UNIT I
LESSON 1:
ROLE OF RESEARCH IN BUSINESS
DECISION MAKING
Students,We are going to start lessons in research
methodology. You all will be wondering what the subject research
methodology deals with. In our first class, we discuss the
importance of research in decision making. To start with, we will
discuss with concepts of research.
When research is used for decision-making, it means we are using
the methods of science to the art of management. Every
organization operates under some degree of uncertainty. This
uncertainty cannot be eliminated completely, although its can be
minimized with the help of research methodology. Research in
particularly important in the decision making process of various
business organizations. To choose the best line of action (in the
light of growing competition and increasing uncertainty).
Research in common context refers to a search for knowledge. It
can also be defined as a scientific and systematic search for gaining
information and knowledge on a specific topic or phenomena.
In management research is extensively used in various areas.
For example, We all know that, Marketing is the process of
Planning & Executing the concepts, pricing, promotion &
distribution of ideas, goods, and services to create exchange that
satisfy individual & organizational objectives. Thus, we can say
that, the Marketing Concept requires Customer Satisfaction rather
than Profit Maximization to be the goal of an organization. The
organization should be Consumer oriented and should try to
understand consumer’s requirements & satisfy them quickly and
efficiently, in ways that are beneficial to both the consumer & the
organization.
This means that any organization should try to obtain information
on consumer needs and gather market intelligence to help satisfy
these needs efficiently. This can only be done only only by research.
In this lecture we will be discussing the role of research in
management and its key ingredients. But first let us understand
the meaning of research. It will be clear after going through some
important definitions of research.
Definition
Some of the definitions of Research are:
1. Redman and Mory define research as a “systematized effort
to gain new knowledge”.
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2. Some people consider research as a movement, a movement
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from known to unknown. It is actually a voyage to discovery.
3. According to Clifford Woody
“Research comprises of defining and redefining problems,
formulating hypothesis or suggested solutions; making
deductions and reaching conclusions; and at last carefully testing
the conclusions to determine whether they fit the formulating
hypothesis”.
On evaluating these definitions we can conclude that Research
refers to the systematic method consisting of
• Enunciating the problem,
• Formulating a hypothesis,
• Collecting the fact or data,
• Analyzing the facts and
• Reaching certain conclusions either in the form of solutions
towards the concerned problem or in certain generals for
some theoretical formulation.
Market Research has become an important part in management
decision-making.
Marketing research is a critical part of such a Market intelligence
system; it helps to improve management decision making by
providing relevant, accurate, & timely information. Every decision
poses unique needs for information gathered through marketing
research.
Thus, we can say that marketing research is the function that
links the
• Consumer,
• Customer, and
• The public to the marketer through information
Information used to identify and define marketing opportunities
and problems;
• Generate,
• Refine, and evaluate marketing actions;
• Monitor marketing performance; and
• Improve understanding of marketing as a process.
In the nut-shell we see that Marketing research specifies
• the information required to address these issues,
• designs the method for collecting information,
• manages and implements the data collection process,
analyses,
• communicates the findings and their implications
Intelligent use of Research Tools is the key to business
achievement
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I hope the meaning of research is clear. Research provides a base
for your business sound decision - making.
There are three parts involved in any of your systematic finding:
1. Implicit question posed
2. Explicit answer proposed
3. Collection, analysis, and interpretation of the information
leading from the question to answer Illustration
Consider the Statement
“We recommend that Model X-240 of music system be priced at
Rs.10, 000/-” Marketing Research Manager forwarded this
recommendation to Marketing Vice-President.
Implicit Question
What should be the selling price of model X-240?
Explicit Answer:
The explicit answer is Rs.15000/=.
The third part deals with the collection, analysis, and interpretation
of the information leading from the question to the answer of
Rs.15000/.
Research is a systematic approach to gather information required
for sound management decisions.
Research is not synonymous to common sense. The difference
lies in the methods and procedures adopted to reach a conclusion.
Characteristics of Research
a. Systematic Approach
Each step must of your investigation be so planned that it leads
to the next step. Planning and organization are part of this
approach. A planned and organized research saves your time and
money.
b. Objectivity
It implies that True Research should attempt to find an unbiased
answer to the decision-making problem.
c. Reproducibl
A reproducible research procedure is one, which an equally
competent researcher could duplicate, and from it deduces
approximately the same results. Precise information regarding
samples-methods, collection etc., should be specified.
d. Relevancy
It furnishes three important tasks:
• It avoids collection of irrelevant information and saves
time and money
• It compares the information to be collected with
researcher’s criteria for action
• It enables to see whether the research is proceeding in
the right direction
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e. Control:
Research is not only affected by the factors, which one is
investigating but some other extraneous factors also. It is
impossible to control all the factors. All the factors that we think
may affect the study have to be controlled and accounted for.
For Example
Suppose we are studying the relationship between incomes and
shopping behaviour, without controlling for education and age,
it will be a height of folly, since our findings may reflect the effect
of education and age rather than income.
Control Must Consider
• All the factors, which are under control, must be varied as per
the study demands
• All those variables beyond the control should be recorded
Structure of Research
Most research projects share the same general structure. You might
think of this structure as following the shape of an hourglass.
The research process usually starts with a broad area of interest,
the initial problem that the researcher wishes to study. For instance,
the researcher could be interested in how to use computers to
improve the performance of students in mathematics. But this
initial interest is far too broad to study in any single research
project (it might not even be addressable in a lifetime of research).
The researcher has to narrow the question down to one that can
reasonably be studied in a research project. This might involve
formulating a hypothesis or a focus question. For instance, the
researcher might hypothesize that a particular method of computer
instruction in math will improve the ability of elementary school
students in a specific district. At the narrowest point of the research
hourglass, the researcher is engaged in direct measurement or
observation of the question of interest.
Once the basic data is collected, the researcher begins to try to
understand it, usually by analyzing it in a variety of ways.
Even for a single hypothesis there are a number of analyses a
researcher might typically conduct. At this point, the researcher
begins to formulate some initial conclusions about what happened
as a result of the computerized math program.
 Finally, the researcher often will attempt to address the original
broad question of interest by generalizing from the results of this
specific study to other related situations. For instance, on the basis
of strong results indicating that the math program had a positive
effect on student performance, the researcher might conclude that
other school districts similar to the one in the study might expect
similar results.
Importance of Research in Management Decision
The role of research has greatly increased in the field of business
and economy as a whole. The study of research methods provides
you with the knowledge and skills you need to solve the problems
and meet the challenges of today’s
modern pace of development.Three factors stimulate the interest
in a scientific research to decision making.
i. The manager’s increased need for more and better
information.
ii. The availability of improved techniques and tools to meet this
need.
iii. The resulting information overload
The usefulness and contribution of research in assisting marketing
decisions is so crucial that it has given rise to the opening of a new
field altogether called ‘marketing research’. Market research is
basically the systematic gathering, recording and analyzing of the
facts about business problems with a view to investigate the
structure and development of a market for the purpose of
formulating efficient policies for purchasing, production and sales.
Research with regard to demand and market factors has great
utility in business. Market analysis has become an integral tool of
business policy. Once sales forecasting is done, the Master
Production Schedule (MPS) and Material Requirement Planning
(MRP) can be efficiently done within the limits of the projected
capacity based on the MPS Budgetary control can be made more
efficient, thus replacing subjective business decisions with more
logical and scientific decisions.
Modern industry with its large-scale operations tends to create a
gulf between the customer and the manufacturer. Particularly
when business is too big and operations are too far-flung, one
cannot depend upon casual contacts and personal impressions.
Research methodology has been developed as the tool by which
business executives keep in touch with their customers. If an
entrepreneur has to make sound decisions, he must know who
has customers are and what they want. To a certain extent he relies
on his salesmen and his dealers to supply him with market
information but in recent years, more and more firms/executives
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have turned to research methodology as a medium of
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communication between the customer and the company.
Marketing research is the link between the manufacturer and the
consumer and the means of providing consumer-orientation in
all aspects of the marketing function. It is the instrument of
obtaining the knowledge about the market and consumer through
objective methods, which guard against the manufacturer’s
subjective bias.
Many Researchers define marketing research as gathering, recording
and analyzing of all facts about problems relating to the transfer
and sale of goods and services from producer to consumer.
Research methodology is an essential prerequisite for consumer-
oriented marketing. It is necessary for developing the marketing
strategy where in factors under the control of the organization,
viz., product distribution system, advertising, promotion and
price can be utilized so as to obtain maximum results in the
context of the factors outside the control of the organization viz.,
economic environment, competitor and laws of land.
Application of Marketing Research
Following are a number of examples on the applications of
marketing research. They clearly bring out how marketing research
has been helpful in resolving marketing problems or in identifying
opportunities or the development of new products.
1. A pharmaceutical company3 carried out a study on the
prescription behaviour for a major brand on account of its
declining sales. The study brought out interesting and even
startling findings on a number of aspects such as the
relationship between the sales and the age of the brand, its
regular promotion, its core therapeutic emphasis and the role
of retailers in servicing prescriptions. Prior to the study, all
these aspects had been only a matter of conjecture all the
while. On the basis of findings of the study, the company
changed its marketing strategy. This enabled it to regain the
lost market share of its brand.
2. Malayala Manorama, which is Kerala’s largest publication
group, has recently launched a monthly women’s magazine in
Hindi, Vanita. While launching this magazine, the
management observed that it was convinced through market
research that there was a huge vacuum in the Hindi magazine
segment. This new magazine Vanita has been positioned as a
partner and friend that the modern woman can identify with.
The first print run of Vanita was one lakh copies. Indications
are that within a short time it may become one of the
popular Hindi magazines.
3. Cadbury India Limited launched Picnic from its international
portfolio in February 1998. It is wrapped in vibrant colours
of red, blue and yellow in conformity with its international
packaging. Earlier, Cadbury India Limited commissioned a
consumer research study in Mumbai. The results of this
study were encouraging and showed that the Indian youth is
always interested in experimenting with new food options.
4. Procter & Gamble (P&G) launched Menthol, an
international vibrant of Head & Shoulders. This joins the
extra-conditioning anti-dandruff shampoo of the same
brand. The company conducted a market research study prior
to its launch. The findings of the study indicated a distinct
3
 need for a menthol-based shampoo. The study showed that • Market objectives
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in hot and humid conditions as in India, consumers prefer a 1. Innovation objectives

shampoo which not only removes dandruff but also
provides a cool and tingling sensation to the scalp.
5. Another example4 from P&G shows how marketing research
is used to identify new opportunities in the marketplace. The
company was getting a lot of data on Vicks- Vaporub. The
analysis of such data revealed that the most common
symptom of cold was a headache and that majority of adults
typically take a pill to cure it. This disclosed an opportunity
for a product that can treat the headache as well as the other
symptoms. The company thus launched Action 500. It not
only treated headache but also gave relief from blocked
nose. Marketing research can therefore lead to the
development of a new product.
6. Pepsi Foods5 has assigned great importance-to marketing
research. Through research it gets systematic information
about its markets and its customers. All its research is done
by the IMRB. Broadly, research studies done for Pepsi Foods
fall in the following three areas:
2. Customer satisfaction objectives
• Promotional objectives
• Corporate change objectives
Role of Research in Important Areas
Through research, an executive can quickly get a synopsis of the
current scenario, which improves his information base for making
sound decisions affecting future operations of the enterprise. The
following are the major areas in which research plays a key role in
making effective decisions.
Marketing
Marketing research is undertaken to assist the marketing function.
Marketing research stimulates the flow of marketing data from
the consumer and his environment to marketing information
system of the enterprise. Market research involves the process of
• Systematic collection
• Compilation

i. Studies undertaken on a continuous basis like • Analysis

marketing tracking studies and retail audits. • Interpretation of relevant data for marketing decisions
ii. Studies that are commissioned for specific marketing This information goes to the executive in the form of data. On
problems faced by the company. the basis of this data the executive develop plans and programmers.
iii. Studies done from time to time as per the requirement Advertising research, packaging research, performance evaluation
of the company such as a study to ascertain the research, sales analysis, distribution channel, etc., may also be
effectiveness of an ad campaign. considered in management research.Research tools are applied
All these three types of research studies have tremendously helped effectively for studies involving:
Pepsi Foods to strengthen its position in the market. It feels the
pulse of the market and is always in touch with the latest
developments in the market.
7. Another multinational company Whirlpool Asia lays
considerable emphasis on marketing research. In this
company, every activity, strategy and decision is based on data
collected through the research process. It believes in planning
research in advance though it is rather difficult. It strives to
have a meaningful dialogue with the consumer in order to
know his real opinion about its products, what difficulties he
experiences and what suggestions he has to offer.
Information thus received proves to be quite useful to the
company in modifying its products or in evolving new ones.
Whirlpool has gained an insight into the various segments in the
market. In India, it has segmented the market on the basis of the 1. Demand forecasting
different stages of the product life cycle. 2. Consumer buying behaviour
I hope you have the clear picture of the functions of the manager 3. Measuring advertising effectiveness
in an organization and the role of research in decision-making. 4. Media selection for advertising
On the basis of the functions we can state some of the general 5. Test marketing
objectives of Managerial Research:
6. Product positioning
• Decision-making objectives
7. Product potential
• Economic and business objectives
Marketing Research
• Policy objectives
i. Product Research: Assessment of suitability of goods with
• Product development
respect to design and price.
• Profit objectives
ii. Market Characteristics Research (Qualitative): Who uses
• Human Resource Development objectives
the product? Relationship between buyer and user, buying

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 motive, how a product is used, analysis of consumption

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rates, units in which product is purchased, customs and
habits affecting the use of a product, consumer attitudes,
shopping habits of consumers, brand loyalty, research of
special consumer groups, survey of local markets, basic
economic analysis of the consumer market, etc.
iii. Size of Market (Quantitative): Market potential, total sales
quota, territorial sales quota, quota for individuals,
concentration of sales and advertising efforts; appraisal of
efficiency, etc. • Where to buy
iv. Competitive position and Trends Research • How much to buy
v. Sales Research: Analysis of sales records. • When to buy
vi. Distribution Research: Channels of distribution, • At what prices to buy.
distribution costs.
Human Resource Development
vii.Advertising and Promotion Research: Testing and
evaluating, advertising and promotion You must be Aware that The Human Resource Development
department uses research to study wage rates, incentive schemes,
viii.New product launching and Product Positioning. cost of living, employee turnover rates, employment trends, and
Production performance appraisal. It also uses research effectively for its most
Research helps you in an enterprise to decide in the field of important activity namely manpower planning.
production on: Solving Various Operational and Planning Problems of
• What to produce Business and Industry

Various types of researches, e.g., market research, operations

research and motivational research, when combined together, help
• How much to produce in solving various complex problems of business and industry in
a number of ways. These techniques help in replacing intuitive
• When to produce
businessdecisions by more logical and scientific decisions
• For whom to produce
Government and Economic System
Some of the areas you can apply research are: Research helps a decision maker in a number of ways, e.g., it can
• Product development help in examining the consequences of each alternative and help
• Cost reduction in bringing out the effect on economic conditions. Various
• Work simplification
examples can be quoted such as’ problems of big and small
industries due to various factors–up gradation of technology and
• Profitability improvement
its impact on lab our and supervisory deployment, effect of
• Inventory control government’s liberal policy, WTO and its new guidances, ISO
Materials 9000/14000 standards and their impact on our exports allocation
The materials department uses research to frame suitable policies of national resources on national priority basis, etc.
regarding: Research lays the foundation for all Government Policies in our
economic system.
We all are aware of the fact that research is applied for brining out
union finance budget and railway budget every year. Government
also uses research for economic planning and optimum utilization
of resources for the development of the country. For systematic
collection of information on the economic and social structure of
the country you need Research. Such types of information indicate

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 what is happening to the national economy and what changes are
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taking place.
Social Relationships
Research in social sciences is concerned with both-knowledge for
self and knowledge for helping in solving immediate problems
of human relations. It is a sort of formal training, which helps an
individual in a better way, e.g.

Temple Management

• It helps professionals to earn their livelihood

• It helps students to know how to write and report various
findings.
• It helps philosophers and thinkers in their new thin kings
and ideas.
• It helps in developing new styles for creative work.
• It may help researchers, in general, to generalize new theories.

Now Let us do a Certain Activity

List out the uses of research in the field of
Hospital Management • Traffic Control
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• Railway

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Types of Research
On the basis of the fundamental objectives of the research, we
can classify research into two types:
Exploratory Research
Many times a decision maker is grappling with broad and poorly
defined problems. If you attempt to secure better definitions by
analytic thinking, it may be the wrong approach
and may even be counter productive counter productive in the
sense that this approach may lead to a definitive answer to the
wrong question.
Exploratory research uses a less formal approach. It pursues several,
possibilities simultaneously and in a sense it is not quite sure of
its objective.
Exploratory research is designed to provide a background, to
familiarize and, as the word implies, just “explore”, the general
subject.
A part of exploratory research is the investigation of relationships
among variables without knowing why they are studied. It borders
on an, idle curiosity approach, differing from it only in that the
investigator thinks there may be a payoff in the application some
where in the forest of questions.
Three typical approaches in exploratory research are:
a. The literature survey,
b. The experience survey, and
c. The analysis of “insight-stimulating” examples
The literature search is fast, economical way to develop a
better understanding of a problem area in which you are
investigating and have limited experience and knowledge.
It also familiarizes you with past research results, data sources,
and the type of data available.
.
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The experience survey concentrates on persons who are particularly
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knowledgeable in the particular area. In this representative samples
are not desired. A covering of widely divergent views is better.
Researchers are not looking for conclusions; they are looking for
ideas.
The analysis of specific examples is a sort of case study approach,
but again, researchers are looking for some fresh possible divergent
views.
Conclusive Research
Exploratory research gives rise to several hypotheses, which you
will have to tested for drawing definite conclusions. These
conclusions when tested for validity lay the structure for your
decision-making.
Conclusive research is used for this purpose of testing the
hypotheses generated by exploratory research. Conclusive research
can further be classified as:
• Descriptive
• Experimental.
Descriptive Research
Descriptive research as the name suggests is designed to describe
something- for example, the characteristics of users of a given
product; the degree to which product use varies with income, age,
sex or other characteristics; or the number who saw a specific
television commercial.
To be of maximum benefit, a descriptive study must only collect,
data for a definite purpose. Your objective and understanding
should be clear and specific.
Descriptive studies vary in the degree to which a specific hypothesis
is the guide. It allows both implicit and explicit hypotheses to be
tested depending on the research problem.
For Example:
A cereal company may find its sales declining. On the basis of
market feedback the company may hypothesise that teenage
children do not eat its cereal for breakfast. A descriptive study can
then be designed to test this hypothesis.
Experimental Research
Experimentation will refer to that process of research in which
one or more variables are manipulated under conditions, which
permit the collection of data, which show the effects.
Experiments will create situation so that you as a researcher can
obtain the particular data needed and can measure the data accurately.
Experiments are artificial in the sense that the situations are usually
created for testing purposes.
This artificiality is the essence of the experimental method, since it
gives you more control over the factors you are studying. If you
can control the factors, which are present in a given situation, you
can obtain more conclusive evidence of cause and effect
relationships between any two of them.
Thus, the ability to set up a situation for the express purpose of
observing and recording accurately the effect on one factor when
another is deliberately changed permits you to accept or reject
hypothesis beyond reasonable doubt
7
 If the objective is to validate in a resounding manner the cause
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and effect relationship among variables, then undoubtedly
experiments are much more effective than descriptive technique
Thus, we can conclude that:
• Research methodology minimizes the degree of uncertainty
involved in management decisions. Research lays the
structure for decision-making.
• Research is not synonymous with common sense.
• Research is characterized by - systematic, objective,
reproducible, relevance, and control.
• The role of research in the important areas of management
has been briefly covered. The areas include marketing,
production, banking, materials, human resource
development, and government.
• Research process involves the five important steps-problem
definition, research design, data collection, data analysis, and
interpretation of results. All these steps have been explained
in detail with their key elements.
• We have dichotomized the types of research into -
exploratory, and conclusive.
• While exploratory research enables the researcher to generate
hypotheses, they are tested for validity by the conclusive
research.
• Conclusive research could be further divided into-descriptive,
and experimental.
• While the descriptive procedures merely test the hypotheses,
the experimental research establishes in a more effective
manner the cause and effect relationships among variables.
Basic and Applied Research
Basic research-is intended to expand the body of knowledge in a
field or to provide knowledge for use of others Applied research-
used for solving a particular problem or guiding a specific decision
Basic Research
1. The U.S. Bureau all of census is the world’s largest fact
gathering agency. All its data are for use by others including
market.
2. The research in an advertising agency studies the result of use
of coupons versus rebate as demand stimulation tactics, but
not in a specific instance or in relation to a specific client’s
purpose.
3. A study conducted by 2 professors measuring diff between
high level & low performing sales representatives, relative to
their job satisfaction & their job turnover. Resets were
published in an article available to anyone with a problem to
which findings were relevant.
Applied Marketing Research
1. Hanes, hosiery company, found how to solve a long-
standing industry problem: how to sell hosiery through
super markets. Hanes conducted a series of marketing
studies thank R & D with strategic insights into the required
one-side product design, how to display and advertise.
Result: the ‘L’ Eggs brand that revolutionised marketing.
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2. IBM’s entry into PC. (Apple had moved into it earlier). This
was IBM’s biggest challenge.
Q 1. Which market segment was best strategically?
Q. 2. What is the ideal product?
Q. 3. What is ideal dist for target market? Marketing research
guided IBM’s decision to these problems and they
proved, when the new PC captured major market
share.
Camp bell soup-They put their world favors red and white soup
labels or cans for its whole life. They had periodic studies of
consumer preferences. When the first sighs of the can’s waving
popularity cause in, camp bell accelerated consumer testing of its
replacement. Plastic containers were perfected, which may be the
way your soup is package.
Activity
Research can be classified into:
Activity
You are Product manager for brand excellence of vanaspati, a
nationally distributed brand.
For the last four consequent months, brand excellence shows a
declining trend in sales. You ask the research department to do a
study to determine why sales have declined.
Is this an exploratory or conclusive research? Explain Your Reasons.
Ethics in Research
Ethics are norms or standards of behavior that guide moral choices
about our behavior and our relationships with others. Goal of
ethics in research is to ensure that no one is harmed or suffers
adverse consequences from research activities.
Main issues are
• Protect rights of respondent or subject
• Ensure the client receives ethically conducted and reported
research
• Follow ethical standards when designing research
• Protect the safety of research team
Ensure the research team follows the design
Self-Assessment
1. Creative management, whether in public administration or
private industry, depends on methods of inquiry that
maintain objectivity, clarity, accuracy and consistency.” Discuss
this statement and examine the significance of research.
2. It is often said that there is not a proper link between some
of the activities under way in the world of academics and in
most business in our country . Account for this state of
affairs and give suggestions for improvement.
3. Discuss with examples “Exploratory Research”, “Descriptive

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Research”, and “Experimental Research”
4. Briefly explain the meaning and importance of each of the
following in research
• Systematic
• Objectivity
• Relevance
• Reproducible

Analyse, Criticize, and Explain

Research “control” of the environment introduces artificial
conditions. Objective research is best achieved recording what
happens without “disturbing” the environment
References
Aaker D A , Kumar V & Day G S - Marketing Research
(John Wiley &Sons Inc, 6th ed.)
Bell J- Doing your Research Project (OU Press, 1993)
Course Design MS 95, Unit IV- “Report Writing and
Presentation”, IGNOU
Donald R. Cooper-Business Research Methods, Tata McGraw-
Hill Publication
Easterby-Smith M et al-Management Research-an introduction
(Sage Publications, 1991)
Gallagher, J. William, “Report Writing for Management”, Addison-
Wesley
Golen, P. Stevan, “Report Writing for Business and Industry”,
Business Communication Service
Kothari C R-Quantitative Techniques (Vikas Publishing House
3rd ed.)
Levin R I & Rubin DS-Statistics for Management (Prentice Hall of
India, 2002)
Nargundkar R-Marketing Research Text and Cases (Tata McGraw-
Hill 2002)
Paul D. Leedy, Practical Research: Planning & Design, Prentice Hall
Notes

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RESEARCH METHODOLOGY
LESSON 2:
STEPS IN RESEARCH PROCESS
Students, in our introduction to the subject lecture we had
conquered the areas where research is used as a tool for decision-
making. Also we know that all business operates in the world of
uncertainty. Research methodology minimizes the degree of
uncertainty involved in management decisions. Research lays the
structure for decision-making
Let us recapitulate what we have studied in the last lecture. We saw
that research plays a dominant role in the field of
• Marketing
• Production
• Banking
• Materials
• Human Resource Development
• Government
You can classify Research in one of three categories:
1. Exploratory research
2. Descriptive research
3. Causal research
These classifications are made according to your objective of the
research. In some cases the research will fall into one of these
categories, but in other cases different phases of the same research
project will fall into different categories.
Now we will discuss these categories in detail:
Exploratory Research
Exploratory research has the goal of formulating problems more
precisely, clarifying concepts, gathering explanations, gaining
insight, eliminating impractical ideas, and forming hypotheses.
Exploratory research can be performed using a literature search,
surveying certain people about their experiences, focus groups,
and case studies.
When you will be surveying people, exploratory research studies
would not try to acquire a representative sample, but rather, seek
to interview those who are knowledgeable and who might be able
to provide you the insight concerning the relationship among
variables.
Case studies can include contrasting situations or benchmarking
against an organization known for its excellence. Exploratory
research may develop hypotheses, but it does not seek to test
them. Exploratory research is characterized by its flexibility.
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Descriptive Research
Descriptive research is more rigid than exploratory research and
seeks to describe users of a product, determine the proportion of
the population that uses a product, or predict future demand for
a product or describes the happening of a certain phenomenon.
As opposed to exploratory research, if you are doing descriptive
research you should define questions, people surveyed, and the
method of analysis prior to beginning data collection.
In other words, the who, what, where, when, why, and how aspects
of the research should be defined. Such preparation allows you
the opportunity to make any required changes before the costly
process of data collection has begun.
There are two basic types of descriptive research:
Longitudinal Studies
Longitudinal studies are time series analyses that make repeated
measurements of the same individuals, thus allowing you to
monitor behaviour such as brand switching. However, longitudinal
studies are not necessarily representative since many people may
refuse to participate because of the commitment required.
Cross-sectional Studies
Cross-sectional studies sample the population to make
measurements at a specific point in time. A special type of cross-
sectional analysis is a cohort analysis, which tracks an aggregate of
individuals who experience the same event within the same time
interval over time. You can use Cohort analyses for long-
forecasting of product demand.
Causal Research
Casual Research seeks to find cause and affect relationships between
variables. It accomplishes this goal through laboratory and field
experiments.
Research process involves important steps-
• Problem definition
• Research proposal
• Research Design
• Data Collection
• Data Analysis & interpretation
• Report writing
• Interpretation of Research
Refer diagram below to understand each steps clearly
The Research Process
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Problem Definition
First of all one should be clear as what exactly the problem is.
If you are working in a company, the problem is assign by the top
management; usually you get broad ideas regarding the problem.
Then with the broad concept from the top management you
define the specific problem statement.
Or if you are doing some research project then you have to identify
your problem statement of your own. Remember your problem
statement should be specific.
Let us suppose that we want to know which of the two methods
can be employed
Method I or Method II
The researcher should be clear with the alternative choices he
has.Should other Methods be also considered?
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Let us assume that the alternative choices are clearly
RESEARCH METHODOLOGY
specified: either II or I be employed.We have identified
the alternative choices but not completely specified
the problem.
The complete problem is concerned with the criterion
that will determine the superiority of the two
methods.
The criterion could be:
• Cost
• Efficiency of materials
• Availability of resources, etc.
There are three aspects of research problem
a. The specification of units to be studied
b. The identification of the particular units within
the scope of study
c. The specification of the kind of information to
be sought.
What would you like to know if information is
free and without error?
A complete answer to this question defines the initial
research problem. It can be redefined later if some
difficulty arises.
Research Proposal
Research proposal are necessary for all business
research, it may be the internal proposal or it may be
the external proposal. But research proposal is not
required in case of research studies for P. hd., or paper
presentation as concerned.
A proposal is known as a work plan, prospectus,
outline, statement of intent, or draft plan. The
proposal tells us what, why, how, where, and to whom
it will be done.
The proposal of research is:
1. To present the management question to be
researched and its importance
2. To discuss the research efforts of others who
have worked on related management questions.
3. To suggest the data necessary for solving the
management question and how the data will be
gathered, treated, and interpreted.
We will discuss the research proposal in detail in lesson
3.
Research Design
Data Collection -Types and Sources:
Once the researcher has decided the ‘Research Design’,
the next job is of data collection. For data to be
useful, our observations need to be organized so
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 that we can get some patterns and come to logical conclusions.
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Statistical investigation requires systematic collection of data, so
that all relevant groups are represented in the data.
To determine the potential market for a new product, for example,
the researcher might study 500 consumers in a certain geographical
area. It must be ascertained that the group contains people
representing variables such as income level, race, education and
neighborhood. The quality of data will greatly affect the
conclusions and hence, utmost importance must be given to this
process and every possible precaution should be taken to ensure
accuracy, while gathering and collecting data.
Depending upon the sources utilized, whether the data has come
from actual observations or from records that are kept for normal
purposes, statistical data can be classified into two categories,
primary and secondary.
Primary Data
Primary data is one, which is collected by the investigator himself
for the purpose of a specific inquiry or study. Such data is original
in character and is generated by surveys conducted by individuals
or research institutions.
Some common types of primary data are:
• Demographic and socioeconomic characteristics
• Psychological and lifestyle characteristics
• Attitudes and opinions
• Awareness and knowledge:for example, brand awareness
• Intentions:for example, purchase intentions. While useful,
intentions are not a reliable indication of actual future
behavior.
• Motivation:a person’s motives are more stable than his/her
behavior, so motive is a better predictor of future behavior
than is past behavior.
Behaviour
Primary data can be obtained by:
Communication
Involves questioning respondents either verbally or in writing.
This method is versatile, since you need only to ask for the
information; however, the response may not be accurate.
Communication usually is quicker and cheaper than observation.
Observation
Involves the recording of actions and is performed by either a
person or some mechanical or electronic device. Observation is
less versatile than communication since some attributes of a person
may not be readily observable, such as attitudes, awareness,
knowledge, intentions, and motivation. Observation also might
take longer since observers may have to wait for appropriate events
to occur, though observation using scanner data might be quicker
and more cost effective. Observation typically is more accurate
than communication.
Personal Interviews
Have an interviewer bias that mail-in questionnaires do not have.
For example, in a personal interview the respondent’s perception
of the interviewer may affect the responses
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Questionnaire
The questionnaire is an important tool for gathering primary data.
Poorly constructed questions can result in large errors and invalidate
the research data, so significant effort should be put into the
Questionnaire
Secondary Data
When an investigator uses the data, which has already been collected
by others, such data is called secondary data. This data is primary
data for the agency that collects it and becomes secondary data for
someone else who uses this data for his own purposes. The
secondary data can be obtained from journals, reports, government
publications, publication of professional and research organization
and so on. For example, if a researcher desires to analyze the
weather conditions of different regions, he can get the required
information or data from the records of the meteorology
department.
There are several criteria that you should use to evaluate secondary
data.
• Whether the data is useful in the research study.
• How current the data is and whether it applies to time period
of interest.
• Errors and accuracy - whether the data is dependable and can
be verified.
• Presence of bias in the data.
• Specifications and methodologies used, including data
collection method, response rate, quality and analysis of the
data, sample size and sampling technique, and questionnaire
design.
• Objective of the original data collection.
• Nature of the data, including definition of variables, units
of measure, categories used, and relationships examined.
Data Collection Procedure for Primary
Data
Planning the Study
Since the quality of results gained from statistical data depends
upon the quality of information collected, it is important that a
sound investigative process be established to ensure that the data
is highly representative and unbiased. This requires a high degree
of skill and also certain precautionary measures may have to be
taken.
Modes of Data Collection
Following are widely used methods for collection of primary data:
• Observation
• Experimentation
• Questionnaire
• Interviewing
• Case Study Method
Observation Process
Observing the process at work collects information. The following
are a few examples.
i. Service Stations:Pose as a customer, go to a service station
and observe
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ii. To evaluate the effectiveness of display of the Dunlop
cushions in a departmental store, an observer notes:
• How many pass by?
• How many stopped to look at the display?
• How many decide to buy?
iii. Super Market What is the best location in the shelf? Hidden
cameras are used.
iv. Concealed tape recorder with the investigator helps to
determine typical sales arguments and find out sales
enthusiasm shown by various salesmen. By this method,
response bias is eliminated.
The method can be used to study sales techniques, customer
movements, customer response, etc. However, the customer’s/
consumer’s state of mind, their buying motives, their images are
not revealed. Their income and education is also not known. It
also takes time for the investigator to wait for particular sections
to take place.
Experimental Method:
Many of the important decisions facing the marketing executives
cannot be settled by secondary research, observation or by surveying
the opinions of customers or experts.
Experimental method may be used in the following situations.
i. What is the best method for training salesmen?
ii. What is the best remuneration plan for salesmen?
iii. What is the best shelf arrangement for displaying a product?
iv. What is the effectiveness of a point-of-purchase display?
v. What package design should be used?
vi. Which copy is the most effective?
vii.What media are the most effective?
viii.Which version of a product would consumers like best?
In a marketing experiment, the experimental units may be
consumers, stores, sales territories, etc.\Factors or marketing
variables under the control of the researcher which can be studied
are price, packaging, display, sales incentive plan, flavor, color shape,
Competitor’s actions, weather changes, in cooperative dealers, etc.
are environmental factors.
To study the effect of the marketing variables in the presence of
environmental factors, a sufficiently large sample should be used.
Or sometimes a control group is set up. A Control group is a
group equivalent to the experimental group and differing only in
not receiving any treatment.
The result/ response of a marketing experiment will be in the
form of sales, attitudes or behaviour.
Data Analysis-Preliminary Steps
• Before the analysis can be performed, raw data must be
transformed into the right format.
• Then, it must be edited so that errors can be corrected or
omitted.
• The data must then be coded; this procedure converts the
edited raw data into numbers or symbols. A codebook is
created to document how the data was coded.
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• Finally, the data is tabulated to count the number of samples
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falling into various categories.
Simple tabulations count the occurrences of each variable
independently of the other variables.
Cross tabulations, also known as contingency tables or cross tabs,
treats two or more variables simultaneously. However, since the
variables are in a two-dimensional table, cross tabbing more than
two variables is difficult to visualize since more than two
dimensions would be required. Cross tabulation can be performed
for nominal and ordinal variables. Cross tabulation is the most
commonly utilized data analysis method in marketing research.
Many studies take the analysis no further than cross tabulation.
This technique divides the sample into sub-groups to show how
the dependent variable varies from one subgroup to another. A
third variable can be introduced to uncover a relationship that
initially was not evident.
Conjoint Analysis
The Conjoint Analysis is a powerful technique for determining
consumer preferences for product attributes.
Hypothesis Testing
A basic fact about testing hypotheses is that a hypothesis may be
rejected but that the hypothesis never can be unconditionally
accepted until all possible evidence is evaluated.
In the case of sampled data, the information set cannot be
complete. So if a test using such data does not reject a hypothesis,
the conclusion is not necessarily that the hypothesis should be
accepted.
The null hypothesis in an experiment is the hypothesis that the
independent variable has no effect on the dependent variable. The
null hypothesis is expressed as H0. This hypothesis is assumed to
be true unless proven otherwise. The alternative to the null
hypothesis is the hypothesis that the independent variable does
have an effect on the dependent variable. This hypothesis is known
as the alternative, research, or experimental hypothesis and is
expressed as H1. This alternative hypothesis states that the
relationship observed between the variables cannot be explained
by chance alone.
There are two types of errors in evaluating hypotheses:
• Type I error: occurs when one rejects the null hypothesis and
accepts the alternative, when in fact the null hypothesis is
true.
• Type II error: occurs when one accepts the null hypothesis
when in fact the null hypothesis is false.
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 Because their names are not very descriptive, these types of errors
RESEARCH METHODOLOGY
sometimes are confused. Some people jokingly define a Type III
error to occur when one confuses Type I and Type II. To illustrate
the difference, it is useful to consider a trial by jury in which the
null hypothesis is that the defendant is innocent. If the jury convicts
a truly innocent defendant, a Type I error has occurred. If, on the
other hand, the jury declares a truly guilty defendant to be innocent,
a Type II error has occurred.
Hypothesis testing involves the following steps:
• Formulate the null and alternative hypotheses.
• Choose the appropriate test.
• Choose a level of significance (alpha) - determine the
rejection region.
• Gather the data and calculate the test statistic.
• Determine the probability of the observed value of the test
statistic under the null hypothesis given the sampling
distribution that applies to the chosen test.
• Compare the value of the test statistic to the rejection
threshold.
• Based on the comparison, reject or do not reject the null
hypothesis.
• Make the marketing research conclusion.
In order to analyze whether research results are statistically
significant or simply by chance, a test of statistical significance can
be run
Tests of Statistical Significance
The chi-square goodness-of-fit test is used to determine whether
a set of proportions have specified numerical values. It often is
used to analyze bivariate cross-tabulated data.
Some examples of situations that are well suited for this test are:
• A manufacturer of packaged products test markets a new
product and wants to know if sales of the new product will
be in the same relative proportion of package sizes as sales
of existing products.
• A company’s sales revenue comes from Product A (50%),
Product B (30%), and Product C (20%). The firm wants to
know whether recent fluctuations in these proportions are
random or whether they represent a real shift in sales.
Defining k categories and observing the number of cases falling
into each category perform the chi-square test. Knowing the
expected number of cases falling in each category, one can define
chi-squared as:
?2 = SOi - Ei )2 / Ei
i observations and can be used with categorical variables. Note that
Where
Oi = the number of observed cases in category i,”
E i = the number of expected cases in category i,
k = the number of categories,
the summation runs from i = 1 to i = k.
Before calculating the chi-square value, one needs to determine the
expected frequency for each cell. This is done by dividing the
number of samples by the number of cells in the table.
To use the output of the chi-square function, one uses a chi-
square table. To do so, one needs to know the number of degrees
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of freedom (df). For chi-square applied to cross-tabulated data,
the number of degrees of freedom is equal to
(number of columns - 1) (number of rows - 1)
This is equal to the number of categories minus one. The
conventional critical level of 0.05 normally is used. If the calculated
output value from the function is greater than the chi-square look-
up table value, the null hypothesis is rejected.
Anova
Another test of significance is the Analysis of Variance (ANOVA)
test. The primary purpose of ANOVA is to test for differences
between multiple means. Whereas the t-test can be used to
compare two means, ANOVA is needed to compare three or more
means. If multiple t-tests were applied, the probability of a TYPE
I error (rejecting a true null hypothesis) increases as the number of
comparisons increases
One-way ANOVA examines whether multiple means differ. The
test is called an F-test. ANOVA calculates the ratio of the variation
between groups to the variation within groups (the F ratio). While
ANOVA was designed for comparing several means, it also can be
used to compare two means. Two-way ANOVA allows for a second
independent variable and addresses interaction.
To run a one-way Anova, use the following steps:
• Identify the independent and dependent variables.
• Describe the variation by breaking it into three parts - the
total variation, the portion that is within groups, and the
portion that is between groups (or among groups for more
than two groups).
The total variation (SStotal) is the sum of the squares of the
differences between each value and the grand mean of all the values
in all the groups. The in-group variation (SSwithin) is the sum of
the squares of the differences in each element’s value and the group
mean. The variation between group means (SSbetween) is the total
variation minus the in-group variation (SStotal - SSwithin).
1. Measure the difference between each group’s mean and the
grand mean.
2. Perform a significance test on the differences.
3. Interpret the results.
This F-test assumes that the group variances are approximately
equal and that the observations are independent. It also assumes
normally distributed data; however, since this is a test on means
the Central Limit Theorem holds as long as the sample size is not
too small
ANOVA is efficient for analyzing data using relatively few
regression can perform a similar analysis to that of ANOVA.
Discriminant Analysis
Analysis of the difference in means between groups provides
information about individual variables, it is not useful for
determine their individual impacts when the variables are used in
combination. Since some variables will not be independent from
one another, one needs a test that can consider them
simultaneously in order to take into account their interrelationship.
One such test is to construct a linear combination, essentially a
weighted sum of the variables. To determine which variables
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discriminate between two or more naturally occurring groups,
discriminant analysis is used. Discriminant analysis can determine
which variables are the best predictors of group membership. It
determines which groups differ with respect to the mean of a
variable, and then uses that variable to predict new cases of group
membership. Essentially, the discriminant function problem is a
one-way ANOVA problem in that one can determine whether
multiple groups are significantly different from one another with
respect to the mean of a particular variable. A discriminant analysis
consists of the following steps:
1. Formulate the problem.
2. Determine the discriminant function coefficients that result
in the highest ratio of between-group variation to within-
group variation.
3. Test the significance of the discriminant function.
4. Interpret the results.
5. Determine the validity of the analysis.
Discriminant analysis analyzes the dependency relationship, whereas
factor analysis and cluster analysis address the interdependency
among variables.
Factor Analysis
Factor analysis is a very popular technique to analyze
interdependence. Factor analysis studies the entire set of
interrelationships without defining variables to be dependent or
independent. Factor analysis combines variables to create a smaller
set of factors.
Mathematically, a factor is a linear combination of variables. A
factor is not directly observable; it is inferred from the variables.
The technique identifies underlying structure among the variables,
reducing the number of variables to a more manageable set. Factor
analysis groups variables according to their correlation
The factor loading can be defined as the correlations between the
factors and their underlying variables.
A factor-loading matrix is a key output of the factor analysis. An
example matrix is shown below.
Factor 1 Factor 2 Factor 3
Variable 1
Variable 2
Variable 3
Column's Sum of Squares:
Column’s Sum of Squares
Each cell in the matrix represents correlation between the variable
and the factor associated with that cell. The square of this correlation
represents the proportion of the variation in the variable explained
by the factor. The sum of the squares of the factor loadings in
each column is called an eigen value. An eigen value represents the
amount of variance in the original variables that is associated with
that factor. The communality is the amount of the variable variance
explained by common factors
A rule of thumb for deciding on the number of factors is that
each included factor must explain at least as much variance as does
an average variable. In other words, only factors for which the
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eigen value is greater than one are used. Other criteria for
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determining the number of factors include the Scree plot criteria
and the percentage of variance criteria.
To facilitate interpretation, the axis can be rotated. Rotation of the
axis is equivalent to forming linear combinations of the factors. A
commonly used rotation strategy is the varimax rotation. Varimax
attempts to force the column entries to be either close to zero or
one.
Cluster Analysis
Market segmentation usually is based not on one factor but on
multiple factors. Initially, each variable represents its own cluster.
The challenge is to find a way to combine variables so that relatively
homogenous clusters can be formed. Such clusters should be
internally homogenous and externally heterogeneous. Cluster
analysis is one way to accomplish this goal. Rather than being a
statistical test, it is more of a collection of algorithms for grouping
objects, or in the case of marketing research, grouping people.
Cluster analysis is useful in the exploratory phase of research when
there are no a-priori hypotheses.
Cluster Analysis Steps
Formulate the problem, collecting data and choosing the variables
to analyze.
Choose a distance measure. The most common is the Euclidean
distance. Other possibilities include the squared Euclidean distance,
city-block (Manhattan) distance, Chebychev distance, power
distance, and percent disagreement.
Choose a clustering procedure (linkage, nodal, or factor
procedures).
Determine the number of clusters. They should be well separated
and ideally they should be distinct enough to give them descriptive
names such as professionals, buffs, etc.
Profile the clusters.
Assess the Validity of the Clustering
The format of the marketing research report varies with the needs
of the organization.
The report often contains the following sections:
Authorization letter for the research
• Table of Contents
• List of illustrations
• Executive summary
• Research objectives
• Methodology
• Results
• Limitations
• Conclusions and recommendations
• Appendices containing copies of the questionnaires, etc
Data is then processed in order to summarise the results
It seeks to determine how units covered in the research project
respond to the items under investigation.
It could be
• Univariate
• Bivariate
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 • Multivariate
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Interpretation of Results
It is the “so what”? of research.
Research is wasted if it is not used in decision making or influencing
actions. Not only the results should be interpreted into action
recommendations but the recommendations must also be
communicated in an understandable manner. Results should be
presented in as simple manner as possible.
Basic Requirement
1. Researcher must understand the proper interpretation of
research results and the assumptions embodied in them.
2. Researcher should understand the kinds of questions
research can handle and the type of structure required making
a problem “researchable”
3. Researcher must be capable of appraising the feasibility of
research proposals
Special Case
In management maximum research is done in the field of
marketing.
We conceptualize the marketing research process as consisting of
six steps. Each and every step in market research we will be doing
in detail. First let us discuss these briefly now.
Step 1: Problem Definition
The first step in any marketing research project is to define the
problem. In defining the problem, the you should take into
account
• The purpose of the study,
• The relevant background information,the information
needed, and
• How it will be used in decision-making.
Problem definition involves discussion with the
decision makers,
• Interviews with industry experts,
• Analysis of secondary data, and
• Perhaps, some qualitative research, such as focus groups.
Once the problem of investigation has been precisely defined, the
research can be designed and conducted properly
Step 2: Development of an Approach to the Problem
Development of an approach to the problem includes
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• Formulating an objective or theoretical framework,
• analytical models,
• Research questions, and hypotheses and identifying the
information needed.
This process is guided by
• Discussion with management and industry experts,
• Analysis of secondary data,
• Qualitative research, and
• Pragmatic considerations
Step 3: Research Design Formulation
A research design is a framework or blueprint for conducting the
marketing research project. It details the procedures necessary for
obtaining the required information, and its purpose is to design a
study that will test the hypotheses of interest, determine possible
answers to the research questions, and provide the information
needed for decision making.
Conducting exploratory research precisely defines the variables,
and designing appropriate scales to measure them are also a part
of the research design
The issue of how the data should be obtained from the
respondents (for example, by conducting a survey or an
experiment) must be addressed. It is also necessary to design a
questionnaire and a sampling plan to select respondents for the
study.
More formally, formulating the research design involves the
following steps:
1. Definition of the information needed
2. Secondary data analysis
3. Qualitative research
4. Methods of collecting quantitative data (survey, observation,
and experimentation)
5. Measurement and scaling procedures
6. Questionnaire design
7. Sampling process and sample size
8. Plan of data analysis
Step 4: Fieldwork or Data Collection
Data collection involves a field force or staff that operates either in
the field, as in the case of personal interviewing (in-home, mall
intercept, or computer-assisted personal interviewing), from an
office by telephone (telephone or computer-assisted telephone
interviewing), through mail (traditional mail and mail panel
surveys with pre-recruited households), or electronically (e-mail
or Internet).
Proper selection, training, supervision, and evaluation of the field
force help minimize data-collection errors.
Step 5: Data Preparation and Analysis
Data preparation includes the editing, coding, transcription and
verification of data. Each questionnaire or observation form is
inspected or edited and, if necessary, corrected. Number or letter
codes are assigned to represent each response to each question in
the questionnaire. The data from the questionnaire are transcribed
or key punched onto magnetic tape or disks, or input directly into
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RESEARCH METHODOLOGY
to the components of the marketing research problem and, thus,
provide input in to the management decision problem.
Activity 2
Step 6: Report Preparation and Presentation Explain the importance of interpretation of results?
The entire project should be documented in a written report that
addresses the specific research questions identified, describes the
approach, the research design, data collection, and data analysis
procedures adopted, and presents the results and the major
findings. The findings should be presented in a comprehensible
format so that management can readily use them in the decision
making process. In addition, an oral presentation should be Activity 3
made to management using tables, figures, and graphs to enhance Name and briefly discuss the five steps of research process?
clarity and impact
Errors in Research Process
There are 2 types of errors
a. Sampling error
b. Non sampling error
Sampling error is the difference between sample value and
corresponding population value.
Non sampling error are errors in the difference stages of research.as
Activity 4
a. Defective problem design Explain with the help of a suitable example the need for
b. Defective population definition introducing two types of environmental conditions in a research
c. Frame set problem?
d. Surrogate information error
e. Non response error
f. Measurement error
g. Experimental error
h. Poor questionnaire design
i. Interview bias
j. Data processing error
Clue
k. Data analysis errors The environmental conditions specified in the research problem
l. Interpretation errors are of two types:
References and Further Readings i. Those beyond firm’s control
1. Boyd, westfall, and stasch, “Marketing Research Text and ii. Those within the firm’s control
Cases”, All India Traveller Bookseller, New Delhi.
2. Brown, F.E. “Marketing Research, a structure for decision
making”, Addison – Wesley publishing company
3. Kothari, C.R. “Research Methodology-Methods and
Techniques”, Wiley Eastern Ltd.
4. Stockton and Clark, “Introduction to Business and
Economic Statistics”, D.B.Taraporevala Sons andCo. Private Activity 5
Limited, Bombay. A local supermarket has experienced a decline in unit _sales and
little change in rupee value sales. Profits have almost vanished.
5. Dunn Olive Jean and Virginia A Clarck, “Applied Statistics”
The chief executive in searching for ways to revitalize the operation
John Wiley and Sons.
was advised to increase the number of hours the market is open
6. Green Paul E and Donald S. Tull, “Research for Marketing for business. He comes to you for _advice in structuring a research
Decisions” Prentice Hall of India, New Delhi problem that will provide relevant information for decision-
Activity 1 making.
The definition of the problem comprise Define the problem, taking care to:
a. State the relevant question
b. Enumerate the alternative answers,

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 c. Clearly define the units of analysis and characteristics of
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interest.
What are the relevant “ states of nature” which would lead to the
selection each alternative answer?

Activity 6
A shampoo manufacturing company wishes to test two types of
makes in order to determine which is the best one .
A. Propose and defend a precise definition of “best”
B. What is the set of hypothesis that should be tested?
C. What action would be associated with each hypothesis?

Activity 7
Define and state the research problem for the following case:
“Why is the productivity in Japan so much higher than in India”?
Think about problem in a broader sense and narrow down the
research problem.

