Business Research Methods

M.B.A. (Sem. - I)

2017
 Published by
Mr. Rajesh M. Patne
Success Publications
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2017
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Typesetting, Layout
Miss. Rajashi Sul
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No part of this book may be reproduced or copied in any form or by any means [graphic,
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storage device, etc., without the written permission of the publishers.
Every effort has been made to avoid errors or omissions in this book. Inspite of this errors
may creep in. Any mistake, error or discrepancy noted may be brought to our Notice which
shall be taken care of in the next edition. It is Notified that publisher shall not be responsible
for any damage or loss of action to anyone of any kind in any manner, therefrom. It is
suggested to all the readers, always refer original references wherever necessary.

ii
Preface
It is a matter of great pleasure for us to present this book to our esteemed
readers. This book has been designed as standard text on Business Research
Methods for M.B.A. (Sem. - I).
This book comprehensively covers the entire syllabus of M.B.A. (Sem.-I)
Course of Singhania University Rajasthan effective from 2017 onwards. It has been
written to meet the requirements of students of M.B.A. (Sem. - I) Some of the
special features of the book are as follows:
1. Full coverage of the revised syllabus of M.B.A. (Sem. - I).
2. Chapter outline at the beginning of each chapter to give a bird’s eye view of
the topics covered in the chapter.
3. Pointwise explanation of each topic in the chapter.
4. Topics are logically arranged in numbered paragraphs exactly according to
the modified syllabus.
5. Proposed questions at the end of each chapter.
6. Extensive use of diagrams, tables and various forms to give visual view of
key concepts and techniques.
7. Conversational, lucid and simple language.
Every effort has been made to provide the readers with most up-to-date and
authentic material on the subject.
I am very grateful to our publisher Mrs. and Mr. Rajesh Patne who have
rendered all possible assistance in bringing out this book. I wish to acknowledge our
deep gratitude to staff who have assisted and helped us in preparing this book. I will
consider my efforts amply rewarded in case the book proves useful to the students
and teachers of the subject. Suggestions of readers are welcome and shall be
acknowledged with gratitude.
With best wishes.

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 Syllabus
M.B.A. (Sem. - I)
Business Research Methods
Sr.No. Topic No of
sessions
1. Foundations of Research: 5+1
1.1 Research: – Definition, Why study Business Research?
What is good research? Decision Support, Business
Intelligence, Research applications in functional areas of
Business, Emerging trends in Business research.
1.2 Research & the Scientific Method: Characteristics of
scientific method.
1.3 Steps in Research Process
1.4 Concept of Scientific Enquiry: - Formulation of Research
Problem – Management Question – Research Question –
Investigation Question
1.5 Research Proposal: – Elements of a Research Proposal,
Drafting a Research Proposal, Evaluating a research
proposal (Students are expected to draft and evaluate a real
life research proposal)
2. Research Design: 7+2
2.1. Concept, Features of a good research design, Use of a
good research design
2.2. Qualitative research and Quantitative research approaches,
Comparison - Pros and Cons of both approaches.
2.3. Exploratory Research Design: Concept, Types: Qualitative
techniques - Projective Techniques, Depth Interview,
Experience Survey, Focus Groups, Observation.
2.4. Descriptive Research Designs: Concept, types and uses.
Concept of Cross-sectional and Longitudinal Research
2.5. Experimental Design: Concept of Cause, Causal
relationships, Concept of Independent & Dependent
variables, concomitant variable, extraneous variable,
Treatment, Control group. (Elementary conceptual treatment
expected)
2.6. Hypothesis: Qualities of a good Hypothesis –Framing Null
Hypothesis & Alternative Hypothesis. Concept of Hypothesis
Testing - Logic & Importance

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3. Measurement & Data: 7+3
3.1. Concept of Measurement: what is measured? Problems in
measurement in management research - Validity and
Reliability. Levels of measurement - Nominal, Ordinal,
Interval, Ratio.
3.2. Attitude Scaling Techniques:Concept of Scale – Rating
Scales viz. Likert Scales, Semantic Differential Scales,
Constant Sum Scales, Graphic Rating Scales – Ranking
Scales – Paired Comparison & Forced Ranking - Concept
and Application.
3.3. Types of Data - Secondary Data: Definition, Sources,
Characteristics, Searching world wide web for data, Issues
to be considered for secondary data, sufficiency, adequacy,
reliability, consistency.
3.4. Types of Data - Primary Data: Definition, Advantages and
disadvantages over secondary data,
3.5. Questionnaire Method: Questionnaire Construction -
Personal Interviews, Telephonic survey Interviewing,
Email/Internet survey, online survey sites, their utility,
constraints
4 Sampling: 6+2
4.1. Basic Concepts: Defining the Universe, Concepts of
Statistical Population, Sample, Characteristics of a good
sample. Sampling Frame (practical approach for
determining the sample frame expected), Sampling errors,
Non Sampling errors, Methods to reduce the errors, Sample
Size constraints, Non Response.
4.2. Probability Sample: Simple Random Sample, Systematic
Sample, Stratified Random Sample, Area Sampling &
Cluster Sampling.
4.3. Non Probability Sample: Judgment Sampling,
Convenience Sampling, Purposive Sampling, Quota
Sampling & Snowballing Sampling methods. Determining
size of the sample - Practical considerations in sampling
and sample size, (sample size determination formulae and
numerical not expected)

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5 Data Analysis & Report Writing: 10+2
5.1. Data Analysis : Editing, Coding, Univariate analysis -
Tabular representation of data, frequency tables,
Construction of frequency distributions and their analysis in
the form of measures of central tendency – Mean, Median
and Mode; their relative merits and demerits,
5.2. Graphical Representation of Data: Appropriate Usage of
Bar charts, Pie charts, Histogram, Leaf and stem, Candle
stick, Box plots. (Use of MS Excel)
5.3. Bivariate Analysis: Cross tabulations, Use of percentages,
Bivariate Correlation Analysis - meaning & types of
correlation, Karl Person’s coefficient of correlation and
spearman’s rank correlation; Scatter plots, Chi-square test
including testing hypothesis of association, association of
attributes. (Formulae and calculation are not expected.
Interpretation of the given data and scenario analysis is
expected for appropriate managerial decision inferences to
be drawn.)
5.4. Linear Regression Analysis: Meaning and two lines of
regression; relationship between correlation and regression
co-efficient (Formulae and calculation are not expected.
Interpretation of the given data and scenario analysis is
expected for appropriate managerial decision inferences to
be drawn.)
5.5. Test of Significance: Small sample tests: t (Mean,
proportion) and F tests, Z test, Non parametric tests:
Binomial test of proportion, Randomness test; Analysis of
Variance: One way and two way Classifications (Formulae
and calculation are not expected. Interpretation of the given
data and scenario analysis is expected for appropriate
managerial decision inferences to be drawn.)
5.6. Research Reports: Structure of Research report, Report
writing and Presentation.

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 INDEX
M.B.A. (Sem. - I)
Business Research Methods
Unit Topic Page No.
1 Foundations of Research 1.1 to 1.40
1.1 Research
1.2 Business Research
1.3 Scientific Method
1.4 Formulation of Research Problem
1.5 Research Proposal
2 Research Design 2.1 to 2.35
2.1 Research Design
2.2 Types of Research Design
2.3 Hypothesis
3 Measurement and Data 3.1 to 3.53
3.1 Measurement
3.2 Attitude Scaling Techniques
3.3 Data Collection
3.4 Sources of Data
3.5 Questionnaire Method
4 Sampling 4.1 to 4.28
4.1 Sampling
4.2 Types of Sampling
4.3 Sampling Size
5 Data Analysis and Report Writing 5.1 to 5.66
5.1 Data Processing
5.2 Data Analysis
5.3 Univariate Analysis
5.4 Graphical Representation of Data (Using
Ms-Excel).
5.5 Bivariate Analysis
5.6 Regression
5.7 Test of Significance
5.8 Analysis of Variance
5.9 Research Reports: Writing and
Presentation
 Bibliography 5.67

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 U
Foundations of
N
I 1 Research
T

1.1. Research
1.2. Business Research
1.3. Scientific Method
1.4. Formulation of Research Problem
1.5. Research Proposal

Introduction:
In today's world, research has become an important activity in overall social life.
Research provides a framework to conduct a research. Research in common parlance
refers to a search of knowledge. Research is a scientific and systematic search for
pertinent information on a specific topic. Hence, research methodology is a science of
research. And study of research methodology provides a way and guiding principles for
research.

1.1. Research:
Research is known to us as the provider of the specific knowledge needed to succeed
in researching and utilising the best and most appropriate data for decision-making. It
is collection of information on a certain ideas or theories to gain better knowledge on
something. Research can be done through reading source material or performing
experiments. It will also provide the skills needed to effectively communicate research
results to a specific audience for maximum impact and effective decision-making.

1.1.1. Meaning:
Research is a systematic structure of investigation undertaken in order to discover new
facts. It provides a structure for decision-making. Research is an inseparable part of
human knowledge. It is a process that takes the assistance of the scientific method in
solving problems. Research is a way of thinking. It clarifies the thought process.

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M. B. A. (Sem. – I) Business Research Methods
Research is undertaken in natural and social sciences. It always expects a piece of
work that advances human knowledge. Today‟s research became an important activity
in overall social life. Methodology is essential to perform any research activity. Method
means system or order. Method means way of doing something. Research
methodology provides a framework to conduct a research. The research methodology is
a science of research. Methodology provides a way and guiding principles for research.
Hence, study of research methodology became very important in today‟s academic
career.

1.1.2. Definitions:
Following are the definitions of the research:
1) Webster’s Dictionary:
“Research is a careful or critical inquiry or examination in seeking facts or principles;
diligent investigation in order to ascertaining something.”
2) Encyclopedia of Social Sciences:
“Research is the manipulation of things, concepts or symbols for the purpose of
generalising to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art.”
3) Redman and Mory:
“Research is a systematised effort to gain new knowledge.”
4) Shorter Oxford English Dictionary:
“Research is an investigation directed to the discovery of some fact by careful study
of a subject, a course of critical or scientific inquiry.”
5) John Best:
“Research is a more systematic activity directed towards discovery and the
development of an organised body of knowledge.”

1.1.3. Objectives of Research:

The purpose of research is to discover answers to questions through the application of
scientific procedures. The main aim of research is to find out the truth which is hidden
and which has not been discovered as yet. Though, each research study has its own
specific purpose, it may think of research objectives as falling into a number of following
broad groupings:
1) To Gain Insights:
To gain familiarity with a phenomenon or to achieve new insights into it (studies with
this object in view are termed as exploratory or formulate research studies).
2) To be Accurately:
To portray accurately the characteristics of a particular individual, situation or a
group (studies with this object in view are known as, descriptive research studies).

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 Foundations of Research
3) To Determine Frequency:
To determine the frequency with which something occurs or with which it is
associated with something else (studies with this object in view are known as
diagnostic research studies).
4) Test Hypothesis:
To test a hypothesis of a causal relationship between variables (such studies are
known as hypothesis-testing research studies).
5) Search New Facts:
To search new facts or verify and test old facts.
6) Discover Knowledge:
To discover perfect knowledge about social realities and to develop theories or
principles.
7) Evaluating Social Problems:
To evaluate social problems, their effects on society and to find out possible
solutions.
8) Framing New Concepts:
To frame new concepts and theories and scientific instruments by which an
authentic and easily believable study of human behaviour can be performed.

1.1.4. Characteristics of Research:

Following are the characteristics of the research:
1) Systematic:
It means that, research is structured with specified steps to be taken in a specified
sequence in accordance with the well defined set of rules. Systematic characteristic
of the research does not rule out creative thinking, but it certainly does reject the
use of guessing and intuition in arriving at conclusions.
2) Logical:
This implies that, research is guided by the rules of logical reasoning and the logical
process of induction and deduction are of great value in carrying out research.
Induction is the process of reasoning from a part to the whole, whereas deduction is
the process of reasoning from some premise to a conclusion which follows from that
very premise. In fact, logical reasoning makes research more meaningful in the
context of decision-making.
3) Empirical:
It implies that, research is related basically to one or more aspects of a real situation
and deals with concrete data that provides a basis for external validity to research
results.
4) Replicable:
This characteristic allows research results to be verified by replicating the study and
thereby building a sound basis for decisions.

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M. B. A. (Sem. – I) Business Research Methods
The research design and procedures are replicated or repeated to enable the
researcher to arrive at valid and conclusive results.
5) Analytical:
Research utilises proven analytical procedures in gathering the data, whether
historical, descriptive and experimental and case study.
6) Methodical:
Research is conducted in a methodical manner without bias using systematic
method and procedures.

1.1.5. Importance of Research:

Like the new born child, research gives us pleasure. It gives us satisfaction of knowing
the unknown social research which is persistently opening our eyes to the social reality,
simplifying the mysterious within the common place in social life.
1) Provides Guidance to Social Planning:
Social research has a crucial role to play in guiding social planning. Adequate social
planning depends for its success on systematic knowledge of the societical
resources and liabilities, of the people and their culture, of their similarities and
liabilities, of the people and their culture, of their similarities and differences, of their
needs and problems, etc.
2) Facilitates Control by Providing Knowledge:
Since, knowledge is a particular kind of power, social research by affording firsthand
knowledge about the organisation and working of the society and its institutions,
give us greater power of control over the social phenomena.
3) Knowledge is Enlightenment:
It dispels the trust of outworn assumptions, superstitions and stereotypes. It has the
effect of promoting better understanding and social cohesion, since it brings to light
the underlying oneness in the midst of bewildering variety or diversity of human
societies.
4) Suggests Effective Remedial Measures:
By virtue of the casual nexus underlying social maladies, social research provides a
secure basis for effective remedial measures. Many of the laymen-reformer‟s
„remedies‟ create other new problems. Scientific social research, thus, provides
sound guidelines for appropriate measures of welfare or reform.
5) Affords Sound Basis for Prediction:
Research affords a considerably sound basis for prediction. It has the effect of
guiding social growth on proper lines and towards the cherished goals.
In general, research helps to improve the quality of social life by offering decision-
makers substantive advice what to decide.

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 Foundations of Research

1.1.6. Essentials of Good Research:

Good research generates dependable data that, are derived by professionally
conducted practices and that can be used reliably for decision-making. The quality of
good research is discussed below:
1) Purpose Clearly Defined:
The purpose of the business research the problem involved or the decision to be
made should be clearly defined and sharply delineated in terms as unambiguous as
possible. Getting this in writing is valuable even in instances in which the same
person serves as researcher and decision-maker. The statement of the decision
problem should include its scope, its limitations and the precise meanings of all
words and terms significant to the research. Failure of the researcher to do this
adequately may raise legitimate doubts in the minds of research report readers as to
whether, the researcher has sufficient understanding of the problem to make a
sound proposal attacking it.
2) Research Design Thoroughly Planned:
The procedural design of the research and its choice among competing designs,
should be clearly described and carefully planned to yield results that are as
objective as possible. A survey of opinions or recollections ought not to be used
when more reliable evidence is available from documentary sources or by direct
observation. Bibliographic searches should be as thorough and complete as
possible. Experiments should have satisfactory controls, reducing threats to internal
validity and enhancing the probability of external validity (generalisability). Direct
observations should be recorded as soon as possible after the event. Efforts should
be made to minimise the influence of personal bias in selecting and recording data.
3) High Ethical Standards Applied:
Researchers often work independently and have significant latitude in designing and
executing projects. A research design that includes safeguards against causing
mental or physical harm to participants and makes data integrity a first priority
should be highly valued. Ethical issues in research reflect important moral concerns
about the practice of responsible behaviour in society.
4) Limitations Frankly Revealed:
The researcher should report, with complete frankness, flaws in procedural design
and estimate their effect on the findings. There are very few perfect research
designs. Some of the imperfections may have little effect on the validity and
reliability of the data, others may invalidate them entirely. A competent researcher
should be sensitive to the effects of imperfect design. The researcher's experience
in analysing data should provide a basis for estimating the influence of design flaws.
As a decision-maker, you should question the value of research about which no
limitations are reported.

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M. B. A. (Sem. – I) Business Research Methods
5) Adequate Analysis for Decision-makers Needs:
Analysis of the data should be extensive enough to reveal its significance, what
managers call insights. The methods of analysis used should be appropriate. The
extent to which this criterion is met is frequently a good measure of the competence
of the researcher. Adequate analysis of the data is the most difficult phase of have
satisfactory controls, reducing threats to internal validity and enhancing the
probability of external validity (generalisability). Direct observations should be
recorded as soon as possible after the event. Efforts should be made to minimise
the influence of personal bias in selecting and recording data.
6) Findings Presented Unambiguously:
Some evidence of the competence and integrity of the researcher may be found in
the report itself.
Example: Language that is restrained, clear and precise; assertions that are
carefully drawn and hedged with appropriate reservations; and an apparent effort to
achieve maximum objectivity tend to leave a favorable impression of the researcher
with the decision-maker. Generalisations that outrun the statistical findings or other
evidence on which they are based, exaggerations and unnecessary verbiage tend
to leave an unfavorable impression. Such reports are not valuable to managers
wading through the minefields of organisational decision-making. Presentation of
data should be comprehensive, reasonably interpreted, easily understood by the
decision-maker and organised so that, the decision-maker can readily locate critical
findings.
7) Conclusions Justified:
Conclusions should be limited to those for which, the data provide an adequate
basis. Researchers are often tempted to broaden the basis of induction by including
personal experiences and their interpretations data not subject to the controls under
which the research was conducted. Equally undesirable is the all too frequent
practice of drawing conclusions from a study of a limited population and applying
them universally. Researchers also may be tempted to rely too heavily on data
collected in a prior study and use it in the interpretation of a new study. Such
practice sometimes occurs among research specialists who confine their work to
clients in a small industry. These actions tend to decrease the objectivity of the
research and weaken reader‟s confidence in the findings. Good researchers always
specify the conditions under which their conclusions seem to be valid.
8) Researcher's Experience Reflected:
Greater confidence in the research is warranted if the researcher is experienced,
has a good reputation in research and is a person of integrity. Where it possible for
the reader of a research report to obtain sufficient information about the researcher,
this criterion perhaps would be one of the best bases for judging the degree of
confidence a piece of research warrants and the value of any decision based upon
it. For this reason, the research report should contain information about the
qualifications of the researcher.

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 Foundations of Research

1.1.7. Types of Research:

There are various types of research, which are explained below:
1) Survey Research:
Survey research is a technique, whereby the researcher studies the whole
population with respect to sociological and psychological variables. Survey research
studies large and small population by selecting and studying samples chosen from
the population. It is mostly devoted to the study of characteristics of the population
under investigation. Survey research is approached through the method of personal
interviews, mailed questionnaires and personal discussion besides indirect oral
investigation. The success of survey research depends upon the willingness and the
co-operativeness of the sample selected for the study. The different categories of
survey research are personal interview, mail questionnaire, panel technique and
telephone survey.
2) Case Study Research:
The case study is an intensive study through which one can know precisely the
factors and causes of a particular phenomenon. It is a very good method of
collecting information about an individual, a family or a group of persons. Case data
may be gathered exhaustively of an entire life cycle of a social unit or a definite
section of it. Study of social psychology without case study is like a law court without
testimony. It is considered as gateway and destination to abstract knowledge.
In this study, a large variety of units is selected for study and the size of the unit
may be quite large to cover an entire community. It aims at deep and through study
of a unit. It deals with every aspect of a unit and studies it intensively.
3) Action Research:
Applied research is also known as action research. It is a recent addition to the
categories of research. The aim of applied research is to discover a solution for
some practical problems. It is concerned with search for ways of using scientific
knowledge to solve practical problems. It is a research through launching of a direct
action with the objective of obtaining workable solutions to the given problems. The
methods used for this type of research are usually personal interviews and the
survey method. The personal values of the individuals are one of the problems
associated with action research.
4) Evaluation Research:
Every country in the world is intensively engaged in implementing target-oriented
planned programs. There is need to evaluate these programs or projects in the
context in which they are launched. Evaluation research is concerned with
measuring the effectiveness of these programs. Evaluation research is primarily
directed to evaluate the performance of the developmental projects and other
economic programs that have already been implemented.

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M. B. A. (Sem. – I) Business Research Methods
Concurrent evaluation, phasic or periodic evaluation and terminal evaluation are the
three types of evaluation research. Concurrent evaluation is a continuing process of
an inspection of the project that has been launched. Phasic or periodic evaluation
takes place at different phases or stages of performance of the project. Terminal
evaluation is the evaluation of the final phase of the project.
5) Descriptive vs. Analytical:
Descriptive research includes surveys and fact-finding enquiries of different kinds.
The major purpose of descriptive research is description of the state of affairs as it
exists at present. In social science and business research people can quite often
use the term Ex post facto research for descriptive research studies. The main
characteristic of this method is that the researcher has no control over the variables;
he/she can only report what has happened or what is happening. Most ex post facto
research projects are used for descriptive studies in which the researcher seeks to
measure such items as, for example, frequency of shopping, preferences of people
or similar data. Ex post facto studies also include attempts by researchers to
discover causes even when they cannot control the variables. The methods of
research utilised in descriptive research are survey methods of all kinds, including
comparative and correlation methods. In analytical research, on the other hand, the
researcher has to use facts or information already available and analyse these to
make a critical evaluation of the material.
6) Applied vs. Fundamental:
Research can either be applied (or action) research or fundamental (to basic or
pure) research. Applied research aims at finding a solution for an immediate
problem facing a society or an industrial/business organisation, whereas
fundamental research is mainly concerned with generalisations and with the
formulation of a theory. "Gathering knowledge for knowledge's sake is termed 'pure'
or 'basic' research." Research concerning some natural phenomenon or relating to
pure mathematics are examples of fundamental research.
Similarly, research studies, concerning human behaviour carried on with a view
to make generalisations about human behaviour, are also examples of fundamental
research, but research aimed at certain conclusions (say, a solution) facing a
concrete social or business problem is an example of applied research. Research to
identify social, economic or political trends that may affect a particular institution or
the copy research (research to find out whether certain communications will be read
and understood) or the marketing research or evaluation research are examples of
applied research. Thus, the central aim of applied research is to discover a solution
for some pressing practical problem, whereas basic research is directed towards
finding information that has a broad base of applications and thus, adds to the
already existing organised body of scientific knowledge.

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 Foundations of Research
7) Quantitative vs. Qualitative:
Quantitative research is based on the measurement of quantity or amount. It is
applicable to phenomena that can be expressed in terms of quantity. Qualitative
research, on the other hand, is concerned with qualitative phenomenon, i.e.,
phenomena relating to or involving quality or kind. For instance, when we are
interested in investigating the reasons for human behaviour (i.e., why people think
or do certain things), we quite often talk of 'Motivation Research', an important type
of qualitative research. This type of research aims at, discovering the underlying
motives and desires, using in depth interviews for the purpose. Other techniques of
such research are word association tests, sentence completion tests, story
completion tests and similar other projective techniques. Attitude or opinion
research i.e., research designed to find out how people feel or what they think about
a particular subject or institution is also qualitative research.
Qualitative research is especially important in the behavioural sciences, where
the aim is to discover the underlying motives of human behaviour. Through such
research people can analyse the various factors which motivate people to behave in
a particular manner or which make people like or dislike a particular thing. It may be
stated, however, that to apply qualitative research in practice is relatively a difficult
job and therefore, while doing such research, one should seek guidance from
experimental psychologists.
8) Conceptual vs. Empirical:
Conceptual research is that related to some abstract idea(s) or theory. It is generally
used by philosophers and thinkers to develop new concepts or to reinterpret existing
ones. On the other hand, empirical research relies on experience or observation
alone, often without due regard for system and theory. It is data-based research,
coming up with conclusions which are capable of being verified by observation or
experiment. One can also call it as experimental type of research. In such a
research it is necessary to get at facts firsthand, at their source and actively to go
about doing certain things to stimulate the production of desired information. In such
a research, the researcher must first provide himself with a working hypothesis or
guess as to the probable results. He/she then works to get enough facts (data) to
prove or disprove his/her hypothesis. He/she then sets up experimental designs
which he/she thinks will manipulate the persons or the materials concerned so as to
bring forth the desired information. Such research is thus characterised by the
experimenter's control over the variables under study and his deliberate
manipulation of one of them to study its effects.
Empirical research is appropriate, when proof is sought that certain variables
affect other variables in some way. Evidence gathered through experiments or
empirical studies is today considered to be the most powerful support possible for a
given hypothesis.

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M. B. A. (Sem. – I) Business Research Methods

1.1.8. Steps in Research Process:

The process of research involves the following steps:

Fig. 1.1: Steps in Research Process

1) Formulation of Research Problem:

The formulation of a general topic into a specific research problem is the first step in
a scientific enquiry. It must be influenced by requirements of the scientific
procedure. The formulation of problem is composed of three aspects:
a) The specification of the unit of analysis for the study.
b) The identification of the particular units within the scope of study.
c) The specification of the kind of information sought concerning those units.
Understanding the problem and rephrasing the same into meaningful terms are the
two steps involved in formulation of research.
2) Survey and Review of Literature:
This is the second step in research. After formulation of research problem, it is
necessary for researcher to undertake extensive literature survey. What others have
said about this topic, what theories have been addressed to it and what are flaws in
the existing research can be understood through literature review. A systematic
review of the related literature can show how another researcher handled a similar
problem. It can suggest a method of dealing with the problem. It can help the
researcher to evaluate his or her own research by comparing it with the efforts made
by the others.

