BUSINESS RESERACH METHODS

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 M.B.A. II Sem.
BUSINESS RESEARCH METHODS

UNIT - II
Research Design: Variables and types of variables, Review
of Literature and Its use. Research Design and Types of re-
search designs, Need for Research Design, Features of a Good
research design and Different reserch design- Exploratory,
Descriptive. Experimental and Survey Research.
 VARIABLES AND TYPES OF VARIABLES
Another aspect of aproblem definition is identification of the key variables. The term variable is an important
one in research. A variable is defined as anything that varies or changes in value. Because a variable represents a
quality that can exhibit differences in value, usually in magnitude or strength, it may be said that a variable generally
is anything that may assume different numerical or categorical values.
Key variables should be identified in the problem definition stage. In statistical analysis a variable is identified
by a symbol, such as X. Categories or numerical values may then be associated with this symbol. The variable “sex”
may be categorized as male or female; sex is therefore a categorical - or classificatory - variable because it has a
limited number of distinct values. On the other hand, sales volume may encompass an infinite range of numbers; it is
therefore a continuous variable - one with an infinite number of possible values.
To address the specific problem, managers and researchers should be careful to identify all of the relevant
variables that must be studied. Variables that are superfluous (i.e., not directly relevant to the problem) should not be
included.
Concepts Variables
1) Rich Income per year, or total value of home(s) car(s),
2) High academic achivement % of marks
3) Effectiveness of a health program No. of patients serviced in a month/year.

Causal model
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Types of variable

Unit of measurement

Independent Intervening Extraneous Dependent

variables variables variables variables

Continuous Categorical or
variables discrete variables

Constants Dichotomies Polytomics

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 Casual Relationship
(4) Connecting or linking
variables

Cause Effect

(1) Change (2) Outcome

variables variables

(3) Variables that affect the

relationship

1. Independent variable : The cause supposed to be responsible for bringing about change(s) in a phenomenon
or situation.
2. Dependent variable : Outcome/effect variable.
3. Extraneous variable : Several other factors operating in a real-life situation may affect changes in the
dependent variable.
4. Intervening variable : Variables that link a cause and effect relationship are called intervening variables.

Smoking Cancer
(Assumed cause) (Assumed effect)

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Independent variable Dependent variable

Affect the relationship

 The age of the person

For example :  The extent of his/her smoking
 The duration of smoking
 The extent of daily exercise etc.

Extraneous variables

From the Point of View of the unit of Measurement : Categorical variables can be of three types :
1) constant ; 2) dichotomous ; 3) polytomous.
When a variable can have only one value or category, for example taxi, tree and water, it is known as a
constant variable : When a variable can have only two categories as in yes/no, good/bad and rich/poor, it is
known as a dichotomous variable : When a variable can be divided into more than two categories, for example :
religion (Christian, Muslim, Hindu); political parties (Labour, Liberal, Democrat); and attitudes (strongly favourable,
favourable, uncertain, unfavourable, strongly unfavourable), it is called a polytomous variable.
Continuous variables, on the other hand, have continuity in their measurement; for example, age, income
and attitude score. They can take on any value on the scale on which they are measured. Age can be measured in
years, months and days. Similarly, income can be measured in Rs.

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 RESEARCH DESIGN
Research Design : A research design is a controlling plan for a research study in which the methods and procedures
for collecting and analyzing the information to be collected is specified. It is a framework or plan for study that guides
the collection and analysis of data.
The word ‘design’ means to work out the structure or form, as by making a sketch or plan. Thus, ‘Research
Design’ is planning a strategy or drawing a blue print of conducting research. It is a guideline for collecting and
utilizign data so that desired information can be obtained with sufficient precision and hypothesis can b e tested
properly. A research is designed for the purpose of producing results that may be applied to real world situations. It
not only enables a researcher to anticipate potential problems that can occur during the actual operation of the
research, but also to limit boundaries of research study.
A research design in simple words, is a plan of action, a plan for collecting and analysing data in economic,
efficient and relevant manner. The purpose of preparing research design could be either to test a hypothesis or to
give a cause effect relationship to the given situation.
DEFINITION OF RESEARCH DESIGN
“Research design represents a compromise dicted by the many practical considerations that go into social
research ..... A research design is not a highly specific plan to be followed without deviation, but rather a series of
guide posts to keep one in the right direction.”
- E.A. Suchaman

