MBA SEMESTER III MB0050 – Research Methodology- 4 Assignment Set- 1

Q1. Why should a manger know about research when the job entails managingpeople, products, events, environments, and the like? Answer:T h e m a n a g e r , w h i l e m a n a g i n g p e o p l e , p r o d u c t s , e v e n t s , a n d e n v i r o n m e n t s w i l l invariably face problems, big and small, and will have to seek ways to find long lastingeffective solutions. This can be achieved only through knowledge of research even if consultants are engaged to solve problems.The primary purpose for applied research (as opposed to basic research) is discovering,interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe.Research can use the scientific method, but need not do so. The goal of the researchprocess is to produce new knowledge, which takes three main forms (although, aspreviously discussed, the boundaries between them may be fuzzy):Exploratory research, which structures and identifies new problemsConstructive research, which develops solutions to a problemEmpirical research, which tests the feasibility of a solution using empirical evidenceThe research room at the New York Public Library, an example of secondary researchin progress. Research can also fall into two distinct types:Primary researchSecondary researchIn social sciences and later in other disciplines, the following two research methods canbe applied, depending on the properties of the subject matter and on the objective of theresearch: Qualitative research:Quantitative researchResearch is often conducted using the hourglass model Structure of Research. The hourglass model starts with a broad spectrum for research, focusing in on the requiredinformation through the methodology of the project (like the neck of the hourglass), thenexpands the research in the form of discussion and results.Research and development is nowadays of great importance in business as the level of competition, production processes and methods are rapidly increasing. It is of specialimportance in the field of marketing where companies keep an eagle eye on competitors a n d c u s t o m e r s i n o r d e r t o k e e p p a c e w i t h m o d e r n t r e n d s a n d a n a l y z e t h e n e e d s , demands and desires of their customers.Unfortunately, research and development are very difficult to manage, since the definingfeature of research is that the researchers do not know in advance exactly how to accomplish the desired result. As a result, higher R&D spending does not guarantee"more creativity, higher profit or a greater market share. Q 2. a. How do you evolve research design for exploratory research? Brieflyanalyze. [.b. Briefly explain Independent dependent and extraneous variables in a researchdesign. ]Answer:a. Research design in case of exploratory research studies

Exploratory research studies are also termed as formulative research studies. The mainpurpose of such studies is that of formulating a problem for more precise investigationor of developing the working hypothesis from an operational point of view. The major e m p h a s i s i n s u c h s t u d i e s i s o n t h e d i s c o v e r y o f i d e a s a n d insights. As such theresearch design appropriate for such studies m u s t b e f l e x i b l e e n o u g h t o p r o v i d e opportunity for considering different aspects of a problem under study. Inbuilt flexibilityin research design is needed because the research problem, broadly defined initially, istransformed into one with more precise meaning in exploratory studies, which fact maynecessitate changes in the research procedure for gathering relevant data. Generally,the following three methods in the context of research design for such studies are talkedabout: 1.The survey of concerning literature happens to be the most simple and fruitfulm e t h o d o f f o r m u l a t i n g p r e c i s e l y t h e r e s e a r c h p r o b l e m o r developing hypothesis.Hypothesis stated by earlier workers may be r e v i e w e d a n d t h e i r u s e f u l n e s s b e evaluated as a basis for further research. It may also be considered whether the alreadystated hypothesis suggests new hypothesis. In this way the researcher should reviewand build upon the work already done by others, but in cases where hypothesis havenot yet been formulated, his task is to review the available material for deriving the relevant hypothesis from it. Besides, the bibliographical survey of studies, already madein one‟s area of interest may as well as made by the researcher for precisely formulatingthe problem. He should also make an attempt to apply concepts and theories developedin different research contexts to the area in which he is himself working. Sometimes theworks of creative writers also provide a fertile ground for hypothesis formulation as suchmay be looked into by the researcher. 2.Experience survey means the survey of people who have had practical experiencewith the problem to be studied. The object of such a survey is to obtain insight into therelationships between variables and new ideas relating to the research problem. For s u c h a s u r v e y , p e o p l e w h o a r e c o m p e t e n t a n d c a n c o n t r i b u t e n e w i d e a s m a y b e carefully selected as respondents to ensure a representation of different types of experience. The respondents so selected may then be interviewed by the investigator.The researcher must prepare an interview schedule for the systematic questioning of informants. But the interview must ensure flexibility in the sense that the respondentss h o u l d b e a l l o w e d t o r a i s e i s s u e s a n d q u e s t i o n s w h i c h t h e i n v e s t i g a t o r h a s n o t previously considered. Generally, the experience of collecting interview is likely to belong and may last for few hours. Hence, it is often considered desirable to send a copyof the questions to be discussed to the respondents well in advance. This will also givean opportunity to the respondents for doing some advance thinking over the variousi s s u e s i n v o l v e d s o t h a t , a t t h e time of interview, they may be able to contributeeffectively. Thus, an e x p e r i e n c e s u r v e y m a y e n a b l e t h e r e s e a r c h e r t o d e f i n e t h e problem more concisely and help in the formulation of the research hypothesis. This,s u r v e y may as well provide information about the practi cal possibilities for d o i n g different types of research.

the study of individuals who are intransition from one stage to another. P h e n o m e n a t h a t a s s u m e d i f f e r e n t v a l u e s quantitatively even in decimal points are known as „continuous variables‟. It is particularly suitable in areas where there is littleexperience to serve as a guide. the reactions of individuals from different socialstrata and the like. it cannot •Gathers information from every individual in a certain group •Gathers information from only a section of the population . the unstructured interviewing may take place. t h e y a r e a l s o k n o w n a s „discrete variable‟. Qualitative variables are not quantifiable in the strictest sense of objectivity. the intensity of thestudy and the ability of the researcher to draw together diverse information into a unifiedinterpretation are the main features which make this method an appropriate procedurefor evoking insights. weight. where as the number of children is a noncontinuous variable. may be examined. Experience indicates that for particular problems certain types of instances are more appropriate than others. ateach stage.c o n t i n u o u s v a r i a b l e s ‟ . This is also known as . Values that can be expressed only in integer valuesa r e c a l l e d „ n o n . whatever method or research design outlined above is adopted. called multi-phase sampling. The concept may assume different quantitative values. in an exploratory of formulative research study which merely leads toinsights or hypothesis. when a government has to count heads of the population. Analyses of „insight-stimulating‟ examples are a l s o a f r u i t f u l m e t h o d f o r suggesting hypothesis for research. it isthen. like height. T h e p o p u l a t i o n i s regarded as being composed of a number of second stage units and so forth. Dependent and Independent variables:A magnitude that varies is known as avariable. Attitude of the investigator.income. When changes in one variable depends upon the There are times and requirements where governments have to indulge in census surveyeven if it is time consuming and very expensive as it needs to formulate policies andwelfare programs for the population. all variables need not be continuous. or some other approach may be adopted.For example.However. what sorts of examples are to be selected and studied?There is no clear cut answer to it. the qualitative phenomena may also be quantified in terms of the presence or a b s e n c e o f t h e a t t r i b u t e c o n s i d e r e d .the only thing essential is that it must continue to remain flexible so that many differentfacets of a problem may be considered as and when they arise and come to the noticeof the researcher. That is. the reactions of marginal individuals. When the procedure is extended to more than two phases of selection. age is a continuous variable. In general. This method consists of the intensive study of selectedinstance of the phenomenon in which one is interested.One can mention few examples of „insight-stimulating‟ cases such as the reactions of strangers. For example. etc. For this purpose the existingrecords. But. Now. if nay. a sampling unit is a cluster of the sampling units of the subsequent stage. cases that provi de sharp contrasts or have strikingfeatures are considered relatively more useful while adopting this method of hypothesisformulation. Sequential sampling:Double sampling refers to the subsect ion of the final sampleform a preselected larger sample that provided information for improving the finalselection. b. Multi-stage sampling i s c a r r i e d o u t i n t w o o r m o r e s t a g e s . I n s t a t i s t i c a l t e r m . Thus.3.

