2.

1 Research Design
 Research Design
Concept

It is the outline, plan, or strategy for

the procedures you will use to address
your research question.
Research design is a set of advance
decisions (plans) that make up the
master plan specifying the methods
and procedures for collecting and
analyzing the needed information.
 Research Design
Concept

It is the outline, plan, or strategy for

the procedures you will use to address
your research question.
Research design is a set of advance
decisions (plans) that make up the
master plan specifying the methods
and procedures for collecting and
analyzing the needed information.
 The research design is formulated by
answering the following questions..
- What is the study all about?
- Why is the study being conducted?
- Where will the study be carried out?
- What type of data is required to be collected?
- Where can be the required data collected?
- What period of time will the study data include?
- What will be the sample design?
- What techniques of data collection is required to use?
- What techniques of data calculations be used?
- In what style the report be prepared?
 Features of a good research design

- The research design should minimize the bias &

maximizes the reliability of data collected & the
outcome of study.
- The design should give least experimental error.
- The research design should yield maximal information
& should provide different aspects of understanding
the problem.
- The questionnaire formulated should fulfill the
objectives of the study.
There are 3 types of Research Design

Following are Three Types of Research Designs

Exploratory
Descriptive
Causal
- The choice of the most appropriate design
depends largely on the objectives of the
research and how much is known about the
problem and research objectives.
A Classification of Research Designs

Research Design

Exploratory Conclusive
Research Design Research Design

Prof. Prashant B. Kalaskar

Descriptive Causal
Research Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Design Sectional Design
 Exploratory Research

Exploratory Research
Designed to generate basic knowledge, clarify relevant
issues uncover variables associated with a problem,
uncover information needs, and/or define alternatives
for addressing research objectives.
A very flexible, open-ended process.
Descriptive Research (who, what, where, how)
Designed to provide further insight into the research
problem by describing the variables of interest.
Can be used for profiling, defining, segmentation,
estimating, predicting, and examining associative
relationships.
 Exploratory & Conclusive Research
Differences
Exploratory Conclusive
Objective:To provide insights and To test specific hypotheses
understanding. and examine relationships.

Character-Information needed is Information needed is clearly

istics: defined only loosely. defined. Research process is
Research Prof. Prashantis
process B. Kalaskar
formal and structured.
flexible and unstructured. Sample is large. Data
Sample is small and non- analysis is quantitative.
representative. Analysis of
primary data is qualitative.

Findings Conclusive.
/Results: Tentative.

Outcome: Findings used as input into

Generally followed by decision making.
further exploratory or
conclusive research.
 Exploratory Research Studies

Exploratory research studies are also termed as

formulative research studies
The major emphasis in such studies is on the
discovery of ideas and insights
.
 Basic Research Objectives and Research
Design

Research Objective Appropriate Design

To gain background information, Exploratory

to define terms, to clarify
problems and hypotheses,
Prof. Prashant B. Kalaskar
to establish research priorities

To describe and measure Busniess Descriptive

phenomena at a point in time

To determine causality, Causal

to make if-then statements
 Exploratory Research

Exploratory research is most commonly

unstructured, informal research that is undertaken to
gain background information about the general
nature of the research problem.
By unstructured, we mean there is no formal set of
objectives, sample plan, or questionnaire.
It is usually conducted when the researcher does not
know much about the problems.
Exploratory research is usually conducted at the
outset of research projects.
 Uses of Exploratory Research

Formulate a problem or define a problem more

precisely
Identify alternative courses of action
Develop hypotheses
Isolate key variables and relationships for further
examination
Gain insights for developing an approach to the
problem
Establish priorities for further research
 Methods for Exploratory Research

A variety of methods are available to conduct

exploratory research:
Secondary Data Analysis
Experience Surveys
Prof. Prashant B. Kalaskar
Case Analysis
Focus Groups
Observation Method
 Methods for Exploratory Research

Secondary data analysis. Secondary data refers to the

process of searching for and interpreting existing info
relevant to the research problem (e.g., census data,
articles in journals, newspapers, etc.).

Experience (Expert) surveys. Refers to gathering info

from those thought to be knowledgeable on the issues
relevant to the problem (i.e., ask experts, people who
had experience).
Survey of people who have had practical experience
Competent people are to be selected
Respondents should be allowed to raise issues &
questions
Methods for Exploratory Research
Case Analysis. Uses past situations that are
similar to the present research problem.

