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Business Research Methods

Chapter 4 - Research Design I


(Sampling and Methods of Data Collection
Topics to be discussed
• Research designs
• Research strategies
• Research approaches
• Sources of data: Primary and secondary data
• Population Vs Sample survey
• Sampling techniques
• Tools of primary data collection
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Research Design
• Research design is the plan, structure and strategy of investigation conceived

so as to obtain answers to research questions.

• A research design is a master plan specifying the methods and procedures for

collecting and analyzing the needed information.

• A research design is a blueprint or plan for the collection, measurement, and

analysis of data, created to answer your research questions.

• The way you choose to answer your research question will be influenced by

your research philosophy and approach.


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Characteristics of research design
• Neutrality

• The results collected in research should be free from bias

• Reliability

• Free from errors

• Validity

• Truthfulness of the result

• Generalization

• Results should be applicable to a population and not just to a limited sample.

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Types of research design

• Descriptive Research Design.

• Correlational Research Design.

• Diagnostic/exploratory Research Design.

• Explanatory Research Design.

(Already covered in chapter-1 when we discussed types of researches)

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Research strategy
• Research strategy provides the overall direction of the research including the
process by which the research is conducted.

• Some of the commonly used research strategies are:

• Experiment • Grounded theory

• Survey • Ethnography and


• Archival research
• Case study,

• Action research

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Experiment
• In their purest form experiments are infrequently used in management research,
their roots in natural science laboratory-based research.

• The purpose of an experiment is to study causal links; whether a change in one


independent variable produces a change in another dependent variable.

• Experiments therefore tend to be used in exploratory and explanatory research to


answer ‘how’ and ‘why’ questions.

• For instance, we do not want (for obvious reasons) to assign workers to highly
stressful situations to investigate the effect of work‐related stress on personal &
professional relations.
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Survey
• The survey strategy is usually associated with the deductive approach.

• A survey is a system for collecting information from or about people to describe,


compare, or explain their knowledge, attitudes, and behavior.

• It is a popular and common strategy in business and management research and is


most frequently used to answer who, what, where, how much and how many
questions.

• It therefore tends to be used for exploratory and descriptive research.

• Surveys are popular as they allow the collection of a large amount of data from a
sizeable population in a highly economical way.
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Case study
• Case studies focus on collecting information about a specific object, event or
activity, such as a particular business unit or organization.

• The idea behind a case study is that in order to obtain a clear picture of a
problem one must examine the real‐life situation from various angles and
perspectives using multiple methods of data collection.

• A case study has considerable ability to generate answers to the question


‘why?’ as well as the ‘what?’ and ‘how?’ questions, although ‘what?’ and ‘how?’
questions tend to be more the concern of the survey strategy.

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Action research
• Action research is a research strategy aimed at effecting planned changes.

• Here, the researcher begins with a problem that is already identified, and gathers
relevant data to provide a tentative problem solution. This solution is then
implemented.

• The effects are then evaluated, defined, and diagnosed, and the research
continues on an ongoing basis until the problem is fully resolved.

• Because it is so bound up in a particular situation, it is difficult to generalize the


results, i.e. to be confident that the action will be successful in another context.

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Grounded theory
• Grounded theory is a systematic set of procedures to develop an
inductively derived theory from the data.

• A grounded theory strategy is, particularly helpful for research to predict


and explain behavior, the emphasis being upon developing and building
theory.

• As much of business and management is about people’s behaviors, for


example consumers’ or employees’, a grounded theory strategy can be
used to explore a wide range of business and management issues

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Ethnography
• Ethnography is rooted firmly in the inductive approach.

• It emanates from the field of social anthropology.

• Ethnography involves immersion in the particular culture of the social group that is
being studied observing behavior, listening to what is said in conversations, and
asking questions. It thus aims to generate an understanding of the culture and
behavior of a social group from an “insider’s point of view.”

