Chapter V

RESEARCH METHODOLOGY
Chapter V Research Methodology

RESEARCH METHODOLOGY

5.1. Introduction

Research is the process of generating knowledge about reality. Research is a

structured inquiry that utilizes acceptable scientific methodology to solve problems
and creates new knowledge that is generally applicable1. Scientific research is a
systematic, controlled empirical and critical investigation of propositions about the
presumed relationships about various phenomena2. Research methodology describes
the methods of formulating a research problem, conceptualizing a research design,
constructing valid and reliable instruments for data collection, selecting the sample
frame, collecting, processing, analyzing and interpreting data, drawing conclusions
and writing the research report. This chapter aims at describing the methodology
used for undertaking this research work. The nature of the study, sampling design,
sources of data, methods of data collection and analysis done on the data collected
are included in this chapter.

5.2. Nature of the study

Consumer decision making has long been of interest to researchers.

Beginning about 300 years ago early economists, led by Nicholas Bernoulli, John
von Neumann and Oskar Morgenstern, started to examine the basis of consumer
decision making (Richarme 2007)3. Consumers are viewed as rational decision
makers who are only concerned with self-interest (Schiffman and Kanuk 20074,
Zinkhan 19925). Engel, Kollat and Blackwell (1990)6 defined consumer behaviour as
“acts of individuals directly involved in obtaining and using economic goods and
services, including the decision processes that precede and determine these acts”.
They pointed out that although the word “behaviour” is used to include only the
overt purchasing act which is the obvious aspect of the decision process. Consumer
behaviour also reflects the less discernible, but none the less important processes
that underlie and accompany consumption. The need to understand consumer
behaviour flows naturally from the premise of the marketing concept, which
illustrates the conscious effort of firms to achieve desired exchange outcomes with
target markets (Kohli and Jaworski, 1990)7. Understanding consumer behaviour is

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very crucial and critical to successful delivery of a firm’s offerings in the market
place because it provides knowledge for market-opportunity analysis, target market
selection, marketing-mix determination, formulation and implementation of
proactive marketing strategies, effective regulatory policy and social marketing.

This is primarily an empirical study on the expectations of buyers about

Villas and Apartments, factors influencing buying behavior, buyer objectives and
level of satisfaction of buyers. The influence of external factors and internal factors
in buying decisions with regard to Villas and Apartments are also studied. A
descriptive research approach was adopted for this study, in order to satisfy the
research objectives. Descriptive research includes surveys and fact finding enquiries
of different kinds. The major purpose of descriptive research is description of the
state of affairs as it exists at present. Structured questionnaires were administered
among the buyers of Villas and Apartments located in select districts in Kerala. The
data collected were analysed using statistical tools and the findings are presented in
subsequent part of the thesis.

5.3. Area of the Study

The study was carried out by collecting data from the buyers of Villas and
Apartments from select districts in Kerala. For the purpose of the study, the state of
Kerala was divided into three regions. They are North, Central and South. From
each region, two districts having largest number of completed projects were
selected. Accordingly Thiruvanthapuram and Kottayam districts were selected from
south zone, Ernakulam and Thrissur were selected from central zone, Kozhikode
and Kannur districts were selected from north zone.

5.4. Period of Study

Period of study was from March 2011 to January 2016.

5.5. Sampling Design

5.5.1. Population

The study was conducted among the buyers of Villas and Apartments in
Kerala. It is estimated that, in Kerala there are 1032 Apartment Projects. [Source:
Survey Report on Private Residential Apartments in Kerala (2013), Statistics cell,

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Office of the Chief Town Planner, Department of Town & Country Planning,
Government of Kerala] and 212 villas [Source: official web sites of CREDAI &
Kerala Builders Association (2013)].

