RESEARCH

METHODOLOGY
(Business Research Methods)

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 Participant Observation

 When an observer acquires firsthand data, information or

knowledge by being present in the social setting under
investigation

 Direct participation may bring the observer several

advantages in terms of a longer period of interaction and
the ability to interact personally and verbally with the
individuals whose behaviour is being observed

 Observers using the participant mode of observation can

make mental notes and field notes, which are analyzed
systematically and in regular intervals

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 Observation of Physical Objects

 Observation can also be used to study physical

phenomona, for example, by analyzing physical trace
evidence, which is a visible indication of some event or
occurence which happened in the past

– Examples 1: by observing a high level of wear and tear on books

in a certain part of the library, the researcher may presume that
many library users are looking up those books in question

– Example 2: by observing the contents of garbage cans in a

certain district inhabited by affluent citizens, or by a certain
ethnic group, the researcher can determine what types of food
and detergents are used by them

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 Content Analysis

 Content Analysis is a form of observation in

which the researcher analyzes the contents of
written or verbal communication mediums, e.g.
advertisements, newspaper articles, press
reports, letters and statements

 A major use of content analysis is to determine

how often a theme or subject or word of interest
appears

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 Mechanical Observation

 Mechanical observation refers to an observation

technique that uses mechanical instruments such as
video cameras, traffic counters and several other types
of gadgets in order to record behaviour

 Mechanical observation is typically used in situations

where behaviour is repetitive, automatic and
programmatic as opposed to situations in which
behaviour is more complex and unpredictable, and for
which human observers are required in order to
accurately assess the behaviour of their research
subjects

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 Examples of Mechanical Observation

 Television monitoring to obtain ratings for TV programs in different

countries

 Website traffic monitoring to determine the popularity of websites or

specific webpages

 Measuring physical / physiological reactions to certain stimuli with

the help of gadgets such as eye-tracking monitors, pupilometers,
psychogalvanometers,and voice pitch analyzers

 Using optical scanners and bar codes which are imprinted on

products in supermarkets, and which also have applications in
factories, warehouses and logistics

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 Ethical Issues in Observation

 Observation can give rise to issues of ethical concern,

such as a possible violation of the research subjects‘
rights to privacy and deception, which arises especially
in ‚contrived observations‘

 The researcher must carefully weigh the informational

requirements of his or her research against ethical
considerations

 Asking permission from research subjects may result in

the subjects‘ not acting in a natural manner and thus
adversely impact on the observation

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 Experimental Research (1)
 An experiment is a research method in which the conditions are
controlled so that one or more variables can be manipulated in order
to test a hypothesis

 Typically, the purpose of undertaking experiments is to determine

causal relationships between variables (chosen dependent and
independant variables), while eliminating or controlling all other
variables that may have an impact on these variables under
investigation

 The simplest form of experimental research involves only two

variables: the independant variable, whose value is altered, and the
dependant variable, whose value reflects the alteration in the
independant variable‘s value
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 Experimental Research (2)
 An ‚experimental group‘ is the group of subjects who are exposed to
the experimental environment

 A control group consists of individuals who are exposed to the

‚control condition‘ in a experiment, meaning, that they are not
subject to the experiment in question, but are used as a reference to
assess the impact on the experimental group

 Some experiments can be quite complex, encompassing several

independant variables. Special techniques have been developed to
deal with such experiments

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Issues in Experimental Design
Manipulation of the Independant
Variable

Selection and Measurement

Four
of the Dependant Variable
Basic Elements
of an
Experiment
in the Business Selection and Assignment
Field of Test Units

Control over Extraneous Variables

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 Issues in Experimental Design:
Manipulation of the Independant Variable

 The independant variable‘s value can be altered without

bring about any change in other variables – except the
dependant variable

 In business research, the independant variable can be

qualitative or non-quantitative (for e.g., the training
programs, financial reporting formats), or quantitative (for
e.g., the amount of Rupees spent on training the
employees in Organization X)

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 Issues in Experimental Design:
Selection and Measurement of the Dependant Variable

 The dependant variable‘s value depends or is determined by

changes in the value of the independant variable, which in turn, is
manipulated by the researcher as part of the experiment

 The choice of dependant variable by the researcher can sometimes

be a difficult, not-so-obvious undertaking, and requires considerable
skill and insight on the part of the researcher in order to avoid
making mistakes which reduce the value of the research (Example:
New Products Introduction and Sales Potential)

 The time factor should be taken into consideration when choosing a

dependant variable, as sometimes the outcomes are measurable
after a long time

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 Issues in Experimental Design:
Selection and Assignment of Test Units

 The Test Units are the subjects of the experimental research and
can include individuals, organizational units, sales territories

 Examples of Test Units: Consumers, Supermarkets, Functional

Departments in an organization

 In selecting test units, certain possible types of error must be taken

into consideration, e.g. random sampling error (test units in the
experimental and control groups should ideally have the same key
characteristics but this may not be the case with statistical random
assignment of the test units) and sample selection error (an
administrative procedural error caused by improper selection of the
sample, resulting in the introduction of a bias)

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 Issues in Experimental Design:
Control Over Extraneous Variables (1)