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LESSON 3:
RESEARCH PROPOSAL
Students, to start with any research work, you have to first write a
research proposal.Today, we are going to discuss the various steps
of writing a research proposal.
What is a Research Proposal?
A proposal is an offer to produce or render a service to the potential
buyer or sponsor.
The research proposal presents a problem, discusses related research
efforts, outlines the data needed and shows the research design.
Usefulness
• sponsor uses proposal to evaluate research idea
• Ensures the sponsor and investigator agree to research
question
• For newcomer, research proposal helps learning from others
• Completed proposal provides a logical guidance
Dear friends, after completion of this lesson you will be able to
• Prepare internal research proposal
• Prepare external research proposal
Depending on the type of project, the sponsoring individual or
institution, and the cost of the project, different levels of
complexity are required for a proposal to be judged complete.
For example the government agencies demand the most complex
proposals for their funding analyses. On the other extreme, an
exploratory study done within a manager’s department may need
merely a one- to three-page memo outlining the objectives,
approach, and time allotted to the project.
In general, business proposals can be divided between those
generated internally and externally. An internal proposal is done
for the corporation by staff specialists or by the research department
of the firm.
External proposals are either solicited or unsolicited. Sponsors
can be university grant committees, government agencies,
government contractors, corporations, and so forth. With few
exceptions, the larger the project, the more complex is the proposal.
In public sector work, the complexity is generally greater than in a
comparable private sector proposal.
There are three general levels of complexity. The exploratory study
is the first, most simple business proposal. More complex and
common in business is the small-scale study-either an internal
study or an external contract research project
Now let us discuss difference Internal proposal & External
proposal
Internal Proposals
Internal proposals are a memo from the researcher to management
outlining the problem statement, study objectives, research design,
and schedule is enough to start an exploratory study.
Privately and publicly held firms are concerned with how to solve
a particular problem, make a decision, or improve an aspect of
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11.556
RESEARCH METHODOLOGY
their business. Seldom do businesses begin research studies for
other reasons.
In the small-scale proposal, the literature review and bibliography
are consequently not stressed and can often be stated briefly in the
research design.
Since management insists on brevity, an executive summary is
mandatory for all but the most simple of proposals (projects that
can be proposed in a two-page memo do not need an executive
summary). Schedules and budgets are necessary for funds to be
committed. For the smaller-scale projects, descriptions are not
required for facilities and special resources, nor is there a need for a
glossary. Since small projects are sponsored by managers familiar
with the problem, the associated jargon, requirements, and
definitions should be included directly in the text. Also, the
measuring instrument and project management modules are not
required. Managers will typically leave this detail for others.
External Proposals
An external proposal is either solicited or unsolicited. A solicited
proposal is often in response to a request for proposal (RFP). The
proposal is likely competing against several others for a contract or
grant. An unsolicited proposal has the advantage of not competing
against others but the disadvantage of having to speculate on the
ramifications of a problem facing the firm’s management.
Even more difficult, the writer of an unsolicited proposal must
decide to whom the document should be sent.
The most important sections of the external proposal are the
objectives, design, qualifications, schedule, and budget. The
executive summary of an external proposal may be included within
the letter of transmittal.
As the complexity of the project increases, more information is
required about project management and the facilities and special
resources. In contract research, the results and objectives sections
are the standards against which the completed project is measured.
As we move toward government-sponsored research, particular
attention must be paid to each specification in the RFP.
Contents of Research Proposal
1.Executive Summary
The executive summary allows a busy manager or sponsor to
understand quickly the thrust of the proposal. It is essentially an
informative abstract, giving executives the chance to grasp the
essentials of the proposal without having to read the details. The
goal of the summary is to secure a positive evaluation by the
executive who will pass the proposal on to the staff for a full
evaluation. As such, the executive summary should include brief
statements of the management dilemma and management
question, the research objectives/research questions(s), and the
benefits of your approach. If the proposal is unsolicited, a brief
description of your qualifications is also appropriate.
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 2. Problem Statement
RESEARCH METHODOLOGY
This section needs to convince the sponsor to continue reading
the proposal. You should capture the reader’s attention by stating
the management dilemma, its background, and consequences,
and the resulting management question. The management
question starts the research task. The importance of researching
the management question should be emphasized here if a separate
module on the importance/ benefits of study is not included
later in the proposal.
In addition, this section should include any restrictions or areas
of the management question that will not be addressed. Problem
statements too broadly defined cannot be addressed adequately in
one study. It is important that the management question be
distinct from related problems and that the sponsor see the
delimitations clearly. Be sure your problem statement is clear
without the use of idioms or clinches.
3.Research Objectives
This module addresses the purpose of the investigation. It is
here that you layout exactly what is being planned by the proposed
research. In a descriptive study, the objectives can be stated as the
research question. Recall that the research question can be further
broken down into investigative questions. If the proposal is for a
causal study, then the objectives can be restated as a hypothesis.
Theobjectives module flows naturally from the problem
statement, giving the sponsor specific, concrete, and achievable
goals. It is best to list the objectives either in order of importance
or in general terms first, moving to specific terms (i.e., research
question followed by underlying investigative questions). The
research questions (or hypotheses, if appropriate) should be set
off from the flow of the text so they can be found easily.
The research objectives section is the basis for judging the
remainder of the proposal and, ultimately, the final report. Verify
the consistency of the proposal by checking to see that each objective
is discussed in the research design, data analysis, and results
sections.
4.Literature Review
The literature review section examines recent (or historically
significant) research studies, company data, or industry reports
that act as a basis for the proposed study. Begin your discussion
of the related literature and relevant secondary data from a
comprehensive perspective, moving to more specific studies that
are associated with your problem. If the problem has a historical
background, begin with the earliest references.
Avoid the extraneous details of the literature; do a brief review of
the information, not a comprehensive report. Always refer to the
original source. If you find something of interest in a quotation,
find the original publication and ensure you understand it. In this
way, you will avoid any errors of interpretation or transcription.
Emphasize the important results and conclusions of other
studies, the relevant data and trends from previous research, and
particular methods or designs that could be duplicated or should
be avoided. Discuss how the literature applies to the study you are
proposing; show the weaknesses or faults in the design, discussing
how you would avoid similar problems. If your proposal deals
solely with secondary data, discuss the relevance of the data and
the bias or lack of bias inherent in it.
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The literature review may also explain the need for the proposed
work to appraise the shortcomings and informational gaps in
secondary data sources. This analysis may go beyond scrutinizing
the availability or conclusions of past studies and their data, to
examining the accuracy of secondary sources, the credibility of
these sources, and the appropriateness of earlier studies.
5.Importance/ Benefits of the Study
This section allows you to describe explicit benefits that will accrue
from your study. The importance of “doing the study now”
should be emphasized. Usually, this section is not more than a
few paragraphs. If you find it difficult to write, then you have
probably not understood the problem adequately. Return to the
analysis of the problem and ensure, through additional
discussions with your sponsor or your research team, or by a
reexamination of the literature, that you have captured the essence
of the problem.
This section also requires you to understand what is most troubling
to your sponsor. If it is a potential union activity, you cannot
promise that an employee survey will prevent unionization. You
can, however, show the importance of this information and its
implications. This benefit may allow management to respond to
employee concerns and forge a linkage between those concerns
and unionization.
The importance/benefits section is particularly important to the
unsolicited external proposal. You must convince the sponsoring
organization that your plan will meet its needs.
6.Research Design
Up to now, you have told the sponsor what the problem is, what
your study goals are, and why it is important for you to do the
study. The proposal has presented the study’s value and benefits.
The design module describes what you are going to do in technical
terms. This section should include as many subsections as needed
to show the phases of the project. Provide information on your
proposed design for tasks such as sample selection and size, data
collection method, instrumentation, procedures, and ethical
requirements. When more than one way exists to approach the
design, discuss the methods you rejected and why your selected
approach is superior.
7.Data Analysis
A brief section on the methods used for analyzing the data is
appropriate for large scale contract research projects and doctoral
theses. With smaller projects, the proposed data analysis would
be included within the research design section. Describe your
proposed treatment and the theoretical basis for using the selected
techniques. The object of this section is to assure the sponsor you
are following correct assumptions and using theoretically sound
data analysis procedures.
This is often an arduous section to write. By use of sample charts
and dummy tables, you can make it easier to understand your data
analysis. This will make the section easier to write and easier to
read. The data analysis section is important enough to contract
research that you should contact an expert to review the latest
techniques available for your use. If there is no statistical or analytical
expertise within your company, be prepared to hire a professional
to help with this activity,
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8.Nature and Form of Results Budget Items Rate Total Days

RESEARCH METHODOLOGY
Upon finishing this section, the sponsor should be able to go Charge
back to the problem statement and research objectives and discover A. Salaries
that each goal of the study has been covered. One should also
1. Research director, Rs 200/hr 20 hours
specify the types of data to be obtained and the interpretations
Rs. 4,000
that will be made in the analysis. If the data are to be turned over
to the sponsor for proprietary reasons, make sure this is reflected. Jason Henry
Alternatively, if the report will go to more than one sponsor, that 2. Associate Rs100/hr 10 hours
should be noted. Rs. 1,000
This section also contains the contractual statement telling the 3. Research assistants (2) Rs20/hr 300 hours
sponsor exactly what types of information will be received. Rs.6,000
Statistical conclusions, applied findings, recommendations, action 4. Secretarial (1) Rs12/hr 100 hours
plans, models, strategic plans, and so forth are examples of the Rs 1,200
forms of results.
Subtotal
9.Qualifications of Researchers Rs12,200
This section should begin with the principal investigator. It is also
B. Other costs
customary to begin qualifications with the highest academic degree
held. Experience in carrying out previous research is important, 5.Employeeservicesand benefits
especially in the corporate marketplace, so a concise description of 6. Travel Rs 2,500
similar projects should be included. Also important to business 7. Office supplies Rs 100
sponsors is experience as an executive or employee of an
8. Telephone Rs 800
organization involved in a related field. Often businesses are
reluctant to hire individuals to solve operational problems if they 9. Rent
do not have practical experience. Finally, relevant business and 10. Other equipment
technical societies to which the researcher belongs can be included 11. Publication and storage costs Rs 100
where this information is particularly relevant to the research project.
Subtotal Rs 3,500
The entire curriculum vitae of each researcher should not be
C. Total of direct costs Rs15,700
included unless required by the RFP. Instead, refer to the relevant
areas of experience and expertise that make the researchers the D. Overhead support Rs. 5,480
best selection for the task. E. Total funding requested Rs. 2l.18O
10.Budget One reason why external research agencies avoid giving detailed
The budget should be presented in the form the sponsor requests. budgets is the possibility that disclosures of their costing practices
For example, some organizations require secretarial assistance to will make their calculations public knowledge, reducing their
be individually budgeted, whereas others insist it be included in negotiating flexibility. Since budget statements embody a financial
the research director’s fees or the overhead of the operation. In work strategy that could be used by the recipient of the bid to
addition, limitations on travel, per diem rates, and capital develop an independent work plan, vendors are often doubly
equipment purchases can change the way in which you prepare a careful.
budget The budget section of an external agency’s proposal states the
Typically, the budget should be no more than one to two pages. total fee payable for the assignment. When it is accompanied by a
Diagram below shows a format that can be used for small contract proposed schedule of payment, this is frequently detailed in a
research projects. Additional information, backup details, quotes purchase order. Unlike most product sale environments, research
from vendors, and hourly time and payment calculations should payments can be divided and paid at stages of completion.
be put into an appendix if required or kept in the researcher’s file Sometimes a retainer is scheduled for the beginning of the contract,
for future reference. then a percentage at an intermediate stage, and the balance on
The budget statement in an internal research proposal is based on completion of the project. .
employee and overhead costs. The budget presented by an external It is extremely important that you retain all information you use
research organization is not just the wages or salaries of their to generate your budget. If you use quotes from external
employees but the person-hour price that the contracting firm contractors, get the quotation in writing for your file. If you
charges. estimate time for interviews, keep explicit notes on how you made
The detail presented may vary depending on both the sponsors’ the estimate. When the time comes to do the work, you should
requirements and the contracting research company’s policy. know exactly how much money is budgeted for each particular
task.
Budget Example:
Some costs are more elusive than others. Do not forget to build
Research Program Budget
the cost of proposal writing into your fee. Publication and delivery
of final reports can be a last minute expense that can easily be
overlooked in preliminary budgets.

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11.556 21
 11.Schedule
RESEARCH METHODOLOGY
Your schedule should include the major phases of the project,
their timetables, and the milestones that signify completion of a
phase.
For example, major phases may be
1.exploratory interviews,
2.final research proposal,
3.questionnaire revision,
4.field interviews,
5.editing and coding,
6.data analysis, and
7.report generation.
Each of these phases should have an estimated time schedule and
people assigned to the work.
It may be helpful to you and your sponsor if you chart your
schedule. You can use a Gantt chart. Alternatively, if the project is
large and complex, a critical path method (CPM) of scheduling
may be included. In a CPM chart the nodes represent major
milestones, and the arrows suggest the work needed to get to the
milestone. More than one arrow pointing to a node indicates all
those tasks must be completed before the milestone has been
met.
Usual1y a number is placed along the arrow showing the number
of days or weeks required for that task to be completed. The
pathway from start to end that takes the longest time to complete
is called the critical path, because any delay in an activity along that
path will delay the end of the entire project. An example of a CPM
chart is shown below.
Critical Path: S –1 –3-4-7-8-9-E Time to complete: 40 days
12.Facilities and Special Resources
Often, projects will require special facilities or resources that should
be described in detail. For example, a contract exploratory study
may need specialized facilities for focus group sessions. Computer-
assisted telephone or other interviewing facilities may be required.
13.Project Management
The purpose of the project management section is to show the
sponsor that the research team is organized in a way to do the
project efficiently. A master plan is required for complex projects
to show how the phases will all be brought together. The plan
includes
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22
• The research team’s organization
• Management procedures and controls for executing the
research plan.
Examples of management and technical reports
• Research team relationship with the sponsor
• Financial and legal responsibility
• Management competence
Tables and charts are most helpful in presenting the master plan.
The relationships between researchers and assistants need to be
shown when several researchers are part of the team. Sponsors
must know that the director is an individual capable of leading
the team and being a useful liaison to the sponsor. In addition,
procedures for information processing, record control, and expense
control are critical to large operations and should be shown as part
of the management procedures.
The type and frequency of progress reports should be recorded so
the sponsor can expect to be kept up-to-date and the researchers
can expect to be left alone to do research. The sponsor’s limits on
control during the process should be delineated. Details such as
printing facilities, clerical help, or information-processing
capabilities that are to be provided by the sponsor are discussed.
In addition, right’s to the data, the results, and authority to speak
for the researcher and for the sponsor are included. Payment
frequency and timing are also covered in the master plan. Finally,
proof of financial responsibility and overall management
competence are provided.
14.Bibliography
For all projects that require literature review, a bibliography is
necessary. Use the bibliographic format required by the sponsor.
If none is specified, a standard style manual (e.g., Kate L. Turabian,
A Manual for Writers of Term Papers, Theses, and Dissertations;
Joseph Gibaldi and Walter S. Achtert, MIA Handbook for Writers
of Research Papers; or the Publication Manual of the American
Psychological Association) will provide the details necessary to
prepare the bibliography. Many of these sources also make
suggestions for successful proposal writing.
15.Appendices
Glossary A glossary of terms should be included whenever there
are many words unique to the research topic and not understood
by the general management community. This is a simple section
consisting of terms and definitions. Also, define any acronyms
that you use, even if they are defined within the text.
16.Measurement Instrument
For large projects, it is appropriate to include samples of the
measurement instruments if they are available when you assemble
the proposal. This allows the sponsor to discuss particular changes
in one or more of the instruments. If exploratory work precedes
the selection of the measurement instruments you will not use
this appendix section.
Other Any detail that reinforces the body of the proposal can be
included in an appendix. This includes researcher vitae, budget
details, and lengthy descriptions of special facilities or resources.
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Evaluating the Research Proposal • The research proposal presents a problem, discusses related

RESEARCH METHODOLOGY
Proposals are subjected to formal and informal reviews. The formal research efforts, outlines the data needed for solving the
method has some variations, but its essence is described as follows. problem, and shows the design used to gather and analyze
Before the proposal is received, criteria are established and each is the data.
given weights or points. The proposal is evaluated with a checklist • Proposals are valuable to both the research sponsor and the
of criteria in hand. Points are recorded for each category reflecting researcher. The sponsor uses the proposal to evaluate a
the sponsor’s assessment of how well the proposal meets the research idea.
category’s established criteria. Several people, each of whom is
assigned to a particular section, typically review
Proposal Management Govern Student
long and complex proposals. After the review, types ment
Internal External
the category scores are added to provide a Exp Expl Small Large Large Ter Maste Docto
cumulative total. The proposal with the highest Proposal
lora Small Larg orato scale scale scale m r’s ral
tory scale e ry contra contra contra pape thesis thesis
number of points will win the contract. The Modules
stu study scale contr cts cts cts r
formal method is most likely to be used for dy study acts
competitive government, university, or public Executive
√ √ √ √ √ √
sector grants and also for large-scale contracts. summary
Problem
Small-scale contracts are more prone to √ √ √ √ √ √ √ √ √ √
Statement
informal evaluation. With informal evaluation, Research
√ √ √ √ √ √ √ √ √ √
objectives
the project needs, and thus the criteria, are well Literature
√ √ √ √ √
understood but not usually well documented. review
Importance
In contrast to the formal method, a system of /benefits of
√ √ √ √ √ √
points is not used and the criteria are not study
Research
ranked. The process is more qualitative and Design
√ √ √ √ √ √ √ √ √
impressionistic. In practice, many items Data √ √ √
contribute to a proposal’s acceptance and Analysis
Nature and √ √ √ √ √ √ √
funding. Primarily, the content discussed above form of
must be included to the level of detail required results
Qualificatio √ √ √ √
by the sponsor. Beyond the required modules, n of
there are factors that can quickly eliminate a researchers
Budget √ √ √ √ √ √
proposal from consideration and factors that Schedule √ √ √ √ √ √ √
improve the sponsor’s reception of the Facilities & √ √ √ √ √ √ √
proposal. special
resources
First, the proposal must be neatly presented. Project √ √ √
managemen
Although a proposal produced on a word t
processor and bound with an expensive cover Bibliograph √ √ √ √ √ √
y
will not overcome design or analysis deficiencies, Appendixes √ √ √ √ √
a poorly presented, unclear, or disorganized / glossary
proposal will not get serious attention from of terms
Measureme √ √ √ √
the reviewing sponsors. Second, the proposal’s nt
major topics should be easily found and instrument
logically organized. The reviewer should be able
to page through the proposal to any section of interest. The • The proposal is also a useful tool to ensure the sponsor and
proposal also must meet specific guidelines set by1he sponsoring investigator agrees on the research question.
company or agency. These include budgetary restrictions and • In addition, the completed proposal provides a logical guide
schedule deadlines. for the investigation.
A fourth important aspect is the technical writing style of the • two types of proposals: internal and external. Internal and
proposal. The problem statement must be easily understood. external proposals have a problem-solving orientation. The
The research design should be clearly outlined and the staff of a company generates internal proposals.
methodology explained. The importance/befits of the study must
• External proposals are prepared by an outside firm to obtain
allow the sponsor to see why the research should be funded.
contract research. External proposals emphasize qualifications
Modules to include in Proposals: A Comparison of Management of the researcher, special facilities and resources, and project
Oriented Proposal and Student Proposal
Points to Ponder
• A proposal is an offer to produce a product or render a
service to the potential buyer or sponsor.

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11.556 23
 management aspects such as budgets and schedules.
RESEARCH METHODOLOGY
Case study: A Research Proposal to Crystal Bank
Research The purpose of the study is to analyze various issues pertaining
Purpose to the credit needs of consumers living in certain areas of'
Austin that have branches of Crystal Bank. Crystal Bank is
focused on improving customer satisfaction and Wishes to
undertake a study to continue doing so. Specifically, the
research objectives are to
• Gauge consumer sentiment on the services
provided by various financial institutions;
• Identify areas of improvement among the
services provided by the financial
institutions;
• Determine the type of loans most requested
for / needed by the consumers;
• Identify the important and attractive
attributes of the different types of loans;
• Determine the types of lending institutions
most popular with the consumers;
• Identify the important characteristics that
make a lending institution attractive to the
consumers; and
• Provide a demographic profile of the
consumers.
Research Design The survey research will be conducted by mailing a
questionnaire to a total of 300 consumers living in the areas
served by each of the 15 Austin area branches of Crystal Bank.
The questions cover a wide range of issues including
• Identifying the types of account operated by the
consumer, whether he or she is happy with the
services;
• Obtaining likelihood of the respondent applying for
a specific type of loan in the next 12 months;
• Determining the characteristics of the loan
application and loan repayment that are important to
the respondent; and
• Identifying characteristics of the lending institutions,
which influence the respondent’s choice.
• Finally, it will seek demographic and lifestyle
information about the respondents.
Sample Research Do you currently deal with a financial institution?
Questions --------------- Yes --------------- No
If yes, what type of financial institutions do you deal with?
(Check all that apply)
---------- Savings and Loan ---------------- Bank
----------- Credit Union ---------- Other (Please
specify______)
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24
--------------- Yes --------------- No
If yes, where did you apply for the loan? (Check all that apply)
------------- Savings and Loan ---------------
Credit Union
--------------- Mortgage Company ---------------- Bank
--------------- Other (Please specify_____________)
What type of loans did you apply for? (Check all that apply)
------------ Home purchase ---------------- Automobile
------------ Home repair / remodeling ----------------
Educational
------------ Major appliance purchase ---------------- Personal
------------------ Other (Please specify)
Rank the following factors in decreasing order of importance,
which will influence your choice of lending institution ni
applying for any loan. (1-Most important; 2-Second most
important, and so on)
-------Institution reputation ------- Location of the institution
------ Present relationship with the institution --------Level of
service provided
----------------- Other (Please Specify _____________)
Sample Selection The sampling procedure employed for the project will be
stratified sampling, a technique widely used in such surveys.
Stratified sampling ensures representation of consumers living
near each of the 15 locations of Crystal Bank. The quality of
the mailing list will determine the successful implementation
of stratified sampling.
Data Collection Telephone surveys will be used to gather information.
Statistical Based on the type of scaled response, appropriate statistical
Analysis methods will be used and inferences made. However, given
the type of scales which will be used, a substantial part of the
analysis will focus on frequencies, relative frequencies, and
cross-tabulations.
Project Report A written report will be submitted, and an oral presentation of
the findings can be made by our firm.
Project Cost and The project will be completed within a period of 12 weeks
Schedule from the time the information requirements is are provided by
Crystal Bank to our firm. However this is dependent on the
assumption that the data collection process will be completed
with in a 4-week period. The cost of the project to be
$10,000.00
Case Study: Research Proposal
Repair Process Satisfaction Proposal
ABC Corporation ‘CompleteCare’ Program
Problem Statement
ABC 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.
ABC is currently experiencing a shortage obtained technical
operators in its telephone center. The package courier, contracted
to pick up and deliver customers’ machines to ‘CompleteCare’,
has provided irregular execution ABC has also experienced parts
availability problems for some machine types.
Recent phone logs at the call center show complaints about
‘CompleteCare’ it is unknown how representative these complaints
are and what implications they may have for satisfaction with
ABC products. Management desires information on the program’s
effectiveness and its impact on customer satisfaction to determine
what should-be done to improve the ‘CompleteCare’ program
for ABC product repair and servicing.
Research Objectives
The purpose of this research is to discover the level of satisfaction
with the ‘CompleteCare’ service program. Specifically, we intend
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to identify the component and overall levels of satisfaction with
‘CompleteCare’. Components of the repair process are important
targets for investigation because they reveal:
1. How customer tolerance levels for repair performance affect
overall satisfaction, and
2. Which process components should be immediately
improved to elevate the overall satisfaction of those ABC
customers experiencing product failures.
We will also discover the importance of types of product failure
on customer satisfaction levels.
Importance/Benefits
High levels of user satisfaction translate into positive word of-
mouth product endorsements. These endorsements influence the
purchase outcomes for
1. Friends and relatives and
2. Business associates.
Critical incidents, such as product failures, have the potential to
either undermine existing satisfaction levels or preserve and even
increase the resulting levels of product satisfaction. The outcome
of the episode depends on the quality of the manufacturer’s
response.
An extraordinary response by the manufacturer to such incidents
will preserve and enhance user satisfaction levels to the point that
direct and indirect benefits derived from such programs will justify
their costs.
This research has the potential for connecting to ongoing ABC
customer satisfaction programs and measuring the long-term
effects of ‘CompleteCare’ (and product failure incidents) on
customer satisfaction.
Research Design
Exploration: Qualitative We will augment our knowledge of
‘CompleteCare’ by interviewing the service manager, the call center
manager, and the independent package company’s account
executive. Based on a thorough inventory of CompleteCare’s
internal, external processes, we propose to develop a mail survey.
Questionnaire Design
A self-administered questionnaire (postcard size) offers the most
cost-effective method for securing feedback on the effectiveness
of CompleteCare. The introduction on the postcard will be a
variation of ABC current advertising campaign.
Some questions for this instrument will be based on the’
investigative questions we presented to you previously, and others
will be drawn from the executive interviews. We anticipate a
maximum of 10 questions. A new five-point expectation scale,
compatible with your exiting customer satisfaction scales, is being
designed.
Although we are not convinced that open-ended questions are
appropriate for postcard questionnaires, we understand that you
and Mr. Malraison like them. A comments/suggestions question
will be included. In addition, we will work out a code block that
captures the call center’s reference number, model, and item(s)
serviced.
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11.556
Logistics
RESEARCH METHODOLOGY
The postal arrangements are: box rental, permit, and “business
reply” privileges to be arranged in a few days. The approval for a
reduced postage rate will take one to two weeks. The budget
section itemizes these costs.
Pilot Test
We will test the questionnaire with a small sample of customers
using your tech-line operators. This will contain your costs. We
will then revise the questions and forward them to our graphics
designer for layout. The instrument will then be submitted to
you for final approval.
Evaluation of Non response bias - a random sample of 100
names will be secured from the list of customers who do not
return the questionnaire. Call center records will be used for
establishing the sampling frame. Non responders will be
interviewed on the telephone and their responses compared
statistically to those of the responders.
Data Analysis
We will review the postcards returned and send you a weekly
report listing customers who are dissatisfied (score a “1” or “2”)
with any item of the questionnaire or who submit a negative
comment. This will improve your timeliness in resolving customer
complaints. Each month, we will provide you with a report
consisting of frequencies and category percentages far each
questions. Visual displays of the data will be in bar chart/
histogram form. We propose to include at least one
question dealing with overall satisfaction (with CompleteCare and/
or MindWriter). This Overall question would be regressed on the
individual items to determine each item’s importance. A
performance grid will identify items needing improvement with
an evaluation of priority. Other analyses can be prepared on a time
and materials basis.
The open-ended questions will be summarized and reported by
model code. If you wish, we also can provide content analysis for
these questions.
Results:Deliverables
1. Development and production of a postcard survey. ABC
employees will package the questionnaire with the returned
merchandis.
2. Weekly exception reports (transmitted electronically) listing
customers who met the dissatisfied customer criteria.
3. Monthly reports as described in the data analysis section.
4. An ASCII diskette with each month’s data shipped to Austin
by the fifth working day of each month.
Budget
Card Layout and Printing Based on your card estimate, our designer
will layout and print 2,000 cards in the first run ($500). The
specifications are as follows: 7-point Williamsburg offset hi-bulk
with one-over-one black ink. A gray-scale layer with a ABC or
CompleteCare logo can be positioned under the printed material
at a nominal charge. The two-sided cards measure 4 1/4 by 5 1/2.
This allows us to print four cards per page. The opposite side will
have the business reply logo, postage paid symbol, and address.
25
 Cost Summary It selected Goa-based Photo phone Industries Ltd. Thereafter
RESEARCH METHODOLOGY

Interviews $ 1550.00 there have been several developments for the company.
Travel costs 2500.00 The present position is, however, not as good as the company
would like to see. It is facing severe competition with Kodak and
Questionnaire development 1850.00
Fuji, who have been spending heavily on brand building. Kodak
Equipment/supplies 1325.00 had also established its manufacturing base in India in 1995.
Graphics design 800.00 During the past ten years-1988 to 1997-the market share of Konika
Permit fee (annual) 75.00 has declined. In view of this, Konika is now keen to increase its
Business reply fee (annual) 185.00 market share. It would like to build up its image and strengthen
itself from the grass root level.
Box rental (annual) 35.00
Printing costs 500.00 Questions
Assuming that marketing research can help Konika to achieve its
Data entry (monthly) 430.00
objective, prepare a suitable research proposal for the proposed
Monthly data files (each) 50.00 study.
Monthly reports (each) 1850.00 References
Total start-up costs $ 11150.00 Aaker D A , Kumar V & Day G S - Marketing Research (John
Monthly run costs $ 1030.00 Wiley &Sons Inc, 6th ed.)
• An additional fee of 0.21 per card will be assessed by the Bell J- Doing your Research Project (OU Press, 1993)
post office for business reply mail. At approximately a 30 Kothari C R – Quantitative Techniques (Vikas Publishing House
percent return rate, we estimate the monthly cost to be less 3rd ed.)
than $50.
Levin R I & Rubin DS - Statistics for Management (Prentice Hall
Practice work of India, 2002)
Case Study 1-Sony India 1 Nargundkar R – Marketing Research Text and Cases (Tata McGraw-
Sony, a multinational corporation based in Tokyo, Japan, stepped Hill 2002)
into India in early 1995, in the post liberalization period. Within a
Notes
couple of months in the same year, it set up its manufacturing
unit. The company makes its presence felt in India through Sony
Entertain Television, Sony Music and Sony India. While the first
two are comfortably placed in their niche markets, it is the third
which is expected to bring in all those exciting Sony digital products.
Although the government has cleared its plans to manufacture its
various products, it has not been smooth sailing for Sony India.
Sony India is facing some major problems, one of which is the
emergence of a grey market for its brands. While it is targeting its
sales around Rs 1050 crores by the turn of the century, it has to
have a better understanding of India’s economic, social and political
environment.
Sony India would like to develop itself as its parent company
developed its business units in United States (New York), Europe
(Cologne), and Asia (Singapore). Since it is a multinational company
manufacturing multi-products, it has a challenging task.
Questions
1. Do you think research can play an important role in the
development of Sony India?
2. If Sony India takes recourse to research, should it set up “in-
house” research or hire the services of marketing research
agencies?
3. If the choice is in favour of marketing research agency, what
factors should it consider while selecting a particular agency?
Case Study 2-Konika Corporation
In 1988, Japan-based Konika Corporation, decided to have a
representative in India and started scouting around for a distributor.

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26 11.556

LESSON 4:
TUTORIALS
1. What, if any, are the differences between solicited and
unsolicited proposals?
2. Select a research report from a management journal. Outline
a proposal for the research as if it had not yet been
performed. Make estimates of time and costs.
3. You are the new manager of market intelligence in a rapidly
expanding software firm. Many product managers and
corporate officers have requested market surveys from you
on various products. Design a form for a research proposal
that can be completed easily by your research staff and the
sponsoring manager. Discuss how your form improves
communication of the research objectives between the
manager and the researcher.
4. What modules would you suggest be included in a proposal
for each of the following cases?
a. The president of your company has asked for a study
of the company’s health benefits plan and for a
comparison of it to other firms’ plans.
b. You are competing for a university-sponsored student
research grant, awarded to seniors and graduate
students.
c. A bank is interested in understanding the population
trends by location so that it can plan its new branch
locations for the next five years. They contacted you for
a proposal.
d. You are interested in starting a new research service,
providing monthly information about the use of
recyclable items in your state. The proposal will go to
several city and county planning agencies, independent
waste service providers, and independent and
government landfill providers.
4. Consider the new trends in desktop publishing, multimedia
computer authoring and display capabilities, and inexpensive
video taping and playback possibilities. How might these be
used to enhance research proposals? Give several examples
of appropriate use.
5. You are the manager of a research department in a large
department store chain. Develop a list of criteria for
evaluating the types of research activities listed below.
Include a point scale and weighting algorithm.
a. Market research
b. Advertising effectiveness
c. Employee opinion surveys
d. Credit card operations
e. Computer service effectiveness at the individual store
level
6. Write a research proposal on the following case study
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RESEARCH METHODOLOGY
Case Study- Pillsbury Presses Flour Power in India
The Pillsbury Doughboy has landed in India to pitch a product
that he had just abandoned in America: plain old flour. Pillsbury’s
recent products sold in the United States have diversified from
plain flour to frozen cookie dough and microwave pizzas. In
India, however, selling packaged flour is almost revolutionary.
This is due to the fact that most Indian housewives still buy raw
wheat in bulk. They then clean it by hand, store it in huge metal
hampers, and regularly carry some to a neighborhood mill, where
it is ground between two stones.
Pillsbury is onto a potentially huge business. India consumes
about 69 million tons of wheat a year, second only to China. (The
U.S. consumes about 26 million tons.) Much of India’s wheat
ends up as roti, a flat bread prepared on a griddle that accompanies
almost every meal. In a national where people traditionally eat
with their hands, roti is the spoon. Nevertheless, fewer than 1
percent of all whole-wheat flour is sold prepackaged. Indian’s
climatic extremes and deplorable rods make it difficult to maintain
freshness from mill to warehouse, let alone on store shelves.
Starting a flour operation meant turning back the clock for Pillsbury.
Though it was born as a U.S. flour-milling company 130 years ago,
it exited from that business in the early 1990s to focus on products
such as frozen baked goods and ice cream. Pillsbury thought of
introducing high-value product when it first explored India. But
it quickly learned that most Indians don’t have enough disposable
income for such fare. Pillsbury is betting that flour will generate
enough sales volume to compensate for the razorthin margin.
Marketing managers climbed into the attics where housewives
store their wheat and accompanied them to their tiny neighborhood
flour mills. Pillsbury had hoped to establish contract with existing
mills, but inspectors found hygiene and safety at some properties
to be appalling.
Many focus groups and lab test later, Pillsbury came up with its
packaged wheat blend, Pillsbury Chaki Fresh Atta. Responding to
consumers’ biggest concern, Pillsbury pitches the flour with a
promise that rotis made from it will stay soft “for six hours.” The
company declines to say what ingredients keep the flour tasting
fresh, though it say there are no artificial preservatives. The
packaging is made of a robust plastic laminate that costs about
two and a half times as much as the paper wrappers typically used
in the United States.
The value of the packaged-flour market in India is $7.14 million.
It has expanded by about 45 percent a year since 1997, according to
industry estimates. It is too early to declare the Doughboy’s foray
into India a success. The market is still minuscule, and gains will
largely depend on how quickly Indian housewives embrace
convenience. Several local companies familiar with Indian tastes
have launched branded flour in recent years, only to flounder.
27
RESEARCH METHODOLOGY
LESSON 5:
RESEARCH DESIGN & EXPERIMENTAL DESIGNS
Objective
In this lesson, you will learn who to design your research
project.Research design is the important step in any research project.
It ensures the systematic and timely completion of your project.
After completion of this lesson you will be able to-
1. Design plan for collection of data
2. Design plan for measurement
3. Design plan for the analysis of data
Meaning of Research Design
Research design is the plan, structure and strategy of investigation
conceived so as to obtain answers to research questions and to
control variance. (Kerlinger)
A research is the specification of methods and procedures for
acquiring the information needed. It is the overall operational
pattern or framework of the project that stipulates what
information is to be collected from which sources by what
proceedures. (Green and Tull).
The decisions regarding what, where, when, how much, by what
means concerning a research project constitute a research design.
“A research design is the arrangement of conditions for collection
and analysis of data in a manner that aims to combine relevance to
the research purpose with economy in procedure”.
In fact, the research design is the conceptual structure within which
research is conducted; it constitutes the blueprint for the collection,
measurement and analysis of data. As such the design includes an
outline of what the researcher will do from writing the hypothesis
and its operational implications to the final analysis of data. More
explicitly, the design decisions happen to be in respect of:
• What is the study about?
• Why is the study being made?
• Where will the study be carried out?
• What type of data is required?
• Where can the required data be found?
• What periods of time will the study include?
• What will be the sample design?
• What techniques of data collection will be used?
• How will the data be analysed?
• In what style will the report be prepared?
Keeping in view the above stated design decisions, we may split
the Overall research design into the following parts.
• ·Sampling Design which deals with the method of selecting
items It be observed for the given study;
• Observational design which relates to the conditions under
which the observations are to be made;
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• Statistical design which concerns with the question of how
many items are to be observed and how the information and
data gathered are to be analysed;
• Operational design which deals with the techniques by
which the procedures specified in the sampling, statistical and
observational designs can be carried out.
We can state the important features of a research design as under:
Essentials of research Designs
• The design is an activity-and-time-based plan
• The design is always based on the research question
• The design guides the selection of sources and types of
information
• The design is a frame work for specifying the relationships
among the study’s variables
• The design outlines procedure for every research activity
Need for Research Design (Why Research design is required?)
Research design is needed because it facilitates the smooth sailing
of the various research operations, thereby making research as
efficient as possible yielding maximal information with minimal
expenditure of effort, time and money.
For example, economical and attractive construction of house we
need a blueprint (or what is commonly called the map of the
house) well thought out and prepared by an expert architect,
similarly we need a research design or a plan in advance of data
collection and analysis for our research project.
Research design stands for advance planning of the methods to
be adopted for collecting the relevant data and the techniques to
be used in their analysis.
Concepts in Research Design
Operational Definitions-is a definition stated in trace of specific
testing criteria or operations.
Variable- this is used as a synonym for construct or the property
being.
Independent-A variable antecedents to dependent variable is called
independent variable
Dependent-If one variable depends upon or is a consequence of
other variable, it is a dependent variable.
Proposition-is a statement about concepts that may be judged as
true or false if it refers to observable phenomenon.
When a proposition is formulated for empirical testing it is called
a hypothesis. The research hypothesis is a predictive statement
that relatives an independent variable to deepens variable.
Continuous Variable- A variable which can assume any numerical
value within a specific range. Value ever in decimal points e.g. age.
Discrete Variable – A variable for which the individual values
fall on the scale only no of children
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Independent Variable Dependent Variable
Presumed cause Presumed effect
Stimulus Response
Predicted from …….. Predicted to ………
Antecedent Consequence
Manipulated Measured outcome
Extraneous Variable- Some independent variables are not related
to purpose of study, but may affect dependent variables are turned
as extraneous variable.
l.e. the researcher wants to test the hypothesis that there is a
relationship between children’s gains in social studies achievement
and self their self concepts.
Independent Variable-Self concept dependent variable – social
studies echo intelligence may also effect social studies achievement
since it is not related to purpose of studies, intravenous variable.
Control -Minimize effect of extraneous independent variable. In
experiment at researches, ‘control’ is used to refer to restrain
experimental conditions.
Confounded Relationship-When the dependent variable is not
free from influence of extraneous variables(s), the relation b/w
independent variable and dependent variable is said to be
confounded by an extraneous variable.
Experimental and non-experimental hypothesis testing
research: Research in which the independent variable is
manipulated its turned ‘experimental hypothesis-testing’ research
and a research in which an independent variable is not manipulated
is called-non–experimental hypotenuse-testing research.
Experimental & Control Group: When a group is exposed to
usual conditions, it is traced as ‘control gap’ but when the gap is
exposed to some moral or special condition, it is termed as
‘experimental gap’.
Treatment: the different conditions under which experimental
and control gaps are put are usually refereed to as ‘treatments’.
Different Research Design
Different research designs can be conveniently described if we
categorize them as:
1. Research design in case of exploratory research studies;
2. Research design in case of descriptive and diagnostic research
studies, and
3. Research design in case of hypothesis-testing research
studies.
We take up each category separately
1: Research design in case of exploratory research
studies:As you know from previous lessons that,
exploratory research studies are also termed as formulative
research studies. The main purpose of such studies is that
of formulating a problem for more precise investigation or
of developing the working hypotheses from an operational
point of view.
The major emphasis in such studies is on the discovery of ideas
and insights. The research design appropriate for such studies
must be flexible enough to provide opportunity for considering
different aspects of a problem under study. Inbuilt flexibility in
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research design is needed because the research problem, broadly
RESEARCH METHODOLOGY
defined initially, is transformed into one with more precise meaning
in exploratory studies, which fact may necessitate changes in the
research procedure for gathering relevant data.
Generally, the following three methods in the context of research
design for such studies are talked about:
a. the survey of concerning literature;
b. the experience survey and
c. the analysis of ‘insight-stimulating’.
We let us discuss each of these methods -
a. Survey of concerning literature-This method happens to
be the most simple and fruitful method of formulating
precisely the research problem or developing hypothesis.
Hypotheses stated by earlier works may be reviewed and their
usefulness be evaluated as a basis for further research.
It may also be considered whether the already stated hypotheses
suggest new hypothesis. In this way the researcher should review
and build upon the work already done by others, but in cases
where hypotheses have not yet been formulated, his task is to
review the available material for deriving the relevant hypotheses
from it. Besides, the bibliographical survey of studies, already
made in one’s area of interest may as well be made by the researcher
for precisely formulating the problem.
He should also make an attempt to apply concepts and theories
developed in different research contexts to the area in which he is
himself working. Sometimes the works of creative writers also
provide a fertile ground for hypothesis-formulation and as such
may be looked into by the researcher.
b. Experience surveymeans the survey of people who have
had practical experience with the problem to be studied. The
object of such a survey is to obtain insight into the
relationships between variables and new ideas relating to the
research problem. For such a survey people who are
competent and can contribute new ideas may be carefully
selected as respondents to ensure a representation of
different types of experience.
The investigator may then interview the respondents so selected.
The researcher must prepare an interview schedule for the
systematic questioning of informants. But the Interview must
ensure flexibility in the sense that the respondents should be
allowed to raise issues and questions that the investigator has not
previously considered.
Generally, the experience-collecting interview is likely to be long
and may last for few hours. Hence, it is often considered desirable
to send a copy of the questions to be discussed to the respondents
well in advance.
Thus, an experience survey may enable the research to define
problem more concisely and help in the formulation of the research
hypothesis. This survey may as well provide information about
the practical possibilities for doing different types of research.
c. Analysis of ‘insight-stimulating’-It is also a fruitful
method for suggest hypothesis for research. It is particularly
suitable in areas where there is little experience to serve as a
guide. This method consists of the intensive study of
selected instances of the phenomenon in which one is
29
 interested. For this purpose the existing records, if any, may
RESEARCH METHODOLOGY
be examined, the unstructured interviewing may take place,
or some other approach may be adopted. Attitude of the
investigator, the intensity of the study and the ability of the
researcher to draw together diverse information into a
unified interpretation are the main features, which make this
method an appropriate procedure for evoking insights.
Now, what sort of examples is to be selected and studied?
There is no clear-cut answer to it. Experience indicates that for
particular problems certain types of instances are more appropriate
than others. One can mention few examples of ‘insight-
stimulating’ cases such as the reactions of strangers, the reactions
of marginal individuals, the study of individuals who are in
transition from one stage to another, the reactions of individuals
from different social strata and the like.
Thus, in an exploratory or formulative research study which merely
leads to insights or hypotheses, whatever method or research
design outlined above is adopted, the only thing essential is that
it must continue to remain flexible so that many different facets
of a problem may be considered as and when they arise and come
to the notice of the researcher.
2. Research design in case of descriptive and diagnostic
research studies: Now another type of research studies are -
Descriptive research studies, those studies which are
concerned with describing the characteristics of a particular
individual, or of a group whereas diagnostic research studies
determine the frequency with which something occurs or its
association with something else.
The studies concerning whether certain variables are associated are
examples, diagnostic research studies, As against this, studies
concerned with specific predication, with narration of facts and
characteristics concerning individuals or group or situation are all
examples of descriptive research studies.
Most of The Group or Search Comes Under this Category
From the point of view of the research design, the descriptive as
well as diagnostic studies share common requirement, and as
such we may group together these two types of research studies.
In descriptive as well as in diagnostic studies, the researcher must
be able to define clearly, what he wants to measure and must find
adequate methods for measuring it along with a clear cut definition
of population he wants to study. Since the aim is to obtain
complete and accurate information the said studies, the procedure
to be used must be carefully planned.
The research design must make enough provision for protection
against bias and must maximize reliability, with due concern for
the economical completion of research study.
The design in such studies must be rigid and not flexible and
must focus attention on the following:
a. Formulating the objective of the study
b. Designing the methods of data collection
c. Selecting the sample (how much material will be needed?)
d. Collecting the data (where can the required data be found and
with what time period should the data be related?)
e. Processing and analysing the data.
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f. Reporting the findings.
3. Research design in case of hypothesis-testing research studies:
Hypothesis-testing research studies (generally known as
experimental studies) are those where the researcher tests the
hypotheses of causal relationships between variables.
Such studies require procedures that will not only reduce bias and
increase reliability, but will permit drawing inferences about causality.
Usually experiments meet this requirement. Hence, when we talk
of research design in such studies, we often mean the design of
experiments. Professor R.A. Fisher’s name is associated with
experimental designs. The study of experimental designs has its
origin in agricultural research. Professor Fisher found that by
dividing agricultural fields or plots into different blocks and then
by conducting experiments in each of these blocks, whatever
information is collected and inferences drawn from them, happens
to be more reliable.
This fact inspired him to develop certain experimental designs for
testing hypotheses concerning scientific investigations. Today, the
experimental designs are being used in research relating to
phenomena of several disciplines. Now let us discuss the basic
principles of experimental designs.
Basic Principles of Experimental Designs
There are three principles of experimental designs:
1. Principle of Replication;
2. Principle of Randomization
3. Principle of Local Control
Now let us discuss each one of these experimental design
Principle of Replication
In this design, the experiment should be repeated more than
once. Thus, each treatment is applied in many experimental units
instead of one. By doing so the statistical accuracy of the
experiments is increased. For example, suppose we are to examine
the effect of two varieties of rice.
For this purpose we may divide the field into two parts and grow
one variety in one part and the other variety in the other part. We
can then compare the yield of the two parts and draw conclusion
on that basis. But if we are to apply the principle of replication to
this experiment, then we first divide the field into several parts,
grow one variety in half of these parts and the other variety in the
remaining parts. We can then collect the data of yield of the two
varieties and draw conclusion by comparing the same.
The result so obtained will be more reliable in comparison to the
conclusion we draw without applying the principle of replication.
The entire experiment can even be repeated several times for better
results.
Conceptually replication does not present any difficulty, but
computationally it does. For example, if, an experiment requiring
a two-way analysis of variance is replicated, it will then require a
three-way analysis of variance since replication itself may be a
source of variation in the data. However, it should be remembered
that replication is introduced in order to increase the precision of
a study; that is to say, to increase the accuracy with which the main
effects and interactions can be estimated.
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Principle of Randomization
This principle indicates that we should design or plan the
experiment in such a way that the variations caused by extraneous
factor can all be combined under the general heading of “chance.”
For example - if grow one variety of rice, say, in the first half of
the parts of a field and the other variety is grown in the other half,
then it is just possible that the soil fertility may be different in the
first half in comparison to the other half. If this is so our results
would not be realistic. In such a situation, we may assign the
variety of rice to be grown in different parts of the field on the
basis of some variety ‘sampling technique, i.e., we may apply
randomization principle and random ourselves against the effects
of the extraneous factors (soil fertility processes in the given case.
The Principle of Local Control
is another important principle of experimental designs. Under it
the extraneous factor, the known source of variability, is made to
vary deliberately over as wide a range as necessary and this needs to
be done in such a way that the variability it causes can be measured
and hence eliminated from the experimental error.
This means that we should plan the experiment in a manner that
we can perform a two-way analysis of variance, in which the total
variability of the data is divided into three components attributed
to treatments (varieties of rice in our case), the extraneous factor
(soil fertility in our case) and experimental error.
In other words, according to the principle of local control, we first
divide the field into several homogeneous parts, known as blocks,
and then each such block is divided into parts equal to the number
of treatments. Then the treatments are randomly assigned to
these parts of a block.
Important Experimental Designs
Experimental design refers to the framework or structure of an
experiment and such there are several experimental designs. We
can classify experimental designs into two broad categories. viz.,
informal experimental designs and formal experimental designs.
Informal experimental designs are designs that normally use a
less sophisticated form of analysis based on differences in
magnitudes, whereas formal experimental designs offer relatively
more control and use precise statistical procedures for analysis.
Important experimental designs are as follows:
a. Informal experimental designs:
I. Before-and-after without control design.
II. After-only with control design.
III. Before-and-after with control design.
b.Formal experimental designs:
i. Completely randomized design (C. R. design)
ii. Randomized block design (R. B. design)
iii. Latin square design (L.S. design).
iv. Factorial designs.
We may briefly discuss with each of the above stated informal as
well as formal experimental designs.
i. Before-and-after without Control Design: In such a
design a single test group or area is selected and the
dependent variable is measured before the introduction of
the treatment The treatment is then introduced and the
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dependent variable is measured again after the treatment has
RESEARCH METHODOLOGY
been introduced.
The effect of the treatment would be equal to the level - of the
phenomenon after the treatment minus the level of the
phenomenon before the treatment. The design can be represented
thus:
The main difficulty of such a design is that with the passage of
time considerable extraneous variations may be there in its
treatment effect.
ii. After-only with Control Design: In this design two groups
or areas (test area and control area) are selected and the
treatment is introduced into the test area only. The
dependent variable is then measured in both the areas at the
same time. Treatment impact is assessed by subtracting the
value of the dependent variable in the control area from its
value in the test area. This can be exhibited in the following
form:
The basic assumption in such a design is that the two areas are
identical with respect to their behaviour towards the phenomenon
considered. If this assumption is not true, there is the possibility
of extraneous variation entering into the treatment effect. However,
data can be collected in such a design without the introduction of
problems with the passage of time. In this respect this design is
superior to before-and-after without control design.
iii. Before-and-after with control design:In this design two
areas are selected and the dependent- variable is measured in
both the areas for an identical time-period before the
treatment. The treatment is then introduced into the test area
only, and the dependent variable is measured in both for an
identical time-period after the introduction of the treatment
The treatment effect is determined by subtracting the change
in the dependent variable in the control area from the change
in the dependent variable in test area. This design can be
shown in this way:
This design is superior to the above two designs for the simple
reason that it avoids extraneous variation resulting both from the
passage of time and from non-comparability of the test and control
areas. But at times, due to lack of historical data, time or a
comparable control area, we should prefer to select one of the first
two informal designs stated above.
iv. Completely randomized design (C.R. design) – It
involves only two principles viz., the principle of replication
and the principle of randomization of experimental designs.
It is the simplest possible design and its procedure of
analysis is also easier. The essential characteristic of this
design is that subjects are randomly assigned to experimental
treatments (or vice-versa).
For Example - If we have 10 subjects and if we wish to test 5
under treatment A and 5 under treatment B, the randomization
process gives every possible group of 5 subjects selected from a
set of 10 an equal opportunity of being assigned to treatment A
and treatment B. One-way analysis of variance (or one-way
ANOVA) is used to analyse such a design.
Such a design is generally used when experimental areas happen to
be homogeneous. Technically, when all the variations due to
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 uncontrolled extraneous factors are included under the heading
RESEARCH METHODOLOGY

of chance variation, we refer to the design of experiment as C. R.

design.
We can present a brief description of the two forms of such a
design is given below.
Two-group Simple Randomized Design
In a two-group simple randomized design, first of all the
population is defined and then from the population a sample is
selected randomly. Further, requirement of this design is that
items, after being selected randomly from the population, be
randomly assigned to the experimental and control groups (such
random assignment of items to two groups is technically described
as principle of randomization). Thus, this design yields two
groups as representatives of the population.
Since in the simple randomized design the elements constituting
the sample are randomly drawn from the same population and
randomly assigned to the experimental and control groups, it
becomes possible to draw conclusions on the basis of samples
applicable for the population. The two groups (experimental and
control groups) of such a design are given different treatments of
the independent variable. This design of experiment is quite
common in research studies concerning behavioural sciences. The
merit of such a design is that it is simple and randomizes the
differences among the sample items. But the limitation of it is
that the individual differences among those conducting the
treatments are not eliminated, i.e., it does not control the extraneous
variable and as such the result of the experiment may not depict a
correct picture.
This can be illustrated by taking an example. From the diagram it is clear that there are two populations in the
Example replication design. The sample is taken randomly from the
Suppose the researcher wants to compare two groups of students population available for study - and is randomly assigned to, say,
who have been randomly selected and randomly assigned. Two four experimental and four control groups. Similarly, sample is
different treatments viz., the usual training and the specialised taken randomly from the population available to conduct
training are being given to the two groups. The researcher experiments (because of the eight groups eight such individuals
hypothesises greater gains for the group receiving specialised be selected) and the eight individuals so selected should be
training. To determine this, he tests each group before and after randomly assigned to the eight groups. Generally, equal number
the training, and then compares the amount of gain for the two of items is put in each group so that the size of the group is not
groups to accept or reject his hypothesis. likely to affect the results of the study. Variables relating to both
population characteristics are assumed to be randomly distributed
among the two groups. Thus, this random replication design is,
Random replication design: The limitation of the two-group
in fact, an extension of the two-group simple randomized design.
randomized design is usually eliminated within the random
replication design. In the example we just discuss, the teacher v. Randomized block design (R.B. design)-It is an improvement
differences on the dependent variable were ignored, i.e., the over the C.R design. In the RB, design the principle of local
extraneous variable was not controlled. But in a random control can be applied along with the other two principles of
replications design, the effect of such differences are minimised experimental designs. In the R.B. design, subjects are first
(or reduced) by providing a number of repetitions for each divided into groups, known as blocks, such that within each
treatment. Each repetition is technically called a ‘replication’. group the subjects are relatively homogeneous in respect to
Random replication design serves two purposes viz., it some selected variable.
provides controls for the differential effects of the extraneous The variable selected for grouping the subjects is one that is
independent variables and secondly, it randomizes any indi- believed to be related to the measures to be obtained in -
vidual differences among those conducting the treatments. respect of the dependent variable. The number of subjects
Diagrammatically we can illustrate the random replications in a given block would be equal the number of treatments
design thus (Diagram given Below) and one subject in each block would be randomly assigned
to each treatment.
The RB. design is analysed by the two-way analysis of
variance (two-way ANOVA) technique.