Focus groups. Involves small (8-12) groups of

people brought together and guided by a
moderator through unstructured,
spontaneous discussion.
 Descriptive Research

Descriptive research is undertaken to describe

answers to questions of who, what, where, when,
and how.
Descriptive research is desirable when we wish to
Prof. Prashant B. Kalaskar
project a studys findings to a larger population, if the
studys sample is representative.
Two basic classifications:
Cross-sectional studies
Longitudinal studies
 Types and Characteristics of
Descriptive Studies
Cross-Sectional Study
Easily the most common type of research project.
Typically involves conducting a survey of a sample of population
elements at one point in time.
Useful because it provides a quick snapshot of whats going on with
the variables of interest for our research problem.
Longitudinal Study
An investigation that involves taking repeated measures over time.
Useful for conducting trend analysis, tracking changes in behavior over
time (e.g., brand switching, levels of awareness, turnover) and
monitoring long-term effects of marketing activities (e.g., market
share, pricing effects)
Examples of Descriptive Research

Study Measuring Various Attributes of Salespeople, a

Training Program, or a Retailing Situation

Measuring how salespeople or customers behaved, as

well as what happened to sales volume

Learn about characteristics of people shopping at a

particular store

Satisfaction Study taken at multiple times throughout

the year
 Uses of Descriptive Research

To describe the characteristics of relevant groups,

such as consumers, salespeople, organizations, or
market areas.
To estimate the percentage of units in a specified
population exhibiting a certain behavior.
To determine the perceptions of product
characteristics.
To determine the degree to which Business variables
are associated.
To make specific predictions.
 Uses of Descriptive Research

(a) Formulating the objective of the study (what the

study is about and why is it being made?)
(b) Designing the methods of data collection (what
techniques of gathering data will be adopted?)
(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.
(f) Reporting the findings.
 Cross Sectional Studies

Cross-sectional studies measure units from a

sample of the population at only one point in
time.
Sample surveys are cross-sectional studies
whose samples are drawn in such a way as to
be representative of a specific population.
On-line survey research is being used to collect
data for cross-sectional surveys at a faster rate
of speed.
 Longitudinal Studies

Longitudinal studies repeatedly draw sample

units of a population over time.
One method is to draw different units from the
same sampling frame.
A second method is to use a panel where the
same people are asked to respond periodically.
On-line survey research firms recruit panel
members to respond to online queries.
 Causal/Experimental Research

Causality may be thought of as understanding a

phenomenon in terms of conditional statements of
the form If x, then y.
Causal relationships are typically determined by the
use of experiments, but other methods are also used.
 Causal Research (If-then)
Designed to provide information on potential
cause-and-effect relationships.
Most practical in marketing to talk about
associations or impact of one variable on another.
 Casual Research
Evidence to Support Causation
Concomitant variation
If X is supposed to cause Y, then the two variables must
move together.
If one variable changes, we should observe a resulting
change in the other.
Time order of occurrence
If X is supposed to cause Y, then changes in X must precede
changes in Y.
Elimination of other possible causes
If X causes Y, no other factor could have reasonably caused
the change in Y at that moment.
Must hold all other variables constant.
 Important concepts related to
Experiment Research Design
1) Dependent & Independent Variable:
2) Extraneous Variable:
3) Control:
4) Confounded Relationship:
5) Research Hypothesis:
6) Experimental & non experimental hypothesis testing research:
7) Experimental & Control group:
8) Treatments:
9) Experiment:
10) Experimental Units:
 Important concepts related to
Research Design
1) Independent Variable & Dependent :
Independent variables are those variables which the
researcher has control over and he can manipulate.
For example: level of ad expenditure; type of ad appeal;
price; product features, etc.

Dependent variables are those variables that we have little

or no direct control over, yet we have a strong interest in.
Examples: Return on investment, net profits, market share,
customer satisfaction.
 Pretest and Posttest