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 Foundations of Research
3) Formulation of Hypothesis:
The third step is to formulate one or more hypothesis. The suggested explanation or
solution to the problem formulated as a proposition is called a hypothesis. A good
hypothesis must be conceptually clear and it should be related to a body of theory. It
should have variables which could be put to empirical test. Hypothesis is never
formulated in the form of a question. It should be empirically testable. The statement
of the hypothesis should not be contradictory. Statement of hypothesis must be
sharp, operative and testable.
4) Research Design:
Planning research design is the fourth step in the process of research. Reliability
and validity of the research requires the detailed strategy of how the research will be
conducted. The designing is concerned with making controlled scientific inquiry.
Research design provides the blueprint for the research. It limits boundaries of
research activity. It enables investigation to anticipate potential problems. Research
design offers a guide, that directs the research action which reduces time and cost.
The research design differs according to the research purpose. Researcher has to
prepare the practical research design.
5) Selecting Sample:
The fifth step in research is selecting a sample. A sample is any number of persons,
units or objects selected to represent the „universe‟ or „population‟ according to
some rule or plan. The researcher is expected to draw a sample from the „universe‟
in such a manner that the findings based on it will correspond closely to those that
would have been obtained from the study of universe. The researcher has to select
the sample in such a way that the selected sample is sufficiently representative of
the „universe‟. Sample is part of a whole, taken to show what the rest is like.
6) Data Collection:
The sixth step is actual collection of facts and information in accordance with the
research design. Having drawn an adequate sample from the „universe‟, the
researcher proceeds to administer the measuring instruments or tools of data
collection on the items in the sample. Researcher has to ensure that the data are
reliable and free from bias. Collection involves the basic definitions for the concepts
to be investigated, specific field procedures and the design of instruments for
recording the actual data. A vast amount of historical as well as current statistics,
ranging from various census publications to special purpose survey of particular
industries and products are already available through government publications.
Example: Each and every district of the India has a „District Statistical Office‟. Every
year this office publishes a broad survey report of concerned district. Report is
named as, „Socio-Economic Survey of the District‟. A wide range of statistics is
available in this survey report.

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7) Data Analysis:
The seventh step in research is the analysis of data. The purpose of the analysis is
to summarise the completed observations in such a manner that they yield answers
to the research questions. Researcher has to classify, tabulate and compare the
data to get the results. Data analysis seeks to determine how the units covered in
the research project respond to the items under investigation. The researcher needs
to work out central tendencies, deviations, correlations, etc. to describe and
summarise the data obtained on his/her sample. Data analysis can be classified into
univariate analysis, bivariate analysis and multivariate analysis. Univariate analysis
deals with a single characteristic of interest, bivariate analysis deals with two
characteristics of interest and multivariate analysis deals with more than two
characteristics of interest.
8) Hypothesis Testing:
Hypothesis testing is an eighth step in research. The correctness of the hypothesis
is assessed by a test of significance. Stating the hypothesis and selecting the level
of significance are the two important steps involved in hypothesis testing. For testing
a hypothesis the concepts in a measurable way. Hypothesis testing will result in
either accepting the hypothesis or in rejecting it. In case a hypothesis fits the
findings, theory from which the hypothesis was deducted would be proved. If the
hypothesis is disproved, the blow of disproof will pass on to theory, which originated
the hypothesis. If the researcher had no hypothesis to start with, he might seek to
explain his findings on the basis of some theory.
9) Interpretation of Results:
Interpretation of result is the ninth and important step in research. Research is
wasted and useless unless it influences actions. Not only results must be interpreted
into action but the recommendations must also be communicated to the executive in
an understandable manner. The process of interpretation may quite often trigger
new questions, investigating in turn further researches. Interpretation consists of the
conclusions the researcher has reached. Interpretation of data can be descriptive or
analytical or it can be from theoretical standpoint. Negative results are much harder
to interpret than positive results. Researcher must have analytical mind and he must
possess techniques of analysis for interpreting the results.
10) Preparation of Report:
Preparation of report is a last step in research. The research exercise is not
complete till such time as the report is published. A research report clearly states
what problem one can choose, what hypothesis one proposed, how one can
extracted the data and the method one can used, how one can measured it, how
one can interpreted it and how your conclusions finally / logically result from all this
systematic activity.

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 Foundations of Research
The research report should be written in a clear and unambiguous language, so that
the readers can objectively judge the adequacy and validity of research. Writing of a
lucid and methodological research report is not an easy task. Cover and the title
page, introductory pages, text, reference section are the four important parts of a
report. Report is a concrete output of the research.

1.1.9. Research Applications in Functional Areas of Business:

In those days, an increasing amount of attention is being devoted to the decision-
making process of business managers, customers and employees. Many of the
advances in business management in recent years are the result of adopting research
findings in the behavioural sciences to business situation. It is to be noted that, all the
social sciences, low and many other disciplines may have aspects that relate to
business.
A) Research and Business Decisions:
Research is a fact finding process. It profoundly influences business decisions. The
business manager is interested in choosing the course of action which is most
effective in attaining the goals of the organisation. Research not only provided facts
and figures in support of such business decisions but enables one to choose a
measuring rod to judge the effectiveness of each decision. Research and research
findings are considered as a boon in problem-solving decision process. Model
building has become an integral part of report writing now-a-days which makes
executive decision more effective. The decision-maker wants the simplest model
that predicts outcomes reasonably well and is consistent with effective action on his
part: Research has a tremendous potentiality to assist him in this respect
substantially. In management, it can therefore, be defined as the process of
systematic investigation of any management problem.
B) Functional Areas of Business:
Any managerial analysis should take into account both the external and internal
systems, especially the internal systems. Knowledge of internal systems requires an
understanding of the physical, human, financial and technological make-up of the
organisation. It includes all the functional areas that operate as sub-systems of the
organisational system. They are explained below:
1) Finance and Investment:
Research in financial management includes operations of specialised financial
institutions as well as the financial side of regular business firms e.g.,
operational and capital budgeting, investment analysis, insurance, international
finance, cash management, receivables management. Financial research has
not attained the distinction which it deserves and much research in this area has
been carried out by researcher from other fields.

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Example: Capital equipment replacement research has been conducted by
economists and industrial engineer. A list of broad areas of finance and
investment is given below:
a) Financial Analysis:
i) Capital structure.
ii) Ratio analysis.
iii) Valuation of companies.
iv) Acquisitions, Mergers, Reorganisation, Liquidation.
b) Rationing Resources:
i) Sources of funds and cost of capital.
ii) Opportunities for profit.
iii) Liquidity constraints.
c) Management of Funds:
i) (Short, Intermediate and Long-term.)
d) Management of Assets:
i) (Current and Fixed.)
e) Financial Markets and Intermediaries:
i) New issue market.
ii) Market regulation.
2) Manufacturing:
Manufacturing research has tended to focus on materials and equipment rather
than on the human aspects. Manufacturing research identifies new and better
ways of producing goods, invents new technologies, reduces costs and
improved product quality.
The information from the production system may include details of raw
materials inventory, finished goods inventories, work-in-process inventories and
component part inventories. The data on maintenance and the characteristics of
production equipment may be used for equipment replacement analysis. The
data on composition of work force skills, turnover, absenteeism, accidents.
Shifts, strikes, labour turnover, etc., are relevant to the studies in production
management. While, cost information is useful for cost control studies, cost-
benefit analysis, etc. Other prominent areas for research in manufacturing
function are given under the following headings:
a) Capital budgeting - Equipment purchase and replacement.
b) Product development research.
c) Cost reduction research.
d) Performance improvement research.
e) Work simplification research.
f) Profitability improvement research.
g) Inventory control research.

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 Foundations of Research
h) Product design analysis.
i) Process improvement studies.
j) Organised and oriented manufacturing process research.
k) Quality control studies.
l) Wage administration, wage methods, work measurement and wage payment
plans.
3) Sales and Marketing:
Sales and marketing research deals with production and distribution problem,
marketing institutions, marketing policies and practices. Marketing research is
better established than production research. It is because marketing has not
been so closely interwoven with technology.
An outline of such topics is given below :
a) Marketing Policy:
It includes pricing, inventory, advertising salesmen‟s compensation, service
customer relations, channels of distribution international operations.
b) Product Research:
New product ideas, product standardisation and variety control,
improvements and new uses for present products, brand names and
trademarks, packaging, customer preferences, company and product image.
c) Market Research:
Economic forecasts, industry forecasts, sales forecasts, market and sales
potential by product, customer, are a salesman, competition, technology
forecasts, etc.
d) Sales Management and Methods:
Types of organisation, quality, quantity and type of personnel, compensation,
long-range organisation planning effectiveness and efficiency of the sales
organisation, customer service, sales operation control etc.
e) Channels of Distribution:
Evaluation of alternative, channels of distribution, inventory control, logistics.
f) Advertising and Sales:
Promotion research, consumer-motivation studies, media selection,
advertising appeals, copy testing, readership studies, TV-commercial
measurements, trade-show participation, point of purchase advertising,
premiums, deals and special promotions.
g) Marketing Information System:
Organised set of procedures information-handling routines, reporting
techniques, recording procedures.
4) Manpower Planning:
Manpower planning provides wider scope for research than any other functional
area. It is because human behaviour is prone to constant changes.

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Individual behaviour is different from collective behaviour, human attitudes to
work life differ substantially from those of social life. Heredity‟s influence and
environment‟s impact on human behaviour affect organisational behaviour and
productivity. Research in manpower planning is, therefore, more vital than in any
other functional area, because of the greater importance of the human element
in the enterprise.
Broad areas for research in manpower planning include the following :
a) Personnel policies.
b) Personnel organisation structure.
c) Job and manpower requirement, job evaluation.
d) Recruiting, selecting, hiring and placement of employees.
e) Training and development of employees.
f) Promotion and transfer.
g) Morale and attitudes.
h) Communication.
i) Wage and salary administration.
j) Labour relations.
k) Industrial disputes.
l) Collective bargaining.
m) Job enrichment programmes.
n) Health, safety and working conditions.
o) Fringe benefits.
Research in manpower planning may range from very simple problems to highly
complex problems of all types. Because, it is concerned primarily with the
human aspects of the business concern, the amount of research and reporting
on personnel problems has been exceeding large. Much more basic research in
this field would be valuable. A systematic research plays a great role in the
determination of the individual needs of the work force. That is why, personnel
policies have to be guided by research.
5) Cost and Profit Planning:
To minimise cost and maximise profits is an important function of finance
managers. For this purpose, manager has to think for cost and profit planning.
For profit maximisation, there must be control on cost. For this, a high level of
long - term and short-term corporate profit is planned by the financial
management. This is possible only if the finance department is enriched with
sufficient information inflow on the internal and external forces that influence
corporate goals, decisions and actions. The management information system
aids in this process.
It provides adequate research and analysis. The finance executive anticipates
the problem areas and considers ways and means of tackling the difficulties in
order to plan the steps that would enable him to minimise risk.

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 Foundations of Research
Anticipating problem areas and alternative courses of action as well as choosing
the best course depend on a systematic analysis of the situation. This is the
work of a research analyst.
The functions of financial management that lead to profitability include cost
control, pricing, forecasting future profits and measuring the cost of capital. A
detailed cost accounting system is a part of a large-scale business operation. It
requires a large quantity of processed data, its systematic presentation and
interpretation. Pricing decision are joint decisions of the marketing and finance
managers and both cost and marketing data and analytical framework support
them. In order to forecast future profits, an adequate analysis of current costs,
likely cost escalations likely changes in the ability of the firm to sell its products,
market changes, internal and external forces, all these are necessary. All these
factors have to be studied in detail with a view to measuring the cost of capital.
The cost component of each source is investigated in detail prior to determining
the profit margin. Therefore, profitability analysis is a sort of research conducted
by the finance department.
6) Research in Total Business Planning:
Research is an essential aid to decision - making. It is helpful in total business
planning. Research is an important aid to planning. It can be said that one may
not be in a position to decide in advance what to do, how to do it, when to do it
and who is to do it, without the necessary investigation, examination and
evaluation, which form part of research. Planning includes the following:
a) Forecasting:
Planning is backed by forecasting and forecasting is possible only through
research analysis and interpretation. It follows that planning is redundant
without adequate research connected with it. The major aspects of planning
are its contribution to the purpose and objectives, its primary among the
manager‟s tasks, its pervasiveness and the effectiveness of plans. All these
are closely linked with observation, induction and deduction. Resultantly
research is inseparable from planning. Therefore, there cannot be planning
without research.
b) Formulation of Objectives:
Planning is preceded by the formulation of objective. Formulation of
objective is linked with forecasting. The settings of the objectives of the
organisation should be based on its strengths, weaknesses opportunities
and the potential threats it may have to face. All these can be determined by
research and analysis. Thus, research provides the basis for planning.
c) Control:
Planning is closely associated with control. For control, plans are to be
prepared. Any attempt to control without plans is meaningless.

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Plans furnish the standards of control. Fixing of these standards
necessitates investigation and analysis of opportunities, needs and
aspirations, the performance and prospects of the enterprise, industry and its
competitors and various environmental forces and determinants. Evidently,
research is the basis for standards. If facilitates a comparison of
performance with pre-established standards. Thus, while planning and
control are interlinked with each other, researcher is closely connected with
both.
d) Data Collection:
Planning is associated with policy. To form policy, the manager has to collect
appropriate data and information. Such data and information are obtained
through research.
e) Method and Manner of Carrying Out Activities:
A proper method and manner for carrying out activities can be identified with
the help of adequate analytical framework. The planning of programmes of a
complex nature consisting of goals, policies, task assignments etc., calls for
evaluations and interpretations at all stages. It is research process. So,
research is important in planning.
f) Budget:
All planned programmes are supported by the budget. Budget is a statement
of expected results expressed in numerical term. It is prepared on the basis
of data collection, presentation, analysis and interpretation. The budget is a
fundamental planning instrument and a control device. It is backed by
research and analysis to ensure accuracy and purposefulness.
At all the steps of planning, an appropriate information system must be
there. Research is the basis for this information system. Research throws
light on all the supporting situational factors of planning. As a matter of fact,
planning enables the manager to make a rational approach to the
accomplishment of objectives, while a rational approach to planning is made
possible only by research.

1.2. Business Research:

Business research is an important management activity that helps companies to
determine the products which will be most profitable for companies to produce. Several
steps are necessary when conducting the business research, each step must be
thoroughly reviewed to ensure that the best decision is made for the company.

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 Foundations of Research

1.2.1. Meaning:
The business research method is how companies collect information from consumers or
business-to-business customers. Some business research is conducted among smaller
groups of people, with the objective of clarifying research content.
Example: A restaurant company may test six menu items but try to find the best two for
further research. Other business research is for garnering explanations of customers'
purchases or buying habits. There are several key steps in the business research
process. Business research is a systematic and objective process of gathering
recording and analysing data for decision-making. The research must he systematic not
haphazard. It must be objective to avoid the distorting effects of personal bias.

1.2.2. Definitions:
Following are the definitions of the business research:
1) McDaniel and Gates:
“Business research is the collection and analysis of data relevant to business
decision-making and the communication of the results of this analysis to
management.”
2) Zikmund:
“Business research is a management tool that companies use to reduce uncertainty.
It is a manager's source of information about organisational and environmental
conditions and covers topics ranging from long-range planning to the most
ephemeral tactical decisions.”

1.2.3. Objectives of Business Research:

Before a business conducts any research, whether it is simply to gather information or
for something specific, the company executives must have a set must be clearly
defined. Business objectives are often listed at the beginning of the research reports
and are often understood as research goals.
1) To Solve the Problems Related to Business:
The purpose of business research is to identify existing and forthcoming problems
facing a business field helping the management to make decisions. It also involves
identifying a society needs to come up with means of satisfying that need or what at
a time, place and at a price the community is prepared to pay.
2) Invention and Development of New Business Practices:
Another important goal of business research is the invention and development of
new business practices, rather than simply examining existing ones. Such research
is better supported by the Design Science Research (DSR) paradigm.

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M. B. A. (Sem. – I) Business Research Methods
3) To Promote Business:
The objectives of any good business research should be how to better promote
business in an economically sound manner and to increase the businesses net
profit, exposure and ensure its continuity. In this day and age, that also means in an
environmentally conscious fashion, while also considering social factors. Having
these objectives defined helps to determine the characteristics of good business
research.
4) To Examine Goals of Businesses:
Still another important goal of (some areas of) business research is to examine
goals of businesses (and other organisations) other than profit. Many organisations
that benefit from business research are not businesses, but are government or not-
for-profit organisations. Furthermore, many researchers within business are
concerned with the relationship of business organisations to local communities and
society.
5) To Achieve of Social and Environmental Good:
Other goals, such as those incorporated into the triple bottom line (i.e., achievement
of social and environmental good), are also very relevant. Understanding how
existing business practices impact upon people and communities or development of
new business practices as above that improve upon that impact, is much better
supported by the Critical Research (CR) paradigm.

1.2.4. Importance/ Significance of Research:

Business research is useful and helpful in various areas to solve the complicated
problems. The importance of business research in various areas is described as
follows:
1) Marketing Decisions:
Business research plays crucial role in taking sound marketing decisions. Research
tools are applied effectively for studies involving demand forecasting, consumer
buying behaviour, measuring advertising effectiveness, media selection and new
product potential.
2) Production Decisions:
Business research helps to producer in taking production decisions. Research
enables an organisation to decide on what to produce, how much to produce, when
to produce and for whom to produce in the field of production.
3) Helps Banking Institution:
Business research is useful to banking institution. They have found it useful to setup
research departments for the purpose of gathering and analysing information both
for their internal operations and for making in-depth studies on economic conditions
of business.

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 Foundations of Research
4) Foundation for Government Policies:
Business research provides basis for all government policies in our economic
system. Research is useful in economic planning. It also helps the government in
preparing budget and collection of information on the economic and social structure
of the nation.
5) Human Resource Department:
Business research helps human resource department in several ways. Research is
useful to study wage rates, incentive schemes and cost of living and employment
trends. Research is effectively used in manpower planning.
6) Solving Problems of Business and Industry:
Business research plays significant role in solving problems of business and
industry. It helps to business and industry through providing information required for
business decisions.

1.2.5. Need for Studying Business Research:

Businesses use research to set themselves apart from their competition. Research can
give business owners valuable information on consumer buying habits. Owners also
can discover which products and services consumers like and dislike. Research is
especialy important for people who want to determine if a new idea has the potential to
support a solid business. Thus, to run a successful business, step by step research has
to be conducted at every crucial point. The following points give a brief discussion for
need of studying business research.
1) Product Analysis:
Product analysis is the first step of business research. Companies must find a
product that meets or exceeds consumer demand or the product will fail in the
economic market place. One type of analysis is to find an existing product that can
be improved through design or features. Another type of product analysis will find
emerging markets with high demand and low supply, which allows for companies to
sell new products to meet consumer demand.
2) Market Analysis:
Companies will conduct a market analysis to determine how much profit may be
earned from current demand. Management will look at which stage of the business
cycle the market is currently in, whether emerging, plateau or declining. Each stage
has its own level of profitability, with the first stage being the highest and the last
stage being the lowest profitability. A market analysis will also determine the price
points at which products can be sold.
Example: High-quality products at a higher price may not tempt consumers to start
buying the product based on quality itself.

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M. B. A. (Sem. – I) Business Research Methods
3) Financial Analysis:
A financial analysis determines the cost of each production item used to produce
goods and services. High costs may not allow companies to price goods or services
competitively, leading to an unprofitable situation. Management will examine the
costs of raw materials, labour and manufacturing overhead to find the best raw
goods available to produce the most profitable product. Management will also
review the best cost application methods, ensuring that all production costs are
properly applied to each product or service produced.
4) Competitor Analysis:
Analysing the current competitors of a market is an important part of business
research.
Knowing which companies have the best production methods or customer loyalty
helps new companies understand how they can create a competitive advantage
when entering a new market. Proper business research will also indicate how
financially stable companies are and if they can be purchased outright by a
company wanting to enter the industry. Buying a competitor may be cheaper than
starting new operations for a company.

1.2.6. Emerging Trends in Business Research:

The past two decades have seen dramatic changes in the business environment.
Emerging from what is, historically, an economic role, the business organisation has
evolved in response to the social and political mandates of national public policy,
explosive technology growth and continuing innovations in global communications.
These changes have created new knowledge needs for the manager and new publics
that should be considered when evaluating any decision. Other knowledge demands
have arisen as a result of problems with mergers, trade policies, protected markets,
technology transfers and macro-economic savings-investment issues. The current trend
towards complexity has increased the risks associated with making business decisions,
meaning that it is more important than ever to have a sound information base. Likewise,
the complexity of the phenomena that scientists are investigating impedes our
understanding of what is really happening Rather than concluding that 'all depends on
almost everything' we must strive for meaningful explanations.

1.2.7. Sources of Information in Business Research:

Managers have access to information other than that generated by business research.
Understanding the relationship between business research and other information
sources-decision support systems and business intelligence, is critical for
understanding how information drives decisions relating to organisational mission,
goals, strategies and tactics.

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 Foundations of Research

Goals

Decision
Tactics
Support

Business
Strategy
Intelligence

Fig. 1.2: Sources of Business Intelligence

1) Goals:
A local bakery would have different goals than Nabisco, but each likely has goals
related to sales (membership), market share, return on investment, profitability,
customer acquisition, customer satisfaction, customer retention, employee
productivity, production efficiency, maximisation of stock price (or owner's equity)
and so on-whether codified in a written plan or detailed only in an entrepreneur's
brain. To assist in making increasingly complex decisions on goals, strategies and
tactics, managers first turn to information drawn from the decision support system,
combined with that generated by business intelligence on competitive and
environmental activity.
2) Decision Support:
The need to complete one or many exchanges with its prospective customers,
members or constituents drives every organisation. No matter how we define an
exchange a purchase, a vote, attendance at a function, a donation to a cause-each
exchange, along with the strategic and tactical activities designed to complete it,
generates numerous elements of data. If organised for retrieval, collectively these
data elements constitute a decision support system (DSS). During the last two and
one-half decades, advances in computer technology made it possible to share this
collected transactional data among an organisation's decision-makers over an
intranet or an extranet. Today, sophisticated managers have developed DSSs,
where data can be accessed in real time (as transactions are completed). Catalog
managers (e.g., casual clothing retailer land‟s end) know exactly what tactics
generate a transaction from a particular individual within their prospect and
customer databases, as well as just how profit table each customer is to the
company and an estimate of that customer's, lifetime value to the company. Such
managers have a distinct advantage in strategic and tactical planning over those
without real-time access to transactional data.

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M. B. A. (Sem. – I) Business Research Methods
3) Strategy:
Strategy is defined as the general approach an organisation will follow to achieve its
goals. In an earlier example, a restaurant was receiving comments that the friendly
atmosphere was changing. This perception may have been the result of a change in
strategy. Perhaps the restaurant decided to switch from an atmosphere, where
patrons were encouraged to linger over their meal (occupying a table for a long
period of time while adding incremental revenues with each additional course) to a
new strategy of turning each table in a shorter time frame by changing food
preparation and the menu. A firm usually implements more than one strategy at a
time. With regard to training, one organisation might train its data warehouse
employees with mostly classroom activities, while another will use on-the-job
training. Another strategy might describe how an organisation handles maintenance
on its equipment-rigorous periodic maintenance versus maintenance only when
equipment breaks down. Microsoft recently, completed a major corporate
restructuring. It decided to tie its 600 managers' compensation, not to sales and
profits, but to levels of customer satisfaction as measured by periodic customer
satisfaction surveys. The discovery of opportunities and problems that influence
strategic decisions is often the task of the BIS in combination with business
research.
4) Business Intelligence:
Because no decision exists in a vacuum, the decision-maker must have a broad
knowledge of the firm's environment. A business intelligence system (BIS) is
designed to provide the manager with ongoing information about events and trends
in the technological, economic, political and legal, demographic, cultural, social and
most critically, competitive arenas. Such information is compiled from a variety of
sources, as is noted in exhibit 1-1 .Often, data from a DSS or BIS stimulate the
question should we do business research? In the mind-writer example, this might be
data collected about laptop problems needing repair or for our restaurant whose
friendliness quotient is changing, it might be customer comments collected by the
wait staff.
5) Tactics:
Business research also contributes significantly to the design tactics -those specific
timed activities that execute a strategy. Business research also can be used to help
a manager decide which of several tactics is likely to successfully execute the
desired strategy. In our earlier example, our restaurant manager might have
changed the menu (marketing tactic) to feature entrées that could be prepared
faster (operations tactic) and delivered to a table more quickly. The manager might
also have instituted a new training program (HR tactic) to implement a new zoned,
table-coverage structure (operations tactic), along with a new sales-incentive
program (HR tactic) that discouraged the wait staff from making small talk with
patrons and rewarded teamwork and efficiency.

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 Foundations of Research
All of the above examples demonstrate the purposes of business research:
a) To identify and define opportunities and problems.
b) To define, monitor and refine strategies.
c) To define, monitor and refine tactics.
d) To improve our understanding of the various fields of management.

1.3. Scientific Method:

The scientific method is a body of techniques for investigating phenomena, acquiring
new knowledge or correcting and integrating previous knowledge. To be termed
scientific, a method of inquiry must be based on empirical and measurable evidence
subject to specific principles of reasoning. Science is a method of looking at world. This
method is nothing but is systematically organised scientific one. Without scientific
method it is not possible for researcher to study things in a proper way.