INDEPENDANT VARIABLE
Extraneous Extraneous
Variable A Variable C

Extraneous Extraneous
Variable B Variable D
DEPENDANT VARIABLE

Experiment Environment

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 Issues in Experimental Design:
Control Over Extraneous Variables (2)

 There are types of extraneously-conditioned errors which

have to be considered in the experimental environment
as hey effect the quality of the research:

 Constant Experimental Error – This occurs when

extraneous influences which are not controlled or
eliminated have a similar impact on the experiment‘s
dependant variable(s) every time the experiment is
performed

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 Issues in Experimental Design:
Control Over Extraneous Variables (3)
 Demand Characteristics – This occurs when the research subject(s)
are unintentionally exposed to the experimenter‘s hypothesis,
causing them to respond or act in a manner which they may not
have adopted were they not exposed to this information

 Experimenter Bias – This occurs when the experimenter‘s presence,

actions, or comments influences the research subjects‘ behaviour,
making them to try to appear more favourable to the experimenter

 Guineau Pig Effect – This occurs when the theme of the experiment
causes the research subjects‘ to consciously modify their attitudes
in order to please the experimenter

 Hawthorne Effect – This is the unintended effect on the results of a

research experiment which is caused by the subjects knowing that
they are the participants
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 Issues in Experimental Design:
Control Over Extraneous Variables (4)
 In order to reduce the chances of errors from reducing the value of
an experiment, several counter-measures can be adopted, for
example:

 Making it difficult for the research subjects to know what the

experiment is all about

 Using trained and experienced experimenters

 Designing experimental situations with a view to minimizing the

chances of error

 Preventing social interaction among research subjects so that

they don‘t influence each other (joint decisions as opposed to
the desired individual responses)

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 Issues in Experimental Design:
Control Over Extraneous Variables (5)
 Many times, extraneous variables cannot be controlled or eliminated
by the experimenter. However, researchers do have some options
at their disposal to help mitigate the impact of the extraneous
variables on their experiments:

 Consistency of Conditions – This means that the subjects in

experimental groups are exposed to situations that are exactly alike,
except for the differing conditions of the independant variable (e.g.
all experimental sessions are conducted in the same room at the
same time by the same experimenter)

 Counterbalancing – This strives to eliminate the so-called ‚order of

presentation bias‘ which arises when research subjects, who are
participating in multiple experimental phases, acquire experience in
the initial experimental phase which enables them to perform better
in subsequent phases (e.g. job assembly)

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 Issues in Experimental Design:
Control Over Extraneous Variables (6)
 Blinding – This is used in order to control the research subjects‘
knowledge of whether or not they have been exposed to an
experimental treatment, e.g. research subjects in a Coca-Cola taste
test may be told that they have or have not been given a new Cola
product in order to test their reactions

 Randomn Assignment – This is used to randomly assign the

research subjects to experimental groups as a means of curtailing
the impact of extraneous variables

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 Fundamental Issues in Experimentation (1):
Basic and Factorial Experimental Designs
 Basic Experimental Designs – A single independant
variable is used to determine its impact on a single
dependant variable. Basic experiments have the
advantage of simplicity and easy measurability, but they
also have the disadvantage of not being realistic

 Factorial Experiment Designs – These allow for the

investigation of the interaction of multiple (two or more)
independant variables. Factorial experiments are more
realistic but are also more complex and difficult to
undertake than basic experiments

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 Fundamental Issues in Experimentation (2):
Field and Laboratory Experiments
 Field Experiments – These are experiments which are conducted in
natural settings and which are usually longer term. Field
experiments have the advantage of realism, a disadvantage is the
experimenter‘s comparative lack of control over extraneous
variables and influences that have an impact on the experiment

 Laboratory Experiments – These are experiments which are

conducted in an artificial (laboratory) environment. Laboratory
experiments have the advantage that the experimenter (usually) has
full control over the setting in which the experiment is conducted, but
the element of realism is lacking

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 Fundamental Issues in Experimentation (3):
Internal Validity
 Internal Validity – This refers to whether the
experimental treatment was the sole cause of observed
changes in the dependant variable. If the observed
results were influenced by extraneous variables, then a
valid conclusion about the relationship between the
experimental treatment and the dependant variable
cannot be made

 There are 6 types of extraneous variables that may

jeopardize internal validity – history effect, maturation
effect, test effect, instrumentation effect, selection effect
and mortality effect

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 Fundamental Issues in Experimentation (4):
External Validity
 External Validity – This refers to the quality of the researcher or
experimenter to generalize beyond the data of an experiment to
other subjects or other groups in the population under study, i.e. the
external environment (e.g. are the results of a new product study in
district A be applicable to the whole country?)

 External validity can be jeopardized if internal validity of an

experiment is lacking

 Some issues have to be considered in the context of external

validity, such as, the choice of research subjects and trade-offs
between internal and external validity (e.g.: laboratory experiments
have more internal validity than field experiments, but they have
comparatively less external vaidity)

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 Ethical Issues in Experimentation
 As with other forms of undertaking research, experimenters must
also take ethical issues into consideration:

– Privacy
– Confidentiality
– Deception
– Accuracy of Reporting Results

 Experimenters have to weigh possible bias effects on the part of

their research subjects against ethical considerations. Debriefing
after the experiment can be a useful venture if information to the
research subjects is not disclosed before or during the actual
experiment, and they feel deceived as a result

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