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“A research design is the arrangement of conditions from collection and analysis of data in a manner that aims
to combine relevance to the research purpose with economy in procedure”.
- Selluz, Jahoda, Deutsch and Cook
“Designed research” as the planned sequence of the entire process involved in conducting a research study.
- Miller
“Research design is a catalogue of the various phases and facts relating to the formulation of a research effort.
It is an arrangement of the essential conditions for collection and analysis of data in a form that aims to combine
relevance to research purpose with economy in the procedure”.
- Selltiz
STEPS IN RESEARCH DESIGN
1. Select and define the problem : The first step is to select and define the problem “clearly in operational
terms so that the researcher knows positively what facts he is looking for and what is relevant to the study.
Since human behaviour, as an interaction pattern, is the result of various forces it is best to delimit the scope of
one’s study which reap sample benefits during the actual course of data collection”. It must be ensured that the
problem selected is practicable in costs of time and money. For the researcher should not be selected.
2. Sources of Data : The researcher must state clearly the various sources of information such as library,
personal documents, field work, a particular residential group, after the problem has been selected.
3. Nature of Study : The research design must be in relation to the nature of study to be undertaken. The choice
of the statistical, experimental or comparative type of study should be made at this stage to facilitate other
steps in planning.
4. Object of Study : It must be made clear whether the design aims at a theoretical understanding or presupposes
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 a “welfare” notion. “Stating the object of the study aids not only in clarity of the design, but also in a sincere
response from the respondents”.
5. Social Cultural Context : A social research design is set to context which has a social and cultural bearing
on the individuals. Thus the meaning of the term must be clearly defined otherwise there may appear variation
in the study.
6. Geographical Limit : It is essential to mention the geographical limit of the design at this stage so that the
research related to the hypothesis is applicable only to particular social groups.
7. Dimension : It is very difficult to analyse the data collected from a large universe. Therefore the selection of
an adequate and representative sample is the key and this can be done depending upon the dimension of the
proposed study.
8. Bases of selection : The next step is to select adequate and representative sample and this may be done by
adopting the mechanics of drawing a random, stratified, purposive, double cluster or quota sample.
9. Techniques of Data Collection : A suitable technique, relevant to the problem of study and design, should
be adopted for the collection of required data. The relative merits of “Observation”,. “Interview” and
“Questionnaire”, when studied together will help in the choice of suitable technique. From here will follow the
coding and presentation of report.
FEATURES OF A GOOD RESEARCH DESIGN
It is a challenge to translate general scientific model into a practical research operation. Therefore, designing
a research study is not a simple task. There is nothing like completely correct design or completely incorrect design.

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A design may work very well for one research problem and may not work at all for the other. There are some
features, however, a good research design should posses. They are :
1. Freedom from bias : A good research design should ensure that the method of data collection and analysis
would not cause the data to vary in a systematic way. That is to say that the data should be free from
systematic errors.
2. Freedom from confounding : In a good research design the variables involved in the study are separated
from each other so that they do not influence each other.
3. Control of extraneous variables : In a well-designed research study the variables that are not under
scrutiny do not influence the experimental variables in a systematic way for example things like temperature,
time of day etc.
4. Statistical precision for teting hypothesis : A research design should ensure that the data are recorded at
a level of precision that will yield statistically meaningful results.
5. With in resources : A design should draw limits of a research study so that it could be completed within
available resources like time, money and staff.
6. Optimality : The best research desing is one, which yields maximum precision in terms of bias and variance
using minimum resources in terms sample size, time and money.
7. Objectivity : If operated by more than one researcher a good research design obtains same results. Thus, a
good research design should be free from the subjectivity of its performer.
8. Flexibility : It is often observed that one has to deviate from the basic research design during the operation
of the research study due to real world problems. A good research design is one, which not only has the
potential to predict such practical problems, but also is flexible enough to incorporate changes in it whenever
needed.
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 NEED FOR RESEARCH DESIGN
Research is a scientific investigaton of problem for which we need a systematic plannng of research. For a
successful research we need a research design because it includes.
(i) the formulation of a strategy to resolve 2 particular question
(ii) the collection and recording of information and evidence
(iii) the processing and analysis of these data and their interpretation and
(iv) the publication of results.
A research design states structure and process of conducting a research process. Thus, it shows a path to
researcher without which he may be lost or confused as to what next step he has to take. More so, it also takes care
of budget and time frame of the research study. All this planning can only make a research study a success story.
COMPONENT OF RESEARCH DESIGN
1. Title of the research project : The title should be brief, precise and should project the scope of the problem
in generalised terms.
2. Purpose of the study : The purpose of any research is the acquisition of knowledge. A brief mention of the
significance of the study area in the present context of social life should be attempted highlighting the main
purpose which prompted the investigator to take up the present study.
3. Review of literature : As a next step the researcher should go through all the existing literature relating to his
problem. This is essential to know whether the problem has already been investigated before. If so how and
to what extent. Through the review, the researcher will get acquainted with the different areas covered by