1.3.1. Meaning:
The scientific method is the essential process through which scientific inquiry is
governed. Through it, knowledge is accrued, theories formulated, hypothesis tested and
results applied. It is broadly comprised of five major steps: questioning, researching,
hypothesizing, testing and analysis. Science is a method of looking at world. This
method is nothing but is systematically organised scientific one. Without scientific
method it is not possible for researcher to study things in a proper way.

1.3.2. Definition:
Following are the definitions of the scientific method:
1) George L. Lundberg:
“Scientific method consists of systematic observation, classification and
interpretation and data. The main difference between our day to day generalisation
and the conclusion usually recognised as scientific method lies in the degree of
formality, rigorousness, verifiability and general validity of the latter.”
2) Karl Pearson:
“The scientific method is marked by the following features:
a) Careful and accurate classification of facts and observation of their correlation
and sequence.
b) The discovery of scientific laws by aid of the creative imagination.
c) Self criticism and the final touch stone of equal validity for all normally
constituted minds.”

1.3.3. Characteristics of Scientific Method:

Without scientific method, no study or research is complete. Through this method
researcher is able to make his results and concepts correct and reliable.

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This method is more useful for the field of social science. The subject matter of social
science is quite complex, variable and ever changing. Through this method, people are
able to achieve definite results, free from subjective influences. Therefore, it must
possess the following characteristics:
1) Verifiability:
Results of the scientific method are invariably correct and dependable. They do not
differ according to circumstances or place and time. This is not the case with results
that we arrive at through non-scientific method. Once conclusion has been drawn as
a result of scientific method, it may be said that it is the result of a particular
phenomena. The conclusions drawn through scientific methods are subject to
verification at any time. Verifiability presupposes that the phenomena must be
capable of being observed and measured.
2) Generality:
Scientific laws are universal in their application. The conclusions that are drawn as a
result of the scientific study or through scientific method should apply to all the
persons in all the circumstances. Factors of time and place cannot change the
application of the conclusions. In other words, it means that the scientific principles
are the principles evolved in scientific method should be universal.
3) Predictability:
Another characteristic of scientific method is that its results can be predicted with
sufficient accuracy. The conclusions that are drawn as a result of scientific method
are helpful in prediction. Generally, the conclusions that we see today may change
tomorrow, according to circumstances, but the conclusions that are drawn as a
result of scientific study help us to predict about other things. These conclusions are
based on causal relationship. As a result of this, it is not possible that the
conclusions shall change.
4) Objectivity:
When a phenomena is observed in its true form without being affected by observer‟s
own views it may be termed as objective observation. The first requisite of all sound
knowledge is the determination and ability to get at naked facts and not to be
influenced by mere appearances or by prevalent notions or by one‟s own wishes.
The main criterion of objectivity is that, all persons should arrive at the same
conclusion about the phenomena.
Example: When we say that coal is black, it is an objective statement because coal
will appear black to all the people. But, if we say that coal is the most useful mineral
the statement may not be purely objective. Every one may not agree to this
proposition. Objectivity is essential for verification. It is fundamental to all sciences
as the very purpose of sciences is to arrive at the naked truth. Apparently objectivity
seems very easy to achieve, but in actual practice it is not so.

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 Foundations of Research
It is very difficult, sometimes equal to impossibility to have detached view of
phenomena in which the observer himself involved. This is why objectivity is more
difficult to be achieved in case of social sciences.
5) Definiteness:
If a particular conclusion has been drawn as a result of scientific study, it is also
definite. In other words, definiteness is as much a part of the scientific method as
the verification. Because of definiteness, specificness becomes a part of those
conclusions. Any person can judge and check the definiteness of the facts or the
conclusions arrived at, as a result of the study of scientific method. The results and
the philosophical concepts that are drawn through individual concepts cannot be
called definite. The conclusions that are arrived at as a result of scientific method
become definite because of the study, observation and verification of data.
6) System:
The scientific conclusions are not only true, but also they are born of systematic
mode of investigation. It is only under these circumstances that the results can be
verified. The elements of system points to the fact with the means through which
conclusions are drawn scientifically planned and systematic. In every research, the
study is conducted through a scientific and planned manner.

1.3.4. Need of Scientific Method:

Scientists conduct research in order to find out the answers to a wide variety of
questions. For example, some scientists study how natural phenomena occur or how
different organisms interact with their environment, whereas others might be searching
for cures for major diseases or trying to learn more about nutrition. Scientists conduct
research by reading about the subject, designing experiments and interpreting data
after the experiments have been conducted.
1) Fields of Study:
Scientists conduct research in a wide variety of fields. Most scientific research falls
into the fields of biology, chemistry and physics.
Example: Biologists, for instance, conduct research on how organisms interact with
their environment, how different factors influence human behaviour and how to
prevent or cure disease. What scientists study is limited only by the types of
questions they are interested in exploring.
2) Purpose of Research:
All scientific research seeks to answer questions. Scientific questions ask how or
why something happens. The answers to these questions help broaden our
understanding of how the world works however, most scientists consider the
answers they get through research to be theoretical or probable rather than
absolute fact. This allows for differences of opinion in the scientific community as
well as helps scientists keep their minds open. As new discoveries are made,
scientists change their beliefs about how something works.

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3) Pre-Research Activities:
Scientists begin the research process by writing a question they would like to
answer. The question must refer to something that can be studied using
scientifically designed experiments, it must also be written in an open-ended
manner.
Example: A question about: why birds fly south in the winter is better crafted than
one asking whether birds really feel warmer when they fly south or whether they
have some kind of ESP that tells them, where the warm areas are. After crafting the
question, scientists then read studies about the subject. They learn what other
scientists have studied and discovered, so that they can avoid repeating work and
can generate ideas about the answer to their question.
Scientists then come up with a hypothesis or possible answer to their question. The
hypothesis must be falsifiable. Fallibility means that evidence can be collected that
proves the hypothesis is not true.
4) Designing Research Experiments:
Scientists test their hypothesis by designing and running experiments. A well-
designed experiment involves two groups of people or objects. The scientists
change one element, called a control variable and record how that changes the
outcome of the experiment.
Example: Suppose a scientist wants to find out whether adding salt to water
changes the water's boiling point. The scientist would have to boil exactly the same
amount of water, use pots made out of the same material, use the same equipment
to boil the water and so forth. Ideally, the only thing that would be different the
addition of salt or not, into the water.
5) Interpreting Data:
After the experiment has been completed, scientists must interpret the data to come
to a conclusion about the subject being studied. Often, someone else in the lab will
record all data collected on a separate sheet, leaving out identifying information
such as the names or genders of people or which group an object is classified
under. This helps ensure the scientist is looking objectively at the facts rather than
making judgments based on biases. When the data is ready, scientists perform
statistical calculations to determine how likely certain results are and eliminate the
possibility that results have occurred by chance. They then publish the results and
their conclusions. Other scientists often repeat their experiments to make sure the
results are accurate.

1.3.5. Concept of Scientific Enquiry:

Scientific inquiry involves a systematic process that focuses on being objective and
gathering a multitude of information for analysis, so that the researcher can come to a
conclusion.

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 Foundations of Research
This process is used in all research and evaluation projects, regardless of the research
method (scientific method of inquiry, evaluation research or action research). The
process focuses on testing hunches or ideas in a park and recreation setting through a
systematic process. In this process, the study is documented in such a way that another
individual can conduct the same study again.
This is referred to as replicating the study. Any research done without documenting
the study so that, others can review the process and results is not an investigation using
the scientific research process. The scientific inquiry process is a multiple-step process,
where the steps are interlinked with the other steps in the process. If changes are made
in one step of the process, the researcher must review all the other steps to ensure that
the changes are reflected throughout the process.
The goal of a scientific inquiry is to obtain knowledge in the form of testable
explanations that can predict the results of future experiments. This allows scientists to
gain an understanding of reality and later use that understanding to intervene in its
causal mechanisms (such as to cure disease). The better and explanation is at making
predictions, the more useful it is and the more likely it is to be correct. The most
successful explanations, which explain and make accurate predictions in a wide range
of circumstances, are called scientific theories. Scientific inquiry is generally intended to
be as objective as possible in order to reduce biased interpretations of results. Another
basic expectation is to document, archive and share all data and methodology, so they
are available for careful scrutiny by other scientists, giving them the opportunity to verify
results by attempting to reproduce them.

1.3.6. Research and Scientific Study:

Research using the scientific method is a process that moves an idea from hypothesis
to theory. This process can take years even decades. Studies are only considered
scientifically valid if this method is followed. They are taught at all levels of education,
from elementary school (i still have my daughter's 5th grade poster presentation
regarding which brand of dish soap produced more suds) to serving as the backbone of
every Ph.D. candidate's dissertation. The process is as follows:
1) Review of the Research Literature:
A researcher garners an idea through review of the research literature to date,
observations through clinical practice or even conjecture that seems to hold truth for
example, Pavlov noting the behaviour of his dogs at meal time or Newton being
bonked on the head by a falling apple.
2) Developing a Hypothesis:
From this initial idea, a scientist develops a hypothesis a tentative explanation into
what he or she believes to be the truth.

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3) Method for Testing This Hypothesis:
The next step involves the development of a method for testing this hypothesis. The
research is then conducted using the detailed method chosen and the data is then
analysed.
4) Reporting:
The findings are reported to the scientific community and future directions are
determined. If the findings support the hypothesis, additional research will be
conducted by other scientific teams towards replicating the same results, giving
additional weight to the hypothesis or demonstrating that the same results cannot
be reproduced, indicating the hypothesis is not valid. This process may also
uncover information that gives researchers the new ideas, new hypothesis for
research.
If, over time, many researchers following the exact same procedures and then
testing with differing methods in differing circumstances have achieved the same
results, a hypothesis becomes a theory a formally accepted explanation with
considerable facts to support why or how something happens. Over the couple of
centuries the scientific method has been developed and applied, the process began
as a ponderous, disorganised approach with gains in understanding and theory slow
to evolve. However, as with any discipline, the work gained a collective
consciousness, shed much of the weight of religious and political interference,
developed specialties and organised review processes. This allowed research to
become leaner and more efficient, gaining momentum with findings built on the work
of predecessors. Gains in learning are now achieved in periods of years rather than
decades.

1.4. Formulation of Research Problem:

Identification of a research problem is the first step in scientific inquiry. One of the most
difficult phases of any scientific inquiry is the choice of a suitable problem. The beginner
is likely to take a very long time in making his choice. In this first step of any research
the research worker should not take a hasty decision. Every problem, which comes to
his mind or even that suggested by a more experienced person, may not be a fit
research problem. The identification of a good research problem should be considered
a discovery in itself.

1.4.1. Concept of Research Problem:

A problem in simple words is some difficulty experienced by the researcher in a
theoretical or practical situation solving this difficulty is the task of research. The
problem defines the goal of the researcher in clear terms. Thus, without a problem,
research cannot proceed because there is nothing to processed from and proceed
toward.

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 Foundations of Research
In social sciences, quite a number of researchers may be faced with this problem, i.e.,
the problem of not being able to see a problem. It becomes pre-requisite to make the
problems concrete and exploit as a first step in formulation of research. The selection of
a research topic may be determined by other than scientific consideration. The
formulation of the topic into a research problem is the first step in a scientific enquiry. It
should be influenced by the requirement of the scientific procedure. However, there is
no fool proof rule which will guide the investigator in formulating significant questions
about a given research area.

1.4.2. Factors Determining the Selection of a Problem:

Two sets of factors should be considered in choosing a good research problem. These
factors are those related to the researcher and those related to the environment. Such
factors as epitomised by scholars are as follows:
1) Workability:
The researcher must consider whether he or she has enough time and funds to
carry out the study successfully.
2) Methodology:
It is necessary to consider whether it is feasible to adopt what appears to be the
most appropriate methodology.
3) Coverage:
In general terms, the more restricted the study the more thorough the work is likely
to be. Coverage refers to both the breadth of the problem and the depth of analysis.
4) Practical Value:
Basic research does not emphasise practical value. But, in all other forms of
research, practical value is of great importance.
5) Interest:
It is obvious that a problem, which is of interest to the researcher, would be studied
more efficiently by him/her than another in which he/she is not interested. Interest in
the problem area will generate enthusiasm in reading extensively about the subject
and willingness to be thorough in the analysis.
6) Theoretical Value:
The work must contribute to knowledge. The study should be properly placed within
the context of previous studies. The problem must derive from or be linked to a
theory.

1.4.3. Management Question:

The first step in the process is to identify a problem or develop a research question. The
research problem may be something the agency identifies as a problem, some
knowledge or information that is needed by the agency or the desire to identify a
recreation trend nationally.

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The researcher problem is an account of the major issues that researcher's want to
investigate and explain. It is the main question that the researchers want to provide
answer to in their study. This is a complex phenomenon, which cannot be understood
by mere feeling and observation, but requires solution through reasoning or thinking
and application of basis scientific research tools and procedures. One can approach the
research process by stating the basic dilemma that prompts the research. After stating
dilemma, other questions can be developed. Once the management dilemma is stated
the manager has to move to the management question. It is necessary to proceed with
the research process. The management question restates the dilemma in question form
as follows:
a) What should be done to reduce employee turnover?
b) What should be done to increase tenant residency and reduce move-outs?
c) What should be done to reduce costs?
Management Question Categories:
There are too many management questions. These questions can be categorised as
follows:
1) Choice of Purposes or Objectives:
Choice of purposes or objectives is the first type of management question. The
general question is, “What do we want to achieve?” At the company level the
question might be, “Should we at ABC Corporation reconsider our basic corporate
objectives as they concern our public images?” More narrowly a management
question on objectives might ask “What goals should ABC try to achieve in its next
round of labour negotiations?”
2) Generation and Evaluation of Solution:
A second category of management questions concerns the generation and
evaluation of solutions. The general question is, “How can we achieve the ends we
seek?” Research projects in this group usually deal with concrete problems that
managers quickly recognise as useful. Projects can involve following questions.
a) How can we achieve our five-year goal of doubled sales and net profits?
b) What should be done to improve the complete care programme certain product
repairs and servicing?
c) What should be done to reduce post purchase service complaints?
3) Trouble Shooting or Control Situation:
A third category of management question concerns the trouble shooting or control
situation. The problem usually involves monitoring or diagnosing various ways in
which an organisation is failing to achieve its established goals. This group includes
questions such as “Why does our department incur the highest costs?” and “How
well is our programme meeting its goals?” The definition of the management
question sets the research task. So, a poorly defined management question will
misdirect research efforts. It is the joint responsibility of the researcher and the
manager to choose the most productive project.

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1.4.4. Research Question:

Once the researcher has a clear statement of the management question, the researcher
and the manager must translate it into a research question. The research question must
be fact oriented and information gathering question. Management dilemmas can be
addressed by many different ways. Defining the research question reveal, the insight
and expertise of the manager. The manager should consider only reasonable
alternatives. The researcher is to be asked in the formation of the research question. If
he is not consulted with it the researcher cannot do much in the research. The
manager‟s direction to the researches is the most. The researcher is the integral part of
the decision-making environment. He/she assist the manager in evaluating which
courses of action should and can be researched.
The researcher has to assist the manager in formulating a research question that
fits the need to resolve the management dilemma. A research question is the
hypothesis of choice that best states the objective of the research study. It is a more
specific management question that must be answered. It may be more than one
question or just one. The necessary information to make the decision is provided by the
research process by answering the more specific question. The clearly stated research
question makes it possible to deduce the essential sub-questions that guide the project
planning. However, if the research question is somewhat or very poorly defined, the
researcher will need further exploration and question revision to refine the original
question and generate the material for constructing investigative questions.

1.4.5. Investigation Question:

After selecting the research question, the researcher has to think on more specific level
i.e., investigation questions. These questions reveal the specific pieces of information
that the manager feels he/she needs to know to answer the research question.
Investigation questions are questions that the researcher must answer to satisfactorily
arrive at a conclusion about the research question. To formulate investigation
questions, the researcher takes a general research question and breaks it into more
specific questions about which to gather data. This breaking process can continue down
through several levels of increasing specificity, Investigation questions guide the
development of the research design. So, they should be included in the research
proposal. They are the foundation for creating the research data collection instrument.
Example: In case of a bank having stagnated profitability the chairman of the bank has
to improve the profit picture of the bank. The researcher working on this project
develops two major investigation questions for studying the market with several sub-
questions under each. The questions provide insight into the lack of deposit growth.
1) What is the Public’s Position Regarding Financial Services and their use? :
a) What specific financial services are used?

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b) How attractive are various services?
c) What bank-specific and environmental factors influence a person‟s use of a
particular service?
2) What is the Bank’s Competitive Position?
a) What are geographic patterns of our customers and of our competitors
customers?
b) What demographic differences are revealed among our customers and those of
our competitors?
c) What words or phrases does the public (both customers and non-customers)
associate with the bank? With bank‟s competitors?
d) How aware is the public of the bank‟s promotional efforts?
e) How does growth in services compare among competiting institutions?

1.4.6. Measurement Issues/Questions:

After completing the project planning activities and pilot testing for refinement, the
measurement questions are to be formulated. There are two types of measurement
questions. They are as follows:
1) Predesigned Measurement Questions :
These questions have been formulated and tested by previous researchers and
they are recorded in the literature. They may be applied literally or be adopted for
the project at hand. Some studies lend themselves to the use of these readily
available measurement devices. This provides enhanced validity. They can reduce
the cost of the project.
2) Custom Designed Questions:
The measurement questions should be custom tailored to the investigative
questions. The resources for this task will be the collective insights from all the
activities in the research process completed to this point. These custom designed
questions will be refined during pilot testing of the data collection instruments. In
survey, measurement questions are the questions we actually ask the respondents.
They appear on the questionnaire. In an observation study, measurement questions
are the observations researchers must record about each subject studied.

1.5. Research Proposal:

The research proposal is a planning document that outlines thinking about a research
problem and describes what is to be studied and how. The thesis writing is a
demanding project for which you need to plan. Without proper planning, it is very likely
that reading will lack direction, your writing will lack focus and data collection will run
into major problems. Of course, having a research proposal is no guarantee that one
will avoid these dangers, but having a clear proposal will certainly minimise wasted
time.

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1.5.1. Meaning:
A research proposal is a document written by a researcher that provides a detailed
description of the proposed program. It is like an outline of the entire research process
that gives a reader a summary of the information discussed in a project. Research
proposals are written for various reasons, such as requesting a budget (grant) for the
research they describe, certification requirements for research (as from an institutional
review board committee if the experiment is to be done on human beings or animals
protected by animal rights laws), as a task in tertiary education (e.g., before performing
research for a dissertation) or as a condition for employment at a research institution
(which usually requires sponsor-approved research proposals).

1.5.2. Elements of Research Proposal /Drafting of Research Proposal:

The research proposal is a carefully crafted piece of work. A research proposal is
prepared to addresses a particular project: academic or scientific research. It is also a
very useful foundation from which researcher develop ideas and arguments. Because of
this research proposal researcher may get full assistance in planning his work and
study. A good proposal has some elements and each is important in an effective
presentation. The drafting of research proposal is a tedious process which includes
various sections. The specific format and content of the elements may vary, depending
on requirements in the solicitation or announcement. The outline/ elements for research
proposal are given below:
1) Title of Topic of the Research Proposal:
This is the most essential representation of a research proposal as it describes
accurately the content of research and in away, it delimits the scope of the study. It
is recommended that it should be clear and precise and not very long.
2) Background to the Study:
The choice of a specific subject for research begins in its wider context, comprising
a variety of issues. This background (or context) helps to understand the specific
problems addressed by the researcher. The various elements considered at this
stage should be related among them to show how they lead to the problem that is
going to be isolated and treated by the researcher.
3) Statement of the Problem:
Against the above background the research isolates the problem that he/she finds
to be particularly crucial and needs to be looked into. Isolating the problem entails
stating it in clear and specific terms, as much as possible at this initial stage. This
delimitation helps the researcher to manage and deal with it effectively. Stating the
problem of study could be said to involve stating "how things are" and "how they
should be". Or simply, "the situation is this or that and yet it ought to be like this or
that."

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4) Scope of Study (Time /Space or Geography or Disciplinary):
The scope of the study refers to the boundaries or limits within which the study
needs to be kept. The reasons for such limits may be geographical, historical,
ideological, person or any other. The researcher focuses on the precise issue
he/she intends to consider. This helps the researcher to focus and exhaustive.
5) Definition of Key Terms:
In most cases, there are main terms related to the study that require to be specified
or clarified in order to provide a correct understanding of the study on the part of the
reader. These terms need to be defined precisely and concisely and should not be
necessarily a dictionary definitions but a researcher's definition; the way he or she
understands it.
6) Purpose/Aim/Objective of the Study:
The purpose or objectives describe the final target that one foresees to reach in
one's study. In a number of cases there is a general objective that entails smaller
objectives, called specific objectives. They also need to be stated clearly and
precisely.
7) Review of Literature:
The researcher review a sample list of literally sources closely related to the
research topic. This list of sources does not have to be exhaustive, but should be
adequate to demonstrate the existing gaps or problems. For each source, the
researcher briefly mentions and relates the major ideas to the problem, identifies or
highlights the gap /lacuna and states what one intends to add. This is crucial to the
authenticity of the research because it points to the novelty of the contribution of the
researcher vis-à-vis the contribution of the reviewed sources.
8) Hypothesis/Major Assumptions/Research Questions:
A researcher always posits a possible solution(s) to the problem envisaged and this
is called hypothesis for quantitative researchers. A hypothesis is a provisional
supposition put forth to account for known facts and to serve as a starting-point for
further investigation by which it may be proved or disapproved. Hence, a hypothesis
is an assumption of causality, a proposed interconnection among phenomena, a
tentative solution to be verified by the researcher's investigation. In a single study,
one can have a number of hypotheses, although it may be easier to have one.
9) Theoretical/Conceptual Framework:
In nearly all studies, there are grand theories or ideas which act as an internal
structure of the study. This structure gives the study a "logical frame" or a logical
explanation, particularly because, most studies are only additional to the already
existing body of knowledge and not the first ones. Therefore, every study is
depending on previous studies whose ideas are already known. These ideas,
especialy if they have been significant and have had extensive influence in their
domains, serve to support the fresh owns. Moreover, every study relates to theory,

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 Foundations of Research
either to negate it or confirming it to improve upon it. Whereas, the theoretical
framework tends to refer to the theoretical critique with a view to identifying the most
appropriate to one's study, the conceptual framework tends to refer to the
diagrammatic presentation to the logical flow of the ideas presented in the
dissertation.
10) Research Methodology (Methods, Design, Instruments, etc):
Under this section the researcher precisely explains the step he/she intends to
follow to accomplish the research. The description of one's methodology should not
be so generic as to apply to any research it should be fairly specific, showing
particularly how a researcher is going to handle each stage and area. In the case of
doctoral research, it is expected that the research is elaborate.
This section is crucial to the study, because the objectivity or believability of the
results should depend on the results.
11) Anticipated Constraints (if any):
Research activity may be affected by different problems which could be either
political or financial or security or ethical or lack of relevant sources. These
problems may undermine the work-plan or even the objectivity of the results of the
research. Some problems may be superfluous and coincidental and may not be
mentioned, but those seem to have the potential to affect the believability of the
research should be mentioned. Also, when carrying out research, it is important that
the researcher respects other human beings. For instance, human beings cannot
and should not be used as guinea pigs. Besides, they should, with informed consent
give information, much as bribery should be avoided. Above all, the researcher
should be honest and use objective methods to arrive at the desired results.
Otherwise, it not respected, ethical consequences have a potential of affecting the
researcher itself and the people for whom it is supposed to serve as well as those
doing research.
12) Documentation: Footnotes/Endnotes/In-text:
The research proposal has notes grouped together at the end of it (i.e., endnotes),
while, it is recommended that in the dissertation the notes should be at the foot of
each page (i.e., footnotes). Precise presentation of footnotes which may include
references is a good indicator of the researcher's believability and commitment to a
scientific approach.
13) References/Bibliography:
The bibliography of the proposal should not be long but, sufficiently indicative of the
sources the researcher is going to consult. However, for the dissertation, only
references and not bibliography are required. References are the list of sources,
that have been specifically cited or referred to in the dissertation and it needs to be
more substantive.

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14) Work Plan:
The work plan shows the specific time which specific tasks are to be completed (or
time framework). It could be shown in terms of weeks or months or even days. For
most funded researchers, a work plan is a must because they want to know how far
they can go and for busy people working with the researcher like supervisors, they
want to know how the researcher is likely to proceed, so that can also plan
accordingly. It is also important to set targets because they propel one's pace.
15) Budget Estimate:
These are planned costs of the research although they rarely refer to the income. It
is important that these estimates are realistic because, apart from suggesting the
value of the research, they may be easily supported by the donor if he/she finds the
research interesting.
16) Appendices (authority letters, letters to respondents, interview guide,
questionnaires, indexes, Word list, etc):
In case the researcher plans to use questionnaires, he/she needs to attach a
sample here. Likewise, any other item that does not fit under the above topic and
that needs to be mentioned should find its place here.

