questions that are
relevant to the field of business and management and have a
social science orientation.
• We include in this category research in areas such as
organizational behaviour, marketing, accounting, HRM, and
strategy, which draw on the social sciences for conceptual and
theoretical inspiration.
Why do business research?
• Academics and Industry Interface
Why is it important to study
methods?
• Training in research methods sensitizes you to the
choices that are available to business and
management researchers.
• Training in research methods provides you with
an awareness of the ‘dos’ and ‘don’ts’ when
employing a particular approach to collecting or
analysing data.
• Training in research methods provides you with
insights into the overall research process. It
provides a general vantage point for
understanding how research is done.
Why is it important to study
methods?
• Training in research methods provides you with an awareness
of what constitutes good and poor research. It therefore
provides a platform for developing a critical awareness of the
limits and limitations of research that you read.
• The skills that training in research methods imparts are
transferable ones. How to sample, how to design a
questionnaire, how to conduct semi-structured interviewing
or focus groups and so on are skills that are relevant to
research in other spheres (such as firms, public-sector
organizations, and so on).
OBJECTIVES OF RESEARCH
• 1. To gain familiarity with a phenomenon or to achieve new
insights into it (studies with this object in view are termed as
exploratory or formulative research studies);
• 2. To portray accurately the characteristics of a particular
individual, situation or a group (studies with this object in
view are known as descriptive research studies);
• 3. To test a hypothesis of a causal relationship between
variables (such studies are known as hypothesis-testing
research studies).
Research Approaches
• There are basically two research approaches
• 1-Qualitative: is concerned with subjective assessment of attitudes,

opinions and behaviour. Research in such a situation is a function of
researcher’s insights and impressions. Such an approach to research
generates results either in non-quantitative form or in the form which are
not subjected to rigorous quantitative analysis. Generally, the techniques
of focus group interviews, projective techniques and depth interviews are
used
• 2-Quantitative: generation of data in quantitative form which can be

subjected to rigorous quantitative analysis in a formal and rigid fashion.
This approach can be further sub-classified into inferential and
experimental approaches to research.
Research Approaches
• The purpose of inferential approach to research is to form a data base
from which to infer characteristics or relationships of population. This
usually means survey research where a sample of population is studied
(questioned or observed) to determine its characteristics, and it is then
inferred that the population has the same characteristics.
• Experimental approach is characterised by much greater control over the
research environment and in this case some variables are manipulated to
observe their effect on other variables.
Significance of Research
• “All progress is born of inquiry. Doubt is often better than overconfidence,
for it leads to inquiry, and inquiry leads to invention”-Hudson Maxim
• Research inculcates scientific and inductive thinking and it promotes the
development of logical habits of thinking and organisation.
• The increasingly complex nature of business and government has focused
attention on the use of research in solving operational problems.
Research, as an aid to economic policy, has gained added importance,
both for government and business.
• Research provides the basis for nearly all government policies in our
economic system. For instance, government’s budgets rest in part on an
analysis of the needs and desires of the people and on the availability of
revenues to meet these needs. The cost of needs has to be equated to
probable revenues and this is a field where research is most needed
Significance of Research
• Research has its special significance in solving various
operational and planning problems of business and industry.
• Research is equally important for social scientists in studying

social relationships and in seeking answers to various social
problems
Other Significance of Research
(a) To those students who are to write a master’s or Ph.D.
thesis, research may mean a careerism or a way to
attain a high position in the social structure;
(b) To professionals in research methodology, research
may mean a source of livelihood;
(c) To philosophers and thinkers, research may mean the
outlet for new ideas and insights;
(d) To literary men and women, research may mean the
development of new styles and creative work;
(e) To analysts and intellectuals, research may mean the
generalisations of new theories.
Research Methods Vs Methodology
• Research methods may be understood as all those
methods/techniques that are used for conduction of research.
Research methods or techniques*, thus, refer to the methods the
researchers use in performing research operations.
• Research methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how
research is done scientifically.
• Thus, when we talk of research methodology we not only talk of the
research methods but also consider the logic behind the methods
we use in the context of our research study and explain why we are
using a particular method or technique and why we are not using
others so that research results are capable of being evaluated either
by the researcher himself or by others
Research Methods Vs Techniques
At times, a distinction is also made between
research techniques and research methods.
• Research techniques refer to the behaviour and
instruments we use in performing research
operations such as making observations,
recording data, techniques of processing data and
the like.
• Research methods refer to the behaviour and
instruments used in selecting and constructing
research technique.
Research Methods Vs Techniques
What Research can do?
• https://www.youtube.com/watch?v=pqHWAE
8GDEk
Importance of Knowing How Research
is Done
• The knowledge of methodology provides good training specially to the new
research worker and enables him to do better research. It helps him to
develop disciplined thinking or a ‘bent of mind’ to observe the field
objectively. Hence, those aspiring for careerism in research must develop the
skill of using research techniques and must thoroughly understand the logic
behind them.
• Knowledge of how to do research will inculcate the ability to evaluate and use
research results with reasonable confidence. In other words, we can state that
the knowledge of research methodology is helpful in various fields such as
government or business administration, community development and social
work where persons are increasingly called upon to evaluate and use research
results for action.
• When one knows how research is done, then one may have the satisfaction of
acquiring a new intellectual tool which can become a way of looking at the
world and of judging everyday experience. Accordingly, it enables use to make
intelligent decisions concerning problems facing us in practical life at different
points of time.
Research and Scientific Method
• Characteristics of Scientific Method
1. It relies on empirical evidence;

2. It utilizes relevant concepts;
3. It is committed to only objective considerations;
4. It presupposes ethical neutrality, i.e., it aims at nothing but
making only adequate and correct statements about population
objects;
5. It results into probabilistic predictions;
6. Its methodology is made known to all concerned for critical
scrutiny are for use in testing the conclusions through replication;
7. It aims at formulating most general axioms or what can be
termed as scientific theories.
Criteria of Good Research
1. The purpose of the research should be clearly defined and common concepts be
used.
2. The research procedure used should be described in sufficient detail to permit
another researcher to repeat the research for further advancement, keeping the
continuity of what has already been attained.
3. The procedural design of the research should be carefully planned to yield results
that are as objective as possible.
4. The researcher should report with complete frankness, flaws in procedural
design and estimate their effects upon the findings.
5. The analysis of data should be sufficiently adequate to reveal its significance and
the methods of analysis used should be appropriate. The validity and reliability of
the data should be checked carefully.
6. Conclusions should be confined to those justified by the data of the research and
limited to those for which the data provide an adequate basis.
7. Greater confidence in research is warranted if the researcher is experienced, has a
good reputation in research and is a person of integrity.
Qualities of Good Research
In other words, we can state the qualities of a good research12 as under:
1. Good research is systematic: It means that research is structured with
specified steps to be taken in a specified sequence in accordance with the
well defined set of rules. Systematic characteristic of the research does
not rule out creative thinking but it certainly does reject the use of
guessing and intuition in arriving at conclusions.
2. Good research is logical: This implies that research is guided by the rules of
logical reasoning and the logical process of induction and deduction are of
great value in carrying out research. Induction is the process of reasoning
from a part to the whole whereas deduction is the process of reasoning
from some premise to a conclusion which follows from that very premise.
In fact, logical reasoning makes research more meaningful in the context
of decision making
Qualities of Good Research
3. Good research is empirical: It implies that research is related basically to
one or more aspects of a real situation and deals with concrete data that
provides a basis for external validity to research results.
4. Good research is replicable: This characteristic allows research results to be

verified by replicating the study and thereby building a sound basis for
decisions.
Problems Encountered by Researchers
in India
• The lack of a scientific training in the methodology of
research.
• There is insufficient interaction between the
university research departments on one side and
business establishments, government departments
and research institutions on the other side. A great
deal of primary data of non-confidential nature remain
untouched/untreated by the researchers for want of
proper contacts. Efforts should be made to develop
satisfactory liaison among all concerned for better
and realistic researches.
in India
• There is the need for generating the confidence
that the information/data obtained from a
business unit will not be misused.
• 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 is going on.
in India
• Many researchers in our country also face the
difficulty of adequate and timely secretarial
assistance, including computer assistance. This
causes unnecessary delays in the completion of
research studies.
• 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., rather than in
tracing out relevant material from them.
in India
• 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.
• There is also the difficulty of timely availability
of published data from various government and
other agencies doing this job in our country
• There may, at times, take place the problem of
conceptualization and also problems relating to
the process of data collection and related things.
Research Process
Source: C R Kothari, Research Methodology, New Age International

