semester iii assgn business research methodology

Assignment 1

RESEARCH METHODOLOGY FOR

MANAGEMENT DECISIONS

(5599)

MBA Executive

ZAHID NAZIR Roll # AB523655 Semester: Autumn 2009

ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD.

RESEARCH METHODOLOGY FOR MANAGEMENT DECISIONS

ZAHID NAZIR AB523655

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QUESTION 1

Briefly explain each step of Research

Process.

(20)



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Research is a process of investigation. An examination of a subject from

different points of view. It’s not just a trip to the library to pick up a stack of

materials, or picking the first five hits from a computer search. Research is a

hunt for the truth. It is getting to know a subject by reading up on it,

reflecting, playing with the ideas, choosing the areas that interest you and

following up on them. Research is the way you educate yourself.

The research process consists of series of steps necessary to effectively

carryout the research and the desired sequencing of these steps. It consists of

closely related activities but these activities overlap continuously rather than

strictly prescribed sequence. Each step will have an influence over the

following steps so the researcher always has to think a few steps ahead.

These steps are not distinct and separate but are interwoven. The researcher

has a difficult task of anticipating the requirements of the subsequent steps,

with each step he takes. His focus is not concentrated only on one single

activity or operation at a particular point of time. However the following

order concerning various steps provides useful procedural guideline

regarding the research process:-

1) Formulating research problem.

2) Choice of research design.

RESEARCH

RESEARCH PROCESS



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3) Determining sources of data.

4) Data collection methods.

5) Determining the sample design and sample size.

6) Organizing and conducting field survey.

7) Processing and analyzing the collected data.

8) Preparing the research report.

Fig: Research Process

1. Formulating Research Problem

The task of formulating or defining a research problem is the step of

greatest importance in the entire research process. The problem to be

investigated must be defined clearly and specifically so that the researcher

can differentiate the relevant data from the unimportant data.

Statement of problem determines the data to be collected, the

characteristics of the data which are relevant relations between the



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variables that are to be determined, the choice of technique to be used in

these explorations and the final of the report.

The researcher has to remember that a problem well defined is a problem

half-solved. In order to identify the research problem three kinds of

situations (symptoms) should be studied.

a) Overt (open) difficulties:

These difficulties are quite evident, apparent (visible) e.g. Decline in

sales or decline in performance of employees.

b) Latent Difficulties:

They are not so visible and if not checked will soon become evident e.g. Poor supervision can demotivate the staff and affect performance.

c) Unnoticed Opportunities: These show potential growth in certain areas.

After identifying two or more problems, the researcher must select one

problem after examining the priorities of the organizations and its

limitations of time and money and expected value of research.

A complete problem definition must specify each of the following:

i. Units of analysis: These are the individuals or objects whose characteristics are to be

measured. It is necessary that universe is well defined.

ii. Time and Space boundaries: This explains the time and place of reference to be considered by the

researcher e.g. Studying the buying behavior of consumers during

Eid season for the purchase of wrist watches in Gujarat.



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iii. Characteristics of interest: This identifies the focus of problem e.g. Style, color preference, buying

behavior, etc. The researcher must specify the number and type of

characteristics to be measured in his problem e.g. What kind of shoes

is preferred by manager?

iv. Environmental Conditions: This indicates the uniqueness and generality of the problem. The

problem definition must specify the environment for which the

company wants research results. It should also indicate the possible

changes in the environment, so that results of research do not become

irrelevant.

v. Hypothesis Development: A hypothesis is a proposition which the researcher wants to verify. The

researcher has to select among the possible hypothesis and test them

empirically with the help of statistical tools in order to make sure that

they are true or false. Properly defined problem will provide direction

to the researcher.

2. Choice of Research Design

A research design gives the methods and procedures for conducting

a particular study. The function of research design is to provide for the

collection of relevant information (evidence), with minimum efforts,

time and money. Broadly speaking, the research design can be grouped

into three categories:

a) Exploratory Research Design Exploratory research focuses on discovery of ideas and is generally

based on secondary data. It is preliminary investigation with a flexible



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approach. This is because a researcher may have to change his focus as

a result of new ideas and relationship among the variables.

b) Descriptive Research Design

Descriptive research is undertaken when the researcher has to get

accurate description of a situation or relation between variables. This

design tends to minimize bias and maximize the reliability of the data

collected and analyzed. These are well structured.

c) Causal Research Design

It is undertaken when a researcher wants to find out the cause-effect

relationship between two or more variables. It is based on logical

grounds.

The main criterion of a good research design is that it must enjoy or solve

the research problem.

3. Determining the sources of data After selection of research design, next step is to determine sources of

data, whether primary data or secondary data should be used.

The researcher should critically evaluate the secondary data or primary

data so as to avoid the possible sources of error. The researcher should

know about the authentic sources of relevant data, their periodicity,

agency publishing data, etc. it is only when the secondary data is not

available or not reliable that the researcher should use primary data.

4. Data Collection Methods

A researcher should keep in mind the following factors while

deciding on the data collection methods. Nature, scope and



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objectives of research, availability of funds and time and the

precision needed.

In primary data there are broadly two methods available and they are:

a) Observation Method

This method suggests that data are collected through one’s

observation. If the researcher is a keen observer, with integrity he

would be in a position to observe and record data faithfully and

accurately. While the observational method may be suitable in case

of some studies, several things of interest such as attitudes,

opinions, motivations and other intangible states of mind cannot be

observed. Another aspect of this method is that it is non-reactive as

data are collected unobtrusively without the direct participation of

the respondent. This is a major advantage as the behaviour can be

recorded without relying on reports from the respondents.

b) Survey Method:

Surveys are also used to collect primary data. Survey can be personal,

telephonic and mail. The most commonly used methods in India are

personal and mail survey. The researcher has to choose the kind of

survey to be used for data collection.