and so on. Mathematical averages2. A v e r a g e s a r e classified into two groups. the individual studentsmay score marks between zero and hundred.1. the general statistical information in the number of co -operative creditsocieties in the country. serve asmajor data sources for such research studies. . volume of b u s i n e s s e t c . and the like. secondary data may be used as bench marks againstwhich the findings of research may be tested.sequential sampling. sociological studies on crimes. in a mark distribution. Q4. “Thestatistics based on the sample of „n‟ can be improved by using ancillary information froma wide base: but this is too costly to obtain from the entire population of N elements.Instead. Such studies as securities Market Behaviour. D o u b l e s a m p l i n g o r m u l t i p h a s e sampling is a compromise solution for a dilemma posed by undesirable extremes. . the findings of a local or regional survey may be compared with the national averages. Such a tendency of the datato concentrate to the central position of the distribution is called central tendency. as sub-s a m p l i n g i s d o n e f r o m a m a i n s a m p l e i n p h a s e s . the individual items may have a tendency to come to a centralposition or an average value. statistical reports of government departments. Year books.The following are the important characteristics of a statistical data: •Central tendency •Dispersion •Skew ness •KurtosisIn a data distribution. Second. List down various measures of central tendency and explain the differencebetween them? [10 marks].g. m a y b e t a k e n f r o m p u b l i s h e d r e p o r t s a n d q u o t e d a s b a c k g r o u n d information in a study on the evaluation of performance of cooperative credit societies ina selected district/state.C e n t r a l t e n d e n c y o f t h e d a t a i s m e a s u r e d b y s t a t i s t i c a l a v e r a g e s .5. [10 marks]Answer: For example. historical studies. report of public organizations of Bureau of Public Enterprises. e. their capital structure. Finally. Censes Reports etc. depend primarily onsecondary data. Positional averages Q. many students mayscore marks. Select any topic for research and explain how you will use both secondaryand primary sources to gather the required information. the performance indicators of aparticular bank may be tested against the corresponding indicators of the banking industry as a whole. secondary data may be used as the sole sourceof information for a research project. For instance. F i n a n c i a l A n a l y s i s o f companies. Trade in credit allocation in commercial b a n k s .. 50. information is obtained from a larger preliminary sample nL which includes thefinal sample n. which are near to the average marks. i. In this distribution.e. their coverage of villages.Answer:Measures of Central Tendency Analysis of data involves understanding of the characteristics of the data.

However. for several types of socialscience research required data are not available from secondary sources and they haveto be directly gathered from the primary sources. graphic presentation involves use of graphics.(a) What is the purpose of the diagram?(b) What facts are to be .radio listening and T. a. knowledge-awareness practice (KAP) studies.” They. In thiscase. Q 6.The device of graphic presentation is particularly useful when the prospective readersare non-technical people or general public. clear and accurate and also be appropriate to the data. Explain the role of Graphs and Diagrams? [5 Marks]b. The meaning of figures in tabular form may be difficult for the mind to grasp or retain. T h e y i n c l u d e : s o c i o e c o n o m i c s u r v e y s . “Properly constructed graphs andcharts relieve the mind of burdensome details by portraying facts concisely.Marketing research. readership. charts and other pictorial devicessuch as diagrams. In additions to tabular forms.farm managements studies. sociological studiesof social problems and social institutions. It is useful to even technical people for dramatizing certain points about data.V. These forms and devices reduce large masses of statistical data to aform that can be quickly understood at the glance. graphic forms are not substitutes for tables. What are the Types and General rules for graphical representation of data. In planning this work. But thecollection of primary data is costly and time consuming. opinion polls.In such cases where the available data are inappropriate. business management studies etc. it is oftendesirable to use appropriate forms of graphic presentations. s o c i a l anthropological studies of rural communities and tribal communities. p r i m a r y d a t a h a v e t o b e g a t h e r e d .Primary data are directly collected by the researcher from their original sources. are also useful indiscovering new facts and in developing hypothesis. Answer:In presenting the data of frequency distributions and statistical computations. Yet. he can collect them when he wants them and in the form he needs them. leadership studies. Graphic formsused should be simple. viewing surveys. the researcher can collect the required date precisely according to his researchneeds.Graphic presentation must be planned with utmost care and diligence. for important points can be more effectivelycaptured in pictures than in tables. attitudinal surveys. by emphasizing new and significant relationship. the following questions must be considered. logicallyand simply. but are additional tools for theresearcher to emphasize the research findings. inadequate or obsolete.

emphasized?(c) What is the educational level of the audience?(d) How much time is available for the preparation of the diagram?(e) What kind of chart will portray the data most clearly and accurately? b. They are: (1) personal delivery. Types of Graphs and General Rules The most commonly used graphic forms may be grouped into the following categories:a) Line Graphs or Chartsb) Bar Chartsc) Segmental presentations MBA Assignment Sem -III. This method may be useful for large-scale on topics of common interest. Alternatively. Management studies for collectinginformation from the customers of commercial banks in India. After a day or he cancollect the completed questionnaires from them. it combines the advantages of the personal interview and the mailsurvey. Discuss the relative advantages and disadvantages of the different methods of distributing questionnaires to the respondents of a study. SET 2 MB0050 – Research Methodology Q1. the questionnaires may be delivered in person and the completed questionnaires may be returned by mail by the respondents. The potentialrespondent completes it tears it out and m a i l s i t t o t h e a d v e r t i s e r . Personal Delivery:The researcher or his assistant may deliver the questionnaires to thepotential rests with a request to complete them at their convenience.The respondent is usually rewarded by a gift or a discount coupon. Often referred to as the self-administeredquestionnaire method. (2) attaching questionnaire to a product (3)advertising questionnaire in a newspaper of magazine. Attaching Questionnaire to a Product : A f i r m t e s t m a r k e t i n g a p r o d u c t m a y a t t a c h a questionnaire to a product and request the buyer to complete it and mail it back to the firm. News-Stand Inserts : . F o r e x a m p l e . Advertising the Questionnaires :The questionnaire with the instructions for completionm a y b e a d v e r t i s e d o n a p a g e ' o f m a g a z i n e o r i n s e c t i o n o f newspapers. Answer : There are some alternative methods of distributing questionnaires to ther espondents. t h e committee of Banks customer services used this method. and (4) news stand insets.

