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Meaning of research

• Scientific and systematic search for pertinent information on a specific topic

• A careful investigation and enquiry specially through search for new facts in any branch of knowledge

Tuesday 17 August 2010

Your research will take you on a journey to find out:

• What is already known• What is still unknown• What is worth knowing• What is knowable• What is the best way of designing a

study in order to find answers to what is: Unknown, Worth knowing and Knowable


Example:• P&G announces the launch of Asia’s no.1

shampoo- Rejoice in India.• Spoke to cross-section of 1500 consumers

across the length and breadth of India.• Found that smooth and detangled hair is one

of the top unmet needs by ordinary shampoos.

• Rejoice patented Micro- Silicone conditioning technology gives twice as smooth, detangled and easy to comb hair than ordinary shampoo


Contd..

• Given the diversity of Indian consumer and their varied hair needs, P&G has launched rejoice in the unique variants, Rich, Complete & Silky clear

• Quality products at the right price are of special concern to the discerning majority of Indian masses


Business Research

• Business research is defined as the systematic and objective process of gathering, recording and analyzing data for aid in making business decisions


Features of good research study

• Objectivity• Control• Generalizability• Free from personal biases• Systematic• Reproducible


The Hallmarks of Scientific Research

1. Purposiveness2. Rigor3. Testability4. Replicability5. Precision and Confidence6. Objectivity7. Generalizability8. Parsimony

The hallmarks or main distinguishing characteristics of scientific research may be listed as follows:


Hallmarks of Scientific Research

1. Purposiveness

It has to start with a definite aim or purpose.

The focus is on increasing employee commitment.

Increase employee commitment will translate into less absenteeism and increased performance levels.

Thus it has a purposive focus.


2. Rigor

• A good theoretical base and sound methodological design would add rigor to the purposive study.

• Rigor adds carefulness, scrupulousness and the degree of exactitude in research.

Example: A manager asks 10-12 employees how to increase

the level of commitment. If solely on the basis of their responses the manager reaches several conclusions on how employee commitment can be increased, the whole approach to the investigation would be unscientific. It would lack rigor for the following reasons:


1. Based on few employees2. Bias and incorrectness3. There might be other influences on commitment

which are ignored and are important for a researcher to know

Thus, Rigorous involves good theoretical base and thought out methodology.

• These factors enable the researcher to collect the right kind of information from an appropriate sample with the minimum degree of bias and facilitate suitable analysis of the data gathered.

• This supports the other six too.


3. Testability

The researcher might hypothesize that those employees who perceive greater opportunities for participation in decision making would have a higher level of commitment.

After random selection manager and researcher develops certain hypothesis on how manager employee commitment can be enhanced, then these can be tested by applying certain statistical tests to the data collected for the purpose.


It means that it can be used again if similar

circumstances prevails.

Example: The study concludes that participation in

decision making is one of the most important factors that influences the commitment, we will place more faith and credence in these finding and apply in similar situations. To the extent that this does happen, we will gain

4. Replicability


Precision– Precision refers to the closeness of the

findings to “reality” based on a sample.– It reflects the degree of accuracy and

exactitude of the results of the sample. Example: If a supervisor estimated the number

of production days lost during the year due to absenteeism at between 30 and 40, as against the actual of 35, the precision of his estimation is more precise than if he had indicated that the loss of production days was somewhere between 20 and 50.

5. Precision and Confidence


Confidence

– Confidence refers to the probability that our estimations are correct.

– That is, it is not merely enough to be precise, but it is also important that we can confidently claim that 95% of the time our results would be true and there is only a 5% chance of our being wrong.

– This is also known as confidence level.


6. Objectivity

The conclusions drawn through the interpretation of the results of data analysis should be objective; that is, they should be based on the facts of the findings derived from actual data, and not on our subjective or emotional values.

Example: If we had a hypothesis that stated that greater participation in decision making will increase organizational commitment and this was not supported by the results, it makes no sense if the researcher continues to argue that increased opportunities for employee participation would still help!


7. Generalizability It refers to the scope of applicability of the

research findings in one organization setting to other settings.

Example: If a researcher’s findings that participation in decision making enhances organizational commitment are found to be true in a variety of manufacturing, industrial and service organizations, and not merely in the particular organization studied by the researcher, then the generalizability of the findings to other organizational settings in enhanced. The more generalizable the research, the greater its usefulness and value.