• This is obviously a research strategy that is very time consuming and takes place
over an extended time period as the researcher needs to immerse herself or himself
in the social world being researched as completely as possible.
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Archival research
• An archive is any collection of records.
• Archival research, makes use of administrative records and documents as the principal
source of data.

• Archival sources can be manuscripts, documents, records (including electronic


records), objects, sound and audiovisual materials, or other materials.

• Archival research is a research design which involves seeking out and extracting
evidence from archival records.

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Research approaches

• Research approaches are plans and the procedures for research that span the
steps from broad assumptions to detailed methods of data collection, analysis,
and interpretation.

• The three common approaches to conducting research are:

• Quantitative,

• Qualitative, and

• Mixed methods.

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Basics of sampling
• A sample is a “part Samples offer many benefits:

of a whole to show • Save costs: Less expensive to study the sample than the
what the rest is like”. population.

• Sampling helps to • Save time: Less time needed to study the sample than
determine the the population .
corresponding value • Accuracy(??): Since sampling is done with care and
of the population studies are conducted by skilled and qualified
and plays a vital role interviewers, the results are expected to be accurate.
in business research.
• Destructive nature of elements: For some elements,

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Basics of sampling …
Limitations of Sampling
Sampling Process
• Demands more rigid control in undertaking
sample operation. Defining the Developing
population a sampling
• Minority and smallness in number of sub- Frame

groups often render study to be suspected.


Specifying Determining
• Accuracy level may be affected when data is Sample Sample
Method Size
subjected to weighing.

• Sample results are good approximations at


SELECTING THE SAMPLE
best.
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Basics of sampling …
Sampling: Step 1 Sampling: Step 2

Defining the Universe Establishing the Sampling Frame

• Universe or population is the whole mass • A sample frame is the list of all elements in the
under study. population (such as telephone directories,

• How to define a universe: electoral registers, club membership etc.) from


which the samples are drawn.
• What constitutes the units of analysis?

• What are the sampling units? • A sample frame which does not fully represent
an intended population will result in frame
• What is the specific designation of the
error and affect the degree of reliability of
units to be covered?
sample result.
• What time period does the data refer to?
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Step – 3: Determination of Sample Size
• Sample size may be determined by using:

• Subjective methods (less sophisticated methods)

• The rule of thumb approach: eg. 5% of population

• Conventional approach: eg. Average of sample sizes of similar other studies;

• Cost basis approach: The number that can be studied with the available
funds;

• Statistical formulae (more sophisticated methods)

• Confidence interval approach.

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Determining Sample Size

• What data do you need to consider


• Variance or heterogeneity of population

• The degree of acceptable error (confidence interval)

• Confidence level

• Generally, we need to make judgments on all these variables

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Determining Sample Size

• Variance or heterogeneity of population


• Previous studies? Industry expectations? Pilot study?

• Sequential sampling

• Rule of thumb: the value of standard deviation is expected to be 1/6 of the


range.

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Determining Sample Size
• Formulas:

• Means n = (ZS/E) 2
• Proportions n = Z2 pq/ E2
• Percentiles n = pc (1 – pc) Z2/ E2

• Z at 95% confidence = 1.96


• Z at 99% confidence = 2.58

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Sample Size (Mean) – Eg.
• We are about to go on a recruitment drive to hire managers at the entry level. We need
to decide on a competitive salary offer for these new managers. From talking to some
HR professionals, we made a rough estimate that most new hires are getting starting
salaries in the $38-42,000 range and the average (mean) is around $39,000. The
standard deviation seems to be around $3000.

• I want to be 95% confident about the average salary and I’m willing to tolerate an
estimate that is within $500 (plus or minus) of the true estimate. If we’re off, we can
always adjust salaries at the end of the probation period.

• What sample size should we use?


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Sample Size (Mean)

• Solution:
• n = (ZS/E) 2
• n = ((1.96*3,000)/500)^2
• n  139 (plus allowance for a possible non-response)

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Sample Size (Proportion) – Eg.
• We’ve just started a new educational TV program that teaches viewers all about
research methods!