which are near to the average marks. Averages are classified into two groups. T h e s e s t a t i s t i c a l m e a s u r e s t r y t o u n d e r s t a n d h o w individual values in a distribution concentrate to a central . •C e r t a i n p e r s o n a l a n d e c o n o m i c d a t a m a y b e g i v e n a c c u r a t e l y i n a n u n s i g n e d m a i l questionnaire Disadvantages of Questionnaires The disadvantages of mail surveys are:1 . Mediana n d m o d e a r e p o s i t i o n a l a v e r a g e s . The following are the important characteristics of a statistical data: •Central tendency •Dispersion •Skewness •KurtosisIn a data distribution. t h e r e s u l t i n g s a m p l e w i l l n o t b e a representative one. In this distribution. . as cost of mailing is the same through outthe country. For instance. i.e. the individual items may have a tendency to come to a central positionor an average value. in a mark distribution. H e n c e . Q2. Central tendency of the datais measured by statistical averages.Positional averages Arithmetic mean. many students may score marks. 1. what is the difference between measures of central tendency andmeasures of dispersion? What is the most important measure of central tendency anddispersion? Answer: Measures of Central Tendency: Analysis of data involves understanding of thecharacteristics of the data.2 . •The respondents can complete the questionnaires at their convenience. •Mailing is useful in contacting persons such as senior business executives who aredifficult to reach in any other way.Such a tendency of the data to concentrate tothe central position of the distribution is called central tendency. questionnaire ands e l f a d d r e s s e d reply-paid envelope into a random sample of news -stand copies of a newspaper or magazine.Mathematical averages 2. In processing data. T h e s c o p e f o r m a i l s u r v e y s i s v e r y l i m i t e d i n a c o u n t r y w h e r e t h e p e r c e n t a g e o f literacy is very low. geometric mean and harmonic mean are mathematical averages. being more impersonal. as there is no personal contactbetween the respondents and the investigator. provide more anonymity than personal interviews. •Mail surveys are totally free from the interviewer's bias.This method involves inserting the covering letter. •Mail surveys. the individual students may scoremarks between zero and hundred. 50. irrespective of distance. Disadvantages of Questionnaires The advantages of mail surveys are: •They are less costly than personal interviews. •They can cover extensive geographical areas. T h e r e s p o n s e r a t e o f m a i l s u r v e y s i s l o w .

Quartile deviation3. L o r e n z c u r v e Range.It should be rigidly defined 3. When two sets of data are expressed in different units.Coefficient of Mean deviation 4. Measures of dispersion can be absolute or relative. D i s p e r s i o n i s a s t a t i s t i c a l m e a s u r e .It should be based on all the values of a distribution 4. w h i c h u n d e r s t a n d s t h e d e g r e e o f variation of items from the average.The following are the important relative measures of dispersion.It should be amenable to further statistical and algebraic treatment. 1.Coefficient of range 2. Standard deviation 5 . Measures of dispersion are useful to control the cause of variation.To enable comparison with two or more distribution with regard to their variability4. efficient operation requires control of quality variation. Properties of a Good Measure of Dispersion : A good measure of dispersion should besimple to understand.Coefficient of Standard deviation . Inindustrial production. When dispersion is large. the average tends to closely represent theindividual values and it is reliable.It should be easy to calculate 2. Mean deviation a n d S t a n d a r d d e v i a t i o n a r e m a t h e m a t i c a l measures of dispersion. Dispersion :Dispersion is the tendency of the individual values in a distribution to spreadaway from the average. I f the dispersion value is small. Measures of Dispersion 1 R a n g e 2. Many economic vari8bleSilke income. Objectives of Measuring Dispersion: Study of dispersion is needed to:1.To control variability of the data3. A relative measure of dispersion isthe ratio of absolute measure to an appropriate average. Lorenz curve is a graphical measure of dispersion. Mean deviation 4. we conclude that the distributionhas central tendency. If the values of distribution approximately come near to the average value. 1.relative measures of dispersion are used for comparison.value like average.To facilitate the use of other statistical measures. A high degree of variation would mean little consistency and low degree of variation would meanhigh consistency.It should have sampling stability 6.Measures of dispersion points out as to how far the average value is representative of theindividual items. wage etc. 5. An absolute measure of dispersion is expressed inthe same unit of the original data.Coefficient of Quartile deviation 3. Quartile deviation. It isthe value obtained by dividing the sum of the item by the number of items in a series.It should not be unduly affected by extreme values. are widely variedf r o m t h e m e a n . the average is not a typicalrepresentative value.To test the reliability of the average2. Measures of variation enable comparison of two or more series with regard to their variability. Arithmetic mean is the most commonly used statistical average..

c. It encourages co-ordination and effective organization. What are the characteristics of a good research design? Explain how the researchdesign for exploratory studies is different from the research design for descriptiveand diagnostic studies. whenthe study progresses. Characteristics of Good Research Design : 1. already made in one's area of interest may as well asmade by the researcher for precisely formulating the problem.4.5. The major emphasis in such studies is on thediscovery of ideas and insights.The survey of concerning literature happens to be the most simple and fruitfulmethod of formulating precisely the research problem or developing hypothesis. The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the workinghypothesis from an operational point of view. new aspects. The idealized design is concerned with specifying the optimum research procedure that could be followed were there no practical restrictions.broadly defined initially. As such the research design appropriate for such studiesmust be flexible enough to provide opportunity for considering different aspects of a problemunder study. new conditions and new relationships come tolight and insight into the study deepens. theresearcher has to determine how much inaccuracy may be tolerated. the researcher has no idea as to how a c c u r a t e t h e results of his study ought to be in order to be useful. is transformed into one with more precise meaning in exploratorys t u d i e s . It is a tentative plan which undergoes modifications. w h i c h f a c t m a y n e c e s s i t a t e c h a n g e s i n t h e r e s e a r c h p r o c e d u r e f o r g a t h e r i n g relevant data. In either case he should design his research if he wants to assurehimself of useful results. Where such is the case. the time consumed in trying to ascertain what the data mean after they have been collected is much greater than the time taken to design aresearch which yields data whose meaning is known as they are collected.6. It reduces wastage of time and cost.3. Answer:The need for the methodologically designed research: a. Besides. In a quite fewcases he may be in a position to know how much inaccuracy his method of researchwill produce. In many a research inquiry. the following three methods in the context of research design for such studies are talked about: 1. as circumstances demand. his task is toreview the available material for deriving the relevant hypothesis from it. He should also make an attempt to apply concepts and theories developed in different research contexts to the areain which he is . In this way the researcher should review and build upon the work alreadydone by others. Generally. In many research projects. thebibliogra phical survey of studies. Inbuilt flexibility in research design is needed because the research problem.b. It has to be geared to the availability of data and the cooperation of the informants. It has also to be kept within the manageable limits Research design in case of exploratory research studies : Exploratory research studiesare also termed as formulative research studies.2. It may also be considered whether the already stated hypothesis suggestsnew hypothesis. Hypothesisstated by earlier workers may be reviewed and their usefulness be evaluated as a basis for further research.Q3. It is a series of guide posts to keep one going in the right direction. but in cases where hypothesis have not yet been formulated.