8. Parsimony

Simplicity in explaining the phenomenon or problems that occur, and in generating solutions for the problems, is always preferred to complex research frameworks that consider an unmanageable number of factors.

For instance, if 2-3 specific variables in the work situation are identified, which when changed would raise the organizational commitment of the employees by 45%, that would be more useful and valuable to the manager than if it were recommended that he should change 10 different variables to increase organizational commitment by 48%.


Types of research

• Explanatory – Exploratory• Qualitative – Quantitative• Survey- Case research• Conceptual- Empirical


Basic research(Pure/Fundamental)

• To generate a body of knowledge by trying to comprehend how certain problems that occur in organizations can be solved

• This basic knowledge gained by the findings c a n l a t e r o n b e a p p l i e d b y s o m e organizations to solve their own problems


Basic Research Example

• Is executive success correlated with high need for achievement?

• Are members of highly cohesive work groups more satisfied than members of less cohesive work groups?

• Do consumers experience cognitive dissonance in low-involvement situations?


• Research done with the intention of applying the results of the findings to solve specific problems currently being experienced in the organisation

• To solve a current problem faced by the manager in the work setting, demanding a timely solution

Applied Research


Applied Research Examples

• Should McDonalds add Italian pasta dinners to its menu?

• Business research told McDonald’s it should not?

• Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?


Is sufficient time available before

a managerial decision

must be made?

Is the infor-mation already

on handinadequate for making

the decision?

Is the decision of considerable

strategicor tactical

importance?

Does the value of the research

informationexceed the cost of conducting

research?

ConductingBusinessResearch

Do Not Conduct Business Research

Time ConstraintsAvailability of Data

Nature of the DecisionBenefits vs. Costs

Yes YesYesYes

No No No No

Determining When to Conduct Business Research


Scope of research

Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis


Uses of research in managerial decision making

• Marketing research• Government policies and economic

system• Social relationship• Operational research


Research process in flow chart

FF F

Define research problem

Review conceptsTheories and

previous researchfindings

Formulate hypothesis

Design research

Collect data

Analyze data

Interpret & report


Examples

• Sc:1: A university professor wanted to analyze in depth the reasons for absenteeism of employees in organisations. Fortunately, a company within 20 miles of the campus employed her as a consultant to study that very issue.

• Sc:2: A research scientist surveys 1000 employees in different organisational settings to study the efficacy of several types of nasal sprays in controlling the flu virus. He subsequently publishes his findings in a highly respected medical journal.


Problem

• A problem is an interrogative sentence or statement that asks: what relation exists between two or more variables?


Criteria of problem statements

• A problem should express a relation between two or more variables

• The problem should be stated clearly and unambiguously in question form

• Problem statement should be such as to imply possibilities of empirical testing


• Why is productivity in Japan so much higher than in India ?


• What factors were responsible for the higher labour productivity of Japan’s manufacturing industries during the decade 1971 to 1980 relative to India’s manufacturing industries?


Which of the following statements is phrased as a research problem?

The purpose of the study is to determine:

a. whether the suspension policy should be changed.

b. how students can overcome test anxiety.

c. if there is a difference in the mean gain scores in reading achievement between students taught word attack skills and those taught comprehensive skills.


• Which of the following statements is NOT a research problem as stated?

• The purpose of this study is to describe and analyze the effect of new admission standards on grade point averages during the first year of study of the 2007 in-coming class of art education

• This study investigates if there is a relationship between teacher questioning style and retention of learning.

• This study investigates faculty morale.


Classifying Research

• Based on the nature of Questions:– Reporting

• To provide summation of some data or to generate some statistics

– Descriptive• Tries to discover answers to the questions, who, what, when

where and how.– Explanatory

• Attempts to explain the reasons for the “why” that the descriptive study observed. Researcher uses theories or hypotheses to account for the “why”

– Predictive• Rooted in theory as above but often calls for a higher order of

inference making


Classifying Research

• Based on the nature of the Problem:– Applied– Pure– Case Studies


Variable

• Variable is any factor that we are studying • Three types of classification• Dependent variable

– Variable of primary interest to the researcher, also called criterion variable

– The one that is not manipulated• Independent variable

– One that influences the dependent variable– One manipulated by the researcherAn independent variable is the presumed cause of

the dependent variable, the presumed effect


Variable

• Variable is any factor that we are studying • Three types of classification• Active variable

– Any variable that is manipulated– Eg. different methods of teaching, differently

rewarding the employees for a task etc. • Attribute variable

– One that cannot be manipulated by the researcher– Eg. Human characters like intelligence, sex,

socioeconomic status etc.Active-attribute distinction is general, flexible and

useful


Variable

• Variable is any factor that we are studying • Three types of classification• Continuous variable

– Variable capable of taking on an ordered set of values within a certain range

– Eg.rank order, scores obtained etc.• Categorical variable

– Variables are categorized or assigned numbers/values

– Individuals are categorised by the defining property


Variable • Variable is any factor that we are studying • Moderating variable

– Can be a second independent variable that is included because it is believed to have a significant contributory effect on the originally stated IV-DV relationship.