What is a research problem?
• A research problem, in general, refers to some difficulty which a
researcher experiences in the context of either a theoretical or practical
situation and wants to obtain a solution for the same.
• What is the importance of Research Problem?
• “Well begun is half done”-Aristotle
Components of a Research Problem
• We can, thus, state the components of a research problem as under:
• (i) There must be an individual or a group which has some difficulty or the
problem.
• (ii) There must be some objective(s) to be attained at. If one wants
nothing, one cannot have a problem.
• (iii) There must be alternative means (or the courses of action) for
obtaining the objective(s) one wishes to attain. This means that there
must be at least two means available to a researcher for if he has no
choice of means, he cannot have a problem.
• (iv) There must remain some doubt in the mind of a researcher about the
selection of alternatives. This means that research must answer the
question concerning the relative efficiency of the possible alternatives.
• (v) There must be some environment(s) to which the difficulty pertains.
Criteria for Selecting Research Problem
• (i) Subject which is overdone should not be normally chosen, for it will be
a difficult task to throw any new light in such a case.
• (ii) Controversial subject should not become the choice of an average
researcher.
• (iii) Too narrow or too vague problems should be avoided.
• (iv) The subject selected for research should be familiar and feasible so
that the related research material or sources of research are within one’s
reach. Even then it is quite difficult to supply definitive ideas concerning
how a researcher should obtain ideas for his research. For this purpose, a
researcher should contact an expert or a professor in the University who is
already engaged in research.
Criteria for Selecting Research Problem
• (v) The importance of the subject, the qualifications and the training of a
researcher, the costs involved, the time factor are few other criteria that
must also be considered in selecting a problem. In other words, before the
final selection of a problem is done, a researcher must ask himself the
following questions:
• (a) Whether he is well equipped in terms of his background to carry out
the research?
• (b) Whether the study falls within the budget he can afford?
• (c) Whether the necessary cooperation can be obtained from those who
must participate in research as subjects?
• The selection of a problem must be preceded by a preliminary study. This
may not be necessary when the problem requires the conduct of a
research closely like one that has already been done. But when the field of
inquiry is relatively new and does not have available a set of well-
developed techniques, a brief feasibility study must always be undertaken.
Management Decision Problem Vs.
Marketing Research Problem
Management Decision Problem Marketing Research Problem
Should a new product be To determine consumer preferences

introduced? and purchase intentions for the
proposed new product.
Should the advertising To determine the effectiveness

campaign be changed? of the current advertising
campaign.
Should the price of the To determine the price elasticity

brand be increased? of demand and the impact on sales
and profits of various levels
of price changes.
Consumer Insights-Research-Product
Source: http://www.socialsamosa.com/2013/02/how-revlon-india-used-social-
media-to-gain-consumer-insights/
Business Research Methods-UNIT-II
• Course book Source and Adoption: C R
International
UNIT CONTENT
• Research design
• Concept, Features of a good research design
• Use of a good research design
• Qualitative and Quantitative research approaches
• Comparison – Pros and Cons of both approaches.
• Research Designs: Concept, types and uses.
• Concept of Cross-sectional and Longitudinal Research.
• Experimental Design: Concept of Cause, Causal
relationships, Concept of Independent & Dependent
variables, extraneous variable, Treatment, Control
group
Research design
• Research design A framework or blueprint for
conducting the marketing research project. It
specifies the details of the procedures necessary
for obtaining the information needed to structure
and/or solve marketing research problems.
• Research design stands for advance planning of
the methods to be adopted for collecting the
relevant data and the techniques to be used in
their analysis, keeping in view the objective of the
research and the availability of staff, time and
money.
Components of a Good Research
Design
• 1. Define the information needed.
• 2. Design the exploratory, descriptive, and/or causal
phases of the research .
• 3. The availability of time and money for the research
work.
• 4. Specify the measurement and scaling procedures.
• 5. Construct and pretest a questionnaire (interviewing
form) or an appropriate form for data collection.
• 6. Specify the sampling process and sample size .
• 7. Develop a plan of data analysis.
NEED FOR RESEARCH DESIGN
• Research design is needed because it facilitates the
smooth sailing of the various research operations
• Making research as efficient as possible yielding
maximal information with minimal expenditure of
effort,
• Saves time and money.
• Example: Just as for better, economical and attractive
construction of a house, we need a blueprint (or what
is commonly called the map of the house) well thought
out and prepared by an expert architect, similarly we
need a research design or a plan in advance of data
collection and analysis for our research project.
A Classification of Marketing Research Designs
Fig. 3.1
Research Design Source: Malhotra & Dash. (2016).
Exploratory Conclusive
Research Design Research Design
Descriptive Causal
Research Research
Cross-Sectional Longitudinal
Design Design
Single Cross- Multiple Cross-

Sectional Design Sectional Design
Exploratory Vs. Conclusive Research
Design
Table. 3.1: Source: Malhotra & Dash. (2016).

Exploratory Research
• Exploratory Research: As its name implies, the objective of
exploratory research is to explore or search through a
problem or situation to provide insights and understanding
(Table 3.2). Exploratory research could be used for any of
the following purposes:
• Formulate a problem or define a problem more precisely.
• Identify alternative courses of action.
• Develop hypotheses.
• Isolate key variables and relationships for further
examination.
• Gain insights for developing an approach to the problem.
• Establish priorities for further research.
Comparison of Research Design
Table. 3.2: Source: Malhotra & Dash. (2016).

Descriptive Research
• As the name implies, the major objective of descriptive research is to describe something— usually
market characteristics or functions (see Table 3.2). Descriptive research is conducted for the
following reasons:
• 1. To describe the characteristics of relevant groups, such as consumers, salespeople, organizations,
or market areas. For example, we could develop a profile of the “heavy users” (frequent shoppers)
of prestigious department stores like Saks Fifth Avenue and Neiman Marcus.
• 2. To estimate the percentage of units in a specified population exhibiting a certain behavior. For
example, we might be interested in estimating the percentage of heavy users of prestigious
department stores who also patronize discount department stores.
• 3. To determine the perceptions of product characteristics. For example, how do households
perceive the various department stores in terms of salient factors of the choice criteria?
• 4. To determine the degree to which marketing variables are associated. For example, to what
extent is shopping at department stores related to eating out?
• 5. To make specific predictions. For example, what will be the retail sales of Neiman Marcus
(specific store) for fashion clothing (specific product category) in the Dallas area (specific region)?
Project Research: The Six Ws
1. Who—Who should be considered a patron of a particular department store? Some
of the possibilities are:
• a. Anyone who enters the department store, whether or not she or he purchases
anything
• b. Anyone who purchases anything from the store
• c. Anyone who makes purchases at the department store at least once a month
• d. The person in the household most responsible for department store shopping
2. What—What information should be obtained from the respondents? A wide variety
of information could be obtained, including:
a. Frequency with which different department stores are patronized for specific
product categories
b. Evaluation of the various department stores in terms of the salient choice criteria
c. Information pertaining to specific hypotheses to be tested
d. Psychographics and lifestyles, media consumption habits, and demographics
3. When—When should the information be obtained from the respondents? The available options
include:
a. Before shopping
b. While shopping
c. Immediately after shopping
d. Some time after shopping to allow time for evaluation of their shopping experience
4. Where—Where should the respondents be contacted to obtain the required information?
Possibilities include contacting the respondents:
• a. In the store
• b. Outside the store but in the shopping mall
• c. In the parking lot
• d. At home
5. Why—Why are we obtaining information from the respondents? Why is
the marketing research project being conducted? Possible reasons could be
to:
• a. Improve the image of the sponsoring store
• b. Improve patronage and market share
• c. Change the product mix
• d. Develop a suitable promotional campaign
• e. Decide on the location of a new store
6. Way—In what way are we going to obtain information from the
respondents? The possible ways could be:
• a. Observation of respondents’ behavior
• b. Personal interviews
• c. Telephone interviews
• d. Mail interviews
• e. Electronic (e-mail or Internet) interviews
Other Examples of Descriptive Studies
• Market studies, which describe the size of the market, buying power of
the consumers, availability of distributors, and consumer profiles
• Market share studies, which determine the proportion of total sales
received by a company and its competitors
• Sales analysis studies, which describe sales by geographic region, product
line, type and size of the account
• Image studies, which determine consumer perceptions of the firm and its
products
• Product usage studies, which describe consumption patterns
• Distribution studies, which determine traffic flow patterns and the
number and location of distributors
• Pricing studies, which describe the range and frequency of price changes
and probable consumer response to proposed price changes
• Advertising studies, which describe media consum
Cross-sectional Designs
• Involve the collection of information from any given sample of
population elements only once.
• In single cross-sectional designs, there is only one sample of
respondents and information is obtained from this sample only once.
• In multiple cross-sectional designs, there are two or more samples of
respondents, and information from each sample is obtained only once.
Often, information from different samples is obtained at different
times.
Longitudinal Designs
• A fixed sample (or samples) of population
elements is measured repeatedly on the same
variables
• A longitudinal design differs from a cross-
sectional design in that the sample or samples
remain the same over time
Relative Advantages and Disadvantages of
Longitudinal and Cross-Sectional Designs
Table 3.4
Evaluation Cross-Sectional Design Longitudinal Design