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various studies. Finally a critical appraisal of previous studies is more meaningful, useful and a correct approach
in any field of investigation.
4. Statement of the problem : Once the research is able to get a complete knowledge of the subject under
study from various sources, he must be in a position to state his research problem in unambiguous and more
precise terms. He should be very clear in his plan of research.
5. Scope of the investigation : The researcher should decide in the very beginning as so what he is going to
investigate. He should take into consideration the time, money available to him, availability of sample, his
ability to collect information from the respondents etc. Once the scope of the investigation is delimited, the
investigator will report the scope in explicit terms while giving out the limitations of his study.
6. Objectives of the study : If the researcher lacks a clean understanding of the purpose of his research-its
theoretical and practical implications, he is likely to be insensitive to the nature of the problem to be studied,
the type of data needed, the appropriate approach and the level of precision required. Care has to be taken
that the objectives of the study are well within the scope of the investigation envisaged by him.
7. Concepts and variables used in the investigation : It is dsirable that the research worker should make
himself familiar with the concepts-normal and operational definitions used in the investigation. He should also
possess the intimate knowledge of the variables that are to be applied to the problem. In the absence of such
knowledge of the concepts and variables the researcher is likely to commit methodological errors and the
deduction drawn by him may not be sound.
8. Selection of hypothesis : Hypothesis are tentative solution to a problem. The success of a research study
depends upon how best hypothesis has been selected by the researcher. The hypothesis should be clear,
specific, capable of empirical test and must be related to body of theory and available technique. So the
researcher’s job is to clearly lay down the hypothesis for testing and verification. This will help him in delimiting
the scope of his study.
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9. Selection of the sample : Sampling study is becoming more and more popular and important in any
investigation. The vastness of population, the difficulties of contacting people, high refusal rate, difficulties of
ascertaining the universe make sampling the best alternative in case of research studies. While selecting the
sample, the investigator should consider the definition of the population, size of the sample, representative of
the sample. The results and sampling should attain a sufficiently high standard of accuracy.
10. Data collection : Collection of data is of atmost importance for a research investigation. If the data is not
accurate and adequate, the findings are bound to be misleading. The researcher should decide the methods
which are to be used for data collection; whether it is questionnaire, an interview schedule, a case study or
observation method or a combination of any of these. All the same the researcher must be unbiased, sharp
and courteous to respondents so that he can get proper feedback relevant to the research problem.
11. Processing, analysis and tabulation of data : All collected data need to be processed for their inconsistencies
on inaccuracies. Planning of analysis in advance is not always possible because new ideas occur to the
investigator as he collects the information. Depending on the nature of the data and the information required
by the hypothesis the investigator should subject the data to appropriate statistical analysis. Each statistical
technique serves a special purpose and has a special set of assumptions which must be met before it can be
used for analysis and interpretation. The researcher is advised to tabulate the results in a meaningful way. Each
table should be followed by a discussion.
12. Interpretation of the results : Knowledge of previous studies will have a great impact on the interpretation
of results. The researcher should be very definite that his plan of research is based on sound scientific lines. He