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32 11.556
 Let us understand the RB design with the help of an The above diagram clearly shows that in a L.S. design the

RESEARCH METHODOLOGY
example. field is divided into as many blocks as there are varieties of
Suppose four different forms of a standardized test in fertilizers and then each block is again divided into as many
statistics were given to each of five students (selected one parts as there are varieties of fertilizers in such a way that each
from each of the five I.Q. blocks) of the fertilizer variety is used in each of the block (whether
column-wise or row-wise) only once. The analysis of the L.
Very low I Q Low I.Q. Average I.Q. High I.Q. Very HighI.Q.
S. design is very similar to the two-way ANOV A technique.
Student A Student B Student C Student D
The merit of this experimental design is that it enables differences
Student E
in fertility gradients in the field to be eliminated in comparison to
Form 1 82 67 57 71 73 the effects of different varieties of fertilizers on the yield of the
Form 2 90 68 54 70 81 crop. But this design suffers from one limitation, and it is that
Form 3 86 73 51 69 84 although each row and each column represents equally all fertilizer
varieties, there may be considerable difference in the row and
Form 4 93 75 60 68 75
column means both up and across the field. This, in other words,
If each student separately randomized the order in which he means that in L.S. design we must assume that there is no
or she took the four tests (by using random numbers or interaction between treatments and blocking factors.
some similar device), we refer to the design of this
This defect can, however, be removed by taking the means of
experiment as a R.B. design. The purpose of this
rows and columns equal to the field mean by adjusting the results.
randomization is to take care of such possible extraneous
Another limitation of this design is that it requires number of
factors (say as fatigue) or perhaps the experience gained from
rows, columns and treatments to be equal. This reduces the utility
repeatedly taking the test.
of this design. In case of (2 x 2) L. S. design, there are no degrees
6 Latin squares design (L. S. design) - It is an experimental design of freedom available for the mean square error and hence the
very frequently used in agricultural research. The conditions design cannot be used. If treatments are 10 or more, than each
under which agricultural investigations are carried out are row and each column will be larger in size so that rows and columns
different from those in other studies for nature plays an may not be homogeneous. This may make the application of the
important role in agriculture. principle of local control ineffective. Therefore, L.S. design of
For example, an experiment has to be made through which the orders (5 x 5) to (9 X 9) are generally used.
effects of five different varieties of fertilizers on the yield of a 7. Factorial designs: Factorial designs are used in experiments
certain crop, say wheat, is to be judged. In such a case the varying where the effects of varying more than one factor are to be
fertility of the soil in different blocks in which the experiment has determined. They are specially important in several economic
to be performed must be taken into consideration; otherwise the and social phenomena where usually a large number of
results obtained may not be very dependable because the output factors affect a particular problem. Factorial designs can be of
happens to be the effect not only of fertilizers, but it may also be two types;
the effect of fertility of soil. Similarly, there may be the impact of
i. Simple factorial designs, and
varying seeds on the yield. To overcome such difficulties, the L.S
design is used when there are two major extraneous factors such ii. Complex factorial designs.
as the varying soil fertility and varying seeds. We take them separately.
The Latin-square design is one wherein each fertilizer, in our Simple Factorial Designs
example, appears five times but is used only once in each row and In case of simple factorial designs, we consider the effects of
in each column of the design. In other words, the treatments in a varying two factors on the dependent variable, but when an
L. S. design are so allocated among the plots that no treatment experiment is done with more than two factors, we use complex
occurs more than once in anyone row or anyone column. The two factorial designs. Simple factorial design is also termed as ‘two-
blocking factors may be represented through rows and columns factor-factorial design’, whereas complex factorial design is known
(one through rows and the other through columns). The following as ‘multi-factor-factorial design’. Simple factorial design may either
is a diagrammatic form of such a design in respect of, say, five be a 2 x 2 simple factorial design, or it may be, say, 3 x 4 or 5 X 3 or
types of fertilizers, viz., A, B, C, D and E and the two blocking the like type of simple factorial design. We can design some simple
(actors viz., the varying soil fertility and the varying seeds: factorial designs with this example.
Fertility Level Example
I II III (2 x 2 simple factorial design).
IV V A 2 x 2 simple factorial design can graphically be design as follows:
X1 A B C D E
In this design the extraneous variable to be controlled by
X2 B C D E A homogeneity is called the control variable and the independent
X3 C D E A B variable, which is manipulated, is called the experimental variable.
X4 D E A B C Then there are two treatments of the experimental variable and
X5 E A B C D two levels of the control variable. As such there are four cells into
which the sample is divided. Each of the four combinations would

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 provide one treatment or experimental condition. Subjects are
RESEARCH METHODOLOGY
assigned at random to each treatment in the same manner as in a
randomized group design.
The means for different cells may be obtained along with the
means for different rows and columns. Means of different cells
represent the mean scores for the dependent variable and the
column means in the given design are termed the main effect for
treatments without taking into account any differential effect that
is due to the level of the control variable. Similarly, the row means
in the said design are termed the main effects for levels without
regard to treatment Thus, through this design we can study the
main effects of treatments as well ‘as the main effects of levels.
ii. Complex factorial designs: Experiments with more than two
factors at a time involve the use of complex factorial designs. A
design, which considers three or more independent variables
simultaneously, is called a complex factorial design. In case of
three factors with one experimental variable having two
treatments and two control variables, each one of which having
two levels, the design used will be termed 2 x 2 x 2 complex
factorial design which will contain a total of eight cells as shown
below.
2 x 2 x 2 Complex Factorial Design
Experimental Variable
Treatment A Treatment B
Control Variable 2Level - IControl Variable 2Level - II
Control Variable 2Level – I Control Variable 2Level -II
Control Variable Level - ICell 1 Cell 3 Cell 5 Cell 7
Level – II Cell 2 Cell 4 Cell 6 Cell 8
You can understand this design better using 3 – D representation
given below.
From this design it is possible to determine the main effects for
three variables i.e., one experimental and two control variables.
The researcher can also determine the interactions between each
possible pair of variables (such interactions are called ‘First order
interactions’) and interaction between variable taken in triplets
(such interactions are called Second Order interactions). In case of
a 2 X 2 X 2 design, the further given first order interactions arc
possible.
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Points to Ponder
• There are several research designs and the researcher must
decide in advance of collection and analysis of data as to
which design would prove to be more appropriate for his
research project.
• Consideration of the following activities is essential for the
execution of a well-planned experiments
• Select relevant variable for testing
• Specify the level of treatment
• Control the environment and extraneous factors
• Choose an experimental design suited to the
hypothesis
• Select and assign subjects to groups
• Pilot-test, revise, and conduct the final test
• Analyze the data
• He must give due weight to various points such as the-
• Type of universe and its nature,
• The objective of his study,
• The source list or the sampling frame,
• Desired standard of accuracy
Practice Work -Identify the types of research design in each study
Case 1
You work for 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, 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.
Case 2
You are the business manager for a large group of physicians
specializing in nuclear medicine and imaging. A prominent heath
insurance organization has contacted you to promote a new cost
containment program. The doctors’ committee to whom you
will make a recommendation will have a narrow enrollment
window for their decision. If they choose to join, they will agree
to a reduced fee schedule in exchange for easier filing procedures,
quicker reimbursement, and listing on a physician’ referral network.
If they decline, they will continue to deal with their patients and
the insurance carrier in the current manner. You begin your
investigation by mining data from patient files to learn how many
are using this carrier, frequency of care visits, complexity of filings,
and so on, You then consult insurance industry data to discover
how many potential patients in your area use this care plan or
similar care plans with alternative insurance carriers, and the
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likelihood of a patient choosing or switching doctors to find one Phase 3

RESEARCH METHODOLOGY
that subscribes to the proposed program. You attempt to confirm It is evident that the target alumni can easily afford a retirement
your data with information from professional and association community as proposed. The third phase of the study is to explain
journals. Based on this information, you develop a profile that the characteristics of alumni who would be interested in a
details the number of patients, overhead, and potential revenue university-related retirement community. For this phase, you
realized by choosing to join the plan. engage the American Association of Retired Persons (AARP) and
a retirement community developer. In addition, you search for
Case 3
information on senior citizens from the federal government. From
A paint manufacturer is having trouble maintaining profits. The
the developer you learn what characteristics of retirement
owner believes inventory management is a weak area of the
community planning and construction are most attractive to
company’s operations. In this industry, the many paint colors,
retirees. From AARP you learn the main service and features that
types of paint, and container sizes make it easy for a firm to
potential retirees look for in a retirement community. From the
accumulate large inventories and still be unable to fill customer
government publications you learn regulations and
orders. The owner asks you to make recommendations. You look
recommendations for operating retirement communities and a
into the present warehousing and shipping operations and find
full range of descriptive information on the typical retirement
excessive sales losses and delivery delays because of out-of-stock
community dweller. You make an extensive report to both the
conditions. And informal poll of customers confirms you
alumni director and the university president. The report covers
impression. You suspect the present inventory database and
the number of eligible alumni, their social and economic standings,
reporting system do not provide the prompt, usable information
and the characteristics of those who would be attracted by the
needed for appropriate production decisions.
retirement community:
Based on this supposition, you familiarize yourself with the latest
inventory management techniques in a local college library. You Phase 4
ask the warehouse manager to take an accurate inventory, and you The report excites the university president. She asks for one
review the incoming orders for the last year. In addition, the owner additional phase to be completed. She needs to predict the number
shows you the production runs of the last year and his method of alumni who would be attracted to the project so she can
for assessing the need for a particular color or paint type. adequately plan the size of the community. At this point, you call
on the business college’s research methods class for help in
Modeling the last year of business using production, order, and
designing a questionnaire for the alumni. By providing telephones
inventory management techniques, you choose the method that
and funding, you arrange for the class to conduct a survey among
provides the best theoretical profit. You run a pilot line using the
a random sample of the eligible alumni population. In addition,
new control methodology. After two months, the data show a
you have the class devise a second questionnaire for alumni who
much lower inventory and a higher order fulfillment rate. You
will become eligible in the next 10 years. Using the data collected,
recommend that the owner adopt the new inventory method.
you can predict the initial demand for the community and estimate
Case 4 the growth in demand over the next 10 year. You submit your
You work for the alumni association of a private university. The final report to the director and the president.
university is eager to develop closer ties with its aging alumni, to
References
provide strong stimuli to encourage increased donations, and to
Aaker D A , Kumar V & Day G S - Marketing Research (John
induce older, nontraditional students to return to the university
Wiley &Sons Inc, 6th ed.)Kothari C R – Quantitative Techniques
to supplement enrollment. The president’s office is considering
(Vikas Publishing House 3rd ed.)
starting a retirement community geared toward university alumni
and asks your association to assess the attractiveness of the Levin R I & Rubin DS - Statistics for Management (Prentice Hall
proposal from an alumni viewpoint. Your director asks you to of India, 2002)
divide the study into four parts.
Phase 1
First you are to report on the number of alumni who are in the
appropriate age bracket, the rate of new entries per year, and the
actuarial statistics for the group. This information allows the
director to assess whether the project is worth continuing.
Phase 2
Your early results reveal there are sufficient alumni to make the
project feasible. The next step in the study is to describe the social
and economic characteristics of the target alumni group. You
review gift statistics, analyze job titles, and assess home location
and values. In addition, you review files from the last five years to
see how alumni responded when they were asked about their in
come bracket. You are able to describe the alumni group for your
director when you finish.

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RESEARCH METHODOLOGY

LESSON 6:
TUTORIAL

Q1.Compare the advantages of experiment with

advantages of survey and observational methods.
Q2.A lighting company seeks to study the percentages of defective
glass shells being manufactured. Theoretically, the percentages
of defectives are dependent on temperature, humidity, and the
level of artisan expertise. Complete historical data are available
for the following variables on a daily basis for a year:
a. Temperature ( high, normal, low)
b. Humidity (high, normal, low)
c. Artisan expertise level ( expert, average, mediocre)
Some experts feel that defective also depend on production
supervisors. However, data on supervisors in charge are
available for only 242 of the 365 days. How should this
study be conducted?
Q3.A pharmaceuticals manufacturer is testing a drug developed
to treat cancer. During the final stages of development the
drug’s effectiveness is being tested on individuals for different
1.dosage conditions and
2.age groups.
One of the problems is patient mortality during
experimentation. Justify your design recommendations
through a comparison of alternatives and in terms of
external and internal validity.
a. Recommend the appropriate design for the experiment
b. Explain the use of control groups, blind, and double
blinds if you recommend them.
Q4.Describe how you would operationalize variables for
experimental testing in the following research question: what
are the performance difference between 10 microcomputers
connected in a local area network(LAN) and one minicomputer
with 10 terminals?
Q5.What type of experimental design would you recommend in
each of the following cases?
a. A test of three methods of compensation of factory
workers. The methods are hourly wage, incentive pay,
and weekly salary. The dependent variable is direct labor
cost per unit of output.
b. A study of the effects of various levels of advertising
effort and price reduction on the sale of specific branded
grocery products by a retail grocery chain.
c. A study to determine whether it is true that the use of
fast – paced music played over a store’s public address
system will speed the shopping
Notes

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LESSON 7:
WRITING THE RESEARCH
Students, before we start our topic for the day, I would like to give
you a brief recap from our last class. We had centered our discussion
on the various steps involved in a research process. These were
identified as:
• Problem Definition:It stated that before we actually initiate
the investigation, we should be clear about the problem we
are facing.
• Research Design:As I had also highlighted in the last class,
this provides the blueprint of investigation. It gives you a
broad idea about how to proceed further in getting
information regarding the relevant variables from the units
under consideration
• Data Collection:Once your design is developed you, as a
researcher, would be required to start collecting information
from the units under study. However, bear in mind that
none of the variables should be over or under stated.
• Data Analysis:Your next step would be to process the data.
Here, you would try to investigate how various units
respond to the variable or characteristics under study.
Such data analysis that you may carry out could be:
• Uni-variate
• Bi-variate
• Multi-variate
Interpretation
Literally speaking, interpretation is the ‘so what’ of a research
process. If you carry out a research or an investigation which is not
used in influencing any action anywhere, then it is a sheer waste of
time and resources. Therefore, your research results must be
consistent with the decisions that you have to make.
This is not the end of your task. It is equally important that you
should be able to communicate these findings and
recommendations in an understandable and concise manner to
the decision makers. Your report should clearly highlight that the
recommendation or suggestion is justified.
From this we derive the essence of our discussion today-
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RESEARCH METHODOLOGY
‘Writing the Research Report’
Being asked to write a report can fill people with horror! However,
writing reports correctly is an essential skill that you will need not
only today as a student, but also even tomorrow as a budding
manager.
I am sure you would agree, when I say that report writing is
common to both academic and managerial situations.
In academics, you would be required to prepare reports to facilitate
comprehensive and application oriented learning. Such reports of
yours would be called term papers, project reports, theses and
dissertations depending upon the nature of the report, the time
and effort expected out of you as a student and your curriculum
design.
Further, if you were a researcher, you would put out your initial
findings in a research report, paper or monograph, which would
later be condensed into an article or expanded into a series of
articles or a book
When you join the corporate world tomorrow, you would realize
that report writing there forms the basis for decision-making.
Such reports would be expected to be brief but comprehensive
and clearly reflect your thinking as the manager, the management
committee, or the consulting group that has been given the terms
of reference for fact finding or decision making.
We will start our lesson today with a brief classification of the
various types of reports
Categories of Reports
Can any of you think of various forms a report might take?
No! Never mind. Let me explain it you.
Broadly, any report would fall into one of the following three
major categories:
1. Information Oriented
2. Decision Oriented
3. Research Oriented
As these names suggest, it is the substance and focus of the
content that determines the category. However, a report that you
make may contain characteristics of more than just one category
Information Reports
They are the first step to understanding the existing situation (for
instance-business, economic, technological, labour market or
research scenario) or what has been discussed or decided (minutes
of a meeting). They, you should remember, form the foundation
of subsequent decision reports and research reports.
In describing any person, object, situation or concept, the following
seven questions will help you to convey a comprehensive picture
Subject / Action Reason
Object
Who? Or What? When? Why?
Whom? Where? How?
37
 Therefore, you can check the comprehensiveness of an information in implementation. However, all this while, you
RESEARCH METHODOLOGY

or descriptive report by iteratively asking: should not lose track of the main objective of what
Who Does What to Whom? the situation should be.
When, Where, How • Your next job is to present the evaluation. Make sure
and WHY? that it is structured by criteria or options depending
upon which structure is easy to understand.
Decision Reports
As you would well be able to make out from the name itself,
decision reports adopt the problem solving approach. Such reports
that you make have to follow the below mentioned steps:
• Identifying the problem:Problem is the beginning and the end
of decision-making. If you start with a wrong problem, a wrong
hypothesis or a wrong assumption, you will only end up solving
a non-existing problem or might even create a new problem.
Therefore you should carefully define the problem, keeping in
mind each of the following elements

• Making a Decision:Your recommendations would, but naturally,

flow out of the evaluation of the options, provided that your
thinking process so far has been logical. Make sure that the
decision is an adequate response to the problem
• What is the situation, and what should it be? • Drawing up an Action Plan:Action steps and their
consequences should be visualized to avoid your being
• What are the symptoms and what are the causes?
caught unaware. Be clear of WHO does WHAT, WHEN,
• What is the central issue and what are the subordinate WHERE and HOW for even the best analysis can go waste
issues? if attention is not paid to the action plan
• What are the decision areas – short medium and long term?
• Constructing the Criteria:In order to achieve your end
objective of bringing the existing situation to what it should
be, you would require yardsticks to evaluate options. Criteria
link the ‘problem definition’ with ‘option generation and
evaluation’. In constructing the criteria, your knowledge of
SWOT analysis could be very useful.

• Working out a contingency plan:Managers thrive on

optimism in getting things done. Yet, if something can go
wrong, it is likely to go wrong. You should therefore be
ready with parachutes to bail you out. Your contingency plan
must emerge from the action plan you have already prepared.
There is need to think of how to achieve the second best
• Generating and Evaluating the Options: In generating options
objective if the first one is not feasible.
it is your creativity that stands to test.
• Conclusion: A good decision report should not only be
• Sometimes the options may be obvious, but you
structured sequentially but also reflect comprehensively your
should look beyond the obvious.
iterative thinking process as the decision maker.
• Once a set of options has been generated, you should
short-list them and rank them by priority or their
probability of meeting your end objectives.
• As the decision maker, you should then evaluate the
same against the criteria and the possible implications

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 RESEARCH METHODOLOGY
We can split the writing process into stages

Getting
Gettingin
inthe
theMood
Mood Writing
Writingthe
theFirst
FirstDraft
Draft

Revising,
Revising,Revising,
Revising,Revising
Revising Finishing
Finishing

Research Reports
As you would all know, research reports contribute to the growth
of subject literature. They pave the way for new information,
significant hypotheses and innovative and rigorous methods of
research and measurement. Students, while preparing them, you Your proposal should provide information on the following items:
should broadly follow the following pattern: • Descriptive title of your study
• Undertake a Literature Survey to find gaps in knowledge • Your name as the author and your background
• Next, you should clearly identify the nature and scope of • Nature of your Study
study, hypothesis to be tested, and significance and utility of
• Problem to be examined
the study
• Need for the study
• Methodology for collecting data, conducting the experiment,
and analyzing the data is what should follow. • Background information available
• Then, lay out the description and analysis of the experiment • Scope of study
and data • To whom will it be useful
• Try to identify your findings after that • Hypothesis, if any, to be tested
• Come to a conclusion • Data
• Draw up your recommendations • Sources
• Plug in suggestions for further research • Collection procedure
• End your survey with back-up evidence and data • Methodology for analysis
Steps of Report Writing • Equipment and facilities required
• Schedule-target dates for completing
Preparing the Draft
Preparation of reports is time consuming and expensive. Therefore, • Library research
you, while writing your report should ensure that they are very • Primary research
sharply focused in purpose, content and readership. To control • Data analysis
the final outcome of your product – whether it is a research report,
committee/consulting/administrative report or a student report • Outline of the report
– I advise that you precede it with a proposal/draft and its acceptance • First draft
or modification and periodic interim reports and their acceptance • Final draft
or modification by your sponsor. • Likely product or tentative outline
• Bibliography

Reviewing the Draft

To err is human. Therefore after you have prepared your draft
report, it should be thoroughly reviewed and edited before the
final report is submitted. Let us now try to make a checklist that
will help you in reviewing the draft
• Your purpose as the author?
• Reader’s profile?
• Content?
• Language and tone?
• Length?

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 • Appearance? • Take out redundancies
RESEARCH METHODOLOGY

Author’s Purpose • Use active voice

The lack of clarity and explicitness in the communication process • Use shorter and direct verbs
leads to two major problems You have done quite a good job of this. Can you also give me
• Confusion in determining the mix of content, language and some examples for the above?
tone Hey! That’s nice. You’ve covered most of the tips. I’ll just add a
• Misinterpretation of the message few more to complete the list.
Therefore try to use a simple, easy to read style and presentation • Eliminate weighty expressions
that will help your reader to understand the content easily. • Make concrete adjectives
Reader’s Profile • Use abbreviations which are more familiar than their
Readership may consist of one or more person(s) / group(s). expanded form
You would therefore need to check whether all of them have the
Appearance
same wavelength. If not, common interest areas will need to be
Looks Matter! Don’t you all agree with this?
segregated from the special interest areas. Then you will need to
decide on the types and parts of the report that can satisfy the This therefore also holds true for your report. The novelty of
various reader groups. The major discriminating features of the presentation is as important as the originality of ideas. Both are
readers profile are culture, religion, ideologies, age, education and products of creativity. Presentation attracts readers and content
economic background holds their attention. Hence pay complete attention to both the
product and its packaging.
Content
Please pay attention to the content’s focus, its organization, and
accuracy of facts and logic of arguments. Style is the way you communicate
the content to the audience
• You should clarify the focus right in the first few paragraphs
to attract the reader’s attention and hold it.
• If any material is added or deleted in the text, recheck the
focus to see whether you need to make any changes in the
foundation [Peterson, 1987]
words

• Keep in mind that you may loose credibility if you fail to Illustration wordswords
wordswordswords
wordswordswordswords
check for the accuracy of the facts, for a reader can easily test wordswordswords
wordswordswords

internal consistency of the report by comparing information wordswordswords

wordswordswords

across pages and sections Structure Language

• Not all the data that is required to make the report may be
available. Sometimes you may need to make assumptions to
fill the gaps
• What is good in one situation may not hold for another.
Therefore please list and arrange the elements and the actors
of a situation to understand its dynamics
Language and Tone
Since the purpose of communication is to make the reader
understand the message, use vocabulary and sentence structure
which the reader understands. Abstract phrases are difficult to
comprehend while concrete phrases are easy to understand. Finally,
the tone of the language also matters. It can make the reader
receive, ignore or reject the message.
Length
This is a matter that needs to be judged by you as the author
keeping in mind the purpose, subject and the reader’s interest.
Usually, shorter the content, the more attractive it is to the reader.
However it should not be so brief as to miss the essential points
and linkages in the flow of arguments and force the reader to ask
for more information.
Let us now try to work on a few tips to save words.
Can you Think of any?
• Cut out repetitions, unless they are needed to sharpen the
message
style
Proof Reading
If you or another person proofreading your report is good, he
should have the accuracy to pin point all the mistakes, clarity in
giving instructions to the printer and speed for meeting the printer’s
deadline.
• Make sure that you indicate correction marks at two places
• Within the line where the correction is to be carried out
• In the margin against the corresponding line giving the
instruction
• Please, never give instructions at the place of correction
• You should mark the proof preferably with a red ball point
• To catch as many errors as possible read it over and over
again
• One last point. Always remember that proofs are meant to
be corrected not edited
Final Printing
Phew! At last your job is almost over. Once you have thoroughly
proof read your report, you should:
• Return it to the printer according to the agreed schedule

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• Also return the manuscript along with Rai Business School

RESEARCH METHODOLOGY
• Upon printing, your final document is ready for reference New Delhi Campus
Format of a Report: ………………………………………………………………………………………………
No matter which category your report falls into, when you make • Introductory Pages:Every time you open any book
one, make sure that it contains each of the following parts introduction is the first thing that you will come across.
• A cover and title page While writing such pages for your report, number them in
lower case Roman Numerals (i, ii, iii…). Use Arabic
• Introductory Pages
Numerals (1, 2, 3…) from the first page of the introduction,
• Foreword Make sure that your introductory pages contain:
• Preface • Foreword:This is not numbered but counted among the
• Acknowledgement introductory pages. It would be written by someone other
• Table of Contents than you, usually an authority on the subject or the sponsor
of the research or the book. At the end of the foreword,
• List of tables and illustrations
your name as the writer would appear on the right side. On
• Summary the left come address, place of writing and date, which are
• Text put in italics.
• Headings • Preface:It has to be written by you to indicate how the
• Quotations subject was chosen, its importance and need and the focus
of the book’s/research paper’s content, purpose and
• Footnotes
audience. Your name will appear at the end of the preface on
• Exhibits the right side. On the left would be your address, place of
• Reference Section writing and date, which you should put in italics.
• Appendices • Acknowledgement:As a courtesy, you should give due credit
• Bibliography to anyone else whose efforts were instrumental in your
writing the report. Such recognition will form the
• Glossary (if required)
acknowledgement. If it is short, I suggest that you treat it as
We will now discuss each of these at length a part of the preface, if not you may put it in a separate
• Cover and the title page section. At the end of the acknowledgement obviously only
I am sure you would all know what details this page needs to your name would appear on the right side and in italics.
contain. However, let’s try to list them down again • Table of Contents:The content sheet of your report would
• Title of the subject or project act as both a summary and a guide to the various segments
• Presented to whom
of your report. You should ensure that it covers all the
essential parts of the book/report and yet is brief enough to
• On what date be clear and attractive. It should list out the sections/
• For what purpose chapters/main heads and give their corresponding page
• Written by whom numbers along with. Have a look at the sample that I have
prepared below for better understanding
If there is any restriction on the circulation of the report that you
have made, you should indicate it on the top right corner of the
Foreword v.
cover and title page
Preface vii
Sample
Acknowledgement ix
For official use only SECTION A 1
Working capital requirements 1. Chapter Title 3
Of A. Center Head 10
Xyz private limited i. Center Side 17
Presented to Head
SECTION B 25
Managing director
SECTION C 30
Xyz private limited Summary and 32
On Conclusions
November 26, 2003 APPENDICES 37
By a. Questionnaire 39
Ms. ABC b. Interview 45
BIBLIOGRAPHY 51
And
GLOSSARY 55
Ms. DEF

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 • List of Tables and Illustrations:After your table of contents,
RESEARCH METHODOLOGY
you should give a list that mentions the details and page
numbers of the various tables and illustrations that you may
have used to support your report. Each list should start on a
separate page. You should number the tables and
illustrations continuously in a serial order throughout the
book/report. Usually keep them in Arabic Numerals or
Decimal Form
• Summary:The executive summary that you would write in
the initial pages is usually of great help to a busy reader.
The summary should highlight the following essential
information:
• What is the study about?
• What is the extent and limitation of the coverage?
• What is the significance and need for the study?
• What is the kind of data used?
• What research methodology has been used?
• What are the findings and conclusions?
• What are the incidental findings, if any?
• How can the conclusions be used and by whom?
• What are the recommendations and the suggested action
plan?
• Text:The subject matter of the text of your report should be
divided into the following
• Headings:
This I am sure is very simple for you to understand. You all
would have been using this classification right from your secondary
school days. Just as a refresher, I am mentioning the classifications
once again
• Center head,
• Center sub-head,
• Side head,
• Paragraph head.
Which combination of headings you would use would depend
on the number of classifications or divisions that the chapters of
your report have.
• Quotations There may be times when you feel that you need
to reproduce a portion of the work of another author to
add value to your own report. This is what I mean by
Quotation. Quotation Marks must necessarily used for
• A directly quoted passage or word
• A word or phrase to be emphasized
• Titles of articles
While quoting, be very careful that all quotations should correspond
exactly to the original in word, spelling and punctuation. You may
allow quotations up to three typewritten lines to run into the text.
Direct quotations over this limit have to be set in indented
paragraphs.
• Footnotes:When you insert quotations, it is important that
you indicate the source of the reference. This is what you
may do using the footnotes. Also, there may be times when
you might want to provide an explanation that is not
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42
important enough to be included in the text. Again, the
footnote would be of use to you for this.
Please ensure that explanatory footnotes are put at the bottom of
the page and are linked to the text with a footnote number. But
you must incorporate source references within the text and
supplement them with a bibliographical note at the end of the
chapter or book or report.
Footnotes would help the reader to check the accuracy of the
interpretation of the source by going to the source if they want to.
They are also a form of your acknowledgement of the indebtedness
to the source. They help the reader distinguish between your
contribution as the author of the report and the work of others.
• Exhibits:Writing just theory about any subject matter would
never be sufficient. You will need to supplement it with
exhibits for better and faster understanding by the reader. I
am sure you would all agree that such pictorial
representations also help in ensuring longer retention period.
They may take the form of either a table or an illustration.
• Table:Before you introduce a table make sure that it is
referred to in the text. It is meant only to expand, clarify or
give visual explanation, rather than stand by itself. The text
should highlight the table’s focus and conclusions
Sample
Table 10 Mean Information Test scores of Employees receiving
Communication through Different Media (From Dalhe, 11, p.245)
Medium No. of Mean
Employees Test
Score*
Combined 102 7.7
Oral and
Written
Oral Only 94 6.17
Written Only 109 4.91
Bulletin 115 3.72
Board
Grapevine 108 3.56
Only
• All differences are significant at the 5% level or better except
that between the last two means in the column
• Illustrations: They cover charts graphs, diagrams and
maps. Most of the instructions that I have listed out
for tables hold good for illustrations
• Reference Section:This section will follow the text. First
write out the appendices section, then the bibliography and
finally the glossary. Students, please ensure that a divider
page on which only the words Appendices, Bibliography Or
Glossary appear in all capital letters separates each section.
• Appendices: They will help you, as the author of the report,
to authenticate the thesis and help your reader to check the
data. Let us now try to list out the material that you would
usually put in the appendices
• Original data
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 • Long tables
• Long quotations
• Supportive legal decisions, laws, documents
• Illustrative material
• Extensive Computations
• Questionnaires and Letters
• Schedules or forms that you might have used in
collecting data
• Case studies
• Transcripts of interviews
Bibliographies:
It would follow the appendices and make sure that it is listed as a
major section in your table of contents. It should contain the
source of every reference cited in the footnote and any other relevant
work that you had consulted. This would give the reader an idea
of the literature available on the subject and that has influenced or
aided your study. If you try to look up the bibliographical section
of any book or report, you would see that the following
information is given for each reference:
• Name of the Author
• Title of his work
• Place of publication
• Name of the Publisher
• Date of publication
• Number of pages
Glossary:
Finally we come to a short dictionary giving definitions and
examples of terms and phrases, which are technical, used by you
in a special connotation, unfamiliar to the reader, or foreign to the
language in which the book is written. I hope you know that even
this is listed as a major section in the table of content
I hope you enjoyed today’s session. It was something very general
and away from the usual theory. However it was necessary to
formally list down the steps of report writing because as we
mentioned, these reports are very critical in decision-making-
whether in academics (for performance review), research (as base
for further reference) or an organization (to decide the future course
of action)
Before we call it a day lets just look back to recapitulate all
that we covered in the class today.
In this lesson we have discussed the steps involved in preparation
of a proposal for a report. I explained you three categories of
reports namely-information reports, decision reports and research
reports. The steps involved in writing reports were also highlighted.
I am summarizing the same with the following flow chart
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RESEARCH METHODOLOGY
Eureka!
Proof reading and
submission
Final draft
Teachers feedback
Review
Glimpsing the process
Report writing
Action plan
How? When? Why?
1. Strategic thinking
Writing the report What? Why? Who?
Gathering information
Planning the report
Analysinginformation
Put something on paper
We further divided a report into various parts – Title Page,
Introductory Pages, Text and reference Section. I hope you all have
understood each of these heads. We concluded the unit by
explaining that before you submit your final report, it should be
thoroughly reviewed and edited.
Write-Up
So now that you’ve completed the research project, what do you
do? In fact, this final stage-writing up your research-may be one
of the most difficult. Developing a good, effective and concise
report is an art form in itself. And, in many research projects you
will need to write multiple reports that present the results at
different levels of detail for different audiences. There are several
general considerations to keep in mind when generating a report:
The Audience
Who is going to read the report? Reports will differ considerably
depending on whether the audience will want or require technical
detail, whether they are looking for a summary of results, or
whether they are about to examine your research in a Ph.D. exam.I
believe that every research project has at least one major “story” in
it.
The Story
Sometimes the story centers on a specific research finding.
Sometimes it is based on a methodological problem or challenge.
When you write your report, you should attempt to tell the “story”
to your reader. Even in very formal journal articles where you will
be required to be concise and detailed at the same time, a good
“storyline” can help make an otherwise very dull report interesting
to the reader.
The hardest part of telling the story in your research is finding the
story in the first place. Usually when you come to writing up your
research you have been steeped in the details for weeks or months
(and sometimes even for years). You’ve been worrying about
sampling response, struggling with operational zing your
measures, dealing with the details of design, and wrestling with
the data analysis. You’re a bit like the ostrich that has its head in
the sand. To find the story in your research, you have to pull your
43
 head out of the sand and look at the big picture. You have to try
RESEARCH METHODOLOGY
to view your research from your audience’s perspective. You may
have to let go of some of the details that you obsessed so much
about and leave them out of the write up or bury them in technical
appendices or tables
Formatting Considerations
Are you writing a research report that you will submit for
publication in a journal? If so, you should be aware that every
journal requires articles that you follow specific formatting
guidelines. Thinking of writing a book. Again, every publisher
will require specific formatting. Writing a term paper? Most faculties
will require that you follow specific guidelines. Doing your thesis
or dissertation? Every university I know of has very strict policies
about formatting and style. There are legendary stories that
circulate among graduate students about the dissertation that was
rejected because the page margins were a quarter inch off or the
figures weren’t labeled correctly.
To illustrate what a set of research report specifications might
include, I present in this section general guidelines for the
formatting of a research write-up for a class term paper. These
guidelines are very similar to the types of specifications you might
be required to follow for a journal article. However, you need to
check the specific formatting guidelines for the report you are
writing -the ones presented here are likely to differ in some ways
from any other guidelines that may be required in other contexts.
I’ve also included a sample research paper write-up that illustrates
these guidelines. This sample paper is for a “make-believe” research
project.But it illustrates how a final research report might look
using the guidelines given here.
Key Elements
Introduction
Statement of the Problem
The general problem area is stated clearly and unambiguously.
The importance and significance of the problem area is discussed.
Statement of Causal Relationship
The cause-effect relationship to be studied is stated clearly and is
sensibly related to the problem area.
Statement of Constructs
Each key construct in the research/evaluation project is explained
(minimally, both the cause and effect). The explanations are readily
understandable (i.e., jargon-free) to an intelligent reader.
Literature Citations and Review
The literature cited is from reputable and appropriate sources
(e.g., professional journals, books and not Time, Newsweek, etc.)
and you have a minimum of five references. The literature is
condensed in an intelligent fashion with only the most relevant
information included. Citations are in the correct format (see APA
format sheets).
Statement of Hypothesis
The hypothesis (or hypotheses) is clearly stated and is specific
about what is predicted. The relationship of the hypothesis to
both the problem statement and literature review is readily
understood from reading the text.
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44
Methods
Sample Section
Sampling Procedure Specifications
The procedure for selecting units (e.g., subjects, records) for the
study is described and is appropriate. The author state which
sampling method is used and why. The population and sampling
frame are described. In an evaluation, the program participants are
frequently self-selected (i.e., volunteers) and, if so, should be
described as such.
Sample Description
The sample is described accurately and is appropriate. Problems in
contacting and measuring the sample are anticipated.
External Validity Considerations
Generalizability from the sample to the sampling frame and
population is considered.
Measurement Section
Measures
Each outcome measurement construct is described briefly (a
minimum of two outcome constructs is required). For each
construct, the measure or measures are described briefly and an
appropriate citation and reference is included (unless you created
the measure). You describe briefly the measure you constructed
and provide the entire measure in an Appendix. The measures,
which are used, are relevant to the hypotheses of the study and are
included in those hypotheses. Wherever possible, multiple
measures of the same construct are used.
Construction of Measures
For questionnaires, tests and interviews: questions are clearly
worded, specific, appropriate for the population, and follow in a
logical fashion. The standards for good questions are followed.
For archival data: original data collection procedures are adequately
described and indices (i.e., combinations of individual measures)
are constructed correctly. For scales, you must describe briefly which
scaling procedure you used and how you implemented it. For
qualitative measures, the procedures for collecting the measures
are described in detail.
Reliability and Validity
You must address both the reliability and validity of all of your
measures. For reliability, you must specify what estimation
procedure(s) you used. For validity, you must explain how you
assessed construct validity. Wherever possible, you should
minimally address both convergent and discriminate validity. The
procedures, which are used to examine reliability and validity, are
appropriate for the measures.
Design and Procedures Section
Design
The design is clearly presented in both notational and text form.
The design is appropriate for the problem and addresses the
hypothesis.
Internal Validity
Threats to internal validity and how they are addressed by the
design are discussed. Any threats to internal validity, which are not
well controlled, are also considered.
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Description of Procedures Questions are ordered according to social usefulness or importance:

RESEARCH METHODOLOGY
An overview of how the study will be conducted is included. The those which people are most likely to see as useful come first and
sequence of events is described and is appropriate to the design. those least useful come last. Group questions those are similar in
Sufficient information is included so that a reader could replicate content. Establish a flow of responding from one question to
the essential features of the study. the next. Questions in any topic area that are most likely to be
objectionable to respondents should be positioned after the less
Results
objectionable ones. Demographic questions are usually placed at
Statement of Results the beginning or at the end.
The results are stated concisely and are plausible for the research The first question is the most important. The first question should
described. be clearly related to the survey topic and should be easy to answer.
Tables The first question should convey a sense of neutrality. The first
The table(s) is correctly formatted and accurately and concisely question should be clearly applicable and interesting to everyone.
presents part of the analysis. Formatting the Pages
Figures Use lower case letters for questions, upper case for answers. Identify
The figure(s) is clearly designed and accurately describes a relevant answer categories on left with numbers this allow pre-coding of
aspect of the results. responses. Establish a vertical flow. The purpose of vertical flow
is to prevent inadvertent omissions, something that occurs often
Conclusions, Abstract and Reference when respondents are required to move back and forth across a
Sections page with their answers. Vertical flow also prevents the common
Implications of the Study error of checking the space on the wrong side of the answers
Assuming the expected results are obtained, the implications of when answer categories are placed beside one another. Also, vertical
these results are discussed. The author mentions briefly any flow enhances feelings of accomplishment.
remaining problems, which are anticipated in the study. The need to provide clear directions is extremely important. Use
Abstract the same marking procedure throughout the survey. Directions
The Abstract is 125 words or less and presents a concise picture of for answering are always distinguished from the questions by
putting them in parentheses.
the proposed research. Major constructs and hypotheses are
included. The Abstract is the first section of the paper. See the Items in a Series
format sheet for more details. Repeat the scale for each item. Ask one question at a time. The
References respondent should only be asked to do one thing at a time. The
All citations are included in the correct format and are appropriate problem of asking two questions is that each request interferes
for the study described. with the other.

Stylistic Elements Use words for Answer Choices

Professional Writing
First person and sex-stereotyped forms are avoided. Material is
presented in an unbiased and unemotional (e.g., no “feelings”
about things), but not necessarily uninteresting, fashion.
Parallel Construction
Tense is kept parallel within and between sentences (as appropriate).
Sentence Structure
Sentence structure and punctuation are correct. Incomplete and
run-on sentences are avoided.
Spelling and Word Usage
Spelling and use of words are appropriate. Words are capitalized
and abbreviated correctly.
Show a connection between items and answers. Use multiple
column technique to conserve space. Show how to skip screening
questions. Make questions fit each page. Use transitions for
continuity - for example, when a new line of questioning starts,
when a new page starts or to break up the monotony of a long
series of questions on a single topic. Transitions must also fit the
situation. It is also useful to distinguish between major and minor
transitions.
Designing the Covers
The front cover receives the greatest attention and contains:
• A study title,
• A graphic illustration,
• Any needed directions and

General Style • The name and address of the study sponsor.

The document is neatly produced and reads well. The format for
the document has been correctly followed.
The Formatting
Booklet format and Printing Procedures
Print the survey booklet on 81/2 x 11 paper. Place no questions
on the front or back pages. The survey pages should be printed
using a high quality laser printer on white or off-white paper.
Ordering the Questions
The title should sound interesting. Subtitles are often useful. Use
graphic illustrations. The return address does not include the name
of the researcher. The goal is to have the respondent view the
researcher as an intermediary between the respondent and the
accomplishment the back cover should consist of an invitation to
make additional comments, a thank you and plenty of white
space.

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 Why do a Pilot-test?
RESEARCH METHODOLOGY
The pilot-test is useful for demonstrating instrument reliability,
the practicality of procedures, the availability of volunteers, and
the variability of observed events as a basis for power tests,
participants’ capabilities or the investigators skills. The pilot test is
a good way to determine the necessary sample size needed for
experimental designs. From the findings of the pilot test, the
researcher can estimate the expected group means differences as
well as the error variance. Even a modest pilot test conducted
informally can reveal flaws in the research design or methodology
beforehand.
Any surveys that have not been used in the past or have been
modified in any way should always be pilot-tested. Any procedures
that require complex instructions should be pilot-tested. Any
methodology requiring time estimates should be pilot-tested.
Pilot testing allows you to answer the following questions:
• Is each of the questions valid?
• Are all the words understood?
• Do all respondents interpret questions similarly?
• Does each close response question have an answer that
applies to each respondent?
• Does the questionnaire create positive impression, one that
motivates people to answer it?
• Are questions answered correctly?
• Does any aspect of the questionnaire suggest bias on the
part of the researcher?
Selecting the Pilot Test Sample
The sample for the pilot test should be as close as possible to the
actual sample that will be drawn for the main project. When this is
not possible, then you should try to get a sample with similar
characteristics. Depending upon the availability of people, you
may need to save as many participants for the main survey as you
can which case, you don’t want to include them in a pilot test.
Some researchers often will do a pilot test on a subset of their
sample and then include them as part of the main sample. That is
like mixing apples and oranges. If you make any change whatsoever
to your study as a consequence of the pilot-test, then the
participants in the pilot-test will have experienced something
different from those in the main study. Additionally, one of the
purposes of doing a pilot test is to debrief the participants after
the study by asking questions about the methods, instruments,
and procedures.
Information to be Collected
The pilot test should be run exactly as if it were the actual study.
The exception here is that you will be collecting data on how long
procedures take, what actions facilitate or inhibit the operation of
the study, whether instructions are understood and if the data
you obtain is in the form expected.
It may be necessary to have more than one pilot test especially in
the situation where instructional materials or methods have been
developed. In the case of instructional materials or methods, you
would do a formative evaluation of the materials and methods.
Unlike a pilot test where the researcher may not interact with
participants, you would be asking questions of the participants as
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46
they read, watch, or listen to the instruction and when they are
quizzed on what they have learned.
Participant Debriefing
If your study involves questionnaires or interviews with people,
you should have a debriefing session at the completion of the
pilot test. Ask the participants if they understood all of the
instructions, if they had any particular problem with any of the
questions asked, if they understood the intent of the study, and
if they had any recommendations how to improve the study.
Activities
Role Playing
1. You are the research director for a major bank. You are to
recruit a junior analyst who would be responsible for
collecting and analyzing secondary data (data already collected
by other agencies that are relevant to your operations). With
a fellow student playing the role of an applicant for this
position, conduct the interview. Does this applicant have the
necessary background and skills? Reverse the roles and repeat
the exercise.
2. You are a project director working for a major research
supplier. You have just received a telephone call from an
irate respondent who believes that an interviewer has
violated her privacy by calling at an inconvenient time. The
respondents express several ethical concerns. Ask a fellow
student to play the role of this respondent. Address the
respondent’s concerns and pacify her.
Presentations
You have recently read a book and your friends want you to make
a brief presentation about it. How would you go about preparing
and handling of audio visual materials?
Fieldwork
1. Using your local newspaper and national newspapers such as
USA Today, the Wall Street Journal, or the New York Times,
compile a list of career opportunities in marketing research.
2. Interview someone who works for a marketing research
supplier. What is this person’s opinion about career
opportunities in marketing research? Write a report of your
interview.
3. Interview someone who works in the marketing research
department of a major corporation. What is this person’s
opinion about career opportunities available in marketing
research? Write a report of your interview.
4. Take a report of some organization and check whether the
problem solving approach or descriptive approach has been
used. If you were to rewrite the report , what will be your
outline and what stages would you do to improve the
report.
Group Discussion
As a small group of four or five, discuss the following issues.
1. What type of institutional structure is best for a marketing
research department in a large business firm?
2. What is the ideal educational background for someone
seeking a career in marketing research? Is it possible to
acquire such a background?
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RESEARCH METHODOLOGY
so, how?
Self Assessment Exercises
1. Take a report of any organization and check whether the
problem solving or descriptive approach has been used. If
you were to rewrite the report, what will be your contents
outline and what steps would you follow to improve the
report.
2. Describe an incident that has recently occurred and check
whether your description answers all the conditions indicated
under descriptive reporting
3. Prepare a sample title / cover page
4. Pick up a report that you have recently prepared. Examine
whether the introductory pages contain all the sections
indicated in this unit. If not, put these sections if they are
necessary for the report
5. Examine the appendices to any report. Are all of them
essential for understanding the theme of the report? Can
they be pruned?
6. Edit a report using the copy reading and proof reading
symbols
References and Further Readings
• Gallagher, J. William, “Report Writing for Management”,
Addison-Wesley
• Golen, P. Stevan, “Report Writing for Business and
Industry”, Business Communication Service
• Sharma R.C. and Krisna Mohan, “Business Correspondence
and Report Writing”, Tata McGraw-Hill Book Company
• Course Design MS 95, Unit IV – “Report Writing and
Presentation”, IGNOU
• Wright, C., “Report Writing”, Witherby & Co. England
• Kepner H. Charles and Benjamin B. Tregoe, “The Rational
Manager”, McGraw-Hill Book Company
• Abrams Mark, Social Surveys and Social Action, London:
William Heinemann Ltd., 1951.
• Anderson, R. and Zelditch Morris Jr. A Basic Course in
Statistics with Sociological Application. New York: Holt,
Rinehart and Winston INC., 1975.
• Best John, Research in Education, New Delhi Prentice Hall
of India Pvt. Ltd., 1963.
• Blalock Jr. Herbet, M. and Blalock Ann. B. Methodology in
Social Research New York: McGraw Hill Book Company,
1968
• Borg Walter, R. Educational Research, An Introduction, New
York: David Mckay Company, 1976.
Notes

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 UNIT II

LESSON 8:
TECHNIQUES OF DATA COLLECTION

Students so far we have studied about various research processes The audit process includes an opening meeting, factory tour,
RESEARCH METHODOLOGY

and the writing of report. The write up part we have done in
detail. Now, we will be discussing in detail each and every step of
research. After the research problem is framed along with the
hypothesis the next step is the collection of required information
and data.
In this class we will be focusing specially on the collection of
qualitative data for market research. The list of techniques and
sources of data are
Sources of Market Data
Retail Audit
Consumer Panel
TV Meters
Diary Method
Internet as a source of Data
Secondary Data
Sources of Secondary Data
RBI
Economic Survey
CSO
Investment Data
Foreign Trade
Survey Data
Types of Survey Techniques
Now let us discuss these in detail
Retail Audit
Retail Audit is a common term in marketing research
Audits
During the 1990s, it became increasingly important to develop a
strong brand image. It’s not just the product that needs to be
sold, but also the brand, charged with values such as ethics, quality,
feelings and identity that put over a positive message to consumers.
Today, many companies are moving their production from their
home countries to nations where manufacturing costs are
considerably lower. However, the role of the company extends
beyond just financial issues; every organisation has a social
responsibility. Consumer and pressure groups are increasingly
concerned about the social conditions in which workers from
developed and developing countries are subjected. They expect
companies to accept its responsibilities and to conduct its activities
in accordance with the ethical and moral values accepted in the
country in which their product is sold. Forced labor, child labor,
low pay, poor conditions and dangerous working environments
are all areas of serious concern to the reputable retailer or brand
owner.
document review, interviews with employees and a closing
meeting.
The key parameters that we look at when carrying out retail audits
are:
In-store availability of product/brand;
• Types of outlets (by owner, location, specialty);
• Sales volume cross-tabbed with type and location;
• Pricing of product/brand cross-tabbed with type/location
of outlet;
• Display value;
• Customer demand;
• Resulting market share and rank/position of product/
brand.
It must be noted that there are no readily available retail universe
data. The design of a retail audit is critical to the success of the
project. The data obtained from the retail audit is useful for carrying
out
• Identification of market opportunities
• Trend analyses and forecasting
• Studying market structure
• Prioritisation of markets
• Conducting analyses of competitors
• Product portfolio analysis
• Understanding changes in distribution
• Pricing trend analyses
• Product Categories Covered
This Audit covers more than 100 product categories including
• Baby products (oil, powder, diapers, milk food, weaning
food.)
• Beverages (coffee, soup mix, squash and juice, syrup, tea,
concentrated drinks.)
• Contraceptives
• Cosmetics (colognes, deodorant, perfume, lipstick, nail
polish.)
• Environmental hygiene (air freshener, floor cleaner, floor
polish, etc.)
• Fabric care (fabric bleach, washing powder, liquid, whitener,
soap, detergent.)
• Food products (butter, margarine, salt, packaged food, etc.)
• General toiletries (mouthwash, talcum powder, toilet soap,
toothpaste, toothbrush, sanitary napkins.)
• Hair care (conditioner, dye, oil, shampoo.)