• We know from past educational TV programs that such a program would likely capture 2
out of 10 viewers on a typical night.

• Let’s say we want to be 99% confident that our obtained sample proportion of viewers
will differ from the true population proportions by not more than 5%.

• What sample size do we need? • Solution


• n = Z2 pq/ E2
• n = ((2.58^2)*0.2*0.8)/(0.05)^2
• n  426 (plus allowance for a possible non-response)

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Sample size (Percentage) – Eg.
• We wish to determine the required sample size with 95% confidence and 5% error
tolerance that the percentage of Americans preferring the Liberal party.

• A recent poll showed that 52% of Americans questioned preferred the Liberals.

• What is the required sample size?

• Solution:
• n = pc (100 – pc) Z2/ E2
• n = 0.52 (100 – 0.52) 1.962/ 0.052
• n  384 (plus allowance for a possible non-response)

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Sampling Vs. Non-sampling error
• Sampling error refers to differences between the sample and the population that exist
only because of the observations that happened to be selected for the sample.

• Increasing the sample size will reduce this type of error.

• Non-sampling errors are more serious and are due to mistakes made in the acquisition
of data or due to the sample observations being selected improperly.

• Three types of non-sampling errors:

• Errors in data acquisition,


Note: increasing the sample size will
• Non-response errors, and not reduce the non-sampling error.
• Selection bias.
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Step 4: Sampling Method

Sampling
Methods

Probability Non-
Samples probability

Systematic Stratified Convenience Snowball

Simple
Cluster Judgment Quota
Random

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Probability sampling
• Probability sampling – representativeness is most important

• Techniques of probability sampling get at different ways of ensuring representativeness

• Simple random sampling – randomly pick individuals to include in the sample

• All individuals must have an equal chance of being selected.

• As sample size increases, sample becomes more and more representative of


population.

• Sampling is generally without replacement

• Problem: can be very costly if population is large. Choices come from a list; who
makes the list?
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Probability sampling…..
• Systematic random sampling – samples according to a rule
• E.g., every fifth person is chosen

• Problems: same as simple random. Rule must not lead to bias.

• Stratified sampling – break the sample into various subgroups or strata and sample
from them.
• Must have good knowledge of strata

• Cluster sampling - the subjects are selected in groups or clusters rather than
randomly
• E.g., interviewing Kaldi’s employees
• Clusters would be every employee at a particular store.
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Probability sampling…..
• One-stage cluster sampling – sample all members of the cluster

• Two-stage cluster sampling – random sampling within the clusters

• Weighting of clusters: probability proportionate to size (PPS) sampling

• Not all clusters are the same size.

• Can weight the clusters to equate the difference.

• Can weight the chances of a cluster being selected

• Effectiveness of cluster sampling

• Much more efficient; less costly

• Not quite as effective as random sampling


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Probability sampling….
• Multi-stage sampling – random sampling in stages.

• E.g., voting in Addis Ababa

• Stage one – randomly choose 10 Kebelles in Addis Ababa

• Stage two – randomly choose households within those Kebelles.

• Stage three – randomly choose individuals within those households.

• Can have many stages.

• Especially useful if the population is very large.

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Non-probability sampling
• Qualitative researchers are not as concerned about representativeness
• Relevance to the research topic

• Importance of context

• Sample size does not have to be determined in advance.


• Selection of cases gradually over time

• Important: many statistics assume random sampling

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Non-probability sampling….
• Types of non-probability sampling

• Convenience sampling (haphazard, accidental) – sample whoever is available.

• Used by both quantitative and qualitative researchers

• Problems

• no representativeness

• It is haphazard, can be very biased

• Not random

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Non-probability sampling….

• Quota sampling - quotas for certain types of people or organizations are selected as
sample

• Interviewers are required to find cases with particular characteristics

• E.g., certain number of samples from each regions, age groups, etc.

