BUSINESS RESEARCH METHODS

Unit -2: Research Design

Research design

➢ A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.

➢ According to Green and Tull “A research design is the specification of methods and procedures
for acquiring the information needed. It is the overall operational pattern or framework of the
project that stipulates what information is to be collected by which source by what procedures”.

➢ The conceptual structure within which research is conducted. Decision regarding what, where,
when, how much, by what means concerning an inquiry or a research.

➢ Research design is a blueprint of a scientific study. It includes research methodologies, tools,

and techniques to conduct the research. It helps to identify and address the problem that may
rise during the process of research and analysis.

➢ According to Selltiz et al. :

➢ "A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure".

➢ A research design is not only a work plan, it also specifies the type of data required to address
the research problem. It ensures that the data analysis and the conclusions, lead to answering
the initial questions of researcher in a simple way. Therefore, at research design provides the
structure of a research in such a way that it provides relevant outcomes economically.
Need for research design

The research design has to be prepared on account of the following reasons;

1. Research design is the blueprint of the proposed research to be conducted. It enables to plan the
various activities and provides an insight into the type of difficulties that may arise so that the
researcher may be prepared to tackle the same.

2. It gives an idea regarding the type of resources required in terms of money, manpower, time and
efforts.

3. It enables the smooth and efficient conduct of various research operations

4. The research design affects the reliability of the research findings and as such it constitutes the
foundation of the entire research work.

Features

➢ It is a plan that specifies the sources and types of information relevant to the research
problem.

➢ It is a strategy specifying which approach will be used for gathering and analyzing the data.

➢ It also includes the time and cost budget since most studies are done under these two
constraints.
Research design must contain:

1. Clear statement of the research problem.

2. Procedures and techniques to be used for gathering information,

3. the population to be studied

4. Methods to be used in processing and analyzing data.

Concepts relating to research design

1. Variables: A concept which has quantitative values.

Ex: Weight, height, income, etc

- Continuous: Quantitative values are in decimal point

Ex: Age

- Discrete variables/non-continuous: Values are expressed only in integers Ex: Number of children

2. Dependent :If one variable depends upon or consequences of the other variables.

3. Independent variables: If variable is antecedent to the dependent variable.

Ex: Height depends on Age

Height – Dependent variables.

Age – Independent variables.

4. Extraneous variables or Experimental Error : Independent variables that are not related to the
purpose of the study but may affect the dependent variable.

5. Control: Minimizing the effect of extraneous variables.

6. Confounded relationships: When the dependent variable is not free from the extraneous variables,
the relationship between dependent and independent variable is confounded.

7. Research hypothesis: When prediction or a hypothesized relationship is tested by scientific

methods it is called research hypothesis. Research hypothesis is a predictive statement that relates an
independent variable to a dependent variables.

8. Hypothesis testing research: When the purpose of research is to test a research hypothesis it is
Hypo testing research. It can be of the experimental design or of the non-experimental design.

Components of research design:

1. Title of the Problem

2. Nature of the study

3. Objectives of the study

4. Scope of the study

5. Survey of Literature

6. Formulation of Hypothesis

7. Selection of Sample

8. Data Collection

9. Data Analysis

10. Report Writing

11. Bibliography

Here are some of the elements of a good research design:

❖ Purpose statement.

❖ Data collection methods.

❖ Techniques of data analysis.

❖ Types of research methodologies.

❖ Challenges of the research.

❖ Prerequisites required for study.

❖ Duration of the research study.

 ❖ Measurement of analysis.

Features of a Good Research Design

It is considered that a good research design should reduce the biasness while should maximize the
reliability of data being collected and analysed. A good research design should provide the opportunity
as per the various aspects of research problem. It should minimize the experimental error and should
provide maximum information. Hence, it can be concluded the selection of research design relies upon
the research problem and the nature of research. Following are the major features of a good research
design :

1) Objectivity :

Objectivity refers to the ability of the research instruments to give conclusions that are free from
observer's personal biases. A good research design should be able select those instruments only that
provide objective conclusions. Usually, it is believed that maintaining objectivity is pretty easy, but it
proves to be difficult during execution of research and data analysis.

2) Reliability :

Another essential feature of a good research design is the reliability of responses. The instruments used
in research should be able to provide similar responses to a question asked from a respondent. If the
response varies, the instrument is considered unreliable. In other words, reliability of research design is
measured in terms of consistency in responses.

3) Validity :

An important characteristic of a good research design is its ability to answer the questions in the way it
was intended to. It should focus on the objective of the research and make specific arrangements or plan
for achieving that objective.

For example, when a research is conducted to measure the effects of advertisements in viewers, it should
be able to answer this, and not the sale of a particular product.

4) Generalisability :

A research design is said to be generalisable if the outcome of the research is applicable on a bigger
population from which the sample is selected. A research design can be made generalisable by properly
defining the population properly, selecting the sample carefully, analyzing the statistical data
appropriately, and by preparing it methodologically. Therefore, the more the outcomes are
generalisable, more efficient is the research design.
5) Sufficient Information :

Any research is conducted to gain insight of the hidden facts, figures and information. The research
design should be able to provide sufficient information to the researcher so that he can analyse the
research problem in a broad perspective. The research design should be able to identify the research
problem and research objective.