Sometimes the works of creative writers also provide a fertileground for hypothesis formulation as such may be looked into by the researcher. Thus. whatever method or research design outlined above isadopted. at the time of interview. Analysis of insight simuating examples are als o a f r u i t f u l m e t h o d f o r suggesting hypothesis for research. Hence. Generally. Therespondents so selected may then be interviewed by the investigator. or someother approach may be adopted. Experience indicates that for particular problems certain types of instances aremore appropriate than others. may be examined. But the interviewmust ensure flexibility in the sense that the respondents should be allowed to raise issuesand questions which the investigator has notpreviously considered. This will also give an opportunity to the respondents for doingsome advance thin1<ing over the various issues involved so that. t h e r e a c t i o n s o f m a r g i n a l i n d i v i d u a l s . In general.t f i e 1 may be able to contribute effectively. survey may as well provide information about the practical possibilities for doing different types of research. in an exploratory of formulative research study which merelyleads to insights or hypothesis. theexperience of collecting interview is likely to be long and may last for few hours. 2. It is particularly suitable in areas where there is littleexperience to serve as a guide. the unstructured interviewing may take place. t h e s t u d y o f individuals who are in transition from one stage to another. it iso f t e n c o n s i d e r e d d e s i r a b l e t o s e n d a c o p y o f t h e q u e s t i o n s t o b e d i s c u s s e d t o t h e respondents well in advance. people who are competent and can contribute new ideas may be carefullyselected as respondents to ensure a representation of different types of experience. the reactions of individuals fromdifferent social strata and the like. if nay. 3. cases that provide sharp contrasts or have s t r i k i n g features are considered relatively more useful while adopting this m e t h o d o f hypothesis formulation. F o r t h i s p u r p o s e t h e e x i s t i n g records. For such a survey. This. Thus. Now. what sorts of examples are to be selected and studied? There is no clear cutanswer to it. an experience survey may enable theresearcher 'to define the problem more concisely and help in the formulation of the researchhypothesis. Attitude of the investigator. This method consists of the intensive study of selectedi n s t a n c e o f t h e p h e n o m e n o n i n w h i c h o n e i s i n t e r e s t e d . One can mention few examples of 'insight-stimulating' casess u c h a s t h e r e a c t i o n s o f s t r a n g e r s .himself working. The researcher mustprepare an interview schedule for the systematic questioning of informants. the only thing essential is that it must continue to remain flexible so that manydifferent facets of a problem .Experience surveymeans the survey of people who have had practicalexperience with the problem to be studied. The object 'of such a survey is to obtain inSightinto the relationships between variables and new ideas relating to the research problem. the intensity of the study andthe ability of the researcher to draw together diverse information into a unified interpretationa r e t h e main features which make this method an appropriate procedure for e v o k i n g insights.

questions must be well examined and be made unambiguous. The data collected must be processed and analyzed.with narration of facts and characteristics concerning individual. With due concern for the economical completion of theresearch study. sample has to be designed.In a descriptive diagnostic study the first step is to specify the objectives with sufficientprecision to ensure that the data collected are relevant. While designing data-collection procedure. the researcher must be ableto define clearly. From the point of view of the research design. the study may not provide the desired information.T h e s t u d i e s c o n c e r n i n g w h e t h e r c e r t a i n v a r i a b l e s a r e a s s o c i a t e d a r e t h e e x a m p l e o f diagnostic research studies.Designing the methods of data collection 3. As against this. This includes steps likecoding the interview replies. The research design must make enough provision for protection againstbias and must maximize reliability.Selecting the sample 4. where as diagnostic research studiesdetermine the frequency with which something occurs or its association with something else. Which ever method isselected. studies concerned with specific predictions. Most of the social research comes under thiscategory. group of situation are allexamples of descriptive research studies.may be considered as and when they arise and come to the notice of the researcher. are used. observations. free fromerrors introduced by those responsible for collecting them. If this is not done carefully. tabulating the data. the descriptive as well as diagnosticstudies share common requirements and as such we may group together these two types of research studies.adequate safeguards against bias and unreliability must be ensured. To obtain data. it is necessary to supervise closely the staff of field workers as they collect and record information.Processing and analyzing the data 6. what he wants to measure and must find adequate methods for measuringit along with a clear cut definition of population he wants to study. and performing several . observers must be trained so that theyuniformly record a given item of behaviour. one or more forms of probabilitysampling or what is often described as random sampling. Since the aim is to obtaincomplete and accurate information in the said studies. or of a group.. the procedure to be used must becarefully planned.Formulating the objective of the study 2. In descriptive as well as in diagnostic studies. Then comes the question of selecting themethods by which the data are to be obtained. Checks may be setu p to ensure that the data collecting st affs performs their duty honestly a n d w i t h o u t prejudice. Usually.Collecting the data 5. the design in such studies must be rigid and not flexible and must focusattention on the following: 1. interviewers mustbe instructed not to express their own opinion. Research design in case of descriptiveand diagnostic research studies :Descriptive research studies are those studies which are concerned with describing thecharacteristics of a particular individual.Reporting the findings.More often than not. etc.