Telephonic survey is suitable when very limited and specific

information is needed. Surveys based on personal interview are

suitable when detailed information is to be collected. Sometimes

combinations of two or more methods can also be used. Normally in

survey method, structured questionnaire are prepared in advance to

get the necessary information from the respondents.

Whether it is personal or mail survey, a suitable questionnaire has to

be designed and the questionnaire is pretested for its validity.



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5. Determining the Sample Design and Sample Size

Another aspect which forms a part of research process is the

sampling plan. When a researcher has decided to carryout a field

survey, he has to decide whether it is to be a census or sample

survey. In almost all cases, a sample survey is undertaken on

account of its advantages over a census survey.

When a decision in favour of a sample survey has been taken, it is

necessary to have specific definition of the population from which

sample is to be drawn, before deciding the type of sample design.

He has to make choice between probability sampling and non-

probability sampling. The type of sample design chosen will

depend on its suitability and availability of the requisite sample

frame.

There are two approaches regarding sample size:

1) The choice of practical approach.

2) The statistical approach.

The size of sample will depend on the degree of precision required and

also on the cost consideration. The proper selection of sample design

and sample size will reduce the possibility errors.

6. Organizing and conducting field survey

Having prepared the questionnaire and selected the sample design and

sample size, the next step is to organize and conduct field survey.

Interviewing and the supervision of fieldwork are the two steps of

conducting survey.

The task of interviewing seems to be simple but in reality it is one of

the most difficult tasks in research because respondent are generally



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hesitant in giving information. Supervision of fieldwork is also

important to ensure proper and in time completion of survey.

7. Processing and analyzing the collected data

After the completion of field survey and receiving questionnaire, the

next task is to aggregate the data in a meaningful manner. The

number of tables is prepared to bring out the main characteristics

of the data. In order to derive meaningful results from the statistical

tables, the researcher may use the following steps.

To calculate relevant measures of central tendency, highlighting the major aspect of data.

To cross tabulate the data to ascertain some useful relationships.

. To calculate the correlation coefficient and undertake a regression analysis between the variables.

To undertake the multi variable analysis.

8. Preparing the Research Report

Once the data have been tabulated, interpreted has to prepare a report

including the findings of his research study and his recommendations.

The report should have objectivity, clarity in presentation of ideas, use

of charts and diagrams, etc. the layout of report should be as follows:

I. The Preliminary Pages:

This includes title and dates, acknowledgement and foreword.



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II. The Main Text:

This should have introduction, summary of findings, main report

body and conclusion.

III. The End Matter

This includes appendixes, bibliography and index.

References:

www.crlsresearchguide.org

en.wikipedia.org/wiki/Research

www.suffolk.edu/files/SawLib_Tutorials

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http://www.crlsresearchguide.org/



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QUESTION 2

What are the different types of Research,

Explain in detail?

(20)



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On the basis of the fundamental objectives of the research, we can classify

research into two types:

1. Exploratory Research

2. Conclusive Research

1. Exploratory Research Exploratory research is conducted to clarify ambiguous problems.

Management may have discovered general problems, but research is needed

to gain better understanding of the dimensions of the problems. Exploratory

studies provide information to use in analyzing a situation, but uncovering

conclusive evidence to determine a particular course of action is not the

purpose of exploratory research. Usually, exploratory research is conducted

with the expectation that subsequent research will be required to provide

conclusive evidence, It is a serious mistake to rush into detailed surveys

before less expensive and more readily available sources of information have

been exhausted.

In an organization considering a program to help employees with childcare

needs, for example, exploratory research with a small number of employees

who have children might determine that many of them have spouses who

also work and that these employees have positive reactions to the possibility

of an on-site child-care program. In such a case exploratory research helps to

crystallize a problem and identify information needs for future research.

TYPES OF RESEARCH



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EXPLORATORY RESEARCH METHODS

The quickest and the cheapest way to formulate a hypothesis in exploratory

research is by using any of the four methods:

Literature search

Experience survey

Focus group

Analysis of selected cases

Literature Search

This refers to "referring to a literature to develop a new hypothesis". The

literature referred are - trade journals, professional journals, market research

finding publications, statistical publications etc Example: Suppose a problem

is "Why are sales down?" This can quickly be analyzed with the help of

published data which should indicate "whether the problem is an "industry

problem" or a "firm problem". Three possibilities exist to formulate the

hypothesis.

1. The company's market share has declined but industry's figures are

normal.

2. The industry is declining and hence the company's market share is

also declining.

3. The industry's share is going up but the company's share is

declining.

If we accept the situation that our company's sales are down despite the

market showing an upward trend, then we need to analyse the marketing

mix variables.

Example 1: A TV manufacturing company feels that its market share is

declining whereas the overall television industry is doing very well.

Example 2: Due to a trade embargo imposed by a country, textiles exports

are down and hence sales of a company making garment for exports is on the

decline. The above information may be used to pinpoint the reason for

declining sales.



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Experience Survey

In experience surveys, it is desirable to talk to persons who are well informed

in the area being investigated. These people may be company executives or

persons outside the organization. Here, no questionnaire is required. The

approach adopted in an experience survey should be highly unstructured, so

that the respondent can give divergent views. Since the idea of using

experience survey is to undertake problem formulation, and not conclusion,

probability sample need not be used. Those who cannot speak freely should

be excluded from the sample.

Example 1:

1) A group of housewives may be approached for their choice for a

"ready to cook product".

2) A publisher might want to find out the reason for poor circulation of

newspaper introduced recently. He might meet (a) Newspaper sellers

(b) Public reading room (c) General public (d) Business community;

etc. These are experienced persons whose knowledge researcher can

use.