6) Other Features :

Along with the above, there are some other features also that make a research design good. These are
adaptability, flexibility. efficiency, etc. A good research design should be able to minimize the errors
and maximize the accuracy.

Purpose of research design / Use of research designs are as follows :

1) Reduces Cost :

Research design is needed to reduce the excessive costs in terms of time, money and effort by planning
the research work in advance.

2) Facilitate the Smooth Scaling :

In order to perform the process of scaling smoothly, an efficient research design is of utmost importance.
It makes the research process effective enough to give maximum relevant outcome in an easy way.

3) Helps in Relevant Data Collection and Analysis :

Research design helps the researchers in planning the methods of data collection and analysis as per the
objective of research. It is also responsible for the reliable research work as it is the foundation for entire
research. Lack of proper attention in preparation of research design can harm the entire research work.

4) Assists in Smooth Flow of Research Operations :

Research design is necessary to give better and effective structure to the research. Since all the decisions
are made in advance, therefore, research design facilitates the smooth flow of research operations and
reduces the possible problems of researchers.

5) Helps in Getting Reviews from Experts :

Research design helps in developing an overview about the whole research process and thus assists in
getting responses and reviews from different experts in that field.

6) Provides a Direction to Executives :

Research design directs the researcher as well as the executives involved in the research for giving
their relevant assistance.
Various factors that affect research design are as follows :

1) Research Questions :

Research questions perform an important role in selecting the method to carry-out research. There are
various forms of research designs which include their own methods for collecting data.

For example, a survey can be conducted for the respondents to ask them descriptive or interconnected
questions while a case study or a field survey can be used to identify the firm's decision-making process.

2) Time and Budget Limits :

Researchers are bound with restricted amount of time and budget to complete the research study. The
researcher can select experimental or descriptive research when the time and budget constraints we
favorable to him for the detailed study. otherwise exploratory research design can be adopted when the
time is limited.

3) Research Objective :

Every research is carried out to obtain the results which help to achieve some objectives. This research
objective influences the selection of research design. Researcher should adopt the research design which
is suitable for research objective and also provides best solution to the problem along with the valuable
result.

4) Research Problem :

Selection of the research design is greatly affected by the type of research problems. For example, the
researcher selects experimental research design to find out cause and-effect relationship of the research
problem. Similarly, if the research problem includes in depth study, then the researcher generally adopts
experimental research design method.

5) Personal Experiences :

Selection of research design also depends upon the personal experience of researchers. For example,
the researcher who has expertise in statistical analysis would be liable to select the quantitative research
designs. While, those researchers who are specialists in theoretical facets of research will be forced to
select qualitative research design.
Types of research design

Exploratory / Formulative Research Design:

➢ Exploratory research, as the name implies, intends merely to explore the research questions
and does not intend to offer final and conclusive solutions to existing problems.

Methods:

1. Survey of concerning literature.

2. Experience survey.

Analysis of insight stimulating examples.

A study into the role of social networking sites as an effective marketing communication channel. An
investigation into the ways of improvement of quality of customer services within hospitality sector in
India

Descriptive Research Design:

➢ Concerned with describing the characteristics of a particular individual, or of a group.

➢ Concerned with specific predictions, with narration of facts and characteristics concerning
individual, group or situation

Points to be focused:

a. Formulating the objective of the study

b. Designing the methods of data collection

c. Selecting the samples

 d. Collecting the data

e. Processing and analyzing the data

f. Reporting the findings.

Experimental / Hypothesis –testing Research Design:

➢ Experimental design is the framework or structure of a n experiment.

➢ Testing the hypotheses of casual relationships between variables.

Principles:

1. Principle of replication – the experiment should be repeated more than once.

2. Principle of randomization – should design and plan the experiment in such a way that the
variations caused by extraneous factors can all be combined under general heading of ‘chance’.

3. Principle of local control – measuring and eliminating the variability due to extraneous factors from
the experimental error.

Types of experimental design:

1. Informal experimental design

(i) Before and after without control design

(ii) After only with control design

(iii) Before and after with control design.

2. Formal experimental design

(i) Completely randomized design

a. Two group simple randomized design

b. Random replications design

(ii) Randomized Block design

(iii) Latin square design

(iv) Factorial design

a. Simple factorial

b. complex factorial
DATA COLLECTION

➢ Data Collection is the technique of obtaining useful information.

➢ Data is collected to establish a factual basis for making decisions

Two major source of data collection are:

– Primary data collection

– Secondary data collection

Primary and Secondary Data

➢ The primary data are those which are collected afresh and for the first time, and thus happen
to be original in character.

➢ The secondary data are those which have already been collected by someone else and which
have already been passed through the statistical process.