with number of players operating in more than one segment of theindustry. it is thesecond-largest two-wheeler and fourth-largest commercial vehicle manufacturerin the world. the industry is an indirect contributor to several other sectors of theeconomy and it is treated as a leading economic sector. b u t o v e r t h e p a s t f e w years. The case data are always gathered with a view to attracting then a t u r a l h i s t o r y o f t h e s o c i a l u n i t . How is the Case Study method useful in Business Research? Give two specificexamples of how the case study method can be applied to business research. The explor atoryinvestigator is best served by the active curiosity and willingness to deviate from the initialplan. One such dominant player in the autoindustry. the players in this industry have been giving high returns to shareholdersand operating on negative working capital. Bajaj Auto: Evaluating the Working Capital Requirements: Over the past two decades. which is equivalent to the sixth largest economy i n t h e w o r l d . comes the question of reporting the findings. a n d i t s r e l a t i o n s h i p w i t h t h e s o c i a l f a c t o r s a n d f o r c e s operative and involved in this surrounding milieu. for how long can BajajAuto continue to have negative working capital? Indian Automobile Industry: An Overview : The automobile sector is a key driver of industrial growth in the global and Indianeconomy. and its relationshipwith the environment. Bajaj Auto is experiencing negative working capital for the past 5 yearsand giving high returns to its shareholders. might prove more productive.09 trillion. annual turnover of the global auto industry is around$5. However. At present. when the finding suggests new courses of enquiry. a family.Last of all. since the impact of workingcapital fluctuations depends on the nature of the industry. an in-depth study of a firm's top sales people and comparison with the worst salespeople might reveal characteristics common to stellar performers. 2 Moreover. The Indian automotive i n d u s t r y i s d i s t i n g u i s h e d a s a k e y . Answer : Meaning of Case Study: Case study is a method of exploring and analyzing the life of a social unit or entity.s 2006. The aim of case study method is to locate or identify the factors that account for the behaviour patterns of a given unit. Case Study as a Method of Business Research : In-depth analysis of selected cases is of particular value to business research when a complex set of variables may be at work ingenerating observed results and intensive study is needed to unravel the complexities. Examples of Case Study method applied to Business Research:Example 1. the Indian automobile industry has grown leaps andbounds. The automotive industry in India is intensely competitive and highlyfragmented. According to the Organization International des Constructeursd ' A utomobiles.statistical computations. Q4. at a Compound Annual Growth Rate (CAGR) of 9%. The nature of the industry a ccounts for high capital expenditures andm a y n o t g e n e r a t e h i g h r e t u r n s o n t h e c a p i t a l i n v e s t e d . This is the task of communicatingthe findings to others and the researcher must do it in an efficient manner. an institution or a community. For instance. be it a person.

passenger vehicles.The auto industry has been performing well in both domestic and internationalmarkets. rapid urbanization and changing s p e n d i n g patterns. components. This growth was fuelled by shift in the d e m a n d m i x . two-wheelers. The Indian auto industry is highly competitivew i t h l a r g e number of players in each segment of the industry m a n u f a c t u r i n g commercial vehicles. exports of the industry comprised about 5% of totale x p o r t s f r o m I n d i a . scooters and mopeds. Theindustry is fragmented and is mainly dominated by small-scale and unorganizedplayers. threewheelers and autocomponents. two -wheeler industry inIndia grew at a CAGR of more than 10%. of which 6% belong to organized sectorand the remaining belong to unorganized sector.400 players. There are nearly 6. 2 % C A G R . At that time. a total of 17 new ventures came up which included General Motors. old and substandard technologies. Toyota. The industry took a n e w dimension when Indian government de -licensed and opened u p t h e industry to Foreign Direct Investments (FDIs) in 1993 which encouraged manyglobal players to enter the Indian auto industry.Most of the players are present in more than one segment of the industry .4Over the past years (2000-2001 to 2004-2005) the domestic auto industry hasb e e n g r o w i n g a t 1 4 . In the last decade.During 1980s. Over the decades.witnessed enormous prospects and emerged as most attractive markets in theworld. economic liberalizationreforms contributed to the robust growth of the industry. Further.During 1980s. which are also referred to as OriginalEquipment Manufacturers (OEMs). t h e i r t o t a l v a l u e w a s .l i c e n s e d a n d o p e n e d u p t h e industry to Foreign Direct Investments (FDIs) in 1993 which encouraged manyglobal players to enter the Indian auto industry. 5 I n d i a h o l d s the highest position in the three -wheeler market and occupies fifth l a r g e s t c o m m e r c i a l v e h i c l e m a r k e t i n t h e world.The Indian auto industry constitutes two set of players . The industry took a n e w d i m e n s i o n w h e n I n d i a n g o v e r n m e n t d e . Further. old and substandard technologies.3 However. economic liberalisationreforms contributed to the robust growth of the industry. During 2005-2006. bodies a ndchassis) and the vehicle manufacturers (engaged in assembling all thecompone nts into an automobile). in terms of valueaddition organized players represent nearly 77% of the output in the sector. the industry has undergone rapid transformation. there were very few players in the Indian automotive sector withlow volumes of production. increasing income. Honda.Hyundai and Fiat. resulting in rapid expansion and growth of the industry.automobile componentmanufacturers (involved in manufacturing parts. India is one of the global giants in the two-wheeler industry manufacturingmotorcycles.c o m p o n e n t a n d c o r e d r i v e r o f n a t i o n a l economy. there were very few players in the Indian automotive sector with low volumes of production. Ford.

9 Similarly. overall production(passenger vehicles. Sports Utility Vehicles and trucks) were exportedbetween January and July 2009.000commercial vehicle (cars.75 million units by 2014 as against 1.2 0 0 9 . w i t h the focus driven on better fuel efficiency and faster mobility.8% by 2014i.6%. 0 9 . However.739 units in 2008-2009.. A total of 2.89 million units at the end of 2008-2009. o f w h i c h I N R 7. two-wheeler market was dominatedby scooters.Despite the economic downturn during 20072009.a r o u n d I N R 1 6 .12. with changing t i m e s . exportsof Indian auto vehicles increased . comme rcial vehicles.w h e e l e r s a n d three-wheelers) in the overseas markets increased to 1.400 were vehicle exports and INR 8. vans.30.T w o .6%. contributing higher percentage of sales.18.23 million units in 2007-2008.w h e e l e r s .There are only few established players in this segment .35. In spite of the global slowdown.e. crossingthe 1 million mark in FY2009H e r o Honda is the market leader with a market share of 42% in Indian two-wheeler segment followed by Baj aj Auto. ownership and economies of scaleare the key purchase criteria of this segment.3 million.83 million while twowheelers touched 8.85 million vehicles in 2007 2008 to 11.8According to an analyst at Ernst & Young. Until late 1990s. as per CARE Research. the second largest with 27% share. it picked up in the subsequent year andgrew by 2. 7 P r o d u c t i o n o f p a s s e n g e r v e h i c l e s i n c r e a s e d f r o m 1 . the variation in growthwith respect to the five-year CAGR was the lowest comparatively.97.wheelers for regular mobility is very high. twowheelers and three-wheelers)increased from 10.6According to the Society of Indian Automobile Manufacturers (SIAM). 11. t h e p u r c h a s e o f t w o . 4 0 0 . c o m m e r c i a l v e h i c l e s .6% and their s a l e s account for around 80% of total sales .41 million from 8. domestic two-wheeler sales will grow at a CAGR of 8. automobiles a l e s ( i n c l u d i n g p a s s e n g e r v e h i c l e s .000 were auto component exports.export of passenger vehicles increased from 2. t w o . a creditrating agency. 7 7 m i l l i o n t o 1.53 million units in 2008-09 from 1. "Though FY09 was a tough yearfor two-wheelers like it was for other automotive sectors. Though the industry witnessed aslowdown in Financial Year (FY) 2008." Theexports of this segment are moving at a CAGR of 31% in FY2005-2009.17 million vehicles in2 0 0 8 . passenger vehicle sales in the countrywill grow at a CAGR of 12% to touch 3. Cost. thus the domestic potential needs noreaffirmation. Consideringt h e d e m o g r a p h i c s a n d i n c o m e l e v e l s i n t h e c o u n t r y .401 units in 2007-2008 to 3. motorcycles occupy 80. w h i c h a c c o u n t f o r a m a j o r s h a r e o f i n d u s t r y v o l u m e h a s b e e n growing at a CAGR of 9.02 million. resulting in a growth of 18%. Ernst & Young analysts state that. We believe that focusing on rural potential will pay dividends forthe domestic market and the export volume growth should remain intact. a structural shift towards motorcycle which constitutes 80% of the marketW i t h i n t h e two-wheeler segment.