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• Health products and OTC (analgesic, digestive, medicated 7. Usually the sources can be broken down into three basic

RESEARCH METHODOLOGY
dressing, etc.) groups:
• Liquor (beer, brandy, gin, rum, vodka, whisky, wine, liquor.) a. “White area”: from official stats sources to fully legal retail;
• Milk products (milk, condensed milk, milk powder, Cheese.) b. “Grey area”: includes medium and small wholesale, and
• Semi-durable products (batteries, bulbs, lubricants, paint, kiosks (partial reporting) original, but locally unauthorized
tube lights, etc.) product;
• Shaving products (after-shaves, blades, razors, etc.) c. “Black area”: private entrepreneurs operating without a
license, ad-hoc open air markets, van sales, babushkas, etc.
• Skin care (cream, cold cream, lotion, face-wash, etc.)
8. Analysis and report writing
• Snack foods and soft drinks (biscuits, chocolates,
confectionery, etc.) After verification, the data are punched in (software and formats
to be determined based on client needs), structured, analyzed, and
Measures presented as text, graphics, customized databases, or a combination
• Market size in terms of units sold, volume and value of these.=Consumer Panel
• Market share by volume and value There’s nothing (consumer) panel data can tell us that we
• Numeric distribution don’t already know from scanner data.
• Weighted distribution Consumer panels are a unique tool that can enable a clever researcher
• Share among handlers to examine dynamic longitudinal changes in behaviors, attitudes,
• Out-of-stock retailers
and perceptions. Consumer panels can also be an overly costly,
excessive generator of unused data
• Per dealer off-take
What are Consumer Panels?
• Purchases by retailers
There are two basic kinds of consumer panels.
• Stock levels with retailers
In the first kind, respondents report essentially the same
• Stock turnover ratio information repeatedly over some period of time. The chief
• Trends for market, company, brand and SKU - for size and examples of these kinds of panels are the syndicated purchase
shares panels using store and home, termed as, continuous panels.
Following Steps can be Followed The second kind of panel consists of samples of pre-screened
We never assume that our clients will mean the same thing under respondents who report over time on a broad range of different
“retail audit”. We always strive to define exactly the specific topics, termed as discontinuous access panels.
knowledge needs, and design the approach, methodology, and Both kinds of panels come in all different forms. Panel studies
sample accordingly. Our experience has taught us that there can be can involve data collection at widely different intervals varying
no long-term representative samples. Each new project requires a anywhere from a day to several years between waves of interviews.
revision of the existing sample size and structure in order to Panel operators are continuously faced with the decision about
achieve credible results. how often panel members should be contacted and asked to
1. Draft the research plans and schedule, indicating. report. Contacting the panel either too frequently or too infrequently
• Scope and goals; may lead to reduced cooperation,
• Optimal sample size, methods of collecting The Benefits of Continuous Consumer Panels
quantitative & qualitative data, etc.; 1. The effect of a special offer can be measured through a
• Deadlines; before-and-after design using a panel approach. Thus, a
• Structure and format of reports. sample of families might be interviewed initially to gather
information on their purchases of soft drinks, possibly over
3. Fine-tuning and approval of research approach.
several weeks to obtain a good idea of their “steady state”
4. Design and production of customized research tools. purchasing patterns. A special deal for a particular brand is
5. Launch and management of field research then introduced, and the purchases of the same sample are
As a rule, we use the following field research methods: monitored for perhaps every week for three months. In this
way, sampling variation is minimized and both short-term
• Observation
and long-term effects of the deal are obtained.
• Face-to-face POS interviews
2. A static consumer panel of families with young children
• Mystery shopping might be set up to monitor the acceptance of new line of
Note toys. In this case no type of experimental treatment is
Do not expect data on opening stock/deliveries/closing stock, involved. Rather, information is obtained, say, every month
bar code data (scanning d-bases), audit code levels, etc. They are on the toy purchases of the families. In this way, data are
mostly non-existent. compiled on the types of families that are buying any of the
new toys, how soon the toys are purchased after they have
6. Data collection

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 been placed on the market, and how many of the toys are
RESEARCH METHODOLOGY
purchased by each family.
3. A dynamic consumer panel might be used to keep track of
the purchases of frozen foods of one brand in relation to
other brands. By obtaining such data every week for several
years, very detailed information can be obtained on what
sorts of families are purchasing each major brand and on the
change in market shares of the different brands over time
among different groups of consumers. Also estimates can be
derived of the extent to which purchasers remain loyal to
different brands.
4. A continuous consumer panel may be used to obtain more
detailed and reliable information on different types of
behavior. It has been demonstrated that data on consumer
financial holdings are obtained much more reliably if this
information is sought over a period of time, thus allowing
the respondent to build up confidence in the validity and
trustworthiness of the study. Similarly, information on
medical care events is obtained much more accurately from
panels than from one-time surveys.
5. A continuous consumer panel is the only means of
obtaining information on a series of events extended
through time. For example, reactions to the weekly episodes
of a television program are best obtained by monitoring the
viewing of the same family and at the same time getting
their reactions to the different programs. In this way it
becomes possible to measure changes in program acceptance
and to relate attitudes and behavior at one time to viewing
and attitudes toward earlier episodes.
6. Only through continuous consumer panels is it possible to
monitor changes in the behavior of particular cohorts. For
example, the purchase habits of teenagers might be
monitored over a number of years to ascertain how these
purchase habits change as the subjects move into a different
stage of life. By monitoring the behavior of peers at the
same time, it becomes possible to distinguish effects due to
history (i.e., changes in economic and social conditions) from
effects due to the aging process. It is possible to use a series
of demographically identical discontinuous access panels for
the purposes of continuous tracking. Selecting
demographically identical samples containing different
panelists at predetermined intervals across time can do this.
These different groups of panelists can then be used
separately in the separate waves of the panel. Since the
sample is not static, traditional static panel analytics, such as
measures of trial and repeat and brand switching, are lost.
What is gained, however, means of obtaining other insights
in at a lower cost than it would be to maintain a continuous,
full-time panel.
The Benefits of Discontinuous Consumer Access Panels
The benefits of discontinuous consumer access panels are
primarily related to reductions in the cost and time required
obtaining market research information. Although these kinds of
panels are used in a wide variety of ways, three uses are especially
common
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1. Screening for special populations (especially for rare special
populations),
2. Evaluation of new product concepts and formulations,
3. Marketing and advertising experimentation
The following examples illustrate some uses of discontinuous
consumer access panels:
1. A manufacturer of tennis racquets is considering alternative
shapes for a new racquet that would make it easier to handle.
Initially, sheets with pictures and a description of the new
racquets might be sent by mail or e-mail to pre-screened
samples of respondents who play tennis. Any one
respondent would receive only one of the alternatives, but
the manufacturer could determine which racquet was
preferred from the different samples. Alternatively,
respondents might receive pictures of two racquets with the
order of the pictures randomized, and asked for their
preference between the two. At a later stage, respondents
might receive the actual racquets for use testing.
2. Instead of a new product, a marketer might be considering a
new advertising campaign for an existing product, and might
wish to choose between several alternatives that had been
proposed by the advertising agency. Again, samples of each
of the alternatives would be sent to relevant panel members
for their evaluation. As above, they might be asked to
evaluate a single advertisement or to choose from among
multiple advertisements. The testing could also be done by
the advertising agency before the recommendation was made
to the manufacturer. Similarly, panel members could be
asked to evaluate different designs or layouts for a web page
or a brochure. In all cases, the objective is to screen different
ideas or executions inexpensively by having a panel evaluate
them singly or side-by-side. It is obvious that similar
information could be obtained from one-time surveys, but
with greater difficulty and at greater expense. Two reasons for
using discontinuous panels are because they can provide
greater relevance and better quality. They are more relevant
because respondents can be easily screened on the basis of
prior questions (e.g., pet owners, users of denture cream,
recent car purchasers) They are often better quality because
respondents are experienced and can easily be pre-qualified as
panel members on the basis of the quality of the previous
survey responses. In the next section we discuss problems
with discontinuous consumer panels that sometimes make
one-time surveys the better alternative.
Challenges of Panels?
Essentially, a continuous consumer panel operation poses four
problems:
1.Gaining and maintaining cooperation,
2.Information validity and reliability,
3.Panel conditioning, and
4.Record maintenance.
1. Gaining and Maintaining Cooperation
Mail, Internet, or the World Wide Web does even when panels are
recruited by personal methods, the initial rate of cooperation can
be as low as 50%, and may be much lower if recruiting. Those
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who cooperate are more likely to be more educated, in professional
or clerical occupations, in middle or upper middle-income levels,
and in the younger and middle age brackets. As a result, a panel at
the beginning of the operation may not be representative of the
population from which it was selected. This is only the beginning
of the problem, however. Attrition can be substantial. About
half the people that even consent to participate may drop out after
the first two or three rounds, especially if they are asked to keep
extensive written records. As a result, a panel operation can become
increasingly unrepresentative of the population from which it
originally came, something that could be a problem even for a
static panel. Of course, panel operators take steps to reduce this
non-representativeness through the use of a variety of methods
such as selective recruiting and weighting the panel.
2. Information Validity and Reliability
This problem of sample representativeness is also the key problem
for discontinuous consumer panels. Almost all of these panels
are recruited by mail with initial cooperation rates usually below
5%. As with continuous panels, there are also very high initial
dropout rates. Operators of discontinuous panels make initial
efforts to balance their samples for major demographic
characteristics by selectively recruiting respondents from groups
least likely to cooperate and by dropping from their panels
respondents from groups that are over-represented. It is often
claimed by operators of such panels that the response rate to an
individual survey is 70 percent or higher, but this refers to
respondents who had already previously agreed to participate. As
with continuous panels, the data from individual surveys are
weighted to further control for major demographic biases.
Sample representativeness is also a concern when recruiting on-
line panels. Critics argue that because on-line panels necessitate
computer literacy and the means to access the Internet, it is biased
against low-income groups and technological laggards. These
concerns of representatives may be exacerbated depending on
how the panel is recruited. Surfers who inadvertently stumble on
to a site, or ones who are attracted by the lure of a lottery, may be
even less representative than those recruited through more
deliberate or personal means. Yet, just as efforts are made to make
off-line panels more representative, so are many of these same
efforts being used to make-to-make on-line research more
representative. It is important to realize that “purpose defines
precision.” The representatives and precision required to determine
which of six package designs is most appealing is different (perhaps
less important) than that needed to estimate the impact of a price
change on market share. Independent of the population being
sampled is the reliability of the information obtained from panel
members. For discontinuous panels, these problems are identical
to those conducting one-time surveys. Since many of the uses of
the panel relate to attitudes and buying intentions, the only way
of ultimately verifying the quality of responses is to observe
marketplace results. The extensive and increased use of
discontinuous panels suggests the responses obtained from these
panels do provide information that is sufficiently accurate for
making marketing decisions. For continuous panels that are more
often measuring behavior, shipment data can validate results,
particularly at an aggregate level. Certainly the introduction of
portable household scanner equipment and electronic meters for
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television viewing has increased validity, although even such
RESEARCH METHODOLOGY
equipment and meters do not prevent errors caused by
respondents forgetting to use them. Many panels still rely on
diaries. Although diaries significantly reduce reporting error as
compared to recall, reporting errors do occur if panel members
forget to make their entries, or attempt to recall and record earlier
behavior at the end of the recording period instead of at the time
that it occurred. This is especially a problem for behaviors that are
infrequent and of low salience to respondents.
3. Panel Conditioning
The third major problem that affects continuous panels, but
probably not discontinuous ones is the danger of conditioning
effects. That is, the possibility that behavior or attitudes of panel
members will be influenced or contaminated by their participation
in the panel. For example, respondents who keep diaries about
visits to restaurants may become aware of the large amount of
money they are spending on restaurant meals and either reduces
the frequency of the visits to restaurants or switch to lower cost
ones. In a similar fashion, a family asked month after month
about ownership of savings accounts may decide to open a savings
account, even though they originally had no such intention,
Panel conditioning effects are both erratic and pervasive. They
exist in some sorts of studies, but do not seem to exist in others.
As with panel mortality, methods exist for detecting and correcting
such effects.
4. Record Maintenance
The fourth major problem of a continuous panel study is not so
much methodological as of the researcher’s own making. This is
the need for some systematic means of keeping easily accessible
records on the activities of panel members and on changes in the
characteristics of these panel members over time. Since members
of a panel are usually households or families, rather than single
individuals, there is the problem in a long-term panel study of
keeping track of changes in the composition of these households
and changes in their characteristics. A family member may leave
the household, another may be born or move into it, a household
may be dissolved, or a new household may be formed. In addition,
the employment status and other characteristics of the individual
members will change over time. All of these changes have to be
recorded so that the data can be used for analytical purposes when
required. The attitudes and behavior of the panel members also
have to be recorded in such a way that the data are readily accessible,
particularly so that analyses can be made either on a cross-sectional
or longitudinal basis. Some idea of the magnitude of the problem
can be obtained from the fact that in many panel studies a single
round of data collection may provide information on 500 to 1,000
variables. If a panel has 10,000 families, which is not unusually
high, and information is obtained every month for, say, five years,
the number of pieces of information could be as high as
600,000,000. Fortunately, the capacity of computers has expanded
so rapidly that the computers themselves are no longer the
problem. The major problem was and remains the designing of
computer systems that make storing and accessing the data
straightforward. It is especially important for syndicated services
to design systems that make client access to data fast and easy.
Worldwide Major Panel Operators
Country/ Firm/ Started/ Phone/ URL
51
 1. USA AC Nielsen 1933 203-961-3330 www.acnielsen.com
RESEARCH METHODOLOGY
2. USA NFO Worldwide 1946 203-629-8888 www.nfow.com
3. USA Maritz Marketing Research, Inc. 1973 636-827-1610
www.maritz.com
4. USA Market Facts, Inc. 1946 847-590-7000
www.marketfacts.com
5. USA NPD Group, Inc. 1953 516-625-0700 www.npd.com
6. USA Opinion Research Corporation Intl. 1938 908-281-
5100www.opinionresearch.com
7. USA Taylor Nelson Sofres Intersearch 1960 215-442-9000
8. USA Roper Starch Worldwide, Inc. 1923 914-698-0800
www.roper.com
9. USA Burke, Inc. 1931 513-241-5663 www.burke.com
10.USA MORPACE International, Inc. 1940 248-737-5300
www.morpace.com
11.USA Creative and Response Rsch Services, Inc. 1960 312-
828-9200 www.crresearch.com
12.USA Harris Interactive, Inc. 1956 716-272-9020
www.harrisinteractive.com
13.USA Lieberman Research Worldwide 1973 310-553-0550
www.lrw.com
14.USA Ziment 1976 212-647-7200
15.UK BJM Research and Consultancy Ltd 1973 44-20-
7891.1200
16.UK BMRB International 1933 44-20-8566.5000
www.bmrb.co.uk
17.UK The Gallup Organization 1937 44-208-939.7000
www.gallup.com
18.UK GfK Marketing Services Ltd 1992 44-870-603.8100
www.gfkms.co.uk
19.UK Harris Research 1965 44-20-8332.9898
20.UK Information Resources 1992 44-1344-746000
www.unfores.com
21.UK INFRATEST BURKE GROUP LTD. 1974 44-208-
782.3000
22.UK Ipsos-RSL Ltd. 1946 44-20-
8861.8000www.ipsos.rslmedia.co.uk
23.UK Isis Research plc 1973 44-20-
8788.8819www.isisresearch.com
24.UK Martin Hamblin 1969 44-20-7222.8181
www.martinhamblin.co.uk
25.UK Millward Brown UK Ltd 1973 44-1926-452233
www.millwardbrown.com
26.UK MORI (Market & Opinion Rsch Intl)) 1969 44-20-
7222.0232 www.mori.com
27.UK MVA 1968 44-1483-728051 www.mva-research.com
28.UK ORC International 1938 44-20-7675.1000
www.opinionresearch.com
29.UK The Research Business International 1981 44-20-
7923.6000 www.trbi.co.uk
30.UK Research International 1962 44-20-7656.5000
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31.UK Research Resources Ltd 1986 44-20-7656.5555
32.Canada Angus Reid Group, Inc. 1979 1.613.241.5802
www.angusreid.com
33.Canada CF Group Inc. (ARC, Canadian Facts, 1932 1-416-
924.5751)
Burke International Research
1. France B.V.A. 1970 33-1-30.84.88.00 www.bva.fr
2. France CSA (CSA TMO Group) 1983 33-1-41.86.22.00 www.csa-
fr.com
3. France IFOP 1938 33-1-45.84.14.44 www.ifop.com
4. France Ipsos France 1975 33-1-53.68.28.28
5. France IRI-SECODIP 1993 33-1-30.06.22.00
6. France MEDIAMETRIE 1985 33-1-47.58.97.58
www.mediametrie.fr
7. France Research International 1952 33-1-44.06.65.65
www.researchint.com
8. France SECODIP / Groupe SOFRES 1969 33-1-30.74.80.80
www.secodip.com
9. Brazil IBOPE GROUP IBOPE Ad Hoc 1942 55-11-3066.1587
www.ibope.com.br
10. Brazil INDICATOR Pesquisa de Mercado Ltda. 1987 55-11-
3365.3000 www.indicator.com.br
11.Brazil Instituto de Pesquisas Datafolha 1983 55-11-224.3933
12.Brazil MARPLAN BRASIL Pesquisas Ltda. 1958 55-11-
3361.2033 www.marplan.com.br
13.India Indian Market Research Bureau (IMRB) 1970 91-22-
432.3636 www.imrbint.com
14.India Indica Research Pvt. Ltd. 1994 91-22-265.1741
www.indica.com
15.India MBL Rsch. & Consultancy Group Pvt. Ltd. 1987 91-40-
335.5433 www.mblindia.com
16.India ORG-MARG Research Ltd. 1961 91-22-218.6922
17.Indonesia PT AMI Indonesia 1996 62-21-521.3420
18.Japan Marketing Intelligence Corporation (MiC) 1960 81-
424.76.5164 www.micjapan.com
(K.K.Shakai-Chosa KenkyUsho)
1. Japan Video Research Ltd. 1962 81-3-5541.6506
www.videor.jp
2. Korea Hyundai Research Institute 1986 82-2-737.2685
3. Turkey Procon 1. Japan NIKKEI RESEARCH INC. 1970
81-3-5281.2891 www.nikkei-r.co.jp
4 GfK Research Services 1997 91-212-216.21.91
www.procongfk.com
TV Meters
It’s easy to get lost in the details of audience research, so today; I’d
like to begin with a very simple model for television research
quality assessment. Specifically, I believe that an acceptable research
service has to be thought of as having four quality components.
If you’re trying to decide whether to use a new source of research,
or if you’re trying to influence the priorities of an existing service,
you’ve got to be able to address these four issues.
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Good research always requires:
• A sample of the right people...
• In sufficient quantity for your purpose...
• Who provide accurate data about their behavior...
• To a supplier with high-quality process controls.
Take away any one of those, and you don’t have usable research.
The “who” questions-getting a sample of the right people to
participate in the research-often get the lion’s share of our attention.
Sometimes I think we go overboard with meter panels, especially,
sacrificing our knowledge of the other quality issues while putting
samples under the microscope. But there’s no question that
sampling issues are critical. We have to start off well, with a good
knowledge of the population we’re measuring. And of course,
there are response rates, the golden yardsticks of survey research.
I only wish that other quality concerns had such appealing summary
measures; maybe then we’d pay them more attention. Some people
think that if your sample appears to mirror the population
demographically, then your panel is “representative.” Panels and
surveys are frequently judged more on composition than
cooperation, and even getting appropriate data about cooperation
can sometimes be a challenge. But that’s not enough. We have to
insist on open disclosure of cooperation data for all major
segments of the population. There are many shortcuts to a balanced
panel, and we have to consider not just whether we have “enough,”
but whether the ones we have are representative of their
population segments.
The importance of sample size doesn’t need much additional
stress from me. But I’d like to remind you quickly that the overall
reliability of surveys could have multiple components. So be wary
of simplistic assumptions about sampling error. As for overall
sample size: Frankly, there’s never enough sample, with meters, or
diaries, or anything else. We’d always like to have more stable data.
The real issue, though, is reducing the total error in our surveys.
Having stable data isn’t very helpful if all you’ve done is make a
bias more consistent. Here’s the one that I wish were easier to
measure, because in my mind, it’s at least equal in importance to
the other three quality factors. As important as it is to have a good
sample of adequate size, it’s just as important to collect good data
from that sample. I place a number of distinct issues under this
heading. Obviously, we have the respondent’s ability and
willingness to provide accurate data:
• Can they answer the question, and does the question make
sense?
• Will they push their buttons, and what do they mean when
they do so?
• And just how much of this task will they tolerate, anyway?
Beyond the capabilities of the respondent lie the technical
capabilities of any equipment used in the survey or panel. There
are tremendous variations in meter equipment around the world,
each with its own strengths and weaknesses, and more variations
are coming.
For example, the BBM in Canada had rolled out an intriguing
new people meter design for use nationally and in local markets.
BBM has licensed a newly designed people meter from Taylor
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Nelson AGB, which uses picture matching as an alternative means
RESEARCH METHODOLOGY
of identifying the channels tuned.
One of the strengths of the BBM system was their open approach
to testing this new meter. This is the way to pursue changes in
technology-with an unusually rigorous test design, with an industry
steering committee representing all parts of the industry, and
conducted openly, with provision for two independent audits. It
doesn’t get much better than that- and it’s often much less. Which
leads nicely into the “how” issues. The methodology issues of
• Who,
• How Many, and
• What Data can only be considered?
in the applied context of how the work is actually being executed.
That’s why it’s critical to have a transparent, verifiable system in
place, with full disclosure of defined, objective policies and
procedures.
Obviously, research quality and usability can be very difficult to
assess. The details can quickly overwhelm you. But in the end, you
have to ask whether you’re really going to receive:
• A sample of the right people...
• In sufficient quantity for your purpose...
• Who provide accurate data about their behavior...
• To a supplier with high-quality process controls.
I would argue that you need to have knowledge, and an opinion,
on each of those four dimensions in order to make a good
decision. Those are some of my core beliefs about media research.
Let me segue from that to a few observations specific to meter
measurement.
Under the heading of “getting the right people,” television
measurement, is challenged in at least two ways, one obvious and
one not so obvious:
Response Rate
It would be easy to simply decry the fact that the television ratings
have response rates that are painfully low; they are low, and we’re
honestly not sure how much that affects us. It would also be easy
to make excuses. There do appear to be major factors beyond the
direct control of individual suppliers, causing an accelerating overall
trend toward lower cooperation. But that’s too easy-on us. There
are fixes to the declining response rate problem, but most of
them cost money. Cash incentives, for example, are still the most
potent way to affect response rates, and they work universally. But
they also directly affect the unit costs of a research supplier. For a
supplier to invest in response rates, they have to believe that it’s a
priority with customers.
Ability to Estimate the Universe
Another sampling challenge concerns our ability to estimate the
universe that we project our numbers to. Television measurement
is dependent on many non-government measures of the
population. Cable and satellite penetration and multi-set
distribution are just two of them. To at least some users, those
population estimates are of growing concern, too. One of the
greatest concerns is the extent to which the population can change
rapidly without us knowing about it.
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 Under the heading of “what”-of trying to collect better quality
RESEARCH METHODOLOGY
data from our samples-let me focus today just on meter
measurement of set tuning. Internationally, there’s a lot of effort
directed at better measurement of set tuning with meters. New
media technologies pose significant near-term threats to the current
generation of television set meters. The next challenge is direct-
to-home satellite, and digital television in general. That’s not
measured today.
Statistical Sampling
This is the same technique that pollsters use to predict the outcome
of elections. A “sample audience” is created, and then count how
many in that audience view each program. The researcher then
extrapolates from the sample and estimates the number of viewers
in the entire population watching the show. That’s a simple way
of explaining what is a complicated, extensive process. The
researcher relies mainly on information collected from TV set meters
that it installs, and then combines this information with huge
databases of the programs that appear on each TV station and
cable channel.
To find out who is watching TV and what they are watching, the
research company gets around 5,000 households to agree to be a
part of the representative sample for the national ratings estimates.
Then TVs, homes, programs, and people are measured in a variety
of ways.
To find out what people are watching, meters installed in the
selected sample of homes track when TV sets are on and what
channels they are tuned to. A “black box,” which is just a computer
and modem, gathers and sends all this information to the
company’s central computer every night. Then by monitoring what
is on TV at any given time, the company is able to keep track of
how many people watch which program.
Small boxes, placed near the TV sets of those in the national
sample, measure who is watching by giving each member of the
household a button to turn on and off to show when he or she
begins and ends viewing. This information is also collected each
night.
The national TV ratings largely rely on these meters. To ensure
reasonably accurate results, the company uses audits and quality
checks and regularly compares the ratings it gets from different
samples and measurement methods.
This research is very costly. Advertisers pay to air their commercials
on TV programs using rates that are based on these data.
Programmers also use these data to decide which shows to keep
and which to cancel. A show that has several million viewers may
seem popular to us, but a network may need millions more
watching that program to make it a financial success. That’s why
some shows with a loyal following still get canceled.
Using Diaries in Social Research
Biographers, historians and literary scholars have long considered
diary documents to be of major importance for telling history.
More recently, sociologists have taken seriously the idea of using
personal documents to construct pictures of social reality from
the actors’ perspective (see Plummer’s 1983 book Documents of
Life). In contrast to these ‘journal’ types of accounts, diaries are
used as research instruments to collect detailed information about
behaviour, events and other aspects of individuals’ daily lives.
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Self-completion diaries have a number of advantages over other
data collections methods. First, diaries can provide a reliable
alternative to the traditional interview method for events that are
difficult to recall accurately or that are easily forgotten. Second, like
other self-completion methods, diaries can help to overcome the
problems associated with collecting sensitive information by
personal interview. Finally, they can be used to supplement
interview data to provide a rich source of information on
respondents’ behaviour and experiences on a daily basis. The ‘diary
interview method’ where the diary-keeping period is followed by
an interview asking detailed questions about the diary entries is
considered to be one of the most reliable methods of obtaining
information.
The Subject Matter of Diary Surveys:
A popular topic of investigation for economists, market
researchers, and more recently sociologists, has been the way in
which people spend their time. Accounts of time use can tell us
much about quality of life, social and economic well being and
patterns of leisure and work. The ‘time-budget’ involved
respondents keeping a detailed log of how they allocated their
time during the day. More qualitative studies have used a “standard
day” diary, which focuses on a typical day in the life of an individual
from a particular group or community.
One of the most fruitful time-budget endeavors, initiated in the
mid 60s, has been the Multinational Time Budget Time Use
Project. Its aim was to provide a set of procedures and guidance
on how to collect and analyse time-use data so that valid cross-
national comparisons could be made
Two other major areas where diaries are often used are:
• Consumer expenditure and
• Transport planning research.
Other topics covered using diary methods are social networks,
health, illness and associated behaviour, diet and nutrition, social
work and other areas of social policy, clinical psychology and family
therapy, crime behaviour, alcohol consumption and drug usage,
and sexual behaviour. Diaries are also increasingly being used in
market research.
Using Diaries in Surveys
Diary surveys often use a personal interview to collect additional
background information about the household and sometimes
about behaviour or events of interest that the diary will not capture
(such as large items of expenditure for consumer expenditure
surveys). A placing interview is important for explaining the diary
keeping procedures to the respondent and a concluding interview
may be used to check on the completeness of the recorded entries.
Often retrospective estimates of the behaviour occurring over the
diary period are collected at the final interview.
Diary Design and Format
Diaries may be open format, allowing respondents to record
activities and events in their own words, or they can be highly
structured where all activities are pre-categorized. An obvious
advantage of the free format is that it allows for greater opportunity
to recode and analyse the data. However, the labour intensive
work required to prepare and make sense of the data may render
it unrealistic for projects lacking time and resources, or where the
sample is large. Although the design of a diary will depend on the
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detailed requirement of the topic under study, there are certain
design aspects, which are common to most. Below are sets of
guidelines recommended for anyone thinking about designing a
diary. Furthermore, the amount of piloting required to perfect the
diary format should not be under-estimated.
1. An A4 booklet of about 5 to 20 pages is desirable,
depending on the nature of the diary. Disappointing, as it
might seem, most respondents do not carry their diaries
around with them.
2. The inside cover page should contain a clear set of
instructions on how to complete the diary. This should
stress the importance of recording events as soon as possible
after they occur and how the respondent should try not to let
the diary keeping influence their behaviour.
3. A model example of a correctly completed diary should
feature on the second page.
4. Depending on how long a period the diary will cover, each
page denoting either a week, a day of the week or a 24 hour
period or less. Pages should be clearly ruled up as a calendar
with prominent headings and enough space to enter all the
desired information (such as what the respondent was
doing, at what time, where, who with and how they felt at
the time, and so on).
5. Checklists of the items, events or behaviour to help jog the
diary keeper’s memory should be printed somewhere fairly
prominent. Very long lists should be avoided since they may
be off-putting and confusing to respondents. For a
structured time budget diary, an exhaustive list of all
possible relevant activities should be listed together with the
appropriate codes. Where more than one type of activity is to
be entered, that is, primary and secondary (or background)
activities, guidance should be given on how to deal with
“competing” or multiple activities.
6. There should be an explanation of what is meant by the unit
of observation, such as a “session”, an “event” or a “fixed
time block”. Where respondents are given more freedom in
naming their activities and the activities are to be coded later,
it is important to give strict guidelines on what type of
behaviour to include, what definitely to exclude and the level
of detail required. Time budget diaries without fixed time
blocks should include columns for start and finish times for
activities.
7. Appropriate terminology or lists of activities should be
designed to meet the needs of the sample under study, and
if necessary, different versions of the diary should be used
for different groups.
8. Following the diary pages it is useful to include a simple set
of questions for the respondent to complete, asking, among
other things, whether the diary-keeping period was atypical in
any way compared to usual daily life. It is also good practice
to include a page at the end asking for the respondents’ own
comments and clarifications of any peculiarities relating to
their entries. Even if these remarks will not be systematically
analysed, they may prove helpful at the editing or coding
stage.
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Data Quality and Response Rates
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In addition to the types of errors encountered in all survey
methods, diaries are especially prone to errors arising from
respondent conditioning, incomplete recording of information
and under-reporting, inadequate recall, insufficient cooperation
and sample selection bias.
Diary Keeping Period
The period, over which a diary is to be kept needs to be long
enough to capture the behaviour or events of interest without
jeopardizing successful completion by imposing an overly
burdensome task for collecting time-use data, anything from one
to three day diaries may be used. Household expenditure surveys
usually place diaries on specific days to ensure an even coverage
across the week and distribute their fieldwork over the year to
ensure seasonal variation in earnings and spending is captured.
Reporting Errors
In household expenditure surveys it is routinely found that the
first day and first week of diary keeping shows higher reporting
of expenditure than the following days. This is also observed for
other types of behaviour and the effects are generally termed “first
day effects”. They may be due to respondents changing their
behaviour as a result of keeping the diary (conditioning), or
becoming less conscientious than when they started the diary.
Recall errors may also extend to ‘tomorrow’ diaries. Respondents
often write down their entries at the end of a day and only a small
minority are diligent (and perhaps obsessive!) diary keepers who
carry their diary with them at all times. Expenditure surveys find
that an intermediate visit from an interviewer during the diary
keeping period helps preserve ‘good’ diary keeping to the end of
the period.
Literacy
All methods that involve self-completion of information demand
that the respondent has a reasonable standard of literacy. Thus
the diary sample and the data may be biased towards the
population of competent diary keepers.
Participation
The best response rates for diary surveys are achieved when diary
keepers are recruited on a face-to-face basis, rather than by post.
Personal collection of diaries also allows any problems in the
completed diary to be sorted out on the spot. Success may also
depend on the quality of interviewing staff that should be highly
motivated, competent and well briefed. Appealing to respondent’s
altruistic nature, reassuring them of confidentiality and offering
incentives are thought to influence co-operation in diary surveys.
One research company gives a 10-pound postal order for
completion of their fourteen-day diary and other surveys offer
lottery tickets or small promotional items.
Coding, Editing and Processing
The amount of work required to process a diary depends largely
on how structured it is. For many large-scale diary surveys, the
interviewer while still in the field does part has the editing and
coding process. Following this is an intensive editing procedure,
which includes checking entries against information collected in
the personal interview. For unstructured diaries, involving coding
of verbatim entries, the processing can be very labour intensive; in
much the same way as it is for processing qualitative interview
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 transcripts. Using highly trained coders and a rigorous
RESEARCH METHODOLOGY
unambiguous coding scheme is very important particularly where
there is no clear demarcation of events or behaviour in the diary
entries. Clearly, a well-designed diary with a coherent pre-coding
system should cut down on the degree of editing and coding.
Relative Cost of Diary Surveys
The diary method is generally more expensive than the personal
interview, and personal placement and pick-up visits are more
costly than postal administration. The interviewers usually make
at least two visits and are often expected to spend time checking
the diary with the respondent. If the diary is unstructured, intensive
editing and coding will push up the costs. However, these costs
must be balanced against the superiority of the diary method in
obtaining more accurate data, particularly where the recall method
gives poor results. The ratio of costs for diaries compared with
recall time budgets are of the order of three or four to one
Computer Software for Processing and Analysis
Probably the least developed area relating to the diary method is
the computer storage and analysis of diary data. One of the
problems of developing software for processing and manipulating
diary data is the complexity and bulk of the information collected.
Although computer assisted methods may help to reduce the
amount of manual preparatory work, there are few packages and
most of them are custom built to suit the specifics of a particular
project. Time-budget researchers are probably the most advanced
group of users of machine-readable diary data and the structure
of these data allows them to use traditional statistical packages for
analysis. More recently, methods of analysis based on algorithms
for searching for patterns of behaviour in diary data are being
used. Software development is certainly an area, which merits future
attention. For textual diaries, qualitative software packages such as
The ETHNOGRAPH can be used to code them in the same way
as interview transcripts.
Archiving Diary Data
In spite of the abundance of data derived from diary surveys
across a wide range of disciplines, little is available to other
researchers for secondary analysis (further analysis of data already
collected). This is perhaps not surprising given that the budget for
many diary surveys does not extend to systematic processing of
the data. Many diary surveys are small-scale investigative studies
that have been carried out with very specific aims in mind. For
these less structured diaries, for which a common coding scheme
is neither feasible, nor possibly desirable, an answer to public
access is to deposit the original survey documents in an archive.
This kind of data bank gives the researcher access to original diary
documents allowing them to make use of the data in ways to suit
their own research strategy. However, the ethics of making personal
documents public (even if in the limited academic sense) have to
be considered
Internet as a Source of Data:
The expansion of the Internet over the past decade has provided
the researcher with a range of new opportunities for finding
information, networking, conducting research, and disseminating
research results.
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Through the use of tools such as online focus groups, electronic
mail, and online questionnaires, the Internet opens up new
possibilities for conducting research. It offers, for example:
1. Shorter timeframes for collecting and recording data: e-mail
messages can be saved and analyzed in qualitative data
packages, for example, while online surveys can be captured
directly into a database
2. The possibility of conducting interviews and focus groups by
e-mail, with related savings in costs and time
3. New “communities” to serve as the object of social scientific
enquiry.
4. Opportunities for including mixed multiple media in
questionnaires.On the other hand, these opportunities also
raise new challenges for the researcher,
Such as
• Problems of sampling
• The ethics of conducting research into online communities
• Physical access and skills required to use the technologies
involved
• Accuracy and reliability of information obtained from online
sources
• The changed chronology of interaction resulting from
asynchronous communication
Internet is a useful media to get valuable information and results
of various surveys. Access to computer-led data becomes handy
in solving many complex mysteries, related to the market place.
The 10 ‘C’s outlined here, provide criteria to be considered while
evaluating Internet resources:
1.Content
What is the intent of the content? Are the title and author
identified? Is the content “juried?” Is the content “popular” or
“scholarly”, satiric or serious? What is the date of the document
or article? Is the “edition” current? Do you have the latest version?
(Is this important?) How do you know?
2.Credibility
Is the author identifiable and reliable? Is the content credible?
Authoritative? Should it be? What is the purpose of the
information, that is, is it serious, satiric, humorous? Is the URL
extension .edu, .com, .gov or .org? What does this tell you about
the “publisher”?
3.Critical Thinking
How can you apply critical thinking skills, including previous
knowledge and experience, to evaluate Internet resources? Can
you identify the author, publisher, edition, etc. as you would with
a “traditionally” published resource? What criteria do you use to
evaluate Internet resources?
4.Copyright
Even if the copyright notice does not appear prominently, someone
wrote, or is responsible for, the creation of a document, graphic,
sound or image, and the material falls under the copyright
conventions. “Fair use” applies to short, cited excerpts, usually as
an example for commentary or research. Materials are in the “public
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domain” if this is explicitly stated. Internet users, as users of
print media, must respect copyright.
5.Citation
Internet resources should be cited to identify sources used, both
to give credit to the author and to provide the reader with avenues
for further research. Standard style manuals (print and online)
provide some examples of how to cite Internet documents,
although these standards are not uniform.
6.Continuity
Will the Internet site be maintained and updated? Is it now and
will it continue to be free? Can you rely on this source over time to
provide up-to-date information? Some good .edu sites have
moved to .com, with possible cost implications. Other sites offer
partial use for free, and charge fees for continued or in-depth use.
7.Censorship
Is your discussion list “moderated”? What does this mean? Does
your search engine or index look for all words or are some words
excluded? Is this censorship? Does your institution, based on its
mission, parent organization or space limitations, apply some
restrictions to Internet use? Consider censorship and privacy issues
when using the Internet.
8.Connectivity
If more than one user will need to access a site, consider each
users’ access and “functionality.” How do users connect to the
Internet and what kind of connection does the assigned resource
require? Does access to the resource require a graphical user
interface? If it is a popular (busy) resource, will it be accessible in
the time frame needed? Is it accessible by more than one Internet
tool? Do users have access to the same Internet tools and
applications? Are users familiar with the tools and applications?
Is the site “viewable” by all Web browsers?
9.Comparability
Does the Internet resource have an identified comparable print or
CD ROM data set or source? Does the Internet site contain
comparable and complete information? (For example, some
newspapers have partial but not full text information on the
Internet.) Do you need to compare data or statistics over time?
Can you identify sources for comparable earlier or later data?
Comparability of data may or may not be important, depending
on your project.
10. Context
What is the context for your research? Can you find “anything” on
your topic, that is, commentary, opinion, narrative, statistics and
your quest will be satisfied? Are you looking for current or historical
information? Definitions? Research studies or articles? How does
Internet information fit in the overall information context of
your subject? Before you start searching, define the research context
and research needs and decide what sources might be best to use
to successfully fill information needs without data overload.
Why use the Networks?
International computer networks provide a very cheap and effective
vehicle for collaboration and communication. Long distances and
time zones do not disrupt the process and your colleagues in
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other institutions or other parts of the world can work at the
RESEARCH METHODOLOGY
times that suit them. It is easy to share resources of all kinds
amongst a group of researchers and to make results available to as
many or as few people as you desire. Once you get used to map
reading on the Internet you will find that you have access to a huge
variety of resources including the expertise of the many other
network users, the power of many computers and programs and
the stored information from millions of documents.
Getting Connected
If you are working in a higher education institution you should
have easy access to a network connection of some sort. Since the
institution’s connection and use of it are paid for en bloc, you will
not incur any charges for using the network, though to start with
you may have to buy an add-on such as an Ethernet card for your
machine. If you are a researcher connected with, or working for, a
higher education institution but you do the majority of your
work at home, then you should talk to your computer support
staff about connecting to the institution via a modem, using your
home telephone. Most institutions will allow this, and once you
have made the initial connection you should be able to get “out”
onto the Internet without incurring any charges other than the
local phone call between your home and the institution.
If you are an independent researcher with no links to an academic
institution, then you must use a commercial service to access the
Internet. A list of such commercial services appears below. There
are various levels of service available from such providers. Make
sure that the service you get is the service you need - if you want to
be able to use telnet and FTP (described below) then don’t
subscribe to an e-mail only service.
Etiquette - a Sense of Timing
Most services on the Internet are made available through volunteer
effort. Many services, particularly in the USA, are very busy during
their working day. Please try to use US- based services in the
morning, before their day starts. You will find that access times are
much improved and that you get less “system busy” messages.
Interactive Access (telnet and PAD>)
Sometimes known as Terminal Access, this is the process in which
you make a connection between the machine on your desk and
another computer (a “remote host”). The information stored on
the remote computer appears on your screen. In this way you can
read news items and bulletin boards, search through library
catalogues and data archives, browse through articles and
sometimes books and, if you find them useful, ask the remote
computer to e-mail them to you. There are many thousands of
computers, which freely allow public access in this way.
If you have never used interactive access before try accessing the
NISS Gateway, a sort of information supermarket from whose
menus you can choose a variety of other services.
From a PAD> prompt type:
call uk.ac.niss
or make a telnet call to:
niss.ac.uk
If you don’t know how to make either of these calls please ask
your computer services.
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 The NISS Gateway is an example of a centrally funded, publicly
RESEARCH METHODOLOGY
accessible service. Other services only permit access once you or
your institution has paid a subscription. Probably the best known
such service in the UK is the BIDS ISI service run from the
University of Bath. If your academic institution subscribes to
BIDS, you can obtain a username and password from your library
or computing service. This allows you to search the Social Science
Citation Index looking for citations (references) quoted in articles
from several thousand journals, published from 1981 onwards.
BIDS is a service provided for the academic community, but there
are also commercial services, which require subscription and/or
make access charges. This article concentrates on using freely
accessible resources on the Internet with no charges attached.
The program, which allows you to interactively access other
computers on the Internet, is called telnet. You may be able to run
telnet directly from the machine on your desk, or alternatively you
may be able to run it from an account you have on a larger local
computer, perhaps the one that handles your e-mail.
Many sites are not yet able to use telnet directly, if you are in this
position you will probably access the UK JANET via a PAD>
prompt. The NISS Gateway at Bath runs a Guest Telnet Service to
allow you to use telnet to access the rest of the world via the
Internet. If you have a telnet name of a service you wish to call, at
your PAD> prompt type call uk.ac.niss then from the menus
choose:
General Services
and then:
NSF-Relay Guest Telnet Service
You will then be prompted for the name or the number of the
service you wish to call using telnet.
All services on the Internet have a unique number, which is called
the IP address (Internet Protocol). Most also have a name (the
Domain Name) which is a lot easier to remember. For example,
the NISS Gateway’s domain name is:
niss.ac.uk
And it’s IP address is:
196.63.76.1
When you are using telnet you can usually use either of these, they
will get you through to the same place. But sometimes, if you are
away from your home site, particularly abroad, or if the machine
which works out (“resolves”) which number matches which name
has gone wrong, then you will need to know the number. If you
are relying on reading your e-mail when you are away from home
it is always a good idea to have a note of the IP address (the
number) as well as the name.
E-mail and More
Many academics have discovered the advantages of using e- mail.
Your correspondent doesn’t have to be available to take your call
- she may be in a meeting or, if she’s on the other side of the
world, still asleep - yet your message will be waiting for her as
soon as she switches on her machine. E-mail allows quick question
and answer sessions, rapid revisions and corrections to documents
and is an ideal medium for collaboration and supervision.
Where e-mail really scores is in-group communication. A group
of geographically disparate researchers can continually consult and
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keep in contact using the discussion list facilities available over e-
mail. Your one message can be circulated to the whole group and
any replies or comments also seen by the whole group in a matter
of minutes. Messages are archived for future reference and some
systems also allow important files to be stored and retrieved by
list members. There is a general discussion list for UK sociologists.
To join this list sends an e-mail message to: socbb-
request@soc.surrey.ac.uk
Also there are many other academic discussion lists on the UK
service Mail base, and many thousands of lists on other systems
worldwide. A few lists that may be of interest to sociologists are
mentioned at the end of this article.
File Transfer
Anything that can be stored as a file on a computer can be transferred
over the networks from one computer to another. This includes
word-processed documents, datasets, software and graphics. File
transfer over the Internet is known as FTP (file transfer protocol).
Many sites on the Internet have set up repositories of files, which
are freely available for you to transfer. These repositories are known
as FTP Archives. The process of transfer is known as Anonymous
FTP because you don’t need to identify yourself with a password
in order to use such systems. If you can use telnet from your
machine then you can probably use ftp too.
Example of a file transfer session:
When the location of a file available for anonymous ftp is quoted
it will probably look something like this:
Filename: Readme
Site: ftp.bris.ac.uk
Directory: pub/info/networks/generic
To transfer this file to your local machine you would follow this
procedure:
At the system prompt type:
ftp ftp.bris.ac.uk
This will connect you to the ftp archive at the University of Bristol.
You will be prompted for your username, type: anonymous
You will then be asked for your password, it is polite to enter
your e-mail address e.g.:
nicky.ferguson@bristol.ac.uk
You should then see on your screen the prompt:
ftp>
Now type:
dir
This will give you a directory listing of the contents of the root or
base directory. Now type
cd pub/info/networks/generic
You have now changed into the appropriate directory, use dir
again to look at the contents. You will see that one of the files is
called README (note the capital letters - case is important in
such systems. Now type:
hash
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this asks the system to put hash symbols (#) on your screen while
it is working. This is reassuring - sometimes the process takes
several minutes. Now type:
get README
While the process is working the hash symbols will appear on
your screen. When the transfer is complete you will get a message
saying so. Leave the system by typing:
bye
and look for the file on your home system. It will explain to you
the rest of the contents of the directory:
pub/info/networks/generic. The directory contains a set of
practical exercises designed for social scientists to explore the
networks. You may want to print them out and investigate them
at your leisure.
Resources for Sociologists
CoombsQuest - Social Science Research Data Bank
• Collection of 21 databases on material specific to the Pacific
region and South and North East Asia. Includes papers,
bibliographies, directories and abstracts of theses. Server
points to other social science information sites around the
world.
Access
• telnet info.anu.edu.au login: info
Many files from the Coombs archives are available for file transfer,
using ftp:
sitename: unix.hensa.ac.uk
directory: pub/uunet/doc/papers/coombspapers
BIRON - Bibliographic Information Retrieval Online
• Online bibliographic details to the ESRC catalogue and
subject index. Contains over 3000 datasets including the
General Household Survey and Census of Great Britain.
• Access
• PAD> call uk.ac.essex.solb1 Login: biron Password: norib
or Telnet dasun.essex.ac.uk Login: biron Password: norib
Pen Pages
• An American information server concerning all aspects of
rural life, it contains several databases including MAPP - the
national Co-operative Extension family database. This is
provided by the Dept of Agricultural Economics and Rural
Sociology at Pennsylvania University and contains research
briefs, bibliographies, census data, reference materails,
publications, etc. Some is of a local nature but there is also
general interest material available. Server also hosts the Senior
Series Database and the 4-H Youth Development Database.
Access
• Telnet: psupen.psu.edu
Login: world
RAPID - Research Activities and Publications Information
Database
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• Information on the ESRC research awards and the
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surrounding publications resulting from these awards
(journals, audio-visual material, books, databases, software,
etc)
Access
• PAD> call uk.ac.ed.ercvax Username: rapid Password: rapid
or telnet ercvax.ed.ac.uk Username: rapid Password: rapid
Discussion Lists
When you join an e-mail discussion list it is often called subscribing
(but you don’t have to pay). You will then receive all the messages
that are sent to that list. To join a list you send a specific message
to the machine (or sometimes the person) that runs the list, NOT
to the list itself. Messages sent to the list itself are distributed to
ALL the list members. The lists below each appear with their
subscription address and the correct text of the e-mail message to
send. In each case replace first name last name with your names.
Social-Theory
• This list aims to provide a forum for the discussion of social
theory with the social sciences. Particular emphasis will be
placed upon the relationship between psychology and
sociology with special reference to the individual and social
processes. Subscription address: mailbase@mailbase.ac.uk
Message text: subscribe social-theory first name lastname
List Details
POR - Public Opinion Research
• Unmoderated discussion list for academics and professionals
interested in public opinion research, useful to researchers
currently conducting survey research projects.
Subscription address: listserv@unc.edu
Message text: subscribe por first name lastname
PSN - Progressive Sociologists Network
• International discussion list for sociologists concerned with
progressive issues and values such as civil rights struggles,
women’s rights, community development, etc. Membership
is mostly from the US, Canada and Western Europe.
Subscription address: listserv@csf.colorado.edu
Message text: subscribe psn firstname lastname
SOCORG-K - Social Organisation of Knowledge
Discussion
• Moderated discussion list for sociologists.
Subscription address: listserv@vm.utcc.utoronto.ca
Message text: subscribe socorg-k firstname lastname
SOS-DATA - Social science data discussion list
• Provides a forum for discussion of any topic related to social
science data. The list is used most frequently to ask for
references to sources of data on some particular subject but it
also includes announcements of conferences and new data
resources.
Subscription address: listserv@unc.edu
Message text: subscribe sos-data firstname lastname
Electronic Journal:
Psycoloquy
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 • Refereed electronic journal intended to implement peer
RESEARCH METHODOLOGY
review over the network. The journal is primarily for
psychologists but it is interdisciplinary in the topics covered
and includes articles, book reviews, queries and
announcements, etc.
Subscription address: listserv@pucc.princeton.edu
Message text: subscribe psych firstname lastname
Many files from the Psycoloquy journal are available for file
transfer, using ftp:
sitename: ftp: princeton.edu (128.112.128.1)
directory: /pub harnad
Secondary Analysis
Secondary analysis involves the use of existing data, collected for
the purposes of a prior study, in order to pursue a research interest,
which is distinct from that of the original work. In this respect,
secondary analysis differs from systematic reviews and meta-
analyses of qualitative studies, which aim instead to compile and
assess the evidence relating to a common concern or area of practice.
The approach may either be employed by researchers to re-use
their own data or by independent analysts using previously
established qualitative data sets.
Why do Secondary Analysis?
It has been contended that the approach can be used to generate
new knowledge, new hypotheses, or support for existing theories;
that it reduces the burden placed on respondents by negating the
need to recruit further subjects; and that it allows wider use of
data from rare or inaccessible respondents. In addition, it has
been suggested that secondary analysis is a more convenient
approach for particular researchers, notably students. It should
also be noted that use of the approach does not necessarily preclude
the possibility of collecting primary data. This may, for example,
be required to obtain additional data or to pursue in a more
controlled way the findings emerging from the initial analysis.
There may also be a need to consult the primary researchers in
order to investigate the circumstances of the original data generation
and processing.
Despite the interest in and arguments for developing secondary
analysis of qualitative data, the approach has not been widely
adopted to date. This raises questions about the desirability and
feasibility of particular strategies for secondary analysis of
qualitative data discussed below:
Methodological and Ethical Considerations:
Before highlighting some of the key practical and ethical issues,
which have been discussed in the literature, there are two
fundamental methodological issues to be considered.
1. Tenable
The first is whether secondary analysis of qualitative studies is
tenable, given that it is often thought to involve an inter-subjective
relationship between the researcher and the researched. In response,
it may be argued that even where primary data is gathered via
interviews or observation in qualitative studies, there may be more
than one researcher involved. Hence within the research team the
data still has to be contextualised and interpreted by those who
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were not present. A more radical response is to argue that the
design, conduct and analysis of both qualitative and quantitative
research are always contingent upon the contextualisation and
interpretation of subjects’ situation and responses. Thus, secondary
analysis is no more problematic than other forms of empirical
inquiry, all of which, at some stage, depend on the researcher’s
ability to form critical insights based on inter-subjective
understanding.
2. Origin
The second issue concerns the problem of where primary analysis
stops and secondary analysis starts. Qualitative research is an
iterative process and grounded theory in particular requires that
questions undergo a process of formulation and refinement over
time. For primary researchers re-using their own data it may be
difficult to determine whether the research is part of the original
enquiry or sufficiently new and distinct from it to qualify as
secondary analysis. For independent analysts re-using other
researchers’ data there are also related professional issues about
the degree of overlap between their respective works. There is no
easy solution to these problems except to say that greater awareness
of secondary analysis might enable researchers to more
appropriately recognise and define their work as such.
Compatibility of the Data with Secondary Analysis
Are the data amenable to secondary analysis?
This will depend on the ‘fit’ between the purpose of the analysis
and the nature and quality of the original data. Scope for additional
in-depth analysis will vary depending on the nature of the data;
for example, while tightly structured interviews tend to limit the
range of responses, designs using semi-structured schedules may
produce more rich and varied data. A check for the extent of
missing data relevant to the secondary analysis but irrelevant to
the original study may also be required; for example, where semi-
structured interviews involved the discretionary use of probes.
More generally, the quality of original data will also need to be
assessed.
Position of the Secondary Analyst
Was the analyst part of the original research team?
This will influence the decision over whether to undertake
secondary analysis and, if so, the procedures to be followed.
Secondary analysts require access to the original data, including
tapes and field notes, in order to re-examine the data with the new
focus in mind. This is likely to be easier if they were part of the
original research team. If not, then ideally they should also be able
to consult with the primary researchers in order to assess the
quality of the original work and to contextualise the material (rather
than rely on field notes alone). Further consultation may also be
helpful in terms of crosschecking the results of the secondary
analysis. Finally, whether conducting secondary analysis in an
independent capacity or not, some form of contractual agreement
between the secondary analyst and the primary researchers, data
archive managers, and colleagues involved in the primary research
but not in the secondary analysis may have to be negotiated.
Reporting of original and secondary data analysis Such is the
complexity of secondary analysis, that it is particularly important
that the study design, methods and issues involved are reported
in full. Ideally this should include an outline of the original study
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and data collection procedures, together with a description of the
processes involved in categorising and summarising the data for
the secondary analysis, as well as an account of how methodological
and ethical considerations were addressed.
Ethical Issue
How was consent obtained in the original study?
Where sensitive data is involved, informed consent cannot be
presumed. Given that it is usually not feasible to seek additional
consent, a professional judgment may have to be made about
whether re-use of the data violates the contract made between
subjects and the primary researchers. Growing interest in re-using
data make it imperative that researchers in general now consider
obtaining consent which covers the possibility of secondary
analysis as well as the research in hand; this is consistent with
professional guidelines on ethical practice.
Developing the Approach
To see if the potential of secondary analysis can be realised in
practice, developmental work still needs to be undertaken:
• First, there should be a more comprehensive review of the
literature on secondary analysis and studies, which have
explicitly (and perhaps implicitly) used this approach. This
could include examination of the methods used, as well as
the quality, value and impact of this work.
• Secondly, further work on the protocols for conducting
secondary analysis of qualitative data, particularly with regard
to the re-use of other researchers’ data should be carried out.
• Thirdly, there should be greater consideration of the issues
involved in the secondary analysis of single, multiple and
mixed data sets.
• Finally, some more specific guidelines are needed for
researchers about the ethical issues to be considered when
undertaking qualitative work that may be re-used in the
future
Conclusion
Despite growing interest in the re-use of qualitative data, secondary
analysis remains an under-developed and ill-defined approach.
Various methodological and ethical considerations pose a challenge
for the would-be secondary analyst, particularly those who were
not part of the primary research team. Further work to develop
this approach is required to see if the potential benefits can actually
be realised in practice.
Survey
This is an “information society.” That is, our major problems and
tasks no longer mainly center on the production of the goods and
services necessary for survival and comfort. Our “society,” thus,
requires a prompt and accurate flow of information on preferences,
needs, and behavior. It is in response to this critical need for
information on the part of the government, business, and social
institutions that so much reliance is placed on surveys.
Then,What is a Survey?
Today the word “survey” is used most often to describe a method
of gathering information from a sample of individuals. This
“sample” is usually just a fraction of the population being studied.
For example:
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• A sample of voters is questioned in advance of an election
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to determine how the public perceives the candidates and the
issues.
• A manufacturer does a survey of the potential market before
introducing a new product ... A government entity
commissions a survey to gather the factual information it
needs to evaluate existing legislation or to draft proposed
new legislation.
Not only do surveys have a wide variety of purposes, they also can
be conducted in many ways-including over the telephone, by mail,
or in person. Nonetheless, all surveys do have certain characteristics
in common.
Unlike a census, where all members of the population are studied,
surveys gather information from only a portion of a population
of interest -the size of the sample depending on the purpose of
the study.
In a bona fide survey, the sample is not selected haphazardly or
only from persons who volunteer to participate. It is scientifically
chosen so that each person in the population will have a
measurable chance of selection. This way, the results can be reliably
projected from the sample to the larger population.
Information is collected by means of standardized procedures so
that every individual is asked the same questions in more or less
the same way. The survey’s intent is not to describe the particular
individuals who, by chance, are part of the sample but to obtain a
composite profile of the population.
The industry standard for all reputable survey organizations is
that individual respondents should never be identified in reporting
survey findings. All of the survey’s results should be presented in
completely anonymous summaries, such as statistical tables and
charts.
How Large must the Sample Size be?
The sample size required for a survey partly depends on the statistical
quality needed for survey findings; this, in turn, relates to how the
results will be used.
Even so, there is no simple rule for sample size that can be used
for all surveys. Much depends on the professional and financial
resources available. Analysts, though, often find that a moderate
sample size is sufficient statistically and operationally. For example,
the well-known national polls frequently use samples of about
1,000 persons to get reasonable information about national
attitudes and opinions.
When it is realized that a properly selected sample of only 1,000
individuals can reflect various characteristics of the total population,
it is easy to appreciate the value of using surveys to make informed
decisions in a complex society such as ours. Surveys provide a
speedy and economical means of determining facts about our
economy and about people’s knowledge, attitudes, beliefs,
expectations, and behaviors.
Who Conducts Surveys?
We all know about the public opinion surveys or “polls” that are
reported by the press and broadcast media. They conduct surveys
on national public opinion on a wide range of current issues.
State polls and metropolitan area polls, often supported by a local
newspaper or TV station, are reported regularly in many localities.
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 The major broadcasting networks and national news magazines
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also conduct polls and report their findings.
The great majority of surveys, though, are not public opinion
polls. Most are directed to a specific administrative, commercial, or
scientific purpose. The wide variety of issues with which surveys
deal is illustrated by the following listing of actual uses
• Major TV networks rely on surveys to tell them how many
and what types of people are watching their programs
• Statistics Canada conducts continuing panel surveys of
children (and their families) to study educational and other
needs
• Auto manufacturers use surveys to find out how satisfied
people are with their cars
• The U.S. Bureau of the Census conducts a survey each
month to obtain information on employment and
unemployment in the nation
• The U.S. Agency for Health Care Policy and Research
sponsors a periodic survey to determine how much money
people are spending for different types of medical care
• Local transportation authorities conduct surveys to acquire
information on commuting and travel habits
• Magazine and trade journals use surveys to find out what
their subscribers are reading
• Surveys are conducted to ascertain who uses our national
parks and other recreation facilities.
Surveys provide an important source of basic scientific knowledge.
Economists, psychologists, health professionals, political scientists,
and sociologists conduct surveys to study such matters as income
and expenditure patterns among households, the roots of ethnic
or racial prejudice, the implications of health problems on people’s
lives, comparative voting behavior, and the effects on family life
of women working outside the home.
What are Some Common Survey Methods?
Surveys can be classified in many ways.
Size and type of sample.
Surveys also can be used to study either human or non-human
populations (e.g., animate or inanimate objects-animals, soils,
housing, etc.). While many of the principles are the same for all
surveys, the focus here will be on methods for surveying
individuals.
Many surveys study all persons living in a defined area, but others
might focus on special population groups - children, physicians,
community leaders, the unemployed, or users of a particular
product or service. Surveys may also be conducted with national,
state, or local samples.
Method of Data Collection
Surveys can be classified by their method of data collection. Mail,
telephone interview, and in-person interview surveys are the most
common. Extracting data from samples of medical and other
records is also frequently done. In newer methods of data
collection, information is entered directly into computers either by
a trained interviewer or, increasingly, by the respondent. One well-
known example is the measurement of TV audiences carried out
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by devices attached to a sample of TV sets that automatically
record the channels being watched.
Mail surveys can be relatively low in cost. As with any other survey,
problems exist in their use when insufficient attention is given to
getting high levels of cooperation. Mail surveys can be most
effective when directed at particular groups, such as subscribers to
a specialized magazine or members of a professional association.
Telephone interviews are an efficient method of collecting some
types of data and are being increasingly used. They lend themselves
particularly well to situations where timeliness is a factor and the
length of the survey is limited.
In-person interviews in a respondent’s home or office are much
more expensive than mail or telephone surveys. They may be
necessary, however, especially when complex information is to be
collected.
Some surveys combine various methods. For instance, a survey
worker may use the telephone to “screen” or locate eligible
respondents (e.g., to locate older individuals eligible for Medicare)
and then make appointments for an in-person interview.
What Survey Questions Do You Ask?
You can further classify surveys by their content. Surveys are
concerned with:
• Opinions and attitudes (such as a pre-election survey of
voters),
• Factual characteristics or behaviors (such as people’s health,
housing, consumer spending, or transportation habits).
Many surveys combine questions of both types. Respondents
may be asked if they have heard or read about an issue ... what
they know about it ... their opinion ... how strongly they feel and
why... their interest in the issue ... past experience with it ... and
certain factual information that will help the survey analyst classify
their responses (such as age, gender, marital status, occupation,
and place of residence).
Questions may be open-ended (“Why do you feel that way?”) or
closed (“Do you approve or disapprove?”). Survey takers may ask
respondents to rate a political candidate or a product on some
type of scale, or they may ask for a ranking of various alternatives.
The manner in which a question is asked can greatly affect the
results of a survey. For example, a recent NBC/Wall Street Journal
poll asked two very similar questions with very different results:
1. Do you favor cutting programs such as social security,
medicare, medicaid, and farm subsidies to reduce the budget
deficit? The results: 23% favor; 66% oppose; 11% no
opinion.
2. Do you favor cutting government entitlements to reduce the
budget deficit? The results: 61% favor; 25% oppose; 14% no
opinion.
The questionnaire may be very brief - a few questions, taking five
minutes or less - or it can be quite long- requiring an hour or more
of the respondent’s time. Since it is inefficient to identify and
approach a large national sample for only a few items of
information, there are “omnibus” surveys that combine the
interests of several clients into a single interview. In these surveys,
respondents will be asked a dozen questions on one subject, a
half dozen more on another subject, and so on.
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Because changes in attitudes or behavior cannot be reliably
ascertained from a single interview, some surveys employ a “panel
design,” in which the same respondents are interviewed on two
or more occasions. Such surveys are often used during an election
campaign or to chart a family’s health or purchasing pattern over a
period of time.
Who Works on Surveys?
The survey worker best known to the public is the interviewer
who calls on the telephone, appears at the door, or stops people at
a shopping mall.
Traditionally, survey interviewing, although occasionally requiring
long days in the field, was mainly part-time work and, thus, well
suited for individuals not wanting full-time employment or just
wishing to supplement their regular income.
Changes in the labor market and in the level of survey automation
have begun to alter this pattern - with more and more survey
takers seeking to work full time. Experience is not usually required
for an interviewing job, although basic computer skills have become
increasingly important for applicants.
Most research organizations provide their own training for the
interview task. The main requirements for interviewing are an
ability to approach strangers (in person or on the phone), to
persuade them to participate in the survey, and to collect the data
needed in exact accordance with instructions.
Less visible, but equally important are the in-house research staffs,
who among other things- plan the survey, choose the sample,
develop the questionnaire, supervise the interviews, process the
data collected, analyze the data, and report the survey’s findings.
In most survey research organizations, the senior staff will have
taken courses in survey methods at the graduate level and will
hold advanced degrees in sociology, statistics, marketing, or
psychology, or they will have the equivalent in experience.
Middle-level supervisors and research associates frequently have
similar academic backgrounds to the senior staff or they have
advanced out of the ranks of clerks, interviewers, or coders on the
basis of their competence and experience.
What about Confidentiality and Integrity?
The confidentiality of the data supplied by respondents is of
prime concern to all reputable survey organizations.
Several professional organizations dealing with survey methods
have codes of ethics that prescribe rules for keeping survey
responses confidential. The recommended policy for survey
organizations to safeguard such confidentiality includes:
• Using only number codes to link the respondent to a
questionnaire and storing the name-to-code linkage
information separately from the questionnaires
• Refusing to give the names and addresses of survey
respondents to anyone outside the survey organization,
including clients
• Destroying questionnaires and identifying information
about respondents after the responses have been entered
into the computer
• Omitting the names and addresses of survey respondents
from computer files used for analysis
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• Presenting statistical tabulations by broad enough categories
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so that individual respondents cannot be singled out.
What are Other Potential Concerns?
The quality of a survey is largely determined by its purpose and
the way it is conducted.
Most call-in TV inquiries (e.g., 900 “polls”) or magazine write-in
“polls,” for example, are highly suspect. These and other “self-
selected opinion polls (SLOPS)” may be misleading since
participants have not been scientifically selected. Typically, in SLOPS,
persons with strong opinions (often negative) are more likely to
respond.
Surveys should be carried out solely to develop statistical
information about a subject. They should not be designed to
produce predetermined results or as a ruse for marketing and
similar activities. Anyone asked to respond to a public opinion
poll or concerned about the results should first decide whether
the questions are fair.
Another important violation of integrity occurs when what appears
to be a survey is actually a vehicle for stimulating donations to a
cause or for creating a mailing list to do direct marketing.
References
Donald R. Cooper – Business Research Methods, Tata McGraw
–Hill Publication
Easterby-Smith M et al- Management Research-an introduction
(Sage Publications, 1991)
Gallagher, J. William, “Report Writing for Management”,
Addison-Wesley
Golen, P. Stevan, “Report Writing for Business and Industry”,
Business Communication Service
Kothari C R – Quantitative Techniques (Vikas Publishing
House 3rd ed.)
Levin R I & Rubin DS - Statistics for Management (Prentice
Hall of India, 2002)
Nargundkar R – Marketing Research Text and Cases (Tata
McGraw- Hill 2002)
Notes
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RESEARCH METHODOLOGY