1.5.3. Evaluating a Research Proposal:

A researcher is expected to submit (and present sometime) to the research proposal to
experts for review and criticism. Following is a checklist of questions given to evaluate
the research plan:
1) Theme:
a) What is the core idea around which the investigation is organised?
b) Is the central theme stated clearly and explicitly? Is the problem clearly stated?
c) Is the central theme stated early in the proposal and then carried through in
content of the proposal?
d) What is the relationship of the theme with other research findings and theory?
2) Simplicity, Clarity and Logical Consistency:
a) Is the proposal written as simply and clearly as possible?
b) Can the question hypothesis be answered on an empirical basis?
c) Are the variables under investigation (or as stated in questions1 hypothesis)
defined in observable and measurable terms?
d) Are the statements of hypotheses supported by literature review?
e) Are the hypotheses relevant?
f) Are the hypotheses meaningful? In other words, ask the possible findings
research likely to make a difference that counts in terms of theory, other report
or any physical issue?
3) Strategy of Investigation:
a) Has the researcher chosen an appropriate overall strategy?
b) Is the method a clear cut and logical extension of the central theme?

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 Foundations of Research
4) The Population and the Sample:
a) What is the population of subject sampled?
b) Are the pertinent characteristics of the population clearly stated?
c) Has the researcher described the sampling procedure?
d) Does the researcher show adequate awareness of the limits of generalisations
in his/her research, based on his plan sampling procedure?
e) Is the sample adequate in size and clearly described?
5) Ethical Consideration:
a) Is the procedure ethical?
b) Are plans made to maintain confidentiality and anonymity and to obtain consent
from the participants?
6) Appropriateness of Experimental Design (Only if Experimental Design is
used):
a) Has the researcher chosen an effective design within the practical limits of the
investigation?
b) Is the treatment variable 'planned and validated?
c) Is the feasibility tested through pilot study?
7) Reliability and Validity of Measuring Instrument:
a) Are the measuring instruments appropriate for the data collection?
b) Is the validity established?
c) How is reliability established?
d) Is the precisions of the measurement procedures consisted with the intent of the
research?
e) What is the evidence of validity of the instrument?
8) Appropriateness of Statistical Description and Analysis:
a) Does the plan give the plan for statistical analysis?
b) Is the statistical description appropriate in terms of objectives, hypothesis, size
of the sample and type of data?

   

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 Review Questions 

Q.1. What do you mean by „research‟? Explain its purpose and characteristics.
Q.2. Explain various types of research in detail.
Q.3. Discuss the importance of research in today business world.
Q.4. Define the term „Business Research‟. Why business Research is needed ?
Q.5. Discuss in detail the research process.
Q.6. What are the qualities of a good research?
Q.7. Give a detailed view on research applications in functional areas of business.
Q.8. What are the various sources of information in business research?
Q.9. Explain emerging trends in business research.
Q.10.What are the various characteristics of scientific study? Why it is needed?
Q.11.Explain the "Organisational behaviour is the individual actions of individuals".
Q.12.Explain formulation of research problem in detail.
Q.13.Discuss the drafting and evaluation of research proposal in detail.
Q.14.Write Short Notes on Following:
1) Research.
2) Descriptive Research.
3) Causal Research.
4) Conceptual Research.
5) Measurement Issues/Questions.
6) Investigation Question.
7) Research Question.

   

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 U
N
I 2 Research Design
T

2.1. Research Design

2.2. Types of Research Design
2.3. Hypothesis

Introduction:
Research is the study of materials, sources and data in order to get conclusions.
Getting the research design right is the first step towards organised research, which is
more likely to be good research. The research design provides the structure of the
research and links, all of the elements of the research together. It provides the
researcher the opportunity to carefully consider the research and to plan the way in
which they will approach the research.

2.1. Research Design:

A researcher attempting to solve his/her problem should necessarily prepare a plan
which will help him/her to attain his ultimate motto. This plan is nothing but a research
design. It is a plan for the collection and analysis of data. It is a tentative plan which
undergoes many modifications as the study progresses. It presents a series of guide
posts to enable the researcher to progress in the right direction.

2.1.1. Meaning:
A research design is a framework or blueprint for conducting the research project. It
details the procedures necessary for obtaining the information needed to structure or
solve research problems. The research design is a comprehensive master plan of the
research study to be undertaken, giving a general statement of the methods to be used.
The function of a research design is to ensure that requisite data in accordance with the
problem at hand is collected accurately and economically.

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M. B. A. (Sem. – I) Business Research Methods
Simply stated, it is the framework, a blueprint for the research study which guides the
collection and analysis of data. The research design, depending upon the needs of the
researcher may be a very detailed statement or only furnish the minimum information
required for planning the research project. Research design is a plan, structure and
strategy of investigation. Research design is a plan of activities that in the final analysis
would constitute a research study. It refers to the methodology used for conducting the
research investigation. It is a process of making a decision before the situation arises in
which the decision has to be carried out. It is the blueprint of the detailed procedure of
testing the hypothesis and analysis of the obtained data. The research design in a way
tells us what observations to make, how to make them and how to analyse the
quantitative representations of the observations.

2.1.2. Definitions:
Following are the definitions of the research design:
1) Pauline Y. Young:
"A research design is the logical and systematic planning and directing a price of
research."
2) Selltiz:
"A research design is the arrangement of conditions for collection and analysis of
data in a manner that aim to combine relevance to the research purpose with
economy in procedure."
3) Matheson:
"A research design is a basic plan for research, including the assignment of subjects
to the levels of the independent variable and the manipulation of the independent
variable."
4) Kerlinger:
"Research design is the plan, structure and strategy of investigation conceived so
as to obtain answers to research questions and to control variance."

2.1.3. Features of Good Research Design:

Research design is the basis of the whole research study. It should be formulated
properly. According to K. R. Chandra, a good research design should satisfy the four
conditions which are objectivity, reliability, validity and generalisation.
1) Objectivity:
The objectivity of the findings pertains to the methods of collection of data and
scoring of the responses. Research design should permit the use of measuring
instruments which are fairly objective in which every observer seeing a performance
arrives at precisely the same report. This ensures the objectivity of the collected
data which will be used for the analysis.

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 Research Design
2) Reliability:
Reliability refers to consistency throughout the series of measurements. If a
respondent gives a response to a particular item, he/she is expected to give the
same response to that item, whenever he/she is asked subsequently. The
investigator should frame his/her items in such a way that the respondent gives only
one genuine response. There are different methods in determining the reliability of
responses given out by a respondent. Some of these methods are using „check
items‟, administering the same test repeatedly, etc.
3) Validity:
Any measuring instrument is said to be valid, when it measures what it purports to
measure.
Example: An intelligence test which is constructed for measuring, intelligence
should measure only intelligence and nothing else. There are a good number of
procedures for establishing the validity of text.
4) Generalisation:
A well-planned research design has to answer the problem of generalisation of the
findings of the present study. That is, how best the data collected from a sample can
be utilised for drawing certain generalisations, applicable to a larger group from
which the sample is drawn. A good research design should ensure that the
measuring instrument can yield objective, reliable and valid data and the population
is defined in unequivocal term. The requisite size of a sample is collected by using
the most appropriate technique of sample selection and the appropriate statistical
analysis has been employed. It should also ensure the finding of the present study
that can be generalised without being contaminated by the errors of measurements
or sampling errors.
5) Theory Base:
Good research strategies reflect the theories which are being investigated. Where
specific theoretical expectations can be hypothesised these are incorporated into
the design.
Example: Where theory predicts a specific treatment effect on one measure, but not
on another, the inclusion of both in the design improves discriminate validity and
demonstrates the predictive power of the theory.
6) Situational:
Good research designs reflect the settings of the investigation. This was illustrated
above where a particular need of teachers and administrators was explicitly
addressed in the design strategy. Similarly, intergroup rivalry, demoralisation and
competition might be accessed through the use of additional comparison groups
who are not in direct contact with the original group.
7) Feasible:
Good designs can be implemented. The sequence and timing of events are carefully
thought out.

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M. B. A. (Sem. – I) Business Research Methods
Potential problems in measurement, adherence to assignment, database
construction and the like, are anticipated. As and, when needed, additional groups
or measurements are included in the design to explicitly correct for such problems.
8) Redundant:
Good research designs have some flexibility built into them. Often, this flexibility
results from duplication of essential design features.
Example: Multiple replication of a treatment helps to insure that the failure to
implement the treatment in one setting will not invalidate the entire study.
9) Efficient:
Good designs strike a balance between redundancy and the tendency to
overdesign. Where it is reasonable, other, less costly, strategies for ruling out
potential threats to validity are utilised.

2.1.4. Uses of Good Research Design:

The uses of good research design can be explained with the following points :
1) Provides Information:
The purpose of any research design is to provide a maximum amount of information
relevant to the problem under investigation at a minimum cost.
2) Answers the Research Questions:
Research design answers to the research questions as objectivity, validity and
economically as it is possible. The research problems are usually epitomised by the
hypotheses. A research design suggests to the researcher how to collect data for
testing these hypotheses, which variables should be treated as variables, what
methods of manipulation will be more adequate in a particular context, what types of
statistical analyses should be done and finally a possible answer to the research
problems.
3) Stands for Advanced Planning:
Research design stands for advanced planning of the research process keeping in
view the objective of the research and the availability of staff, money and time. It has
a great bearing on the reliability of the results arrived at and as such constitutes the
firm foundation of the entire edifice of the research work.
4) Helps the Researchers:
The design helps the researcher to organise his/her ideas in a form whereby, it will
be possible for him to look for flaws and inadequacies. Such a design can even be
given to others for their comments and critical evaluation. In the absence of such a
course of action, it will be difficult for the critic to provide a comprehensive review of
the proposed study.
5) Control Mechanism:
A research design also called as a control mechanism. In other words, it enables the
researcher to control unwanted variances.

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 Research Design

2.1.5. Steps in a Research Design:

Steps in a research design can be given as follows:
1) Review of Earlier Literature:
Reviewing of the literature on the area of research is a preliminary step before
attempting to plan the study. It is essential to review all the relevant material
connected with the problem chosen. It is necessary to show how the problem under
study relates to previous research studies. It is also equally important to show how
his/her work differs with the existing literature. After going through the concerned
works, one will get an insight into the problem and thus, will be able to formulate a
correct plan for his/her future investigation.
2) Sources of Information to be Tapped:
The researcher has to tap various sources of information. The sources are divided
into documentary and field sources. Field sources include living persons who have a
fund of knowledge. These persons are regarded as personal sources or direct
sources. Documentary sources of information are those which are contained in the
published and unpublished documents, reports, statistics, manuscripts, letters and
diaries and so on.
3) Development of Bibliography:
As soon as the consultation of available source has begun, the development of
bibliography should be undertaken. Each reference should appear on a separate
card or sheet with last name of the author first his initials or given name following
and then the title of the reference, publisher's name and the date of publication.
4) Nature of Study:
The next step in formulating research design is to ascertain the nature of study,
whether it is statistical study, case study or decided. Since, research study is
complex, the specific nature of study should be determined early and precisely.
5) Objectives of Study:
The objectives of the research study should be compiled in clear cut terms. The
objectives, of course differ with the nature of studies and goals to be attained. Some
research studies aim to gather descriptive data or explanatory data or data from
which theoretical constructs could be deduced or data which promote administrative
changes or comparisons. Sometimes hypotheses may be formulated and tested.
These should be closely and clearly stated and the relationship to previous research
made clear.
6) Time Dimension of the Study:
In the case of his/her historical studies, it is necessary to determine the period to be
encompassed, so that exploration of the problem will be made easier and clear. This
will help the researcher to attribute the conclusions to the particular period in
question.

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M. B. A. (Sem. – I) Business Research Methods
7) Dimensions of Study:
It is necessary to make certain assumptions in every study. They should be stated
clearly. Sometimes, certain limitations may have to be imposed while making the
study. The limits of the proposed investigation should be clearly mentioned in the
research design. New concepts should be defined. Precision in research can be
obtained with greater care by defining even the common words in usage. It has also
realised that, dictionary definitions do not suffice for scientific studies. The
interpretation of the findings of a study depends in part on the way the terms were
originaly defined.
8) The Basis for Selecting Data:
The factors of time and cost are usualy important considerations in research. It is
more economical and efficient to base studies on samples rather than to study the
universe. Instead of studying every case which might be included in an investigation
logicaly only a small portion is selected for analysis. From this analysis, useful
conclusions which are equally applicable to the universe can be drawn. Great care
is to be taken in drawing the sample from the universe. The sample should be
closely representative of the universe. The size of the sample has no guarantee of
its representative. Relatively small samples properly selected may be much more
reliable than large samples which are improperly selected.
9) Techniques of Study:
The next stage in the preparation of a research design is the determination of
suitable techniques for collecting the necessary data. The techniques to be used will
be differing on the basis of the nature of study. If the study requires close attention
of the researcher, the observation method will be used. If the subject matter for the
study is scattered over a wide area then "questionnaires" may be used for collecting
such information. If the subject matter to be collected is spread in a limited area,
then the schedule and interview method may be used for collecting the data.
Sometimes these techniques may be used collectively in the collection of data
relating to the study.
10) Establish the Reliability and Validity of Test Instruments:
It is necessary in empirical studies, to establish the reliability and validity of test
instruments. It is of crucial importance in the study, too, to evaluate the data
collected.
11) Chapter Scheme:
The preparation of a chapter outline is the last step in drafting of research proposal.
It is a useful first step in writing the rough drafts. Some of the headings may need to
be changed as the investigation progresses. The final form is determined by the
nature of the study itself and by the conventions. The number of chapters that the
study contains and name of each chapter must be mentioned. The basis for chapter
scheme is the objectives of the research problem.

2. 6
 Research Design
The chapter arrangement must include main finding prominently in independent
chapters. The first chapter is usually an introductory one and the last chapter is for
the findings, conclusions and suggestions. In between is the body of the research
report which varies according to the study. Normally an optimum number of five to
six will be sufficient.

2.1.6. Approaches of Research Design:

The goal of the research process is to produce new knowledge or deep understanding
of a topic or issue. It is the overall plan for connecting the conceptual research problems
to the pertinent (and achievable) empirical research. They go on to comment that, since
empirical research is undertaken to answer research questions, the appropriate
research design needs to be effective in producing the required answers within the
constraints placed on the researcher. Furthermore, they argue, since the choice of
research design influences subsequent research activities.
Example: What and how, data is to be collected, it is essential that the research
problem is to understand if errors and/or irrelevant design choices are to be avoided.
There are a different methods and approaches of research available for those in
positions within their company to perform research, but the major classification is:
a) Qualitative research design approach.
b) Quantitative research design approach.
Researchers choose qualitative or quantitative methods according to the nature of the
research topic they want to investigate and the research questions they aim to answer:
There are a lot of non-researchers that are in positions within companies who think that
qualitative and quantitative research go hand in hand, but that just is not the case.
A) Quantitative Research Approach:
Quantitative research is the systematic and scientific investigation of quantitative
properties and phenomena and their relationships. The objective of quantitative
research is to develop and employ mathematical models, theories and hypotheses
pertaining for natural phenomena. The process of measurement is central to
quantitative research, because it provides the fundamental connection between
empirical observation and mathematical expression of quantitative relationships. It
thus emphasises the analysis of causal relationships between variables (rather than
the processes). A fundamental principle in quantitative research is that correlation
which does not imply causation. This principle follows from the fact that it is always
possible for a spurious relationship to exist for variables between which covariance
is found in some degree. Proponents of such studies claim that, quantitative
research is undertaken in a value free framework.
a) Classification of Quantitative Approach:
Quantitative approach can be further sub-classified into the following:

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M. B. A. (Sem. – I) Business Research Methods
1) Inferential Approach:
In inferential approach, database is established through survey method and
inference is drawn about characteristics or relationship of variables.
2) Experimental Approach:
In experimental approach, greater control is exercised over research
environment. Some variables are manipulated to observe their effect on
other variables.
3) Simulation Approach:
Simulation approach refers to the operation of a numerical model that
represents the structure of a dynamic process. It involves the construction of
and artificial environment in which relevant information data can be
generated. Given the values of initial conditions, parameters and exogenous
variables, a simulation is run to represent the behaviour of the process over
time.

b) Advantages of Quantitative Research Approach:

Following are the advantages of the advantages of quantitative research
approach:
1) Audience Segmentation:
Quantitative research is useful for conducting audience segmentation. It is
done by dividing the population into groups whose members are similar to
each other and distinct from other groups. Quantitative research is used to
estimate the size of an audience segment as a follow-up step to a qualitative
study to quantify results obtained in a qualitative study and to verify data
obtained from qualitative study.
2) Useful to Quantify Opinions:
Quantitative research is also useful to quantify opinions, attitudes and
behaviours and find out how the whole population feels about a certain
issue.
3) Provide Descriptive Information:
Quantitative research is suitable to explain some phenomena. For instance,
'What factors predict the general English proficiency of the fourth year
students?' or 'What factors are related to changes in student English
achievement over time?' This kind of question can be studied successfully
using quantitative methods and many statistical techniques have been
developed to make us predict scores on one factor or variable.
4) Clarify Relationships:
The final activity for which quantitative research is especially suited is the
testing of hypotheses. We might want to explain something.
Example: Whether there is a relationship between student‟s achievement
and their self esteem and social background.

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 Research Design
c) Disadvantages of Quantitative of Research Approach:
Following are the disadvantages of the quantitative research approaches:
1) Problem In Depth Exploration:
The first situation where quantitative research will fail is when we want to
explore a problem in depth. Quantitative research is good at providing
information in breadth from a large number of units. But, when we want to
explore a problem or concept in depth, quantitative methods are too shallow.
To get really under the skin of a phenomenon, we need to go for
ethnographic methods, interviews, in-depth case studies and other
qualitative techniques.
2) Problem In Hypotheses Development:
As quantitative research is well-suited for the testing of theories and
hypotheses, quantitative methods cannot do very well is to develop
hypotheses and theories. The hypotheses to be tested may come from a
review of the literature or theory, but can also be developed using
exploratory qualitative research.
3) Incomplete Information:
If issues to be studied are particularly complex, in-depth qualitative study (a
case study, for example) is more likely to pick up on this than a quantitative
study. This is partly because, there is a limit to how many variables can be
looked at in any one quantitative study and partly because in quantitative
research it is the researcher who defines the variables to be studied. In
qualitative research unexpected variables may emerge.

B) Qualitative Research Approach:

Qualitative research lays emphasis on the qualities of entities and processes
meaning that they are experimentally examined or measured. Stress is laid on the
socially constructed nature of reality, the intimate relationship between the research
and researched and situational constraints that shape the enquiry. It is
characterised by adherence to diverse array of orientations and strategies for
maximising the validity of trustworthiness of study procedures and results. It is thus
a type of empirical enquiry that entails purposive sampling for gathering data. Open-
ended interviews, observation in field, artifact studies, etc., are some of the methods
adopted in qualitative research. In epistemological terms, qualitative research is
identified with phenomenological and interpretative research. It deals with the
subjective assessment of attitudes, opinions and behaviour of respondents in the
field. Results are generated either in non-quantitative form or in a form which are
subjected to relatively less rigorous quantitative treatment. Various techniques like
group discussions, projective techniques, in-depth interviews etc., are used.

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M. B. A. (Sem. – I) Business Research Methods
a) Advantages of Qualitative Research Approach:
Following are the advantages of the qualitative research approach:
1) Less Expensive:
As qualitative research focuses on small groups, it can be less expensive
than quantitative research which may require large groups of participants or
expensive measurement tools.
2) Examine Social Process:
Qualitative research is especially effective for studying subtle nuances in
attitudes and behaviours and for examining social processes over time. The
main strength of this method, then, lies in the depth of understanding that it
allows. Rarely is field research challenged as being "superficial."
3) Flexible:
Another advantage of qualitative research is the flexibility it permits.
Researchers can modify their field research design at any time and as often
as they like. Further, one is always prepared to engage in field research,
whenever the occasion should arise, as there is little to no preparation
needed. You could not as easily initiate a survey or conduct an experiment in
this manner.
4) Understand Target Audience Perception:
Qualitative research can best be described as a way to understand the
target audience / customer base and the ideas behind very specific topics,
products or issues how the audiences relates to certain situations, scenarios
or products.
5) Provides Depth and Detail:
Looks deeper than analysing ranks and counts by recording attitudes,
feelings and behaviours.
6) Creates Openness:
Encouraging people to expand on their responses can open up new topic
areas not initially considered.
7) Simulates People's Individual Experiences:
A detailed picture can be built up about why people act in certain ways and
their feelings about these actions.
8) Attempts to Avoid Pre-judgments:
If used alongside quantitative data collection, it can explain why a particular
response was given.

b) Disadvantages of Qualitative of Research Approach:

Following are the disadvantages of the qualitative research approach:
1) Dependent on Skills of the Researcher:
Particularly in the case of conducting interviews, focus groups and
observation.

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 Research Design
2) Limited Usage:
Qualitative research methods collect data about what select group of
participants feel or think or how they behave. One can not necessarily use
this data to make assumptions beyond this specific group of participants.
3) Inconvenient Data Collection:
It is not a research method that conveniently allows for the collection of
statistical data. However this is only a disadvantage if research question also
requires statistical data. Adopting a mixed methods approach is one way of
overcoming this problem.
4) Inappropriate for Statistical Description:
Qualitative research is not an appropriate means for arriving at statistical
descriptions of large populations. Observing casual political discussions in
restaurants, for example, would not yield trustworthy estimates of future
voting behaviours of the total voting population.
5) Unreliability of Data are Possible:
Reliability can also be thought of as dependability. If one can make the same
measurement or observation again and again, one can get the same result?
In field research, since observations and interpretations are subjective and
personal, the researcher must take pains to address this and prevent their
personal opinions and feelings from biasing their results.
6) Usually Fewer People Studied:
Collection of qualitative data is generally more time consuming that
quantitative data collection and therefore unless time, staff and budget
allows that it is generally necessary to include a smaller sample size.
7) Less Easy to Generalise:
Because fewer people are generally studied it is not possible to generalise
results to that of the population. Usually, exact numbers are reported rather
than percentages.

C) Comparison of Qualitative and Quantitative Research Approach:

Comparison of Qualitative and Quantitative Research Approach are given below:
Basis Qualitative Research Quantitative Research
Goal or Aim The primary aim of a qualitative Quantitative research on the
of the research is to provide a other hand focuses more in
Research complete, detailed description counting and classifying
of the research topic. It is features and constructing
usually more exploratory in statistical models and figures
nature. to explain what is observed.
Usage Qualitative research is ideal for Quantitative research is highly
earlier phases of research recommended. quantitative

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M. B. A. (Sem. – I) Business Research Methods
projects while for the latter part research provides the
of the research project. researcher a clearer picture of
what to expect in his research
compared to qualitative
research.
Data The researcher serves as the On the other hand,
Gathering primary data gathering Quantitative Research makes
Instrument instrument in qualitative use of tools such as
research. Examples of data- questionnaires, surveys,
gathering strategies used in measurements and other
Qualitative Research are equipment to collect numerical
individual in-depth interviews, or measurable data.
structured and non- structured
interviews, focus groups,
narratives, content or
documentary analysis,
participant observation and
archival research.
Presentation The presentation of data in a However, if researcher is
of Data Qualitative Research is in the conducting a Quantitative
form of words (from interviews) Research, the most likely
and images (videos) or objects discussion appears in tables
(such as artifacts). If researcher containing data in the form of
is conducting a Qualitative numbers and statistics.
Research what will most likely
appear in his discussion are
figures in the form of graphs.
Approach Qualitative Research is In quantitative research,
primarily subjective in approach researchers tend to remain
as it seeks to understand objectively separated from the
human behaviour and reasons subject matter. This is
that govern such behaviour. because quantitative research
Researchers have the is objective in approach in the
tendency to become sense that it only seeks
subjectively immersed in the precise measurements and
subject matter in this type of analysis of target concepts to
research method. answer his inquiry.
Role of Researcher and their biases Researcher and their biases
Researcher may be known to participants in are not known to participants

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 Research Design
the study and participant in the study and participant
characteristics may be known characteristics are deliberately
to the researcher. hidden from the researcher
(double blind studies).
Time Time expenditure lighter on the Time expenditure heavier on
Expenditure planning end and heavier the planning phase and lighter
during the analysis phase. on the analysis phase.
Results Generalisable findings. General Particularistic findings. In-
understanding of respondent's depth understanding of
view-point. Researcher framed respondent's view-point.
results. respondent framed results.

2.2. Types of Research Design:

A research design is the framework or plan for a study used as a guide in collecting and
analysing of data. There are three basic types of research design are exploratory,
descriptive and causal (experimental). The names of the three types of research design
describe their purpose very well:
a) Exploratory.
b) Descriptive.
c) Experimentation.
The goal of exploratory research is to discover ideas and insights. Descriptive research
is usually concerned with describing a population with respect to important variables.
Causal research is used to establish cause-and-effect relationships between variables.
Experiments are commonly used in causal research designs because they are best
suited to determine cause and effect.

2.2.1. Exploratory Research Design:

Exploratory research is also called as formulative studies. These are the designs that
aim at gaining familiarity with a phenomenon or aim at achieving insights into the
phenomenon which deal with formulation of a more precise research problem or
developing a hypothesis. The studies represent earlier stage of science. From the
findings of these studies a new research problem is formulated or a new hypothesis is
developed or the existing study is tested more scientifically. For this reason, exploratory
study is said to be the primary stage of research. Usually, exploratory research designs
results, when one is confronted with a problem and he/she want to know why. For
instance, the sales of a company are stagnant or coming down; the sales manager
would be interesting in knowing why this is happening. This would be the starting point
for research. The sales manager would be anxious to find a solution for this.