Pretest refers to the measurement of the

dependent variable taken prior to changing the
independent variable.
Posttest refers to measuring the dependent
variable after changing the independent variable.
 Important concepts related to
Research Design
2) Extraneous Variable:
- Those independent variables that are not related to the purpose
of the study, but may affect the dependent variable are called as
Extraneous variable.
- Ex- The researcher wants to test the hypothesis that, there is a
relationship between students knowledge gain in social studies
achievements & their self confidence.
- In this study self confidence is an dependent variable & students
knowledge gain are the independent variable. The achievement is
affected by the different levels of intelligence, but the intelligence
is not related to the purpose of study undertaken, it will be called
as extraneous variable
 Important concepts related to
Research Design
3) Control: The extraneous variables some times have
influence on the outcome of the study. Control is the
technical term used when the researcher design the
study to minimize the influence of such extraneous
effects of independent variables.
4) Confound Relationship: When the dependent variable is
not free from the influence of extraneous variable(s),
this relationship between independent & dependent
variable is said to be confounded by extraneous
variable(s)
 Important concepts related to
Research Design
5) Research Hypothesis: The pre assumption made by the
researcher, which he wanted to test for its validity.
When a prediction or a hypothesized relationship is to be
tested by scientific methods, it is termed as research
hypothesis.
6) Experimental & Non experimental hypothesis testing research:
When the research is conducted to test the hypothesis, is called
as Hypothesis testing research.
The research in which, the independent variables are manipulated
are called as Experimental Hypothesis research design & when
the independent variable are not manipulated, it is called as Non
Experimental Hypothesis testing research.
 Important concepts related to
Research Design
7) Experimental & Control group: In an experimental hypothesis
testing research, when a group is exposed to normal (usual)
conditions, it is termed as Control group.
When the group is exposed to some special condition, it is called
as experimental group
8) Treatments: The different conditions under which experimental
& control groups are put are usually referred to as
Treatments.
9) Experiment: The process of examining the truth of a statistical
hypothesis of a research problem
10) Experimental Units(s): The groups or individual who are the
part of the study, who will get different experimental
treatments.
 Important concepts related to
Research Design
7) Experimental & Control group: In an experimental hypothesis
testing research, when a group is exposed to normal (usual)
conditions, it is termed as Control group.
When the group is exposed to some special condition, it is called
as experimental group
8) Treatments: The different conditions under which experimental
& control groups are put are usually referred to as
Treatments.
9) Experiment: The process of examining the truth of a statistical
hypothesis of a research problem
10) Experimental Units(s): The groups or individual who are the
part of the study, who will get different experimental
treatments.
 A Comparison of Basic Research
Designs
Exploratory Descriptive Causal
Objective: Discovery of Describe market Determine
ideas and characteristics or cause and effect
insights of functions relationships
problem
Characteristi Marked by the Manipulation of
cs: Flexible,Prof. Prashant
prior formulation
B. Kalaskar one or more
versatile of specific independent
hypotheses variables
Often the front
end of total Preplanned and Control of other
research design structured design mediating
variables

Methods: Secondary data Experiments

Expert surveys Surveys
Pilot surveys Panels
Secondary data Observation and
Qualitative other data
Qualitative and Quantitative
Research
 Research Approaches

Deductive Theory

Hypotheses Patterns

Observations/
Data Inductive
Deductive thinking (Quantitative)

THEORY

HYPOTHESIS

OBSERVATION

CONFIRMATION
Inductive thinking (Qualitative)

OBSERVATION

PATTERNS

HYPOTHESIS

THEORY
 General approaches in
qualitative research
Individual interviews
Non-structured
Structured
Projective Techniques
Group interviews
Structured or unstructured
Focus groups
Observation
 In-depth Interview
A conversation on a given topic between a
respondent and an interviewer
Used to obtain detailed insights and personal thoughts
Flexible and unstructured, but usually with an interview
guide
Purpose: to probe informants motivations, feelings,
beliefs
Lasts about an hour
Interviewer creates relaxed, open environment
Wording of questions and order are determined by flow
of conversation
Interview transcripts are analyzed for themes and
connections between themes
 Projective techniques
Projective techniques are unstructured and
indirect forms of questioning which encourage
the respondents to project their underlying
motivations, beliefs, attitudes or feelings
regarding the issues of concern.
Techniques-
A)Word Association, B)Sentence Completion
Method, c)Picture Drawing and Interpretation,
d)Role Playing
 Focus Groups
Focus groups. Involves small (8-12usually paid up )
groups of people brought together and guided by a
moderator through unstructured, spontaneous
discussion.
Observation Research

Observation research -systematic

process of recording the behavioral
patterns of people, objects, and
occurrences without questioning or
communicating with them.
 Observational Situations
Situation Example
People watching people Observers stationed in supermarkets watch
consumers select frozen dinner.
The purpose is to see how much comparison
shopping people do at the point of purchase.

People watching Observer stationed at an intersection counts

phenomena traffic moving in various directions.

Machines watching Move or videotape cameras record behavior

people as in people-watching-people example.