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can safely generalise the findings obtained in his study through indutive inference. The results ofthe investigation
are to be interpreted to uncover any additional factors which could not be visualised by the investigator
earlier.
13. Verification : The conclusion drawn through a research study is subject to verification at any time. Verifiability
presupposes that the phenomena must be capable of being observed and measured. The results should not
contradict the earlier findings which were proved to be correct.
14. Conclusions report : The results verified can be used for drawing conclusions. Hence verification helps in
drawing specific conclusions. The report should be simple, specific and directed related to the objective of the
study.
15. Suggestions for future research : Research is not an end in itself. The researcher should be able to give
right directions to the future researchers from the insights he has gained during the investigation.
16. Bibliography : In preparing the research design, the researcher is expected to give the references for further
information on various aspects of research work. Name of the author, title, year, publication and page number
should be included in bibliography.
17. Appendixes : Appendixes are relatively short sections normally reported before bibliography. Big tables,
figures, notes, copy of questionnaire, case study, to name a few are included in the appendixes.
To conclude, research design varies in its complexity and adequacy depending on the nature of the problem,
the data, the facilities for carrying out the study, the research sophistication and competence of the investigator .
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 TYPES OF RESEARCH DESIGN
After the formulation and definition of research problem, the next step is to choose an appropriate research
design. Every research study is unique in itself, but there are certain things common in these studies. On the basis of
these commonalities one can categorize the research studies by research methods and procedures used to collect
and analyze data. Accordingly a research design in chosen.
There are three basic types of research designs :
Research design Purpose
1. Exploratory research design for ambiguous problem.
2. Descriptive or diagnostic research design for aware of partially defined problem.
3. Causal or Hypothesis testing or Experimental research design for clearly defined problem.
1. Exploratory research design
Exploratory research is defined as collecting information in an unstructured and informal way. For example, a
restaurant owner may regularly visit other competing restaurants in order to gather information about menu
selection, prices and service quality.
In exploratory type of research, the invetigation may be conducted because a problem has not been clearly
defined. In helps in determining the best research design, data collection method and selection of subjects.
Usually exploratory research is qualitative in nature. Some times exploratory research may even conclude that
a perceived problem does not actually exist.

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Generally an exploratory research design helps in finding out the feasibility of the research problem, getting
familiar with various components of the study, generating new ideas, and formulating the hypothesis. Exploratory
research designs are of different forms depending on the nature and objectives of the study. The following
three forms depending on the nature and objective of the study. The following three forms are most popular.
(i) Literature Survey : In any research, review of literature is an essential part. The literature survey is
carried out at a preliminary stage of the research. Through the review, one understands the work that
has already been done and what more can be exlored in one’s chosen field. The theories and techniques
used in the existing literature can be used in the present analysis or these can be modified to give better
results.
The literature are the documentary sources of information which are contained in the published and
unpublished documents, reports, statistics, manuscripts, letters, diaries, and so on. It is important for
scientific workers to scrutinize these sources very closely. Since not all documents can be consulted, it
is best to start a selective process early. The theory and techniques of the literature must serve useful
purpose in the present study. And, their meaning should not have altered with changing circumstances
with the passage of time.
(ii) Expert Survey : Expert Survey or experience survey means consulting the experienced researchers
who are experts in the field of study. On should no be shy in taking advice and guidance of such people.
They should be given sometime witht he problem before asking them questions about the study, so that
they can give their opinion after a good thought on the problem.
(iii) Example Survey : In case fo a new type of studies sometimes neither much literature nor expert
advice is available. In such situations it is advisable to go through some case studies performed in the
past. This refers to ‘insight simulating examples’. Single cases or a group of cases, as may be
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 relevant to the research study are selected and studied in order to collect data for main study.
The research process becomes circular over a period of time. Exploratory research, directly or indirectly
helps in formulating the hypothesis which are then tested by conclusive research. The conclusive research may also
give birth to new ideas or throughts which may lead to further research.

Vague Problem

Exploratory Research

Hypothesis

New Ideas, Thoughts Doubts etc. Conclusive Research

Decision

2. Descriptive or diagnostic research design

Descriptive studies attempt to answer the —
WHO ?
WHAT ?