Focus Group

Another widely used technique in exploratory research is the focus group. In

a focus group, a small number of individuals are brought together to study

and talk about some topic of interest. The discussion is co-ordinated by a

moderator. The group usually is of 8-12 persons. While selecting these

persons, care has to be taken to see that they should have a common

background and have similar experiences in buying. This is required because

there should not be a conflict among the group members on the common

issues that are being discussed. During the discussion, future buying

attitudes, present buying opinion etc., are gathered.

Most of the companies conducting the focus groups, first screen the

candidates to determine who will compose the particular group. Firms also

take care to avoid groups, in which some of the participants have their

friends and relatives, because this leads to a biased discussion. Normally, a



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number of such groups are constituted and the final conclusion of various

groups are taken for formulating the hypothesis. Therefore, a key factor in

focus group is to have similar groups. Normally there are 4-5 groups. Some of

them may even have 6-8 groups. The guiding criteria is to see whether the

latter groups are generating additional ideas or repeating the same with

respect to the subject under study. When this shows a diminishing return

from the group, the discussions stopped. The typical focus group lasts for 1-

30 hours to 2 hours. The moderator under the focus group has a key role. His

job is to guide the group to proceed in the right direction.

Analysis of selected cases

Analysing a selected case sometimes gives an insight into the problem which

is being researched. Case histories of companies which have undergone a

similar situation may be available. These case studies are well suited to carry

out exploratory research. However, the result of investigation of case

histories arc always considered suggestive, rather than conclusive. In case of

preference to "ready to eat food", many case histories may be available in the

form of previous studies made by competitors. We must carefully examine

the already published case studies with regard to other variables such as

price, advertisement, changes in the taste, etc.

2. Conclusive Research Exploratory research gives rise to several hypothesis which will have to be

tested for drawing definite conclusion. These conclusions when tested for

validity lay the structure for decision making. Conclusive research is used for

this purposed of testing the hypotheses generated by exploratory research.

Conclusive research can be classified as either descriptive or experimental.

Descriptive Research Descriptive research is used to obtain information concerning the current

status of the phenomena to describe "what exists" with respect to variables



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or conditions in a situation. The methods involved range from the survey

which describes the status quo, the correlation study which investigates the

relationship between variables, to developmental studies which seek to

determine changes over time.

DESCRIPTIVE RESEARCH METHODS

Case Studies

Detailed analysis of a single (or limited number) of people or events. Case

studies are usually interesting because of the unusualness of the case .The

major problem with case studies is the problem of objectivity. The person

who is presenting the case usually has some theoretical orientation. It is

acceptable for a theoretical orientation to affect one’s interpretation of

events. In a case study the theoretical orientation can also lead to the

selection of the facts to include in the case. It is not surprising that case

studies often seem to provide very compelling evidence for a theory.

Case studies can therefore assist psychology by illustrating how a theory

could be applied to a person or events and by assisting with the development

of hypotheses for more systematic testing.

Observational Research

Accounts of the natural behavior of individuals or groups in some setting.

Unless the observation is unobtrusive, there may be some subject reactivity

to being observed. This often decreases with time, a process called

habituation. Observers cannot usually observe all behaviors all of the time.

They may use a behavioral checklist and may also use time sampling or event

sampling procedures. It is important to assess observer bias by the use of

interobserver reliability. Observational research may also pose ethical

problems. These can arise when the behaviors being observed are not public

behaviors and when the observer joins a group in order to observe the

members’ behavior – participant observation.



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Survey Research

Structured questions to assess peoples beliefs, attitudes, and self-reports of

behavior. If the researcher wishes to generalize the responses to a

population, it is important to have a representative sample. Surveys that rely

on self-selection (respond if you are interested) produce non-generalizable

results. Surveys also provide information for co relational research. One can

correlate responses to some questions (often demographic questions) with

responses to other questions (often attitudes or reports of behavior). Survey

question must be clear and unambiguous. Even if the questions are

unambiguous and non-leading, people may display a social desirability bias

and give positive or socially acceptable and desirable answers. Survey

methods include: (1) the interview or face-to-face method which is generally

viewed as the best method for obtaining a high rate of responses but is also

very costly; (2) phone surveys, which are less expensive but have a higher

non-response rate (which has probably increased with caller ID); and (3)

written or mail surveys, which are least expensive but have a very high non-

response rate. Follow-up messages can help increase the response rate.

Archival Research

Analysis of pre-existing data or records. Archival research often involves

content analysis, a qualitative analysis of material. For example, one would

use content analysis to determine whether there had been an increase in the

frequency with which women and minorities were mentioned in US history

books between 1920 and 2000. Some archival research is quasi-experimental.

Experimental Research Science revolves around experiments, and learning the best way of

conducting an experiment is crucial to obtaining useful and valid results.

When scientists speak of experiments, in the strictest sense of the word, they

mean a true experiment, where the scientist controls all of the factors and



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conditions. Real world observations, and case studies, should be referred to

as observational research, rather than experiments. For example, observing

animals in the wild is not a true experiment, because it does not isolate and

manipulate an independent variable.

With an experiment, the researcher is trying to learn something new about

the world, an explanation of ‘why’ something happens. The experiment must

maintain internal and external validity, or the results will be useless.

References:

Zikmund G. William, “Business Research Methods,” Cengage

Learning India Private Limited, Eight Indian Reprints,

2009.

Kothari C R, “Research Methodology Methods and

Techniques,” New Age International (P) Ltd Publishers.

Prof. Murthy S N, “Business Research Methods”.

Dr.Bhojanna U, “Business Research Methodology”.

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QUESTION 3

a). Explain the concept of hypotheses,

propositions and assumptions.

b). What are the elements of research

problem? Keeping in view all these

elements, Formulate any management

related research problem and develop a

hypotheses for that problem.