"Three -wheelers have played ani m p o r t a n t r o l e i n t h e l a s t . India is the largest three wheeler market in the world. Total exports of the three wheelers reached 141. Bajaj Auto classifies motorcycles into three segments -Entry segment (these are typically 100 cc motorcycles at a price point of INR35. Thehistory of the company dates back to 1965. It is one of the leading players (41.000. Executive segment(they comprise 100 cc to 135 cc motorcycles and priced between INR 40. when Rahul Bajaj (present chairmano f t h e G r o u p ) t o o k c h a r g e o f t h e b u s i n e s s a n d t u r n e d t h e c o m p a n y i n t o n e w heights. Bajaj Auto's Working Capital Requirement: Is Negative Working CapitalPositive? Bajaj Auto is a flagship company of the Bajaj Group which is amongst the top 10business houses in India. 3 6 m i l l i o n registering a growth of 10. the companystarted manufacturing its own two wheelers and by 1970 it reached a mark of 10.B a j a j A u t o i s a n established player in both two-wheeler and threew h e e l e r market segment. it introduced new models of two-wheelers andlaunched threewheeler vehicles.a n d t h e y p o s e t o u g h competition to each other. In 1948. South and South East Asia).11 Ernst & Young viewed this growth as.e. These vehicles are used as passenger vehicles (auto-rickshaws) as well ass m a l l c a p a c i t y c o m m e r c i a l v e h i c l e s ( p i c k . 97% being accounted by Bajaj Auto.000 vehicles.m i l e c o n n e c t i v i t y b o t h f o r p a s s e n g e r a s w e l l a s commercial purposes. 0 0 0 . Three-wheeler sales in India touched a new record of 0 . this segment will face competition from small c o m m e r c i a l vehicles in the commercial space. I t i s a s m a l l b u t f a s t growing segment.u p v e h i c l e s ) . i t has two brands in this segment . Going forward.5% CAGR over the last 6 years (2003–2009) with alarge contribution i. for which the manufacturers have to rethinkproduct positioning and marketing strategies. Based on the consumer categories andapproximate price points.registering a growth of 44.T h e p r e d e c e s s o r o f B a j a j A u t o w a s f o r m e d o n N o v e m b e r 2 9 t h 1 9 4 5 a s M / s Bachraj Trading Ltd.XCD and Discover) a n d Performance segment (these are sleek and high performing motorcycles withp r i c e p o i n t s i n e x c e s s o f I N R 5 0 . Bajaj Auto is in this segment through the Platina). 0 0 0 a n d P u l s a r i s t h e f l a g s h i p . Africa.w h e e l e r s a r e a l o w c o s t m e a n s o f transport in cities and towns.24 thousand units.000 to I N R 5 0 .74. Bajaj Auto is ranked as the world's fourth largest twoand three-wheeler manufacturer and is well known exporter (it exports to severalcountries .5% CAGR over the last 6 years (2004 2009).234 ve hicles in 2001 to3.414 vehicles in 2005. The existence of a large number of small -businessespromises a sustainable demand in t h e d o m e s t i c m a r k e t . it became public limited company. t h r e e . V e r y l i t t l e h a s b e e n done in terms of product innovation and manufacturers will have to focus on it. Middle East.Latin America.I n a n e m e r g i n g e c o n o m y l i k e I n d i a .03. with production increased from 2. In the same year. it started selling imported two. After obtaining manufacturing license from the Indian government in early 1960s.3%) in the three-wheelersegment..and three-wheelersand in the subsequent year.

50. In addition to Bajaj Auto. Nevertheless.b r a n d i n t h i s segment). H o w e v e r .I n f i s c a l y e a r 1 9 9 4 .40.wheelers.6% to INR8 8 . I n 2006-2007. I n addition. In the s a m e financial year. Bajaj Auto is takingn e c e s s a r y m e a s u r e s t o i m p r o v e i t s w o r k i n g c a p i t a l .2 0 0 9 .f r o m a n average of 5. the robust exports of the company made some positive news. Year-on-year thecompany increased its production size and attained economies of scale.Besides.Though the production volume increased.2% margin for the fourth quarter (2008 -2009). the third largest in this segmenta r e a l s o o p e r a t i n g o n n e g a t i v e working capital but are giving high returns totheir shareholders. 7 2 .35.Soon.The global turmoil and resultant low demand affected the Indian auto industry.However. Average monthly sales of motorcycles in India plunged byo v e r 1 7 % i n t h e 3 r d q u a r t e r o f 2 0 0 8 . representing a growth of 25% over the previous year (2007-2008). w i t h i t s s t r o n g b r a n d i m a g e a n d o t h e r competency features maintained dominant position in the Indian auto industry.6% of net sales and other operating income f o r 2008-2009 rising to 15.2 0 0 9 . exports of Bajaj motorcycles grew by 82% to3.939 units per month to 4.656 units and three -wheelers by 87% to 1.000 two-wheelers and three-wheelers sales were madeto Sri Lanka and also over 1. Depreciation andAmortisati on (EBITDA) margin of 13.24.114 units. During2 0 0 8 .2 0 0 9 w i t h t h a t o f 2 n d q u a r t e r . over 1. establishing an assembly plant in Nigeria. E x p e r t s viewed that the top Indiancompanies with high return on c a p i t a l h a v e o p e r a t e d o n n e g a t i v e w o r k i n g capital. these companies are enjoying the wide gapbetween the days of .00. the company started investing in high -end technologies and focused onhigh-end offering. t h e c o m p a n y s u c c e e d e d i n m a i n t a i n i n g doubledigit operating Earning Before Interest.established exporter to several countries. Due t o t h e i m p r o v e d i n v e n t o r y t u r n o v e r r a t i o a n d b e t t e r working capital management cycles.Hero Honda which is the market leader and TVS. domestic players like Bajaj Auto faced tough competition as theforeign companies adopted sophisticated technology while the latter used low-e n d t e c h n o l o g y .net sales and other operating income fell by 2. since past 5 years. current liabilities of the company exceeded currentassets resulting in a negative working capital . companies belonging to FMCG and auto industry are knownfor good returns to their shareholders (both in terms of dividends and capital gains) though they showed a negative working capital.andt h r e e .w h e e l e r s . Interestingly. 1 1 b i l l i o n i n 2 0 0 8 . H o w e v e r . i t e x p o r t e d a n a l l . B u t t h e c o m p a n y i s n o t considering this as negative remark as the other players in the industry are alsoe x p e r i e n c i n g n e g a t i v e w o r k i n g c a p i t a l .During 1980s with the entry of Japanese and Italian scooter companies into theIndian market. 5 1 9 u n i t s o f t w o a n d t h r e e . Bajaj Auto in FY20062007established a 95% owned joint venture in Indonesia which in coming years will play a key role in expanding the company's footprint in South-East Asia. Tax. particularly in high-powered motorcycles.00. the third quarter of FY2008-2009 wasparticularly tough.645 vehicles. It is India's largest exporter of two. i t p r o d u c e d 1 m i l l i o n v e h i c l e s a n d b e c a m e a w e l l . The sales and profits of Bajaj Auto tumbled .t i m e h i g h o f 7 .000 vehicles were sold to Latin America. B a j a j A u t o .1 9 9 5 .