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WHEN ? of the subject
WHERE ? under invetigation
And
HOW ?
Descriptive research refers to a set of methods and procedures that describes the study variables. Descriptive
studies portray these variables by answering who, what, why and how questions. These types of research
studies may describe such things as consumer’s attitudes, intentions, behaviours or the number of competitors
and their strategies.
Descriptive research is also known as statistical research or diagonostic research. It describe data and
characteristics about the population or phenomenon being studied. The description is used for frequencies,
averages and other statistical calculations.
Descriptive Studies

Cross Sectional Longitudinal

(a) Field Studies (b) Surveys (c) Panel Data

(a) Field Studies are scientific inquiries done in real life situations. They attempt to find the relationship
among variables in a real life setting.
(b) Survey research aims at gathering detailed information from a sample of a large popultion.
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 (c) Panel Data is generated through a sample of respondents who are repeatedly interviewed over a
period of time. Generally, the panel data is related to the repeated measurements of the same variables.
The process of conducting descriptive research can be linked to that of passing an idea through an hourglass.
The research starts with a consideration of the larger issues of interest, and these are then narrowed into a
specific questions (hypothesis) that can only be evaluated with some degree of control. The components of
the hypothesis are operationalized into observable units and behaviors to ensure that the independent and
dependent variables can be observed and measured. Research is then conducted to observe the relationships
of interest, in the context of the specified research environment. Observation are made, the data are collected
to reflect behaviors, changes and other indicators of interest. The data are filtered and analyzed in order to
generate conclusions that may support or refute the hypothesis, and then everything is considered in the
context of the bigger picture, which usually includes reference and association to the board issues that started
the process.
Although data description is factual, accurate and systematic, the research cannot described what caused a
situation. Thus, descriptive research cannot be used to create causal relationship where one variable affects
another.
3. Causal or Hypothesis testing or Experimental research design
Causal research designs are used in hypothesis testing research or experimental research studies. This type of
research design is conducted by controlling various factors to determine which factos are causing the problem.

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It isolates causes and effects. By changing one factor, say price you can monitor its effects on a key consequence
such as sales. Although experimental research can give a high level of understanding of the variables under
study, the designs often require experiments that are complex and expensive.
Experimental Designs

Laboratory Experiments Field Experiments

• Control Group Method • Time Series and Trend Designs
• Rotation Method • Cross selectional designs
• Screening • A combination of cross-sectional and
• Randomization time series desings
• Single Blind Technique
• Double Blind Technique
Laboratory Experiments : As the name suggests, laboratory experiments are carried out in the controlled conditions
of the laboratory and field experiments are those which take place in the “real world” settings. The main difference
between the two is the degree of intervention or manipulation exercised by the investigator in the study. Laboratory
experiments will be controlled and will involve a much higher level of intervention to control and manipulate variables
whereas, field experiments will take place in natural settings.
1. Control Group Method : In this we take two similar groups. The independent variable is introduced
only in one group, that is the experimental group. The other group is called the control group.
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 X–Training
Y–Productivity
Day 1 Day 15

Control Group A Noraml Working

15 day Training
Experimental Group B
(‘X’ Variable) (‘Y’ Variable)
Measure Productivity on day 1 Measure Productivity on day 15

Rotation Method : Another method used to control systematic error present in the experiment is to rotate the
stimuli present. e.g. In a quiz, if we have more than two teams participating we can rotate the sequence of asking
questions to eliminate any bias or systematic error :
Screening : You may screen out potential variables by introducing you own screen. e.g. Piped music in the background
may be used to screen out nay interfering noises that may disturb the experimental proceeding.
Randomization : We may use random selection of respondents. Simple random sampling may also be effectively
used to divide the two groups. These two groups are then used as control and experimental group.
Single Blind Technique : To avoid the bias of the respondent, he or she is not told the real purpose of the
experiment and the experiment is carried out. E.g. If the respondent knows that the researcher is from company

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XYZ he may give answers facourable to that company so if he doesn’t know the name of the company for which the
research is bein carried out he or she is likely to give unbaised answers.
Double Blind Technique : Sometimes the knowledge of the experimenter or researcher may cause him/her to
influence the answers of the respondent. In such cases, both respondents and (hired) researchers are kept in the
dark of the purpose of the experiment or the company for whom research is being carried out, only the actual
researcher knows the purpose.
Field experiment can be devided into three categories :
1) Time series and trend designs : As the name suggests, the data is obtained from the same sample at regular
intervals.
2) Corss-section designs : In these studies, the effect of different levels of treatments are measured on several
groups at the same time e.g. when different levels of advertising is done for the same product in different
territories we may measure and compare the imapct defferent levels of advertising has on the sales of the
product in different territories.
3) A combination of cross-sectional and time series designs : In this type of field experiment, two groups
may emerge from the same sample e.g. A sample of respondents are given a product to use. Those who have
used the product earlier constitute an experimental group and those who have not, constitute the control
group. The attitude towards the product is measure by comparing the difference in willingness to try the
product.