– eg.The switch to a commission from a salary compensation system (IV) will lead to increased sales productivity (DV) per worker, especially among younger workers (MV).

– The age difference can influence the relationship between the compensation system and sales productivity


Variable

• Variable is any factor that we are studying • Extraneous variable (Control)

– Many extraneous variables exist that might conceivably affect a given relation or problem

– Some can be treated as independent or moderating variables but most can be safely ignored.

– Eg. With new customers (CV), a switch to a commission from a salary compensation system (IV) will lead to increased sales productivity (DV) per worker, especially among younger workers (MV).


Variable

• Variable is any factor that we are studying • Intervening variable

– The factor which theoretically affects the observed phenomenon but cannot be seen, measured or manipulated.

– Its effect must be inferred from the effects of the independent and moderator variables on the observed phenomenon

– Eg. The switch to a commission compensation system (IV) will lead to increased sales productivity (DV) by increasing overall compensation (IVV)


Hypotheses

• Assumptions or some supposition to be proved or disapproved

• It is a predictive statement

• A hypothesis is a conjectural statement of the relation between two or more variables


Hypotheses

• When a proposition about an observable phenomena (concepts) is formulated for empirical testing, we call it a hypothesis

(preposition is a statement about observable phenomena (concepts))

• Explain nature of relationship/direction and magnitude

• Establish differences among group1. If advertising is increased , then sales will

also go upTuesday 17 August 2010

Hypotheses

• Assumptions or some supposition to be proved or disapproved

• It is a predictive statement

• A hypothesis is a conjectural statement of the relation between two or more variables


Deduction• Deduction is the process by which we arrive

at a reasoned conclusion by logical generalization of a known fact.

Example: we know that all high performers are highly proficient in their jobs. If John is a high performer, we then conclude that he is highly proficient in his job


Induction• Induction is a process where we observe

certain phenomena and on this basis arrive at conclusions.

In other words, in induction we logically establish a general proposition based on observed facts.


Hypothetico-Deductive Method

• Deduction– Process by which we arrive at a reasoned conclusion

by logical generalization of a known fact.• Induction

– Process where we observe certain phenomena and on its basis arrive at conclusions.

– Method of starting with a theoretical framework, formulating hypotheses, and logically deducing from the results of the study is known as hypothetico-deductive method.


The Hypothetico-Deductive Method


7 steps in Hypothetico-Deductive Method

• Observation• Preliminary information gathering• Theory formulation (theoretical framework)• Hypothesizing• Further scientific data collection• Data analysis• Deduction


Types of investigation: Causal versus co-relational

• Causal (explanatory) Hypothesis – Does smoking cause cancer?– Are smoking and cancer related?– Does Stress causes sleepless night?– Are stress and sleeplessness related?


Group differences

• Correlational Hypotheses – Does training I is more effective than

training II– Group I is more efficient than group II– The number of suits sold varies directly

with the level of business cycle


What is a strong Hypothesis?

• Adequate for its purpose• Testable• Better than its rivals


Checklists for Developing a Strong Hypothesis

• 1.Adequate for its purpose– Does the hypothesis reveal original problem

condition?– Does it clearly identify the relevant facts?– Does it clearly state the condition, size or

distribution of some variable in terms of values meaningful to the research problem (descriptive?)

– Does it suggest the form of research design?– Does it provide a framework for organising the

resulting conclusions?



• 2.Testable– Does the hypothesis use acceptable

techniques?– Does it reveal consequences of derivatives

that can be deduced for testing purposes?– Is the hypothesis simple, requiring few

conditions or assumptions?



• 3.Better than its rivals– Does the hypothesis explain more facts

than its rivals?– Does it explain a greater variety of facts

than its rivals?