• Like nonrandom version of stratified

• Pros: better than convenience; introduce some diversity

• Cons: theoretical quotas must be accurate to be useful.

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Non-probability sampling….
• Purposive sampling - Use judgment and deliberate effort to pick individuals who meet a
specific criteria.

• Especially good for exploratory or field research.

• Appropriate for at least 3 situations.

1. Select cases that are especially informative.

2. Desired population for the study is rare or very difficult to locate.

3. Case studies analysis – find important individuals and study them in depth.

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Non-probability sampling….
• Snowball sampling – an individual or group of individuals are sampled. They provide
other sources to be sampled.

• Sampling snowballs into a large selection.

• Chain sampling

• Useful for hard to identify groups.

• E.g., study of criminal organizations

• May lead to biased sample

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Dealing with Hidden Populations
• Individuals that participate in hidden behavior or organizations.

• Must often mix sampling procedures

• Snowball sampling a good start – can lead to others

• Issues:

 Confidentiality – many of these groups are hidden for a reason.

 Provide anonymity

 Often need to get their confidence

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Where do data come from?
• Take a step back – if we’re starting from scratch, how do we collect / find data?

• Secondary data

• Secondary data – data someone else has collected

• Primary data

• Primary data – data you collect

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Secondary Data – Limitations
• What did you find on the frustrating side as you looked for data on the government
offices’ official websites?

• When was it collected? For how long?

• May be out of date for what you want to analyze.

• May not have been collected long enough for detecting trends.

• Is the data set complete?


• There may be missing information on some observations

• Unless such missing information is caught and corrected for, analysis will be biased.

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Secondary Data – Limitations
• Are there confounding problems?

• Sample selection bias? Source choice bias?

• In time series, did some observations drop out over time?

• Are the data consistent/reliable?

• Did variables drop out over time? Did variables change in definition over time?

• Is the information exactly what you need?

• In some cases, may have to use “proxy variables” – variables that may
approximate something you really wanted to measure. Are they reliable? Is there
correlation to what you actually want to measure?
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Secondary Data – Advantages
• No need to reinvent the wheel.
• If someone has already found the data, take advantage of it.

• It will save you money.


• Even if you have to pay for access, often it is cheaper in terms of money than
collecting your own data.

• It will save you time.


• Primary data collection is very time consuming.

• It has great exploratory value


• Exploring research questions and formulating hypothesis to test.
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Primary Data - Limitations

• Do you have the time and money for:

• Designing your collection instrument?

• Selecting your population or sample?

• Pretesting/piloting the instrument to work out sources of bias?

• Administration of the instrument?

• Entry of data?

• Uniqueness- may not be able to compare to other populations

• Researcher error - Sample bias? Other confounding factors?

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Data collection choice
• What you must ask yourself:

• Will the data answer my research question/address objectives?

• To answer that

• You must first decide what your research question/objective is.

• Then you need to decide what data is needed to scientifically answer the question

• If that data exist in secondary form, then use them to the extent you can, keeping in
mind limitations.

• But if it does not and you are able to fund primary collection, then it is the method of
choice.
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Primary Data - Examples

• Focus groups discussion

• Questionnaires

• Personal interviews

• Experiments and observational study

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Designing a Questionnaire
• A survey is only as good as the questions it asks

• The underlying research problem and objectives must be clearly understood by the
researchers

• Using common sense, good grammar and imagination alone cannot guarantee
producing a high quality questionnaire

• Good questionnaires require experience and a knowledge of the respondents’ level of


awareness, education and understanding in order to maximize feedback and minimize
respondent and other potential sources of error

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Typical Issues in Questionnaire Design
• What should the respondents be asked?

• How should each question be phrased?

• In what sequence should the questions be arranged?

• What is the best questionnaire layout for the research problem in question?

• What communication medium should be utilized (personal, telephone interview etc.)