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M. B. A. (Sem. – I) Business Research Methods
A) Concept of Exploratory Research Design:
Exploratory research may also be involved when perceived problem is much less
general. For instance, the research department may be requested to find why one
group of sales representatives is particularly unproductive or why certain market
segments are buying less than others. Exploratory research, therefore, much useful
to develop the most promising hypotheses. The objective of an exploratory study is
to final new hypothesis. So, flexibility and ingenuity is the characteristic of the
investigation.
B) Types of Exploratory Research Designs:
There are many techniques for investigating undefined research problems. Some of
the more popular methods of exploratory research include literature searches, depth
interviews, focus groups and case analyses. Several of them are popular qualitative
techniques. Qualitative techniques often provide researchers with preliminary
insights useful in developing ideas about how variables are related. Similarly,
qualitative research can help define constructs or variables and suggest items that
can be used to measure those constructs.
1) Literature Search:
One of the quickest and least costly ways to discover hypotheses is to conduct a
literature search. Almost all marketing research projects should start here. There
is an incredible amount of information available in libraries, through online
sources, in commercial data bases and so on. The literature search may involve
popular press (newspapers, magazines, etc.), trade literature, academic
literature or published statistics from research firms or governmental agencies,
such as the U.S. Census Bureau.
2) Depth Interviews:
It's important to start with a good literature search, but at some point one will
probably want to talk to people and ask questions. Depth interviews are used to
tap the knowledge and experience of those with information relevant to the
problem or opportunity at hand. Anyone with relevant information is a potential
candidate for a depth interview, including current customers, members of the
target market, executives and managers of the client organisation, sales
representatives, wholesalers, retailers and so on.
Example: A children's book publisher gained valuable information about a sales
decline by talking with librarians and school teachers who indicated that more
and more people were using library facilities presumably buying fewer books for
their children. A series of depth interviews can be very expensive. Well-trained
interviewers command high salaries data are collected from one respondent at a
time and if recorded, audio/video recordings must be transcribed, coded and
analysed. This technique, however, can yield important insights and more often
than not is well worth the effort.

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 Research Design
3) Focus Groups:
Focus group interviews are among the most often used techniques in marketing
research. In a focus group, a small number of individuals (e.g., 8-12) are
brought together to talk about some topic of interest to the focus group sponsor.
The discussion is directed by a moderator who is in the room with the focus
group participants, managers, ad agency representatives and/or others often
watch the session from outside the room via a two-way mirror or video link. The
moderator attempts to follow a rough outline of issues while simultaneously
having the comments made by each person considered in group discussion.
Participants are thus exposed to the ideas of others and can respond to those
ideas with their own. Group interaction is the key aspect that distinguishes focus
group interviews from depth interviews, which are conducted with one
respondent at a time. It is also the primary advantage of the focus group over
most other exploratory techniques. Because of their interactive nature, ideas
sometimes drop "out of the blue" during a focus group discussion.
4) Experience Surveys:
If management decides that an idea is worthwhile, the decision maker may
personally spend some time analysing the situation. In attempting to gain insight
into the problems at hand, researchers may discuss the concepts with top
executives and knowledgeable individuals, both inside and outside the
company, who have had personal experience in the field. This constitutes an
informal experience survey. People who are knowledgeable about the area to be
investigated often are willing to share their experiences with others (competitors
excluded, of course).
Example: A firm that is ready to launch a new product may discuss the general
nature of the product with some of its key retailers and wholesalers. Members of
the company's sales force also may be a valuable source of information. The
purpose of such discussions is to exhaust the information available from
relatively inexpensive sources before gathering expensive primary data. While
the interviews with knowledgeable individuals may reveal nothing conclusive,
they may help define the problem more formally.
5) Projective Techniques:
A projective technique is an indirect means of questioning that enables
respondents to project beliefs and feelings onto a third party, an inanimate
object or a task situation. Respondents are not required to provide answers in
any structured format. They are encouraged to describe a situation in their own
words with little prompting by the interviewer. Individuals are expected to
interpret the situation within the context of their own experiences, attitudes and
personalities and to express opinions and emotions that may be hidden from
others and possibly themselves. The most common projective techniques in

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M. B. A. (Sem. – I) Business Research Methods
marketing research are word association tests, sentence completion methods,
third-person techniques and thematic apperception tests. Projective techniques
seek to discover an individual's true attitudes, motivations, defensive reactions
and characteristic ways of responding.

C) Uses of Exploratory Research Designs:

The uses of exploratory research designs are explained below:
1) Evaluation of the Hypothesis:
This research design facilitates the evaluation of the already formulated
hypothesis is the prevailing situation. It is useful to conduct research for a
problem which has not been clearly defined.
2) Economical Way:
To find possible hypothesis the quickest and the most economic way for
researchers is to take advantage of the work of others and utilise their efforts. In
exploratory research the survey of secondary data is undertaken. The
researcher can get the ready data necessary for problem solution. It saves time,
money and energy of the researcher in collecting data.
3) Attracts the Researchers:
The exploratory research design attracts the researchers towards the issues that
are important from social point of view. It enables the researchers to understand
what is going on in the field of research chosen by them. This will further enable
them to formulate hypotheses for his inquiry.
4) Basis for Research:
Exploratory research design represents the earlier stage of science. It is from
the finding of these studies that a new research problem may be formulated or a
new hypothesis developed or the existing one tested more scientifically. It is the
initial step of problem finding.
5) Leads to Hypothesis:
One of the methods of exploratory study is analysis of insight stimulating. This
suggests hypotheses for research. It is particularly helpful 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 interested. Thus,
it leads to insights or hypotheses.

2.2.2. Descriptive Research Designs:

The descriptive research design enables researcher to describe a phenomenon under
investigation. It is used for fact finding with adequate interpretation. The methodology
involved in such design is mostly qualitative in nature. Exit polls conducted by different
agencies describing the voting pattern of electorate are the example of descriptive
research.

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 Research Design
Participant observation, personal documentation and unstructured interviewing are the
three approaches which enables researcher to record or analyse the behavioural
patterns. Descriptive research design follows random sampling method, structured
instruments for collection of data and a pre-planned design for analysis.

A) Concept of Descriptive Research Design:

Descriptive research studies are those studies which are concerned with describing
the characteristics of a particular individual or of a group. The purpose of descriptive
study is to describe accurately the characteristics of a group, community or a
people. The research design required for descriptive studies must be such, which
would minimise bias and maximise reliability.

B) Types of Descriptive Research Designs:

There are three types of descriptive research design. They are explained below:
1) Traditional Survey Design:
Survey research related to the study of distribution of and relationships among
characteristics of people or groups as they exist in their natural settings. Market
study can be done easily with this type of design. There are two types of survey
designs. They are as follows:
a) Static Group Comparison Designs:
They are commonly used in survey research to explainand interpret
relationships. It can be described with the help of the following notation:
B
A...........
B
Where,
A = a treatment, an independent variable, a cause
B = an observation, a dependent variable, an effect.
The dashed line separating the two observations indicates that subjects or
respondents were not randomly assigned the treatment, rather it was either
naturally or it was assigned for some reason. The design can also be
expressed in the form of a naturally occurring A with several levels as
follows:
A1 B1
A2 B2
The levels may be any attribute of the subjects.
b) Panel Design:
Panel design is frequently used to accomplish the time order criterion.
According to thus design, the researcher takes into account time and
changes overtime and collects data on the A‟s and B‟s at two or more
different times. The design can be indicated by notation as follows:

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M. B. A. (Sem. – I) Business Research Methods
Aa1 Aa2 Aa3 ... Aa2 Aa2B ... Aa3B
.....................................................................................................................
Ab1 Ab2 Ab3B ... Ab2 Ab3 ... Ab3B
Here, a and b represents the level of variable. A particular variable may have
more than two values. The numbers (i.e. 1, 2 or 3) represent the variable
identification thus, variables A1, A2 and A3 were measured during the first
interview A2 and A3 during the second interview and A3 during the third
interview.
2) Cross - Sectional, Pseudopanel Design:
This design involves variables representing phenomena which have taken place
over a period of time. It can be shown by the following notation:
a1 b1 c1 d1 e1 ....................
a2 b2 c2 d2 e2 ....................
a3 b3 c3 d3 e3 ....................
.............................................
.............................................
.............................................
an bn cn dn en ....................
Here, the horizontal dimension indicates the passage of time as visualised by
the researcher. Each a represents several values or labels. The variable lebelled
a took place earliest and almost at the same time „b‟ variable occurred later, „c‟
variable took place later still and so on.
3) Longitudinal Design:
Longitudinal studies are repeated over an extended period. The advantage of
this design is that it can track changes over time. In longitudinal studies of the
panel variety, the researcher may study the same people over time. In
marketing, panels are set upto report consumption data on a variety of products.
These data collected from national samples, provide a major data bank on
relative market share, consumer response to new products and new promotional
methods. Different subjects are used for each sequenced measurement.
Some types of information once collected cannot be collected a second time
from the same person without the risk of bias. The study of public awareness of
an advertising campaign over a six-month period would require different
samples for each measurement.

C) Uses of Descriptive Research Designs:

The uses of descriptive research designs are as follows:
1) Formulating the Objective of the Study:
In a descriptive design the objectives are formulated with sufficient precision that
ensures that, the data collected are relevant. If this is not done carefully, the
study may not provide the desired information.

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 Research Design
2) Method of Data Collection:
This design tells the techniques of gathering data. It decides the method by
which the data are to be collected. Several methods are available for this
purpose and the researcher may use one or more of these methods.
3) Sample Selection:
In most of the descriptive studies, the researcher takes out sample/samples and
then wishes to make statements about the population on the basis of the sample
analysis or analyses. The sample or samples are selected in a fashion that they
may yield accurate information with a minimum amount of research effort.
4) Structured Instruments:
Descriptive research design provides structured or well thought out instruments
for collection of data. To obtain data free from errors introduced by those
responsible for collecting them, it is necessary to supervise closely the staff of
field workers as they collect and record information. The descriptive design
provides for the same.
5) Pre-Planned Design for Analysis:
Descriptive design is pre-planned design for analysis. The processing and
analysing procedure is planned in detail before actual work is started this proves
economical in the sense that the researcher may avoid unnecessary labour such
as preparing tables for which he later finds he has no use or on the other hand,
re-doing some tables because he/she failed to include relevant data.

D) Advantages of Descriptive Research Design:

Following are advantages of descriptive research design:
1) The subject is observed in a completely natural and unchanged natural
environment. True experiments, whilst giving analysable data, often adversely
influence the normal behaviour of the subject.
2) It is often used as a precursor to more quantitative research designs with the
general overview giving some valuable pointers as to what variables are worth
testing quantitatively.
3) If the limitations are understood, they can be a useful tool in developing a
more focused study.
4) It can yield rich data that lead to important recommendations in practice.
5) It collects a large amount of data for detailed analysis.

2.2.3. Experimental Design:

The experimental studies are concerned with testing the casual hypothesis. Such
studies require procedures that will reduce bias, increase reliability and permit drawing
inferences about causality. Experiment meets these requirements, so these are known
as experimental research design.

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M. B. A. (Sem. – I) Business Research Methods
In experimental research design, some of the variables studies are manipulated. One
variable (independent) is manipulated and its effect on another variable (dependent) is
measured which can be varied or changed or that which changes or varies itself.
Example: Demand, supply, price, income etc. The variable which is manipulated by the
experimenter in some systematic way is independent variable. The dependent variable
is the variable which is expected to change as a result of the presence, absence or
magnitude of the independent variable.
The experimenter studies the effect through comparison with experiment and
without experiment. The design in the experimental research thus consists of two types
of groups: control and experimental. Control group is not exposed to experimental
variable. Experimental group is exposed to experimental variable. For example study of
the effects of non-monetary motivation on the productivity of labour in a xyz company.
A) Concept of Cause:
Causality (also referred to as causation) is the relation between an event (the
cause) and a second event (the effect), where the second event is understood as a
consequence of the first. In common usage, causality is also the relation between a
set of factors (causes) and a phenomenon (the effect). Anything that affects an
effect is a factor of that effect. A direct factor is a factor that affects an effect directly,
that is, without any intervening factors. (Intervening factors are sometimes called
"intermediate factors".) The connection between a cause(s) and an effect in this way
can also be referred to as a causal nexus. Though the causes and effects are
typically related to changes or events, candidates include objects, processes,
properties, variables, facts and states of affairs characterising the causal relation
can be the subject of much debate. The philosophical treatment on the subject of
causality extends over millennia. In the Western philosophical tradition, discussion
stretches back at least to Aristotle and the topic remains a staple in contemporary
philosophy.

B) Causal Relationships:
Causal analysis is necessary in research study. Here, our concern in causal
analysis is with how one variable affects or is responsible for changes in another
variable. The stricter interpretation of causation reveals that, some external factor
produces a change in the dependent variable. People can find in business research,
that the cause-effect relationship is less explicit. It is interested to understand,
explain, predict and control relationship between variables than to discern causes.
When people think that is relationship between two variables, there are three
possibilities of such relationship. These are explained below:
Possibilities of Casual Relationships:
1) Symmetrical Relationship:
A symmetrical relationship is one in which two variables fluctuate together, but
we assume the changes in neither variable are due to changes in the other.

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 Research Design
Symmetrical conditions are most often found when two variables are alternative
indicators of another cause or independent variable. We might conclude that a
correlation between low work attendance and active participation in a company
camping club is the result of another factor, such as a lifestyle preference.
2) Reciprocal Relationship:
A reciprocal relationship exists when two variables mutually influence or
reinforce each other. This could occur if the reading of an advertisement leads to
the use of a brand of product. The usage, in turn, sensitises the person to notice
and read more of the advertising of that particular brand.
3) Asymmetrical Relationship:
Most research analysts look for asymmetrical relationships. With these we
postulate that changes in one variable (the independent variable) are
responsible for changes in another variable (the dependent variable). The
identification of IV and DV often obvious, but sometimes the choice is not clear.
There are four types of asymmetrical relationships. They are as follows:
a) Stimulus – response.
b) Property – disposition.
c) Disposition – behaviour.
d) Property – behaviour.
Experiments usually involve stimulus response relationships. Property-
disposition relationships are often studied in business and social science
research. Much of ex post facto research involves relationship between
properties, dispositions and behaviour.

C) Types of Experimental Designs:

Kiader classified experimental designs in four categories. They are explained below:
1) The Randomise Two Group Design - The Notation:
The randomised two group design can be expressed by the following notation:

Here, R stands for randomised assignment of subjects to the treatment

conditions. Thus, in this design, the subjects are randomly assigned to the
experimental treatment group A and to a no-treatment comparison group not-A
whether, a group is to be experimental or control is decided randomly.
Randomised treatment has very little chance of failure.
The Matched Subjects Two Group Design:
The two group design can also be used with matched subjects and thus,
designated as the matched subjects two group designs. It can be shown as
follows:

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M. B. A. (Sem. – I) Business Research Methods

Here, instead of assigning subjects randomly, they are matched on one or more
attributes. Members of each pair are assigned to the two groups randomly
2) Before-After Two Group Design The Notation:
Before-After two group design embodies additional observation (pretests) of the
dependent variable before the experimental treatment. It can be described by
the following notation:

Schultz used this variant of before-after design in his study of the efforts of
control among retirement home residents. The design can be expressed by the
following notation:

Both the pre-tests (odd numbered Bs) and post-tests [Even-numbered Bs]
embodied several dependent variables including health status, psychological
well-being and activities. The treatments included variations of one independent
variable which may have multiple values. (A1, A2, A3 and A4) called “Degree of
Control over Visitors.”
3) Solomon Four Group Design - The Notation:
Solomon four group design combines randomised two group and before-after
two group designs described above. They can be helpful in testing declisively,
whether the post-test differences were caused by the treatment, the pretest or a
mixture of treatment and pretest.
The Notation:
This design can be expressed by the following notation:

4) Factorial Design:
Factorial design involves two or more independent variables and contains every
possible combination of these variables or factors. Hence, it is called factorial
design.

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 Research Design
Because of two or more independent variables or factors and more than two
values of each factor, the mushrooms. Indeed each additional variable or value
tends to double the number of conditions.
The Notation:
The factorial design can be expressed by the following notation:

Here, A1 is one independent variable while A2 is another, B1, B2, B3 and B4 are
the measures of the dependent variable.
Experimental designs effectively answer research questions about causes
and effects enabling the researcher to exercise control on what happens to
whom through random assignment of people and other units to different
conditions and measurement of effect of this treatment.

D) Types of Variables:
Scientists use an experiment to search for cause and effect relationships in nature.
In other words, they design an experiment, so that, changes to one item cause
something else to vary in a predictable way. These changing quantities are called
variables. A variable is any factor, trait or condition that can exist in differing
amounts or types. An experiment usually has three kinds of variables: independent,
dependent, concomitant, extraneous, controlled group, treatment etc.
1) Independent Variable:
Variable are given a special names that only apply to experimental
investigations. One is called the dependent variable and the other the
independent variable. In an experiment, the researcher is looking for the
possible effect on the dependent variable that might be caused by changing the
independent variable. An independent variable is a factor that is manipulated in
an experiment. The experimenter controls whether or not subjects are exposed
to the independent variable. It is presumed cause in an experimental study. All
other variables that may impact the dependent variable are controlled. The
values of the independent variable are under experimenter control. Strictly
speaking, "independent variable" should not be used, when writing about non
experimental designs.
2) Dependent Variable:
The dependent variable is measured to determine if the manipulation of the
independent variable had any effect. It is the presumed effect in an
experimental study. The values of dependent variable depend upon another
variable, the independent variable.

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M. B. A. (Sem. – I) Business Research Methods
Strictly speaking, "dependent variable" should not be used when writing about
non experimental designs.
Example: To test a hypothesis that eating carrots improves vision, the
experimenter would manipulate whether or not subjects ate carrots. Thus,
eating carrots is the independent variable. Each subject's vision would be tested
to see if carrot eating had any effect. Thus, vision is the dependent variable.
The subjects assigned to eat carrots are in the experimental group, whereas
subjects not eating carrots are in the control group
3) Concomitant Variable:
By concomitant variation is meant going together. If and when two variables X
and Y vary together or occur together assume some casual relationship or at
least some association between the two. When concomitant relationship exists
among any two events or characteristics then with variation in one we will find
variation in the other.
Example: Height and weight can be said to vary together. This means that with
increase in height there will be increase in weight and with decrease in height
there will be decrease in weight. When this type of variation is found in
maximum number of observations we can claim that the evidence of
concomitant variation has been satisfied.
Social Scientists have to find out such type of variation betweenany pair of
social events for example, between social status and delinquency rate or
between population density and delinquency rate. A study of delinquency rate of
different towns from Bihar and the socio-economic background of the deliquents
might reveal that the delinquency rate was higher in more densely populated
towns and that it was higher among the people from lower economic status.
From this one can infer that lower economic condition is a possible cause of
delinquency and that population densely contributes to it.
Evidence of concomitant variation is of two types. They are as follows:
a) Positive:
People can call a relationship between A and B as a positive type of
relationship when value of B increases with increase in the value of A or
decreases with decreasing the value of A.
b) Negative:
In negative type of concomitant relation, when the value of independent
variable increases the value of dependent variable decreases or vice versa.
Method of concomitant variation does not provide proof of cause-and-effect
relationship between the variables, but it definitely suggests the possibility of
a relationship when the degree of concomitant variation is high.
4) Extraneous Variables/ Control Variable:
A variable may be thought to alter the dependent or independent variables, but
may not actually be the focus of the experiment.

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 Research Design
So that, variable will be kept constant or monitored to try to minimise its effect on
the experiment. Such variables may be called a "controlled variable" or "control
variable" or "extraneous variable". Extraneous variables, if included in a
regression as independent variables, may aid a researcher with accurate
response parameter estimation, prediction and goodness of fit, but are not of
substantive interest to the hypothesis under examination.
Example: In a study examining the effect of post-secondary education on
lifetime earnings, some extraneous variables might be gender, ethnicity, social
class, genetics, intelligence, age and so forth. A variable is extraneous only
when it can be assumed (or shown) to influence the dependent variable. If
included in a regression, it can improve the fit of the model, if it is excluded from
the regression and if it has a non-zero covariance with one or more of the
independent variables of interest, its omission will bias the regression's result for
the effect of that independent variable of interest. This effect is called
confounding or omitted variable bias in these situations, design changes and/or
statistical control is necessary. Extraneous variables are often classified into
three types:
a) Subject Variables, which are the characteristics of the individuals being
studied that might affect their actions. These variables include age, gender,
health status, mood, background, etc.
b) Experimental Variables are characteristics of the persons conducting the
experiment which might influence how a person behaves. Gender, the
presence of racial discrimination, language or other factors may qualify as
such variables.
c) Situational variables are features of the environment in which the study or
research was conducted, which have a bearing on the outcome of the
experiment in a negative way. Included are the air temperature, level of
activity, lighting and the time of day.
5) Treatment:
The different conditions under which experimental and control groups are put
are usually referred to as treatments. In the following illustration the researcher
randomly selects 50 students from a group of students who are to take a course
in statistics and then divides them into two groups by randomly assigned 25 to
group A, the usual group studies programme and 25 to group B, the special
studies programme. There are two treatments in this illustration. They are as
follows:
a) The usual studies programme.
b) The special studies programme.
Similarly, if we want to determine through an experiment the comparative impact
of three varieties of fertilizers on the yield of wheat, in that case the three
varieties of fertilisers will be treated as three treatments.

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M. B. A. (Sem. – I) Business Research Methods
6) Control Group:
A group of subjects or conditions that is matched as closely as possible with
an experimental group, but is not exposed to any experimental treatment. The
results are then compared to determine the changes that may occur due to the
experimental treatment. The control group consists of elements that present
exactly the same characteristics of the experimental group, except for the
variable applied to the latter. This group of scientific control enables the
experimental study of one variable at a time and it is an essential part of the
scientific method. In a controlled experiment, two identical experiments are
carried out: in one of them, the treatment or tested factor (experimental group)
is applied; whereas in the other group (control), the tested factor is not applied.

2.3. Hypothesis:
A hypothesis is an explanation for a phenomenon that can be tested in some way that
ideally either proves or disproves it. For the duration of testing, the hypothesis is taken
to be true and the goal of the researcher is to rigorously test its terms. The concept is a
very important part of the scientific method and it also holds true in other disciplines as
well.
Example: Some historians have put forward the hypothesis that, the Salem Witch Trials
were brought about by the consumption of grains contaminated with ergot, resulting in a
mass hysteria. When someone formulates a hypothesis, he or she does, so with the
intention of testing it and he or she should not know the outcome of potential tests
before the hypothesis is made.

2.3.1. Meaning:
Hypothesis has definite utility and important place in social research. The formulation of
hypothesis is a prerequisite of any successful research. The first step in formulating the
research is to make the problem concrete and explicit. The next step is to propose a
tentative solution to the problem in the form of a testable proposition. The proposed
solution constitutes the hypothesis that the researcher would need to test on the basis
of facts already known or which can be made known. Thus, hypothesis is an assertion
that the investigator seeks to investigate. The hypothesis is a conjectural statement of
the relation between two or more variables. Hypothesis is a tentative generalisation, the
validity of which has to be tested. A hypothesis helps a researcher in proceeding further
and finding solution of the problem which he wants to study. Hypothesis is a statement,
put forward as a starting-point for reasoning or explanation.

2.3.2. Definitions:
Following are the definitions of the hypothesis:

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 Research Design
1) Webster’s New International Dictionary of English Language:
“A proposition, condition or principle which is assumed, perhaps without belief, in
order to draw out its logical consequences and by this method to test its accord with
facts which are known or may be determined.”
2) Kerlinger:
“A hypothesis is a conjectural statement of the relation between two or more
variables. Hypothesis are always in declarative sentence form and they relate, either
generally or specifically variables to variables.”
3) Goode and Hatt:
“Hypothesis is a proposition which can be put to a test to determine its validity. It
may seem contrary to or in accord with, common sense.”
4) George A. Lundberg:
“The hypothesis is a tentative justification, the validity of which remains to be
tested.”

2.3.3. Qualities of Good Hypothesis:

The qualities of good hypothesis are as follows:
1) The Hypothesis Must be Conceptually Clear:
Clear definitions of the concepts and variables used in the hypothesis should be
given both formally and operationally. An ambiguous hypothesis characterised by
undefined concepts cannot be tested. The concepts embodied in the hypothesis
should be defined in a commonly accepted and communicable manner.
2) The Hypothesis Must be Specific:
Hypothesis must be specific, rigid and reasonable in its content and definition. A
hypothesis should include a clear statement of indexes which are to be used.
Example:
The concept of social class needs to be explicated in terms of indexes such as
income, occupation, education, etc. Specific formulations have the obvious
advantage of ensuring that research is practicable and significant. It increases the
validity of the results.
3) The Hypothesis Should be Empirically Testable:
A usable hypothesis should have empirical reference. The concepts embodied in
the hypothesis must have an empirical correspondence. No usable hypothesis can
embody moral judgements.
4) It Should be Related to Body of Theory:
Hypothesis should be consistent with a substantial body of established facts. The
hypothesis selected must be in continuation with theory already evolved. This
requirement concerns the theoretic rational of hypothesis. If the hypothesis is
related to some theory, research will help to qualify, support, correct or refuse the
theory. A science, however, can be cumulative only by building on an existing body
of fact and theory.
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M. B. A. (Sem. – I) Business Research Methods
5) It Should be Related to Available Techniques:
The hypothesis should be related to available techniques of testing. The researcher
who does not know what techniques are available to test his hypothesis is in a poor
way to formulate questions. The hypothesis, therefore, should be formulated only
after due thought has been given to the methods and techniques that can be used
to measure the concepts and variables incorporated in it.
6) It Should be Closest to Things Observable:
It is expected that a usable hypothesis should be closest to things observable.
Failing this, it would not be possible to test their accord with empirical facts. A good
hypothesis may be formed in such a manner that the deductions can be made from
it.