LESSON 9:
TUTORIAL

Q1.Assume that you are the manufacturer of modules office __________________________________

systems and furniture as well as office organization elements 4. What is professor’s weakest point?
(desktop and wall organizers, filing systems, etc.) Your
_____________________________
company has been asked to propose an observational study
to examine the use of office space by white –collar and 5. What kind of class does the professor teach?
managerial workers for a large insurance company. This study ________________________________
will be part of a project to improve office efficiency and 6. Is this course required?___________________
paperwork flow. It is expected to involve the redesign of
office space and the purchase of new office furniture and Notes
organization elements.
a. what are the varieties of information that might be
observed?
b. Select a limited number of content areas for study, and
operationally define the observation acts that should
be measured.
Q2.You wish to analyze the pedestrian traffic that passes a given
store in a major shopping center. You are interested in
determining how many shoppers pass by this store, and you
would like to classify these shoppers on various relevant
dimensions. Any information you can secure should be
obtainable from observation alone.
a. What other information might you find useful to
observe?
b. How would you decide what information to collect?
c. Devise the operational definitions you would need
d. What would you say in your instructions to be
observers you plan to use?
e. How might you sample this shoppers traffic?
Q3.In a class project, students developed a brief self –
administered questionnaire by which they might quickly
evaluate a professor. One student submitted the following
instrument. Evaluate the questions asked and format of the
instrument
Professor Evaluation Form
1. Overall , how would you rate this professor ?
Good_________ Fair_______ Poor____
2. Does this professor
a: Have good class delivery?________________________
b: Know the subject?__________________________
c: Have a positive attitude toward the subject?__________
d: grade fairly?_________________
e: Have a sense of humor?____________
f: Use audiovisual case examples, or other classroom aids?
_______________
g: Return exams promptly?____________________
3. What is professor’s strongest point?

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LESSON 10:
QUESTIONNAIRE DESIGN
Students, today we shall be studying a very important part of data
collection i.e Questionnaire. As you are going to became managers
of future and you would be facing problems relating to decision
making and planning –the art of preparing the questonnaire will
help you in generating the desired information .
We will also be discussing various situations on various issues
relating to questionnaire mode of collecting data, like its advantages
and disadvantages, criteria of a good research design, types of
questions, bias in questions, nonresponse etc.
We know that the final step in preparing the survey is developing
the data collection instrument. The most common means of
collecting data are the interview and the self- or group-administered
questionnaire.
In the past, the interview has been the most popular data-
collecting instrument. Recently, the questionnaire has surpassed
the interview in popularity.
The Questionnaire-Pros and Cons
First of all it is important for you to understand the advantages
and disadvantages of the questionnaire as opposed to the personal
interview. This knowledge will allow you to maximize the
strengths of the questionnaire while minimizing its weaknesses.
The advantages of administering a questionnaire instead of
conducting an interview are:
The primary advantages of questionnaire are
i. it is economical in terms of money and time
ii. it gives samples which are more representative of population
iii. it generates the standardized information
iv. it provides the respondent the desired privacy
We will discuss these advantages of Questionnaire technique of
collecting primary data
1. Economical in Money and Time
The questionnaires will save your time and money.
• There is no need to train the interviewers, there by reducing
the time of operation and is economical.
• The questionnaires can be send to a large group and can be
collected simultaneously, however when personal interview is
done the interviewer has to go to each and every individual
seperately.
• The questions reach the respondends very efficiently. Finally,
the cost of postage should be less than that of travel or
telephone expenses.
Recent developments in the science of surveying have led to
incorporating computers into the interview process, yielding what
is commonly known as computer automated telephone interview
(or CATI) surveys. Advances in using this survey technique have
dramatically reshaped our traditional views on the time-intensive
nature and inherent unreliability of the interview technique.
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RESEARCH METHODOLOGY
2. Better Samples
Many surveys are constrained by a limited budget. Since a typical
questionnaire usually has a lower cost per respondent, you can
send it to more people within a given budget (or time) limit. This
will provide you with more representative samples.
3.Standardization
The questionnaire provides you with a standardized data-gathering
procedure.
• The effects of potential human errors (for example, one can
alter the pattern of question asking, calling at inconvenient
times, and biasing by “explaining”) can be minimized by
using a well-constructed questionnaire.
• The use of a questionnaire also eliminates any bias
introduced by the feelings of the respondents towards the
interviewer (or vice versa).
4. Respondent Privacy
• Although the point is debatable, most surveyors believe the
respondent will answer a questionnaire more frankly than he
would answer an interviewer, because of a greater feeling of
anonymity.
• The respondent has no one to impress with his/her answers
and need have no fear of anyone hearing them. To maximize
this feeling of privacy, it is important to guard, and
emphasize, the respondent’s privacy
The primary disadvantages of the questionnaire are discussed on
the grounds of:
i. non return
ii. mis-interpretation
iii. validity
We will discuss them in detail.
1. Non Returns
Non returns are questionnaires or individual questions that are
not answered by the people to whom they were sent.
For example,You may be surveying to determine the attitude of
a group about a new policy. Some of those opposed to it might
be afraid to speak out, and they might comprise the majority of
the non returns. This would introduce non-random (or systematic)
bias into your survey results, especially if you found only a small
number of the returns were in favour of the policy.
Non returns cannot be overcome entirely. What we can do is try to
minimize them. Techniques to accomplish this we will be studying
later on.
2. Misinterpretation
Misinterpretation occurs when the respondent does not
understand either the survey instructions or the survey questions.
If respondents become confused, they will either give up on the
survey (becoming a nonreturn) or answer questions in terms of
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 the way they understand it, but not necessarily the way you meant
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it. This would turn out to be more serious than non return ,
sometimes.
Your questionnaire’s instructions and questions must be able to
stand on their own and you must use terms that have commonly
understood meanings throughout the population under study.
If you are using novel terms, be sure to define them so all
respondents understand your meaning.
3. Validity
The third disadvantage of using a questionnaire is inability to
check on the validity of the answer.
Without observing the respondent’s reactions (as would be the
case with an interview) while completing the questionnaire, You
have no way of knowing the true answers to following questions
• Did the person you wanted to survey give the questionnaire
to a friend or complete it personally?
• Did the individual respond indiscriminately?
• Did the respondent deliberately choose answers to mislead
the surveyor?
Criteria of a Good Questionnaire
What is the secret of getting all strengths of questionnaire while
minimizing its weakness?
The secret to take advantage of the strengths of questionnaires
(lower costs, more representative samples, standardization, privacy)
while minimizing the number of non returns, misinterpretations,
and validity problems lies in the preparation of a survey
questionnaire .
The key to minimizing the disadvantages of the survey
questionnaire lies in the construction of the questionnaire itself.
You should remember that
• A poorly developed questionnaire contains the seeds of its
own destruction.
• Each of the three portions of the questionnaire – the cover
letter, the instructions, and the questions - must work
together to have a positive impact on the success of the
survey.
Cover Letter
The cover letter should explain to the respondent the purpose
of the your survey and it should motivate him to reply truthfully
and quickly.
• If possible, it should explain why the survey is important
to him, how he was chosen to participate, and who is
sponsoring the survey (the higher the level of sponsorship
the better).
• Also you will strongly stress on the confidentiality of the
results
• When you will enclose a well written cover letter, it will help
in minimizing both nonreturn and validity problems.
Instructions
• The cover letter should be followed by a clear set of
instructions explaining how to complete the survey and
where to return it.
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66
• If the respondents do not understand the mechanical
procedures necessary to respond to the questions, their
answers will be meaningless.
• If you do not want respondents to provide their names, say
so explicitly in the instructions, and tell them to leave the
NAME column blank
Set of Questions
The third and final part of the questionnaire is the set of
questions.
• Since the questions are the means by which you are going to
collect your data, they should be consistent with your survey
plan.
• They should not be ambiguous or encourage feelings of
frustration or anger that will lead to nonreturns or validity
problems.
Types of Questions
Before investigating the art of question writing, it will be useful to
examine the various types of questions.Cantelou (1964; p 57)
identifies four types of questions used in surveying.
• According to him the background question is used to
obtain demographic characteristics of the group being
studied, such as age, sex, grade, level of assignment, and so
forth.This information is used when you are categorizing
your results by various subdivisions such as age or grade.
Therefore, these questions should be consistent with your
data analysis plan.
• The second and most common type of question is the
multiple choice or closed-end question. It is used to
determine feelings or opinions on certain issues by allowing
the respondent to choose an answer from a list you have
provided .
• The intensity question, a special form of the multiple-choice
question, is used to measure the intensity of the
respondent’s feelings on a subject. These questions provide
answers that cover a range of feelings.
• The final type of question is the free response or open-end
question. This type requires respondents to answer the
question in their own words .It can be used to gather
opinions or to measure the intensity of feelings.
Multiple-choice questions are the most frequently used types of
questions in surveying today. It is prudent, therefore,we need to
concentrate primarily on factors relating to their application.
Questionnaire Construction
The complex art of question writing has been investigated by
many researchers
From their experiences, they offer valuable advice. Below are some
helpful hints typical of those that appear most often in texts on
question construction.
• Keep the language simple.
Analyze your audience and write on their level. Avoid the use of
technical terms. An appropriate corollary to Murphy’s Law in this
case would be:
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“ If someone can misunderstand something, they will”.
• Keep the questions short.
Long questions tend to become ambiguous and confusing.
A respondent, in trying to comprehend a long question, may
leave out a clause and thus change the meaning of the question.
• Keep the number of questions to a minimum.
There is no commonly agreed on maximum number of questions
that should be asked, but research suggests higher return rates
correlate highly with shorter surveys. Ask only questions that will
contribute to your survey. Apply the “So what?” and “Who cares?”
tests to each question. “Nice-to-know” questions only add to the
size of the questionnaire.
Having said this, keep in mind that you should not leave out
questions that would yield necessary data simply because it will
shorten your survey. If the information is necessary, ask the
question.
• Limit each question to one idea or concept.
A question consisting of more than one idea may confuse the
respondent and lead to a meaningless answer.
Consider this question: “Are you in favour of raising pay and
lowering benefits?” What would a yes (or no) answer mean?
• Do not ask leading questions.
These questions are worded in a manner that suggests an
answer.Some respondents may give the answer you are looking
for whether or not they think it is right. Such questions can alienate
the respondent and may open your questionnaire to criticism.A
properly worded question gives no clue as to which answer you
may believe to be the correct one.
Use subjective terms such as good, fair, and bad sparingly, if
at all.
These terms mean different things to different people. One
person’s “fair” may be another person’s “bad.” How much is
“often” and how little is “seldom?”
• Allow for all possible answers.
Respondents who cannot find their answer among your list will
be forced to give an invalid reply or, possibly, become frustrated
and refuse to complete the survey.
Wording the question to reduce the number of possible answers
is the first step. Avoid dichotomous (two-answer) questions
(except for obvious demographic questions such as gender).
If you cannot avoid them, add a third option, such as no opinion,
don’t know, or other. These may not get the answers you need
but they will minimize the number of invalid responses.
A great number of “don’t know” answers to a question in a fact-
finding survey can be a useful piece of information.
But a majority of other answers may mean you have a poor
question, and perhaps should be cautious when analyzing the
results.
• Avoid emotional or morally charged questions.
The respondent may feel your survey is getting a bit too personal!
• Understand the should-would question.
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Respondents answer “should” questions from a social or moral
RESEARCH METHODOLOGY
point of view while answering “would” questions in terms of
personal preference.
• Formulate your questions and answers to obtain exact
information and to minimize confusion.
For example, does “How old are you?” mean on your last or your
nearest birthday? By including instructions like “Answer all
questions as of (a certain date)”, you can alleviate many such
conflicts.
• Include a few questions that can serve as checks on the
accuracy and consistency of the answers as a whole.
Have some questions that are worded differently, but are soliciting
the same information, in different parts of the questionnaire.
These questions should be designed to identify the respondents
who are just marking answers randomly or who are trying to
game the survey (giving answers they think you want to hear).
If you find a respondent who answers these questions differently,
you have reason to doubt the validity of their entire set of
responses. For this reason, you may decide to exclude their response
sheet(s) from the analysis.
• Organize the pattern of the questions:
Place demographic questions at the end of the questionnaire.
• Have your opening questions arouse interest.
• Ask easier questions first.
• To minimize conditioning, have general questions
precede specific ones.
Group similar questions together.
• If you must use personal or emotional questions,
place them at the end of the questionnaire.
Pretest (Pilot test) the Questionnaire
This is the most important step in preparing your questionnaire.
The purpose of the pretest is to see just how well your cover letter
motivates your respondents and how clear your instructions,
questions, and answers are.
• You should choose a small group of people (from three to
ten should be sufficient) you feel are representative of the
group you plan to survey.
• After explaining the purpose of the pretest, let them read
and answer the questions without interruption.
• When they are through, ask them to critique the cover letter,
instructions, and each of the questions and answers.
Don’t be satisfied with learning only what confused or alienated
them.
• Question them to make sure that what they thought
something meant was really what you intended it to mean.
• Use the above 12 hints as a checklist, and go through them
with your pilot test group to get their reactions on how well
the questionnaire satisfies these points.
• Finally, redo any parts of the questionnaire that are weak.
Have your questionnaire neatly produced on quality paper. A
professional looking product will increase your return rate. A poorly
designed survey that contains poorly written questions will yield
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 useless data regardless of how “pretty” it looks. Finally, make
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your survey interesting

Let us now summarise what we have studied today.
• The questionnaire is the means for collecting your survey
data.
• It should be designed with your data collection plan in
mind.
• Each of its three parts the cover letter, instructions and
questions should take advantage of the strengths of
questionnaires while minimizing their weaknesses.
• Each of the different kinds of questions is useful for
eliciting different types of data, but each should be
constructed carefully with well- developed construction
guidelines in mind.
• Properly constructed questions and well-followed survey
procedures will allow you to obtain the data needed to check
your hypothesis and, at the same time, minimize the chance
that one of the many types of bias will invalidate your
survey results.
The types of bias which you will be encounted with when you
prepare and execute a questionnaire with be studied in the next
lecture.
References
Donald R. Cooper-Business Research Methods, Tata McGraw-
Hill Publication
Easterby-Smith M et al- Management Research-an introduction
(Sage Publications, 1991)
Levin R I & Rubin DS - Statistics for Management (Prentice
Hall of India, 2002)
Nargundkar R – Marketing Research Text and Cases (Tata
McGraw- Hill 2002)
Miller D C- Handbook of Research Design and Social
Measurement (Sage Publications, 1991)
Notes

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LESSON 11:
ISSUES IN QUESTIONNAIRE
Student’s today we will be continuing with the questionnaire
design. Today we will be studying the Intensity Questions , bias
in questions, bias in volunteer samples and levels of measurement
, reliability and validity of findings.
We have studied in the last lecture that the questionnaire is the
means for collecting your survey data. It should be designed with
your data collection plan in mind.
Each of its three parts should take advantage of the strengths of
questionnaires while minimizing their weaknesses. Each of the
different kinds of questions is useful for eliciting different types
of data, but each should be constructed carefully with well-
developed construction guidelines in mind.
Properly constructed questions and well-followed survey
procedures will allow you to obtain the data needed to check your
hypothesis and, at the same time, minimize the chance that one
of the many types of bias will invalidate your survey results.
Before studying the types of bias first we will deal with the Intensity
quest
Intensity Questions and the Likert Scale
As I have told you before,the intensity question is used to measure
the strength of a respondent’s feeling or attitude on a particular
topic.
Such questions allow you to obtain more quantitative information
about the survey subject.
Instead of a finding that 80 percent of the respondents favour a
particular proposal or issue, you can obtain results that show 5
percent of them are strongly in favour whereas 75 percent are
mildly in favour.
These findings are similar, but the second type of response
supplies more useful information.
The most common and easily used intensity (or scaled) question
involves the use of the Likert-type answer scale.
Likert-type answer scale
It allows the respondent to choose one of several (usually five)
degrees of feeling about a statement from strong approval to
strong disapproval. The “questions” are in the form of statements
that seem either definitely favourable or definitely unfavourable
toward the matter under consideration. The answers are given
scores (or weights) ranging from one to the number of available
answers, with the highest weight going to the answer showing
the most favorable attitude toward the subject of the survey.
Illustration
The following questions designed to measure the amount of
“anti- law” feelings this :
1. Almost anything can be fixed up in the courts if you have
enough money.
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RESEARCH METHODOLOGY
Strongly Disagree
1. Disagree
2. Undecided
3. Agree
4. Strongly Agree
2. On the whole, judges are honest.
Strongly Disagree
1. Disagree
2. Undecided
3. Agree
4. Strongly Agree
The weights (shown by the numbers below the answers) are not
shown on the actual questionnaire and, therefore, are not seen by
the respondents.
A person who feels that laws are unjust would score lower than
one who feels that they are just. The stronger the feeling, the
higher (or lower) the score.
The scoring is consistent with the attitude being measured.
Whether “agree” or “disagree” gets the higher weight actually makes
no difference.
But for ease in interpreting the results of the questionnaire, the
weighting scheme should remain consistent throughout the
survey.
One procedure for constructing Likert-type questions is as follows
(adapted from Selltiz, et al., 1963; pp 367-368):
1. You being an investigator collect a large number of
definitive statements relevant to the attitude being
investigated.
2. You conduct and score a pretest of your survey. The most
favourable response to the attitude gets the highest score for
each question. The respondent’s total score is the sum of the
scores on all questions.
3. If you are investigating more than one attitude on your
survey, intermix the questions for each attitude. In this
manner, the respondent will be less able to guess what you
are doing and thus more likely to answer honestly.
4. Randomly select some questions and flip-flop the Strongly
Agree-Strongly Disagree scale to prevent the respondent
from getting into a pattern of answering (often called a
response set).
The intensity question, with its scaled answers and average scores,
can supply quantitative information about your respondents’
attitudes toward the subject of your survey.
A number of studies have been conducted over the years
attempting to determine the limits of a person’s ability to
discriminate between words typically found on rating or intensity
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 scales. The results of this research can be of considerable value
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when trying to decide on the right set of phrases to use in your
rating or intensity scale. When selecting phrases for a 4-, 5-, 7-, or
9-point .
Likert scale, you should choose phrases that are far enough apart
from one another to be easily discriminated, while, at the same
time, keeping them close enough that you don’t lose potential
information.
You should also try to gauge whether the phrases you are using
are commonly understood so that different respondents will
interpret the meaning of the phrases in the same way.
An obvious example is shown with the following 3 phrases:
Strongly Agree, Neutral, Strongly Disagree.
• These are easily discriminated, but the gap between each
choice is very large.
• How would a person respond on this three-point scale if
they only agreed with the question being asked?
• There is no middle ground between Strongly Agree
and Neutral.
• The same thing is true for someone who wants to
respond with a mere disagree.
• Your scales must have enough choices to allow
respondents to express a reasonable range of attitudes
on the topic in question, but there must not be so
many choices that most respondents will be unable to
consistently discriminate between them.
Bias and How to Combat it
Like any scientist or experimenter, surveyors must be aware of
ways their surveys might become biased and of the available means
for combatting bias.
The main sources of bias in a questionnaire are:
• a non-representative sample –leading questions and non
returns
• question misinterpretation and mistrustful .
Now we will discuss these in detail.
Non-representative Sample
Surveyors can expose themselves to possible non-representative
sample bias in two ways.
1. The first is to actually choose an non-representative sample.
This bias can be eliminated by careful choice of the sample .
2. The second way is to have a large number of non- returns.
• The non-return bias (also called non-respondent bias) can
affect both the sample survey and the complete survey.
• The bias stems from the fact that the returned questionnaires
are not necessarily evenly distributed throughout the
sample. The opinions or attitudes expressed by those who
returned the survey may or may not represent the attitudes
or opinions of those who did not return the survey.
• It is impossible to determine which is true since the non-
respondents remain an unknown quantity.
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70
Ilustration
A survey shows that 60 percent of those returning questionnaires
favour a certain policy. If the survey had a 70 percent response rate
(a fairly high rate as voluntary surveys go), then
• the favourable replies are actually only 42 percent of those
questioned (60 percent of the 70 percent who replied), which
is less than 50 percent!
• Since little can be done to estimate the feelings of the non-
returnees, especially in a confidential survey, the only solution
is to minimize the number of non-returns.
The non returns can be minimized by:
• Use follow-up:These letters are sent to the non-respondents
after a period of a couple of weeks asking them again to fill
out and return the questionnaire. The content of this letter is
similar to that of the cover letter.
• Use high-level sponsorship
• People tend to reply to surveys sponsored by organizations
they know or respect. If possible, use the letterhead of the
sponsor (sponsoring the research) on the cover letter.
• Make your questionnaire attractive, simple to fill out,
and easy to read.
A professional product usually gets professional results.
• Keep the questionnaire as short as possible.
You are asking for a person’s time, so make your request as
small as possible
• Use your cover letter to motivate the person to return
the questionnaire
One form of motivation is the have the letter signed by an
individual known to be respected by the target audience for
your questionnaire.
In addition, make sure the individual will be perceived by the
audience as having a vested interest in the information
needed.
• Use inducements to encourage a reply.
These can range from a small amount of money attached to
the survey to an enclosed stamped envelope. A promise to
report the results to each respondent can be helpful. If you
do promise a report, be sure to send it.
Proper use of these techniques can lower the non-return rate
to acceptable levels.
Misinterpretation
The second source of bias is misinterpretations of questions.
• Misinterpretation of questions can be limited by clear
instructions, well constructed questions, and through
judicious pilot testing of the survey.
• Biased questions can also be eliminated by constructing the
questions properly and by using a pilot test.
• Finally, bias introduced by untruthful answers can be
controlled by internal checks and a good motivational cover
letter.
• Although bias cannot be eliminated totally, proper
construction of the questionnaire, a well-chosen sample,
follow- up letters, and inducements can help control it
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Bias in Volunteer Samples
Now we will illustrates the many diverse, and sometimes powerful
factors that influence survey findings as a result of using volunteers
in a survey.
The exclusive use of volunteers in survey research represents
another major source of bias to the surveyor - especially the new
surveyor.
• Although it may not be immediately evident,
• It is nonetheless empirically true that volunteers, as a group,
possess characteristics quite different from those who do not
generally volunteer.
• Unless the surveyor takes these differences into consideration
before choosing to use an exclusively volunteer sample, the
bias introduced into the data may be so great that the
surveyor can no longer confidently generalize the survey’s
findings to the population at large, which is usually the goal
of the survey.
Conclusions Warranting Maximum Confidence
1. Volunteers tend to be better educated than non- volunteers,
especially when personal contact between investigator and
respondent is not required.
2. Volunteers tend to have higher social-class status than non
volunteers, especially when social class is defined by
respondents’ own status rather than by parental status.
3. Volunteers tend to be more intelligent than non- volunteers
when volunteering is for research in general, but not when
volunteering is for somewhat less typical types of research
such as hypnosis, sensory isolation, sex research, small-group
and personality research.
4. Volunteers tend to be higher in need for social approval than
non -volunteers.
Conclusions Warranting Considerable Confidence
1. Volunteers tend to be more arousal- seeking than non-
volunteers, especially when volunteering is for studies of
stress, sensory isolation, and hypnosis.
2. Volunteers tend to be more unconventional than non-
volunteers, especially when volunteering is for studies of sex
behavior.
3. Females are more likely than males to volunteer for research
in general, more likely than males to volunteer for physically
and emotionally stressful research (e.g., electric shock, high
temperature, sensory deprivation, interviews about sex
behavior).
4. Volunteers tend to be less authoritarian than non-
volunteers.
5. Jews are more likely to volunteer than Protestants, and
Protestants are more likely to volunteer than Roman
Catholics.
6. Volunteers tend to be less conforming than non-volunteers
when volunteering is for research in general, but not when
subjects are female and the task is relatively “clinical” (e.g.,
hypnosis, sleep, or counseling research).
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Conclusions Warranting Some Confidence
RESEARCH METHODOLOGY
1. Volunteers tend to be from smaller towns than non-
volunteers, especially when volunteering is for questionnaire
studies.
2. Volunteers tend to be more interested in religion than non-
volunteers, especially when volunteering is for questionnaire
studies.
3. Volunteers tend to be more altruistic than non- volunteers.
4. Volunteers tend to be more self-disclosing than non -
volunteers.
5. Volunteers tend to be more maladjusted than non -
volunteers, especially when volunteering is for potentially
unusual situations (e.g., drugs, hypnosis, high temperature,
or vaguely described experiments) or for medical research
employing clinical rather than psychometric definitions of
psychopathology.
6. Volunteers tend to be younger than non- volunteers,
especially when volunteering is for laboratory research and
especially if they are female.
Conclusions Warranting Minimum Confidence
1. Volunteers tend to be higher in need for achievement than
non-volunteers, especially among American samples.
2. Volunteers are more likely to be married than non
volunteers, especially when volunteering is for studies
requiring no personal contact between investigator and
respondent.
3. Firstborns are more likely than later borns to volunteer,
especially when recruitment is personal and when the research
requires group interaction and a low level of stress.
4. Volunteers tend to be more anxious than non -volunteers,
especially when volunteering is for standard, unstressful
tasks and especially if they are college students.
5. Volunteers tend to be more extraverted than non- volunteers
when interaction with others is required by the nature of the
research.
Borg and Gall (1979) have suggested how surveyors might use
this listing to combat the effects of bias in survey research. For
example, they suggest that:
The degree to which these characteristics of volunteer samples
affect research results depends on the specific nature of the
investigation.
For example, a study of the level of intelligence of successful
workers in different occupations would probably yield spuriously
high results if volunteer subjects were studied, since volunteers
tend to be more intelligent than non-volunteers
On the other hand, in a study concerned with the cooperative
behavior of adults in work-group situations, the tendency for
volunteers to be more intelligent may have no effect on the results,
but the tendency for volunteers to be more sociable could have a
significant effect.
It is apparent that the use of volunteers in research greatly
complicates the interpretation of research results and their general
ability to the target population, which includes many individuals
who would not volunteer.
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 Appendix – A • over 60
RESEARCH METHODOLOGY

Sample Questionnaires 8. Other comments:Created by Women’s Enterprise Society of

( Market Research)
In each of these cases, the business owners gain valuable
information to help them make major decisions about their
businesses. Remember that if the results of the survey aren’t very
positive, you need to find out WHY. The questionnaire is used as
a guide. It doesn’t mean you can’t go into
business.
A. The first questionnaire is for a select group, the customers of
Speedy Photos. The owner conducted the survey during a one
week period, reaching both weekday and weekend customers.
Speedy Photo Survey
In order for us to serve our customers better, we would like to
find out what you think of us. Please take a few minutes to
answer the following questions while your photographs are being
printed. Your honest opinions, comments and suggestions are
extremely important to us.
Thank you,
Speedy Photo
1.Do you live/work in the area (circle one or both)
• Close to home
• Close to work
2. Why did you choose Speedy Photo (circle all that apply)
• Convenient
BC 2
B. This survey was done by a business man interested in
opening public storage buildings.Before he committed any
time and money to the project, he sent a questionnaire to
consumers within a 15 mile radius of the proposed site.
Public Storage Questionnaire
1. Are you presently renting any public storage space? Yes
_____ No_____ If no then go to question 2
If yes, then continue with 1a.
1a.Where are you currently renting storage space (name and
address)
1b. How many times a month do you visit your storage
space? _______
1c. Is your storage space heated? Yes ______ No______
1d. Approximately how much space are you renting?
__________square feet
1e. Do you think you’ll need additional space in the future
Yes ______ No ______
1f. Are there any changes or improvements you would like to
see in your present storage space arrangement? If yes, what
would you like to see?
2. Are you planning on using any public storage space? Yes
______ No ______

• Good service 2a.If you are planning to rent public storage space or may rent
such space, how far of a distance are you willing to travel to
• Quality use your space? ______miles
• Full-service photography shop 2b.Approximately what size storage space would you need?
• Other ______square feet
3. How did you learn about us? (circle one) 2c. How much monthly rent would you be willing to pay?
• newspaper $______per square foot/month
• flyer/coupon 2d.Would you require heat for your space?
• passing by Name:
• recommended by someone Title:
• other Address:
4. How frequently do you have film printed? (please estimate) Thank you very much for your co-operation
• ______ time per month Created by Women’s Enterprise Society of BC 3
• ______ other C. This questionnaire was developed by a woman who was
5. Which aspect of our photography shop do you think needs interested in selling southwestern jewelry made by Native
improvement? Indians.
Southwestern Jewelry Questionnaire
6. Our operating hours are from 8 am to 5:30 pm weekdays 1. Have you ever purchased or received southwestern jewelry?
and Saturdays from 9:30 am to 6 pm. We are closed on Yes ______ No ______
Sundays and legal holidays. What changes in our operating 2. Have you ever purchased or received southwestern jewelry
hours would be better for you? made by native Indians?
7. Your age (circle one) Yes ______ No ______
• under 25 If Yes, what type of jewelry?
• 26-39
• 40-59

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72 11.556
 Necklace____ Ring _____ Bracelet _____ Earnings _____ 4. Do you believe that our competitors prices are too high?

RESEARCH METHODOLOGY
Other _____ (two-choice)_____ Yes _____ No
3. Would you be interested in purchasing the above mentioned 5. What price would you be willing to pay for this product/
jewelry made by native Indians? service? (two-choice) Note: This is an important question to
Yes ______ No ______ ask because the answer will affect one’s sales revenue
projections ____ $10 - 20 ___$20 - 30
4. Do you know where to shop for such jewelry? Yes ______
No ______ 6. Which of the following services would you like to see
offered? Choose one. (multiple choice) ____ loans program
5. When buying jewelry, what do you value the most? On a
____ mentoring ____ counselling ____ research ____
scale of 1 through 5, list in order according to your
other
preference. One represents your most valued choice.
Craftsmanship_____ Cost _____ Uniqueness _____ Other Examples of Poor Survey Questions
_____ Do you like this hotel?
D. The last questionnaire was developed by a woman who (This does not give any valuable information, but it could be re-
wanted to open a fitness center and offer one-on-one worded, “What do you like about this hotel, what don’t you like
training about this hotel?)
Fitness Center Questionnaire How do you rate the service received?
1. Do you exercise Yes ______ No ______ ____ poor ____ fair ____ good ____ very good ____ excellent
If no, please answer questions to Part A (This should have an even number of choices)
If yes, please answer questions to Part B Which of these services would you be interested in?
A. Please check reasons for not exercising: ____ loans ____ mentoring ____ business counselling ____
information referral
____Lack of time ____Lack of motivation ____Cost
(This question should have an “other” category)
____No convenient fitness centers ____medical reasons
What beverages do you drink?
B. Check the type of exercise you do:
____ Milk ____ coke ____ non-cola drink ____ coffee ____ tea
____aerobic ____Nautilus ____Free weights
____ juice
____running ____Swimming
(This question is too broad. Most of us will have drunk some of
____Other, please specify these at some time. Is the respondent to check a number of boxes
____________________________ or only one?
C. Check you age group
Source
_____under 25 _____ 26-35 _____over 35 www.Wesbc01companyELibraryMarketResearchSample
D. Where do you normally exercise? Questionnaires.pdf
_____ at home _____ fitness center Notes
E. How far do you live from ( town of proposed center)?
_____ in town _____ 10-15 miles _____ out of town
F. Do you think your town needs a fitness center? Yes _____
No _____
G. Would you be interested in one -on -one training? Yes
_____ No _____
H. Please note any other suggestions or comments you might
have. Created by Women’s Enterprise Society of BC 4
Examples of Good Survey Questions
1. How do you rate the convenience of our location? (ranking)
_____ poor _____ good _____ very good _____ excellent
2. Please rank the following factors in the order of important to
you when making a buying decision for this service (1 being
most important, 5 being lease important) (multiple choice &
ranking)____ price ____ referral ____ location ____ availability
____ guarantee ____ other
3. Are there any other services you would like to see offered?
(open-ended)

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RESEARCH METHODOLOGY

LESSON 12:
MEASUREMENT & SCALING

Levels of Measurement
We know that the level of measurement is a scale by which a
variable is measured. For 50 years, with few detractors, science
has used the Stevens (1951) typology of measurement levels
(scales). There are three things, which you need to remember about
this typology: Any thing that can be measured falls into one of
the four types
The higher the level of measurement, the more precision in
measurement and every level up contains all the properties of the
previous level. The four levels of measurement, from lowest to
highest, are as follows:
• Nominal
• Ordinal
• Interval
• Ratio
• o Most opinion and attitude scales or indexes in the social
sciences are ordinal in nature
Interval Level of Measurement
The interval level of measurement describes variables that have
more or less equal intervals, or meaningful distances between
their ranks. For example, if you were to ask somebody if they
were first, second, or third generation immigrant, the assumption
is that the distance, or number of years, between each generation
is the same.
Ratio Level of Measurement
The ratio level of measurement describes variables that have equal
intervals and a fixed zero (or reference) point. It is possible to
have zero income, zero education, and no involvement in crime,
but rarely do we see ratio level variables in social science since it’s
almost impossible to have zero attitudes on things, although
“not at all”, “often”, and “twice as often” might qualify as ratio
level measurement.
Advanced statistics require
• At least interval level measurement, so the researcher always
strives for this level,
• Accepting ordinal level (which is the most common) only
when they have to.
• Variables should be conceptually and operationally defined
with levels of measurement in mind since it’s going to affect
the analysis of data later

Types of Measurement Scales

Ordinal and nominal data are always discrete. Continuous data
has to be at either ratio or interval level of measure Now let us
discuss these in detail:
Nominal Level of Measurement
Nominal variables include demographic characteristics like sex,
race, and religion. The nominal level of measurement describes
variables that are categorical in nature. The characteristics of the
data you’re collecting fall into distinct categories:
• If there are a limited number of distinct categories (usually
only two), then you’re dealing with a dichotomous variable.
• If there are an unlimited or infinite number of distinct
categories, then you’re dealing with a continuous variable.
Ordinal Level of Measurement
• The ordinal level of measurement describes variables that can
be ordered or ranked in some order of importance.
• It describes most judgments about things, such as big or
little, strong or weak.