The Management-Research Question Hierarchy

• 1.Management Dilemma– What symptoms cause management concern?– What environmental stimuli raise mgmt. interest?

• 2.Management Question– How can mgmt. eliminate the negative symptoms?– How can it fully capitalize on an opportunity?

• 3.Research Questions– What plausible courses of action are available to mgmt. to

correct the problem or take advantage of the opportunity and which should be considered?


The Management-Research Question Hierarchy

• 4.Investigative Questions – What does the manager need to know to choose the best

alternative from the available courses of action?• 5.Mesurement Questions

– What should be asked or observed to obtain the information the manager needs?

• 6.Management Decision– What is the recommended course of action, given the

research findings?


Formulating the Research Question

• Discover management dilemma• Define mgmt. question• Define Research Question?


Hypotheses and Research Qtn.

• H: American cities are experiencing budget difficulties

• Q: Are American cities experiencing budget difficulties?

• H: Eighty percent of company Z stockholders favor increasing the company’s cash dividend

• Q: Do stockholders of company Z favor an increased cash dividend?


The Research DesignPR

OB

LE

M S

TAT

EM

EN

T

1. Feel for data

2. Goodness of data

3. Hypothesis testing

DATAANALYSIS

Purpose of the study

ExplorationDescriptionHypothesis testing

Types of investigation

Establishing:– Causal relationships– Correlations– Group differences, ranks, etc.

Extent of researcher interference

Minimal: Studying events as they normally occurManipulation and/orcontrol and/or simulation

DETAILS OF STUDY

Study setting

ContrivedNoncontrived

Measurement and measures

OperationaldefinitionScaling

MEASUREMENT

Unit of analysis(population to be studied)IndividualsDyadsGroupsOrganizationsMachinesetc.

Sampling Design

Probability/nonprobabilitySample size (n)

Time horizon

One-shot(crosssectional)Longitudinal

Data- collection method ObservationInterviewQuestionnairePhysical measurement


Purpose of research design

• To maximize systematic variance• To control extraneous variance• To minimize error variance


SalePro’s Management Research Question Heirarchy

Declining sales is one of the most common symptoms serving as a stimulus for a research project, especially a continuing pattern that is unexplained. SalePro, a large manufacturer of Industrial goods, faces this situation. Exploration reveals that sales infact should not be declining in South and Northeast. Environmental factors there are as favourable as in the growing regions. Subsequent exploration leads management to believe that the problem is in one of the 3 areas: salesperson compensation, product formulation, or trade advertising. Further exploration has the management narrowing the focus of research to alternative ways to alter the sales compenstaion system, which leads to a survey of all sales personal in the affected regions


Mindwriter Corporation CompleteCare Program

• MindWriter Corporation has recently created a service and repair program, CompleteCare, for its portable laptop/notebook computers. This program promises to provide a rapid response to customers service problems. It is currently experiencing a shortage of trained technical operators in its telephone center. The package courier, contracted to pick up and deliver customers machines to CompleteCare, has provided irregular execution. MW has also experienced parts availability problems for some machine types. Recent phone logs at the call center show complaints about CompleteCare. Management desires information on the programs effectiveness and its impact on customer satisfaction to determine what should be done to improve the CompleteCare program for MW product repair and servicing.


Distribute the case under these 7 steps as in Hypothetico-Deductive

Method• Observation• Preliminary information gathering• Theory formulation (theoretical framework)• Hypothesizing• Further scientific data collection• Data analysis• Deduction


Exercise

• The chief information officer (CIO) of a firm observes that the newly installed Management Information System (MIS) is not being used by middle managers as much as was originally expected. The managers often approach the CIO or some other “computer expert” for help, or worse still, make decisions without facts. “There is surely a problem here” the CIO exclaims.

• Talking to some of the middle-level managers, the CIO finds that many of them have very little idea as to what MIS is all about, what kinds of information it could provide, and how to access it and utilize the information

• The CIO immediately uses the internet to explore further information on the lack of use of MIS in organisations. The search indicates that many middle-level-managers, especially the old-timers are not familiar with operating personal computers and experience “computer anxiety”.


Exercise: contd…..

• Based on all this information, the CIO develops a theory incorporating all the relevant factors contributing to the lack of access to the MIS by managers in the organisation

• From such a theory, the CIO generates various hypotheses for testing, one among them being; knowledge of the usefulness of MIS would help managers to put it to greater use.