• Should the questionnaire be pretested?

• How should the questionnaire be pretested?

• Does the questionnaire require a revision?


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Questionnaire Relevancy & Accuracy
• Questionnaires must fulfill the two fundamental criteria of relevance and
accuracy

• Relevancy means that no unnecessary information is obtained from the


questionnaire and that all the information that is needed for the purpose of the
research is collected, and that no important information is omitted

• Accuracy means that the questions are worded in a manner which ensures the
collection of correct information from respondents

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Phrasing Questionnaires
• Open-Ended Questions – These require the respondent to answer the question in his or
her own words. They are good for exploratory research.

• Open-ended questions allow the respondent to ask or probe the respondent further if
he/she feels that clarification or additional information, is needed.

• Disadvantage:

• Difficulties of analyzing the data and in categorizing and summarizing answers


because of the unique responses.

• Also, there is the possibility of bias and bias caused by the different education levels
of the respondents
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Phrasing Questionnaires….
• Fixed-Alternative Questions –require the respondent to choose, among a limited
number of alternative given
• Fixed Alternative questions allow the respondent to ask or probe the respondent further
if he/she feels that clarification of a point, or additional information, is needed.
• Advantages include requiring less time, less skill and ease of answer for
respondents.
• Disadvantages are that the researcher may be basing the response structure on
assumptions which may be incorrect, and that there may be additional responses
which are not indicated.
• Also, care must be taken to ensure that response categories are mutually exclusive
and do not overlap

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Phrasing Questionnaires…
• Some important guidelines for phrasing questionnaires include:

• Avoidance of Complexity / Use Simple Language – Respondents may have quite


different educational backgrounds and conversational levels (from quiet and shy
to articulate) which have to be taken into consideration when designing a
questionnaire which is intended for general circulation. Technical jargon should
only be considered when the group of respondents is homogenous and familiar
with the jargon

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Phrasing Questionnaires…
• Avoidance of “Leading” and “Loaded” Questions

• Leading means implying certain answers which respondents are pushed towards;

• Loading pushes the respondent towards a socially desirable or politically correct


answer or puts a question which is emotionally charged.

• Counter-biasing Statements

• Respondents are presented with an introductory statement or preface to a


question or section of questions that may help reduce the respondents reluctance
to answer the question(s).

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Phrasing Questionnaires…
• Avoidance of Ambiguity – Respondents must not be presented with terms and words
that are vague or general or which cause confusion and misunderstanding (example:
How “frequent” do you go to the internet cafe?

• Avoidance of Double-Barreled Questions – Questions which address two or more issues


simultaneously

• Avoidance of Assumptions – Respondents are presented with assumptions which cause


them to give biased responses

• Avoidance of Burdensome/Memory Taxing Questions – Respondents are asked to give


answers to questions which they may not be in a position to give due to forgetfulness
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Sequencing Questions in Questionnaires

• Asking questions requiring respondents to give personal details at the beginning of the
questionnaire is generally not recommended unless it is relevant to the objectives

• Usually, researchers prefer to ask general questions from respondents before moving
on to specific questions (funnel technique)

• Often, it is advisable to produce multiple versions of a questionnaire in which fixed-


alternative responses are shuffled about

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Layout of Questionnaires
• Don‘t overcrowd the questionnaires

• Use margins of adequate size

• Use white space if needed to separate sections of the questionnaire

• Keep questionnaires as brief as possible

• Use good quality paper

• Ensure that the title and subtitles of the questionnaire are carefully phrased and
captures the respondents attention

• Include a privacy and confidentiality clause

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Pretesting Questionnaires
• Pretesting is a very useful method for determining whether respondents have any
difficulty/ambiguity in understanding the questions

• The respondents involved in a pretest should be similar in essence to target respondents

• Personal interviewers are often used for pretesting provide answers to important
questions for the business researcher, such as:

• Can the questionnaire format be followed by the respondents?