Machines watching Traffic-counting machines monitor traffic

phenomena flow.
Major Differences between Qualitative and Quantitative Research
2.5 Hypothesis
 Meaning
In ordinary context:
Hypothesis means mere assumptions or
supposition which are to be proved or disproved.
In research context:
Hypothesis is a formal question that is intended to
resolve.
 Definition
Hypothesis may be defined as a proposition
OR a set of proposition set forth as an
explanation for the occurrence of some
specified group phenomenon either asserted
merely as a provisional conjecture(guess) to
guide some investigation or accepted as highly
probable in the light of established facts.
 Definition by Various Authors
A hypothesis is a conjectural statement of the relation
between two or more variables. (Kerlinger, 1956)

Hypotheses are single tentative guesses, good hunches

assumed for use in devising theory or planning experiments
intended to be given a direct experimental test when
possible. (Eric Rogers, 1966)

Hypothesis is a formal statement that presents the expected

relationship between an independent and dependent
variable.(Creswell, 1994)
 Hypothesis Defined
An educated guess

A tentative point of view

A proposition not yet tested

A preliminary explanation

A preliminary Postulate
 Characteristics
Related to problem Clear & Precise

State relation Testable

Specific & Simple Amenable with time

If a prisoner learns a work skill while in jail, then he is

less likely to commit a crime when he is released.
 Purpose
Guides/gives direction to the study/investigation
Defines Facts that are relevant and not relevant
Suggests which form of research design is likely to be
the most appropriate
Provides a framework for organizing the conclusions of
the findings
Limits the research to specific area
Offers explanations for the relationships between those
variables that can be empirically tested
 Components of Hypothesis
To be complete the hypothesis must include three components:

Variables Population Relation

Increased Salespersons efficiency will

improve Sales' result
Types of Hypothesis
 Universal hypothesis
It is one, which denotes that, the stated
relationship holds for all specified variables for
all times at all places.
For example,
if brave soldiers are frequently rewarded for their
better performance, they will perform better.
This relationship hold true for all time and all
place.
 Existential Hypothesis
It is one in which the stated relationship is said
to exist for atleast one particular case.
For example,
There are at least few corporate workers who are
scrounger(idle) and may not perform better
despite the fact that he is being awarded suitably
for better performance
 Null Hypothesis
Null hypothesis always predicts that there is no
relationship between the variables being studied.
The researcher wishes to disapprove this
hypothesis.
It is denoted by H0
For example:
There is no relationship between smoking and lung
cancer.
 Alternate Hypothesis
The alternate hypothesis always predicts that
there will be a relationship between the
variables being studied.
It is denoted by Ha

Non Directional Directional

Hypothesis Hypothesis
 Continued
If the hypothesis simply predicts that there will be a difference
between the two groups, then it is a non-directional hypothesis.
It is non-directional because it predicts that there will be a
difference but does not specify how the groups will differ.
smoking leads to lungs cancer
If, however, the hypothesis uses so-called comparison terms,
such as greater,less,better, or worse, then it is a
directional hypothesis. It is directional because it predicts that
there will be a difference between the two groups and it
specifies how the two groups will differ
smoking will increase the chances of lungs cancer in a person than a
person who do not smoke.
 Research Hypothesis
This type of hypothesis is derived from some
type of theory or some observation and
examination.
In other words, the hypothesis set upon the
basis of theory or prior observation or on
logical grounds.
 Nonstatistical Hypothesis Testing
A criminal trial is an example of hypothesis testing
without the statistics.
In a trial a jury must decide between two
hypotheses. The null hypothesis is
H0: The defendant is innocent
The alternative hypothesis or research hypothesis is
H1: The defendant is guilty
The jury does not know which hypothesis is true.
They must make a decision on the basis of evidence
presented.
 Nonstatistical Hypothesis Testing

In the language of statistics convicting the defendant is called

rejecting the null hypothesis in favor of the alternative hypothesis.
That is, the jury is saying that there is enough evidence to conclude
that the defendant is guilty (i.e., there is enough evidence to
support the alternative hypothesis).

If the jury acquits it is stating that there is not enough evidence to

support the alternative hypothesis. Notice that the jury is not saying
that the defendant is innocent, only that there is not enough
evidence to support the alternative hypothesis. That is why we
never say that we accept the null hypothesis,
Procedure for hypothesis testing
 Steps in Hypothesis Testing
Problem Definition

Clearly state the null and

alternate hypotheses.

Choose the relevant test

and the appropriate
probability distribution
Determine the
Determine the
Choose the critical value degrees of
significance level
freedom

Compute Compare test statistic Decide if one-or

relevant test and critical value two-tailed test
statistic
Does the test statistic fall No
in the critical region? Do not reject null
Yes
Reject null
 What is Hypothesis Testing?