(20)



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A hypothesis is a proposition - a tentative assumption which a researcher

wants to test for its logical or empirical consequences. Hypotheses are more

useful when stated in precise and clearly defined terms. It may be mentioned

that though a hypothesis is useful it is not always necessary, especially in

case of exploratory researches. However, in a problem - oriented research, it

is necessary to formulate a hypothesis or hypotheses. In such researches,

hypotheses are generally concerned with the causes of a certain

phenomenon or a relationship between two or more variables under

investigation.

Hypotheses, though important, are not essential for a study. A perfectly valid

study can be conducted without constructing a single hypothesis. There are

however many definitions of a hypothesis but for the purpose of this

assignment the following definitions can be given;

… a conjectural statement of the relationship between two or

more variables (Kerlin 1986).

… a tentative assumption or preliminary statement about the

relationship between two or more things that needs to be

examined(Welman et al 2005)

… tentative statement about something, the validity of which is

usually unknown (Black and Champion 1976).

HYPOTHESIS



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… a proposition that is stated in a testable form and that predicts

a particular relationship between two (or more) variables. In

other words, if we think that a relationship exists, we first state it

as a hypothesis and then test the hypothesis in the field (Bailey

1978).

Thus from the given definitions it can be deduced that a hypothesis is a

premade statement of the results of an investigation indicating the

relationship between two or more variables that awaits verification.

Functions of a Hypothesis

Hypotheses are important for bringing clarity, specifity and focus to a

research study. A hypothesis does so by exposing; the specific aspects of a

research problem, important data to a study, focus and finally may enable

the researcher to add to the formulation of theory. Hypotheses may only add

to the formulation of theory after they have been proven to be true.

Characteristics of a Hypothesis

There are four major aspects of a hypothesis. Firstly a hypothesis should be

simple, specific and conceptually clear. Secondly, it should be capable of

verification. Thirdly, it should be related to the existing body of knowledge

and lastly it should be operationalisable thus expressible in terms that can be

measured.

Types of Hypothesis

Broadly, there are two categories of hypothesis namely, the research

hypothesis and the alternate hypothesis. The research hypothesis is the basis

of an investigation and is usually indicated by H1.The alternate hypothesis



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there to explicitly specify the relationship that will be considered true if in

case the research hypothesis proves to be wrong.

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b)

Introduction

The research problem is often argued as the heart of the research process,

without which no research process can take place. In formulating the

problem the variables must be eminent and easily identifiable while a

hypothesis should accompany each research problem. Once a research

problem is clearly defined, it should be translated into a research hypothesis

that states; a relationship between two or more variables in one (or more)

population(s).Thus the assignment will reflect on the linkage of the research

problem, research hypothesis and the existing variables.

Firstly, the research problem will be explored, its importance, sources of the

research problem, considerations as well as steps to be followed when

formulating a research problem. Secondly, identification of variables will be

discussed using the three common types of variables and the four prominent

RESEARCH PROBLEM



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scales of measurement. Lastly, the definition, functions, characteristics,

types and errors in testing hypothesis will be discussed.

RESEARCH PROBLEM

Research problem refers to some difficulties which a researcher experiences

in the context of both a theoretical or practical situation and wants to obtain

a solution for the same, usually it is said that a research problem does exist if

the following condition are met with:

There must be an individual (or a group or an organization), let us call

it I, to whom the problem can be attributed. The individual or the

organization, as the case may be, occupies an environment, say ‘N’,

which is defined by the values of uncontrolled variables, Y1.

There must be at least two courses of actions, say C1 and C2, to be

pursued. A course of action is defined by one or more values of the

controlled variables. For example, the number of items purchased at a

specified time is said to be one of action.

There must be at least two possible outcomes, say O1 and O2, of the

course of action, of which one should be preferable to other. In other

words, this means there must be at least one outcome that the

researcher wants, i.e., an objective.

The courses of action available must provide some chance; otherwise

the choice would not matter. Thus, if p(Oj\I,C1,N)≠P(O1\I,C2,N). In

simple words, we can say that the choices must have unequal

efficiencies for the desired outcomes.



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Over and above these conditions, the individual or organization can said to

have the problem only if ‘I’ does not know what course of action is best, i.e.,

‘I’, must be in doubt about the solution. Thus, an individual or a group of

persons can be said to have a problem which can be technically described as

research problem, if they (individual or group), having one or more

described out comes, are confronted with two or more courses of action that

that have some but not equal efficiency for the described objective(s) and are

in doubt about which course of action is best.

COMPONENTS OF RESEARCH PROBLEM

Identification of the components is very much essential for formulation of

problem, once we identify the components than formulation of the problem

will become much easier. The following are the components of research

problem which helps in formulating and solving the research problem.

i. There must be an individual or a group which has some difficulty or

the problem.

ii. There must be some objectives to be attained at. If one wants nothing

one cannot have a problem.

iii. There must be alternative means (or the course of action) for obtaining

the objectives one wishes to attain. This means there must be at least

two means available to a researcher for if he has no choice of means,

he cannot have problem.

iv. There must remain some doubt in the mind of researcher with regard

to the selection of alternatives. This means the research must answer



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the question concerning the relative efficiency of the possible

alternatives.

v. There must be some environments to which the difficulty pertains.

Thus a research problem is one which requires a researcher to find out

the best solution for the given problem, i.e., to find out by which course

of action the objective can be attained optimally in the context of a given

environment. There are several factors which may result in making the

problem complicated. For instance, the environment may change

affecting the efficiencies of the course of action or values of the

outcomes; the number of alternative courses of action may be very large;

persons not involved in making the decision may be affected by it and

react to it favorably or unfavorably, and similar other factors. All such

elements (or at least the important ones) may be thought of in context of

a research problem.