Criteria
Detecting Change - +
Large amount of data collection - +
Accuracy - +
Representative Sampling + -
Response bias + -
Note: A “+” indicates a relative advantage over the other design, whereas a “-”
indicates a relative disadvantage.
Uses of Casual Research
• To understand which variables are the cause
(independent variables) and which variables
are the effect (dependent variables) of a
phenomenon
• To determine the nature of the relationship
between the causal variables and the effect to
be predicted
• METHOD: Experiments
Concepts in Research Design
• Variable: A concept which can take on different quantitative values is called a variable. As such the
concepts like weight, height, income are all examples of variables. Qualitative phenomena (or the
attributes) are also quantified on the basis of the presence or absence of the concerning
attribute(s). Phenomena which can take on quantitatively different values even in decimal points
are called ‘continuous variables’.* But all variables are not continuous. If they can only be expressed
in integer values, they are non-continuous variables or in statistical language ‘discrete variables’.
Age is an example of continuous variable, but the number of children is an example of non-
continuous variable
• Dependent Variable: If one variable depends upon or is a consequence of the other variable, it is
termed as a dependent variable.
• Independent Variable: The variable that is antecedent to the dependent variable is termed as an
independent variable.
• Example: For instance, if we say that height depends upon age, then height is a dependent variable
and age is an independent variable. Further, if in addition to being dependent upon age, height also
depends upon the individual’s sex, then height is a dependent variable and age and sex are
independent variables.
• Extraneous variable: Independent variables that are not related to the purpose of the study, but
may affect the dependent variable are termed as extraneous variables.
• Example: The researcher wants to test the hypothesis that there is a relationship between
children’s gains in social studies achievement and their self-concepts. In this case self-concept is an
independent variable and social studies achievement is a dependent variable. Intelligence may as
well affect the social studies achievement, but since it is not related to the purpose of the study
undertaken by the researcher, it will be termed as an extraneous variable.
• Whatever effect is noticed on dependent variable as a result of extraneous variable(s) is technically
described as an ‘experimental error’.
• A study must always be so designed that the effect upon the dependent variable is attributed
entirely to the independent variable(s), and not to some extraneous variable or variables.
• Control: One important characteristic of a good research design is to minimize the influence or
effect of extraneous variable(s). The technical term ‘control’ is used when we design the study
minimising the effects of extraneous independent variables. In experimental researches, the term
‘control’ is used to refer to restrain experimental conditions
• Confounded relationship: When the dependent variable is not free from the influence of
extraneous variable(s), the relationship between the dependent and independent variables is said
to be confounded by an extraneous variable(s).
• The research hypothesis is a predictive statement that relates an independent variable to a
dependent variable. Usually a research hypothesis must contain, at least, one independent and one
dependent variable. Predictive statements which are not to be objectively verified or the
relationships that are assumed but not to be tested, are not termed research hypotheses
• Experimental and non-experimental hypothesis-testing research: When the purpose of research is to test a
research hypothesis, it is termed as hypothesis-testing research. It can be of the experimental design or of the
non-experimental design.
• Research in which the independent variable is manipulated is termed ‘experimental hypothesis-testing
research’ and a research in which an independent variable is not manipulated is called ‘non-experimental
hypothesis-testing research’.
• For instance, suppose a researcher wants to study whether intelligence affects reading ability for a group of
students and for this purpose he randomly selects 50 students and tests their intelligence and reading ability
by calculating the coefficient of correlation between the two sets of scores. This is an example of non-
experimental hypothesis-testing research because herein the independent variable, intelligence, is not
manipulated.
• But now suppose that our researcher randomly selects 50 students from a group of students who are to take a
course in statistics and then divides them into two groups by randomly assigning 25 to Group A, the usual
studies programme, and 25 to Group B, the special studies programme. At the end of the course, he
administers a test to each group in order to judge the effectiveness of the training programme on the
student’s performance-level. This is an example of experimental hypothesis-testing research because in this
case the independent variable, viz., the type of training programme, is manipulated
• Experimental and control groups: In an experimental hypothesis-testing research when a group is
exposed to usual conditions, it is termed a ‘control group’, but when the group is exposed to some
novel or special condition, it is termed an ‘experimental group’. It is possible to design studies
which include only experimental groups or studies which include both experimental and control
groups.
• Treatments: The different conditions under which experimental and control groups are put are
usually referred to as ‘treatments’. In the illustration taken above, the two treatments are the usual
studies programme and the special studies programme. Similarly, if we want to determine through
an experiment the comparative impact of three varieties of fertilizers on the yield of wheat, in that
case the three varieties of fertilizers will be treated as three treatments
• Experiment: The process of examining the truth of a statistical hypothesis, relating to some
research problem, is known as an experiment. For example, we can conduct an experiment to
examine the usefulness of a certain newly developed drug. Experiments can be of two types viz.,
absolute experiment and comparative experiment. If we want to determine the impact of a
fertilizer on the yield of a crop, it is a case of absolute experiment; but if we want to determine the
impact of one fertilizer as compared to the impact of some other fertilizer, our experiment then will
be termed as a comparative experiment. Often, we undertake comparative experiments when we
talk of designs of experiments.
Important Experimental Designs
Experimental
Research
Design
Informal Formal
Before and Completely

After without Randomized
control design Design
After and Only

Randomized
With Control
block design
Design
Before and
Latin Square
after with
Design
control design
Factorial
Informal Experimental Designs
• Before-and-after without control design: In such a design a single test group or area is selected and
the dependent variable is measured before the introduction of the treatment. The treatment is
then introduced and the dependent variable is measured again after the treatment has been
introduced. The effect of the treatment would be equal to the level of the phenomenon after the
treatment minus the level of the phenomenon before the treatment. The main difficulty of such a
design is that with the passage of time considerable extraneous variations may be there in its
treatment effect.
Source and Adoption: C R Kothari, Research Methodology,

New Age International
• After-only with control design: In this design two groups or areas (test area and control area) are
selected and the treatment is introduced into the test area only. The dependent variable is then
measured in both the areas at the same time. Treatment impact is assessed by subtracting the
value of the dependent variable in the control area from its value in the test area. The basic
assumption in such a design is that the two areas are identical with respect to their behavior
towards the phenomenon considered. If this assumption is not true, there is the possibility of
extraneous variation entering into the treatment effect. However, data can be collected in such a
design without the introduction of problems with the passage of time.

• Before-and-after with control design: In this design two areas are selected and the dependent
variable is measured in both the areas for an identical time-period before the treatment. The
treatment is then introduced into the test area only, and the dependent variable is measured in
both for an identical time-period after the introduction of the treatment. The treatment effect is
determined by subtracting the change in the dependent variable in the control area from the
change in the dependent variable in test area.