• The CIO then develops a short questionnaire on the various factors theorized to influence the use of the MIS by managers, such as the extent of knowledge of what MIS is, what kinds of information MIS provides, how to gain access to the information, and the level of comfort felt by managers in using computers in general, and finally how often managers have used the MIS in the preceding 3 months.


Exercise: contd…

• The CIO then analyses the data obtained through the questionnaire to see what factors prevent the managers from using the system

• Based on the results, the manager deduces or concludes that managers do not use MIS owing to certain factors. These deductions help the CIO to take necessary action to rectify the situation, which might include, among other things, organizing seminars for training managers on the use of computers, and MIS and its usefulness.


Exploratory research

• An exploratory study is undertaken when not much is known about the situation at hand or no information is available on how similar issues have been solved in the past – Women in workplace in India– New product and market

Provides preliminary information for full-fledged study


Descriptive research

1. Understands the characteristics (of variables) of group in a given situation

2. Offer ideas for further probe and research 3. Help make certain simple decision

A bank manager wants to have a profile of the individuals who have loan payments outstanding for 6 months and more. It would include details of their average age, earnings, nature of occupation, fill-time/ part-time employment status, and the like. This might help him to elicit further information or decide right away on the types of individuals who should be made ineligible for loan in the future.


Case Exercise

• CHILDCO You work for CHILDCO, a corporation that is considering the acquisition of a toy manufacturer. The senior vice president for development asks you to head a task force to investigate six companies that are potential candidates. You assemble a team composed of representatives from the relevant functional areas. Pertinent data are collected from public sources because of the sensitive nature of the project. You examine all of the following: company annual reports; articles in business journals, trade magazines, and newspapers; financial analysts’ assessments; and company advertisements. The team members then develop summary profiles of the candidate firms based on the characteristics gleaned from the sources. The final report highlights the opportunities and problems that acquisition of the target firm would bring to all areas of the business.


What is the managers dilemma?

• In CHILDCO the senior vice president for development must make a proposal to the president or possibly the board of directors about whether to acquire a toy manufacturer and, if one is to be acquired, which one of the six under consideration is the best candidate.


What must the research accomplish?

• the researcher needs to know what information should be evaluated in order to value a company

• Knowing the type of information needed, the researcher in CHILDCO identifies sources of information, like trade press articles and annual reports.

• Because of the possible effect of the toy manufacturer evaluation on the stock prices of the conglomerate instigating the study and each toy company, only public sources are used.

• Other reporting studies of a less sensitive nature might have the researcher interviewing sources


Example • Propose one or more hypotheses for each of

the following variable pairs, specifying which is the IV and which is the DV. Then develop the basic hypothesis.

• The index of consumer confidence and the business cycle

• Level of worker output and closeness of worker supervision

• Student GPA and the level of effort in a class required by student’s major


Sources of Primary Data

• Direct Personal Interview (investigation)• Indirect Personal Interview (investigation)• Information from correspondents• Mailed Questionnaires• Questionnaires filled by enumerators


Sources of Secondary Data• Published sources

– Government publications– Publications of international organizations– Semi-official publications– Reports of committees and commissions– Private publications

– Journals & newspapers– Research institutions– Professional trade bodies– Annual reports of companies– Articles, market reviews and reports

• Unpublished sources• Unpublished data collected by research institutions, trade associations,

universities etc.


Sampling

• It is a process of obtaining information about an entire population by examining only part of it

• If a banker is interested in investigating the saving habits of blue collar workers in the IT industry in India


Characteristics of good sampling

• Truly representative sample• Small sampling error• Funds available for the research study• Controlled systematic bias• Reasonable level of confidence


Essentials of a Good Sample• Representativeness

• sample should possess the same characteristics as the original population from which it has been drawn

• Independence• Items should be independent of each other. In other words, selection of

any one item should not affect the selection of any other item of the population for the same sample.

• Homogeneity• There should not be any basic difference in the nature of units of the

population and that of the sample. If two samples from the same population are taken they should be similar

• Adequacy• Ie. The sample should be fairly large. The no. of units in the sample

should be adequate so as to make the results more accurate and reliable.