FORMULATION OF THE PROBLEM

Formulation of the problem means defining the problem precisely. In other

words, a problem well defined is half solved. In operations research, we say

that formulation of problem is often more essential than its solution because

when the problem is formulated, an appropriate techniques can be applied

to generate alternative solutions. Choosing the best alternative is the best

decision under the given circumstances.

Steps involved in defining research problem are:

i. Statement of the problem in a general way.



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ii. Understanding the nature of the problem.

iii. Surveying the available literature.

iv. Developing the idea through discussions.

v. Rephrasing the research problem into a working proposition.

Once the problem has been selected, the same has to be

understood thoroughly and then the same has to be reframed into

meaningful terms from an analytical point of view. The best way is to

discuss the problem with friends or colleagues or with those who have the

knowledge of it. Both parties, the researcher and/or the concerned manager

and customer, must agree on the specific nature of the research problem.

Ideally, both the parties must ascertain the priorities of the issues involved,

scope or potential benefits, cost as well as the time required to conduct the

study. Researcher must specify the exact issues being examined and the

underlying logic in setting the priorities. Moreover, the research must

define the boundaries of the population covered in the proposal.

In essence, a proper formulation of the research problem starting

with objectives would enable a researcher to go ahead in the proper

direction. Finally, it may be noted that problem formulation would have

focus on what sort of decision issues are tackled. In other words, it gives a

clear idea of research itself.

SIMPLE STEPS TO SOLVE THE RESEARCH PROBLEM

Whenever the problem arises than we have to search for the solution,

searching of solution can be done in different ways but if at all we consider

better way of solving the problems than we can easily solve the research



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problem, the following steps will make easier for the researcher to solve the

problem much more quickly,

i. Identify what is KNOWN.

ii. Identify what is UNKNOWN.

iii. Do the KNOWNS tell us anything about the UNKNOWNS? (Make a

list).

iv. COMBINE the KNOWNS with UNKOWNS to see if there is a “new”

and important research question that is worth a doctorate.

v. Identify its parts and wholes.

vi. Trace its history and changes.

vii. Identify its categories and characteristics.

viii. Determine its value [to you as well].

ix. Review and rearrange your answers.

ORIGINS OF THE PROBLEM

Origins of the problems are nothing but how the problem creates while research,

this can also be the sources, how the problem is created. The following are the

various origins of the problem which is created while research,

a) PRIMARY DATA

Generally the researcher always depends on the primary data which he

has collected or else he will be depending on the others collected data.

So if at all there is an error in the primary data, or else the data

misrepresents the facts their arises the problem, then the further

process of the research may not serve the objective. If at all the data



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taken from the source is inappropriate then their creates a problem

and this may consider as the origin of the problem.

b) FORMULATIG OF THE PROBLEM

Even there is a good primary data there is a chance of problem where

the problem may arises while formulating the problem itself.

Formulation of the problem means defining the problem precisely. In

other words, a problem well defined is half solved. In operations

research, we say that formulation of problem is often more essential

than its solution because when the problem is formulated, an

appropriate techniques can be applied to generate alternative

solutions. If at all the formulation itself has some o wrong information

and if wrong procedures are implicated to solve the problem then

arises the new problem, so this will be origin of new problem which

may arise in solving the problem. So necessary actions is required to

take while formulating the problem so that their won’t be chance of

origin of new problem.

c) SAMPLES SELECTED FOR RESEARCH

Whenever the researcher wants to conduct the research he has to

select certain samples for his study, it might be the area, sex, age,

income level, etc, if at all researcher fails to identify which sample has

to be taken for his research then the purpose never be served.

Identifying and selecting of the sample according to the objective is

very much essential if at all it is not considered then problem will



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definitely arises, that will be the origin for the problem so it is very

much essential to identify and select the sample so as origin of

problem can be avoided.

d) RESEARCH DESIGN

Research Design is a framework or blueprint for conducting the

research project. It specifies the details of the procedures necessary for

obtaining the information needed to structure or solve research

problem. Sometimes it happens that while solving the problem we will

get some complications where we fail to identify the problems in

research design this is the main problem where identification of the

problem in research design will always depend on how you define the

problem. If the problem is defined wrongly then the solution will be

wrong only. This is how problem is originated in research design.

Problems are meant to happen but solving that is important. We may

take necessary actions to avoid the origin of problem which may arise

during the research. Solving should be like that where it should not

create a new problem so that solving becomes much more

complicated.

So solving in smarter way is very much essential to avoid the further

complications in solving the problem



31

References:

Zikmund G. William, “Business Research Methods,” Cengage

Learning India Private Limited, Eight Indian Reprints,

2009.

Kothari C R, “Research Methodology Methods and

Techniques,” New Age International (P) Ltd Publishers.

Prof. Murthy S N, “Business Research Methods”.

Dr.Bhojanna U, “Business Research Methodology”.

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32

QUESTION 4

a). Differentiate between Qualitative and

Quantitative Analysis.

b). What are the methods of collecting

primary data?

(20)



33

a)

Virtually all market research can be broken out into two categories:

quantitative and qualitative. While studies often combine the two,

understanding how to use them will ensure you get the most out of your

market research spend.

As the term suggests, Quantitative Research relies primarily on the

collection and analysis of numerical information. Qualitative Research, in

contrast, focuses on smaller samplings with a richer depth of data drawn

from interviews, discussion groups, or careful studies of relevant source

materials, such as books, articles, videos and existing research.

Quantitative Research

Overview and Advantages

The primary aim of quantitative research is to collect, count, measure, and

assess the meaning behind specific variables—and ultimately, devise

statistical explanations for what the researchers have learned. Quantitative

researchers gather information from a much larger number of representative

individuals than their qualitative counterparts, spending less time with each

individual.