Formal Experimental Designs
A Classification of Marketing Research Data
Marketing Research Data
Secondary Data Primary Data
Qualitative Data Quantitative Data
Descriptive Causal
Survey Observational Experimental

Data and Other Data Data
Qualitative vs. Quantitative Research
Qualitative Research Quantitative Research
Objective To gain a qualitative To quantify the data and generalize

understanding of the underlying the results from the sample to the
reasons and motivations population of interest
Small number of non- Large number of representative

Sample representative cases cases
Unstructured Structured
Data Collection
Non-statistical Statistical
Data Analysis
Develop an initial understanding Recommend a final course of action
Outcome
A Classification of Qualitative Research Procedures
Qualitative Research Procedures
Direct (Non disguised) Indirect

(Disguised)
Projective
Techniques
Focus Groups Depth Interviews
Association Completion Construction Expressive

Techniques Techniques Techniques Techniques
A Classification of Survey Methods
Survey
Methods
Telephone Personal Mail Electronic
In-Home Mall Intercept Computer-Assisted Internet

E-mail
Personal Interviewing
Traditional Computer-Assisted
Mail Interview Mail
Telephone Telephone
Interviewing Panel
Observation Methods
Disguised versus Undisguised Observation
• In disguised observation, the respondents are

unaware that they are being observed.
Disguise may be accomplished by using one-
way mirrors, hidden cameras, or
inconspicuous mechanical devices. Observers
may be disguised as shoppers or sales clerks.
• In undisguised observation, the respondents

are aware that they are under observation.
Observation Methods
Natural versus Contrived Observation
• Natural observation involves observing

behavior as it takes places in the environment.
For example, one could observe the behavior
of respondents eating fast food in Burger King.
• In contrived observation, respondents'

behavior is observed in an artificial
environment, such as a test kitchen.
A Classification of Observation Methods
Observation Methods
Personal Mechanical Audit Content Trace

Observation Observation Analysis Analysis
Observation Methods
Personal Observation
• A researcher observes actual behavior as it

occurs.
• The observer does not attempt to manipulate
the phenomenon being observed but merely
records what takes place.
• For example, a researcher might record traffic
counts and observe traffic flows in a
department store.
Observation Methods
Mechanical Observation
Do not require respondents' direct participation.

– the AC Nielsen audimeter
– turnstiles that record the number of people entering
or leaving a building.
– On-site cameras (still, motion picture, or video)
– Optical scanners in supermarkets
Do require respondent involvement.
– eye-tracking monitors
– pupilometers
– psychogalvanometers
– voice pitch analyzers
– devices measuring response latency
Observation Methods
Audit
• The researcher collects data by examining

physical records or performing inventory analysis.
• Data are collected personally by the researcher.
• The data are based upon counts, usually of
physical objects.
• Retail and wholesale audits conducted by
marketing research suppliers were discussed in
the context of syndicated data in
Observation Methods
Content Analysis
• The objective, systematic, and quantitative

description of the manifest content of a
communication.
• The unit of analysis may be words, characters
(individuals or objects), themes (propositions),
space and time measures (length or duration of
the message), or topics (subject of the message).
• Analytical categories for classifying the units are
developed and the communication is broken
down according to prescribed rules.
Observation Methods
Trace Analysis
Data collection is based on physical traces, or evidence, of past

behavior.
• The selective erosion of tiles in a museum indexed by the replacement rate was used to determine
the relative popularity of exhibits.
• The number of different fingerprints on a page was used to gauge the readership of various
advertisements in a magazine.
• The position of the radio dials in cars brought in for service was used to estimate share of listening
audience of various radio stations.
• The age and condition of cars in a parking lot were used to assess the affluence of customers.
• The magazines people donated to charity were used to determine people's favorite magazines.
• Internet visitors leave traces which can be analyzed to examine browsing and usage behavior by
using cookies.
A Comparative Evaluation of Observation Methods
Criteria Personal Mechanical Audit Content Trace

Observation Observation Analysis Analysis
Analysis
Degree of structure Low Low to high High High

Medium
Degree of disguise Medium Low to high Low High
High
Ability to observe High Low to high High Medium Low
in natural setting
Observation bias High Low Low Medium
Medium
Analysis Bias High Low to Low Low
Medium
Medium
General remarks Most Can be Expensive Limited
to Method of
flexible intrusive commu-
last resort
nications
Relative Advantages of Observation
• They permit measurement of actual behavior
rather than reports of intended or preferred
behavior.
• There is no reporting bias, and potential bias
caused by the interviewer and the interviewing
process is eliminated or reduced.
• Certain types of data can be collected only by
observation.
• If the observed phenomenon occurs frequently or
is of short duration, observational methods may
be cheaper and faster than survey methods.
Relative Disadvantages of Observation
• The reasons for the observed behavior may not be determined since little is known
about the underlying motives, beliefs, attitudes, and preferences.
• Selective perception (bias in the researcher's perception) can bias the data.
• Observational data are often time-consuming and expensive, and it is difficult to
observe certain forms of behavior.
• In some cases, the use of observational methods may be unethical, as in observing
people without their knowledge or consent.
It is best to view observation as a complement to survey methods, rather than as

being in competition with them.
A Comparative Evaluation of Survey Methods for International Marketing
Research
Table 6.4
Criteria Telephone Personal Mail Electronic
High sample control + + - -
Difficulty in locating + - + +
respondents at home
Inaccessibility of homes + - + +
Unavailability of a large + - + +
pool of trained interviewers
Large population in rural areas - + - -
Unavailability of maps + - + +
Unavailability of current - + - +
telephone directory
Unavailability of mailing lists + + - +
Low penetration of telephones - + + -
Lack of an efficient postal system + + - +
Low level of literacy - + - -
Face-to-face communication culture - + - -
Poor access to computers & Internet ? + ? -
Note: A (+) denotes an advantage, and a (–) denotes a disadvantage.
Concept Map
Concept Map
Concept Map
Concept Map
UNIT-III-BUSINESS RESEARCH
METHODS
NIT Rourkela
International
Measurement and Scaling
Measurement means assigning numbers or other symbols to characteristics of objects according to
certain prespecified rules.
The most important aspect of measurement is the specification of rules for assigning numbers to the
characteristics.
– One-to-one correspondence between the numbers and the characteristics being measured.
– The rules for assigning numbers should be standardized and applied uniformly.
– Rules must not change over objects or time.
Scaling
Scaling involves creating a continuum upon which measured objects
are located.
Consider an attitude scale from 1 to 100. Each respondent is assigned