Advantages of sampling

• Advantages of sampling over complete enumeration are

• Reduced cost• Greater speed• Greater scope (sometimes a complete census become

impossible/impracticable)• Detailed enquiry and greater accuracy• Administrative convenience

• Disadvantages• Specialized knowledge required• Representativeness


Methods of Sampling

Probability Sampling Non-prob. Sampling

Simple orUnrestricted Restricted

Stratified Cluster Systematic

Judgment or Purposive S

Quota S

Convenience S


Types of sampling

• Non- probability sampling - Convenience sampling - Purposive sampling (quota & judgement

sampling, snowball sampling) • Probability sampling - Simple random sampling - Complex random sampling {cluster

(heterogeneity within group), systematic, stratified sampling (homogeneity within group)}


Fundamental definitions

• Universe /Population• Sampling frame• Sampling design• Statistics and parameters• Sampling error• Confidence level and significance level


• Random Samples• Selected using chance method or random methods• Simple or Unrestricted Random Sampling

– A sample is considered a random sample if its members are drawn in such a way that each observation of the population has an equal chance of being included in the sample, and every possible combination of observations in the population has the same chance of being included.

– Lottery method (a slip is made for every item in the population and someone who is neutral is asked to select the required no. of slips)

– Tippet’s method (Standard tables of random nos. like Tippets random no. tables, Fisher and Yates tables and Random Corporation tables are used and the population units are numbered from 1 to 100 and selected using these tables)

4 Sampling


• Random Sampling• Restricted Random Sampling

– Special type of random sampling– Mainly used

» when the data is not homogenous; in this case stratified sampling or cluster sampling is used.

» When a short-cut method of obtaining a random sample is required; in this case a systematic sampling is used.

– Stratified Sampling» Used when population is heterogeneous and consists of

different homogenous groups with different characteristics, hence popultn. is divided into different strata or groups and are selected in such a way that the variance of the characteristic under study is smaller within the group and larger between the groups. Units are sampled at random from each of these strata.

» Homogeneity within the groups and heterogeneity between the groups

» Eg. Two income group people of low income and high income

4 Sampling



– Cluster Sampling» Population is divided into groups called blocks or

clusters which are representative of the population as a whole.

» There is considerable variation within each group but no variation between the different groups. (heterogeneity within the groups & homogeneity between the groups)

» Eg. A market research team wants to determine the average no. of TV sets per household in a large town; they can divide the town into a no. of blocks and then choose a certain no. of blocks for interviewing each household.

4 Sampling



– Systematic Sampling» Each sample element in a population has an equal

probability of being selected. (nth element selected)» Eg. If in a firm there are 100 employees, numbered 0 to 99

and we choose a sample of 10 by picking up every 10th employee beginning with 1, then those numbered 2,3,4 and 5 have no chance of being selected altogether.

» This type of sampling is used when the complete and upto date list of sampling units is available and the units of the population to be sampled are ordered in a specific manner.

» Eg. The arrangement of names in a telephone directory in an alphabetical order can be used for selecting a sample of subscribers by the systematic sampling method.

4 Sampling


• Non-Random Sampling• Can be drawn by 3 methods• Judgement / Purposive Sampling

– Individual items are selected by the investigator by his own judgement

• Quota Sampling– Quotas are fixed for each group and units are chosen

depending on the prescribed quotas• Convenience Sampling

– Convenient slice of the population is selected according to the convenience of the investigator

4 Sampling


Example• A department store that wishes to examine whether it is

loosing or gaining customers draws a sample from its list of credit card holders by selecting every 10th name.

• A motorcycle manufacturer decided to research consumer characteristics by sending 100 questionnaires to each of its dealers. The dealers would then use their sales records to trace buyers of its brand of motorcycle and distribute the questionnaires to them.

• A citizens group, interested in generating public and financial support for a new university basket ball arena, has published a questionnaire in area newspapers. Readers return the questionnaire by mail.


Sample frame

• List of items from which the sample is to be drawn


Sampling frame (Text book; pages 176-185)

Population

Sampling frame

Sample

Frame error

Chance error

Response error

Response


Sampling error

• Sampling errors are those errors which arise on account of sampling

Sampling error = frame error + chance error + response error


Sampling design

• A definite plan for obtaining a sample from the sample frame


Statistics and parameters

• Statistic is the characteristics of sample and parameter is the characteristics of population


ExercisesDetermine which of the following statements are

reliable. Using your knowledge from sampling, list the possible problems with each statement.

• The average annual income of Indians’ is Rs. 15,000 according to a survey carried out in Mumbai.

• A large majority of people from rural areas support subsidies for failing farm operations. This is the result of a phone-in poll carried out by a regional television station.


Recently, a leading environmental group claimed that only 3% of India’s land mass was covered by forest, whereas a leading business organization claimed the figure was 6%.