Quantitative researchers typically begin with more clarity behind the

questions they want asked – and want answers to. Their approach is based

on numbers and pure data and relies heavily on scientific methods rather

QUALITATIVE AND QUANTITATIVE ANALYSIS



34

than intuition, personal observation or subjective judgment. Performed

properly, quantitative research yields results that are objective and

statistically valid.

When to Use Quantitative Research Methods

As a rule, quantitative research is the method of choice when the object is to

measure and analyze concepts, trends, product consumption, product usage,

and other variables with mathematical precision. Examples include:

Measuring awareness and usage of a product, service or brand across a

large audience.

Statistically validating a hypothesis—e.g. female doctors are

significantly more likely to prescribe anti-depressant medication than

male doctors.

Measuring and segmenting the market for a specific product and

opportunities for a new product or service.

Evaluating preferences for ads, concepts, packaging, and

communications.

Testing market preferences.

Comparing the desirability—and likely demand—for a product

concept within a target market.

Qualitative Research

Overview and Advantages

The purpose of qualitative research is to create a robust, detailed description

of behavioral patterns, consumer trends, market needs, and human

motivations. If quantitative research seeks to confirm an existing hypothesis,

qualitative research seeks to collect information that may support the

creation of a hypothesis or invalidate an existing theory.



35

Toward that end, researchers focus on a smaller number of people and spend

more time with them, eliciting their thoughts and opinions rather than

statistical data or yes-or-no answers. The researcher’s observations,

subjective interpretations, interpersonal skills and interview techniques thus

figure critically in the process, and in the quality and relevance of data

collected.

When to Use Qualitative Research Methods

A qualitative approach often makes most sense in the early stages of a

research project, in an effort to rebrand a product or service, or when the

goal is to extract information from consumers about the deeply rooted

motivations behind why they make particular choices. In particular, it is a

useful tool for:

Understanding how usage of one product or service can be

contextualized into a person’s broader lifestyle and belief system.

Gauging what the choices they make say about a certain person, or

group of people.

Identifying unmet needs in your target market.

Generating ideas on how to improve an existing product, brand or

service.

Quantitative versus Qualitative: How to Decide?

The decision on what type of research should be made solely based on your

current needs. If you’re looking for depth of insights and new ideas,

qualitative research is often the right choice; when you are seeking to

quantify and validate, more often than not quantitative research is the right

option.



36

To summarize, qualitative research is generally used as an exploratory tool-

to uncover thoughts, generate ideas and form hypotheses. Quantitative

methods can subsequently be applied to test and validate those early

findings.

In deciding which to use, achieving a complete picture will require the use of

both approaches. A market research company can help you determine your

specific needs, and how you can get the best results from both approaches.

##################



37

b)

The task of data collection begins after a research problem has been defined

and research design plan has been made.

Two types of data:

1. Primary data

2. Secondary data

The collection of primary data for business research is of paramount

importance to assist management in making decisions. Generally,

information regarding large number of characteristics are necessary to

analyze any problem pertaining to management. For instance, a study

relating to employment in rural areas require data on income, wages, types

of crops and land holdings. The collection of primary data thus requires a

great deal of deliberation and expertise. Depending upon the nature of

information required, the following methods of collecting primary data are

available.

1. Observation Method

2. Questionnaires Method

3. Interview Method

METHODS OF DATA COLLECTION

COLLECTION OF PRIMARY DATA



38

1. OBSERVATION METHOD Observation becomes a scientific tool and the method of data collection for

the researcher when it serves a formulated research purpose is systematically

planned and recorded and is subjected to checks and controls on validity

and reliability.

Under the observation method the information is sought by way of

investigators own direct observation without asking from respondent

Example In a study relating to consumer behavior the investigator instead of asking

the brand of wristwatch used by the respondent may himself look for the

watch.

Types of Observation Direct Observation Observing some actual event, or action and noting its details Indirect Observation Event has been done but just sec traces of an action or event. Traces mean

the remaining of that event.

Structured Observation When observations is focused on one item / aspect of action or event, then

it known as structured Observation

Unstructured Observation When Observation is focused on multi items/ aspects of the action. & Event

or when you are observing each and every thing then it is known as

unstructured observation.



39

Advantages Disadvantages

1. The method eliminates subjective bias

2. The information obtained under this method relates to what is current happening it is not complicated either by past behavior or future intentions and attitudes.

3. This method is independent of respondent willingness to respondents as such is relatively less demanded of active co-operation on the part of the respondents as happens to be the case in interview or the questionnaire method.

4. This method is particularly suitable in studies, which deal with subjects who are not capable giving verbal reports of their feeling for one reason or the other.

1. Its s an expensive method

2. The information provided by this method is very limited.

3. Sometimes unforeseen factors may interfere with the observational task.

4. The fact that some people are rarely accessible to direct observation creates obstacle for this method to collect data effectively.

2. QUESTIONNAIRE METHOD

This method of data collection is quite popular, particularly in case of big

enquiries. A questionnaire consists of a number of questions printed in a

definite order on a form. The questionnaire is mailed to respondents who are

expected to read & understand the questions & write down the reply in the

space meant for the purpose in the questionnaire itself.



40

Types of Questionnaires

Self-Administered Questionnaires:

The data are collected by enumerator through self- administered

questionnaire. The enumerator is a qualified and well trained person in

the field of data collection who also guides the respondent how to answer

the given questions while filling the questionnaires. However, it is a costly

method of data collection and also needs trained and qualified staff.

Surveys conducted by the C.B.R. during the “Documentation of Economy”

in the year 2000 are a typical example of use of self administered

questionnaire in data collection.

Mail Questionnaires:

Some times questionnaires are delivered by postal service or a courier

service. Mail questionnaires are typically cost effective than personal

interviews. In the mail questionnaires, respondent can take more time to

collect facts, talk with others, or consider reply. Its drawback is non

response and less return.