a number from 1 to 100, with 1 = Extremely Unfavorable, and 100 =
Extremely Favorable. Measurement is the actual assignment of a
number from 1 to 100 to each respondent. Scaling is the process of
placing the respondents on a continuum with respect to their attitude
toward department stores.
Scale Characteristics and Levels of
Measurement
• All the scales that we use in research can be
described in terms of four basic characteristics.
• These characteristics are description, order,
distance, and origin, and together they define the
level of measurement of a scale.
• The level of measurement denotes what
properties of an object the scale is measuring or
not measuring. An understanding of the scale
characteristics is fundamental to understanding
the primary type of scales.
Measurement
• Description: By description, we mean the unique
labels or descriptors that are used to designate
each value of the scale. Some examples of
descriptors are as follows:
• 1=Female, 2=Male
• 1=Strongly disagree, 2= Disagree, 3=Neither
agree nor disagree, 4=Agree, and 5=Strongly
agree
• To amplify, Female and Male are unique
descriptors used to describe values 1 and 2 of the
gender scale
Measurement
• Order: By order, we mean the relative sizes or positions of the descriptors. There are no absolute
values associated with order, only relative values. Order is denoted by descriptors such as “greater
than,” “less than,” and “equal to.”
• For example, a respondent’s preference for three brands of athletic shoes is expressed by the
following order, with the most preferred brand being listed first and the least preferred brand last.
• Nike
• Reebok
• Adidas
• For this respondent, the preference for Nike is greater than the preference for Reebok. Likewise,
the preference for Adidas is less than the preference for Reebok.
Measurement
• Distance: The characteristic of distance means that absolute differences between the scale
descriptors are known and may be expressed in units. A five-person household has one person
more than a four person household, which in turn has one person more than a three-person
household. Thus, the following scale possesses the distance characteristic.
• Number of persons living in your household ___________________
• Notice, that a scale that has distance also has order. We know that a five-person household is
greater than the four-person household in terms of the number of persons living in the household.
Likewise, a three-person household is less than a four-person household. Thus, distance implies
order but the reverse may not be true.
Measurement
• Origin: The origin characteristic means that the scale has a unique or fixed beginning or true zero
point. Thus, an exact measurement of income by a scale such as: What is the annual income of our
household before taxes? $ ____________________ has a fixed origin or a true zero point. An
answer of zero would mean that the household has no income at all. A scale that has origin also has
distance (and order and description).
• Many scales used in marketing research do not have a fixed origin or true zero point, as in the
disagree-agree scale considered earlier under description. Notice that such a scale was defined as 1
Strongly disagree, 2 Disagree, 3 Neither agree nor disagree, 4 Agree, and 5 Strongly agree. However,
1 is an arbitrary origin or starting point.
Primary Scales of Measurement
• There are four primary scales of measurement: nominal,
ordinal, interval, and ratio.
• Nominal Scale: The numbers serve only as labels or tags for identifying and classifying
objects.
• When used for identification, there is a strict one-to-one correspondence between the
numbers and the objects.
• The numbers do not reflect the amount of the characteristic possessed by the objects.
• Each number is assigned to only one object and each object
has only one number assigned to it.
• The only permissible operation on the numbers in a nominal scale is counting.
• Common examples include Social Security numbers and
numbers assigned to football players. In marketing
research, nominal scales are used for identifying
respondents, brands, attributes, stores, and other objects
• Ordinal Scale : An ordinal scale is a ranking scale in which numbers are assigned to objects to
indicate the relative extent to which the objects possess some characteristic. An ordinal scale
allows you to determine whether an object has more or less of a characteristic than some other
object, but not how much more or less. Thus, an ordinal scale indicates relative position, not the
magnitude of the differences between the objects. The object ranked first has more of the
characteristic as compared to the object ranked second, but whether the object ranked second is a
close second or a poor second is not known.
• The ordinal scales possess description and order characteristics but do not possess distance (or
origin). Common examples of ordinal scales include quality rankings, rankings of teams in a
tournament, socioeconomic class, and occupational status. In marketing research, ordinal scales are
used to measure relative attitudes, opinions, perceptions, and preferences.
• Interval Scale: In an interval scale, numerically equal distances on the scale represent equal values
in the characteristic being measured. An interval scale contains all the information of an ordinal
scale, but it also allows you to compare the differences between objects.
• The difference between any two scale values is identical to the difference between any other two
adjacent values of an interval scale. There is a constant or equal interval between scale values. The
difference between 1 and 2 is the same as the difference between 2 and 3, which is the same as
the difference between 5 and 6. The distance between descriptors is known.
• A common example in everyday life is a temperature scale.
• In an interval scale, the location of the zero point is not fixed, i.e., these scales do not possess the
origin characteristic. Both the zero point and the units of measurement are arbitrary.
• Ratio Scale: A ratio scale possesses all the properties of the nominal, ordinal, and interval scales
and, in addition, an absolute zero point. Thus, ratio scales possess the characteristic of origin (and
distance, order, and description). Thus, in ratio scales we can identify or classify objects, rank the
objects, and compare intervals or differences. It is also meaningful to compute ratios of scale
values.
• Not only is the difference between 2 and 5 the same as the difference between 14 and 17, but also
14 is seven times as large as 2 in an absolute sense.
• Common examples of ratio scales include height, weight, age, and money. In marketing, sales,
costs, market share, and number of customers are variables measured on a ratio scale.
Source: (Malhotra & Dash, 2014)



A Comparison of Scaling Techniques

• Comparative scales involve the direct comparison of stimulus objects. For example, respondents
might be asked whether they prefer Coke or Pepsi. Comparative scale data must be interpreted in
relative terms and have only ordinal or rank order properties. For this reason, comparative scaling is
also referred to as nonmetric scaling. As shown in Figure 8.2, comparative scales include paired
comparisons, rank order, constant sum scales, Q-sort, and other procedures.
• Advantage: The major benefit of comparative scaling is that small differences between stimulus
objects can be detected. As they compare the stimulus objects, respondents are forced to choose
between them. In addition, respondents approach the rating task from the same known reference
points
• Disadvantage: The major disadvantages of comparative scales include the ordinal nature of the
data and the inability to generalize beyond the stimulus objects scaled. For instance, to compare RC
Cola to Coke and Pepsi, the researcher would have to do a new study. These disadvantages are
substantially overcome by the noncomparative scaling techniques.
• Non-Comparative Scales: also referred to as monadic or metric scales, each object is scaled
independently of the others in the stimulus set. The resulting data are generally assumed to be
interval or ratio scaled.
• For example, respondents may be asked to evaluate Coke on a 1-to-6 preference scale (1 not at all
preferred, 6 greatly preferred). Similar evaluations would be obtained for Pepsi and RC Cola. As can
be seen in Figure 8.2, noncomparative scales can be continuous rating or itemized rating scales. The
itemized rating scales can be further classified as Likert, semantic differential, or Stapel scales.
• Noncomparative scaling is the most widely used scaling technique in marketing research.
Comparative Scaling Techniques
• A) Paired Comparison Scaling: A comparative scaling technique in which a respondent is presented
with two objects at a time and asked to select one object in the pair according to some criterion.
The data obtained are ordinal in nature.

• B) Rank Order Scaling A comparative scaling technique in which respondents are presented with
several objects simultaneously and asked to order or rank them according to some criterion.

• C) Constant Sum Scaling: A comparative scaling technique in which respondents are required to
allocate a constant sum of units such as points, dollars, chits, stickers, or chips among a set of
stimulus objects with respect to some criterion.

• Q-sort scaling A comparative scaling technique that uses a rank order procedure to sort objects
based on similarity with respect to some criterion.
Non-Comparative Scaling Techniques
• A) Continuous Rating
Scale: In a continuous
rating scale, also referred
to as a graphic rating
scale, respondents rate
the objects by placing a
mark at the appropriate
position on a line that runs
from one extreme of the
criterion variable to the
other. Thus, the
respondents are not
restricted to selecting
from marks previously set
by the researcher.

• B) Itemized Rating Scales In an itemized rating scale,
the respondents are provided with a scale that has a
number or brief description associated with each
category. The categories are ordered in terms of scale
position, and the respondents are required to select
the specified category that best describes the object
being rated
• B1) Likert Scale: Named after its developer, Rensis
Likert, the Likert scale is a widely used rating scale that
requires the respondents to indicate the degree of
agreement or disagreement with each of a series of
statements about the stimulus objects
B1) Likert Scale:

Non-Comparative Scaling
Techniques
• B2) The semantic
differential is a 7-
point rating scale with
endpoints associated
with bipolar labels
that have semantic
meaning. In a typical
application,
respondents rate
objects on a number
of itemized, 7-point
rating scales bounded
at each end by one of
two bipolar
adjectives, such as
“cold” and “warm.”

• B3) The Stapel scale,: named

after its developer, Jan Stapel,
is a unipolar rating scale with
10 categories numbered from 5
to 5, without a neutral point
(zero).11 This scale is usually
presented vertically.
Respondents are asked to
indicate how accurately or
inaccurately each term
describes the object by
selecting an appropriate
numerical response category.
The higher the number, the
more accurately the term
describes the object, as shown
in the department store
project.