5.5.2. Sampling method

Multistage Stratified proportional sampling method was used for the

collection of data. As the first stage in the sample selection, the state of Kerala was
divided in to three regions on geographical basis namely South, Central and North.
Southern region includes four districts: Thiruvanthapuram, Kollam, Alappuzha,
Pathanamthitta and Kottayam. The Central region includes Ernakulam, Idukki,
Thrissur and Palakkad. The Northern region covers the districts Malappuram,
Kozhikode, Wayanad, Kannur and Kasaragod. In the second stage, from each zone,
two districts having highest number of projects were selected. Accordingly
Thiruvanthapuram and Kottayam districts were selected from south zone,
Ernakulam and Thrissur selected from central zone, Kozhikode and Kannur districts
were selected from north zone. In the next stage, Villa and Apartment projects in
selected districts were categorized into three groups, based on the number of
dwelling units in each project. In the case of Apartment projects, the groups include
projects with ‘0-40 units’, ‘40-80 units’ and ‘more than 80 units’. In the case of
Villa projects, the groups include projects with ‘less than 5 units’, ‘5-10 units’ and
‘more than 10 units’. In the subsequent stage, number of respondents to be contacted
from each group was determined by using specific criteria for Villas and
Apartments. In the case of Apartments, sixty percentages of units from each group
were selected, which was 597. Then it was rounded off to 600. In the case of Villas,
sixty percentages of units from each group were selected, which was 114. Then it
was rounded off to 150. Simple Random sampling method was used for identifying
the respondents.

5.5.3. Sample size

750 respondents were contacted for the purpose of collecting primary data
required for the study. Out of this 600 respondents were the buyers of Apartments
and 150 were the buyers of Villas.

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Table 5.1 Sample size - Apartments

No. of
Total No. of No. of
Name of District District selected Units in
Projects Projects Respondents
a Project

< 40 119 72
Thiruvanthapuram 178
40 - 80 45 27
Thiruvanthapuram
Kollam 4 >80 14 9

South Alappuzha 11

< 40 24 14
Pathanamthitta 2
Kottayam 40 - 80 10 6

Kottayam 35 >80 1 8

< 40 337 202

Idukki 0
Ernakulam 40 - 80 144 87

Ernakulam 554 >80 33 20

Central
< 40 89 54
Thrissur 119
Thrissur 40 - 80 27 17

Palakkad 14 >80 3 9

Malappuram 1 < 40 70 42

Kozhikode 83 Kozhikode 40 - 80 12 8

Wayanad 0 >80 1 1
North
< 40 16 10
Kannur 26
Kannur 40 - 80 7 5

Kasaragod 5 >80 3 9

Total 1032 600

There were 1032 completed apartment projects in Kerala at the time of data
collection for this study. Out of this 230 projects were in southern region, 687
projects in central region and 115 projects in northern region. Two districts having

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highest number of projects completed from each region were identified. Accordingly
Thiruvanthapuram and Kottayam districts were selected from southern region,
Ernakulam and Thrissur were selected from central region, Kozhikode and Kannur
districts were selected from northern region.

In the next stage, projects in districts were categorized into three groups:
projects with ‘less than 40 units’, ‘40-80 units’ and ‘more than 80 units’. Then 60%
of numbers of projects in each group district wise were considered. The total number
was 579 which was rounded off to 600. Thus 108 respondents were considered from
Thiruvanthapuram district, 28 from Kottayam district, 309 respondent from
Ernakulam district, 80 respondent from Thrissur district, 51 respondent from
Kozhikode district, 24 from Kannur districts.

Table 5.2 Sample size - Villas

No. of
Total No. of No. of
Name of District District selected Units in a
Projects Projects Respondents
Project

Thiruvanthapuram 25 <5 4 5

Kollam 0 Thiruvanthapuram 5 - 10 14 10

Alappuzha 2 >10 7 6
South
<5 3 4
Pathanamthitta 2
Kottayam 5 - 10 8 7

Kottayam 13 >10 2 3

<5 15 11
Idukki 0
Ernakulam 5 - 10 57 36

Ernakulam 91 >10 19 13
Central
<5 8 7
Thrissur 36
Thrissur 5 - 10 23 16

Palakkad 15 >10 5 5

Malappuram 0 <5 3 4

North Kozhikode 15 Kozhikode 5 - 10 10 8

Wayanad 3 >10 2 3

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No. of
Total No. of No. of
Name of District District selected Units in a
Projects Projects Respondents
Project

<5 2 3
Kannur 10
Kannur 5 - 10 7 6

Kasaragod 0 >10 1 3

Total 212 150

There were 212 completed Villa projects in Kerala at the time of data
collection for this study. Out of this 42 projects were in southern region, 142
projects in central region and 28 projects in northern region. Two districts having
highest number of projects completed from each region were identified. Accordingly
Thiruvanthapuram and Kottayam districts were selected from southern region,
Ernakulam and Thrissur were selected from central region, Kozhikode and Kannur
districts were selected from northern region.