Factors affecting selection of resource

➢ Purpose and scope of study

➢ Availability of time

➢ Availability of resources

➢ Degree of accuracy desired

➢ Statistical tools to be used

➢ Sources of data

➢ Method of data collection

Method of Primary data collection

Observation method

Interview method

Through questionnaires

Through schedules

Other methods
 – Warranty cards

– Distributor audits

– Pantry audits

– Consumer panels

– Using mechanical devices

– Through projective techniques

– Depth interviews

– Content analysis

Collection of secondary data

✓ Publications of central, state and local government.

✓ Publications of foreign government, international bodies, subsidiary organizations.

✓ Technical and trade journals.

✓ Books , magazines & newspapers.

✓ Reports and publications of various associations connected with business, industry, banks,
stock exchanges.

✓ Reports prepared by research scholars, universities, economists in different field.

✓ Public record and statistics

✓ Historical documents and other sources of published information.

Factors considered in secondary data collection

❖ Reliability of data

❖ Suitability of data

❖ Adequacy of data.

Factors for selecting data collection method

❖ Nature, scope and object of enquiry

❖ Availability of funds

❖ Time factor
 • Precision required

Sampling design

– Universe/Population: All items in any field of inquiry

– Sample: the selected respondent

– Sampling technique: Selection process

– Sample survey: Survey conducted on samples.

– Sample Design: A definite plan for obtaining a sample from a given population.

Points to be considered in sampling design

Type of universe

(i) Finite Ex: No of workers in factory

(ii) Infinite Ex: Listener of ratio programme.

• Sampling unit

(i) Geographical unit Ex: state, district

(ii) Social unit Ex: family club, school, etc.

• Source list / Sampling frame

• Size of sample

• Parameter of interest

• Budgetary constraint

• Sampling procedure.

Criteria of selecting a sampling procedure

❖ Inappropriate sampling frame

❖ Defective measuring devices

 ❖ Non- respondents.

❖ Indeterminacy principle.

❖ Natural bias in the reporting of data.

❖ Sampling errors

Sampling plan:

A sampling plan is the blueprint or frame work needed to ensure that the raw data collected are
representatives of the defined target population.

Steps:

1. Define the target population

2. Select the data collection method

3. Identify the sampling frames needed

4. Determine the necessary sample size

5. Create an operating plan and

6. Execute the operating plan

Sampling techniques:

1. PROBABILITY SAMPLING

2. NON PROBABILITY SAMPLING.

Probability sampling:

When the elements in the population have a known chance of being chosen as subjects in the
sample, we resort to a probability sampling design.

Classification under Probability sampling design:

1. Unrestricted or simple random sampling

2. Restricted or complex probability sampling.

SIMPLE RANDOM SAMPLING:

Here , every element in the population has a known and equal chance of being selected as a
subject.

COMPLEX RANDOM SAMPLING:

Efficiency is improved in that more information can be obtained for a give sample size using some
of the complex probability sampling procedures than the simple random sampling.

Classification under Complex Random sampling

1. Systematic sampling

2. Stratified random sampling

a. Proportionate and

b. Disproportionate stratified random sampling

Systematic sampling:

It involves every nth element in the population starting with a randomly chosen element 1 and n.

Stratified random sampling:

While sampling helps to estimate population parameter , there may be identifiable subgroups of
elements within in the population

3. Cluster Sampling

4. Single stage and multistage cluster sampling

5. Area Sampling
6. Double sampling

Non – Probability sampling:

The elements in the population do not have any probabilities attached to their being chosen as samples
subjects.

Categories of Non-probability Sampling:

1. Convenience sampling

2. Purposive sampling.

Judgmental sampling

Quota sampling

NON PROBABILITY SAMPLING

Sampling procedure which does not afford any basis for estimating the probability that each item
in the population has of being included in the sample.

PROBABILITY SAMPLING

❖ Every item of the universe has an equal chance of inclusion in the sample.

❖ All choices are independent of one another.

❖ It gives each possible sample combination an equal probability of being chosen.

TYPES OF RANDOM SAMPLING

Systematic:

➢ Selecting every i th item on a list,

➢ Only first item selected randomly and remaining units at fixed interval.

Stratified:

➢ Used when groups are not homogeneous

➢ Population is divided into several sub population (strata)

➢ Simple random or systematic sampling can be used to select sample.

➢ Size of sample from different strata are kept proportional to size of strata.

Pi = proportion of population in strata i =Ni / N , N=population size, Ni = Size of strata i, n = total

sample size, number of item selected from strata i = n.Pi
Cluster Sampling:

➢ Total population is divided into a number of relatively small subdivisions which are
themselves clusters of still smaller units and then some of these clusters are randomly selected
for sample.

Area sampling:

➢ Clusters are geographic subdivision.

Multi-stage Sampling:

➢ Selecting samples randomly at all stages.

Ex: Country - State – District – Towns

Sequential Sampling:

➢ Sample is determined according to the mathematical decision rules on the basis of

information yielded as survey progresses.

➢ Size of sample is not decided in advance.

Sampling with probability proportional to size:

➢ Used when the cluster sampling units do not have the same number or appropriately the
same number of elements, use a random selection process where the probability of each
cluster being included in the sample is proportional to the size of the cluster.