A conceptmap for non—comprtive
scaes

Sources of Error in Measurement
• Measurement should be precise and

unambiguous in an ideal research Respondent
study. This objective, however, is often

not met with in entirety. As such the
researcher must be aware about the
sources of error in measurement.
Sources of
Instrument Error in Situation
Measurement
Measurer
Sources of Error in Measurement
• (a) Respondent: At times the respondent may be reluctant to express strong negative feelings or it is just
possible that he may have very little knowledge but may not admit his ignorance. All this reluctance is likely to
result in an interview of ‘guesses.’ Transient factors like fatigue, boredom, anxiety, etc. may limit the ability of
the respondent to respond accurately and fully.
• (b) Situation: Situational factors may also come in the way of correct measurement. Any condition which
places a strain on interview can have serious effects on the interviewer-respondent rapport. For instance, if
someone else is present, he can distort responses by joining in or merely by being present. If the respondent
feels that anonymity is not assured, he may be reluctant to express certain feelings
• (c) Measurer: The interviewer can distort responses by rewording or reordering questions. His behavior, style
and looks may encourage or discourage certain replies from respondents. Careless mechanical processing may
distort the findings. Errors may also creep in because of incorrect coding, faulty tabulation and/or statistical
calculations, particularly in the data-analysis stage
• (d) Instrument: Error may arise because of the defective measuring instrument. The use of complex words,
beyond the comprehension of the respondent, ambiguous meanings, poor printing, inadequate space for
replies, response choice omissions, etc. are a few things that make the measuring instrument defective and
may result in measurement errors. Another type of instrument deficiency is the poor sampling of the universe
of items of concern.
Tests of Sound Measurement
• Sound measurement must meet the tests of
validity, reliability and practicality. In fact, these
are the three major considerations one should
use in evaluating a measurement tool.
• Validity refers to the extent to which a test
measures what we actually wish to measure.
• Reliability has to do with the accuracy and
precision of a measurement procedure .
• Practicality is concerned with a wide range of
factors of economy, convenience, and
interpretability .
Tests of Sound Measurement

Tests of Sound Measurement-
Reliability
• 1-Reliability: Reliability refers to the extent to which a scale produces consistent results if repeated
measurements are made.
• 1a) TEST-RETEST RELIABILITY: In test-retest reliability, respondents are administered identical sets
of scale items at two different times under as nearly equivalent conditions as possible. The time
interval between tests or administrations is, typically, two to four weeks. The degree of similarity
between the two measurements is determined by computing a correlation coefficient. The higher
the correlation coefficient, the greater the reliability
• 1b) ALTERNATIVE-FORMS RELIABILITY: In alternative-forms reliability, two equivalent forms of the
scale are constructed. The same respondents are measured at two different times, usually two to
four weeks apart, with a different scale form being administered each time. The scores from the
administration of the alternative-scale forms are correlated to assess reliability
• 1c) INTERNAL CONSISTENCY RELIABILITY: Internal consistency reliability is used to assess the
reliability of a summated scale where several items are summed to form a total score. In a scale of
this type, each item measures some aspect of the construct measured by the entire scale, and the
items should be consistent in what they indicate about the characteristic. This measure of reliability
focuses on the internal consistency of the set of items forming the scale.
Tests of Sound Measurement-
Reliability
• The simplest measure of internal consistency is split-half reliability. The items on the
scale are divided into two halves and the resulting half scores are correlated. High
correlations between the halves indicate high internal consistency. The scale items can be
split into halves based on odd- and even-numbered items or randomly.
• The coefficient alpha, or Cronbach’s alpha, is the average of all possible split-half
coefficients resulting from different ways of splitting the scale items. This coefficient varies
from 0 to 1, and a value of 0.6 or less generally indicates unsatisfactory internal
consistency reliability. An important property of coefficient alpha is that its value tends to
increase with an increase in the number of scale items. Therefore, coefficient alpha may
be artificially, and inappropriately, inflated by including several redundant scale items.
Tests of Sound Measurement-Validity
• 2. Test of Validity: Validity is the most critical criterion
and indicates the degree to which an instrument
measures what it is supposed to measure. Validity can
also be thought of as utility. In other words, validity is
the extent to which differences found with a measuring
instrument reflect true differences among those being
tested.
• one can certainly consider three types of validity in this
connection: (i) Content validity; (ii) Criterion-related
validity and (iii) Construct validity.
• 2a) CONTENT VALIDITY: Content validity, sometimes called face validity, is a subjective but
systematic evaluation of how well the content of a scale represents the measurement task at hand.
• The researcher or someone else examines whether the scale items adequately cover the entire
domain of the construct being measured. Thus, a scale designed to measure store image would be
considered inadequate if it omitted any of the major dimensions (quality, variety and assortment of
merchandise, etc.).
• Given its subjective nature, content validity alone is not a sufficient measure of the validity of a
scale
• 2b) CRITERION VALIDITY: Criterion validity reflects whether a scale performs as expected in relation
to other variables selected as meaningful criteria (criterion variables). Criterion variables may
include demographic and psychographic characteristics, attitudinal and behavioral measures, or
scores obtained from other scales. Based on the time period involved, criterion validity can take
two forms: concurrent and predictive validity.
• 2b1) Concurrent validity is assessed when the data on the scale
being evaluated and on the criterion variables are collected at the
same time. To assess concurrent validity, a researcher may develop
short forms of standard personality instruments. The original
instruments and the short versions would be administered
simultaneously to a group of respondents and the results
compared.
• 2b2) To assess predictive validity, the researcher collects data on
the scale at one point in time and data on the criterion variables at
a future time. For example, attitudes toward cereal brands could be
used to predict future purchases of cereals by members of a
scanner panel. Attitudinal data are obtained from the panel
members, and then their future purchases are tracked with scanner
data. The predicted and actual purchases are compared to assess
the predictive validity of the attitudinal scale
• 2c) CONSTRUCT VALIDITY: Construct validity addresses the question of what construct or
characteristic the scale is, in fact, measuring. When assessing construct validity, the researcher
attempts to answer theoretical questions about why the scale works and what deductions can be
made concerning the underlying theory. Thus, construct validity requires a sound theory of the
nature of the construct being measured and how it relates to other constructs. Construct validity is
the most sophisticated and difficult type of validity to establish.
• Construct validity includes convergent, discriminant, and nomological validity.
• 2C1) Convergent validity is the extent to which the scale correlates
positively with other measures of the same construct.
• 2C2) Discriminant validity is the extent to which a measure does

not correlate with other constructs from which it is supposed to differ.
It involves demonstrating a lack of correlation among differing
constructs.
• 2C3) Nomological validity is the extent to which the scale correlates in
theoretically predicted ways with measures of different but related
constructs. A theoretical model is formulated that leads to further
deductions, tests, and inferences. Gradually, a nomological net is built
in which several constructs are systematically interrelated.
• 3-Generalizability Generalizability refers to the extent to which one can generalize from the
observations at hand to a universe of generalizations. The set of all conditions of measurement
over which the investigator wishes to generalize is the universe of generalization.
• These conditions may include items, interviewers, situations of observation, and so on. A
researcher may wish to generalize a scale developed for use in personal interviews to other modes
of data collection, such as mail and telephone interviews.
• Likewise, one may wish to generalize from a sample of items to the universe of items, from a
sample of times of measurement to the universe of times of measurement, from a sample of
observers to a universe of observers, and so on.
UNIT-IV-BUSINESS RESEARCH
METHODS
NIT Rourkela
International
SAMPLING-KEY CONCEPTS
• A population is the aggregate of all the elements that share some common set of characteristics
and that comprise the universe for the purposes of the research problem. The population
parameters are typically numbers, such as the proportion of consumers who are loyal to a
particular brand of toothpaste. Information about population parameters may be obtained by
taking a census or a sample.
• Sampling frame: The elementary units or the group or cluster of such units may form the basis of
sampling process in which case they are called as sampling units. A list containing all such sampling
units is known as sampling frame. Thus sampling frame consists of a list of items from which the
sample is to be drawn.
• Sampling design: A sample design is a definite plan for obtaining a sample from the sampling
frame. It refers to the technique or the procedure the researcher would adopt in selecting some
sampling units from which inferences about the population is drawn. Sampling design is
determined before any data are collected.
• Census: A complete enumeration of the elements of a population or study objects.
• Sample: A subgroup of the elements of the population selected for participation in the study.
• Statisitc(s) and parameter(s): A statistic is a characteristic of a sample, whereas a parameter is a
characteristic of a population. Thus, when we work out certain measures such as mean, median,
mode or the like ones from samples, then they are called statistic(s) for they describe the
characteristics of a sample. But when such measures describe the characteristics of a population,
they are known as parameter(s). A parameter denotes the true value that would be obtained if a
census rather than a sample were undertaken. For instance, the population mean b g µ is a
parameter, whereas the sample mean ( X ) is a statistic. To obtain the estimate of a parameter from
a statistic constitutes the prime objective of sampling analysis.
• 5. Sampling error: Sample surveys do imply the study of a small portion of the population and as
such there would naturally be a certain amount of inaccuracy in the information collected. This
inaccuracy may be termed as sampling error or error variance. In other words, sampling errors are
those errors which arise on account of sampling and they generally happen to be random variations
(in case of random sampling) in the sample estimates around the true population values. The
meaning of sampling error can be easily understood from the following diagram:
Non-Sampling Error
• Non-sampling errors can be