agriculture is still considered as the backbone of the Indian economy with morethan half of the population associated with it. t h e n a t u r e o f t h e i n d u s t r y h a s a c o n s i d e r a b l e i n f l u e n c e i n t h e w o r k i n g capital management. they are enjoying the time period between number of daysthe payment to creditors and their receivables. the industry hastransformed from a backyard activity to a highly technology-driven industry.S i n c e .India's Suguna Poultry Farm Ltd. w i l l t h e c o m p a n y b e a b l e t o sustain its current rate of growth if it expands across the country? What possiblechallenges could the company face? Indian Poultry Sector: Structure and Performance India has a cultivable land of 184 million hectares. The contribution of livestock sector toagricultural GDP grew from 22. the Coimbatore based Suguna Poultry Farm Ltd.O v e r t h e years. The percentage share of agri culture in GDP was 18. In short.India with its CurrentBusiness Model? The Indian poultry industry plays a prominent role in the agriculture s e c t o r contributing 2.51% in 1999 -2000 to 24. Thisr a p i d g r o w t h w a s a i d e d b y t h e d e v e l o p m e n t o f t h e c o n t r a c t f a r m i n g m o d e l . goat and sheep.livestock is one of the major contributors. W i t h c o m p e t i t i o n g e t t i n g i n t e n s i f i e d . The poul try industry contributed 2.5% to thecountry's GDP. Out of the agriculture sub sectors. Out of the total meat production in thecountry.5% in 2006-2007. the big question is towhat extent the nature of industry will determine the working capitalrequirement ? Example 2. It has successfully establishedi t s e l f i n t h e I n d i a n p o u l t r y i n d u s t r y a n d i s currently the world's fourth largest p l a y e r i n t h e b r o i l e r s e g m e n t .cash receipts from their debtors to payment days to theircreditors.The share of poultry in the livestock sector is significant compared to other sub-s e c t o r s like buffalo.000 crore in 2004. Adopting this model. In just a few decades.: Can it Go Pan. for how long can the nature of auto industry allow these companies to continue negative working capital? However. which helps in producingv a r i o u s i t e m s . I t s o p e r a t i o n s a r e . (Suguna)stumbled upon its unique business model while trying to find a solution to theproblems it faced in the course of its operations. poultry meat comprises of 25%. c e n t r e d i n t h e southern part of India.5%to the country's GDP. the poultry industry underwent tremendous changes in . In 2008. the annual g r o w t h r a t e o f poultry was moving at 15%per annum whereas growth rates of other meats wereadvancing at only 5%per annum. which amounted to INR 29. D e s p i t e t h e b o o m i n t h e s e r v i c e s e c t o r s ( s o f t w a r e a n d I T ) . Thecontribution of livestock output to the country's GDP was 6% in 2003-2004. h o w e v e r . By 2004. Suguna announced its plans to expand acrossIndia alon g with its efforts to strengthen its backward and forward integration p r o c e s s e s .72% in 2004–2005.

Although unorganised p o u l t r y farming did not follow any organised form of production. small farmers could not fully participate inthe rapidly growing poultry market. were gambling with monsoons. onthe other hand. maintain low transportation costs. The contribution made by the organised sector accounts to7 0 % a n d t h e r e m a i n i n g 3 0 % i s c o n t r i b u t e d b y t h e u n o r g a n i s e d s e c t o r . highincid ence of disease. To fill this gap between the integrators and . due to the challenges like diseconomies of s c a l e . it played an importantr o l e i n t h e r u r a l e n v i r o n m e n t . t h e government offered several incentive schemes. Farmers were disenchanted with agriculture due toirregular (uncertain) income. faced several limitations l i k e unawareness of veterinary services. where smallscale farmers raised the fowl(poultry birds) for selfconsumption and occasionally sold the surplus atneighbourhood/local markets. However. The poultry sector has evolved through three definitephases namely traditional. t h e y found it hard to survive independently. p o o r i n f r a s t r u c t u r e . farmers were able to produce poultry for specificu s e s . Indeed. scientificallyoriented and technologicallydriven industry. i s n o t uniform and differs region wise within the country. limited/inadequate infrastructure. which did not enablefarmers/cultivat ors to achieve optimum level of productivity. has little or no promotion for brands. I n a d d i t i o n .. the farmers took activeinterest in non-crop sector (poultry and dairy). semi-commercial and commercial system.T h e f a s t g r o w i n g m a r k e t p r o m p t e d i n t e g r a t o r s t o l o o k f o r w a y s a n d m e a n s t o increase market share. most of them donot sell under any brand.The commercial system of farming adopted more specialised and sophisticated techniques focusing on bulk production and required low levels of l a b o u r . For instance. technical support and insurance schemeswere provided. b r o i l e r f o r m e a t e t c . The traditional system. Phases in the Evolution of Poultry Sector : The traditional system of farmingwas regarded as a 'backyard business'. T h e organised sector uses intensive farming.l a y e r s f o r e g g s . inadequate irrigation f a c i l i t i e s . erratic climatic conditions. The unorganised sector. which helped the growth of commercial farmers/integrators. a s i t w a s a s o u r c e o f i n c o m e a s w e l l a s employment. In just four decades (beginning from 1 9 6 0 ' s ) . . The structure of the poultryi n d u s t r y . t h e industry has grown from a subsistence activity into an organised. m a n y r e s e a r c h i n s t i t u t i o n s w e r e s e t u p a n d o t h e r facilities like training. l a c k o f p r o p e r t r a n s p o r t a t i o n c h a n n e l s . e t c . achieve economies of scale and high productivity.Broadly.itsstructure and operations. etc. incentives weregiven to players who adopted modern technologies and achieved higherp r o d u c t i v i t y . modern technology and sophisticatedbreeding systems to generate greater productivity. B y adopting modern technology. As a result. poor quality of inputs. it wasargued. T o f u r t h e r e n c o u r a g e t h e m . veterinary care. however. l i m i t e d c r e d i t sources and increased debt burd en. the poultry industry in India consists of two groups – organised a n d unorganised sectors. h o w e v e r . Farmers.