E-Mail Questionnaires:

It is the time of information technology. Use of electronic media is easy,

cheaper and fastest mode of communication. In this type of information

method a questionnaire is sent to a number of persons through mail and

response is also obtained via E-Mail.


1. Low cost even when the universe

is large &is widely spread.

2. It is free from bias of interviewer.

3. Respondents have adequate time

to give well thought out answers.

4. Large samples can be made use of

& thus the results can be made

more reliable.

1. Low rate of return of the duly filled

in questionnaires.

2. Only educated &cooperating

respondents can be used.

3. No control over the questionnaire

once it is sent.

4. This method is slowest of all.



41

3. INTERVIEW METHOD

Interview method of collecting data involves presentation of oral-verbal

stimuli & reply in same.

It can be used through:-

PERSONAL INTERVIEW

TELEPHONE INTERVIEW

Personal Interview

An interviewer asking questions generally face-to-face to other persons

conducts personal interview. This sort of interview may be in the form of

direct personal investigation or it may be an indirect oral investigation. This

method is particularly suitable for intensive investigations.


1. More information and that too in greater depth can be obtained.

2. Interviewer can overcome any resistance, if any, of the respondents; this interview can be made to yield an almost perfect sample of he population.

3. There is greater flexibility as questions can be restructured as when needed, especially in the unstructured interviews.

4. Observation method can supplement verbal recording of answers.

5. Personal information can be obtained easily in this method.

6. Sample control can be maintained, as non-response generally remains low.

7. Unlike mailed questionnaire, the

1. It can be quite expensive method, especially when large and widespread geographical sample is taken.

2. Possibility of bias of interviewer and respondent is maximum.

3. Certain respondents such as important officials cannot be approachable under this method.

4. It is time-consuming especially when sample is large and re-calls o respondents are to be made.

5. Sometimes the presence of he interview can over-stimulate he respondent and he may give imaginary answers to make the interview interesting.

6. Under the interview method the organization required for selection, training and supervising the field-



42

interviewer can usually control which persons will answer the questions.

8. The interviewer can catch the respondent off-guard and thus record the spontaneous reactions.

9. The language of the interview can be changed according to the education level of the respondent.

10. The interviewer can collect supplementary information about respondent's personal characteristics and environment, which helps while interpreting, results.

staff is more complex with formidable problems.

7. Interviewing at times may introduce systematic errors.

8. Interview presupposes a proper rapport with respondents for free and frank responses, which is not always possible.

Telephonic Interviews

This method of collecting information consists contacting information

consists contacting respondents on telephone itself. It is not a very widely

used method, but plays important role in industrial surveys in developed

regions.


1. It is more flexible in comparison to mail method.

2. It is faster in obtaining information than other methods.

3. It is cheaper compared to personal interviews; here the cost per response is very low.

4. Recall is easy; callbacks are economic and simple.

5. There is higher rate of response than mailing method

1. Little time is given to respondents to answer, as these types of interviews do not last for more than 5 minutes.

2. Survey is restricted to people who

have telephones.

3. Cost plays a major part in extensive geographical coverage.

4. It is not suitable for interviews



43

6. Replies can be recorded without causing embarrassment to respondents.

7. Interviewer can explain requirements more easily.

8. Access can be gained to respondents who otherwise cannot be contacted for one reason to other.

9. No field staff is required. 10. Wider distribution of sample is

possible.

having comprehensive answers to various questions.

5. Some extent of interviewer's bias exists.

6. Questions have to be short and probes are difficult to handle.

References:

www.brent.tvu.ac.uk/dissguide www.blurtit.com www.knowthis.com

##################

http://www.blurtit.com/



44

QUESTION 5

Explain Secondary Data Analysis in

detail?

(20)



45

The secondary data are those which have been collected by someone

else and which have already been passed through statistical process.

Secondary data has already been gathered or published for some other

purpose. Ordinarily, it is faster to collect and less expensive than primary

data. Sources of secondary data include internal (those inside the

organization) and external (those outside the organization.) Ideally,

secondary data is available from the organization's Marketing Information

System (MkIS). Data that has not been organized in a MkIS may be available

from the organization’s files and reports. Also, secondary data is available

from libraries, trade associations, government agencies, and the Internet. All

sources of secondary data should be exhausted before collecting primary

data.

Researcher must be careful in using secondary data. He must think for a

while because it is just possible that the secondary data may be unsuitable or

may be inadequate in the context of a problem which the researcher wants

to study. It is observed that it is never safe to take published statistics at

their face value without knowing their meaning and limitation.

Before using secondary data following characteristics must be kept in mind.

Reliability of data: Finding out such things about the said data can test the

reliability

SECONDARY DATA



46

Who collected the data

What were the sources of data

Were they collected by using proper method

At what time were they collected

Was there any bias of the complier

What level f accuracy was desired

Was it achieved?

Suitability of data: The data that are suitable for one enquiry may not

necessarily be found in another enquiry. Hence if the available data are

found to be suitable, they should not be used by the researcher .in the

context, the researcher must be very carefully scrutinize the definition of

various units and terms of collection used at the time of collecting the data

from the primary source originally. Similarly the object scope and nature of a

original enquiry must also be studied .If the researcher finds differences the

data will remain unsuitable for the present enquiry and should be used.

Adequacy of the data: If the level of accuracy achieved in data found

inadequate for the purpose of the present enquiry, they will be considered as

inadequate and should not be used by the researcher. The data will also be

considered inadequate, if they are related to an area which may be either

narrower or wider than the area of the present enquiry.



47

NATURE OF SECONDARY DATA SOURCES

Secondary data are existing data generated for a problem other than the one

at hand. Secondary data consists of information that already exists

somewhere, having been collected for another purpose.