Hypothesis testing refers to

1. Making an assumption, called hypothesis, about a
- the B-school
population parameter.
2. Collecting sample data.
3. Using the sample statistic to evaluate the hypothesis (how
likely is it that our hypothesized parameter is correct. To test
the validity of our assumption we determine the difference
between the hypothesized parameter value and the sample
value.)
 Null Hypothesis

The null hypothesis H0 represents a theory that has been

put forward either because it is believed to be true or
because it is used as a basis for an argument and has
not been proven. For example, in a clinical trial of a new
drug, the null hypothesis might be that the new drug is no
better, on average, than the current drug. We would write
H0: there is no difference between the two drugs on an
average.
Alternative Hypothesis

The alternative hypothesis, HA, is a statement of what a

statistical hypothesis test is set up to establish. For
example, in the clinical trial of a new drug, the
alternative hypothesis might be that the new drug has a
different effect, on average, compared to that of the
current drug. We would write
HA: the two drugs have different effects, on average.
or
HA: the new drug is better than the current drug, on
average.

The result of a hypothesis test:

Reject H0 in favour of HA OR Do not reject H0
 The idea of statistical inference
Generalisation to the population

Conclusions based
on the sample
Population

Hypotheses

Sample
 Significance level
The significance level of a statistical hypothesis
test is a fixed probability of wrongly rejecting the
null hypothesis H0, if it is in fact can not be
rejected.
It is the probability of a type I error and is set by
the investigator in relation to the consequences of
such an error. That is, we want to make the
significance level as small as possible in order to
protect the null hypothesis and to prevent, as far
as possible, the investigator from inadvertently
making false claims.
 Selecting and interpreting significance level

1. Deciding on a criterion for accepting or rejecting the null

hypothesis.
2. Significance level refers to the percentage of sample means
that is outside certain prescribed limits. E.g testing a
hypothesis at 5% level of significance means
that we reject the null hypothesis if it falls in the two regions
of area 0.025.
Do not reject the null hypothesis if it falls within the region of
area 0.95.
3. The higher the level of significance, the higher is the
probability of rejecting the null hypothesis when it is true.
(acceptance region narrows)
 Type I and Type II Errors
1. Type I error refers to the situation when we reject the null
hypothesis when it is true (H0 is wrongly rejected).
e.g H0: there is no difference between the two drugs on
average.
Type I error will occur if we conclude that the two drugs produce
different effects when actually there isnt a difference.
Prob(Type I error) = significance level =
2. Type II error refers to the situation when we accept the null
hypothesis when it is false.
H0: there is no difference between the two drugs on average.
Type II error will occur if we conclude that the two drugs
produce the same effect when actually there is a difference.
Prob(Type II error) =
 Type I and Type II Errors Example

Your null hypothesis is that the battery for a heart

pacemaker has an average life of 300 days, with the
alternative hypothesis that the average life is more than
300 days. You are the quality control manager for the
battery manufacturer.
(a)Would you rather make a Type I error or a Type II error?
(b)Based on your answer to part (a), should you use a high
or low significance level?
 Type I and Type II Errors Example

Given H0 : average life of pacemaker = 300 days, and

HA: Average life of pacemaker > 300 days
(a)It is better to make a Type II error (where H 0 is false i.e
average life is actually more than 300 days but we accept
H0 and assume that the average life is equal to 300 days)
(b)As we increase the significance level () we increase the
chances of making a type I error. Since here it is better to
make a type II error we shall choose a low .
 Types of Errors
A Type I error occurs when we reject a true null
hypothesis (i.e. Reject H0 when it is TRUE)

H0 T F

Reject I

Reject II

A Type II error occurs when we dont reject a false null

hypothesis (i.e. Do NOT reject H0 when it is FALSE)
 Interpreting the p-value
The smaller the p-value, the more statistical evidence
exists to support the alternative hypothesis.
If the p-value is less than 1%, there is overwhelming
evidence that supports the alternative hypothesis.
If the p-value is between 1% and 5%, there is a strong
evidence that supports the alternative hypothesis.
If the p-value is between 5% and 10% there is a weak
evidence that supports the alternative hypothesis.
If the p-value exceeds 10%, there is no evidence that
supports the alternative hypothesis.
 Interpreting
Overwhelming Evidence
the p-value
(Highly Significant)

Strong Evidence
(Significant)

Weak Evidence
(Not Significant)

No Evidence
(Not Significant)

0 .01 .05 .10

p=.0069
 Conclusions of a Test of Hypothesis
If we reject the null hypothesis, we conclude that
there is enough evidence to infer that the
alternative hypothesis is true.

If we fail to reject the null hypothesis, we conclude

that there is not enough statistical evidence to infer
that the alternative hypothesis is true
Keep in mind that committing a Type I error OR a
Type II error can be VERY bad depending on the
problem.
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