• Statistics reveal that 30% of our nation's school leavers are below average in reading and writing.


Confidence level

The confidence level is the expected percentage of times that the actual value will fall within the stated precision limits.


The sampling process

• Define the population• Identify the sampling frame• Specify the sampling unit• Specify the sampling method• Determine the sample size (n)


Sample size

• Nature of universe• Number of classes proposed• Nature of study• Type of sampling• Standard of accuracy and acceptable

confidence level• Availability of finance


Exercise

• A survey researchers, studying expenditures on soft drinks, wishes to have a 95 percent confidence level (Z) and a range of error (E) of less than Rs. 2. The estimate of standard deviation is Rs. 29.00. Determine sample size.

• What would happen to the sampling

distribution of mean if we increase sample size from 5 to 25?


Sample Size Formula

2

÷

=Ezsn


Bias in Sampling

• Selection Bias• Measurement or response Bias• Non response bias


Exercise:1• The finance department in the university

produced 140 graduates in 2004. As a part of curriculum review, the department would like to select a simple random sample of 20, 2004 graduates to obtain information on how graduates perceived the value of the curriculum. Describe two different methods that might be used to select the sample. Justify


Exercise 2

• A company having chain of restaurants in Mumbai, wants to start a new one in Navi Mumbai. Before starting, it wants to conduct a survey of employees of various institutions in that area to know about their eating habits, preferences, etc. Suggest a suitable sampling scheme for the same.


Exercise 3• In an article in the Wall Street Journal titled “Kellogg to study

work of salaried staff, setting stage for possible job cutbacks”, it was stated that Kellogg's earnings remained under heavy competitive pressure and its cereal market continued to slip. It was also stated that Kellogg was seeking to regain its lost momentum through the first three strategies listed below, to which the last two are added:

• Increasing production efficiencies• Developing new products• Increasing product promotion through advertising

effectiveness• Tapping creative ideas from organisational members at

different levels• Assessing perceptions of organisational health and vitalityDiscuss the sampling design for each of the five strategies

above. Give reasons.


Exercise:4• A research ascertained the role of motivational

style (extrinsic, intrinsic, amotivational) as predictors of behaviour persistence in real life setting. At the beginning of the academic year, 1024 first term students enrolled in compulsory college course completed a scale assessing motivation towards academic activities. Results showed that students who were more intrinsically motivated persisted more than those who were extrinsically motivated or amotivated.

• Independent variables• Levels of independent variables• Dependent variables• Objective & results


• Exercise 5• Just a few years ago, Tom Oliver, the Chief Executive of Holiday Hospitality

Corp, was struggling to differentiate among the variety of facilities offered to clients under the Holiday flag ship – The Holiday Inn Select designed for business travelers, the Holiday Inn Express used by penny pinchers and The Crowne Plaza Hotels, the luxurious hotels meant for the big spenders. Olive felt that revenues could be quadrupled if only clients could differentiate among these.

• Keen on developing a viable strategy for Holiday Hospitality, which suffered from brand confusion, Tom Oliver conducted a customer survey of those who had used each type of facility and found the following. The consumers did not have a clue as to the differences among the three different types. Many complained that the buildings were old and not properly maintained and the quality ratings of service and other factors were also poor. Furthermore, when word spread that one of the contemplated strategies of Oliver was a name change to differentiate the three facilities, irate franchises balked. Their mixed message did not help consumers to understand the differences either.

• Oliver thought that he first needed to understand how the different classification would be important to the several classes of clients and he could market the heck out of them and greatly enhance the revenues. Simultaneously, he recognized that unless the franchise owners fully cooperated with him in all his plans, mere face lifting and improvement of customer service would not bring added revenues.


• Exercise 6

• List and label the variables in the following situation. Explain the relationships among the variables and diagram them. What might be the problem statement or problem definition for the situation?

• The manager of Haines Company observes that the morale of employees in her company is low. She thinks that if the working conditions, the pay scales, and the vacation benefits of the employees are bettered, morale will improve. She doubts, though, that increasing the pay scales is going to raise the morale of all employees. Her guess is that those with good side incomes will just not be “turned on” by higher pay. However, those without side incomes will be happy with increased pay and their morale will improve.