attributed to sources other than
sampling, and they may be
random or nonrandom. They
result from a variety of reasons,
including errors in problem
definition, approach, scales,
questionnaire design,
interviewing methods, and data
preparation and analysis. For
example, the researcher designs
a poor questionnaire, which
contains several questions that
lead the respondents to give
biased answers. Non-sampling
errors consist of nonresponse
errors and response errors.
• Confidence level and significance level: The confidence level or reliability is the expected
percentage of times that the actual value will fall within the stated precision limits. Thus, if we take
a confidence level of 95%, then we mean that there are 95 chances in 100 (or .95 in 1) that the
sample results represent the true condition of the population within a specified precision range
against 5 chances in 100 (or .05 in 1) that it does not. Precision is the range within which the
answer may vary and still be acceptable; confidence level indicates the likelihood that the answer
will fall within that range, and the significance level indicates the likelihood that the answer will fall
outside that range. We can always remember that if the confidence level is 95%, then the
significance level will be (100 – 95) i.e., 5%; if the confidence level is 99%, the significance level is
(100 – 99) i.e., 1%, and so on.
• Precision level: When estimating a population parameter by using a sample statistic, the precision
level is the desired size of the estimating interval. This is the maximum permissible difference
between the sample statistic and the population parameter.

CHARACTERISTICS OF A GOOD SAMPLE
DESIGN
• The characteristics of a good sample design as under:
• (a) Sample design must result in a truly representative sample.
• (b) Sample design must be such which results in a small sampling error.
• (c) Sample design must be viable in the context of funds available for the research study.
• (d) Sample design must be such so that systematic bias can be controlled in a better way.
• (e) Sample should be such that the results of the sample study can be applied, in general, for the
universe with a reasonable level of confidence.
The Sampling Design Process
Fig. 11.1
Define the Population
Determine the Sampling Frame
Select Sampling Technique(s)
Determine the Sample Size
Execute the Sampling Process

1-Define the Target Population: Sampling design begins by specifying the target population. The target
population is the collection of elements or objects that possess the information sought by the
researcher and about which inferences are to be made. Defining the target population involves
translating the problem definition into a precise statement of who should and should not be included in
the sample. The target population should be defined in terms of elements, sampling units, extent, and
time.
• An element is the object about which or from which the information is desired. In survey research,
the element is usually the respondent.
• A sampling unit is an element, or a unit containing the element, that is available for selection at
some stage of the sampling process. Suppose that Revlon wanted to assess consumer response to a
new line of lipsticks and wanted to sample females over 18 years of age. It may be possible to
sample females over 18 directly, in which case a sampling unit would be the same as an element.
Alternatively, the sampling unit might be households. In the latter case, households would be
sampled and all females over 18 in each selected household would be interviewed. Here, the
sampling unit and the population element are different.
• Extent refers to the geographical boundaries.
• Time factor is the time period under consideration.
2-Determine the Sampling Frame: A sampling frame is a representation of the elements of the target
population. It consists of a list or set of directions for identifying the target population.
• Examples of a sampling frame include the telephone book, an association directory listing the firms
in an industry, a mailing list purchased from a commercial organization, a city directory, or a map.
3- Select a Sampling Technique: Selecting a sampling technique involves several decisions of a broader
nature. The researcher must decide whether to use nonprobability or probability sampling.
4-Determine the Sample Size: Sample size refers to the number of elements to be included in the study.
Determining the sample size is complex and involves several qualitative and quantitative considerations.
• Important qualitative factors that should be considered in determining the sample size include (1)
the importance of the decision, (2) the nature of the research, (3) the number of variables, (4) the
nature of the analysis, (5) sample sizes used in similar studies, (6) resource constraints.
4a- Importance of the Decision: In general, for more important decisions, more information is necessary
and the information should be obtained more precisely. This calls for larger samples, but as the sample
size increases, each unit of information is obtained at greater cost.
• The degree of precision may be measured in terms of the standard deviation of the mean. The
standard deviation of the mean is inversely proportional to the square root of the sample size. The
larger the sample, the smaller the gain in precision by increasing the sample size by one unit.
4b- Nature of the Research: The nature of the research also has an impact on the sample size. For
exploratory research designs, such as those using qualitative research, the sample size is typically small.
For conclusive research, such as descriptive surveys, larger samples are required.
4c- Number of Variables: Likewise, if data are being collected on a large number of variables, larger
samples are required. The cumulative effects of sampling error across variables are reduced in a large
sample.
4d- Nature of Analysis: If sophisticated analysis of the data using multivariate techniques is required,
the sample size should be large. The same applies if the data are to be analyzed in great detail. Thus, a
larger sample would be required if the data are being analyzed at the subgroup or segment level than if
the analysis is limited to the aggregate or total sample.
4e- Sample Size used in Similar Studies: Sample size is influenced by the average size of samples in
similar studies. Table 11.2 gives an idea of sample sizes used in different marketing research studies.
These sample sizes have been determined based on experience and can serve as rough guidelines,
particularly when nonprobability sampling techniques are used.
4f- Resource Constraints: Finally, the sample size decision should be guided by a consideration of the
resource constraints. In any marketing research project, money and time are limited. Other constraints
include the availability of qualified personnel for data collection.
Sample Size used in Marketing
Research Studies

5-Execute the Sampling Process: Execution of the sampling process requires a detailed specification of
how the sampling design decisions with respect to the population, sampling frame, sampling unit,
sampling technique, and sample size are to be implemented. If households are the sampling unit, an
operational definition of a household is needed. Procedures should be specified for vacant housing
units and for callbacks in case no one is at home. Detailed information must be provided for all sampling
design decisions.
The Sampling Design Process-Example

Classification of Sampling Techniques
Fig. 11.2
Source: (Malhotra & Dash, 2014) Sampling Techniques
Nonprobability Probability
Sampling Techniques Sampling Techniques
Convenience Judgmental Quota Snowball

Sampling Sampling Sampling Sampling
Simple Random Systematic Stratified Cluster Other Sampling

Sampling Sampling Sampling Sampling Techniques
Convenience Sampling
Convenience sampling attempts to obtain a sample of convenient elements.
Often, respondents are selected because they happen to be in the right place at
the right time.
– use of students, and members of social

organizations
– mall intercept interviews without qualifying the
respondents
– department stores using charge account lists
– “people on the street” interviews
Judgmental Sampling
Judgmental sampling is a form of convenience sampling in which the population
elements are selected based on the judgment of the researcher.
– test markets
– purchase engineers selected in industrial
marketing research
– bellwether precincts selected in voting behavior
research
– expert witnesses used in court
Quota Sampling
Quota sampling may be viewed as two-stage restricted judgmental sampling.
– The first stage consists of developing control categories, or quotas, of
population elements.
– In the second stage, sample elements are selected based on convenience or
judgment.
Population Sample
composition composition
Control
Characteristic Percentage Percentage Number
Sex
Male 48 48
480
Female 52 52
520
____ ____
____
100 100
1000
Snowball Sampling
In snowball sampling, an initial group of respondents is selected, usually at
random.
– After being interviewed, these respondents are