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Figure: Levels Of Measurement
Reliability and Validity
For a research study to be accurate, its findings must be both
reliable and valid.
Reliability
Research means that the findings would be consistently the same
if the study were done over again
Validity
A valid measure is one that provides the information that it was
intended to provide. The purpose of a thermometer, for example,
is to provide information on the temperature, and if it works
correctly, it is a valid thermometer.
A study can be reliable but not valid, and it cannot be valid without
first being reliable. There are many different threats to validity as
well as reliability but an important early consideration is to ensure
you have internal validity.
Not Reliable (so not valid either)
Reliable but not Valid
This means that you are using the most appropriate research design
for what you’re studying (experimental, quasi-experimental,
survey, qualitative, or historical), and it also means that you have
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screened out spurious variables as well as thought out the possible
RESEARCH METHODOLOGY
contamination of other variables creeping into your study.
Anything you do to standardize or clarify your measurement
instrument to reduce user error will add to your reliability.
It’s also important consider the time frame that is appropriate for
what you’re studying as soon as possible. Some social and
psychological phenomena (most notably those involving
behaviour or action) lend themselves to a snapshot in time.
If so, your research need only be carried out for a short period of
time, perhaps a few weeks or a couple of months. In such a case,
your time frame is referred to as cross-sectional. Sometimes, cross-
sectional research is criticized as being unable to determine cause
and effect A longer time frame is called when cross-sectional data
fails to depict the cause- effect relationship, one that is called
longitudinal, which may add years onto carrying out your research.
There are many different types of longitudinal research, such as
those that involve time-series (such as tracking a third world nation’s
economic development over four years or so). The general rule is
to use longitudinal research the greater the number of variables
you’ve got operating in your study and the more confident you
want to be about cause and effect.
Methods of Measuring Reliability
Now, the question arises that how will you measure the reliability
of a particular measure? There are four good methods of measuring
reliability:
• Test-retest
• Multiple forms
• Inter-rater
• Split-half
• Test-retest
Test-retest
The Test Retest in the same group technique is to administer your
test, instrument, survey, or measure to the same group of people
at different points in time. Most researchers administer what is
called a pretest for this, and to troubleshoot bugs at the same
time.
All reliability estimates are usually in the form of a correlation
coefficient, so here, all you do is calculate the correlation coefficient
between the two scores of each group and report it as your reliability
coefficient.
Multiple Forms
The multiple forms technique has other names, such as parallel
forms and disguised test-retest, but it’s simply the scrambling or
mixing up of questions on your survey, for example, giving it to
the same group twice. It’s a more rigorous test of reliability.
Reliable AND Valid
Inter-rater
Inter-rater reliability is most appropriate when you use assistants
to do interviewing or content analysis for you. To calculate this
kind of reliability, all you do is report the percentage of agreement
on the same subject between your raters, or assistants.
Split-half
Taking half of your test, instrument, or survey, and analyzing
that half as if it were the whole thing estimate split-half reliability.
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 Then, you compare the results of this analysis with your overall
RESEARCH METHODOLOGY
analysis.
Methods of Measuring Validity
Once you find that your measurement of variable under study is
reliable, you will want to measure its validity. There are four good
methods of estimating validity:
• Face
• Content
• Criterion
• Construct
Face Validity
Face validity is the least statistical estimate (validity overall is not as
easily quantified as reliability) as it’s simply an assertion on the
researcher’s part claiming that they’ve reasonably measured what
they intended to measure. It’s essentially a “take my word for it”
kind of validity. Usually, a researcher asks a colleague or expert in
the field to vouch for the items measuring what they were intended
to measure.
Content Validity
Content validity goes back to the ideas of conceptualization and
operationalization. If the researcher has focused in too closely on
only one type or narrow dimension of a construct or concept,
then it’s conceivable that other indicators were overlooked. In
such a case, the study lacks content validity Content validity is
making sure you’ve covered all the conceptual space.
There are different ways to estimate it, but one of the most
common is a reliability approach where you correlate scores on
one domain or dimension of a concept on your pretest with
scores on that domain or dimension with the actual test.
Another way is to simply look over your inter-item correlations.
Criterion Validity
Criterion validity is using some standard or benchmark that is
known to be a good indicator. There are different forms of
criterion validity:
• Concurrent validity is how well something estimates actual
day-by-day behavior;
• Predictive validity is how well something estimates some
future event or manifestation that hasn’t happened yet. It is
commonly found in criminology.
Construct Validity
Construct validity is the extent to which your items are tapping
into the underlying theory or model of behavior. It’s how well
the items hang together (convergent validity) or distinguish
different people on certain traits or behaviors (discriminant
validity). It’s the most difficult validity to achieve. You have to
either do years and years of research or find a group of people to
test that have the exact opposite traits or behaviors you’re interested
in measuring.
Attitude Measurement
Many of the questions in a questionnaire are designed to measure
attitudes. Attitudes are a person’s general evaluation of something.
Customer attitude is an important factor for the following reasons:
• Attitude helps to explain how ready one is to do something.
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• Attitudes do not change much over time
• Attitudes produce consistency in behavior.
• Attitudes can be related to preferences.
Attitudes can be measured using the following procedures:
• Self-reporting - subjects are asked directly about their
attitudes. Self-reporting is the most common technique used
to measure attitude.
• Observation of behaviour - assuming that one’s behaviour
is a result of one’s attitudes, attitudes can be inferred by
observing behaviour. For example, one’s attitude about an
issue can be inferred by whether he/she signs a petition
related to it.
• Indirect techniques - use unstructured stimuli such as word
association tests.
• Performance of objective tasks - assumes that one’s
performance depends on attitude. For example, the subject
can be asked to memorize the arguments of both sides of
an issue. He/she is more likely to do a better job on the
arguments that favor his/her stance.
• Physiological reactions - subject’s response to a stimulus is
measured using electronic or mechanical means. While the
intensity can be measured, it is difficult to know if the
attitude is positive or negative.
• Multiple measures - a mixture of techniques can be used to
validate the findings; especially worthwhile when self-
reporting is used.There are several types of attitude rating
scales:
Attitude Measurement
Many of the questions in a marketing research survey are designed
to measure attitudes. Attitudes are a person’s general evaluation
of something. Customer attitude is an important factor for the
following reasons:
• Attitude helps to explain how ready one is to do something.
• Attitudes do not change much over time.
• Attitudes produce consistency in behavior.
• Attitudes can be related to preferences.
Scaling Defined
Scaling is a “procedure for the assignment of numbers (or other
symbols) to a property of objects in order to impart some of the
characteristics of numbers to the properties in question.”1 Thus,
one assigns a number scale to the various levels of heat and cold
and call it a thermometer.
Response Methods
Questioning is a widely used stimulus for measuring concepts. A
manager may be asked his or her views concerning an employee.
The response is,” a good machinist,” “a troublemaker,” “a union
activist,” “reliable,” or “a fast worker with a poor record of
attendance.” These answers represent different frames of reference
for evaluating the worker and are often of limited value to the
researcher.
Two approaches improve the usefulness of such replies. First,
various properties may be separated arid the respondent asked to
judge each specific facet. Here, several questions are substituted for
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a single one. Second, we can replace the free-response reply with Example of a Likert Scale

RESEARCH METHODOLOGY
structuring devices. How would you rate the following aspects of your food store?
To quantify dimensions that are essentially qualitative, rating scales Extremely Extremely
or ranking scales are used. Important unimportant
Rating Scales Service 1 2 3 4 5 6 7
One uses rating scales to judge properties of objects without Check outs 1 2 3 4 5 6 7
reference to other similar objects. These ratings may be in such Bakery 1 2 3 4 5 6 7
forms as “like-dislike,” “approve-indifferent disapprove,” or other Deli 1 2 3 4 5 6 7
classifications using even more categories. There is little conclusive
Semantic Differential scale
support for choosing a three-point scale over scales with five or
A semantic differential scale is constructed using phrases describing
more points. Some researchers think that more points on a rating
attributes of the product to anchor each end. For example, the left
scale provide an opportunity for greater sensitivity of measurement
end may state, “Hours are inconvenient” and the right end may
and extraction of variance. The most widely used scales range
state, “Hours are convenient”. The respondent then marks one
from three to seven points, but it does not seem to make much
of the seven blanks between the statements to indicate his/her
difference which number is used-with two exceptions.4 First, a
opinion about the attribute.
larger number of scale points is needed to produce accuracy with
single-item versus multiple-item scales. Second, in cross-cultural The process entitled Semantic Differential employs a similar
measurement, the culture may condition respondents to a standard approach as the Likert scaling in that it seeks a range of responses
metric-a ten-point scale in Italy. between extreme polarities but it seeks to place the ordinal range
of responses between two keywords expressing opposite “ideas”
Ranking Scales
or concepts.Bobbie’s illustration provides the best illustration of
In ranking scales, the subject directly compares two or more objects
the concept.
and makes choices among them. Frequently, the respondent is
asked to select one as the “best” or the “most preferred.” When
there are only two choices, this approach is satisfactory, but it often
results in “ties” when more than two choices are found. For Semantic Differential: Feelings about Musical Selections
example, respondents are asked to select the most preferred among
three or more models of a product. Assume that 40 percent choose Very Some- Neither Some- Very
Much what what Much
model A, 30 percent choose model B. and 30 percent choose model
C. “Which is, the preferred model?” The analyst would be taking Enjoyable Unenjoyable

a risk to suggest that A is most preferred. Perhaps that

interpretation is correct, but 60 percent of the respondents chose Simple Complex

some model other than A. Perhaps all B and C voters would place
A last, preferring either B or C to it. This ambiguity can be avoided Discordant Harmonic
by using some of the techniques described in this section.
Some of the measurement scales are discussed below:
Traditional Modern

Equal-appearing Interval Scaling

In this scale a set of statements are assembled. These statements
are selected according to their position on an interval scale of
favorableness. Statements are chosen that has a small degree of
dispersion. Respondents then are asked to indicate with which
statements they agree.
Likert Method of Summated Ratings
In this scale a statement is made and the respondents indicate
their degree of agreement or disagreement on a five-point scale
(Strongly Disagree, Disagree, Neither Agree Nor Disagree, Agree,
Strongly Agree). It actually extends beyond the simple ordinal
choices of “strongly agree”, “agree”, “disagree”, and “strongly
disagree” In fact, Likert scaling is initially assigned through a
process that calculates the average index score for each item in an
index and subsequently ranks them in order of intensity (recall
the process for constructing Turnstone scales). Once ordinality
has been assigned, the assumption is that a respondent choosing
a response weighted with say a 15 out of 20 in an increasing scale
of intensity is placed at that level for the index.
One of the first things that strike you is the highly interpretative
nature of Bobbie’s example. Choices such as “enjoyable” and “un
enjoyable” simply reflect preference, but the other choices are
sufficiently ambiguous as to invite imprecise understanding.
If you are seeking nothing more than attitudinal information to
an abstract social artifact such as a piece of music, the process of
semantic differential may be usable. Otherwise, its ambiguity in
application remains problematic.
As with the Likert, Bogardus and Thurstone scales, Guttman
scaling seeks to place indicators into an ordinal progression from
“weak” indicators to “strong” ones (well, that’s the difference
between a scale and an index in the first place).
Similarly, the assumption that a respondent indicating a given
level of preference, attitude or belief will also demonstrate all
“weaker” indicators of the same thing.
However, the premise of the Guttman scale extends even further,
in that it examines all of the responses to the survey and separates
out the number of responses that do not exactly reflect the scalar

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11.556 77
 pattern; that is the number of response sets that do not reflect the Clean ___ ___ ___ ___ ___ dirty
RESEARCH METHODOLOGY

assumption that a respondent choosing one level of response Bright ___ ___ ___ ___ ___ dark
would give the same type of response to all inferior levels.
Low quality ___ ___ ___ ___ __high quality
The number of response sets that violate the scalar pattern is
compared to the number that do reflect the pattern and what is Conservative ___ ___ ___ ___ __innovative
referred to as a coefficient of reproducibility. Again, Bobbie’s Stapel Scale
illustration provides a very clear understanding. It is similar to the semantic differential scale except that numbers
Guttman Scaling and Coefficient of Reproducibility identifies points on the scale, only one statement is used and if
the respondent disagrees a negative number should marked, and
Response Number Index Scale Total there are 10 positions instead of seven. This scale does not require
Pattern of Cases Scores Scores Scale Errors
+++
that bipolar adjectives be developed and it can be administered by
612 3 3 0
Scale Types ++= 448 2 2 0 telephone.
+== 92 1 1 0
=== 79 0 0 0 Q-sort Technique
=+= 15 1 2 15 In Q- sort Technique the respondent if forced to construct a
Mixed Types +=+ 5 2 3 5 normal distribution by placing a specified number of cards in one
==+ 2 1 0 2
=++ 5 2 3 5 of 11 stacks according to how desirable he/she finds the
characteristics written on the cards. This technique is faster and less
Number of Errors
Coefficient of Reproducibility = 1 - tedious for subjects than paired comparison measures. It also
Number of Guesses
forces the subject to conform to quotas at each point of the scale
27 27
In the example = 1 -
1,258 x 3
=
3,774
= .993 or 99.3% so as to yield a normal or quasi – normal distribution.
Thus we can say that the objective of Q-Technique is intensive
The entire exercise is really just a way of indicating that the degree study of individuals.
to which a set of responses accurately reflects the scalar assumptions
Selection of an appropriate attitude measurement of scale:
is an indication of the degree to which the entire set could be
recreated from the scale itself. What the above illustration shows We have examined a number of different techniques, which are
is that if we were to project an imaginary “sample” from the available for the measurement of attitudes. Each method has got
coefficient of reproducibility of 99.3%, then the projection would certain strengths and weaknesses. Almost all the techniques can be
reflect the real sample to that degree. Guttman scaling shows that used for the measurement of any component of attitudes. But all
a well constructed scale can very accurately the profile of a response the techniques are not suitable for all purposes. The selection
set. But then, you only know the coefficient of reproducibility depends upon the stage and size of research.
after you have run the survey and crunched the numbers so it is Generally, Q-sort and Semantic differential scale are preferred in
not a predictive tool, it is a proof of the strength of the scale as a the preliminary stages. The Likert scale is used for item analysis.
measure. For specific attributes the semantic differential scale is very
A brief word on typologies is in order. So far, we have limited appropriate. Overall the semantic differential is simple in concept
ourselves to an examination of unidirectional variables; that is and results obtained are comparable with more complex, one-
one thing in one direction (attitudes for or against abortion, etc.). dimensional methods. Hence it is widely used.
Often relationships are better explained as the function of the Limitations of Attitude Measurement Scales
intersection of several variables. This is referred to as a typology. The main limitation of these tools is the emphasis on describing
Remember what we have noted about making sure that your attitudes rather than predicting behaviour. This is primarily because
indices and scales are comprised of single dimension indicators. of a lack of models that describe the attitudes in behaviour
Recall that while “religion” can have a strong correlation with
“attitudes on abortion”, that does not mean that a question on Tutorial
religion belongs in an index or scale of questions on “attitudes on Prepare a questionnaire on any one of the following objectives
abortion”. But, if you wish to examine the intersection of the 1. To know the corporate productivity
two, you can construct a typology effectively showing, for example 2. Job analysis / needs and satisfaction level of employees/
that “Catholics” may be “conservative” on “abortion” but remain motivation level of employees /job involvement etc.
“liberal” on “other human rights”. 3. Product testing / Feedback of after sales services
Bobbie warns us that typologies are useful as independent variables
References
(“religion” may be a good causal factor in “attitudes on abortion”)
but can be problematic as dependent variables (explaining the Donald R. Cooper – Business Research Methods, Tata McGraw –
“why” isn’t always clear). Catholics may be more anti-abortion Hill Publication
because the church has forbidden it but what of other groups? Kothari C R – Quantitative Techniques (Vikas Publishing House
You can get onto some very shaky ground using typologies as the 3rd ed.)
“effect” or dependent variable. Levin R I & Rubin DS - Statistics for Management (Prentice Hall
Example of Semantic Differential of India, 2002)
How would you describe Kmart, Target, and Wal-Mart on the
following scale?

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78 11.556

LESSON 13:
SAMPLING ISSUES IN RESEARCH
Students, today we shall be doing various issues in sampling .
To understand it better it is necessary that we do certain related
terms first.
When we are doing certain investigation the interest lies in the
assessment of the general magnitude and the study of variation
with respect to one or more characteristics relating to individuals
belonging to a group
Population
This group of individuals is called population or universe.Thus
we can define population as any entire collection of people, animals,
plants or things on which we may collect data. It is the entire
group of interest, which we wish to describe or about which we
wish to draw conclusions.
It is impractical for an investigator to completely enumerate the
whole population for any statistical investigation. For example, if
we want to have an idea about the average montly income of
people residing in India, we will have to enumerate all the earning
individuals in the country, which is rather a very difficult task.
Also, when population is large infinite) or if units are destroyed
during investigation it is not possible to enumerate or investigate
whole population. But even if population is finite 100% inspection
is not possible because of various factors like time, money and
administrative convenience.
Sampling
Sampling is the selection of part of an aggregate or totality known
as population, on the basis of which a decision concerning the
population is made.
Thus, we can say that a finite subset of statistical individuals in a
population is called a sample and the number of individuals in a
sample is called sample size.
Sampling Unit
A unit is a person, animal, plant or thing which is actually studied
by a researcher; the basic objects upon which the study or
experiment is executed. For example, a person; a sample of soil; a
pot of seedlings; a zip code area; a doctor’s practice.
Activity
Define population and sampling unit in each of the following
problems
1. Popularity of family planning among families having more
than two children _____________
2. Election for a political office with adult
franchise__________
3. Measurement of the volume of timber available in a forest
_______________________
4. Annual yield of apple fruit in a hilly district.______
5. Study of child mortality rate in a district
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11.556
RESEARCH METHODOLOGY
Parameter and Statistic
A parameter is an unknown value, and therefore it has to be
estimated.Parameters are used to represent a certain population
characteristic. For example, the population mean m is a parameter
that is often used to indicate the average value of a quantity.
Within a population, a parameter is a fixed value that does not
vary.Each sample drawn from the population has its own value
of any statistic that is used to estimate this parameter. For example,
the mean of the data in a sample is used to give information
about the overall mean min the population from which that sample
was drawn.
A statistic is a quantity that is calculated from a sample of data.It
is used to give information about unknown values in the
corresponding population.
For example, the average of the data in a sample is used to give
information about the overall average in the population from
which that sample was drawn.
A statistic is a function of an observable random sample. It is
therefore an observable random variable.
Statistics are often assigned Roman letters (e.g. and s), whereas
the equivalent unknown values in the population ( parameters )
are assigned Greek letters (e.g., µ, s).
Variables
A characteristic or phenomenon, which may take different values,
such as weight, gender since they are different from individual to
individual.
Any object or event, which can vary in successive observations
either in quantity or quality is called a “variable.”Variables are
classified accordingly as quantitative or qualitative.
A qualitative variable, does not vary in magnitude in successive
observations. The values of quantitative called “Attributes”.A
quantitative variable does vary in magnitude in successive
observations. The values of quantitative are called “Variates”
Variable
Randomness
Randomness means unpredictability
The fascinating fact about inferential statistics is that, although
each random observation may not be predictable when taken alone,
collectively they follow a predictable pattern called its distribution
function.
For example, it is a fact that the distribution of a sample average
follows a normal distribution for sample size over 30. In other
words, an extreme value of the sample mean is less likely than an
extreme value of a few raw data.
Desirable Characteristics of Sample Statistics
1. Unbiased:If the arithmetic mean of the statistic calculated for
all possible samples of a given size n exactly equals its
population parameter.
79
 2. Sufficient:Summarizes all relevant information about the parent Example of the creation of a sampling distribution
RESEARCH METHODOLOGY

population contained in the sample, while ignoring any sample- Six rocks were extracted from my team and each was weighed,
specific information. labeled, and put in a bag. This forms the population from which
3. Efficient:The more the statistic values for various samples I can draw samples.
cluster around the true parameter value, the lower the sampling Suppose, I want to construct a sampling distribution of the
error and the greater the efficiency. Consider an archer shooting mean weight of 3 rocks from the population of 6. To do this, I
at a target. The archer wants to be accurate, but also wants the must enumerate all samples of size 3 which can be drawn from a
arrows to cluster as closely to the centre of the target as possible. population of size 6 (there are 20 in total) and compute the mean
4. Consistent:The larger the sample size, the closer the statistic of each.
should be to its parameter value.Every statistic in a sample The frequency distribution I can create from these 20 numbers is
might have a different sampling distribution the sampling distribution I want. Below is the table I would use
to create this distribution, and below that is the actual sampling
distribution.
Example
Creation of a Sampling Distribution
Rock ID 1 2 3 4 5 6
Weight (g) 11.24 13.48 16.9 24.28 20.89
Sampling Distribution 10.43 Sample Means
The sampling distribution is a hypothetical device that figuratively Sample 11 1 1 0 0 0
represents the distribution of a statistic (some number you’ve 13.87
obtained from your sample) across an infinite number of samples.
Sample 21 1 0 1 0 0
You have to remember than your sample is just one of a potentially 17.47
infinite number of samples that could have been drawn.While it’s
Sample 31 0 1 1 0 0
very likely that any statistics you generate from your sample would
16.33
be near the center of the sampling distribution, just by luck of the
draw, the researcher normally wants to find out exactly where the Sample 40 1 1 1 0 0
center of this sampling distribution is. 18.22
That’s because the center of the sampling distribution represents Sample 51 1 0 0 1 0
the best estimate of the population average, and the population 15.20
is what you want to make inferences to. Sample 61 0 1 0 1 0
The average of the sampling distribution is the population 16.34
parameter, and inference is all about making generalizations from Sample 70 1 1 0 1 0
statistics (sample) to parameters (population). 17.09
You can use some of the information you’ve collected thus far to Sample 81 0 0 1 1 0
calculate the sampling distribution, or more accurately, the 18.80
sampling error. Sample 90 1 0 1 1 0
In statistics, any standard deviation of a sampling distribution is 19.55
referred to as the standard error (to keep it separate in our minds Sample 10 0 0 1 1 1
from standard deviation).In sampling, the standard error is referred 0 20.69
to as sampling error.
Sample 11 1 1 0 0 0
Definitions are as Follows 1 11.72
• Standard deviation-the spread of scores around the average in Sample 12 1 0 1 0 0
a single sample· Standard error- the spread of averages around 1 12.86
the average of averages in a hypothetical sampling Sample 13 0 1 1 0 0
distribution.You never actually see the sampling distribution. 1 13.60
All you have to work with is the standard deviation of your Sample 14 1 0 0 1 0
sample. The greater your standard deviation, the greater the 1 15.32
standard error (and your sampling error).
Sample 15 0 1 0 1 0
The standard error (this term was first used by Yule, 1897) is the 1 16.06
standard deviation of a mean and is computed as:
Sample 16 0 0 1 1 0
Standard Error= (s2/n)1/2,where ,s2 is the sample variance, n is 1 17.20
the sample size.
Sample 17 1 0 0 0 1
Let us illustration the sampling distribution, it will make the topic 1 14.19
very clear.

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80 11.556
Sample 18 0 1 0 0 1 Sampling Errors

1 14.93
Sample 19 0 0 1 0 1 only a part of the population is used to estimate the population
1 16.07
Sample 20 0 0 0 1 1
1 18.53
The Sampling Distribution
Bin >11, <=13 >13, <=15 >15, <=17
>17, <=19 >19, <=21
Frequency 2 4 6 6 2 results.This bias can be overcome by adhering to Simple Random
Relation between Standard Error and Sample Size
Standard error is also related to sample size. The larger your sample,
the smaller the standard error.
You’re not reducing bias or anything by increasing sample size,
only coming closer to the total number in the population.
Validity and sampling error are somewhat similar. However, you
can estimate population parameters from even small samples.
Principles of Sample Survey
The theory of sampling is based on the following important
principles:
1. Principle of statistical regularity
2. Principle of validity
3. Principle of optimization
1. Principle of statistical regularity stresses the desirability
and importance of selecting a sample at random so that each
and every unit in the population has an equal chance of
being selected in the sample.
We get an immediate derivation from this principle is the
principle of Inertia of large numbers which states that
“Other things being equal as the sample size increases, the
results tend to be more reliable and accurate.”
For example , in a coin tossing experiment, the results will be
approximately 50% heads and 50% tails provided we
perform the experiment a fairly large number of times.
2. Principle of validity means the sample design should
enable us to obtain valid tests and estimates about the
parameters of the population. The samples obtained by the
technique of probability sampling satisfy this principle.
3. Principle of optimization impresses upon obtaining
optimum results in terms of efficiency and cost of the
design with the resources at disposal. The reciprocal of the
sampling variance of an estimate provides a measure of its
efficiency while a measure of cost of the design is provided
by the total expenses incurred in terms of money and man
hour.
The principle of optimization consists in
a. achieving a given level of efficiency at minimum cost
b. obtaining maximum possible efficiency with given level of
cost.
Sampling and Non-sampling Error
We can classify broadly the errors involved in the process of research
into two heads: Sampling Errors and Non-Sampling Errors
RESEARCH METHODOLOGY
These have the origin in sampling and arise out of the fact that
parameters and draw inferences about the population. Therefore,
sampling errors are absent in complete enumeration. The sampling
errors are basically because of following reasons:
a. Faulty selection of sample:
If you use a defective technique for selecting a sample, e.g
purposive or judgement sampling in which the investigator
deliberately chooses the sample in order to deduce the desired
Sampling.
b.Substitution:If you substitute one unit for another if some
difficulty arises in studying that particular unit (first one), this
leads to some bias . This is because of the fact that the characteristics
possessed by the substituted unit will usually be different from
those possessed by the unit originally included in the sample.
c . Faulty Demarcation of Sampling units
It is significant in particularly areas surveys such as agricultural
experiments in the field or in the crop cutting fields etc.
d. Constant error due to improper choice of the statistics for
estimating the population parameters:
For example while estimating the standard deviation of
population if we divide the sum of squares by “n” instead
of “n-1”,we get an unbiased estimate of population
standard deviation.
Non-sampling Errors
The non -sampling errors primarily arise at the stages of
• Observation
• Ascertainment
• Processing of data
These are, therefore present in both complete enumeration and
sample survey. Non-sampling errors can occur at every stage of
planning or execution of census or sample survey.
It is very difficult to prepare an exhaustive list of the sources of
non-sampling errors. However some of the more important ones
arise because of following factors:
1. Faulty planning or definition.
2. Response Errors
3. Non- Response bias
4. Errors in coverage
5. Compiling Errors
6. Publication Errors
Now we will discuss them in detail
1. Faulty planning or Definition:As we all know the
foremost step in research is explicitly stating the objectives of
the study.
These objectives are then translated into
• A set of definitions of the characteristics for which data is to
be collected
• Into a set of specificationsfor collection , processing and
publishing.

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11.556 81
 Here Non-Sampling Errors may Arise Due to
RESEARCH METHODOLOGY
a. Data specification being inadequate and inconsistent with
respect of the objectives of study
b. Error due to location of the units and actual measurement
of the characteristics, errors in recording the measurements,
errors due to ill designed questionnaires.
c. Lack of trained and qualified investigators and
2.Response Errors
There arise as a result of the responses furnished by the
respondents because of following reasons
• Response error may be accidental- e.g, the respondent may
understand a particular question and accordingly furnish
improper information un-intentionally.
• Prestige Bias
• Self-Interest
• Bias due to interviewer
• Failure of respondent’s memory
3.Non- Response Bias
Non-Response biases occur if you do not obtain full information
from all the sampling units.
4.Errors in Coverage
If the objectives are not stated concisely in a clear cut manner it
may lead to -
• Certain units which should not be included also gets
included
• Certain units which must be included gets excluded
5.Compiling Errors
Various operations of data processing such as editing and coding
of the responses, punching of cards, tabulation and summarizing
the origional observations made in study are the potential source
of error.Compilation errors are subject to control through
verification , consistency check, etc.
6.Publication Errors
The errors committed during presentation and printing of
tabulated results are basically due to two sources:
• Mechanics of publication-the proofing error and the like.
• Failure of the survey organization to point out the
limitations of the statistics.
Advantages of sampling over complete enumeration
The following are the advantages and/or necessities for sampling
in statistical decision-making:
1. Cost: Cost is one of the main arguments in favour of
sampling, because often a sample can furnish data of
sufficient accuracy and at much lower cost than a census.
2. Accuracy:Much better control over data collection errors is
possible with sampling than with a census, because a sample
is a smaller-scale undertaking.
3. Timeliness:Another advantage of a sample over a census is
that the sample produces information faster. This is
important for timely decision making.
4. Amount of Information: More detailed information can be
obtained from a sample survey than from a census, because
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82
it take less time, is less costly, and allows us to take more care
in the data processing stage.
5. Destructive Tests: When a test involves the destruction of
an item under study, sampling must be used. Statistical
sampling determination can be used to find the optimal
sample size within an acceptable cost.
Limitations of Sampling
The advantages of sampling over complete enumeration can be
derived only if
• The sampling units are drawn in a scientific manner,
• The appropriate sampling technique is used, and
• The sample size is adequate
Sampling theory has its own limitations and problems which
may be briefly outlined as
1. You have to take proper care in the planning and execution
of the sample survey, otherwise the results obtained might
be inaccurate and misleading
2. Until and unless sampling is done by trained and efficient
personnel and sophisticated equipment for its planning,
execution and analysis. In absence of these sampling is not
trustworthy
3. If you want to have information of each and every unit of
population you will have to go for complete enumeration
only. In that case sampling will not be an appropriate
method.
Types of Sampling
The type of enquiry and the nature of data fundamentally
determines the technique or method of selecting a sample .
The procedure of selecting a sample may be broadly classified
under the following three heads:
• Non-Probability Sampling Methods: Subjective or
Judgement Sampling
• Probability Sampling
• Mixed Sampling
These we will be studying in detail in the next lecture.
Now, briefly tell me what concepts you have studied today?
Yes, we studied various concepts like population, statistic, variables-
qualitative and quantitative, variable randomness, characteristics
of sample statistic, sampling distribution, standard error,
principles of sample survey , sampling and non-sampling errors,
merits and limitations of sampling.
References
Aaker D A , Kumar V & Day G S - Marketing Research (John
Wiley &Sons Inc, 6th ed.)
Bell J- Doing your Research Project (OU Press, 1993)
Donald R. Cooper-Business Research Methods, Tata
McGraw-Hill Publication
Kothari C R-Quantitative Techniques (Vikas Publishing House
3rd ed.)
Levin R I & Rubin DS-Statistics for Management (Prentice Hall of
India, 2002)
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LESSON 14:
DESIGNING SAMPLE
Hello, students today we shall be continuing our discussing on
issues in sampling. Before proceeding further let us recaptulate
what we had studied in the last lecture first.
We have learned that a sample is a part or aggregate selected with
a view to obtaining information about the whole group also
known as population. The population is composed of a number
of units. The total number of units in the population and in the
sample are known as population size and sample size. We also
came to know that sampling is the scientific technique of drawing
a sample. Any characteristic of population is called parameter and
that of sample is called statistic. Also, the standard deviation of
sampling distribution is called standard error, larger the sample
size lower will be the standard error. We have also studied various
sources of sampling and non-sampling error along with principles
of sampling.
For the process of statistical inference to be valid we must ensure
that we take a representative sample of our population.
Whatever method of sample selection we use it is vital that the
method is described.
How do we know if the characteristics of a sample we take match
the characteristics of the population we are sampling? The short
answer is we don’t. We can, however, take steps that make it as
likely as possible that the sample will be representative of the
population.
Two simple and effective methods of doing this are making sure
the sample size is large and making sure it is randomly selected.
A large sample size is more likely to be representative of a
population than a small one.
Think of extreme cases. If we want to know the average height
of the population and we select just one person and measure
their height it is unlikely to be close the population average. If we
took 1,000,000 people, measured their heights and took the average,
this figure would be likely to be close to the population average.
Types of Sampling
The type of enquiry you want to have and the nature of data that
you want to collect fundamentally determines the technique or
method of selecting a sample.
The procedure of selecting a sample may be broadly classified
under the following three heads:
• Non-Probability Sampling Methods: Subjective or
Judgement Sampling
• Probability Sampling
• Mixed Sampling
Now let us discuss these in detail. We will start with the non-
probability sampling then we will move on to probability sampling.
Non-Probability Sampling Methods
The common feature in non probability sampling methods is
that subjective judgments are used to determine the population
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RESEARCH METHODOLOGY
that are contained in the sample .We classify non-probability
sampling into four groups:
1. Convenience Samples
2. Judgement Samples
3. Quota Samples
4. Snowball samples
A. Convenience Samples
• These types of samples are used primarily for reasons of
convenience.
• It is used for exploratory research and speedy situations.
• It is often used for new product formulations or to provide
gross-sensory evaluations by using employees, students,
peers, etc.
Convenience sampling is extensively used in marketing studies
and otherwise.
This would be clear from the following examples
1. Suppose a marketing research study aims at estimating the
proportion of Pan (Beetle leaf) shops in Delhi, which store a
particular drink Maaza. It is decided to take a sample of size
150. What the investigator does is to visit 150 Pan shops
near his place of office as it is very convenient to him and
observe whether a Pan shop stores Maaza or not.
This is definitely not a representative sample, as most Pan
shops in Delhi had no chance of being selected. It is only
those Pan shops which were near the office of the
investigator has a chance of being selected
2. The other example where convenience sampling is often
used is in test marketing. There might be some cities whose
demographic make-ups are approximately the same as
national average. While conducting marketing tests for new
products, the researcher may take samples of consumers
from such cities and obtain consumer evaluations about
these products as these are supposed to represent “national”
tastes.
3. A ball pen manufacturing company is interested in knowing
the opinions about the ball pen (like smooth flow of ink,
resistance to’ breakage of the cover etc.) it is presently
manufacturing with a view to modify it to suit customers
need. The job is given to a marketing researcher who visits a
college near his place of residence and asks a few students (a
convenient sample) their opinion about the ‘ball pen” in
question.
4. As another example a researcher might visit a few shops to
observe what brand of vegetable oil people are buying so as
to make inference about the share of a particular brand he is
interested in.
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 B. Judgement Samples
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• It is that sample in which the selection criteria are based upon
your (researcher’s) personal judgment that the members of
the sample are representative of the population under study.
• It is used for most test markets and many product tests
conducted in shopping malls.If personal biases are avoided,
then the relevant experience and the acquaintance of the
investigator with the population may help to choose a
relatively representative sample from the population. It is
not possible to make an estimate of sampling error as we
cannot determine how precise our sample estimates are.
Judgement sampling is used in a number of cases, some of which
are:
1. Suppose we have a panel of experts to decide about the
launching of a new product in the next year. If for some
reason or the other, a member drops out, from the panel,
the chairman of the panel may suggest the name of another
person whom he thinks has the same expertise and
experience to be a member of the said panel. This new
member was chosen deliberately - a case of Judgment
sampling.
2. The method could be used in a study involving the
performance of salesmen. The salesmen could be grouped
into top-grade and low-grade performer according to certain
specified qualities. Having done so, the sales manager may
indicate who in his opinion, would fall into which category.
Needless to mention this is a biased method. However in
the absence of any objective data, one might have to resort
to this type of sampling.
C. Quota Samples
This is a very commonly used sampling method in marketing
research studies.Here the sample is selected on the basis of certain
basic parameters such as age, sex, income and occupation that
describe the nature a population so as to make of it representative
of the population.
The Investigators or field workers are instructed to choose a sample
that conforms to these parameters.The field workers are assigned
quotas of the number of units satisfying the required
characteristics on which data should be collected.
However, before collecting data on these units the investigators
are supposed to verify that the units qualify these characteristics.
Suppose we are conducting a survey to study the buying behavior
of a product and it is believed that the buying behaviour is greatly
influenced by the income level of the consumers. We assume that
it is possible to divide our population into three income strata
such as high-income group, middle-income group and low-income
group. Further it is known that 20% of the population is in high-
income group, 35% in the middle-income group and 45% in the
low-income group. Suppose it is decided to select a sample of size
200 from the population. Therefore, samples of size 40, 70 and
90 should come from high income, middle income and low income
groups respectively. Now the various field workers are assigned
quotas to select the sample from each group in such a way that a
total sample of 200 is selected in the same proportion as mentioned
above. For example, the first field
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84
• Selection is done by non-probability means and are based
upon the researcher’s judgement of appropriate
demographics.
D. Snowball Sampling
• It is that samples in which the selection of additional
respondents (after the first small group of respondents is
selected) is based upon referrals from the initial set of
respondents.
• It is used to sample low incidence or rare populations
• It is done for the efficiency of finding the additional, hard-
to-find members of the sample.
Advantages of Non-probability Samples
• It is much cheaper to probability samples.
• It is acceptable when the level of accuracy of the research
results is not of utmost importance.
• Less research time is required than probability samples.
• It often produces samples quite similar to the population of
interest when conducted properly.
Disadvantages of Nonprobability Samples
• You cannot calulate Sampling error. Thus, the minimum
required sample size cannot be calculated which suggests that
the you (researcher) may sample too few or too many
members of the population of interest.
• You do not know the degree to which the sample is
representative of the population from which it was drawn.
• The research results cannot be projected (generalized) to the
total population of interest with any degree of confidence.
Probability Sampling
Probability sampling is the scientific method of selecting samples
according to some laws of chance in which each unit in the
population has some definite pre-assigned probability of being
selected in the sample. The different types of probability sampling
are :
1. where each unit has an equal chance of being selected.
2. Sampling units have different probabilities of being selected
3. Probability of selection of a unit is proportional to the
sample size.
Simple Random Sampling
It is the technique of drawing a sample in such a way that each unit
of the population has an equal and independent chance of being
included in the sample.
In this method an equal probability of selection is assigned to
each unit of population at the first draw.It also implies an equal
probability of selecting in the subsequent draws.
Thus in simple random sample from a population of size N, the
probability of drawing any unit in the first draw is 1/N.The
probability of drawing a second unit in the second draw is 1/N-
1.
The probability of selecting a specified unit of population at any
given draw is equal to the probability of its being selected at the
first draw.
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Selection of a Simple Random Sample
As we all know Simple Random Sample refers to that method of
selecting a sample in which each and every unit of population is
given independent and equal chance to be included in the sample.
But, Random Sample does not depend only upon selection of
units but also on the size and nature of the population.
One procedure may be good and simple for a small sample but it
may not be good for the large population.
Generally, the method of selecting a sample must be independent
of the properties of sampled population.
Proper precautions should be taken to ensure that your selected
sample is random. Although human bias is inherent in any
sampling scheme administered by human beings.
Random selection is best for two reasons - it eliminates bias and
statistical theory is based on the idea of random sampling.
We can select a simple random sample through use of tables of
random numbers , computerized random number generator or
lottery method . Thus, the three methods of drawing simple
random sample are:
• Mechanical method and using tables of random numbers,
• sealed envelopes (lottery system) etc.
Lottery Method
This is the simplest method of selecting a random sample.
We will illustrate it by means of example for better
understanding:Suppose, we want to select “r” candidates out of
“n”. We assign the numbers from 1 to n i.e to each and every
candidate we assign only one exclusive number. These numbers
are then written on n slips which are made as homogeneous as
possible in shape, size, colour, etc.
These slips are then put in a bag and thoroughly shuffled and
then “r” slips are drawn one by one. The “r” candidates
corresponding to numbers on the slips drawn will constitute a
random sample.
This method of selecting a simple random sample is independent
of the properties of population. Generally in place of slips you
can use cards also. We make one card corresponding to one unit of
population by writing on it the number assigned to that particular
unit of pipulation. The pack of cards is a miniature of population
for sampling purposes. The cards are shuffled a number of times
and then a card is drawn at random from them. This is one of the
most reliable methods of selecting a random sample.
Mechanical Randomisation or Random Numbers
Method
The explained method of lottery is very time consuming and
cumbersome to use if population is very large.
Therefore the most practical and inexpensive method of
selecting a random sample consists in the use of Random
Numbers Tables, which has been constructed that each of the
digits 0,1,2,3,4,5,6,7,8,9 appear with approximately the same
frequency and independently of each other.
If we have to select a simple random sample from a population
of size N(d”99) then the numbers can be combined two by two
to give pairs from 00 to 99.
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11.556
Similarly if Nd”999 or Nd”9999 and so on, then combining the
RESEARCH METHODOLOGY
digits three by three ( or four by four and so on ), we get numbers
from 000 to 999 or (0000 to 9999) and so on. Since each of the
digits 0,1,2,3,4,5,6,7,8,9 appear with approximately the same
frequency and independently of each other, so does each of the
pairs 00 to 99 or triplets from 000 to 999 or quadruplets 0000 to
9999 and so on .
Thus, the method of drawing the random sample consists in the
following steps:
i. Identify the N units in the population with the numbers
from 1 to N
ii. Select at random, any page of the random number tables and
pick up the numbers in any row or column or diagonal at
random.
iii. The population units corresponding to the number of unit
selected in step (ii) comprise the random sample.
I will tell you about the different sets of random numbers
commonly used in practice. The numbers in these tables have
been subjected to various statistical tests for randomness of a
series and their randomness has been well established for all practical
purposes.
1. Tippets (1927) Random Number Table: (Tracts for
computers No. 15 Cambridge University Press)
Tippet number tables consist of 10,400 four digited
numbers, giving in all 10,400 x 4 , i.e.,41600 digits selected at
random from the British Census Report.
2. Fisher and Yates (1938) Tables (in statistical tables for
biological, Agricultural and Medical Research) comprise
15,000 digits arranged in twos. Fisher and Yates obtained
these tables by drawing numbers at random from 10th to 19th
digits of A.S.Thomson’s 20- figure logarithmic tables.
3. Kendall and Babington Smith’s (1939) random tables consist
of 1,00,000 digits grouped into 25,000 sets of 4 digited
random numbers (Tracts for computers No. 24 Cambridge
University Press)
4. Rand Corporation (1955) (free oress, Illinois) random
number tables consist of one million random digits
consisting of 5 digits each.
5. TI-82: Generating Random Numbers
You can generate random numbers on the TI-82 calculator using
the following sequence. N is the number of different values, which
could be, and S is the minimum number.
int (N*rand+S)
If you have two values (A and B) that you need random numbers
between, then you can generate them using the following formule
N=B-A+1
int (N*rand+A)
Notice it is B-A+1 not B-A. Everyone agrees there are 10 numbers
between 1 and 10 (inclusive). But, if you take 10-1, you get 9, not
10. Also, in the formula above, replace the N by the actual number
of different values.
Since the calculator remembers the last formula put in, and evaluates
it when you hit enter, to generate more random numbers, just hit
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 enter again. Each time you hit enter, you will get another random
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number.
Merits and Limitations of Simple Random Sampling
Merits
1. Since samples units are selected at random providing equal
chance to each and every unit of population to be selected ,
the element of subjectivity or personal bias is completely
eliminated. Therefore, we can say that simple random
sample is more representative of population than purposive
or judgement sampling.
2. You can ascertain the efficiency of the estimates of the
parameters by considering the sampling distribution of the
statistic (estimates)
For example:One measure of calculating precision is sample size.
Sample mean becomes an unbiased mean of population mean
or a more efficient estimate of population mean as sample size
increases.
Limitations
1. The selection of simple random sample requires an up- to -
date frame of population from which samples are to be
drawn. Although it is impossible to have knowledge about
each and every unit of population if population happens to
be very large.
This restricts the use of simple random sample.
2. A simple random sample may result in the selection of the
sampling units,which are widely spread geographically and in
such a case the administrative cost of collecting the data may
be high in terms of time and money.
3. Sometime, a simple random sample might give most non-
random looking results, which I will explain with the help
of an illustration next.
4. For a given precision, simple random sample usually requires
larger sample size as compared to stratified random
sampling which we will be studying next.
The limitations of simple random sample will be clear from
the example.
If I were conducting a study looking at two treatments, A and B
then one way I could allocate patients to treatment groups would
be by using a table of random numbers.
The following set of random numbers came from a popular
statistics tables (most statistics textbooks have them):
65246356854282020026
I could allocate patients to treatment A if the number were odd
and B if it were even. This would result in successive patients
being allocated in the sequence:
BABBBAABBABBBBBBBBBB
Randomly selected numbers often seem to have patterns in them,
like long runs of the same number. This is not a problem if we
are conducting a large study, everything evens out over time.
But if the above study had stopped after recruiting 20 patients
then we would have had four patients on treatment A and sixteen
on B. This would not be a very good basis for comparing the two
treatments.
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86
Therefore, some of the randomly allocated sample prove very
non-random. This type of problem can be eliminated by use of
Stratified Random Sampling, in which the population is divided
into different strata.
Now, we will move into details of stratified random sampling.
Stratified Random Sampling
We have understood that in simple random sampling, the variance
of the sample estimate of the population is
a. Inversely proportional to the sample size, and
b. Directly proportional to the variability of the sampling units
in the population.
We also know that the precision is defined as reciprocal of its
sampling variance. Therefore as sample size increases precision
increases.
Apart from increasing the sample size or sampling fraction n/N,
the only way of increasing the precision of sample mean is to
devise a sampling technique which will effectively reduce variance,
the population heterogeneity. One such technique is Stratified
Sampling.
Stratification Means Division into Layers
Past data or some other information related to the character under
study may be used to divide the population into various groups
such that
i. units within each group are as homogeneous as possible and
ii. the group means are as widely different as possible.
Thus, if we have a population consisting of N sampling units, it
is divided into k relatively homogeneous mutually disjoint (non
overlapping) sub-groups, termed as strata, of sizes N1, N2 —————
——————
Nk , such that N = “Ni for i =1 to k .
Now you draw a simple random sample of size n i (i=1,2,3,-k)
from each stratum.
This type of technique of drawing a sample is called stratified
random sampling and the sample is called stratified random
sampling.
There are two points which you have to keep in mind while drawing
a stratified random sample.
• Proper classification of the population into various strata,
and
• A suitable sample size from each stratum.
Both these points are important to be considered because if your
stratification is faulty, it cannot be compensated by taking large
samples.
Principle advantages of Stratified Random Sampling
1. More Representative
In an non-stratified random sample some strata may be over
represented, others may be under-represented while some may
be excluded altogether. Stratified sampling ensures any desired
representation in the sample of the various strata in the population.
It over-rules the possibility of any essential group of the
population being completely excluded in the sample. Stratified
sampling thus provides a more representative cross section of the
population and is frequently regarded as the most efficient system
of sampling.
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2. Greater Accuracy
Stratified sampling provides estimates with increased precision .
Moreover, stratified sampling enables us to obtain the results of
known precision for each stratum.
3. Administrative Convenience
As compared with simple random sample, the stratified random
samples are more concentrated geographically. Accordingly, the
time and money involved in collecting the data and interviewing
the individuals may be considerably reduced and the supervision
of the field work could be allocated with greater ease and
convenience.
4. Sometimes you will notice that sampling problems may
differ markedly in different parts of population. For example
• Literates and Illiterate .People living in ordinary homes
and people living in institutions, hostels, hospitals etc.
In such cases we will deal with the problem through stratified
sampling by regarding the different parts of the population as
stratum and tackling the problems of the survey within each
stratum independently.
Note: You can allocate the sample sizes for different strata can be
done in two ways:
1. Proportional allocation
2. Optimum allocation
In proportional allocation, allocation of ni , the sample size of
each strata is called proportional if the sample fraction is constant
for each stratum i.e.,
n1 = n 2 = - - - - - - - - - - - = nk
N1 N2 Nk
Optimum Allocation is another guiding principle in the
determination of the n i is to choose them so as to :
1. Minimise the variance (i.e., maximize the variance) of the
estimate for (i) fixed sample size, (ii) fixed cost
2. Minimise the total cost for fixed desired precision
Systematic Random Sampling
If you have the complete and up-to-date list of sampling units is
available you can also employ a common technique of selection
of sample , which is known as systematic sampling.
In systematic sampling you select the first unit at random, the rest
being automatically selected according to some predetermined
pattern involving regular spacing of units.
Now let us assume that the population size is N. We number all
the sampling units from 1 to N in some order and a sample of
size n is drawn in such a way that
N = nk i.e. k = N/n
Where k, usually called the sampling interval, is an integer.
In systematic random sampling we draw a number randomly, let
us suppose that the number drawn is i d•k and selecting the
unit corresponding to this number and every k th unit subsequently
. Thus the systematic sample of size n will consist of the units
i, i+k, i+2k, - - - - - - - - - - - - , i+ (n-1)k
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The random number i is called the random start and its value
RESEARCH METHODOLOGY
determines the whole sample.
Merits and Demerits of Systematic Random Sampling
Now students we will discuss the merits and demerits of
systematic random sampling
Merits
I. .Systematic sampling is operationally more convenient than
simple random sampling or stratified random sampling.
It saves your time and work involved.
II. This sampling is more efficient to simple random sample,
provided the frame (the list from which you have drawn the
sample units ) is arranged wholly at random
Demerits
I. The main disadvantage of systematic sampling is that
systematic sampling is that systematic samples are not in
general random samples since the requirement in merit two
is rarely fulfilled.
II. If N is not a multiple of n, then
• The actual sample size is different from that required,
and
• Sample mean is not an unbiased estimate of the
population mean.
III.It does not provide the sampling error
IV.Systematic sampling may yield highly biased estimates if
there are periodic features associated with the sampling
interval, I.e., if the frame (list) has a periodic feature and k is
equal to or a multiple of the period.
Cluster Sampling
In this type of sampling you divide the total population ,
depending upon the problem under study, into some recognizable
sub-divisions which are termed as clusters and a simple random
sample of n blocks is drawn.
The individuals which you have selected from the blocks constitute
the sample.
Notations
N ‡Total number of clusters ;
n !number of sampled :
n
M‡ “ Mi is total number of units in the population.
i=1
Mi !Number of sampling units in the ith cluster;
Y ij ‡ jth obsevation in the i th cluster ( j = 1, 2, 3 - - - - - - - - Mi, i= 1,
2, 3 - - - - -N)
yij ‡ jth obsevation in the ith sampled cluster ( j = 1, 2, 3 - - - - - - -
- Mi, i= 1, 2, 3 - - - - -n).
In some situations Mi as well as M are not known.
Notes
• Clusters should be as small as possible consistent with the
cost and limitations of the survey
• The number of sampling units in each cluster should be
approximately same.
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 Thus cluster sampling is not to be recommended if we are • In contrast -nonprobability selection is not random. When
RESEARCH METHODOLOGY

sampling areas in the cities where there are private residential houses, each sample element is drawn individually from the
business and industrial complexes, apartment buildings, etc., with population at large, it is unrestricted sampling.
widely varying number of persons or households.
References
Multistage Sampling Aaker D A , Kumar V & Day G S - Marketing Research (John
One better way of selecting a sample is to resort to sub-sampling Wiley &Sons Inc, 6th ed.)
within the clusters , instead of enumerating all the sampling units
Bell J- Doing your Research Project (OU Press, 1993)
in the selected cluster.
Donald R. Cooper – Business Research Methods, Tata McGraw –
This technique is called two-stage sampling, clusters being termed
Hill Publication
as primary units and the units within the clusters being termed as
primary units and the units within the clusters as secondary units. Kothari C R – Quantitative Techniques (Vikas Publishing House
3rd ed.)
This technique can be generalized to multistage sampling.
Levin R I & Rubin DS - Statistics for Management (Prentice Hall
We regard population as a number of primary units each of which
of India, 2002)
is further composed of secondary stage units and so on , till we
ultimately reach a stage where desired sampling units are obtained. Notes
In multi-stage sampling each stage reduces the sample size.
Merits and Limitations
i. Multistage sampling is more flexible as compared to other
methods .It is simple to carry out and results in
administrative convenience by permitting the field work to
be concentrated and yet covering large area.
ii. It saves a lot of operational cost as we need the second stage
frame only for those units which are selected in the first stage
sample .
iii. It is generally less efficient than a suitable single- stage
sampling of the same size.This brings an end on today’s
discussion on sampling techniques.
Thus in the nutshell we can say that Non probabilistic sampling
such as Convenience sampling, Judgement Sampling and Quota
sampling are sometimes used although representative ness of
such a sample cannot be ensured. Whereas a probabilistic sampling
to each unit of the population to be included in the sample and in
this sense it is a representative sample of the population.
Points to Ponder
• Sampling is based on two premises. One is that there is
enough similarity among the elements in a population that a
few of these elements will adequately represent the
characteristic of the total population.
• The second premises is that while some elements in a
sample underestimate th population value, others
overestimate the value.
• The results of these tendencies are that a sample mean is
generally a good estimate of population mean.
• A good sample has both accuracy & precision. An accurate
sample is one which there is little or no bias or systematic
variance. A sample with adequate precision is one that has a
sampling error that is within acceptable limits.
• A variety of sampling technique is available, of which
probability sampling is based on random selection – a
controlled procedure that ensures that each population
element is given a known nonzero chance of selecion.