In the next stage, projects in districts were categorized into three groups:
projects with ‘less than 5 units’, ‘5-10 units’ and ‘more than 10 units’ Then 60% of
number of projects in each group district wise were considered. The total number
was 114 which was rounded off to 150. Thus 21 respondents were considered from
Thiruvanthapuram district, 14 from Kottayam district, 60 respondents from
Ernakulam district, 28 respondents from Thrissur district, 15 respondents from
Kozhikode district, 12 from Kannur districts.

5.6. Types of data used

Both primary data and secondary data were used for this study.

5.7. Sources of data

5.7.1. Primary data

Primary data were collected from 750 respondents who are the buyers of
Apartments/villas. 600 respondents were the buyers of Apartments and 150
respondents were the buyers of Villa from select districts in Kerala.

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5.7.2. Secondary data

The secondary data for this research study were collected from various
sources like journals, articles, publications, press releases, previous study reports,
working papers, and the internet. This include publications of central, state, and
local governments; journals, books, magazines, websites, newspapers; reports and
publications of concerned organizations; reports prepared by research scholars;
public records and statistics, historical documents and other sources of published
information. The data collected from the secondary sources provided the Researcher
considerable insight for this research work.

5.8. Methods of data collection

5.8.1. Primary data

Primary data were collected through survey method.

5.8.2. Secondary data

Secondary data were collected through desk research.

5.9. Tools for data collection

Primary data were collected through a structured questionnaire. Separate

questionnaire were used for the buyers of Apartments and buyers of Villa.

5.9.1. Questionnaire design

The questionnaires were designed to collect data required to meet the

specific objectives set for the study. The questions were prepared, keeping in mind
the variables identified for the study and were arranged in logical sequence. The
questionnaire used for the survey has eleven sections. The first section was aimed at
collecting the personal data of the respondents. The data collected were name, place
of residence, locality, age, gender, educational qualification, employment status,
family status and monthly income. The second section dealt with factors influencing
buying decision. Third section was used to identify the preferences of the buyers.
The fourth section contained buyers’ expectation about Villas and Apartments. The
fifth section dealt with buyers’ expectation from builder. Sixth section was about the
external factors and the seventh section was regarding internal factors. Eighth

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section aimed at collecting data on buyers’ opinion about risk factors. Ninth section
covered pricing and investment factors. Tenth section was concerned with the
buyers’ objectives and Eleventh section dealt with satisfaction of respondents on
present housing conditions. All variables were measured by using Likert scale with
five points. In order to get accurate responses from the respondents the researcher
promised to keep the confidentiality of data and assured to utilize the data only for
academic purposes. The copies of questionnaires are given in the Appendix.

5.9.2. Pilot study

A pilot study was conducted with the help of the draft questionnaire. The
study helped the researcher to get accustomed with the actual situation. The pilot
study was conducted among 25 buyers of Villas and 75 buyers of Apartments. In the
case of Apartments, data were collected from 30 respondents each from south region
and central region and 15 from north region. Similarly, in the case of Villas, 10
buyers each from south and central regions and 5 from north region were contacted.

The questionnaire contained multi-item scales for measuring different

variables. The measurement accuracy of a multi item scale mainly depends on its
reliability and validity. The consistency and stability of the data collection
instruments determines its reliability. Naresh K. Malhotra et al. (2011)8 explains
reliability as the extent to which a scale produces consistent results if repeated
measures are made on the characteristic. Ranjit Kumar (2009)9 describes that in
social sciences it is impossible to have a research tool which is 100 per cent
accurate, not only because it is impossible to control the factors affecting reliability.
Some of these factors are: the wording of the questions, the physical settings, the
respondents’ mood and the nature of interaction.