asked to identify others who belong to the target
population of interest.
– Subsequent respondents are selected based on
the referrals.
Simple Random Sampling
• Each element in the population has a known and equal probability of selection.
• Each possible sample of a given size (n) has a known and equal probability of being
the sample actually selected.
• This implies that every element is selected independently of every other element.
Systematic Sampling
• The sample is chosen by selecting a random starting point and then picking every ith element in
succession from the sampling frame.
• The sampling interval, i, is determined by dividing the population size N by the sample size n and
rounding to the nearest integer.
• When the ordering of the elements is related to the characteristic of interest, systematic sampling
increases the representativeness of the sample.
• If the ordering of the elements produces a cyclical pattern, systematic sampling may decrease the
representativeness of the sample.
For example, there are 100,000 elements in the population and a sample of 1,000 is desired. In this
case the sampling interval, i, is 100. A random number between 1 and 100 is selected. If, for
example, this number is 23, the sample consists of elements 23, 123, 223, 323, 423, 523, and so on.
Stratified Sampling
• A two-step process in which the population is partitioned into subpopulations, or
strata.
• The strata should be mutually exclusive and collectively exhaustive in that every
population element should be assigned to one and only one stratum and no
population elements should be omitted.
• Next, elements are selected from each stratum by a random procedure, usually
SRS.
• A major objective of stratified sampling is to increase precision without increasing
cost.
Stratified Sampling
• The elements within a stratum should be as homogeneous as possible, but the elements in
different strata should be as heterogeneous as possible.
• The stratification variables should also be closely related to the characteristic of interest.
• Finally, the variables should decrease the cost of the stratification process by being easy to measure
and apply.
• In proportionate stratified sampling, the size of the sample drawn from each stratum is
proportionate to the relative size of that stratum in the total population.
• In disproportionate stratified sampling, the size of the sample from each stratum is proportionate
to the relative size of that stratum and to the standard deviation of the distribution of the
characteristic of interest among all the elements in that stratum.
Cluster Sampling
• The target population is first divided into mutually exclusive and collectively exhaustive
subpopulations, or clusters.
• Then a random sample of clusters is selected, based on a probability sampling technique such as
SRS.
• For each selected cluster, either all the elements are included in the sample (one-stage) or a sample
of elements is drawn probabilistically (two-stage).
• Elements within a cluster should be as heterogeneous as possible, but clusters themselves should
be as homogeneous as possible. Ideally, each cluster should be a small-scale representation of the
population.
• In probability proportionate to size sampling, the clusters are sampled with probability
proportional to size. In the second stage, the probability of selecting a sampling unit in a selected
cluster varies inversely with the size of the cluster.
Strengths and Weaknesses of
Basic Sampling Techniques
Technique Strengths Weaknesses
Nonprobability Sampling Least expensive, least Selection bias, sample not
Convenience sampling time-consuming, most representative, not recommended for
convenient descriptive or causal research
Judgmental sampling Low cost, convenient, Does not allow generalization,
not time-consuming subjective
Table 11.3 Quota sampling Sample can be controlled Selection bias, no assurance of
for certain characteristics representativeness
Snowball sampling Can estimate rare Time-consuming
characteristics
Probability sampling Easily understood, Difficult to construct sampling

Simple random sampling results projectable frame, expensive, lower precision,
(SRS) no assurance of representativeness.
Systematic sampling Can increase Can decrease representativeness
representativeness,
easier to implement than
SRS, sampling frame not
necessary
Stratified sampling Include all important Difficult to select relevant
subpopulations, stratification variables, not feasible to
precision stratify on many variables, expensive
Cluster sampling Easy to implement, cost Imprecise, difficult to compute and
effective interpret results
Choosing Nonprobability vs.
Probability Sampling
Table 11.4
cont.
Example-NON PROBABILITY
SAMPLING

EXAMPLES-PROBABILITY SAMPLING

Concept Map-Sampling Techniques

Business Research Methods-UNIT-V
• Course book Source and Adoption: C R
International
Questionnaire and Form Design
• A questionnaire, whether it is called a schedule, interview form, or measuring instrument, is a
formalized set of questions for obtaining information from respondents.
Objectives of a Questionnaire
Any questionnaire has three specific objectives.
• First, it must translate the information needed into a set of specific questions
that the respondents can and will answer. Developing questions that respondents
can and will answer and that will yield the desired information is difficult.
• Second, a questionnaire must uplift, motivate, and encourage the respondent to
become involved in the interview, to cooperate, and to complete the interview.
Incomplete interviews have limited usefulness at best. In designing a
questionnaire, the researcher should strive to minimize respondent fatigue,
boredom, incompleteness, and nonresponse. A well-designed questionnaire can
motivate the respondents and increase the response rate.
• Third, a questionnaire should minimize response error. The potential sources of
error in research designs were discussed in Chapter 3, where response error was
defined as the error that arises when respondents give inaccurate answers or their
answers are mis-recorded or mis-analyzed. A questionnaire can be a major source
of response error. Minimizing this error is an important objective of questionnaire
design.
Questionnaire Design Process
Questionnaire Design Process
Fig. 10.1 Specify the Information Needed
Specify the Type of Interviewing Method

Source: Malhotra & Dash
(2014)
Determine the Content of Individual Questions
Design the Question to Overcome the Respondent’s Inability and Unwillingness to Answer
Decide the Question Structure
Determine the Question Wording
Arrange the Questions in Proper Order
Identify the Form and Layout
Reproduce the Questionnaire
Eliminate Bugs by Pre-testing

Measures of Central Tendency
• Measures of central tendency (or statistical averages) tell us the point about which items have a
tendency to cluster. Such a measure is considered as the most representative figure for the entire
mass of data. Measure of central tendency is also known as statistical average. Mean, median and
mode are the most popular averages.
• Mean: Mean, also known as arithmetic average, is the most common measure of central tendency
and may be defined as the value which we get by dividing the total of the values of various given
items in a series by the total number of items.

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BUSINESS RESEARCH METHODS

FACULTY : Prof. MAYANK YADAV

• 1-Qualitative: is concerned with subjective assessment of attitudes,

• 2-Quantitative: generation of data in quantitative form which can be

• Research is equally important for social scientists in studying

1. It relies on empirical evidence;

4. Good research is replicable: This characteristic allows research results to be

Source: C R Kothari, Research Methodology, New Age International

Should a new product be To determine consumer preferences

Should the advertising To determine the effectiveness

Should the price of the To determine the price elasticity

Single Cross- Multiple Cross-

Table. 3.1: Source: Malhotra & Dash. (2016).

Table. 3.2: Source: Malhotra & Dash. (2016).

Evaluation Cross-Sectional Design Longitudinal Design

Before and Completely

After and Only

Source and Adoption: C R Kothari, Research Methodology,

Source and Adoption: C R Kothari, Research Methodology,

Source and Adoption: C R Kothari, Research Methodology,

Marketing Research Data

Secondary Data Primary Data

Qualitative Data Quantitative Data

Survey Observational Experimental

Qualitative Research Quantitative Research

Objective To gain a qualitative To quantify the data and generalize

Small number of non- Large number of representative

Qualitative Research Procedures

Direct (Non disguised) Indirect

Association Completion Construction Expressive

Telephone Personal Mail Electronic

In-Home Mall Intercept Computer-Assisted Internet

• In disguised observation, the respondents are

• In undisguised observation, the respondents

• Natural observation involves observing

• In contrived observation, respondents'

Personal Mechanical Audit Content Trace

• A researcher observes actual behavior as it

Do not require respondents' direct participation.

• The researcher collects data by examining

• The objective, systematic, and quantitative

Data collection is based on physical traces, or evidence, of past

Criteria Personal Mechanical Audit Content Trace

Degree of structure Low Low to high High High

It is best to view observation as a complement to survey methods, rather than as

Consider an attitude scale from 1 to 100. Each respondent is assigned

Source: (Malhotra & Dash, 2014)

Source: (Malhotra & Dash, 2014)

Source: (Malhotra & Dash, 2014)

Source: (Malhotra & Dash, 2014)

Source: (Malhotra & Dash, 2014)

Source: (Malhotra & Dash, 2014)

Source: (Malhotra & Dash, 2014)

Source: (Malhotra & Dash, 2014)

Source: (Malhotra & Dash, 2014)

Source: (Malhotra & Dash, 2014)

• B3) The Stapel scale,: named

Source: (Malhotra & Dash, 2014)

Source: (Malhotra & Dash, 2014)

• Measurement should be precise and

study. This objective, however, is often

Source: (Malhotra & Dash, 2014)

• 2C2) Discriminant validity is the extent to which a measure does