2.3.4. Importance of Hypothesis:

The importance or advantages or utility or functions of the hypothesis may be summed
up as follows:
1) Main Focus of Study:
Hypothesis makes it clear as to what is to be accepted, proved or disproved and
that what is the main focus of study.
2) Gives Point to Enquiry:
Hypothesis gives point to enquiry. It makes the enquiry more specific and to the
point.
3) Help to Explain:
Hypothesis provides a clear and adequate explanation of the facts connected with
the hypothesis.
4) Help to Collect Pertinent Data:
Hypothesis help in selecting pertinent facts. Otherwise, we will go on collecting data
which are not needed in the study. The use of hypothesis prevents a blind search.
5) Tools of Research:
Hypotheses are important as tools of scientific research. The relationship expressed
in the hypothesis tells the researcher how to conduct inquiry and what types of data
need to be collected.
6) Provides Direction:
Hypothesis helps in deciding the direction in which to proceed. If the researcher
knows the direction, he/she can make out his path and he/she can find out the
method by which he/she can reach his goal.
7) Helps in Building a Body of Scientific Knowledge:
Hypothesis helps in building a body of scientific knowledge which is generated
through the route of development of explanation, hypothesis, verification of the
hypothesis, revision of hypothesis and retesting of hypothesis.

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 Research Design
8) Helps to Draw Conclusions:
Hypothesis is not only useful in proceeding in our study on right lines, but it is also
important in drawing proper conclusions.
9) Save Time, Money and Energy:
A clear hypothesis helps to save time, money and energy. It helps to avoid
unnecessary actions in research process.
10) Help to Suggest a Theory:
Hypothesis helps the social scientists to suggest a theory that may explain and
predict events.
11) Helps to Solve the Problems:
A problem can be scientifically solved if it is reduced to hypothesis form.

2.3.5. Types of Hypothesis:

Depending upon the nature of the hypothesis, classification is carried out as follows:
1) Working Hypothesis:
When a researcher assumes temporarily certain facts in the course of his
preliminary study of a problem, then he may make a tentative proposition that is not
final. Such a course of action makes him frame a working hypothesis.
2) Research Hypothesis:
It arises out of the finalisation of a working hypothesis.
3) Scientific Hypothesis:
When a Hypothesis is frame, on the basis of available, adequate data, for the
purpose of empirical verification and systematic justification then it becomes a
scientific hypothesis.
4) Statistical Hypothesis:
These are propositions that express quantitative relationships. A statistical
hypothesis comprises of null hypothesis and alternate hypothesis. When the
researcher is interested in finding, the existence or non-existence of a quantitative
relationship then he/she proceeds in an unbiased manner by assuming the non-
existence of a relationship. Such an assumption is called "Null hypothesis". If he/she
supposes the contrary, that is, the existence of a relationship, then his/her
hypothesis would be "alternative hypothesis". If null hypothesis is accepted as true
on the basis of empirical verification, then the alternate hypothesis is rejected and
vice-versa. It is the null hypothesis that is always tested.
For instance, if the average age of the students of division A of a class is denoted by
x1 and that of division B by x2, then the null hypothesis is expressible as HO :x1? x2
and the alternate hypothesis would be H1 : x1? x2. Here, the statistical hypothesis
would be HO: x1=x2 and H1 : x1? x2.

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M. B. A. (Sem. – I) Business Research Methods
Two kinds of hypotheses are used in classical tests of significance. They are as follows:
1) Null Hypothesis:
This a statistical proposition invented by sir Ronald Fisher. It essentially states that
there is no relation between the variables of the problem. It is used for testing.
Analysts usually test to determine whether there has been no change in the
population of interest or whether a real difference exists. Why not state the
hypothesi in a positive form? Why not state that any difference between the sample
statistic and the population parameter is due to some reason ? Unfortunately, this
type of hypothesis cannot be tested definitely. Evidence that is consistent with a
hypothesis stated in a positive form can almost never be taken as conclusive
grounds for accepting the hypothesis. A finding that is consistent with this type of
hypothesis might be consistent with other hypothesis too and thus, does not
demonstrate the truth of the given hypothesis.
2) Alternative Hypothesis:
Alternative hypothesis holds that, there has been a change in average days
outstanding. The alternative hypothesis is the logical opposite of the null hypothesis.
Alternative hypothesis is usually the one which one wishes to prove and the null
hypothesis is the one which one wishes to disprove. Thus, a null hypothesis
represents the hypothesis people is trying to reject and alternative hypothesis
represents all other possibilities.
Generally, in hypothesis testing we proceed on the basis of null hypothesis
keeping the alternative hypothesis in view. Why so? The answer is that on the
assumption that null hypothesis is true one can assign that probabilities to different
possible results, but this cannot be done if we proceed with the alternative
hypothesis. Hence, the use of null hypothesis is quite frequent.

2.3.6. Concept / Logic of Hypothesis Testing:

A research study may not be treated as complete unless a hypothesis is put to test with
known statistical procedures and such tests are carried. Testing of hypothesis is an
essential part of the study of statistical inference because it enables statisticians and
researchers to confidently examine the accuracy of their results.
Testing process is usually based on null hypothesis. The null hypothesis is the one
which we wish to disprove. There are many useful methods for testing a hypothesis.
The technique to be adopted to test the hypothesis depends upon the availability of
data, convenience and exposure of various methods, etc.
1) Hypothesis Testing Involves Following Important Steps:
a) State the hypothesis.
b) Select the level of significance.
c) Select a random sample and determine an appropriate value for the sample.

2. 30
 Research Design
d) Calculate a probability and reject or accept the hypothesis according to
probability.
In most researches, two levels of significance are commonly used for testing null
hypothesis; one is 0.05 or 5% and the other is 0.01 or 1% level of significance. Test
of significance is the test of correctness of hypothesis on the basis of information
obtained from the sample.

2) The Data is Analysed and a Statistic is Calculated:

Determining statistical significance:
(How do we determine if H0 should be rejected?) A statistical test result is
considered to be “statistically significant or “significant when the null hypothesis is
rejected.
3) There are two options available when determining statistical significance (both
options will lead us to the same conclusion regarding the null hypothesis):
a) To compare the value of the statistic (the “observed” value) to a “critical value”
from a table of critical values. If the absolute value of the statistic exceeds the
critical value, we reject the null hypothesis and conclude that a mean difference
or a relationship between variables exists (This is the technique used in HSC
300).
b) A computer-generated probability value (p-value) is calculated based upon the
size of the sample and the value of the statistic. This p-value tells us the
probability that the result of the test (the value of the statistic) happened by
chance (accidentally). If the p-value is small enough (less than 0.0500, for
example) we will reject the null hypothesis and conclude that a mean difference
or a relationship between variables exists.

A) Procedure for Hypothesis Testing:

To test a hypothesis means to tell (on the basis of the data the researcher has
collected) whether or not the hypothesis seems to be valid. In hypothesis testing the
main question is: whether to accept the null hypothesis or not to accept the null
hypothesis?
Procedure for hypothesis testing refers to all those steps that we undertake for
making a choice between the two actions i.e., rejection and acceptance of a null
hypothesis. The various steps involved in hypothesis testing are stated below:
1) Framing of Null Hypothesis and Alternate Hypothesis:
The step consists in making a formal statement of the null hypothesis (H0) and
also of the alternative hypothesis (Ha). This means that, hypotheses should be
clearly stated, considering the nature of the research problem For instance, Mr.
Mohan of the civil engineering department wants to test the load bearing
capacity of an old bridge which must be more than 10 tons In that case he can
state his hypotheses as under:

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M. B. A. (Sem. – I) Business Research Methods
Null Hypothesis H0: m = 10 tons
Alternative Hypothesis Ha: m > 10 tons
Take another example The average score in an aptitude test administered at the
national level is 80. To evaluate a state's education system, the average score
of 100 of the state's students selected on random basis was 75. The state wants
to know if there is a significant difference between the local scores and the
national scores. In such a situation the hypotheses may be stated as under
Null Hypothesis H0: m = 80
Alternative Hypothesis Ha: m180
The formulation of hypotheses is an important step, which must be
accomplished with due care in accordance with the object and nature of the
problem under consideration It also indicates whether it should use a one-tailed
test or a two-tailed test. If Ha is of the type greater than (or of the type lesser
than), we use a one-tailed test, but when Ha is of the type "whether greater or
smaller", then use a two-tailed test
2) Selecting a Significance Level:
The hypotheses are tested on a pre-determined level of significance and as
such the same should be specified generally, in practice, either 5% level or 1%
level is adopted for the purpose the factors that affect the level of significance
are as follows:
a) The magnitude of the difference between sample means.
b) The size of the samples.
c) The variability of measurements within samples.
d) Whether the hypothesis is directional or non-directional.
(A directional hypothesis is one which predicts the direction of the difference
between, say, means). In brief, the level of significance must be adequate in
the context of the purpose and nature of enquiry.
3) Selecting a Random Sample and Computing an Appropriate Value:
Another step is to select a random sample(s) and compute an appropriate value
from the sample data concerning the test statistic utilising the relevant
distribution. In other words, draw a sample to furnish empirical data.
4) Calculation of the Probability:
One has then to calculate the probability that the sample result would diverge as
widely as it has from expectations, if the null hypothesis were in fact true.
5) Deciding the Distribution to Use:
After deciding the level of significance, the next step in hypothesis testing is to
determine the appropriate sampling distribution the choice generally remains
between normal distribution and the t-distribution. The rules for selecting the
correct distribution are similar to those that one has stated earlier in the context
of estimation.

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 Research Design
The above mentioned procedure can be shown in a flowchart as Follows:

Fig. 2.1: Flowchart for Hypothesis Testing Procedure

6) Comparing the Probability:
Yet another step consists in comparing the probability thus calculated with the
specified value for a, the significance level If the calculated probability is equal
to or smaller than the a value in case of one-tailed test (and a / 2 in case of two-
tailed test), then reject the null hypothesis (i e, accept the alternative
hypothesis), but if the calculated probability is greater, then accept the null
hypothesis. In case we reject H0, we run a risk of (at most the level of
significance) committing an error of Type I, but if we accept H0, then we run
some risk (the size of which cannot be specified as long as the H0 happens to
be vague rather than specific) of committing an error of type II.

B) Errors in Hypothesis Testing:

It is to be noted that the “decision” we make is based on probability, there will
always be a chance that the decision will be incorrect. This incorrect decision is
called an “error”. There are two major “types” of errors we can make when testing a
null hypothesis - Type 1 and Type 2.

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M. B. A. (Sem. – I) Business Research Methods
Type 1 Error:
Rejecting a “true” H0. (Rejecting the null when one can retained it). The probability
of this error occurring is a (alpha).
Type 2 Error:
Retaining a “false” H0. (Retaining the null when we should have rejected it.). The
probability of this error occurring is b (beta).
Before we run the statistical test, we need to establish an “alpha level” (a). The
alpha level is the probability of committing a Type 1 error. It is pre-determined by the
researcher and is typically set at 0.05 or 5%. An alpha level of 0.05 means that the
probability of making a type 1 error (rejecting a true H0) is 5 out of 100. In other
words, we will make an “incorrect” decision regarding H0 5 times out of 100. This
incorrect decision is due to characteristics in the sample we drew, not a mistake in
the analysis. Unfortunately, we never actually know when we make a type 1 error,
we only know the probability of a type 1 error occurring. We may make our test
more “conservative” by setting out a - level lower (0.01) or make our test more
“liberal” by setting the - level higher (0.10).

   

2. 34
 Research Design
 Review Questions 

Q.1. What do you mean by research design? Explain its features and uses.
Q.2. Explain various steps in research design.
Q.3. Discuss the qualitative research design approach along with its advantages and
disadvantages in today business world.
Q.4. Explain the qualitative research design approach and its advantages
disadvantages.
Q.5. Discuss in detail the research process.
Q.6. Explain the qualities of good hypothesis.
Q.7. What do you mean by descriptive research design? Discuss its types and use.
Q.8. What is meant by experimental research design? Discuss its various types.
Q.9. Explain various types of variable used in experimental research design.
Q.10.What do you mean by hypothesis? State and explain its importance?
Q.11.Explain hypothesis testing in detail.
Q.12.Write Short Notes on Following:
1) Research design.
2) Qualitative Research Design.
3) Quantitative Research Design.
4) Exploratory research design.
5) Focus Groups.
6) Experience Surveys.
7) Projective Techniques.

   

2. 35
 U
Measurement and
N
I 3 Data
T

3.1. Measurement
3.2. Attitude Scaling Techniques
3.3. Data Collection
3.4. Types of Data / Sources of Data
3.5. Questionnaire Method

Introduction:
In almost all research, everything has to be reduced to numbers eventually. Precision
and exactness in measurement are vitally important. The measures are what are
actually used to test the hypotheses. A researcher needs good measures for both
independent and dependent variables. In statistics and quantitative research
methodology, levels of measurement or scales of measure are types of data that arise
in the theory of scale types. The measurement scales are useful in helping to classify
and catalogue variables and types of data generated in a study as well as in designing
questions to measure variables.

3.1. Measurement:
Measurement is at the core of doing research. Measurement is the assignment of
numbers to things. In almost all research, everything has to be reduced to numbers
eventually. Precision and exactness in measurement are vitally important. The
measures are what are actually used to test the hypotheses. A researcher needs good
measures for both independent and dependent variables.

3.1.1. Meaning:
Measurement is undetachable part of any science. Any science aims to obtain a
specific and accurate measurement of the events, of the characteristics of the different
units of a phenomenon and of the inter-relationship between the units. Measurement is
the process of obtaining a numerical description of the characteristics of a group of
persons or objects.

3. 1
M. B. A. (Sem. – I) Business Research Methods

3.1.2. Definitions:
Following are the definitions of the measurement:
1) George Lundberg:
“Measurement is the way of defining things and not only a process.”
2) Kenneth D. Bailey:
“Measurement is the process of determining the value or level, either qualitative or
quantitative, of a particular attribute for a particular unit of analysis.”
3) G. C. Helmstadter:
“Measurement is a process of obtaining a numerical description of the extent to
which a person or object possesses some characteristics.”
4) Blalock:
“Measurement is the systematic assignment of numbers to a set of observations to
reflect the status of each member of the set in terms of the various properties.”

3.1.3. What is Measured?:

What is measured?:
Variables are studied in research. They may be classified as objects or as properties.
A) Objects:
Objects include the things of ordinary experience, such as tables, books, people
and automobiles. Objects also include things that are not as concrete, such as
genes, attitudes, neutrons and peer-group pressures.
B) Properties:
Properties are the characteristics of the objects. A person‟s physical properties may
be stated in terms of weight, height and posture. Psychological properties include
attitudes and intelligence. Social properties include leadership ability, class affiliation
or status. These and many other properties of an individual can be measured in a
research study.
In a literal sense, researchers do not measure either objects or properties. They
measure indicants of the properties or indicantes of the properties of objects. It is
easy to observe that A is taller than B and C participates more than D in a group
process.
In contrast, it is not easy to measure properties like motivation to succeed,
„ability to stand stress;‟ persuasiveness, etc. Since each property cannot be
measured directly, one must infer its presence or absence by observing some
indicant or pointer measurement. Thus, it is a challenge to measure such
constracts. Research study‟s quality depends on what measures are selected or
developed and how they fit the circumstances.

3. 2
 Measurement and Data

3.1.4. Problems in Measurement in Management Research:

While measuring the units or phenomenon in management research it is necessary that
measurement must be sound. There are problems in measuring such soundness of
measurements which are measured by volidity. There are three tests of sound
measurement - test validity, reliability and practicability. These three considerations are
to be taken into consideration while evaluating a measurement too. They can be
discussed as follows:
1) Test of validity:
Validity refers to the extent to which a test measures what we actually wish to
measure. It is most critical criterion. It indicates the degree to which an instrument
measures what it is supposed to measure. Validity is the extent to which differences
found with a measuring instrument reflect true differences among those being
tested. It is difficult to determine the validity of measures. Relevant evidence is
taken into consideration while determining validity. Relevant evidence depends
upon the nature of research problem and the judgement of the researcher. There
are three types of validity.
They are as follows:
a) Content Validity:
It is the extent to which a measuring instrument provides adequate coverage of
the topic under study. The content validity is good if it contains a representative
sample of the universe. It is based on judgement and intuition. A panel of
persons shall judge the standards of measuring instrument and then determine
its validity.
b) Criterion-related Validity:
It relates to our ability to predict some outcome of some current condition. The
success of measures is reflected in this form of validity. The concerned criterion
must be relevant, free from bias, reliable and available. These terms refer to
predictive validity and concurrent validity. It is expressed as the coefficient of
correlation between test scores and some measures of future performance or
between test scores and scores on another‟s measure of known validity.
c) Construct Validity:
It is the most complex and abstract. When a measure confirms predicted
correlation with other theoretical propositions, it is construct validity. Scores on a
test can be accounted for by the explanatory constructs of a sound theory by
construct validity test. A set of propositions is associated with the results
received from using our measurement instrument for determination of construct
validity. If measurements on our devised scale correlate in a predicted way with
these other prepositions, we can conclude that there is some construct validity.

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M. B. A. (Sem. – I) Business Research Methods
If the above mentioned criteria and tests are met with, we can state that our
measuring instrument is valid. We may think that it will result in correct
measurement. If it is not so, we have to look for more information and resort to
exercise of judgement.
2) Test of Reliability:
Another important test of sound measurement is test of reliability. If the measuring
instrument provides consistent results, it is reliable. It contributes validity. But it is to
be noted that a reliable instrument need not be a valid instrument. A valid instrument
is always reliable. Reliability is not as valuable as validity. It is easier to assess
reliability in comparison validity. If the instrument satisfies the quality of reliability
then we can become confident that the transient and situational factors are not
interfering.
There are two aspects of reliability - stability and equivalence. The stability
aspect is concerned with securing consistent results with repeated measurements of
the same person and with the same instrument. The degree of stability is generally
determined by comparing the results of repeated measurements. The equivalence
aspect considers how much error may get introduced by different investigators. The
equivalence of measurement can be tested by two investigators by comparing their
observations of the same events.
There are two ways of improving reliability. They can be stated as follows:
a) The conditions under which the measurement takes place can be standardised.
It means that we must ensure that external sources of variation such as
boredom, fatigue, etc. are minimised to the extent possible. This will improve
stability aspect.
b) The direction for measurement is carefully designed without any variation from
group to group. This is done by the trained and motivated person who conducts
the research. The sample of items used is broadened. This will improve
equivalence aspect.
3) Test of Practicability:
Practicability of a measurement instrument is judged in terms of economy,
convenience and interpretability. According to the operation view, such measuring
instrument must be practical. It means that it should be economical, convenient and
interpretable. Economy consideration suggests that some trade-off is needed
between the ideal research project and that which the budget can afford. The length
of measuring instrument is taken into consideration. Due to the time factor, we have
to take only few items for our study purpose. In the same way, data collection
methods are also dependent upon economic factors.
Convenience test suggests that the measuring instrument should be easy to
administer. We have to give due attention to the proper layout of the measuring
instrument.

3. 4
 Measurement and Data
Interpretability consideration is especially important when persons other than the
designers of the test have to interpret the results.
Such instrument must be supplemented by -
a) Detailed instructions for administering the test.
b) Scoring keys.
c) Evidence about the reliability.
d) Guides for using the test and for interpreting results.

3.1.5. Types / Levels of Measurement:

There are four types of measurement scales. These are useful in helping to classify and
catalogue variables in a study as well as in designing questions to measure variables.

These are explained as follows:

1) Nominal Scale:
This is one of the simplest methods of measurement. Nominal scale classifies
individuals into two or more categories, the members of which differ with respect to
the specific characteristics. A variable with a nominal level of measurement
consists of a set of distinctive categories that imply no specific order. For example,
variable of sex can take only two forms male or female.
This level of measurement is not always recognised as a measurement but it is
a necessary condition for all higher levels of measurement. This is also known as
classificatory measurement.
2) Ordinal Scale:
The word „ordinal‟ means showing order or position in a series. In ordinal scale or
ordinal level of measurement, it is expected that researcher should determine an
order or position of objects or persons in terms of characteristics under study.
The ordinal scale provides a rank order of categories and arranges objects
according to their magnitude in an ordered relationship. For example, the variable of
social class may be categorised into upper class, middle class and lower class.
Farmers may be categorised into marginal, small, medium and big on the basis
of land holding. Thus ordinal level of measurement involves the ranking of members
of a set or sets of a universe on the basis of operationally defined characteristics or
properties. The scale positions are put in a clearly defined order. Students can be
categorised into First Year (F.Y.), Second Year (S.Y.) or Third Year (T.Y.) student
on the basis of their study year of that particular academic programme.

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M. B. A. (Sem. – I) Business Research Methods
3) Interval Scale:
Interval means space between two objects. In interval scale, numbers are assigned
to objects or events which can be categorised ordered and assumed to have an
equal distance between scale values. A zero point, which is set for convenience,
does not mean absence of the variable. Interval scales are created devices which
assist us in ordering things quite precisely.
An interval level of measurement embodies the characteristics of both the nominal
and ordinal scale. But in addition, the distance between the points on an interval
scale can be determined mathematically and precisely.
An example of an interval scale would be a scale of test scores, such as an IQ
score. For example, if there are two students IQ of one student is 50 and IQ of other
student is 60. It means that the IQ of second student is 20 percent higher than the
first student.
4) Ratio Scales:
Ratio is the relation between two amounts determined by the number of times one
contains the other. In ratio scale, all the characteristics of interval scale are included.
The ratio level of measurement can be applied to either continuous or discrete
variables. The numbers on the scale indicate the actual amounts of the property that
are measured. The salient feature of this scale is that the ratio of any two numbers
is independent of the unit of measurement. It can be meaningfully equated. For
example, the ratio 10:50 is equal to 1:5.
In business research, mostly nominal and ordinal scales are used. The form of
statistical analysis is a type of scale used in research. Mode is more appropriate for
nominal scale while median is more appropriate for ordinal scale. Mean can be
calculated only if the scale is in interval or ratio type.

3.2. Attitude Scaling Techniques:

The term scaling is applied to the attempts to measure the attitude objectively. Attitude
is a resultant of number of external and internal factors. Depending upon the attitude to
be measured, appropriate scales are designed. Scaling is a technique used for
measuring qualitative responses of respondents such as those related to their feelings,
perception, likes, dislikes, interests and preferences. Attitude scales provide a
quantitative measurement of attitudes, opinions or values by summarising numerical
scores given by researchers to people‟s responses to sets of statements exploring
dimensions of an underlying theme.

3.2.1. Concept of Attitude:

Attitudes are evaluative statement favorable or unfavorable related to person, object or
event. They reflect that how one feel about something.

3. 6
 Measurement and Data
Example: If someone says that I like my job. This statement expresses his attitude
towards his job. Each and every person has different attitude at different conditions.
Attitude can be described as a tendency to react positively or negatively to a person or
circumstances. Thus the two main elements of attitude are this tendency or
predisposition and the direction of this predisposition.

3.2.2. Meaning:
Attitude is an important variable in human behaviour. An attitude is psychological
tendency of a person towards work assigned to him. Attitude is the set of action with an
emotional overtime.
Some attitudes or tendencies are born in nature. They are not subject to change under
normal conditions. A complete change in the attitude of a person cannot be forced.
Willingness to change the tendency is very important. Similarly, fast changes in the
attitude of a person cannot be imagined.

3.2.3. Definitions:
Following are the definitions of the attitude:
1) Allport:
"Attitude is a mental and neural state of readiness organised through experience
exerting a directive or dynamic influence upon the individual's response to all
objects and situations with which it is related".
2) Reitz:
"Attitude is the persistent tendency to feel and behave in a favourable or
unfavourable way towards some object, person or ideas".
3) Schermerhorm:
"Attitude is a predisposition to respond in a positive or negative way to someone or
something in one's environment".
4) Munn:
"Attitude is learned predispositions towards aspect of our environment. They can be
positively or negatively directed towards certain people, service or institutions".
5) M.L. Blum and T.S. Naylor:
"By attitude we mean the beliefs, feelings and action tendencies of an individual or
group of individuals towards object, ideas and people. Quite often person and
objects or ideas become associated in the minds of individuals and as a result
attitudes become multidimensional and complex".

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M. B. A. (Sem. – I) Business Research Methods

3.2.4. Components of Attitude:

There are three components of attitude.

Fig. 3.1: Components of Attitude

1) Cognitive Component:
It refers that's part of attitude which is related in general know how of a person, for
example, he says smoking is injurious to health. Such type of idea of a person is
called cognitive component of attitude.
2) Affective Component:
This part of attitude is related to the statement which affects another person. For
example, in an organisation a personal report is given to the general manager. In
report he point out that the sale staff is not performing their due responsibilities. The
general manager forwards a written notice to the marketing manager to negotiate
with the sale staff.
3) Behavioural Component:
The behavioural component refers to that part of attitude which reflects the intension
of a person in short run or in long run. For example, before the production and
launching process the product. Report is prepared by the production department
which consists of their intention in near future and long run and this report is handed
over to top management for the decision.