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88 11.556

LESSON 15:
APPLICATIONS OF MARKET RESEARCH
Students, now we have covered various theoretical concepts in
marketing research. We have dealt how to marketing research.
Now today, we will discuss the various applications of marketing
research.
1. Product Research
2. Price Research
3. Distribution Research
4. Promotion Research
Product Research
The main product decisions that need to be considered are the
physical design of the product and its demand potential. Many
companies spend millions of rupees onR & D in order to come
up with a new product that will satisfy consumer needs. We cover
various information requirements and techniques used for this
purpose.
A managerial decision to use a pretest market analysis is justified
if sufficiently accurate predictions can be achieved, the timing of
the analysis is before large investment commitments are necessary,
useful diagnostics for improvement are generated, and the cost of
the analysis is reasonable. In these situations failures can be
reduced, time-to-market can be shortened, and products improved
to increase customer satisfaction
New Product Research
New product development is critical to the life of most
organizations as there will be uncertainties associated with them.
Thus, the purpose of marketing research for them would reduce
the uncertainties associated with the new products. Four stages of
new product development could be seen:
• Generating New-Product Concepts
• Evaluating and Developing those Concepts
• Evaluating and developing the actual products
• Testing in a Marketing Programme
Concept Generation
There are two types of concept generation research:
• Need identification research:
• Concept Identification
Need Identification Research
The emphasis in need research is on identifying unfilled needs in
the market. Following are some examples:
a. Perceptual Maps, in which products are positioned along the
dimensions by which users perceive and evaluate, can suggest
gaps into which new products might fit. Perceptual mapping
is a graphics technique used by marketers that attempts to
visually display the perceptions of customers or potential
customers. Typically the position of a product, product line,
brand, or company is displayed relative to their competition.
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Perceptual maps can have any number of dimensions but the
most common is two dimensions. Any more is a challenge to
draw and confusing to interpret. The first perceptual map below
shows consumer perceptions of various automobiles on the two
dimensions of sportiness/conservative and classy/affordable. This
sample of consumers felt Porsche was the sportiest and classiest
of the cars in the study (top right corner). They felt Plymouth was
most practical and conservative (bottom left corner).
Perceptual Map of Competing Products
Cars that are positioned close to each other are seen as similar on
the relevant dimensions by the consumer. For example consumers
see Buick, Chrysler, and Oldsmobile as similar. They are close
competitors and form a competitive grouping. A company
considering the introduction of a new model will look for an area
on the map free from competitors. Some perceptual maps use
different size circles to indicate the sales volume or market share
of the various competing products.
Displaying consumers’ perceptions of related products is only
half the story. Many perceptual maps also display consumers’
ideal points. These points reflect ideal combinations of the two
dimensions as seen by a consumer. The next diagram shows a
study of consumers’ ideal points in the alcohol/spirits product
space. Each dot represents one respondents ideal combination of
the two dimensions. Areas where there is a cluster of ideal points
(such as A) indicates a market segment. Areas without ideal points
are sometimes referred to as demand voids.
Perceptual Map of Ideal Points and Clusters
A company considering introducing a new product will look for
areas with a high density of ideal points. They will also look for
areas without competitive rivals. Placing both the ideal points and
the competing products on the same map best does this.
Some maps plot ideal vectors instead of ideal points. The map
below, displays various aspirin products as seen on the dimensions
of effectiveness and gentleness. It also shows two ideal vectors.
The slope of the ideal vector indicates the preferred ratio of the
two dimensions by those consumers within that segment. This
study indicates there is one segment that is more concerned with
effectiveness than harshness, and another segment that is more
interested in gentleness than strength.
Perceptual Map of Competing Products with Ideal
Vectors
a. Perceptual maps need not come from a detailed study. There
are also intuitive maps (also called judgmental maps or
consensus maps) that are created by marketers based on their
understanding of their industry. Management uses its best
judgement. It is questionable how valuable this type of map
is. Often they just give the appearance of credibility to
management’s preconceptions.
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methodological problems can arise, but at least the
information is coming directly from the consumer. There is
an assortment of statistical procedures that can be used to
convert the raw data collected in a survey into a perceptual
map. Preference regression will produce ideal vectors. Multi
dimensional scaling will produce either ideal points or
competitor positions. Factor analysis, discriminant analysis,
cluster analysis, and logit analysis can also be used. Some
techniques are constructed from perceived differences
between products, others are constructed from perceived
similarities. Still others are constructed from cross price
elasticity of demand data from electronic scanners.
b. Social and environment trends can be analyzed.
c. An approach termed benefit structure analysis has product
users identify the benefits desired and the extent to which
the product delivers those benefits, for specific applications.
The result is an identification of benefits sought that current
products do not deliver.
d. Product users might be asked to keep a diary of a relevant
portion of their activities. Analysing such diaries can provide
an understanding of unsolved problems associated with a
particular task.
e. In focus-group interviews, product users might discuss
problems associated with product-use situations. A focus
group is a form of qualitative research in which a group of
people, are asked about their attitude towards a product,
concept, advertisement, idea, or packaging. Questions are
asked in an interactive group setting where participants are
free to talk with other group members. In the world of
marketing, focus groups are an important tool for acquiring
feedback regarding new products.
In particular, focus groups allow companies wishing to develop,
package, name, or test market a new product, to discuss, view,
and/or test the new product before it is made available to the
public. This can provide invaluable information about the potential
market acceptance of the product.
In traditional focus groups, a pre-screened (pre-qualified) group
of respondents gathers in the same room. They are pre-screened
to ensure that group members are part of the relevent target
market and that the group is a representative subgroup of this
market segment. There are usually 8 to 12 members in the group,
and the session usually lasts for 1 to 2 hours. A moderator guides
the group through a discussion that probes attitudes about a
client’s proposed products or services. The discussion is
unstructured (or loosely structured), and the moderator encourages
the free flow of ideas. Although the moderater is seldom given
specific questions to ask, he/she is often given a list of objectives
or an anticipated outline.
Client representatives observe the discussion from behind a one-
way mirror. Participants cannot see out, but the researchers and
their clients can see in. Usually, a video camera records the meeting
so that it can be seen by others who were not able to travel to the
focus group site. Researchers are examining more than the spoken
words. They also try to interpret facial expressions, body language,
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and group dynamics. Transcripts are also created from the video
tape.
Respondents often feel a group pressure to conform and this can
contaminate the results. But group dynamics is useful in
developing new streams of thought and covering an issue
thoroughly.
Types of Focus Groups
Two-way focus group - one focus group watches another focus
group and discusses the observed interactions and conclusions
Dual moderator focus group - one moderator ensures the session
progresses smoothly, while another ensures that all the topics are
covered
Dueling moderator focus group - two moderators deliberately
take opposite sides on the issue under discussion
Respondent moderator focus group - one or more of the
respondents are asked to act as the moderator temporarily
Client participant focus groups - one or more client
representatives participate in the discussion, either covertly or overtly
Mini focus groups - groups are comprised of 4 / 5 members.
Telesession (or teleconference) focus groups - telephone
network is used
On-line focus groups - computers and internet network is used
Traditional focus groups can provide accurate information, and
are less expensive than other forms of traditional marketing
research. There can be significant costs however : if a product is to
be marketed on a nation-wide basis, it would be critical to gather
respondents from various locales throughout the country since
attitudes about a new product may vary due to geographical
considerations. This would require a considerable expenditure in
travel and lodging expenses. Additionally, the site of a traditional
focus group may or may not be in a locale convenient to a specific
client, so client representatives may have to incur travel and lodging
expenses as well.
Online Focus Groups
With the advent of large scale computer networks, such as the
Internet, it is now possible to link respondents electronically.
Respondents share images, data, and their responses on their
computer screens. This avoids a significant amount of travel
expenses. For instance, NFO Research, a large market research
company, has a system of on-line focus groups which allows
respondents from all over the country to gather, electronically,
while avoiding countless logistical headaches. Online groups are
usually limited to 6 or 8 participants. The biggest problem with
online focus groups is ensuring that the respondents are
representative of the broader population (including computer
non-users).
While such a system does eliminate some of the logistical headaches
and travel expenses associated with conducting focus groups, it
still requires one or more representatives from a client to be
physically located with the moderator conducting the focus group.
Only in this way can questions be added in real time to further
probe a particular response. Thus, even the online system incurs
some travel expenses since a client representative will need to travel
to a research site or vice versa.
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Accordingly, there is a need for a system and method of conducting
focus groups using remotely located participants, including one
or more moderators, one or more clients and one or more
respondents, who are all physically remote from each other. In
order to do this, such a system must allow for the implementation
of at least two separate chat discussions to be conducted
simultaneously between the three classes of focus group
participants to provide an electronic analog to a one-way mirror
segregating clients from respondents. In addition, such a system
must allow and prohibit participation in the different chat
discussions based on the class of the participant.
f. In Lead user analysis, instead of just asking users what they
have done, their solutions are collected more formally. Lead
users are those who face needs early that later will be general in
a market place; they are positioned to benefit significantly by
solving problems associated with these needs. Once a lead user
is identified, the concepts that company or person generates are
tested.
Lead users are an extremely valuable cluster of customers and
potential customers who can contribute to identification of future
opportunities and evaluation of emerging concepts. Understanding
these users can provide richness of information relatively efficiently.
Eric von Hippel introduced the concept of ‘Lead Users’ in the
mid 1980s. He defined the lead user as those users who display
the following two characteristics:
They face the needs that will be general in the market place, but face
them months or years before the bulk of that marketplace
encounters them
They are positioned to benefit significantly by obtaining a solution
to those needs Where a company has experience within a market
place, it should be relatively straight forward to identify those
customers who demand special solutions, push existing solutions
to the limit or who have customized standard products to satisfy
their own desires.
Von Hippel suggests that a key element in identifying lead users is
to first identify the underlying trends, which result in these users
or customers having a leading position. The lead users are those
who are at the leading edge of these trends.
Where possible, lead users should not necessarily be sought from
within the usual customer base, it can be useful to look beyond
existing customers perhaps to users of complementary or
substitute goods or in analogous markets. In addition, the lead
users may only have an interest in improvements or changes to
specific elements or attributes of a product.
There are few industries of product types where there are no lead
users who have requirements or demands ahead of the rest. By
targeting these clusters, it is possible to identify opportunities for
future products and evaluate emerging concepts. Where possible,
if lead users are sufficiently interested, then they can be considered
as a part of the extended product design team. They may even be
prepared to share the burden of investment in order to find a
suitable solution.
Furthermore, if today’s lead users do not find appropriate
solutions from existing suppliers, then they could well turn into
tomorrow’s competitors.
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Concept Identification
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During a New-product development process there is usually a
point where a concept is formed but there is no tangible usable
product that can be tested. The concept should be defined well
enough so that it is communicable. There may be simply a verbal
description, or there may be a rough idea for a name, a package, or
an advertising approach. The aim is to determine if the concept
warrants further development and to provide guidance on how it
might be improved and refined. Conjoint analysis typically is used
to obtain an ideal combination of the concept’s various features.
Thus, research questions might include:
• Are there any major flaws in the concept?
• What consumer segments might be attracted to it?
• Is there enough interest to warrant developing it further?
• How might it be altered or developed further?
Most concept testing, however, involves exposing people to the
concept and getting their reactions. In exposing people to the
concept, the market researcher needs to address a series of
questions:
• How are the concepts exposed?
• To whom are the concepts exposed?
• To what are they compared?
• What questions are asked?
It is important to make a distinction between the different types
of testing applied at different stages of the development process.
This helps the development team to understand the purpose of
each test and consider how data is to be captured.
Different testing methods will have different objectives, approaches
and types of modeling. Four general types of testing are described
in more detail:
• Exploratory tests
• Assessment tests
• Validation tests
• Comparison tests
ISO 9000 tests are also briefly summarised.
Exploratory Tests
Carried out early in the development process during the fuzzy
front end, when the problem is still being defined and potential
solutions are being considered, preferably once the development
team has a good understanding of the user profile and customer
needs. The objective of the exploratory test is to examine and
explore the potential of preliminary design concepts and answer
some basic questions, including:
• What do the users think about using the concept?
• Does the basic functionality have value to the user?
• Is the user interface appropriate and operable?
• How does the user feel about the concept?
• Are our assumptions about customer requirements correct?
• Have we misunderstood any requirements?
This type of early analysis of concepts is potentially the most
critical of all types of prototyping and evaluation, for if the
development is based on faulty assumptions or misunderstanding
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later on. Data collection will tend to be qualitative based on
observation, interview and discussion with the target audience.
Ideally, the customer should be asked to use the product without
training or prompting, to assess the intuitiveness of controls and
instructions. Some quantitative measures may be appropriate, such
as time to perform tasks, number of failures or errors.
Assessment Tests
While the exploratory test aims to explore the appropriateness of
a number of potentially competing solutions, the assessment
test digs into more detail with a preferred solution at a slightly
later stage of development. The main aim of an assessment test
is to ensure that assumptions remain relevant and that more
detailed and specific design choices are appropriate. The assessment
test will tend to focus on the usability or level of functionality
offered and in some cases, may be appropriate for evaluating early
levels of performance. Assuming that the right concept has been
chosen, then the assessment test aims to ensure that it has been
implemented effectively and answer more detailed questions, such
as:
• Is the concept usable?
• Does the concept satisfy all user needs?
• How does the user use the product and could it be more
effective?
• How will it be assembled and tested and could this be
achieved in a better way?
• Can the user complete all tasks as intended?
Assessment testing typically requires more complex or detailed
models than the exploratory test. A combination of analytical
models, simulations and working mock ups (not necessarily with
final appearance or full tooling) will be used.
The evaluation process is likely to be relatively informal, including
both internal and external stakeholders. Data will typically be
qualitative and based on observation, discussion and structured
interview. The study should aim to understand why users respond
in the way that they do to the concept.
Validation Tests
The validation test is normally conducted late in the development
process to ensure that all of the product design goals have been
met. This may include usability, performance, reliability,
maintainability, assembly methods and robustness. Validation
tests normally aim to evaluate actual functionality and performance,
as is expected in the production version and so activities should
be performed in full and not simply walked through.
It is probable that the validation test is the first opportunity to
evaluate all of the component elements of the product together,
although elements may have been tested individually already. Thus,
the product should be as near to representing the final item as
possible, including packaging, documentation and production
processes. Also included within validation tests will be any formal
evaluation required for certification, safety or legislative purposes.
Compared to an assessment test, there is a much greater emphasis
on experimental rigour and consistency. It may be preferable for
evaluation to be carried out independently from the design team,
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but with team input on developing standards and measurement
criteria.
Data from a validation test is likely to be quantitative, based on
measurement of performance. Normally, this is carried out against
some benchmark of expected performance. Usability issues may
be scored in terms of speed, accuracy or rate of use, but should
always be quantified. Issues such as desirability may be measured
in terms of preference or user ranking. Data should also be formally
recorded, with any failures to comply with expected performance
logged and appropriate corrective action determined.
Comparison Tests
A comparison test may be performed at any stage of the design
process, to compare a concept, product or product element against
some alternative. This alternative could be an existing solution, a
competitive offering or an alternative design solution. Comparison
testing could include the capturing of both performance and
preference data for each solution. The comparison test is used to
establish a preference, determine superiority or understand the
advantages and disadvantages of different designs.
ISO 9000 tests
ISO 9000 defines a number of test activities:
Design Review
A design review is a set of activities whose purpose is to evaluate
how well the results of a design will meet all quality requirements.
During the course of this review, problems must be identified
and necessary actions proposed.
Design Verification
Design verification is a process whose purpose is to examine design
and development outputs and to use objective evidence to confirm
that outputs meet design and development input requirements.
Design Validation
Design validation is a process whose purpose is to examine resulting
products and to use objective evidence to confirm that these
products meet user needs.
Product Evaluations and Development
The aim is to predict market response to determine whether or
not the product should be carried forward.
Use Testing
This gives the users a reasonable time to feel the product and
inquires their reactions and their intentions to buy it. Researchers
can contact respondents in shopping centers, by personal visits to
their homes or offices, or on telephone.
Limitations
• Due to unclear instructions, a misunderstanding, or lack of
cooperation, the respondents may nor use the product
correctly and may therefore report a negative opinion.
• The fact that they were given a free sample and are
participating in a test may distort their impressions.
• Even when repurchase opportunities were made available,
such decisions may be quite different than when they are
made in a more realistic store situation.
• The users will not accept the product over a long period of
time.
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• They may inflate their intention to buy. Consumers may say
that they will buy the product but may end up not doing so.
Blind-use Testing
Even though a product may be proved superior in the laboratory,
the consumer may not perceive it to be superior. For e.g., Amul
sweets, which was perceived as a superior by the company by all
standards, were introduced in the market. It was supposed to be
hit during Diwali time and advertisements were released to prop
up sales. Unfortunately the consumers perceived the product as a
premium product and did not substitute their purchases from
the local Halwai.
Predicting Trial Purchase
To predict trial levels of new, frequently purchased consumer
products, ESP (Estimating Sales Potential) model has been
developed. Trial levels were predicted on the basis of three variables:
• Product class penetration (PCP), the percentage of
households purchasing at least one item in the product class
within one year.
• Promotional expenditures-total consumer-directed
promotional expenditures on the product.
• Distribution of the product-percentage of stores stocking
the product (weighted by the store’s total sales volume).
Once the model is estimated, it can be applied to other new
products. The researcher simply estimates the percentage of
household using the product class, the total expenditures planned
for the new product, and the expected distribution level. The
model will then estimate the trial level that will be obtained.
Trial also can be estimated directly using controlled shopping
experience. A respondent is exposed to the new product promotion
and allowed to shop in a simulated store or in an actual store in
which the product is placed. The respondents then have an
opportunity to make a “trial” or first purchase of the product.
Pretest Marketing
Two approaches are used to predict the new brand’s market share:
Preference Judgments
Here the preference data are used to predict the proportion of
purchases of the new brand that respondents will make given
that the new brand is in their response set. These estimates for the
respondents in the study are coupled with an estimate of the
proportion of all people who will have the new brand in their
response set., to provide an estimate of market share. This is also
used to analyse the concomitant market share loses of other brands.
If the firm has other brands in the market, such information can
be critical.
Trial and repeat purchase levels: This is based on the respondent’s
purchase decisions and intentions-to-buy judgments. A trial
estimate is based on the percentage of respondents who purchase
the product in the laboratory, plus an estimate of the product’s
distribution, advertising (which will create product awareness),
and the number of free samples to be given away. The repeat-
purchase rate is based on the proportion of respondents who
make a mail order repurchase of the new brand and the buying-
intentions judgments of those who elected not to make a mail
order repurchase. The product of the trial estimate and the repeat
purchase estimate become a second estimate of market share.
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Test Marketing
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Test marketing allows the researcher to test the impact of the total
marketing program, with all its interdependence, in a market
context as opposed to the artificial context associated with the
concept and product tests that have been discussed.
Functions
• To gain information and experience with the marketing
program before making a total commitment to it.
• To predict the program’s outcome when it is applied to the
total market.
Types of Test Market
• The sell-in test markets are cities in which the product is
sold just as it would be in a national launch. The product has
to gain distribution space.
• The controlled-distribution scanner markets (CDSM)
are cities for which distribution is pre-arranged and the
purchases of a panel of customers are monitored using
scanner data.
Certain parameters that have to be looked into while deciding
sell-in test market:
• Representativeness: Ideally, the city should be fairly
representative of the country in terms of characteristics that
will affect the test outcome, such as product usage, attitudes
and demographics.
• Data Availability: Information about Store audit is helpful
in evaluating the test. The selected cities should contain
retailers who will cooperate with store audits.
• Media isolation and Costs: It is desirable to avoid media
spill-over. Using media that “spill-out” into nearby cities is
wasteful and increases costs. Conversely, “spill-in” media
from nearby cities can contaminate a test. Media cost is
another consideration.
• Product flow: It may be desirable to use cities that don’t
have much “product-spillage” outside the area.
• Number: A single city can lead to unreliable results because
of the variations across cities of both brand sales and
consumer response to marketing programs.
• Implementing and controlling: The test should be
controlled in such a manner that it ensures the marketing
program is implemented in the test area so as to reflect the
national program. The test itself may tend to encourage
those involved to enhance the effectiveness of the marketing
program. Salespersons may be more aggressive. Retailers
may be more cooperative. The competitors may react by
deliberately flooding the test areas with free samples or in-
store promotions. Even they can retaliate or can also
monitor the results themselves.
• Timing: Normally, a test market should be in existence for
one year, so that all important seasonal/cultural factors can
be observed and estimated.
• Measurement: The basic measure is sales based on
shipments or warehouse withdrawals. Store audit data
provide actual sales figures and are not sensitive to inventory
fluctuations. They also provide information on: distribution,
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such as brand awareness, attitude, trial purchase, and repeat
purchase are obtained directly from the consumer. This
information helps evaluate the marketing program and can
help interpret sales data. The most useful information
obtained from consumers is whether they bought the
product at least once, whether they were satisfied with it, and
whether they repurchased it or plan to.
• Costs: Costs which are quantifiable, include - development
and implementation of the marketing program; preparation
of test products; administration of the test and collection of
data associated with the test. The costs and risks that may
delay the launch of a new product are more difficult to
quantify. If a new product launch is delayed, an opportunity
to gain a substantial market position might be lost.
Pricing Research
Research may be used to evaluate alternative price approaches for
new products before launch or for proposed changes in products
already in the market.
Pricing Approaches
• Gabor and Grainger Method (Price skimming strategy),
where different prices for a product are presented to
respondents, who then are asked if they would buy. A “buy-
response” curve of different prices, with the corresponding
number of affirmative purchase intentions, is produced. The
objective is to generate as much profit as possible in the
present period.
• Multibrand-choice Method (Share penetration strategy),
where respondents are shown different sets of brands in the
same product category, at different prices, and are asked
which they would buy. This allows the respondents to take
into account competitors’ brands, as they normally would
outside such a test. Thus, this technique represents a form
of simulation of the point of sale. The objective is to
capture an increasingly larger market share by offering a lower
price. Pricing research for the two different approaches differs
substantially in terms of the information sought.
Following questions are generally asked with regard to pricing
research:
• At what price would you consider the product to be so
expensive that you would not consider buying it? (Too
expensive)
• At what price would you consider the product to be priced
so low that you would feel the quality couldn’t be very good?
(Too cheap)
• At what price would you consider the product starting to get
expensive, so that it is not out of the question, but you
would have to give some thought to buying it? (Expensive)
• At what price would you consider the product to be a
bargain-a great buy for the money? (Cheap)
Research for Skimming Pricing
This is based on the concept of pricing the product, at the point at
which profits will be the greatest until market conditions change
or supply costs dictate a price change. Under this strategy, the
optimal price is the one that results in the greatest positive difference
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between total revenues and total costs. This implies that the
researcher’s major tasks are to forecast the costs and the revenues
over the relevant range of alternative prices.
Research for Penetration Pricing
This is based on the concept that average unit of production costs
continue to go down as cumulative output increases. Potential
profits in the early stages of the product life cycle are sacrificed in
the expectation that higher volumes in later periods will generate
sufficiently greater profits to result in overall profit for the product
over its life.
Following pricing pattern is adopted to increase market share:
a. Offer a lower price (even below cost) when entering the
market.
b. Hold that price constant until unit costs produce a desired
percentage markup.
c. Reduce price as costs fail to maintain markup at the same
desired percentage.
Despite the ubiquitous nature of the above questions, researchers
commonly encounter four limitations when using this approach
for pricing research:
I. it provides no competitive information.
II. it relies on price awareness.
III.it is inefficient when evaluating numerous product
specifications.
IV.it relies on aggregate-level analysis.
Each limitation is discussed below.
Provides no Competitive Information
A concept test asks respondents to evaluate how likely they would
be to purchase a specific product without any information about
other products that might be available in the market. When
shopping, consumers generally have the chance to see a set of
competing products and pick one from the set. When presented
with a set of products to select from, consumers can make trade-
offs between features and price to determine their preferred product.
In the absence of this comparative task, respondents may have
difficulty answering reliably.
Relies on Price Awareness
The respondent compares the price presented in the concept to an
internal reference price to determine if the price is fair or not. This
determination is based on a respondent’s awareness of the current
pricing in the category.
Inefficient to Evaluate Various Product Specifications
Often, a researcher would like to evaluate a small number of
specific product variations at the same time price is being evaluated.
For instance, there might be an interest in the market’s willingness
to pay for a specific feature or how the inclusion or exclusion of a
product characteristic influences purchase likelihood. The concept
test can be used to evaluate these various specifications. However,
most researchers would suggest that each respondent only evaluate
one concept. Therefore to evaluate various product specifications,
the total sample size must grow. To illustrate, if we wished 200
observations per cell, and we are only testing three prices (three
cells), we would require 600 respondents. However, if we have
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three alternative product variations, with each variation at three
prices, we now have nine cells and would require 1800 respondents.
Relies on aggregate-level analysis
A concept test will rely on aggregate, or at most subgroup-level
analysis. That is, this approach will make respondent’s
heterogeneity difficult to detect and measure.
The traditional concept test can be effectively used in pricing
research when the product features are already determined, the
level of price awareness is high, and the competitive context is
such that evaluating a single product is not too limiting.
Distribution Research
Traditionally, the distribution decisions in marketing strategy
involve:
• The number and location of salespersons,
• Retail outlets,
• Warehouses, and
• The size of discount to be offered.
The discount to be offered to the members in the channel of
distribution usually is determined by what existing or similar
products are offered, and also whether the firm wants to follow a
“push” or a “pull” strategy.
Warehouse and Retail Location Research
Location decisions include:
“What costs and delivery time would result,
if we choose one location over another?”
The approximate location (optimal location), that will minimize
the distance to customers, weighted by the quantities purchased,
will have to be determined. Chain shops with multiple outlets
and franchise operations must decide on the physical location of
their outlets. Data about surrounding residential neighbourhood,
income levels, and competitive stores would help in choosing
optimal location.
Number and location of Sales Representatives
How many sales representatives should be there in a given territory?
Approaches
• Sales effort approach- when the product line is first
introduced and there is no operating history to provide sales
data. This is done by:
ii. Estimating the number of sales calls required to sell
to, and to service, prospective customers in an area for
a year. This will the sum of the number of visits
required per year to each prospect (customer) in the
territory.
iii. Estimating the average number of sales calls per
representative that can be made in that territory.
iv. Divide the estimate in step (i) by the estimate in step
(ii) to obtain the number of sales representatives
required.
• Statistical analysis approach- is used after the sales
program is under way. Once a sales history is available from
each territory, an analysis can be made to determine if the
appropriate number of sales representatives is being used in
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each territory. An analysis of actual sales versus market
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potential for each sales representative can be made. Also,
following inferences can be made:
i. Average market potential is less as per each sales
representative
ii. Territory, which have too many sales representatives
iii. Market potential is more but have too few sales
representatives
• Field Experiment approach- is also applicable only after
the sales program has begun. Experiments are done with the
calls made, to determine the number and location of sales
representatives. This is done in two ways:
i. Making more frequent calls on some prospects and
less frequent calls on others, in order to see the effect
on overall sales, keeping the number of sales
representatives unchanged.
ii. Increasing the number of representatives in some
territories and decreasing them in others to determine
the sales effect.
Promotion Research
Here the focus is on the decisions that are commonly made when
designing a promotion strategy. The decision for the promotion
part of a market strategy can be divided into:
• Advertising decisions, which have long-term effects.
• Sales Promotion decisions, which affect the company in
the short term.
Companies spend more time and resources on advertising research
than on sales promotion research because of the greater risk and
uncertainty in advertising research.
Advertising Research: Advertising decisions are more costly and
risky. Advertising research involves generating information for
making decisions in the:
• Awareness stage
• Recognition stage
• Preference stage, and
• Purchasing stage
Most often, advertising research decisions are about advertising
copy. Marketing research helps to determine how effective the
advertisement will be. Research on media decisions is separate
from advertising research.
The effectiveness of an advertisement depends upon the brand
involved and its advertising objectives. Four categories are used in
advertising research:
• Advertisement recognition
• Recall of the commercial and its contents
• The measure of commercial persuasion, and
• The impact on the purchase behavior.
Advertising Recognition
The respondents are tested whether they can recognize the
advertisement as one they have seen before.
95
 References
RESEARCH METHODOLOGY

Donald R. Cooper – Business Research Methods, Tata McGraw –

Hill Publication
Easterby-Smith M et al- Management Research-an introduction
(Sage Publications, 1991)
Gallagher, J. William, “Report Writing for Management”, Addison-
Wesley
Golen, P. Stevan, “Report Writing for Business and Industry”,
Business Communication Service
Kothari C R – Quantitative Techniques (Vikas Publishing House
3rd ed.)
Levin R I & Rubin DS - Statistics for Management (Prentice Hall
of India, 2002)
Nargundkar R – Marketing Research Text and Cases (Tata McGraw-
Hill 2002)
Miller D C- Handbook of Research Design and Social
Measurement (Sage Publications, 1991)
Paul D. Leedy, Practical Research: Planning & Design, Prentice Hall
R. Lesikar and John Pettit, Report Writing for Business
Notes

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96 11.556

LESSON 16:
DATA CODING AND ANALYSIS
Students, today we shall be doing the most crucial step in research
process- Data coding and Data Analysis. This stage of data entry
and coding comes after the collection of desired information is
the coding and analysis of data.
Once the information is tabulated, it is easy to perform various
statistical tests for their validity, accuracy and significance. This
step seems very simple, although it is not so. Gathered information
should be presented in such a manner that even a layman
understands what, why, when and how of information.
Data Entry
It is the process of taking completed questionnaires\surveys and
putting them into a form that can readily be analyzed.
A series of options need to consider when you enter the
information you have gathered.You will first have to decide on a
file format and then devise a code for analysis.
Decision on File Format
It comprises of decisions regarding:
• The way the data will be organized in a file
• Order of information collected
• How subject is referenced
• Constructing individual records
• History of 80-column format
• Application to statistics programs
Devise Code for Analysis
The main points you want to remember while devising the code
for analysis are:
• Set of rules that translates answers into discrete values
• Alphabetical or Numerical depending on measurement scale
• Preserve level of measurement for each item
• General Considerations (closed questions):
a. Now, we will discuss these in detail for the better understanding.
• First of all you should try to make coding translation
simple
• Coding should be done minimizing effort and risk
of coding errors
• Remember the Item-level: Leave #s as #s (#s can be
nominal).
• Perform Reverse coding/Unfolding complex response
formats.
• For Test-level: you code questions in order of
appearance.
• You have to be consistent in assigning values with
similar responses
• You should identify the question groups within test.
B. It should help in facilitating data interpretation
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UNIT III
• How missing data are treated
RESEARCH METHODOLOGY
You should have knowledge about :
i. Non-ascertained Information has to be recognized:
information not obtained because of interviewer or
respondent performance.
• Reason for failure to ask question
• Failure to obtain appropriate response
• Refusal to answer question (separate)
ii. Inapplicable Information: information does not apply to a
particular respondent
iii.Unknown information: information as to respondent’s
claim of awareness (How to treat “Don’t know” option)
c. Entry of Data
• You should fix up the number of translation steps
between subject’s response and readable data file
• Computer assisted techniques: 1
• Digital answer format (Scantron):
• Entry by hand: 4
• Impacts ability to check quality of data entry (accuracy,
reliability)
d. Clean Data File
• You should examine each data file to ensure each record is
complete and in order
• You should remove non-legal codes
• Then you should replace it with information from
original response format
• Proper importance should be given to verification
The problem most decision makers must resolve is how to deal
with the uncertainty that is inherent in almost all aspects of their
jobs. Raw data provide little, if any, information to the decision
makers. Thus, they need a means of converting the raw data into
useful information. In this lecture note, we will concentrate on
some of the frequently used methods of presenting and
organizing data.
Frequency Distribution
The easiest method of organizing data is a frequency distribution,
which converts raw data into a meaningful pattern for statistical
analysis.
The following are the steps of constructing a frequency
distribution:
1. Specify the number of class intervals. A class is a group (category)
of interest. No totally accepted rule tells us how many intervals
are to be used. Between 5 and 15 class intervals are generally
recommended. Note that the classes must be both mutually
exclusive and all-inclusive. Mutually exclusive means that classes
must be selected such that an item can’t fall into two classes,
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 and all-inclusive classes are classes that together contain all the
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data.
2. When all intervals are to be the same width, the following rule
may be used to find the required class interval width:
W = (L - S) / K where: W= class width, L= the largest data,
S= the smallest data, K= number of classes
Example
Suppose the age of a sample of 10 students are:
20.9, 18.1, 18.5, 21.3, 19.4, 25.3, 22.0, 23.1, 23.9, and 22.5
We select K=4 and W=(25.3 - 18.1)/4 = 1.8 which is rounded-up
to 2. The frequency table is as follows:
Class Interval...............Class Frequency............Relative
F r e q u e n c y Ogive is also used to graph cumulative frequency. An ogive is
18-U-20................................3..................................30%
20-U-22................................2..................................20%
22-U-24................................4..................................40%
24-U-26................................1..................................10%
Note that the sum of all the relative frequency must always be
equal to 1.00 or 100%. In the above example, we see that 40% of
all students are younger than 24 years old, but older than 22 years
old. Relative frequency may be determined for both quantitative
and qualitative data and is a convenient basis for the comparison
of similar groups of different size.
What Frequency Distribution Tells Us
1. It shows how the observations cluster around a central value;
and
2. It shows the degree of difference between observations.
For example, in the above problem we know that no student is
younger than 18 and the age below 24 is most typical. The most
common age is between 22 an 24, which from general information
we know to be higher than usual for the students who enter
college right after high school and graduate about age 22. The
students in the sample are generally older. It is possible that the
population is made up of night students who work on their
degrees on a part-time basis while holding full-time jobs. This
descriptive analysis provides us with an image of the student
sample, which is not available from raw data. As we will see in
lecture number 3, frequency distribution is the basis for probability
theory.
Stated & True Class Limits
True Classes are those classes such that the upper true (or real)
limit of a class is the same as the lower true limit of the next class.
For comparison, the stated class limits and true (real) class limits
are given in the following table:
Stated Limit................True Limits
$600 - $799.................$599.50 up to but not including $799.50
$800 - $999.................$799.50 up to but not including $999.50
In the first column of the above table the data were rounded to
the nearest dollar. For example, $799.50 was rounded up to $800
and tallied in the second class. Any amount over $799 but under
$799.50 was rounded down to $799 and included in the first class.
Thus, the $600 - $799 class actually includes all data from $599.50
inclusive up to but not including $799.50.
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98
Cumulative Frequency Distribution
When the observations are numerical, cumulative frequency is
used. It shows the total number of observations which lie above
or below certain key values.
Cumulative Frequency for a population = frequency of each class
interval + frequencies of preceding intervals. For example, the
cumulative frequency for the above problem is: 3, 5, 9, and 10.
Presenting Data
Graphs, curves, and charts are used to present data. Bar charts are
used to graph the qualitative data. The bars do not touch, indicating
that the attributes are qualitative categories, variables are discrete
and not continuous.
Histograms are used to graph absolute, relative, and cumulative
frequencies.
constructed by placing a point corresponding to the upper end of
each class at a height equal to the cumulative frequency of the class.
These points then are connected. An ogive also shows the relative
cumulative frequency distribution on the right side axis.
A less-than ogive shows how many items in the distribution
have a value less than the upper limit of each class.
A more-than ogive shows how many items in the distribution
have a value greater than or equal to the lower limit of each class.
A less-than cumulative frequency polygon is constructed by
using the upper true limits and the cumulative frequencies.
A more-than cumulative frequency polygon is constracted by
using the lower true limits and the cumulative frequencies.
Pie chart is often used in newspapers and magazines to depict
budgets and other economic information. A complete circle (the
pie) represents the total number of measurements. The size of a
slice is proportional to the relative frequency of a particular category.
For example, since a complete circle is equal to 360 degrees, if the
relative frequency for a category is 0.40, the slice assigned to that
category is 40% of 360 or (0.40)(360)= 144 degrees.
Pareto chart is a special case of bar chart and often used in quality
control. The purpose of this chart is to show the key causes of
unacceptable quality. Each bar in the chart shows the degree of
quality problem for each variable measured.
Time series graph is a graph in which the X axis shows time
periods and the Y axis shows the values related to these time
periods.
Stem-and-leaf plots offer another method for organizing raw
data into groups. These types of plots are similar to the histogram
except that the actual data are displayed instead of bars. The stem-
and-leaf is developed by first determining the stem and then
adding the leaves. The stem contains the higher-valued digits and
the leaf contains the lower-valued digits. For example, the number
78 can be represented by a stem of 7 and a leaf of 8. Thus, the
numbers 34, 32, 36, 20, 20, 22, 54, 55, 52, 68, and 63 can be
grouped as follows:
Stem...............Leaf 2....................0..0..2 3....................2..4..6
4 5....................2..4..5 6....................3..8
Steps to Construct a Stem and Leaf Plot
1. Define the stem and leaf that you will use. Choose the units
for the stem so that the number of stems in the display is
between 5 and 20.
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RESEARCH METHODOLOGY
at the top and the largest stem at the bottom. Include all
stems in the range of the data, even if there are some stems
with no corresponding leaves.
3. If the leaves consist of more than one digit, drop the digits
after the first. You may round the numbers to be more
precise, but this is not necessary for the graphical description
to be useful.
4. Record the leaf for each measurement in the row
corresponding to its stem. Omit the decimals, and include a
key that defines the units of the leaf.
See the following figures:

References:
Aaker D A , Kumar V & Day G S - Marketing Research (John
Wiley &Sons Inc, 6th ed.)
Donald R. Cooper – Business Research Methods, Tata McGraw –
Hill Publication
Notes

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RESEARCH METHODOLOGY
LESSON 17:
PRINCIPLES OF STATISTICAL INFERENCE AND CONFIDENCE INTERVALS
In this chapter we shall learn to apply techniques of statistical
inference to business situations. I will first introduce the basic idea
underlying statistical inference and hypothesis testing. Our focus
will be more on understanding key concepts intuitively and less
on formulas and calculations, which can be done easily on
computers.
A business manager in a typical managerial situation needs to
determine whether results based on samples can be generalized to
a population. Different management situations require different
statistical techniques to carryout tests regarding the applicability of
sample statistics to a population.
By the end of this unit you should be able to
• Understand the nature of statistical inference
• Understand types of statistical inference
• Understand the theory behind statistical inference
• Apply sampling theory concepts to confidence intervals and
estimation
Nature of Statistical Inference
What is Statistical Inference?
We have seen that all managerial/ business situations involve
decision making in situations with incomplete information. When
a particular finding emerges from data analysis the manager asks
whether the empirical findings represent the true picture or have
occurred as a result of sampling accident.
Statistical inference is the process where we generalize from sample
results to a population from which the sample has been drawn.
Thus statistical inference is the process where we extend our
knowledge obtained from a random sample which is only a small
part of the population to the whole population.
Where do we use Statistical Inference?
Let us think of a typical managerial situation: Imagine you are a
purchase manager. Your basic problem is to ensure that a
consignment of Aluminum sheets supplied to you by a supplier
correspond to the required specification of .04 inch thickness.
How do you go about ensuring this?
One way would be to accept blindly what ever your suppliers
claim. Another option would be to audit each and every item.
Clearly this would be both very time consuming and expensive
and would result in an unacceptably low level of productivity.
Another option is for the manger to choose a random sample of
100 aluminum and measures them for their thickness. He finds
for example that the sheets in the sample have an average thickness
of .048 inches. On tzhe basis of past experience with the supplier
the manager believes that the sheets come from a population with
a standard deviation of .004inches. On the basis of this data he
has to make a decision whether the to accept or reject a consignment
of 10,000 sheets.
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100
To solve problems such as this we have to learn how to use
characteristics of samples to test an assumption about the
population from which the sample comes from. This in effect is
the process of statistical inference.
The issue facing the manager in the above example is:
• Could a sample of 100 aluminum sheets with average
thickness of .048 inches have come from a population with a
average thickness of .04 inches?
• Does the sample estimate of thickness differ from the
population estimate due to sampling error or is it because
our fundamental assumption about the mean thickness of
the underlying population is not correct?
• Suppose he believes it to be the first case and accepts the
consignment, what is the risk that he runs that the
consignment is flawed and does not conform to quality
standards of .04 inches?
This is just one example of a very typical managerial situation
where the principles of statistical inference can be put to use to
solving the manager’s dilemma.
Types of Statistical Inference
Broadly statistical inference falls into two major categories:
estimation and hypothesis testing. Both are actually two sides of
the same coin and can be regarded as representing different aspects
of a technique.
Below I briefly explain each of them.
1. Estimation
This is concerned with how we use sample statistics to estimate
population parameters. It is not necessary that an estimate be
based on statistical data. All managers make quick estimates based
on incomplete information, gut feel and intuition. Thus an estimate
of sales for the next quarter can be based on gut feel or on an
analysis of past sales data for the quarter. Both represent estimates.
The difference between a estimate based on intuition and one
based on a random sample is that we can apply the principles of
probability allows us to calculate percentage of error variation in
an estimate attributable to sampling variation.
The sample mean for example can be used as an estimate of the
population mean. Similarly the percentage of occurrence in a sample
of an attribute or event can be used to estimate the population
proportion . To explain the concept a little more clearly we can
look at a few examples of estimation:
• University departments make estimates of next years
enrollments on the basis of last years enrollments in the
same courses.
• Credit managers make estimates about whether a purchaser
will pay his bills on the basis of past behaviour of
customers with similar characteristics or their past repayment
record
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2. Hypotheses Testing
If we find a difference between two samples, we would like to
know, is this a “real” difference (i.e., is it present in the population)
or just a “chance” difference (i.e. it could just be the result of
random sampling error).
Hypothesis begins with an assumption called a hypothesis that
we make about a population parameter. We then collect sample
data and calculate sample statistics such as mean, standard deviation
to decide how likely it is that our hypothesized population
parameter is correct. Essentially the process involves judging
whether a difference between a sample and assumed population
value is significant or not. The smaller the difference the greater
the chance that our hypothesized value for the mean is correct.
Some examples of real world situations where we might want to
test hypotheses:
• A random sample of 100 south Indian families finds that
they consume more of a particular brand of Assam tea per
family than a random sample of 100 North Indian families.
It could be that the observed difference was caused by
sampling accident and that there is actually no difference
between the two populations. However if the results are not
caused by pure sampling fluctuations then we have a case for
the firm to take some further marketing action based on
sampling finding.
• Colgate Palmolive have decided that a new TV ad campaign
can only be justified if more than 55% of viewers see the
ads. In this case the company requests a marketing research
company to carryout a survey to assess viewership. The
agency comes back with a ad penetration of 50% for a
random sample of 1000. It is now the company’s problem
to assess whether the sample viewing proportion is
representative of the hypothesized level of viewership that
the company desires, i.e 55%. Can differences between the
two proportions be attributed to sampling error or is the
ads true viewership actually lower.
In the next section we shall look at the theory behind statistical
inference. The basis of inference remains the same irrespective of
whether the managerial objective is to obtain a point or interval
estimate of a population parameter or to test whether a particular
hypotheses is supported by sample data or not.
Activities
1. What is statistical inference? What are the different types of
inference?
2. Why do decision makers measure samples rather than entire
population? What are the disadvantages of sampling?
Theory behind Statistical Inference
We now look at the underlying theoretical basis of statistical
inference. The underlying basis of statistical inference is the theory
of sampling distributions.
Now we shall briefly review some concepts, which have been dealt
with in more detail in the earlier chapter on sampling.
What is a Sample?
A sample is a representative subset of the underlying population.
For each sample that is taken from a population we can calculate
various sample statistics such as mean and variance. We can take
© Copy Right: Rai University
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many such samples from a population and calculate their mean
RESEARCH METHODOLOGY
and standard deviations. Given the existence of sampling variation
it is likely that there is also going to be some variability in the
different estimates of mean and standard deviations. This can be
explained best with the help of an example:
Suppose there is a store which sells CDS . We assume it has a
regular customer base. A random sample of 100 customers is
taken and we find the sample mean age of customers was equal
to 42years, with a standard deviation of 5 years. However this is
only one possible sample, which could have been taken. A second
different sample may have had a result where mean was equal to
45 years and standard deviation of 6 years. To change a sample we
need only change one of the customers. We would expect samples
taken from a population to generate similar if not identical sample
means. If we take repeated samples such that all possible samples
are taken then we are likely to obtain a sampling distribution of
means.
What does this Distribution Look Like?
Logically we can conceive that there is only one sample which will
contain the youngest possible customers and its mean will have
the lowest sample mean. Similarly there will be another couple of
samples having the lowest 99 customers. These samples will have
means, which are slightly higher than the lowest mean. A
somewhat higher number will contain the youngest 98 customers
and so on.
The majority of the samples will have a cross section of all age
groups and therefore there would be a clustering of sample means
around what is likely to be the true population mean. The
distribution of sample means will look like the normal
distribution as shown in the figure1 below.
Sampling distribution of sample mean values
µ
Figure 1
This result follows from the Central Limit theorem : if we take
random samples of size n from a population, the distribution of
sample means will approach that of a normal probability
distribution. This approximation is closer the larger is n.
We do not actually know what form our population distribution
takes: it could be normal or it could be skewed. However it doesn’t
matter, as the sampling distribution will approximate a normal
distribution as long as sufficiently large samples are taken.
Normal Distribution
We now look briefly at some of the key characteristics of the
normal distribution.
The normal sampling distribution can be summarized by its two
statistics:
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 • Mean F
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• standard deviation
Logically we can see that the mean of the sampling distribution
should equal the mean of the population. The standard deviation
of the sampling distribution is given by / ”n, where is the
population standard deviation and n is the sample size. Thus the
sampling distribution of the mean can be defined in terms of its
mean and standard deviation.
However we should be clear We are talking about three different
statistics:
Mean Standard
Deviation
Sample x s population mean lies outside this range. This is illustrated in
Population µ s
Sampling distribution of mean µ
The three distributions are illustrated below:
Sampling distribution of the Population
The two distributions are illustrated in figure2 below. As can be
seen the sampling distribution of the sample mean is far more
concentrated than the population distribution. However both
distributions have the same mean m.
Figure 2
Application of sampling theory concepts to confidence
intervals.Once we have calculated our sample mean we need to
know where it lies in the sampling distribution of the mean in
relation to the true mean of the sampling distribution or the
population mean. It might be higher than the population mean
or lower, or it might be identical with the population mean. While
we cannot know for certain where the sample mean lies in relation
to the population mean we can use probability to assess its likely
position vis a vis the population mean.
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102
From our earlier classes we know that irrespective of the values of
and , for a normal probability distribution, the total area under
the normal curve is 1.00. Further specific portions of the normal
curve lie between plus/ minus any given number of standard
deviations from the mean.
These results are summarized below:
• Approx 68% of all values in a normally distributed
population lie within ±1 standard deviation from the mean.
Approximately 16% of the area lies on either side of of the
population mean lies outside this range. This is illustrated in
the figure 3.
• Approx 95.5% of all values in a normally distributed
population lie within ± 2 standard deviation from the mean.
Approximately 2.25% of area on either side of the
the figure4.
• Approx 99.7% of all values in a normally distributed
population lie within ±3 standard deviation from the mean .
This is illustrated in the figure5. Only .15% of the area under
the curve on either side of the mean lies outside this range.
Figure 3,4,5
Standard Normal Distribution
However we rarely need intervals involving only one, two or three
standard deviations. Statistical tables provide areas under the
normal curve that are contained by any number of standard
deviations (plus/ minus ) from the mean. We do this by
constructing the standard normal distribution which is
standardized .Thus all normal distributions with mean and
standard deviation can be transformed into a standard normal
distribution with µ =0 and s =1. This transformation is done
using the z statistic where
Z= x - µ/ s
s
The distribution of the z statistic represents the standard normal
distribution with mean µ =0 and standard deviation s =1.
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With the normal table we can determine the probability that the

RESEARCH METHODOLOGY
sample mean c lies within a certain distance from the population
mean.. The distance from the mean is defined in terms of number
of standard deviations away from the mean.
How do we do this?
This follows from the result that, irrespective of the shape of the
normal curve, the area under the normal curve for a distance of
one ,two or three or any given number of standard deviations is
the same across all curves. Therefore all intervals containing the
same number of standard deviations from the mean contain the
same proportion of the total area under the curve. Hence we can
make use of only one standard normal distribution.
Using the Standard normal probability distribution
The figure 6 below shows the raw scale and the standard normal
transformation. The standardized normal variable is z= x-FII/
s
As can be seen from the figure5 below, z actually represents a
transformation or change in measurement scale on the horizontal
axis. Thus in the raw scale the m=50. In the standard normal scale
this value is transformed to m=0.

