Business Research Methodology

Chapter 9
Data Collection and Survey
Research
Primary Data vs. Secondary Data
Qualitative vs. Quantitative Research
 Qualitative Research Tools/Methods
• Qualitative research is an inquiry into the way people
interpret a certain social condition around them.
• It usually involves interviews or conversations, which
produce non-numerical data.
– Ex: Identifying how effective a government welfare
program is by talking to the people directly affected by it.
• Three most commonly used qualitative research
methods are
1. In-depth interviews,
2. Focus group discussions (FGDs) and
3. Observation.
 Qualitative Research Tools/Methods (cont’d)
1: In-depth interviews
• An in-depth interview may last 60–90 minutes and is
conducted face to face.
• They are semi-structured, which means that the
questions to be asked and issues to be addressed are
fluid and take shape as the interview unfolds.
• In-depth interviews are useful in situations where:
– The research topic is complex.
– The research topic is sensitive.
– The study requires detailed information.
• In-depth interview provides rich data and new insights,
but it’s costly and time-consuming.
 Qualitative Research Tools/Methods (cont’d)
2: Focus group discussions (FGDs)
• In a FGD, an interviewer talks (for 60 to 90 minutes) to a
group of people (about 6 to 12 participants) about their
perceptions, opinions, beliefs and attitudes towards an
idea, concept, service, product, etc.
• The participants are usually a group of people who are
similar in some way, such as their income, education, or
occupation.
• FGDs are most useful for:
– Identifying and defining problems
– Pre-testing topics or ideas to sharpen the research questions
– Learning people’s thoughts on project outcomes and impacts
 Qualitative Research Tools/Methods (cont’d)
3: Observation
• Researchers gather data by observing people’s behavior
or events in their natural setting.
• 2 main types of observation:
– Covert: No one knows they are being observed and the
observer is concealed.
– Overt: Everyone knows they are being observed.
• Observations are most useful when:
– You are gathering data on individual behaviors or interactions
between people.
– If respondents are unwilling or unable to provide data through
questionnaires or interviews, observation is a method that
requires little from participants.
Survey Research
 Definition of Survey Research
• Survey research is a quantitative method for
collection of information from a pool of
respondents by asking multiple survey
questions.
• Surveys ask respondents for information using
verbal or written questioning.
– Respondents are a representative sample of people
to provide answers to written or spoken questions.
– Interviews or questionnaires collect data through the
mail, on the telephone, online, or face-to-face.
• The more formal term, sample survey. 9
 Use/Importance of Surveys

• Major use of surveys includes:

– Identifying characteristics of target markets
– Measuring customer attitudes
– Describing consumer purchase patterns
– Measuring employee job satisfaction and
– Describing the risk aversion of financial
investors
• Most business surveys have multiple
objectives.
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 Pros and Cons of Surveys

• Quick
• Inexpensive
Pros • Efficient
• Accurate
• Flexible

• Poor Design
Cons • Improper Execution

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 Survey Methods Classification
• Survey Methods are classified based on-
– Method of communication
– The degrees of structure and disguise in the
questionnaire, and
– The time frame in which the data are gathered

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Survey Methods Classification (cont’d)
Types of Survey Methods based on Communication

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Types of Survey Methods based on Communication (cont’d)

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 Survey Methods based on Degrees of
Structure and Disguise in the Questionnaire
• Structured Question: Imposes a limit on the
number of allowable responses.
• Unstructured Question: Does not restrict the
respondents’ answers.
• Undisguised Questions: Straightforward
questions that assume the respondent is willing
to answer.
• Disguised Questions: Indirect questions that
assume the purpose of the study must be hidden
from the respondent.
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 Survey Methods based on Time frame /
Temporal Classification
• Cross-sectional Study: Various segments of a
population are sampled and data are collected
at a single moment in time.
– Impact of online security on bank performance.
• Longitudinal Study: Survey of respondents at
different times, thus allowing analysis of
response continuity and changes over time.
– For example, labor Statistics

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 Errors in Survey Research

Respondent
Systematic Error
Error (bias) Administrative
Total Error Error
Random
Sampling
Error

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 Random Sampling Error
• A statistical fluctuation that occurs because of
chance variation in the elements selected for the
sample.
• The difference between a sample statistic used to
estimate a population parameter and the actual
but unknown value of the parameter
• Can be reduced by
– Increasing the sample size and
– Ensuring that the sample adequately represents the
entire population

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 Systematic Error (Bias)

• Systematic error results from some imperfect

aspect of the research design or from a
mistake in the execution of the research.
– Includes all sources of error except random
sampling error, therefore, also called non-
sampling errors.
• Sample bias- A persistent tendency for the
results of a sample to deviate in one direction
from the true value of the population
parameter
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 Respondent Error
• Results from some respondent action or inaction.
• Nonresponse bias: The statistical differences
between a survey that includes only those who
responded and a perfect survey that would also
include those who failed to respond.
– Nonrespondents
– No contacts
– Refusals

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 Respondent Error…
• Response bias: Occurs when respondents either
consciously or unconsciously tend to answer
questions with a certain viewpoint that
misrepresents the truth.
– Deliberate Falsification: Average-person hypothesis is
more evident in savings account balances, car prices,
voting behavior, and hospital stays.
– Unconscious Misrepresentation: Response bias can
arise from the question format, the question content,
or some other stimulus. i.e. misunderstanding
question, language differences
• “Do you use toothpaste?” or “Do you use Colgate?”
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 Types of Response Bias
• Acquiescence (Agreement) Bias: Bias that results
because some individuals tend to agree with all
questions or to concur with a particular position.
– Questions about a new-product idea
• Extremity Bias: Bias that results because response
styles vary from person to person; some
individuals tend to use extremes when
responding to questions.

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 Types of Response Bias
• Interviewer Bias: Bias that occurs because the
presence of the interviewer influences answers.
– The interviewer’s age, sex, style of dress, tone of voice,
facial expressions, or other nonverbal characteristics
may have some influence on a respondent’s answers.
• Social Desirability Bias: Bias in responses caused
by respondents’ desire, either conscious or
unconscious, to gain prestige or appear in a
different social role.
– Incomes may be inflated, education overstated

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 Administrative Error

• An error caused by the improper

administration or execution of the research
task. Caused by
– Carelessness
– Confusion
– Neglect
– Omission or
– Some other blunder

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 Types of Administrative Error
• Data-processing Error: Occurs because of
incorrect data entry, incorrect computer
programming, or other procedural errors during
data analysis.
– Can be minimized by verifying each step in the data-
processing stage.
• Sample Selection Error: Error caused by improper
sample design or sampling procedure execution.
– Results in unrepresentative sample.
– For example, sample from the phone book.

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 Types of Administrative Error

• Interviewer Error: Mistakes made by

interviewers failing to record survey
responses correctly.
• Interviewer Cheating: The practice of filling
in fake answers or falsifying questionnaires
while working as an interviewer.

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Thank You!!!

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