3.2.5. Concept of Scale:

A scale is a type of composite measure that is composed of several items that have a
logical or empirical structure among them. That is, scales take advantage of differences
in intensity among the indicators of a variable. For example, when a question has the
response choices of "always," "sometimes," "rarely," and "never," this is a scale
because the answer choices are rank-ordered and have differences in intensity.
Another example would be "strongly agree," "agree," "neither agree nor disagree,"
"disagree," "strongly disagree." There are several different types of scales.
Scaling can be done in two ways:
a) making a judgment about an individual's characteristics and then placing him on a
scale which is defined in terms of that characteristic and

3. 8
 Measurement and Data
b) Constructing questionnaires where individual's responses score assign them a
place on a scale.
A scale is a continuum, consisting of the highest point and the lowest point along
with several intermediate points between these two extremities. These scale-point
positions are hierarchically related to each other. Numbers for measuring the degree
of differences in the attitudes or opinions are assigned to individuals corresponding
to their positions in a scale. Therefore, the term 'scaling' implies procedures for
determination of quantitative measures of subjective abstract concepts.
A) Meaning:
In the social sciences, scaling is the process of measuring or ordering entities with
respect to quantitative attributes or traits. For example, a scaling technique might
involve estimating individuals' levels of extraversion or the perceived quality of
products. Certain methods of scaling permit estimation of magnitudes on a
continuum, while other methods provide only for relative ordering of the entities.
Scaling is the process of assigning numbers to various degrees of attitudes,
preferences, opinion and other concepts. Scaling is defined as 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.
B) Definition:
Scale is a device by which we measure things. In research, the researcher has to
measure certain things. Scaling describes the procedures of assigning numbers to
various degrees of opinion, attitude and other concepts. This can be done in two
ways as follows:
a) Making a judgement about some characteristics of an individual and then
placing him directly on a scale that has been defined in terms of that
characteristic and
b) Constructing questionnaires in such a way that the score of individual‟s
responses assigns him a place on a scale. It may be stated here that a scale is
a continuum, consisting of the highest point and lowest point along with several
intermediate points between these two extreme points. The term scaling is
applied to the procedures for attempting to determine quantitative measures of
subjective abstract concepts.
Peterson:
Scaling is the generation of a broadly defined continuum on which measured
objects are located
C) Types of Scaling Techniques:
The various types of scaling techniques used in research can be classified into two
categories: (a) comparative scales and (b) Non-comparative scales. In comparative
scaling, the respondent is asked to compare one object with another.

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M. B. A. (Sem. – I) Business Research Methods
Example: The researcher can ask the respondents whether they prefer brand A or
brand B of a detergent. On the other hand, in non-comparative scaling respondents
need only evaluate a single object. Their evaluation is independent of the other
object which the researcher is studying. Respondents using a non-comparative
scale employ whatever rating standard seems appropriate to them. Non-
comparative techniques consist of continuous and itemized rating scales. Shows the
classification of these scaling techniques

Fig. 3.2: Types of Scaling Techniques

1) Comparative Scales:
When the opinion of the respondent is sought to be obtained by comparing to a
particular product, it becomes a comparative scale. For example, if we ask the
respondent to express his attitude regarding the reasonableness of price of
Pears soap against that of Lux or Lyril, it becomes a comparative graphic scale.
Look at the following examples of graphic rating scales.
The comparative scales can further be divided into the following four types of
scaling techniques: (a) Paired Comparison Scale, (b) Rank Order Scale, (c)
Constant Sum Scale and (d) Q-sort Scale.
a) Paired Comparison Scale:
This is the simplest case of ranking scale. In the paired comparison rating
scale, the respondent is asked to rate between the two items at a time. In the
following example cited above regarding the quality of the tea among five
brands, we can pair them as follows:
Tajmahal Vs Pariwar
Tajmahal Vs Tata Gemini

3. 10
 Measurement and Data
Tajmahal Vs Tajaa
Tajmahal Vs Top Star
... Parivar Vs Tajmahal
... Pariwar Vs Tata Gemini
... Pariwar Vs Tajaa
... Pariwar Vs Top Star
... Tata Gemini Vs Tajmahal
... Tata Gemini Vs Pariwar
... Tata Gemini Vs Tajaa
... Tata Gemini Vs Top Star
... Tajaa Vs Tajmahal
... Tajaa Vs Tata Gemini
... Tajaa Vs Top Star
... Tajaa Vs Pariwar
... Topstar Vs Tajmahal
... Topstar Vs Tata Gemini
... Topstar Vs Pariwa
... Topstar Vs Tajaa.
In the above example, we have 20 paired combinations. The number of
paired combinations varies depending on the number of items or objects to
be compared. The following formula can be used to determine the total
number of paired combinations.
N = [n(n - 1)] ½
Where N = Number of paired combinations.
n = number of items or objects.
For instance, we have considered 5 brands and obtained 20 combinations.
The forma can help us to decide the same.
N = [5( 5 - 1)] 1/2
= [20]
= 10
As such, the number of paired combinations multiplies rapidly; more items
are added to the list. This is infact the greatest disadvantage of the method
and the strong reason for its limited popularity. The data contained in the
above example can be arranged in the form of a matrix and we can see the
most preferred brand. To do this, let us give the values to the preferences
as:

Wins (1); losses = 0. With these scores, the matrix looks a follows.
Matrix Showing the Preference of Certain Respondents among Five Brands
of Tea.

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M. B. A. (Sem. – I) Business Research Methods
Tajmahal Pariwar Tata Tajaa Top Star
Gemini
Tajmahal - 1 1 0 0
Pariwar Tata 0 - 0 0 0
Gemini 0 1 - 1 1
Tajaa 1 1 0 - 0
Top Star 1 1 0 1 -
Total 2 4 1 2
Based on the column totals, the ordinal ranking of the five brands is as
follow:
1st .......... Pariwar
2nd .......... Tajmahal
.......... Taja
3rd .......... Tata gemini
Top Star
b) Rank Order/Force Ranking:
A forced - choice or forced ranking scale is different from the pattern of rating
scales discussed above. All the above techniques consider one attitude at a
time and place the rates at any one of set of categories. In the forced-choice
rating scale, the rate is given a set of attributes in terms of verbal statements
for a single item and he decides which one or ones, represent the individual
being rate most appropriately and accurately. The items of the forced-choice
scale may have several alternatives-two, three, four or five. Of these, the two
alternatives and the four alternatives are the most common. In the two-
alternative-form, both the statements regarding the attribute are either
favourable or unfavourable. However, only one of the statements regarding
the attribute in either case is valid to identify desirable or undesirable
attributes through both of them may appear equally favourable or
unfavorable to the rater. In the four-alternative-form, two varieties are
common-in one variety, all the four statements are desirable or undesirable
and in the second variety, two statements are favourable and two sentences
are unfavourable. When all the four statements are favourable or
unfavourable, it does not mean that all of them have equal discriminative
value or in other words, that they are equally valid in identifying desirable or
undesirable attributes though they may appear to be so to the rater. This
automatically reduces the probability of operating a favourable response bias
by the rater. The rater may be asked to select any two statements which are
most descriptive and representative of the persons being rated. An example
of the four-alternative forced-choice rating scale is given below:
Miss Godbole

3. 12
 Measurement and Data
a) Lectures with confidence.
b) Keeps the students interested and motivated.
c) Cares a great deal for the slow learners.
d) Entertains suggestions from students to improve her lecture.
In the above four statements (all favourable) the most discriminating
statement is (c) and the least discriminating statement is (a). The most
discriminating statement may be assigned a score of 2 and the least
discriminating statement a score of 0. A rate‟s total score would be the sum
of such scores assigned to the most discriminating statements in each set.
The students must note carefully that the assignment of score value to
the most and least discriminating statement is not random and/or dependent
upon the will of the investigator. As a matter of fact, it is determined on the
basis of some preliminary investigations.
c) Constant Sum:
In this type of questioning, the respondents are asked to allocate a given
number of points among the items according to some criterion. Normally a
hundred or two hundred point scale is used for this. For example, a
consumer may be asked to rank the TVs of few manufacturers in respect of
their picture quality. He may be instructed to assume the total points as 100
or 200. Suppose the following is the distribution of points among few TV
manufactures.
Make Points
EC TV 20
BPL Sanyo 20
Videocon 30
Samsung 15
Onida 15
Total Points 100
It means that the consumer feels that the picture quality of videocon is good
compared to the other TV and it is twice qualitative to that of Samsung or
Onida.
We have used the same technique in a study on „Working capital
management. A study of selected State Enterprises in Maharashtra.‟ The
question asked is as follows.
What is the influence of the following environmental factors on the
efficiency of working capital? Kindly allot a total of 100 points among the
variables depending on their importance.
I) Technnology - Infrastructural .....................
II) Government - Ministerial .....................
III) Legal - Political .....................

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M. B. A. (Sem. – I) Business Research Methods
IV) Socio - Cultural .....................
V) Workers - Employees .....................
VI) Economic - Business ......................
100.00
This technique of constant rating scale is useful in situations when the items
or factors for consideration are limited. If the items are large, respondents
will have a problem in deciding the relative importance of factors. This can
be overcome by having more points and administering the questionnaire
personally.
d) Q-Sort:
It is used to discriminate among large number of objects quickly. It uses a
rank order procedure and the objects are sorted into piles based on similarity
with respect to some criteria. The number of objects to be sorted should be
60 to 140 approximately. For example, here we are taking nine brands. On
the basis of taste we classify the brands into tasty, moderate and non tasty.
We can classify on the basis of price also-Low, medium, high. Then we can
attain the perception of people that whether they prefer low priced brand,
high or moderate. We can classify sixty brands or pile it into three piles. So
the number of objects is to be placed in three piles-low, medium or high.
Thus, the Q-sort technique is an attempt to classify subjects in terms of their
similarity to attribute under study.
2) Non Comparative Scales:
When the opinion of the respondent is sought to be obtained without reference
to a particular product, it becomes a non-comparative scale. For example, a
soap like Pears, is reasonably priced or not. In expressing his opinion, the
respondent is free to compare the price of Pears with that of any other soap.
The moot point is in the absence of a comparative instruction, the respondent is
free to compare the stimulus with any other stimulus that comes to his mind. In
this situation, the researcher should also think of a likely possibility that
respondents may be using a frame of reference that is not relevant to the
purpose of the study.
a) Continuous Rating Scale/Graphic Rating Scale:
The respondents are asked to give a rating by placing a mark at the
appropriate position on a continuous line. The scale can be written on card
and shown to the respondent during the interview. Two versions of a
continuous rating scale are depicted in figure 3.3.
When version B is used, the respondent's score is determined either by
dividing the line into as many categories as desired and assigning the
respondent a score based on the category into which his/her mark falls or by
measuring the distance, in millimeters or inches, from either end of the scale.

3. 14
 Measurement and Data
Whichever of these forms of the continuous scale is used, the results are
normally analysed as interval scaled.

Figure 3.3 Continuous Rating Scales

b) Itemised Rating Scales:
With an itemised scale, respondents are provided with a scale having
numbers and/or brief descriptions associated with each category and are
asked to select one of the limited numbers of categories ordered in terms of
scale position that best describes the product, brand, company or product
attribute being studied. Examples of the itemised rating scale are illustrated
in figure 3.4.
Itemised rating scales can take a variety of innovative forms as
demonstrated by the two illustrated in figure 3.9, which are graphic.
Whichever form of itemised scale is applied, researchers usually treat the
data as interval level.

Figure 3.4 Itemised rating scales

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M. B. A. (Sem. – I) Business Research Methods
I) Likert Scale:
The likert scale is one of the most widely used attitude scaling
techniques. In this approach, the respondent is asked to indicate his
degree of agreement or disagreement with each of a series of
statements that are related to the object in question. Five categories are
normally employed for each item, although three and seven have
sometimes been used. The usual descriptions for the five categories are
as follows:

Each point on the scale carries a score. The choice between the two
orderings of scores for an item depends on whether strongly agree
indicates a favourable or unfavourable attitude. Some items on the scale
will be expressed positively, so that the answer „strongly agree‟ indicates
a favourable attitudes and the other negatively, „strongly disagree‟ then
indicating an unfavourable attitude. To make the total score meaningful,
positive items must be scored in one order and negative ones in the
reverse order.
Procedure:
The procedure for developing a Likert-type scale is as follows
1) The first step is to collect a large number of statements relevant to
the attitude being studied,
2) Respondents are asked to indicate their responses to statements on
the five point scale as stated above,
3) The responses to various statements are scored in such a way that
a response indicative of the most favourable attitude is given the
highest score of 5 and that with the most unfavourable attitude is
given the lowest score, say of 1.
4) Then the total score of each respondent is obtained by adding
scores that he received for separate statements.
5) The final step is to array these total scores and find out those
statements which have a high discriminatory power.
Advantages:
Following are the advantages of the Likert Scale:
1) Easy to Construct:
It is relatively easy to construct Likert-type scale in comparison to
Thurstone-type scale.

3. 16
 Measurement and Data
2) Reliable:
These scales are considered more reliable, as there is scope in these
scales to measure the degree of response.
3) Suitable:
These scales are highly suitable that are respondent and stimuli -
oriented.
Disadvantages:
Following are the disadvantages of the Likert Scale:
1) Cannot Tell About the Favourability of Respondent:
The chief disadvantage with this scale is that we can only know
whether a respondent is more or less favourable to an item. But it
cannot tell how much more or how much less.
2) Little Meaning:
It is also criticised that the total score of a respondent has little
meaning, since a given total score can be secured by a variety of
answer patterns.
II) Semantic Differential:
The semantic differential scale is an attitude measuring device
developed by Osgood, Suci and Tannenbaum. The Semantic differential
(SD) scale may be defined as, „a collection of subscales in which
absolute ratings of concept are done‟. In the SD scale, the term „concept‟
refers to the object which is to be rated. The purpose of SD is to
measure the various facts of meaning of the concept. It is because the
various facts of meaning are measured by adjectives. The adjectives are
selected to convey the meaning of the concept because in our day-to-
day language most of our ideas are appropriately communicated only
through adjectives.
In this technique, the respondent is asked to express his other
feelings relative to an object by selecting a position along a scale
bounded by bipolar adjectives or phrases. Following are the examples,
using polar adjectives taken from Osgood and others.
Good ................ Bad
Kind ................ Cruel
True ................ False
Strong ................ Weak
Hard ............... Soft
Severe ............... Lenient
Active ............... Passive
Hot ............... Cold
Fast ............... Slow
San ............... Insane.

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M. B. A. (Sem. – I) Business Research Methods
Respondents are now required to go through these sets of scales for a
particular concept and to place a check mark in one of the spaces on
each scale to indicate rating of the concept‟s position with respect to the
adjectives involved. The positions were then assigned scores 1 to 7.
Osgood and his co-workers applied this technique to a range of concepts
and a wide variety of adjective pairs and they investigated the
correlations between the scores given to a set concept on different by
polar scales by conducting a series of factor analysis. This is the most
fascinating and very widely used technique in marketing research. This is
frequently used in conducting corporate and brand image studies.
Advantages:
Following are the advantages of the semantic differential:
1) Convenient and Quick Way:
The scale provides a very convenient and quick way of gathering
impressions on one or more than one concept.
2) Provides Basis for Finer Discriminations:
Since the scores are summed over the different scales, they tend to
average out the peculiarities, if any, among the scales as well as
provide a basis for finer discrimination among the individuals.
Disadvantages:
Following are the advantages of the semantic differential:
1) Appropriateness of Pairs is Questionable:
The most common disadvantage of the semantic differential scale is
that the appropriateness of pairs of adjectives is questionable and
little consensus exists among the experts regarding the suitability of
the pairs selected.
2) Superficial and Verbal Level Responses:
It is also said that often the responses given by the subjects are at a
superficial and verbal level.
III) Staple:
It was developed by Jan Stapel. This scale has some distinctive features:
a) Each item has only one word/phrase indicating the dimension it
represents.
b) Each item has ten response categories.
c) Each item has an even number of categories.
d) The response categories have numerical labels but no verbal labels.
Example: In the following items, suppose for quality of ice cream, we
ask respondents to rank from +5 to -5. Select a plus number for words
which best describe the ice cream accurately. Select a minus number for
words you think do not describe the ice cream quality accurately. Thus,

3. 18
 Measurement and Data
we can select any number from +5, for words we think are very accurate,
to -5, for words we think are very inaccurate. This scale is usually
presented vertically.
+5
+4
+3
+2
+1
High Quality
-1
-2
-3
-4
-5
This is a unipolar rating scale.
Advantages:
Following are the advantages of the staple:
1) Easy to Use:
Easier for both scale developer and respondent, since only one
descriptive word or phrase at a time must be considered
2) Accuracy in Measurement:
Staple scale Designed to measure both the direction and the
intensity of attitudes simultaneously.
3) Avoid extra Task:
It enables the researcher to avoid the task of creating bipolar
adjective pairs. Scale may also permit finer discrimination in
measuring attitudes.
4) Analysable Data:
Data obtained through Stapel scales can be analysed by using
procedures similar to the ones for semantic-differential scales.
Overall attitude scores can be computed for the respondents by
summing their ratings on the individual items.
5) No Need to Develop Complete Statements:
Alternatively, pictorial profiles of the attitude objects can also be
constructed from the mean or median respondent ratings on each
item. One apparent advantage of the Stapel scale is that one does
not have to develop complete statements or come up with pairs of
bipolar words or phrases.

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M. B. A. (Sem. – I) Business Research Methods
Disadvantages of Stapel Scale:
Following are the disadvantages of the staple:
1) Leads To Biasness:
Descriptive words may bias respondent if phrased in a positive or
negative manner
2) Negativity of Result:
A drawback is that descriptor adjectives can be phrased in a positive,
neutral or negative vein and the choice of phrasing has been shown
to affect the scale results.

3.3. Data Collection:

Data collection is the process of gathering and measuring information on variables of
interest, in an established systematic fashion that enables one to answer stated
research questions, test hypotheses and evaluate outcomes. The data collection
component of research is common to all fields of study including physical and social
sciences, humanities, business, etc. While methods vary by discipline, the emphasis on
ensuring accurate and honest collection remains the same.
Data collection is one of the most important stages in conducting a research. You
can have the best research design in the world but if you cannot collect the required
data you will be not be able to complete your project. Data collection is a very
demanding job which needs thorough planning, hard work, patience, perseverance and
more to be able to complete the task successfully. Data collection starts with
determining what kind of data required followed by the selection of a sample from a
certain population. After that, you need to use a certain instrument to collect the data
from the selected sample.

3.3.1. Sources of Data:

Generally we can collect data from two sources, primary sources and secondary
sources. Data collected from primary sources are known as primary data and data
collected from secondary sources are called secondary data.
Primary data are also known as raw data. Data are collected from the original
source in a controlled or an uncontrolled environment. Example of a controlled
environment is experimental research where certain variables are being controlled by
the researcher. On the other hand, data collected through observation or questionnaire
survey in a natural setting are examples data obtained in an uncontrolled environment.
Secondary data are data obtained from secondary sources such as reports, books,
journals, documents, magazines, the web and more.

3. 20
 Measurement and Data

3.3.2. The importance of Ensuring Accurate and Appropriate Data Collection:

Regardless of the field of study or preference for defining data (quantitative, qualitative),
accurate data collection is essential to maintaining the integrity of research.
Both the selection of appropriate data collection instruments (existing, modified or newly
developed) and clearly delineated instructions for their correct use reduce the likelihood
of errors occurring.
Consequences from improperly collected data include:
1) Inability to answer research questions accurately.
2) Inability to repeat and validate the study.
3) Distorted findings resulting in wasted resources.
4) Misleading other researchers to pursue fruitless avenues of investigation.
5) Compromising decisions for public policy.
6) Causing harm to human participants and animal subjects.
While, the degree of impact from faulty data collection may vary by discipline and the
nature of investigation, there is the potential to cause disproportionate harm when these
research results are used to support public policy recommendations.

3.3.3. Searching World Wide Web for Data:

There are basically three different approaches to search the WWW. Two of them are
well known and used frequently. The first is to use search engines that index all the
WWW as a full text database. The second is to use Internet directories (catalogues or
yellow pages). The third and not yet fully available is to search the WWW as a graph. It
includes the following points:
1) Search Engines:
Most search engines use the crawler-indexer architecture. Crawlers are pieces of
software that traverse the WWW sending new or updated pages to a main server
where they are indexed. That index is used in a centralised fashion to answer
queries submitted from different places in Internet The WWW pages found by the
search engine are ranked, usually using the number of occurrences of the query on
each page. In most cases this is effective, in others may not have any meaning,
because relevance is not fully correlated with query occurrence. The user can refine
the query by constructing more complex queries based on the previous answer. As
the users receive only a subset of the answer (the first 10 to 100 matches), the
search engine should keep each answer in memory, such that is not necessary to
recompute it if the user asks for the next subset. Search engines user interfaces in
addition to words, allow to filter pages by using boolean operators and geographic,
language or date segmentation.

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M. B. A. (Sem. – I) Business Research Methods
2) WWW Directories:
The best example of WWW directories is Yahoo. Directories are hierarchical
taxonomies (trees) that classify human knowledge. The main advantage of this
technique is that if we find what we are looking for, the answer will be in most cases
useful.
On the other hand, the main disadvantage is that the classification is not specialized
enough and that not all WW pages are classified. The last problem is worse every
day as the WWW grows. The efforts to do automatic classification in AI are very old.
However, until today, natural language processing is not 100% effective to extract
relevant terms from a document. Nowadays, classification is done by a limited
number of people.
3) Finding the Needle in the Haystack:
One problem with full-text retrieval is that although many queries can be effective,
many others are a total deception. The main reason is that a set of words do not
capture all the semantics of a document. There is too much contextual information
that can be explicit or even implicit, which we understand when we read.
Example: Suppose that we want to learn oriental games as Shogi or Go. For the
first case, searching for Shogi will give you very fast good WWW pages where we
can find what Shogi is (a variant of chess) and its rules. However, for Go the task is
complicated, because in opposition to Shogi, is not a unique word in English.
4) Improvements to Inverted Files:
Most indices use variants of the inverted file. An inverted file is a list of sorted words
(vocabulary), each one having a set of pointers to the pages where it occurs. As we
mentioned before, a set of frequent words or stopwords are not indexed. This
reduces the size of the index. Also, it is important to point out that a normalized view
of the text is indexed. Normalizing operations include removal of punctuation and
multiple spaces to just one space between each word, uppercase to lowercase
letters, use of synonyms through a thesaurus, etc.
5) Visual Query Languages:
Traditional systems used words and boolean operations (and or, butnot) to retrieve
information. However, common users many times are confused by these operators,
partly due to how we use logical connectives in normal language. That problem still
remains today, but search engines have improved the searching interfaces to make
things more clear (for example, using “all of”, “some of” or “none of” the words).
Another solution is to use a visual metaphor to represent the boolean operations.
Example: A spatial relation, where the horizontal axis specify groups of words that
must be together while the vertical axis specifies that a least one of the groups must
be present.

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 Measurement and Data
6) Visual Browsing:
Most visual representations focus on some specific aspects. In text retrieval we can
distinguish visualisations for a single document, several documents or queries. Most
of the time only one of those elements is visualised. In the last years, several visual
metaphors have been designed, for each element, describing next some of them.

3.4. Types of Data/Sources of Data:

Data can be defined as the quantitative or qualitative values of a variable. It can be
numbers, images, words, figures, facts or ideas.
Data in itself cannot be understood and to get information from the data one must
interpret it into meaningful information. There are various methods of interpreting data.
Data is one of the most important and vital aspect of any research studies. Researchers
conducted in different fields of study can be different in methodology, but every
research is based on data which is analysed and interpreted to get information.
Data can be broadly classified into two types: Primary data and Secondary data

3.4.1. Primary Data:

Primary data is the information collected or generated by the researcher for the purpose
of the project immediately at hand.
Example: An investigator wants to know about the level of job satisfaction enjoyed by
the workers in different companies. He can prepare a schedule and meet a sample
number of workers and ask for their opinions. This is going to be the information
collected for the purpose of this study and hence becomes primary in character.
Ordinarily, experiments and surveys constitute the principal sources of primary data.
A) Meaning of Primary Data:
Primary data are data that were previously unknown and which have been obtained
directly by the researcher for a particular research project. The information collected
by the researcher directly through instruments such as surveys, interviews, focus
groups or observation. Tailored to his/her specific needs, primary research provides
the researcher with the most accurate and up-to-date data. Primary information is
primary data to which meaning has been added; in other words, the data have been
analysed, inferences have been drawn from them and, thereby, meaning has been
added.
B) Sources of Primary Data:
Sources for primary data are limited and at times it becomes difficult to obtain data
from primary source, because of either scarcity of population or lack of cooperation.
Regardless of any difficulty one can face in collecting primary data; it is the most
authentic and reliable data source. Following are some of the sources of primary
data:

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M. B. A. (Sem. – I) Business Research Methods
1) Experiments:
Primary data can also be collected via experimentation. Experimentation is the
practice of gathering data by selecting matched groups of people, giving them
different treatments or scenarios, controlling related factors in their environments
and checking for differences in their responses.
Experimentation gives us what we call "causal" data. Causal data helps us
explain cause and effect relationships. Experimenting helps us try to answer
"why" someone is doing something and what influences their buying behaviour.
A common example of experimentation is price testing. To the buyer, price
will be the final emotional factor that determines, whether or not they will give us
their hard earned money. Depending on the product and market segment, price
may be the most important factor. How do one know what price is the right
price? Many companies will test certain prices when collecting primary data on
a new menu item that is being developed. Experiments require an artificial or
natural setting in which to perform logical study to collect data. Experiments are
more suitable for medicine, psychological studies, nutrition and for other
scientific studies. In experiments the experimenter has to keep control over the
influence of any extraneous variable on the results.
2) Survey:
Survey research is one of the most important areas of measurement in applied
social research. The broad area of survey research encompasses any
measurement procedures that involve asking questions of respondents. A
"survey" can be anything forms a short paper-and-pencil feedback form to an
intensive one-on-one in-depth interview. It will begin by looking at the different
types of surveys that are possible. These are roughly divided into two broad
areas: Questionnaires and interviews.
a) Questionnaire:
It is the most commonly used method in survey. Questionnaires are a list of
questions open-ended or close ended for which the respondent gives
answers. Questionnaire can be conducted via telephone, mail, live in a
public area or in an institute, through electronic mail or through fax and other
methods.
b) Interview:
Interview is a face-to-face conversation with the respondent. In interview the
main problem arises when the respondent deliberately hides information
otherwise it is an in depth source of information. The interviewer can not only
record the statements the interviewee speaks but one can observe the body
language, expressions and other reactions to the questions too. This
enables the interviewer to draw conclusions easily.