Study settings• Contrived

– Artificial environment like the lab settings– Excessive researcher interface

• Noncontrived– Natural environment where the work proceeds

naturally– Field studies/experiments– Field study; Minimal researcher interface– Field experiment; moderate researcher interface


Measurement

• Measurement is assignment of numbers to events or objects according to rules that permit important properties of the objects or events to be represented by properties of the number system


Properties of scale

• Difference• Magnitude• Equal interval• Absolute 0


Measurement scales (Types)

• Nominal scales• Ordinal scales• Interval scales• Ratio scales


Nominal scale

• A nominal scale is one that allows the researcher to assign to certain categories or groups

• Example: Gender• Nationality• Religion


Ordinal Scale

• Ordinal scale categorizes the variables in such a way, so that we can differentiate among various categories, it also rank orders the categories in meaningful way.


Example

• Rank the following five characteristics in a job in terms of how important they are for you. You should rank the most important item as 1, and so on until you have ranked each of them 1, 2, 3, 4, or 5

Job characteristics Ranking of importance

The opportunity provided by the job to:1. Interact with others

2. Use a no. of different skills3. Complete a whole task from beginning to end4. Serve others

5. Work independentlyTuesday 17 August 2010

Rank Order Scales• Rank the following in order of preference, 1

being the most preferred and 3 the least:

• Brand A _________

• Brand B _________

• Brand C _________


Paired Comparisons:

In paired comparisons the respondents are presented with two objects at a time and asked to pick the one they prefer. Ranking objects with respect to one attribute is not difficult if only a few products are compared, but as the number of items increases, the number of comparisons increases geometrically.


Interval scale

• The interval scale lets us measure the distance between any two points on the scale. In other words, the interval scale not only groups individuals according to certain categories and taps the order of these groups, it also measures the magnitude of the differences in the preferences among the individuals.


Ratio scale

• The ratio scale not only measures the magnitude of differences between points on the scale but also taps the proportions in the differences.


Example

• Indicate the no. of children you have in each of the following categories:

------Below 3 years of age------Between three and six------Over six years but under twelve years------Twelve years and above


Semantic Differential

n A series of seven-point bipolar rating scales. Bipolar adjectives, such as “good” and “bad”, anchor both ends (or poles) of the scale.


n A weight is assigned to each position on the rating scale. Traditionally, scores are 7, 6, 5, 4, 3, 2, 1, or +3, +2, +1, 0, -1, -2, -3.


SEMANTIC DIFFERENTIAL SCALES FOR MEASURING PERCEPTION

TOWARD TENNIS

Exciting ___ : ___ : ___ : ___ : ___ : ___ : ___ : Calm

Interesting ___ : ___ : ___ : ___ : ___ : ___ : ___ : Dull

Simple ___ : ___ : ___ : ___ : ___ : ___ : ___ Complex

Passive ___ : ___ : ___ : ___ : ___ : ___ : ___ Active


EXAMPLE OF CATEGORY SCALE

How important were the following in your decision to visit Agra? (check one for each item) VERY SOMEWHAT NOT TOO IMPORTANT IMPORTANT IMPORTANT

CLIMATE ___________ ___________ ___________COST OF TRAVEL ___________ ___________ ___________FAMILY ORIENTED ___________ ___________ ___________EDUCATIONAL/HISTORICAL ASPECTS _________ ___________ ___________FAMILIARITY WITH AREA ___________ ___________ ___________


Method of Summated Ratings: The Likert Scale

n An extremely popular means for measuring Perception. Respondents indicate their own perception by checking how strongly they agree or disagree with statements.

n Response alternatives: “strongly agree”, “agree”, “uncertain”, “disagree”, and “strongly disagree”.


LIKERT SCALE FOR MEASURING PERCEPTION TOWARD TENNIS

It is more fun to play a tough, competitive tennis match than to play an easy one.

___Strongly Agree ___Agree ___Not Sure ___Disagree ___Strongly Disagree



Cont.

There is really no such thing as a tennis stroke

that cannot be mastered.___Strongly Agree___Agree ___Not Sure ___Disagree ___Strongly Disagree



Cont.

Playing tennis is a great way to exercise.___Strongly Agree___Agree ___Not Sure ___Disagree ___Strongly Disagree


Graphic Rating Scales

n A graphic rating scale presents respondents with a graphic continuum.


Graphic Rating Scale Stressing Pictorial Visual Communications

3 2 1 Very Very Good Poor


Graphic Rating Scales

ò easy to construct and simple to use, can discern fine distinctions, but not very reliable, can be treated as interval data.


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