2. The researcher need not ask people about their behaviour and interactions. studies of children. thepersons sitting in them. w h e r e i n t h e c o m p a n y a g r e e s t o supply all the necessary inputs to the farmers at a predetermined price for theproduction of a specific product. It grasps the significant events and occurrences that affect social relations of theparticipants 4. Contract farming in the poultry industry f o l l o w s t h e c e n t r a l i s e d m o d e l . After the conversion process. butselects the range of things to be observed on the basis of the nature. But attention is focused on data that are pertinent to the given study. if any.Answer: Observation as a method of data collection has certain characteristics. e.It is both a physical and a mental activity : The observing eye catches many thingsthat are present. in interview. All such things which are not relevant to hisstudy are ignored and only over speeding and traffic violations are keenly observed by him. Observations is more suitable for studying subjects who areunable to articulate meaningfully. the respondent may not behave in a natural way. their hair style. the 'contract farming model' emerged.Observation is selective: A researcher does not observe anything and everything.The main virtue of observation is its directness: it makes it possible to study behaviour as itoccurs. animals.Observation is purposive and not casual : It is made for the specific purpose of notingthings relevant to the study. suppose a researcher desires to study the causes of city roadaccidents and also formulated a tentative hypothesis that accidents are caused by violationof traffic rules and over speeding. Further more verbal . When he observed the movements of vehicles on the road. medicines and feed) to the contract farmers for the production of broilerand/or eggs.small farmers. w h i c h i n v o l v e s v e r t i c a l i n t e g r a t i o n w i t h s t r i c t quality control and high level of processing. he cansimply watch what they do and say. For example. Q5. The integrator supplies inputs (Day-Old-Chicks(DOC). etc.Data collected by observation may describe the observed phenomena as they occur in their n a t u r a l settings.O b s e r v a t i o n s i m p r o v e t h e o p p o r t u n i t i e s f o r a n a l y z i n g t h e c o n t e x t u a l b a c k g r o u n d o f behaviour. 1. The model involves ana g r e e m e n t b e t w e e n c o m p a n y a n d f a r m e r . and precision instruments.Observation should be exact and be based on standardized tools of research andsuch as observation schedule. many things are before his eyes. scope and objectivesof his study. Other methods introduce elements or artificiality into the r e s e a r c h e d situation for instance. make. especially when the observed persons are notaware of their being observed.. the type. size and colour of the vehicles. which takes an average period of 6weeks (42 -45 days) poultry farms take back the end products from the farmersby paying a price (growing charges). social metric scale etc. 3. What are the differences between observation and interviewing as methods of data collection? Give two specific examples of situations where either observation or interviewing would be more appropriate. tribal. It captures the natural social context in which persons behaviour occur. There isno such artificiality in observational studies.g. birds etc.

an . Service Stations-Pose as a customer. Mechanical devi ces may be used for recording data in order to secure more accurate data and also of m a k i n g c o n t i n u o u s observations over longer periods. Interviewing on the other hand is one of the prominent methods of data collection.Interview is often superior to other data-gathering methods. f a c i a l e x p r e s s i o n s a n d pauses. “Informationis collected by observing process at work”. 2.resorts can be validated and compared with behaviour through observation. 3. It is done by using a structured schedule or anunstructured guide. Interviewing requires face to face contact or contact over telephone and calls for interviewing skills. initiated for obtaining information relevant to a specific study. and his environment. The following are a few situations:1. even confidential information may be obtained.Interviewing may be used either as a main method or as a supplementary one in studies of persons. When used with well conceived schedules. attitudes. observer notes:. It is easier to conduct disguisedo b s e r v a t i o n s t u d i e s than disguised questioning. and then interviewing isrequired. People are usually more willingto talk than to write. detail of information that canbe secured. It enables the investigator to grasp the behavioural context of the data furnished by the respondents. To determine typical sales arrangement and find out sales enthusiasm shown byvarious salesmen-Normally this is done by an investigator using a concealed taperecorder. values. Observation is less demanding of the subjects andhas less biasing effect on their conduct than questioning. For example onlyobservation can provide an insight into all the aspects of the process of negotiation betweenunion and management representatives. beliefs past experience and future intentions. Super Market-Which is the best location in the shelf? Hidden cameras are used. Once report is established. or when a sufficient number of qualified interviewers are available. it may bedefined as a two way systematic conversation between an investigator and an informant. personal interview is feasible. It involves not onlyc o n v e r s a t i o n .Interview can add flesh to statistical information. Interviewing is the only suitable method for gathering information from illiterate or l e s s e d u c a t e d respondents.4. b) How many stopped to look at thedisplay. Where the area covered for the survey is a compact. b u t a l s o l e a r n i n g f r o m t h e r e s p o n d e n t ' s g e s t u r e . When qualitativeinformation is required or probing is necessary to draw out fully. go to a service station and observe. It permits probing into the context and reasons for answers to questions. To evaluate the effectiveness of display of Dunlop Pillow Cushions-In a departmentalstore.The observation method thus involves human or mechanical observation of what people actually do or what events take place during a buying or consumption situation. The validity of what men of position and authority say can be verifiedby observing what they actually do. c) How many decide to buy.a) How many pass by. It is useful for coli a wide range of data from f a c t u a l demographic data to highly personal and intimate information r e l a t i n g t o a p e r s o n ' s opinions.Observations make it possible to capture the whole event as it occurs.

and adopt appropriate approaches to overcome such problems as therespondent's unwillingness.interview can obtain a great dealof information. He can note the conditions of theinterview situation. It far exceeds mail survey in amount and quality of data that can be secured. through observation of the respondents environment. suspicion. etc. by the respondent can bechecked by observation and probing. incorrect understanding of question. the quality of information received than other method. level. order to improve the quality of interviewing. be exercised over the interview situation. .living conditions etc.