Andy Field (2009)10 suggests spilt-half reliability method as the simplest way
to do check the reliability of an instrument. This method randomly splits the data set
into two. A score for each participant is then calculated based on each half of the
scale. If a scale is very reliable a person’s score on one half of the scale should be
same (or similar) to their score on the other half. Therefore across several
participants, scores from the two halves of the questionnaire should correlate
perfectly well. The correlation between the two halves is the statistic computed in

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the spilt half method, with large correlations being a sign of reliability. The problem
with this method is that there are several ways in which a set of data can be split into
two and so the results could be a product of the way in which the data were split. To
overcome this problem, Cronbach (1951) came up with a measure that is loosely
equivalent to splitting data in two in every possible way and computing the
correlation coefficient for each split. The average of these values is equivalent to
Cronbach’s alpha (α), which is the most common measure of scale reliability.
Cronbach’s, alpha is:

N 2 Cov
α=
Σσ 2 + ΣCovitem
N = Number of items

Cov = Average covariance between items

σ2 = item variance

Covitem = item Covariance

The alpha coefficient takes the value between 0 and 1. The value 0 indicates
no consistency and value 1 indicates complete consistency between the various
items of a multiple item scale. The value above 0.7 implies the acceptable level of
reliability of the measuring scale. Cronbach’s, alpha coefficient is computed for all
the multi item scales used in the questionnaire and the alpha values obtained were
above 0.7. This ensures that the reliability of the questionnaire is within the
acceptable level. The reliability scores of the variables computed are shown below.

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Table 5.3 Cronbach Alpha values

Construct No. of Items Cronbach Alpha

Dwelling Unit Features 12 .753

Dwelling Unit Support services 25 .730

Social Environment 6 .860

Neighbourhood Facilities 7 .855

Documentation 5 .823

Builders Reputation 9 .844

Management procedures 4 .785

Sales Person Characteristics 12 .863

Brand Preference 7 .871

promotional Schemes 25 .855

External Environment 25 .758

Internal Environment 53 .831

Pricing & Investment Factors 9 .811

Buyer Objectives 18 .750

Satisfaction of Present Housing Condition 43 .894

Validity is the ability of a measuring instrument to measure what it is

designed to measure. While designing the questionnaire all aspects of validity
especially: (i) face validity – the logical link between the questions and the
objectives of the study, (ii) content validity – the questions cover the full range of
the issue or attitude being measured, and (iii) construct validity – the theoretical and
logical support for what construct, the scale is being measured were carefully
considered. The validity of the questionnaire was assessed in the pilot study and
suitable corrections were made in the questionnaire wherever appropriate. Based on
these, necessary modifications were made and the questionnaires were finalised.

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5.9.3. Questionnaire administration

Questionnaire was administered directly to the respondents. In the case of

buyers of Apartments, 772 questionnaires were distributed and 684 were returned.
From this 600 completed questionnaires were taken for the study. In the case of
buyers of Villas, 188 questionnaires were distributed and 167 were returned. From
this 150 completed questionnaires were taken for the study.

5.10. Data analysis

5.10.1. Processing of Data

The data collected were subjected to editing, coding, classification and

tabulation. In the first step – editing, the researcher carefully scrutinized the filled up
questionnaires to ensure that the data collected were complete and adequate, so as to
facilitate coding and tabulation. Then the researcher assigned numerals to answers
so that responses can be put into a limited number of categories or classes. Then the
data were arranged in groups or classes on the basis of common characteristics. In
the final step – tabulation, the researcher arranged the data in the form of appropriate
tables for further analysis.

5.10.2. Tools used for data analysis

The Statistical Package for Social Sciences (SPSS 21.0) was used for data
analysis. Appropriate statistical assessments and tests were applied for data analysis
and hypotheses testing. The results are presented in tables.