Figure 5
The Standard normal probability table is organized in terms of z
values . It only gives the z values for half the area under the curve.
Because the distribution is symmetric: values which hold for one
half of the distribution are true for the other.
So far we have tried to understand the theory of sampling
underlying confidence intervals. We now turn to defining what
exactly is a confidence interval.
References
Aaker D A , Kumar V & Day G S - Marketing Research (John
Wiley &Sons Inc, 6th ed.)
Diamantopoulos A and Schlegelmilch A- Taking the fear out of
Data Analysis (Dryden Press, 1997)
Communication Service
Kothari C R – Quantitative Techniques (Vikas Publishing House
3rd ed.)
Levin R I & Rubin DS - Statistics for Management (Prentice Hall
of India, 2002)
Notes

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RESEARCH METHODOLOGY
LESSON 18:
STATISTICAL INFERENCES & SAMPLING DISTRIBUTION
In the last lesson we focused on understanding the theoretical
foundations of statistical inference and sampling distributions.
In this lesson we will look at the concept of confidence interval
estimation in more detail and attempt to understand it intuitively
as well as its applications to management situations. We had also
examined the concept of confidence intervals. Managers are always
making estimates. The confidence limits help define the limits of
these estimates. The concept applies as we shall see even when we
make a non statistical estimate We shall continue with this concept
in this lecture and attempt to understand intuitively what we
mean by a confidence interval. We shall also spend some time
practicing applications of the principles we have learnt in this
lesson to practical situations.
By the end of this chapter you should be able to :
• Apply concepts of Interval estimates, Confidence intervals
and confidence levels to business situations
• Learn to interpret a confidence interval
• Determine factors influencing choice of technique
• Examine issues relating to the determination of level of
significance
Standard Error
Students, there some important concepts which one needs to
understand issues as confidence intervals. One of these concepts
is standard error.
The standard deviation of sampling distribution is known as
standard error (S. E.). This is equal to population standard
deviation divided by square root of sample size.
SE of mean=
Confidence Intervals
In the earlier sections we saw that the same proportion of area
under the normal curve lies within plus/minus any given number
of standard deviations and these can be related to specific
probabilities. We can use this property to make a statement about
the probability that that a particular interval – defined in terms of
number of standard deviations from the mean – contains the
population mean.
A confidence interval around a sample mean would be defined as:
Thus we can see that the concept of confidence interval therefore
provides an interval estimate around >x which would essentially
represent the extent of sampling error.
Examples of application of confidence interval estimation
1. From a population with variance of 185, a sample of 64
individuals has an estimate of mean =217.
i. Find the SE of mean.
ii. Establish an interval estimate that should include the
population mean 68.3% of the time.
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104
Activities
1. From a population known to have a standard deviation of
1.4, a sample of 60 is taken. The mean is found to be 6.2.
i. Find the SE of the mean.
ii. Establish an interval estimate around the mean, using
one standard error of the mean.
Ans : i. 181 ii. (6.019, 6.381)
2. University of Delhi is conducting a study on the average
weight of the bricks that make up the university’s paths.
Workers were sent to dig up and weigh a sample of 421
bricks . The average sample mean weight was 14.2 kg. It is
well known fact that standard deviation of brick weight was
.8kgs.
i. Find the SE of the mean
ii. What is the interval around the sample mean that will
include the population mean 95.5% of the time?
Ans: i. .0390kgs ii. (14.122kgs, 14.278kgs)
Understanding confidence levels and confidence intervals
What is a Confidence Level?
In statistics the probability associated with an interval estimate is
called the confidence level. This probability indicates how confident
we are that the interval estimate will include the population
parameter. A higher probability means more confidence. The most
commonly used confidence levels are: 90%, 95%, 99%. These are
not the only confidence levels, we can for example have a 95.5% or
80% confidence level.
What is a Confidence Interval?
This is the range of the estimate we are making. For example we
can say that the mean income of the population will lie between
Rs 8000-Rs24000/. Confidence intervals can also be expressed in
terms of standard errors than in numerical values:
Mean+1.64SE = upper limit of 90% confidence interval
Mean-1.64SE = lower limit of 90% confidence interval
What is the relationship between confidence level and confidence
interval?
Somehow we have a perception that a high confidence levels such
as 99% means a high degree of accuracy. In fact it can mean the very
opposite as it will produce a larger confidence interval. Larger
confidence intervals mean that estimates are not so precise and
there is an element of fuzziness about them.
11.556
These concepts are not just used in statistics but have relevance to
our day-to-day life where we frequently set up confidence intervals
and try to establish the associated confidence level with that interval
level. An example can best illustrate the relation between the two.
A customer is interested in getting his washing machine repaired.
He discusses the possible time frame for getting his repair done
with the maintenance manager of the service center.
The table below shows that as the customer sets tighter and tighter
confidence intervals, the service center manager hedges by agreeing
to a lower and lower level of confidence.
Will my machine be repaired ..
Customer’s demand Manager’s hedge
.. within a year I am absolutely certain (99%)
..within a month I am almost positive (95%)
..within a month I am pretty sure of it(80%)
.. by tomorrow I am not certain that I can manage it (40%)
..immediately There is little chance that of that (1%)
As we can see as the customer sets tighter and tighter confidence
intervals the manager sets progressively lower confidence levels.
Finally the when the confidence interval is very narrow (will I get it
immediately?) the estimate is associated with a very low level of
confidence as to be useless (1%).
Ultimately there are no free lunches when it comes to dealing with
confidence intervals and levels. The manager has to weigh the
benefit of high confidence levels or certainty associated with a
decision with the cost of having to accept a lower level of accuracy.
Interpreting a Confidence Interval
How do we interpret a confidence interval?
The process of sampling is such that we use one sample to
estimate a population parameter. When we set up a confidence
interval around a sample mean along with an associated confidence
level , what exactly do we mean?
This concept can be illustrated more clearly with the help of an
example:
A company estimates, on the basis of a sample of 100, that the
life of car batteries it manufactures is 36 months. In probability
terms we can make the following statements:
We can say that we are…
• 68.3% confident that the true life in the interval 35.293 to
36.707 months(36±1) standard error
• 95.5% confident that the true life in the interval 34.586 to
37.414 months(36±2 standard error)
• 99.7% confident that the true life in the interval 33.879 to
38.121 months(36±3 standard error)
For example we say that we are 95.5% confident that the mean life
of a battery lies within 34.586 and 37.414 months.
This does not mean that there is a 95.5% probability that the
mean life of all batteries falls within the interval established.
Instead it means that if we select many random samples of the
same size and calculate a confidence interval around the mean of
each of these samples , then in about 95% of these cases the
population mean will lie within that interval.
© Copy Right: Rai University
11.556
Similarly the following two statements express a confidence
RESEARCH METHODOLOGY
interval:
• 95.5% of all sample means are within ± 2 standard
deviations of the population mean Or equivalently
• There is a 95.5% probability that lies within ± 2 standard
errors of all sample means.
What do these Statements Mean?
What we mean is if we select 1000 samples at random from a
given population and then construct a ±2 standard deviations
interval around the mean of each of these samples, we will find
that approx 95% of these intervals will include the population
mean. Similarly the probability is 68.3% that the mean of the
sample will be within ± of 1 standard deviation.
The fig1 below illustrates this graphically. We show the ±2 standard
error interval for five different samples. The sample intervals for
each sample mean is also shown. are shown in figure 7. As we can
see only the interval around >x 4 does not contain the population
mean.
Figure1
In other words we expect that in 95.5% of samples the population
mean would be located in an interval ±2 standard error from the
sample mean. Ultimately the confidence level for an estimate is
based on the expected results if the sampling process is repeated
many times.
Solving Problems based on Confidence Interval
Estimation
It is easy to solve problems on confidence intervals if we
understand that a confidence level is defined by how many SE
from there are on either side of the mean. This is indicated by the
shaded region in a diagram of the normal distribution( see fig 1).
The normal tables given in the appendix co nvert any desired level
of confidence into standard errors from the mean of a standard
normal distribution. Since we have information regarding one
standard error we can calculate the end points or limits by SE
multiplied by the appropriate z statistic. These represent the limits
of our confidence interval. If the population standard deviation
is not known we can use sample standard deviation (s)to estimate
the population standard deviation.
105
 Examples
RESEARCH METHODOLOGY
1. Given the following confidence intervals , express the lower
and upper limits in terms of sample mean, and SE.
• 54% : ¯x ± .74SE
• 75% : ¯x ± 1.15SE
• 95%:
• 98%:
1. For a population with known variance of 185 , a sample of 64
individuals leads to 217 as an estimate of the mean.
i. Find the SE of mean
ii. Establish an interval estimate that should include the
population mean 68.3% of the time.
3. Ena is a frugal under graduate at a University. She is
interested in purchasing a used stereos . She randomly
selects 125 newspaper ads and found the average price of a
used stereos in the sample was Rs3250. She knows the
standard deviation of used stereos is Rs.615.
i. Establish an interval estimate of stereo prices so that
Ena can be 68.3% certain that the population mean
price lies within this interval.
ii. Establish an interval estimate of stereos so that Ena
can be 95.5% certain that the population mean lies
within this interval.
Again we first write our data:
3. Steve Kipper has a reputed barbers shop . As each customer
enters Steve yells out the number of minutes that the
customer can expect to wait before getting his cut. The only
statistician in town is frustrated with what he feels are highly
inaccurate point estimates of Steve’s. He determines that the
actual waiting time for any customer is normally distributed
© Copy Right: Rai University
106
with mean equal to Steve’s estimate in minutes and standard
deviation equal to 5 minutes divided by the customers
position in the waiting line. Help Steve’s customers develop
95 percent probability intervals for the following situations:
We need to help Steve’s customers determine s
a. The customer is second in line and Steve’s estimate is 25
minutes.
b. The customer is third in line and Steve’s estimate is 15 minutes.
c. The customer is fifth in line and Steve’s estimate is 38 minutes.
d. The customer is first in line and Steve’s estimate is 20 minutes.
e. How are these intervals different from confidence intervals?
To solve this problem we need to reduce the problem in terms
of sampling concepts.
Sample mean = Steve’s estimate of waiting time
Standard error of the estimate = 5minutes/customers position
in the queue
a. To set up a 95% confidence interval for the first customer:
Sample mean = 25, Standard deviation= 5/2=2.5
Confidence interval= 25+/-1.96*2.5= 25+/-4.9mins
b. 15+/- 3.267 mins
c. 38+/-1.96mins
d. 20+/-9.8mins
e. These are prediction intervals for the next observations
rather than confidence intervals for the population mean
based on a sample that ahs already been take,
Exercises
1. Define confidence level for an interval estimate.
2. Suppose you wish to use a confidence level of 80%. Define
upper and lower limits in terms of the sample mean and SE.
3. In what way may an estimate be less meaningful because of
a. High confidence level ?
b. Narrow confidence interval?
4. Suppose a sample of 50 is taken from a population with
standard deviation
a. Establish an interval estimate for the population mean
that is 95.5 percent certain to include the true population
mean.
b. Suppose, instead, that the sample size was 5,000.
Establish an interval for the population mean that is
95.5 percent certain to include the true population mean.
c. Why might estimate (a) be preferred to estimate (b)? Why
might (b) preferred to (a) ?
5. Given the following confidence levels, express the lower and
upper limits of the confidence interval for these levels in
terms of ¯x and SE.
a. 60 percent.
b. 70 percent
c. 92 percent.
d. 96 percent.
11.556
6. Jon Jackobsen, an overzealous graduate student, has just

RESEARCH METHODOLOGY
completed a first draft of his 700-page dissertation. Jon has
typed his paper himself and is interested in knowing the
average number of typographical errors per page, but does
not want to read the whole paper. Knowing a little bit about
business statistics, Jon selected 40 pages at random to read
and found that the average number of typos per page was
4.3 and the sample standard deviation was 1.2 typos per
page.
a. Calculate the estimated standard error of the mean.
b. Construct for Jon a 90 percent confidence interval for
the true average number of typos per page in his paper
References
Aaker D A , Kumar V & Day G S - Marketing Research (John
Wiley &Sons Inc, 6th ed.)
Diamantopoulos A and Schlegelmilch A- Taking the fear out of
Data Analysis (Dryden Press, 1997)
Communication Service
Kothari C R – Quantitative Techniques (Vikas Publishing House
3rd ed.)
Levin R I & Rubin DS - Statistics for Management (Prentice Hall
of India, 2002)
Notes

© Copy Right: Rai University

11.556 107
 ADVERTISING & MARKETING RESERCH

RESEARCH TECHNIQUES

1. SURVEYS
Using concise, straight forward questionnaires you can
analyze a sample group that represents your target market. The
larger the sample, the more reliable are the results.

i) IN PERSON SURVEYS:
They are one on one interview typically conducted in high
traffic locations such as shopping malls; you present people with
samples of products, packaging or advertising and gather
immediate feedback. These surveys can generate response rates of
more than 90%

ii) TELEPHONE SURVEYS

They are less expensive than in person surveys but costlier
than mail surveys consumers are off late resistant to relentless tele-
marketing & hence getting people to participate in phone surveys
has become increasingly difficult. These surveys generally yield
response rate of 50-60%.

iii) MAIL SURVEYS

They are a relatively inexpensive way to reach a broad
audience. Though they are cheaper than in person phone surveys,
they generate response rate of just 3% to 15% how.

iv) ONLINE SURVEYS

These surveys generate unpredictable response rates &
unreliable data as you have no control over the pool of respondents.
However, it is a simple and inexpensive way to collect anecdotal
evidence & gather customer opinions & preferences.
2. FORUS GROUPS
In focus groups a moderator uses a scripted series of
questions or topics to read a discussion among the group of people.
The participant should have no previous focus group experience.
These sessions take place in natural location. These focus group
session last for 1 to 2 hours & takes at least 3 groups to get to a
balanced result.

3. PERSONAL INTERVIEWS
Like focus groups, personal interviews include unstructured
open ended questions they last for about an hour and are usually
recorded.
Focus groups & personal interviews provide more subjective
data than surveys do. Their results are not statistically reliable as
they usually do not represent a large segment of population.
However both focus groups & interviews yield valuable insights into
customer attitudes & are excellent methods to uncover issues
related to new products or service development.

4. OBSERVATION
It has been noticed that individual responses to surveys &
focus groups are sometimes at odds with people’s usual behavior
when you observe them. Consumer in action at stores, work or at
home you can observe how they buy or use a product. This gives a
more accurate picture of customer usage habits & shopping
patterns.

5. FIELD TRIALS
New products are placed in selected stores to test customer
response under real life selling conditions. This helps the
manufacturer to make product modifications, adjust prices or
improve packaging. Small business owners try to establish a rapport
with local store owners. In certain cases websites helps them test
their products.

RESEARCH PROCESS

a) FORMULATE A PROBLEM:-
You have a problem & then checkout & form a hypothesis, find
out the objective of the whole exercise & then create the factors
what could have been the cause of a problem. Create a certain
scenario to understand what went wrong e.g. setting up new factory
for new product.
Need to know if the market is ready for the product and
whether they are willing to buy the product or not.

b) DETERMINE RESEARCH DESIGN – 3 Kinds

i) Exploratory
Any kind of research where predominantly it’s for products /
services need to launch.

ii) Descriptive
There are already people in the market & you will be an
additional player in the similar product category.

iii) Causal Research

It is when you have an event that has taken place & has come
to a conclusion but one is still trying to find the cause e.g. Bihar
elections.

c) DESIGN DATA COLLECTION METHOD & FORMS

- Hypothesis in place
 - Research design
- Research Techniques
- Forms
- Questionnaire differs for different

d) DESIGN SAMPLE & COLLECT DATA.

Probability Sample – Sample that you choose to participate in
market research most scientific & logical method of sampling not
done randomly.

e) ANALYSIS & INTERPRET DATA

1. Prepare the raw data
2. Enter the data into the computer
3. Tabulate the data
4. Determine whether significant differences exist in both
categories
5. Explain why differences exist
6. Make recommendations

f) PREPARE THE RESEARCH REPORT

 RESEARCH DESIGN

I. DESCRIPTIVE RESEARCH

USES TYPES
1) Estimate proportion of people in Longitudinal study
a population who behave in a a) True panel
certain way b) Omnibus Panel
2) Make specific predictions Cross Sectional Survey
a) Simple Sample Survey

TYPES
1) LONGITUDINAL STUDY
It relies on panel data. The panel is a fixed sample of subjects
that is measured repeatedly.

a) TRUE PANEL -
It checks how many people buy/react to a stimulus. It
repeatedly measures the same entities. For instance AC Nielson has
40,000 households as a basis of its ‘house scan’ service. The
samples are asked, each time a purchase is made, questions
regarding where they purchased and the price paid.
Each sample is measured each time on the same
characteristic, for instance, purchases.

b) OMNIBUS PANEL:
 The same sample is still selected and maintained but
information collected is various, for instance, once a product may be
tested and the next time the ad copy. An omnibus study suggests,
therefore, the inclusion of many variables or many subcategories of
variables. For instance, parker pens maintain a panel of 1100
individuals to evaluate writing instruments.

A sub sample from the total sample is chosen, for instance, those
who use fountain pens are regarded as a sub sample and only they
are called upon to evaluate a new fountain pen. Similarly,
Nickelodian maintains children of different age groups to evaluate
programmes and concepts.

2) CROSS SECTIONAL ANALYSIS

This studies how different categories react to stimulus a no. of
times. It involves simultaneous occurrence of the variables of
interest.

a) SIMPLE SAMPLE SURVEYS.

Here, for instance 1000 consumers of a product may be
chosen then different brands manufacturing the same product
conduct a sample survey.

BRAND PURCHASED POPULATION OF POPULATION OF

USERS DURING THE USERS DURING 2ND
1ST TIME PERIOD TIME PERIOD
A 200 250

B 300 270

C 350 330

D 150 150
1000 1000
Another example would be a per-capita consumption of soft drinks
in a month.

AGE PER-CAPITA CONSUMPTION

20- 29 48

30- 39 42
II. EXPLORATORY RESEARCH

USES TYPES
1) a. Formulate Problem more 1) Literary Search
Precisely
b. Develop Hypothesis

2) a. Establish Priority for 2) Experience Survey

Research
b. Eliminate impractical ideas
c. Clarify Concept

3) Gather information about 3) Focus Group

practical problems regarding the
carrying out of research on
particular conceptual statement

4) Increase the Analysts 4) Analysis of selected cases

familiarity

EXPLORATORY RESEARCH:
It is good for problems, where little is known.
TYPES
1) LITERARY SEARCH:

a) Keep database of competitors as ‘competitor’s profile’ with the

help of trade literature.

b) Conceptual Literature:
It is the works of psychological, sociological, personnel and
marketing journals to understand employee satisfaction /
dissatisfaction.

2) EXPERIENCE SURVEY
a) It focuses on architects and designers in a situation where a
builder tries to comprehend competitors.

b) It could also include sales managers, product managers or sales

representatives.

3) FOCUS GROUPS
a) It is used to generate a hypothesis that can be further tested

b) It helps generate information in structuring consumer

questionnaires

c) It helps provide over all information on a product category.

d) It secures impressions on new product categories, for e.g. Harley

Davidson conducted a research in the 70s before re-introducing
their products in the market. They conducted a survey on 16000
people. The focus Groups consisted of current owners, would be
owners and owners of other brands. The common themes as
responses that emerged were enjoyment, great outdoor, and
freedom. They then followed it up with mailers asking psychological,
sociological and demographic specific questions. 30% of the
respondents across the board highlighted the following:
independence, freedom and power.
A typical focus group project has 4 groups of maximum 12
participants. Certain requirements for a focus group are
1) Each group must be homogeneous
2) Each participant has had no past focus group experience.
3) No friends and relatives of the participants and / or of the
company that wishes to get the research done can participate.
4) It lasts for 1½ to 2 hours.
5) Ideas from 1 group are thrown open to the next group as an
introductory hypothesis. A hypothesis is a statement that specifies
how 2 or more measurable variables are related.
6) When the latter group stops throwing up new ideas, the focus
group discussion ends.
7) A focus group moderator must lead the discussion.
 FOCUS GROUP MODERATOR’S QUALITIES

1) Superior Listening Ability

An effective moderator knows how to paraphrase to restate
the comments of a participant when necessary to ensure that the
content of the comments is clear.

2) Excellent short Term Auditory memory

The moderator must remember comments of participants
made early in a group, they co-ordinate them with comments made
later by the same or other participants.

3) Well organized
The concepts must be seen in logical sequence from general
to specific and keep similar topics organized together. The
moderator should keep track and all details associated with
managing the focus group process.

4) A Quick Learner
The moderator must learn enough about a subject quickly in
order to develop an effective guide and conduct successful group
sessions. An effective moderator must identify the key points in any
topic and know to listen and probe for nuances that make the
difference between an extremely informative & average group
discussion.

5) High Energy level

Group discussions can get boring if it does, it lowers the
quality of the information that participants generate. The best
moderators inject energy and enthusiasm into the group.
6) Personable
Development of an instinct and instant rapport is vital for a
moderator as it enables the participants to become actively
involved.

7) Well above Average Intelligence.

This is a vital characteristic & fundamental requirement of an
effective moderator. As no one can plan for every contingency that
might occur in a focus group session. A moderator must think on his
feet to process information generated by the group. He must then
determine what line of questioning will most effectively generate
further information needed to achieve the research objective

4) ANALYSIS OF SELECTED CASES

It is an intensive study of selected cases, where various
attributes may be analyzed. For instance, the attitude of the
investigator may be under scrutiny.
The investigator’s integrative powers i.e. the capacity to put
together different bits of information is analysed. An in-depth,
intensive study of the background is imperative and important.
III. CAUSAL RESEARCH DESIGN

USES TYPES
1) It provides evidence regarding 1) Lab. experiment
the causal relationship between 2) Field experiments
variables by means of
concomitant variation
2) Time order in which variations
occurs
3) Elimination and other possible
explanation

USES
1) CONCOMITANT VARIATION

A. QUALITATIVE VARIATION
For instance the market is studied to understand the
contribution of good salesman that provides a market share that
is satisfactory. Simultaneously it also studies how poor salesmen
contribute to a dissatisfactory market share. To study this 100
sales representatives both good and bad are chosen.
DEALER MARKET SHARE TOTAL
QUALITY SATISFACTORY DISSATISFACTOR
Y
GOOD 40 20 60

BAD 10 30 40

In the satisfied territory 67% are good, while 25% are bad.
In the dissatisfied territory 33% are good and 75% are bad.
 The perfect scenario would have been if all good dealers were
in the satisfactory territories and all the bad representatives in the
dissatisfied territory. But, in reality, that is not how the market
works.

B. QUANTITATIVE VARIATION
For instance single v/s married people studied to
understand the level of consumption of candy. The samples are
3009 in number. The single participants being 999 and the
married ones being 2010.

MARTIAL CONSUMPTION OF CANDY TOTAL

STATUS Eat Regularly Do Not Eat
Regularly
SINGLE 750 249 999
MARRIED 1265 745 2010
3009

Those that eat regularly as single samples constitute 75% and

those that do not eat regularly constitute 25% from the total of
999.
Amongst the married participants 63% eat regularly, and
37% do not eat regularly out of the total of 2010.
This study shows how a larger portion of single people
consume candy, while just 63% of married people consume
candy. Thus, showing a relative difference between the eating
habits of single and married people with regard to the
consumption of candy.

2) TIME-ORDER
This refers to a situation where the cause happens before the
effect.

3) ELIMINATION OF OTHER POSSIBLE EXPLANATION

 For instance a research analyst wanting to analyze what
influences purchase based on the displays at a store looks at factors
that need to be eliminated such as store size, price of product etc.

TYPES

EXPERIMENTAL TYPE:
An experiment is conducted to measure a scientific
investigation in which, the investigator manipulates and controls
one or more independent variables.

LAB AND FIELD EXPERIMENTS

An investigator creates a situation with the desired conditions
and then manipulates some variables, while controlling others.

LAB EXPERIMENTS
Simulated shopping are organized for samples who are told to
make 8 trips knowing there is a price change and see for
themselves, if they change the brand. This is an attempt to study
the causal effect of price change.

FIELD EXPERIMENTS
In this case the subjects used as samples are not aware of
price change. The variable that is the price is altered in its natural
environment and once again the samples are studied for cause and
effect.
 PSYCHOLOGICAL TEST

PROJECTIVE TECHNIQUE

Description of vague objects requires interpretation, which is based

on the individuals own background, attitudes and values. The
vaguer the object to be described the more one has to reveal of
oneself. In order to implement the projective technique 4 categories
from clinical psychology are used.

1. Free Association test

This test refers to the 1st word that comes to mind when
presented with a stimulus.

 Free word Association

This refers to the 1st word or thought required to make
connection with the stimulus.

 Successive word Association

It is a series of words that enables the interpretation of a
thought.

2. Completion techniques
This is an attempt to complete an incomplete stimulus.
 Sentence completion test
A series of words as part of a sentence representing an idea or
thought is presented; the 1st relevant thought associated with the
sentence that is incomplete enables the completion of the sentence

 Story Completion Test

Initial information about a particular issue in a relevant
context is provided as a skeletal idea. The story thus presented is
fleshed out by the sample.

3. CONSTRUCTION TECHNIQUES
This method enables the construction of dialogue, story
description like completion technique, but has less initial information
provided.

 Cartoon Technique
This is where one character’s dialogue is given in a bubble
while the other’s response &/or sub-conscious thought must be
provided by the respondent be it a bubble or a cloud.

 Third person technique

Respondents are asked what others do a in given situation &
the response of the respondents reveal what in reality they
themselves would do which they normally will not share in public.

 Picture Technique
This encourages the use of pictures to make respondents feel
& then tell what they think especially when the pictures are quite
vague so that the respondents use their imagination.

 Fantasy Scenario
 One makes up a fantasy about product or brand attributing
physical characteristics that are associated with
psychographics.[paint,sunfeast]]

 Personification
Human characteristics are found in several products or
brands, thus making the product or service more acceptable to the
public.[hum hai na]

4. EXPRESSIVE TECHNIQUE
 Role Playing
Respondents play roles of another person, for instance, sales
representatives that sell a product to other customers reveal the
role player’s attitude towards different jobs and professions.
 PHYSIOLOGICAL TESTS

GALENIC SKIN RESPONSE

It uses the device similar to the polygraph machine used in life
detection. Respondents are linked by electrodes to a monitor and
are exposed to a no. of stimuli. The monitor records the impact of
the advertisements on the nervous system by measuring the
amount of perspiration on the hands of the respondents. The
advertisements effectiveness is judged on the basis of the reaction
registered on the monitor.

EYE MOVEMENT CAMERA

It is a device that records continuously the activity of the eye
both horizontal and vertical as it reads printed material. By
analyzing the ‘ROUTE’ taken the researchers can determine which
part of the ad attracted the initial attention &/or which appeared
confusing.
PUPIL DILATION
A pupil meter is used to measure the contraction or dilation of
the pupil. The basis of this test is the pupils dilate when respondents
receive an interesting / pleasant stimulus. Conversely the pupil
contracts when individuals receive uninteresting or unpleasant
stimulus. By comparing the changes induced by a message against
the base line produced through the use of neutral stimuli a measure
of the effectiveness can be obtained. However, there is a
disagreement about what the pupilometer is measuring a pupilary
change may reflect an emotional response to a stimulus or may
result from a stronger stimuli in mental activity regardless of
whether it is pleasant or unpleasant.

BRAINWAVE PLANS ANALYSIS

The brain emits a no. of electrical signal that can be
monitored. Some of the signals reflect the level of interest the
respondent has in whatever stimulus he or she is confronted with.
The brain wave may indicate a respondent’s interest in a
commercial, package or product. The left & right hemispheres of the
brain produce brainwaves based on qualitatively different stimuli.

VOICE PITCH ANALYSIS

The pitch of the voice may be graphically measured enabling
the analysis of the respondent’s response to positive, negative &
neutral stimuli. It is a method that is not widely used.
 NEW PRODUCT RESEARCH

1) Develop overall strategy based on market trends.

2) Develop a flavor of new product ideas from a variety of
sources.
3) Develop preliminary procedures for screening new ideas.
4) Develop procedure for final screening
5) Develop product specifications with regard to optimum
product attributes
6) Test the product.
7) Test market the product.
8) Commercialize and supervise the product through its life cycle
and its termination or phase out
 PRODUCT TESTING

1) Paired comparison test:

Consumers are not told about the brand and are given a new
and an old product and are asked to choose. The samples know that
they are testing and are aware therefore, about a probable
difference (very much like psychological testing)

2) Staggered comparison test:

Respondents test 2 brands with a time lag with the identities
masked. One half of the respondents receive brand A, the other half
brand B. Further, the respondents are given the same products in
reverse and are asked to note any difference in the Brands.

3) Disguised comparison Test:

This duplicates the actual market where for different brands,
the same packaging is used for different brands and the
respondents are told that they will be asked about their preferences
later. In this case, the respondents are studied in order to recognize
if they have noticed any difference at all. Further, they are not
aware of the test and believe the product to be a free sample.

PAIRED STAGGERED DISGUISED

Slightly Aware 62 60 2
of difference

Quite Aware of 17 18 5
difference

Not Aware of 21 22 93
differences
100 100 100

This study of any given product of a brand examines how

disguised packaging shows that there is no or minimum recognition
of difference. While respondents participating in paired comparison
with those participating using the same product in a disguised
comparison test.
What is interesting to note that as samples are aware of being
participants in a test, even slight changes are noticed by them
especially ‘paired’ and ‘staggered’ participants
However, those that are not aware of being part of a test find
it almost impossible to note subtle changes.
 SAMPLING

PROBABILITY SAMPLING
This refers to the sample that has the probability of choosing
all elements in a given scenario.

1) Simple Random Sampling

It guarantees in the long run that every probable sample
of a given size will be selected with known and equal probability. For
e.g. a deck of playing cards well shuffled a no. of times ensures that
all probable combinations occur.

2) Stratified Sampling
The universe is divided into groups including all items:
STORE SIZE NO. OF STORES PERCENTAGE OF
(Stratum) STORES
LARGE 20,000 20

MEDIUM 30,000 30

SMALL 50,000 50
TOTAL 1,00,000 100%

3) Cluster Sampling
Here, universal elements are chosen in groups rather
than individuals. The groups are formed as homogeneous units.

i) Area Sampling
This is formed on a geographic basis where
demographic considerations are important. There is no list of
elements available necessary for study. So one relies on elements
that are available, such as pin code, suburbs etc. For instance a
sample list is created while listing all outlets that sell certain
commodity in a specific area, then another area sample is created
narrowing down the area.

ii) Systematic Sampling

This method assumes a list exists. For instance, a
particular kind of cluster is taken into consideration where 100
dentists offering dental insurance are studied. The 1st cluster would
be from the 2nd; every 5th sample and the nest cluster from the 3rd,
every 5th sample and so on and so forth. These clusters are
therefore formed with little subjective probability.

Probability Sampling is objective. Each sample has an equal

chance to be a representative. Everyone has an equal opportunity.
There is high probability of participants being chosen.
 NON-PROBABILITY SAMPLING

This method of sampling suggests the probability of choosing all the

elements being unknown. (There is greater element of error.)
i) Convenience Sampling
This refers to choosing samples that are easy and cheap, for
instance, TV audiences are supposed to represent the nation
(opinion polls, who knows how many people polled)

ii) Judgment Sampling

This is when experts in a subject pass value judgment on selections
made. For instance, sales managers and sales representatives select
a sample of grocery stores in an area that they consider
representative.

iii) Quota Sampling

This is based on a strategy where demographic conditions such as
age and sex are considered. It is different from stratified random
sampling. While stratified is objective, quota samples are chosen by
field workers who choose according to subjective consideration such
as convenience. As each quota representative is left to be chosen by
field workers, it is non- probability sampling.

iv) Purportive Sampling

This refers to the universe of samples chosen out of convenience
that are then analyzed as a representative study of a market. For
instance, the choice of brands of a particular product or service
chosen for studies is a choice made by the researcher purely based
on subjective consideration.

CONCEPT TESTING

It is the method to determine the best of the no. of possible

appeals to use in advertising. A creative concept is defined as a
simple explanation or description of the advertising idea behind the
product. For e.g. tourism association develops several appeals that
might motivate prime prospects to drive 2 hours to the mountains
from a large metro area in another state. The appeals put together
are as follows:-

1) Only 2 hours drive to relax

2) Mountain in your own backyard
3) A family playground in the mountain
4) Escape to white water rafting, fishing and other outdoor
sports.
5) Weekend vacation package.

Using cards with theme statements &/or rough layout, the

advertiser tries to get a ranked order of consumer appeals of the
various concepts. A consumer reacts only to the themes presented
to them. A researcher may find that the consumer has chosen the
best of several bad concepts.
 CONCEPT TESTING

I) PRINT

a) CARD TEST
Change elements in a card and ask respondents to select the
element layout they prefer subtle changes are made.

b) POSTER TEST
Size, layout, color etc are changed and the respondents
choose what they prefer. More gross changes are made.

c) LAYOUT TEST
The complete layout or parts of the layout are changed and
respondent’s reactions are recorded. Subtle and gross changes are
made.

II) BROADCAST

a) ANIMATICS
 This is art work in the form of either cartoons or realistic
drawings showing limited movement.

b) PHOTOMATICS
These are photographs shot in sequence still images are
worked into a sequence. Like a storyboard, it shows staccato frames
to show how the story goes. Various elements can be changed in
this method and as you look at the image you can decide what
changes need to be made. This makes manipulation easier and
involves lesser time and technology.

c) LIVEMATICS
This involves filming or taping live talent and is very close to
the finished commercial. This method is useful because it can
showcase the entire range of emotions that the respondents display
when shown the product. This can be used to convey the mood of
the final commercial when the real model will be used.

d) RIPOMATICS
The conversion is made from footage of other commercials
taken from ad agency promotional reels. They are usually used for
experimentation on visual techniques.

(e.g. Prints taken from foreign miniature samples and customized).

 COPY TESTING – MEASURES & METHODS

To test and copy, the researches must know both what the
copywriter is trying to accomplish and what assumptions are being
made as to how the various copy components will contribute to this
end.
Typical measures used to judge advertising effectiveness
Measures dealing with recognition, recall, comprehension,
believability, persuasion and attitude change. All involved
assumptions on how advertising works.

(Def): PRE-TEST
It is used to use to determine what weaknesses exist in the
copy and concept before too much money time, marketing,
schedules and plans have been put in place on the advertising.

(Def): POST-TEST
It attempts to measure the combined effect of the advertising,
the media used, the scheduling, the products distribution and
competitive advertising.
CREATIVE STRATEGY RESEARCH
A products creative strategy is concerned mainly with
determining what message can best elicit the desired response from
members of the target audience.

CONSUMER JURY (pre-test)

Personal interviews are used or a group is assembled and the
members asked to vote on the alternatives. It provides a rating
given to an advertisement by a group of consumers who represent
potential buyers of the product.

PORTFOLIO TEST
These tests are named after the manner in which the
advertisements to be tested are packaged. The ads are placed in a
port folio. The respondents are asked to recall with the folio closed,
the ads that they can remember. Such recall may be on a
completely unaided basis, or the interviewer may aid recall by
asking about specific ads or ads for specific products. For each
recalled ad the respondent is asked to playback as much of the ad
as possible. The information is recorded verbatim.

PSYHOLOGICAL TESTS
They differ in the methods used Advertising effectiveness
depends on the results achieved in mind of the individual reached
by the advertisement. Ideally, one can list reactions such as: - self-
pity, security, fear, nostalgia, anxiety etc.
Psychological tests employ clinical research techniques such
as words association, sentence completion, in depth interviews, and
story testing. Only skilled interviews can be used.

INQUIRIES [POST TEST]

It measures the advertisements worth.

1) Place the ads in different places in a copy where all other factors
remain equal then check how man inquiries are made.

2) Place the same ad in different magazines and do a similar check.

3) Split – run

SALES TESTS [POST TEST]

These tests are done by either using POP’s or direct mail.

POP
Consumers are exposed to alternative pieces of copy or
product sales are measured into stores keeping the same copy.

DIRECT MAIL
This is done with the use of coupons. One group is shown a TV
ad and the other is not. Then both groups are given coupons, to buy
the product that has been advertised. The researcher then
measures the influence of TV ads on both groups.
 PRODUCT RESEARCH

1. NEW PRODUCT VARIATION

Manufactures and service providers need to constantly look
for new concepts a part of their market strategy.
This helps not only to stay ahead of competition but also for
maintaining and generating new markets.

2. SCREENING
A new product variation is developed through Research &
Developement. Here, the product already exists and we look for
different attributes to add on new ideas to make the product more
viable to the market in the form of product extensions. It could
involve changing a component of the product and offering it as a
new product.

3. CONCEPT TETING
a. Focus Groups
b. Mail Intercepts
(Stop people at a mall and use them as samples)

4. BUSINESS AND MARKET ANALYSIS

a. Company audit
Introspection within the company to see whether it is meeting
its sale target etc.

b. Market Testing
Testing competitive ideas, market awareness, market
recognition and how the competition is doing.
5. ACTUAL PRODUCT DEVELOPMENT
This test is to see whether the end product does what the
screen test says it will do check whether attributes in the product
match the claims that have been made about it.

6. MARKET TEST
Test market the product using one set of demographics and
geographic area.

7. COMMERCIALIZATION OF PRODUCT
The company and the ad agency must develop and evaluate
all avenues of advertising and promotion.

8. INNOVATION, DIFFUSION, ADOPTION

Innovation: - Introduce product variation
Diffusion: - Market penetration (e.g. surf excel talking about water
saving)
Adoption: - Adjust to market changes (e.g. Jumbo wada pav, Suzuki
swift)
ADVANTAGES AND DISADVANTANGES OF PERSONAL
INTERVIEWS

There are 4 guidelines that help researchers obtain meaningful and

worthwhile information

a. make an appointment for the interview

b. Avoid the presence of a 3rd party
c. keep the interview on track
d. Let the respondent do the talking

ADVANTAGES OF PERSONAL INTERVIEWS

1. Intensive and extensive information
2. Flexibility (Schedule, location, pose question in random order)
3. Corrections are possible
4. Interviewee has time to think
5. Private and personal information
6. No Ambiguity
7. Psychoanalysis is possible

DISADVANTANGES
1. Takes more time, money and effort.
2. Training required to conduct the interview
3. Bias of the researcher
4. Practical difficulties of the interviewee
5. Cooperation of the interviewee.
 VALIDITY, CREDIBILITY, SENSITIVITY AND
RELIABILITY

Copy testing involves accessing the validity and reliability of various

types of tests

Measures that are taken to assess VALIDITY are:-

a) Advertisements to be targeted with respect to the

communications objective and a copy test that content must have a
measurable and useful variable that represents the objective.
Therefore, the validity of a particular copy test will depend on the
advertising response that is desired. Here, the company can see
whether the right connection is made or some other connection is
made in the minds of a consumer.

b) Given that the target population can be sensibly defined the

subjects in the test should be representative of the target
population.

c) It is important to know the reaction of the respondents to the test

environment and the measuring instruments. You have to check
whether the respondents are comfortable with the measuring scales
used as they would give contradictory responses if uncomfortable.

d) The frequency of response also validates the copy. A respondent

is asked to see an advertisement multiple times to see if there is
consistency in reaction no matter what mood they are in.
CREDIBILITY / PREDICTABILITY

Copy test of an ad may be considered monotonous because of

its predictability in the sense that a product by its very nature lends
itself to a copy that in unavoidable. Hence, the predictability factor
is very high for the ad to be credible efforts must be made to strike
a balance between being faithful to the product and being
individualistic while creating ad copy. Respondents invariably find
copy lacking individuality hence, the respondent and therefore the
customer reaction----therefore advertising efforts should be made to
create a non-predictable copy. FMCG’s such as soaps are so similar
that the ads seem similar as well as therefore an ad is remembered
but not the brand as very few actually stand out. Hence, the
concept, should try to be non-predictable.

RELIABILITY
Reliability of a product or service is also tested by the success of the
ad; as the ad must contain a USP of the brand of the product or
service. The reliability and therefore the success of copy is tested
when respondents accept/reject claims made by advertisements on
behalf of the manufacturer or service provider. Reliability explores is
the ad in tandem with what the customer expects and what the
company claims (e.g. versa ad)
SENSITIVITY
It involves a test that should help differentiate between
commercials between brand groups as products have similar
sounding USP’S. Brands must therefore make special efforts to
create distinction. Similarly, these brands should try to create a
separate identity that is identifiable by the market; an identity that
is represented by intangible values. Thus, brands individuality must
seem meaningful.

HALO EFFECT
When a person for instance is considered good in a category
one is likely to make a similar evaluation of the person in other
categories. For e.g. If a person dress like a rock star it is assumed
that he can sing, dance and play the guitar.
Another instance of the halo effect is when an individual
particular characteristic is transferred to every other aspect of the
person’s life. Researchers rely heavily on such associations as it
enables advertisers to highlight features of a product or service with
the help of the singular characteristic of the individual. This is used
for instance when a performer or an entertainer is used to endorse a
product or service in the hope that the halo effect of the entertainer
falls on the product.

STABILITY
It refers to the consistency of a result or of a measure at
different points in time. For instance a list designed to measure
proof reading ability is administered during the 1st week of an
editing class and again during the 2nd week. The list possess stability
if the 2 results are consistent caution should be exercised whenever
stability is used to measure reliability as people and things change
overtime therefore, in the proofreading example it is possible for a
person to score higher the second time because some people
actually improve from week 1 to week 2. In this case, therefore the
measure is not really limitable as actual change has occurred.

MEASURING ADVERTISING EFFECTIVENESS

1. PRE-TESTING
a. Focus Group
b. Sales Test
c. Physiological Test

2. POST TESTING
1) Enquiry Test
2) Split Run
3) Recall Test

Four major reasons for measuring advertising effectiveness are:-

1. To avoid costly mistakes
2. Evaluate alternative strategies
3. Increase efficiency of advertising
4. The results serve as input into the situation need to be
analyzed for the next launch:
The methods are:
Field and Laboratory Testing
 BRANDING REASEARCH

Branding research is conducted for products, services or

people. It 1st determines attributes and benefits and a product in a
specific target market. The information is obtained through
qualitative research. The perception of each of their attributes is
then tested quantitatively. This kind of research helps the SWOT
analysis of a brand.

The benefits of branding are:-

1) Customers get additional value from branding attributes for
which they are willing to pay a police.
2) The company’s gains through cost saving that is obtained
from loyal customers. They also gain from the revenue
generated by the added value. Further overall branding helps
the company make optimum use of the companies yet
uncovered potential, threats and opportunities that would rub
off on the brand image.
3) Uncover the difference between desire and actual perceived
image.
4) Maximize acquisition of new customer and market
penetration.
5) Minimize loss of current customers.
6) Safeguard and increase the income revenue
7) Improve marketing and sales planning.
 PACKAGING RESEARCH

Package graphics and copy are critical market variables in any

product category particularly for non-advertised or under advertised
brand. In self service shopping environment there is a greater
likelihood of the customers reaching to design change in the
existing package.
These are 4 packaging research services that may be used:-

1) PACKAGE SCREEN
It involves the screening of 10-20 alternatives package
designs and are objectively analyzed and 1 is finally chosen.

2) PACKAGE CHECK
It is an internet bared system where the representative
sample is placed in the website and the respondent sees only one
design and is asked to respond to a series of questions. This study is
based on 75 completed interviews.

3) PACKAGE TESTS
This is a comprehensive internet based testing system where
the representative sample from the internet panel is chosen and
qualified respondents are invited to evaluate the package design.
4) CUSTOME/ADHOC DESIGN PACKAGE RESEARCH
This involves communication that is interactive the
respondents are asked to read and interpret the package design,
graphics and copy; they are then analyzed in an interview.

PRICING RESEARCH

These are 2 main approaches to pricing research.

1) GABOR-GRANGER TECHNIQUE AND CONJOINT ANALYSIS

Gabor Granger research is named after the economists who
invented it in the 1960’s. The customers are 1st asked if they would
buy a product at a particular price, the price is then changed and
once again the respondents are asked the same question. By taking
sample responses of customers and analyzing them researchers can
see what is the level of demand at each price level.

2) CONJOINT ANALYSIS
It is a technique that allows to workout the hidden rules
that people use to differentiate between products and services
by understanding precisely how people decide and what you can
workout, what are the features and services in comparison with
the cost that the customers are looking far.
RATING SCALES (add to measuring ad effectiveness)

LIKERT SCALE
A number of statements are developed with respect to a topic
and respondents can strongly agree, agree, be neutral, disagree or
strongly agree with the statements given. Each response option is
weighted and each subject’s response added to produce a single
score of the topic. To maintain measurement consistency the scores
are reversed for a negatively worded statement.
The Basic procedure for developing a LIKERT scale are:-
a) Combine a large number of statements that relate to a
specific dimension whose some are positively worded and
negatively worded.
b) Administer the scale to sample of randomly selected
respondents.
c) Code the responses – continuously so that high scores indicate
stronger agreement with the attitude in question.
d) Analyze the response and select for the final scale those
respondents that most clearly differentiate the highest from
the lowest scorer.

STATEMENT 1
Only US citizens should be allowed to own broadcasting
stations.
RESPONSE SCORES ASSIGNED
Strongly Agree 5
Agree 4
Neutral 3
Disagree 2
Strongly Disagree 1

STATEMENT 2
Prohibiting foreign ownership of broadcast stations is bad for
the business.
RESPONSE RESERVED SCORES ASSIGNED
Strongly Agree 1
Agree 2
Neutral 3
Disagree 4
Strongly Disagree 5

SEMANTIC DIFFERENTIAL SCALE

This technique is used to measure the meaning and item as
far as an individual. Research indicates that 3 general factors are
measured y semantic differential such as
Activity
Potency
Evaluation
To use this technique a name or a concept is placed at the top
of a series of 7 point scales anchored by bi-polar attitudes. For e.g.
Biased unbiased
Trustworthy Untrustworthy
Valuable Worthless
Un-fair Fair
 This technique has helped to measure attitude towards time
magazine. The bi-polar adjectives typically anchor evaluates scales
such as:
Good, bad, pleasant/ unpleasant.

DEFINITIONS

CLUTTER TEST[BROADCAST PRETEST 1]

It is predominantly used for broadcast testing. It is used in two
instances:
1) Researcher Test a product for recall and recognition of
the same product of different brands. It helps the
researcher to test, recall and recognition of the number
of products that are advertised.

THEATRE TEST[BROADCAST PRETEST2]

During a regular show in a theatre advertisements are shown
in regular slots and are tested for recall. Audiences in the theatre
who are unaware of the test ads are asked to recall the
advertisement.

LIVE TELECAST TEST[BROADCAST PRETEST3]

These tests are mostly conducted on cable TV. There are two
instances where these tests are conducted:
1) Test ads are shown and sample audiences using cable TV are
asked for their responses.
2) In order to check the response of the audience of a soap opera
the pilot episode is shown through a select cable audience.

TRAILER TEST[BROADCAST PRETEST4]

Large screens in shopping malls show advertisements. In the
1st instance those coming in the mall are given coupons and
redemption rates are checked. Secondly the number of enquiries
made by those without coupons is also measured.

NAME TESTING[COPY RESEARCH]

A brand name needs to be tested by manufacturers or service
providers. The samples are shown a list of names and at the same
time are informed about a product or service that needs naming.
This enables the sample to try and form a co-relation between the
products or service and choice of manes that get short listed may
be tested for recall or recognition. Rating scales may be used to
measure sample preference.

SLOGAN TESTING[COPY RESEARCH]

A slogan, tagline etc. of a product or service is tested by
manufacturer/researcher. The samples are informed about the
product or service. Thus, enabling them to form connection between
the proposed slogans/taglines and product or service. The
researcher then places the opinion on a rating scale enabling them
to choose the most preferred slogan.

TELEVISION STORYBOARD TESTING [BROADCAST TEST5]

Video tapes are advertising storyboards to specific target
audience. The story board that generates most preferred response is
then converted into a TVC.

RECALL{ AIDED AND UNAIDED} AND RECOGNITION

TESTS[POST TESTS]