Secondary data can usually be obtained more quickly and at a lower cost

than primary data. Also, secondary sources sometimes can provide data and

individual company cannot collect on its own – information that either is not

directly available or would be too expensive to collect.

Secondary data can also present problems. The needed information may not

exist – researchers can rarely obtain all the data they need from secondary

sources. Even when data can be found, they might not be very usable.

The researcher must evaluate secondary information carefully to make

certain it is relevant, accurate, current and impartial. Secondary data can

provide a good starting point for research and often can help to define

problems and research objectives. In most cases, however the company must

also collect primary data.

Sources of secondary data include internal (those inside the organization)

and external (those outside the organization.)

1. Internal Data Sources

Internal secondary data are existing data generated by the firm – for

example, accounting reports and reports of previous research projects.

Internal secondary data provide valuable performance evaluation



48

information and serve as a foundation for future research efforts. The main

advantages of internal secondary data are their accessibility and low costs

and the ease with which they can be incorporated into most research

projects.

2. External Data Sources

External secondary data are data generated by a source other than the firm. Major

types include:

Periodicals

One of the first places to look for secondary data is a library. Periodicals

(magazines, journals, and newspapers) are materials that are published at

regular intervals (monthly, quarterly, daily, etc.). They contain current

information, which point the way to trends that can translate into marketing

opportunities.

Government Data

Government data is available in inexpensive publications issued by local,

state, national, or international governments. Most of it is in computer form

and ready for further analysis. It is often used in estimating the size of

markets. In fact, most topics can be found in government documents.

Government data is generally considered to be reliable and includes laws,

regulations, statistics, consumer information, and much more.

Many researchers find it more practical to start with summary publications.

Leads to more detailed documents on a topic can be found in the footnotes.

Statistics are valuable in research because they can provide data for making

comparisons and determining historical trends.



49

Private Research Organizations

Many private research organizations, advertising agencies, newspapers and

magazines regularly compile and published data. Also, some information is

available as a service to customers for clients of advertising agencies or

buyers of advertising space or time. Most trade associations compile data

from and for their members. Some also publish magazines that focus on

important topics in the industry. The Yellow Pages can be a big help in

estimating how much competition there is in certain lines of business and

where it is located.

Internet Search Engines

Of course using an Internet search engine can expand a search. Since there is

no organization in charge of the Internet, no single comprehensive source or

index tells you what information is on the Internet or how to find it. People

search the Internet using a variety of resource discovery tools called search

engines, such as AltaVista, Yahoo, and HotBot. They are Web sites in and of

themselves, accessible through browsers, where you can search for other

sites that contain specific keywords. You simply type in the topic, or several

key words about what you are looking for, and the search engine will provide

Web sites that have information related to that topic. For example, you will

get a list of sites by keying in one or more words that best describes what

you want.

USES OF SECONDAY DATA SOURCES

Secondary data is used in case of the following cases:

When data is required in less time.

When data or information is required in less cost.

When it is not possible to collect data from direct (primary sources).



50

The term “secondary data” refers to data that were collected for other

studies. For the first researcher they are primary data, but for the second

researcher, they are secondary data.

There are enormous amounts of data that are collected every day by

government agencies, universities, private organizations, non-profits, think

tanks, public opinion polls and students. Some examples includes the

Population Census Organization, the Federal Bureau of Statistics and the

Provincial Departments of Industries, Higher Education Commission etc.

In order to use secondary data for research you need to

1. Locate the data

2. Evaluate the data

3. Verify the data

1. Locating the Data

Secondary data can be located by using printed indices, such as the

Statistics Index or the Statistical Reference Index available at most

libraries. There are also online database of secondary data in some

countries.

2. Evaluate the Data

Evaluating the secondary data is similar to doing a critique of a published

research report. Everything about the original project that produced the

SECONDARY DATA ANALYSIS



51

data should be scrutinized to ensure that the project had high validity

and reliability, such as:

1. Theoretical or conceptual model used.

2. Variables and hypotheses posited.

3. Operational definitions of variables and measures employed.

4. The population, sample frame, sampling design, and sample

obtained.

5. The data collection strategy and response rate obtained.

6. Quality control measures employed.

7. Data coding, data entry and data analysis procedures.

8. Factors which could have affected the study, such as current

events.

3. Verify the Data

If the data seems valid and reliable, you need to make sure that you have

an accurate copy of the data, especially if you obtained it through an

electronic medium. This includes verifying that you:

1. Have proper documentation.

2. Have the correct number of observations or cases.

3. Have the correct number of variables.

4. Have the correct coding scheme.

5. Can reproduce the original summary statistics.

Advantages of Secondary Data Disadvantages of Secondary Data

1. It is unobtrusive research.

2. It can be less expensive than

gathering the data all over again.

3. It may allow the researcher to

cover a wider geographic or

temporal range.

4. It can allow for larger scale

studies on a small budget.

1. Secondary data are only as good as

the research that produced them.

2. Must assume what the author(s)

meant by the terms they used.

3. There may be sub culture references,

jargon, or idiomatic expressions.

4. Data may be neither valid nor

reliable.



52

5. It does not exhaust people’s good

will by re-collecting readily

available data.

5. Instruments or data collection

methods may have changed over

time.

6. Data may have been modified by the

researcher already.

7. Poor documentation of the

secondary data set.

8. Electronic format incompatibilities.

9. Limited access to the data e.g. on-

site only.

10. Confidentiality considerations that

lessen its usefulness.

11. Substantial purchase or loan cost.

References:

www.mindstool123.com

www.enwikipedia.com

Research Methodology for Management Decision

##################

http://www.mindstool123.com/

http://www.enwikipedia.com/

semester iii assgn business research methodology

Documents