The statistical techniques and tools used in the study are:

i. Descriptive analysis.

ii. Correlation analysis

iii. Regression Analysis

iv. ANOVA

Descriptive analysis

It is a way of presenting data that shows the number of cases having each of
the attributes of a particular variable. This analysis converts large sets of data to

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more meaningful, easier to interpret, values. It summarizes the data with useful
statistical measures such as mean, standard deviation etc.

Correlation analysis

Correlation was used to measure the closeness of relationship between two

variables, more exactly of the closeness of linear relationship. But correlation does
not predict anything about the cause and effect relationship. Correlation analysis was
used to establish the relationship between expectations and consumer behaviour of
buyers of Villas and Apartments in Kerala.

Regression Analysis

Regression analysis studies the relationship among two or more variables.

The relationship can be described and measured in a functional form. If the
relationship between two variables, one dependent and the other independent
variable is a linear function then the linear function is called a simple linear
regression. The independent variable X can affect dependent variable Y. The basic
relationship between X and Y is given below:

Y = a+bX

Where, the symbol Y denotes the estimated value of Y for a given value of X. This
equation is known as the regression equation of Y on X. When there are two or more
than two independent variables, the analysis concerning relationship is known as
multiple correlation and the equation describing such relationship is the multiple
regression equation. Multiple regression equation assumes the form:

Y = a + b1X1+b2X2

Where X1 and X2 are two independent variables, Y is dependent variable and the
constants a, b1 and b2 can be solved using three normal equations.

In the present study, Multiple Regression Analysis was employed.

ANOVA

ANOVA technique investigates any number of factors which are

hypothesized or said to influence the dependent variable. In this study ANOVA was
applied in two perspectives. Firstly ANOVA was used to find out the difference

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among external factors, internal factors, buyers expectation about Villas and
Apartments, buyers expectation from builder, buyer objectives, price and investment
aspects, Vasthu aspects, construction related risk aspects, buying decision and
satisfaction level of buyers in Villas and Apartments in Kerala. Secondly it was used
to test the demographical differences on the study variables.

5.11. Tools for presentation of data

Tables and charts were used to present the data.

5.12. Conclusion

The researcher has used descriptive research for this study. The study was
done by collecting data from 600 buyers of Apartments and 150 buyers of Villas
located in select districts in Kerala. These districts were selected using specific
criteria. Separate questionnaires were used for collecting the primary data from the
two different groups of respondents. The data thus collected were analyzed using
Descriptive analysis, Correlation analysis, Regression Analysis and One-way
ANOVA.

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Reference

1. Grinnel Richard Jr. (1993). Social Work, Research and Evaluation, (4th ed.).
F. E. Peacock Publishers, Illinois, p. 4., as cited by Ranjit Kumar. (1999).
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publications Ltd., New Delhi, p. 6.

2. Kerlinger Fred N. (1986). Foundations of Behavioural research, (3rd ed.).

Holt, Rinehart and Winston, New York, p. 10 as cited by Ranjit Kumar.
(1999). Research Methodology – A step by step guide for beginners. Sage
publications Ltd., New Delhi, p. 6.

3. Richarme, M., 2-6-7. Consumer Decision-Making Models, Strategies, and

Theories, Oh My!, [online]. Available from: www.decisionanalyst.com/
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4. Schiffman, L. G., et al., (2007). Consumer Behavior. 9th ed. New Jersey:
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5. Zinkhan, G. M., (1992). Human Nature and Models of Consumer Decision

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6. Engel, F., Kollat, D.T. and Blackwell, R.D. (1990). Consumer Behaviour,
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7. Kohli, A.K and Jaworski, B.J. (1990). “Market Orientation: The Construct,
Research Propositions, and Managerial Implications”, Journal of Marketing,
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8. Naresh K. Malhotra and Satyabhushan Dash. (2011). Marketing Research –

An Applied Orientation, (6th ed.). Pearson Prentice Hall, India, New Delhi,
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9. Ranjit Kumar. (2009). Research Methodology – A step by step guide for

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10. Andy Field. (2009). Discovering Statistics Using SPSS (3rd ed.). Sage
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