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 SURVEY RESEARCH
The purpose of survey research is to collect primary data – data gathered and assembled specifically for the
research project at hand.
Surveys require asking people, who are called respondents, for information, using either verbal or written
questions. Questionnaries or interviews are untilized to collect data on the telephone, face-to-face, & through other
communication media. The more formal term sample survey emphasizes that the purpose of contacting respondents
is to obtain a representative sample of the target population. Thus, a survey is defined as a method of gathering
primary data based on communication with a representative sample of individuals.
The term ‘Survey’ has been derived from ‘vecir’ or ‘veoir’ and ‘sur’ which means ‘over’ and ‘see’ respectively.
‘Survey’, therefore, literally means ‘seeing over’ a particular thing from a high place. But the term has come to
acquire specific connotation. The term has a particular connotation for social science and for other sciences as well.
In natural sciences, the term ‘survey’ is generally used for ‘measurement’ and in social sciences it cannot ‘a technique
of collection of data or information through interview, questionnaire etc.’ Some scholars are of the view that the term
‘survey’ can be used only when a direct contact is made between the investigator and the informant or the subject.
But in reality it is not so. It includes the collection of data through any method say interview, questionnaire, liberary
or books etc.
“A critical inspection, often official, to provide, exact information, often a study of an area with respect to a
certain condition or its prevalence, e.g., a survey of the school.”

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Websters Collegiate Dictionary
“The survey is in brief, simply a method of analysis in scientific and orderly from for defined purpose of given
social situation or problem or population.”
Herman M.Morse
It may be defined as a comparative effort which uses the scientific method in the study and treatment of
current problems and conditions within a certain geographical and time frame. Its purpose is to generate such facts,
conclusions and recommendations that will support intelligent coordinated action.
Herman V. Morse has enumerated ten phases of survey which are being listed here under for the sake of comparison:
1. Definition of the purpose or object.
2. Definition of the problem to be studied.
3. The analysis of this problem in a schedule.
4. The delimitation of area or scope.
5. Examination of all documentary sources.
6. Field work.
7. The arrangement, tabulation and statistical analysis of the data.
8. The interpretation of results.
9. Deduction.
10. Graphic expression.
Purpose of Social Survey :
1) Collect information on a certain problem e.g. The growth in the percentage of older people in society.
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2) Surveys are used to give a detailed description of a phenomenon e.g. To describe the culture prevalent in an
organization.
3) To explain the interrelationships between variables e.g. A survey may be carried out to find out the relationship
between the age of the audience and the genre of the movie, outside a movie theater.
Thus, a survey may be general or specific, it may be utilitarian or may have some academic importance. The
fact is that it is one of the most widely used method to carry out research.

TYPES OF SURVEYS
1) General or specific surveys : when a survey is conducted for collecting general information without any
particular object, it is known as a general survey. Specific surveys are carried out to test the validity of some
theory or hypothesis.
2) Regular and adhoc surveys : Regular surveys like the population census is carried out every 10th year
whereas, Adhoc surveys are a one time survey usually to test a hypothesis or add missing information to a
research study.
3) Preliminary and Final Surveys : Preliminary surveys ar like pilot sutdies and preced the actual survey or
the final survey.
4) Census and sample surveys : In a census; survey every single unit in the universe is to be studied while a
sample survey shall only study a sample chosen for this purpose.

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ADVANTAGES OF THE SURVEY
1) It is a field study so there is direct contact with the respondents.
2) This method permits greater objectivity.
3) Survey results often bring to light actual problems that cannot be discovered in the purly theoretical manner.
4) Surveys record actual experiences of respondents.
5) Survey method has applicability in all the social science and the body of knowledge thus grows with its
universal appeal.

DISADVANTAGES OF THE SURVEY

1) It is an expensive proposition that involves field staff and their training etc.
2) It is a time-consuming process large and elaborate surveys take monumental effort on the part of the researcher.
3) The reliability of the data depends upon the honesty and efficiency of the field staff.
4) A survey must be fairly extensive to give valid results.
5) Many surveys fall trap to problems of sampling and if the sampling error is too large, the results lose their
reliability and validity.

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