• Does the questionnaire flow naturally and conversationally?

• Can respondents answer the questions easily?

• Which alternative forms of questions work best?


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Administering a written questionnaires
Overall purpose: When need to quickly and/or easily get lots of information
from people in a non threatening way

• Advantages • Challenges

• Can be completed anonymously • Might not get careful feedback

• Inexpensive to administer • Wording can bias client's

• Easy to compare and analyze responses

• Administer to many people • Doesn't get full story

• Many sample questionnaires


already exist
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Points to consider in phrasing questions

• Clarity – asking for frequency:

Rather than saying: You may ask


• Very Often • Every Day or More
• Often • 2-6 Times a Week
• Sometimes • About Once a Week
• Rarely • About Once a Month
• Never • Never

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Questionnaires....
• Avoid Double Negatives

• It is not the case that I have never cheated on my tax returns.

• Never should one not help others

• Avoid Objectionable or Irrelevant Questions unless directly related to the topic

• How old are you?

• Have you answered each question truthfully?

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Questionnaires….

Reverse Score to Reduce Response Bias

• I am often sad. • I often feel happy.


• Strongly Agree • Strongly Agree
• Agree and • Agree
• Undecided • Undecided
• Disagree • Disagree
• Strongly Disagree • Strongly Disagree

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Questionnaires….
• Exhaustive & mutually exclusive categories
• What is your age?
• under 10
• 10-20
• 20-30
• 30-40
• 40-50

• What is your marital status?


• single
• Married
• divorced

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Observation
• The researcher makes himself/herself available at the premise of the study subject and
observes events

• There is high degree of reliability on the data collected

• Costly, time taking and impractical for large sample size study

• To gather accurate information about how a program actually operates, particularly


about processes

• View operations as they are actually occurring

• Can adapt to events as they occur

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Observation, cont’ed

• Disadvantage:
• can be difficult to interpret seen behaviors

• can be complex to categorize observations

• can influence behaviors of program participants

• can be expensive

Note: to make the best use of observation, it is better to have a pre-set categorization
of possible observable phenomena or criteria of acceptance or rejection. To do so,
preset observation checklist is indispensable.

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Interview
• Overall Purpose
• When a researcher wants to fully understand someone's impressions or
experiences, or learn more about their answers to questionnaires
• Advantages
• Get full range and depth of information

• Can be flexible with interviewees


• Disadvantages
• Can take much time
• Can be hard to analyze and compare
• Can be costly
• Interviewer can bias client's responses
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Preparation for Interview
1. Choose a setting with little distraction
2. Explain the purpose of the interview

3. Address terms of confidentiality

4. Explain the format of the interview

5. Indicate how long the interview usually takes

6. Tell them how to get in touch with you later if they want to

7. Ask them if they have any questions

8. Don't count on your memory to recall their answers record or jot


down points

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Types of Interviews
1. Informal, conversational interview

• The interviewer “goes with the flow”

2. General interview guide approach

• Ensure that the same general area of information are collected from all interviewees

3. Standardized, open-ended interview

• Same open-ended questions are asked to all interviewees

• It facilitates faster interviews that can be more easily analyzed and compared

4. Closed, fixed-response interview - all interviewees are asked the same questions and
asked to choose answers from among the same set of alternatives
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Sequence of Questions
1. Get the respondents involved in the interview as soon as possible.

2. Before asking about controversial matters (such as feelings and conclusions), first
ask about some facts

3. Intersperse fact-based questions throughout the interview

4. Ask questions about the present before questions about the past or future

5. The last questions might be to allow respondents to provide any other


information they prefer to add and their impressions of the interview.

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Carrying Out Interview
• Ask one question at a time

• Attempt to remain as neutral as possible

• Encourage responses with occasional nods of the head

• Be careful about the appearance when note taking

• Provide transition between major topics

• Don't lose control of the interview

• Write down any observations made during the interview right after the interview

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END

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