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 Measurement and Data
3) Observations:
Observation is the collection of primary data through observing people, their
actions and the situations they are in. Observation may be the easiest research
to do. Typically, observation is also the most cost effective method. Observation
can also give data that people are not usually willing to tell themselves, such as
their feelings, emotions, attitudes or the motives behind their buying decisions.
Observation can be done while letting the observing person know that he/she is
being observed or without letting him know. Observations can also be made in
natural settings as well as in artificially created environment.
C) Importance of Primary Data:
Importance of primary data cannot be neglected. A research can be conducted
without secondary data, but a research based on only secondary data is least
reliable and may have biases because secondary data has already been
manipulated by human beings. In statistical surveys it is necessary to get
information from primary sources and work on primary data: for example, the
statistical records of female population in a country cannot be based on newspaper,
magazine and other printed sources. One such source is old and secondly they
contain limited information as well as they can be misleading and biased.
1) Validity:
Validity is one of the major concerns in a research. Validity is the quality of a
research that makes it trustworthy and scientific. Validity is the use of scientific
methods in research to make it logical and acceptable. Using primary data in
research can improves the validity of research. First-hand information obtained
from a sample that is representative of the target population will yield data that
will be valid for the entire target population.
2) Authenticity:
Authenticity is the genuineness of the research. Authenticity can be at stake, if
the researcher invests personal biases or uses misleading information in the
research. Primary research tools and data can become more authentic, if the
methods chosen to analyse and interpret data are valid and reasonably suitable
for the data type. Primary sources are more authentic because the facts have
not been overdone. Primary source can be less authentic, if the source hides
information or alters facts due to some personal reasons. There are methods
that can be employed to ensure factual yielding of data from the source.
3) Reliability:
Reliability is the certainty that the research is enough true to be trusted on. For
example, if a research study concludes that junk food consumption does not
increase the risk of cancer and heart diseases. This conclusion should have to
be drawn from a sample whose size, sampling technique and variability is not
questionable. Reliability improves with using primary data. In the similar

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M. B. A. (Sem. – I) Business Research Methods
research mentioned above if the researcher uses experimental method and
questionnaires the results will be highly reliable. On the other hand, if he/she
relies on the data available in books and on internet he/she will collect
information that does not represent the real facts.
D) Advantages of Primary Data:
The following are some of the important advantages of this type of data.
1) First Hand Information:
Primary data are the first-hand account of the situation. It can observe the
phenomenon as it is taking place.
2) Reliable Information:
There is greater scope for reliability of the information. As the investigator
collects the data for himself, he/she can take all precautions to ensure the
reliability of data.
3) Starting Point:
Primary data are the logical starting point for research in severaldisciplines.
Unless someone gathers and accumulates fact or information, there is nobody
of knowledge.
4) Only Source:
For the purpose of knowing opinions, personal qualities, attitudes, etc., primary
data are the only source.
5) Targeted Issues are Addressed:
The organisation asking for the research has the complete control on the
process and the research is streamlines as far as its objectives and scope is
concerned. Researching company can be asked to concentrate their efforts to
find data regarding specific market rather than concentration on mass market.
6) Data Interpretation is Better:
The collected data can be examined and interpreted by the marketers
depending on their needs rather than relying on the interpretation made by
collectors of secondary data.
7) Efficient Spending for Information:
Unlike secondary research where the marketer may spend for information that is
not needed, primary data collections' focus on issues specific to the researcher
improves the chances that research funds will be spent efficiently.
8) Decency of Data:
Usually, secondary data is not so recent and it may not be specific to the place
or situation marketer is targeting. The researcher can use the irrelevant seeming
information for knowing trends or may be able to find some relation with the
current scenario. Thus primary data becomes a more accurate tool since, we
can use data which is useful for us.

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 Measurement and Data
9) Proprietary Issues:
Information collected by using primary research is their own and is generally not
shared with others. Thus, information can be kept hidden from competitors and
potentially offer an "information advantage" to the company that undertook the
primary research. This gives an edge over competitors replying on secondary
data
10) Addresses Specific Research Issues:
Carrying out their own research allows the marketing organisation to address
issues specific to their own situation. Primary research is designed to collect the
information the marketer wants to know (step 2) and report it in ways that benefit
the marketer.
Example: While, information reported with secondary research may not fit the
marketer's needs (e.g., different age groupings) no such problem exists with
primary research since, the marketer controls the research design.
11) Greater Control:
Not only does primary research enable the marketer to focus on specific issues,
it also enables the marketer to have a higher level of control over how the
information is collected. In this way the marketer can decide on such issues as
size of project (e.g., how many responses), location of research (e.g.,
geographic area) and time frame for completing the project
E) Disadvantages of Primary Data:
The chief disadvantages are as follows:
1) Expensive:
Collection of primary data is expensive in terms of both time and money. To
accumulate the needed data, we may have to spend, sometimes, years too.
Imagine the cost involved in such an effort. It is for this reason; individual
researchers try to limit their scope to a manageable level, unlike the studies
undertaken by research organisations.
2) Scope for Bias:
There is greater scope for bias of the researcher. Unless the research
investigator is fair to the respondents and methods of data collection, the results
of the study will not be reliable.
3) Problem of Sample Selection:
Sample selection is yet another problem in the collection of primary data. If the
conclusions of the study are to be meaningful, the researcher must select a
representative sample. But, the selection of such representative sample is not
an easy task.
4) Limitations of Methods:
The limitations of the methods of collecting primary data turn out to be
disadvantageous for these sources.

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M. B. A. (Sem. – I) Business Research Methods
Example: Limitations of observation technique like non-co-operation of
respondents, non-observability of the situation, low reliability of the conclusions,
etc., become the disadvantages of the primary sources of data. The same is true
in case of the other two methods of data collection, viz., questionnaire and
interview.
5) Time Consuming:
To be done correctly primary data collection requires the development and
execution of a research plan. Going from the start-point of deciding to undertake
a research project to the end-point to having results is often much longer than
the time it takes to acquire secondary data, which can be collected in much
lesser time duration.
6) Inaccurate Feed-backs:
In case the research involves taking feedbacks from the targeted audience,
there are high chances that feedback given is not correct. Feedbacks by their
basic nature are usually biased or given just for the sake of it.
7) More number of Resources is Required:
Leaving aside cost and time, other resources like human resources and
materials too are needed in larger quantity to do surveys and data collection

3.4.2. Secondary Data:

Secondary data is data collected by someone other than the user. Common sources of
secondary data for social science include censuses organisational records and data
collected through qualitative methodologies or qualitative research. Primary data, by
contrast, are collected by the investigator conducting the research. Secondary data
analysis saves time that would otherwise be spent collecting data and, particularly in the
case of quantitative data, provides larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own. In addition, analysts of
social and economic change consider secondary data essential, since it is impossible to
conduct a new survey that can adequately capture past change and/or developments.
A) Meaning:
Secondary data is the data that has been already collected by and readily available
from other sources. When we use statistical method with primary data from another
purpose for our purpose it refers to it as secondary data. It means that one
purpose's primary data is another purpose's secondary data. So that secondary
data is data that is being reused. Such data are cheaper and more quickly
obtainable than the primary data. These secondary data may be obtained from
many sources, including literature, industry surveys, compilations from
computerised databases and information systems and computerized or
mathematical models of environmental processes.

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 Measurement and Data
B) Definition:
Following are the definitions of the secondary data:
1) AM.M. Blair:
"Secondary data are those already in existence for some other purpose than the
answering of the question in hand."
C) Characteristics of Secondary Data:
The secondary data are those which are already collected by someone for some
purpose. If data are collected from journals, magazines, annual reports of
companies, government publication, etc., then such data are called as secondary
data. This data may be published or unpublished. The characteristics of secondary
data are explained below:
1) Insight into Total Situation:
The purpose of the available materials is to explore the nature of the data and
the subjects to get an insight into the total situation. While looking for the data
required by the researcher he may uncover more available data than are often
assumed to exist. This contributes significantly to the unfolding of hidden
information.
2) Helpful in Hypothesis Formulation:
The secondary data helps in the formulation of research hypothesis. While an
investigator may have one or two hypotheses which he might have deduced
from theory, the study of available materials may suggest further hypothesis. If a
research idea or hypothesis can be formulated in such a manner that the
available recorded material bears on the question, the use of such material
become possible.
3) Supplementary Information:
Available documents may be used to supplement or to check information
gathered specifically for the purposes of a given investigation.
Example: If one has drawn a random sample of a small group in order to
interview individuals, the accuracy of one‟s sample could be checked by
comparing socio- economic data of the sample, like income, education standard,
caste, family size, etc., with the same data of the most recent census or with
available data in local government offices.
4) Cost, Time and Effort Saving:
In secondary data, information is already created by someone else. So, it saves
cost, time and effort. The researcher gets accurate and ready data.
5) Helps in Testing the Hypothesis:
The available records may help in testing the hypothesis.

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M. B. A. (Sem. – I) Business Research Methods
D) Importance of Secondary Data:
Secondary data can be less valid but its importance is still there.
1) Easily Available:
Sometimes it is difficult to obtain primary data in these cases getting information
from secondary sources is easier and possible. Sometimes primary data does
not exist in such situation one has to confine the research on secondary data.
2) No Issues Regarding in Disclosure:
Sometimes primary data is present but the respondents are not willing to reveal
it in such case too secondary data can suffice.
Example: If the research is on the psychology of transsexuals first it is difficult to
find out transsexuals and second they may not be willing to give information you
want for your research, so you can collect data from books or other published
sources.
3) Help in Comparative Analysis:
Secondary data can be used to make comparisons. Within and between nations
and societies, comparisons can enlarge the scope for generalisations and
insights.
4) Secondary Sources Help Define the Population:
They can be extremely useful both in defining the population and in structuring
the sample researcher wish to take. For instance, government statistics on a
country's agriculture will help to stratify a sample and once researcher have
calculated their sample statistics, the stratified sample can be used to project
those estimates from the sample to the population
E) Factors to be Considered for Secondary Data:
Secondary data tend to cost substantially less than primary data and can be
collected in less time. Because of various limitations in using of secondary data, it
will lead to understand the factors considered while using secondary data. Why,
then, do we ever bother with primary data? Before secondary data can be used as
the only source of information to help solve a research problem, they must be
available, relevant, accurate and sufficient. If one or more of these criteria are not
met, primary data may have to be used. The factors to be considered for secondary
data usage must be satisfied following criteria:-
1) Availability:
It has to be seen that the kind of data you want is available or not. If it is not
available then you have to go for primary data. For some marketing problems,
no secondary data are available.
Example: Suppose J.C. Penney's management was interested in obtaining
consumer evaluations of the physical layout of the company's current catalog as
a guide for developing next year's catalog. It is unlikely that such information is
available from secondary sources. It is probable that no other organisation that

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 Measurement and Data
had collected such data would be willing to make it available. Sears may have
performed such a study to guide in the development of their catalogs; it is,
however, unlikely that a competitor would supply it to Penney's. In this case, the
company would have to conduct interviews of consumers to obtain the desired
information.
Secondary data on the spending patterns, media preferences and lifestyles of
some population segments are very limited. For example, there is a shortage of
data on African-Americans, Hispanics and Asian - Americans.
2) Reliability/Consistency:
The reliability of secondary sources may vary substantially and it is difficult to
ascertain, if insufficient information is available about how the data were
collected and potential sources of bias and errors. It helps considerably if
researcher is able to speak to individuals involved in the collection of the data to
gain some guidance on the level of its accuracy and limitations. There have
been evaluations of the reliability of many large scale official statistical datasets.
Researcher should always try to find such evaluations and ensure the quality is
sufficient for research purpose. The data should be meeting the requirements of
the problem. For this we have two criterions:
a) Units of measurement should be the same.
b) Concepts used must be same and currency of data should not be outdated.
3) Accuracy:
Accuracy is the third major concern of the user of secondary data. When using
secondary data, the original source should be consulted if possible. This is
important for two reasons. First, the original report is generally more complete
than a second or third report. It often contains warnings, shortcomings and
methodological details not reported by the second or third source. In order to
find how accurate the data is, the following points must be considered:
a) Specification and methodology used.
b) Margin of error should be examined.
c) The dependability of the source must be seen.
4) Adequacy/Sufficiency:
Adequate data should be available. Secondary data may be available, relevant
and accurate, but still may not be sufficient to meet all the data requirements for
the problem being researched. For example, a database that contained
accurate, current demographic information on the purchases of various brands
and types of automobiles could still be insufficient in terms of providing
information to assist in developing new products or advertisements.
5) Relevance:
Relevance or reliability refers to the extent to which the data fit the information
needs of their search problem. Even when data are available that covers the

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M. B. A. (Sem. – I) Business Research Methods
same general topic as that required by the research problem, they may not fit
the requirements of the particular problem. Four general problems reduce the
relevance of data that would otherwise be useful.
a) Difference in the Units of Measurement:
First, there is often a difference in the units of measurement.
b) Necessity in Some Applications to Use Surrogate Data:
A second factor that can reduce the relevance of secondary data is the
necessity in some applications to use surrogate data. Surrogate data are a
substitute for more desirable data. This was discussed earlier as surrogate
information error.
c) Definition of Classes:
A third general problem that can reduce the relevance of secondary data is
the definition of classes.
Social class, age, income, firm size and similar category type breakdowns
found in secondary data frequently do not coincide with the exact
requirements of the research problem.
d) Time:
The final major factor-affecting relevancy is time. Generally, research
problems require current data. Most secondary data, on the other hand,
have been inexistence for some time.
F) Advantages of Secondary Data:
Following are the advantages of the secondary data:
1) Ease of Access:
There are many advantages to using secondary research. This includes the
relative ease of access to many sources of secondary data. In the past
secondary data accumulation required marketers to visit libraries or wait for
reports to be shipped by mail. Now with the availability of online access,
secondary research is more openly accessed. This offers convenience and
generally standardised usage methods for all sources of secondary research.
2) Low Cost to Acquire:
The use of secondary data has allowed researchers access to valuable
information for little or no cost to acquire. Therefore, this information is much
less expensive than if the researchers had to carry out the research themselves.
3) Clarification of Research Question:
The use of secondary research may help the researcher to clarify the research
question. Secondary research is often used prior to primary research to help
clarify the research focus.
4) May Answer Research Question:
The use of secondary data collection is often used to help align the focus of
large scale primary research. When focusing on secondary research, the

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 Measurement and Data
researcher may realise that the exact information they were looking to uncover,
is already available through secondary sources. This would effectively eliminate
the need and expense to carry out own primary research.
5) May Show Difficulties in Conducting Primary Research:
In many cases, the originators of secondary research include details of how the
information was collected. This may include information detailing the procedures
used in data collection and difficulties encountered in conducting the primary
research. Therefore, the detailed difficulties may persuade the researcher to
decide that the potential information obtained is not worth the potential
difficulties in conducting the research.
G) Sources of Secondary Data:
There are two main sources of secondary data. These sources can be explained
with the following fig. 3.3:

Fig. 3.5: Sources of Secondary Data

1) Internal Sources:
Internal data refers to information that already exists within the company in
which the research problem arises. For instance, in many companies, salesman
routinely record and report their sales. Examples of secondary data include
records of sales, budgets, advertising and promotion expenditures, previous
marketing research studies and similar reports. Use of ssuch secondary data
can help the marketing manager analyse the effect of the different elements of
the marketing mix, develop a marketing plan, make budget and sales territory
allocations and, in general, help in managerial decision-making. The data
compiled usually for record purpose may be used in several studies undertaken
by itself or by an outside research organisation.
2) External Sources:
Much of the secondary data is external in nature. External data refers to
information which is collected by a source external to the firm. All that is
available with outside organisations falls into this category. The sources of

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M. B. A. (Sem. – I) Business Research Methods
external information are quite numerous and vast. These sources again can be
divided into two as follows:
I) Personal Sources:
Personal documents are the documents which are recorded by the individual
himself/herself. The personal document is a spontaneous first person
description by an individual of his/her own actions, experiences and beliefs.
The personal documents include autobiographies, diaries, letters and other
artistic and projective documents. There are many motives of writing a
personal document.
Pleasure can be one such motive, when the person concerned might feel
pleasure. Some people prepare some documents to exhibit or show certain
things. Some persons write certain documents for the sake of gaining
something, might be financial or personal reputation. There are also persons
who have been assigned the duty and responsibility of recording some
important events. Kinds of personal documents are as follows:
a) Diaries:
A diary is written by a person in which he/she records daily something
which according to him is very important. Being personal in nature diary
accounts throw a light on personal experience of the recorder.
b) Autobiographies:
In autobiographies, the author records his/her personal views about
contemporary happenings. These writings usually prove a useful source
material for research in so far as the views of author on the subject are
concerned. These autobiographies can be made available to the society
either during the lifetime of person concerned or after he/she has died.
Autobiographies proved more useful in the research study in the field of
history, politics and languages etc.
c) Letters:
The letters are written by the person concerned to his relatives, friends,
etc. These letters contain purely personal views of the persons
concerned on the problem on which he/she is writing. A problem can be
social, economic, political, personal and impersonal.
d) Memories / Memoirs:
Some persons write down their memories. The main events of their life,
which either might or might not have influenced the course of their life,
are recorded in memories. Memories provide a very important source of
information about the period to which they relate.

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 Measurement and Data
II) Public Sources:
Much of the material for business research is obtained from these sources.
These are public documents. They deal with the matter of different interest.
These sources are again categorised into two as follows:
a) Published Sources:
There are a variety of published sources from which one can get
information for his research work. They are public records and available
to people for investigation and perusal. A brief description of such
published sources is given below:
i) Newspaper:
Newspaper reports, where a reporter was present at the scene might
be thought of as valuable.
However, in many cases the correspondent may highlight only the
eye-catching and the dramatic parts of the total assurance. Reports
are controlled by available space and newspaper‟s policy.
Sometimes, a feature or article an easy, news and an advertisement
published in newspaper may be used as a data in the research study.
ii) Biographies:
Biography is more likely to be about some famous persons or his
outstanding success. Usually in the biography certain sensational
facts are introduced. Biographies should be very carefully accepted
as a source of data in social research, because the events which are
provided for recording are only such which give bright side of the
persons concerned.
iii) Historical Documents:
Historical documents usually deal with the past. The sources of
historical data are documents, materials of cultural history and
personal sources of authentic observers and witnesses. Data which
are got collected by government agencies should be preferred as
compared to the data got prepared by private agencies.
iv) Public Records:
Public documents are of two types: Published and unpublished.
Published documents include biographies, survey reports and reports
of commissions and committees of enquiries and so on. Unpublished
documents include minutes of meetings of certain committees, notes
and drafts prepared for departmental use, discussion of inter-
departmental meetings.
v) Case Histories:
Case history records are collected in the course of welfare work. The
data of the large and increasing body of case-workers with

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M. B. A. (Sem. – I) Business Research Methods
experience of various forms of pathology can be utilised by the social
scientists very fruitfully in their researches.
b) Unpublished Sources:
Sometimes, public documents are not published for the benefit of many.
Such documents are the matter of public interests. These documents
would be available only at the place of their origin. The example of such
kind is theses submitted to universities by several researchers. Till they
are published by him or by some outside agency, the copy of the thesis
would be available with the researcher and with the library. Besides
these, the proceedings of committees, minutes of meetings, noting on
files are all unpublished sources of information.
These are considered by some organisations as highly confidential and
will not allow others to go through them without permission. Though
unpublished, these sources have their own uses.
Example: To a researcher studying on the „Financial Administration of
University‟, the minutes of the meetings of Finance Committee, Budget
Committee would be of paramount importance.
H) Disadvantages of Secondary Data:
Following are the disadvantages of the secondary data:
1) Quality of Research:
There are some disadvantages to using secondary research. The originators of
the primary research are largely self-governed and controlled by the marketer.
Therefore, the secondary research used must be scrutinised closely, since the
origins of the information may be questionable. Moreover, the researcher needs
to take sufficient steps to critically evaluate the validity and reliability of the
information provided.
2) Not Specific to Researcher's Needs:
In many cases, secondary data is not presented in a form that exactly meets the
researcher's needs. Therefore, the researcher needs to rely on secondary data
that is presented and classified in a way that is similar to their needs.
3) Incomplete Information:
In many cases, researchers find information that appears valuable and
promising. The researcher may not get the full version of the research to gain
the full value of the study. This is because many research suppliers offer free
portions of their research and then charge expensive fees for their full reports.
4) Not Timely:
When using secondary research, one must exercise caution when using dated
information from the past. With companies competing in fast changing
industries, an out-of-date research reports many have little or no relevance to
the current market situation.

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 Measurement and Data
3.5. Questionnaire Method:
A questionnaire is a research instrument consisting of a series of questions and other
prompts for the purpose of gathering information from respondents. Although they are
often designed for statistical analysis of the responses, this is not always the case.
Questionnaires have advantages over some other types of surveys in that they are
cheap, do not require as much effort from the questioner as verbal or telephone surveys
and often have standardised answers that make it simple to compile data. However,
such standardised answers may frustrate users. Questionnaires are also sharply limited
by the fact that respondents must be able to read the questions and respond to them.
Thus, for some demographic groups conducting a survey by questionnaire may not be
practical.
3.5.1. Meaning:
A questionnaire is a form prepared and distributed to secure responses to certain
questions. It is a device for securing answers to questions by using a form which the
respondent fills by himself. It is a systematic compilation of questions that are submitted
to a sampling of population from which information is desired. It is that form of enquiry
which contains a systematically compiled and organised series of questions that are to
be sent to the population samples. It is an important instrument in normative-survey
research, being used to gather information from widely scattered sources.

3.5.2. Definitions:
Following are the definitions of the questionnaire:
1) George Lundberg:
“Fundamentally, the questionnaire is a set of stimuli to which illustrate people are
exposed in order to observe their verbal behaviour under these stimuli.”
2) Pauline V. Young:
“Social scientists use the questionnaire chiefly as a supplementary tool in studying
measurable social phenomenon.”
3) Bogardus:
“A questionnaire is a list of questions to a number of persons for them to answer. It
secures standardised results that can be tabulated and treated statistically.”

3.5.3. Questionnaire Construction:

Questionnaire is framed with the help of certain material. It is necessary to make
arrangement of that material in proper manner. This arrangement is known as arranging
of subjects or steps of questionnaire. The steps in construction of questionnaire are
explained below:

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M. B. A. (Sem. – I) Business Research Methods
1) Intellectual Level of the Respondent:
Before we select the method of questionnaire for collecting data, it is to be kept in
mind that such method should suit the subject of study. If the object of study is to
collect direct facts, views and unknown information then the questionnaire method is
useful. But, to make it really useful the intellectual level of the respondent has to be
kept in view. The question should suit the intellectual level for whom it is meant. If
the question, its language and its wordings are not in accordance with the
intellectual level of the respondent, then it would not be possible for the informant to
furnish correct replies. In this situation, the purpose of the study will not be fulfilled.
2) Depth of the Questionnaire:
The questionnaire should be deep. It means that, the question should cover all the
aspects of the problems. It is also meant that, the whole area of the problem should
be perfectly selected and the question should be selected accordingly. If the area is
not settled it will be difficult to frame it properly. There is ever likelihood of certain
aspects being left out. In this situation the respondent may not be enthusiastic about
giving the answer as required. Generally, the questionnaire contains an appeal to
the respondent. This is known as respondent appeal. This is intended at requesting
the respondent to co-operate in the task of giving answers. The attempt to establish
rapport is done through words.
3) Experience and Formulation of Questionnaire:
In order to make use of the questionnaire in proper manner, the researcher or the
framer of the questionnaire should take advantage of the past experience. He/she
should have knowledge about the subject which he is going to make study. He/she
can also take help from others to know the subject. Persons in the position should
be taken into consideration. The questionnaire should be, so formulated that, it does
not become burdensome. If there are too many questions, the respondents are
likely to lose interest. Normally a questionnaire should not contain more than 40 to
50 questions.
4) Utility of Questionnaire:
The most important step that researcher or framer of the questionnaire should take
is to make the questionnaire interesting and useful. It means that he/she should
frame such questions that are of interest to the informant. If they are useful and
interesting, the study will be complete and its objects will be achieved.

3.5.4. Precaution in Construction of Questionnaire:

The researcher or the framer of the questionnaire should take following precautions
while constructing questionnaire:
1) Questions Should be Simple, Unambiguous and Clear:
Questionnaire should be simple and clear. The questions should not be ambiguous.
It should not be full of difficult words and unknown phraseology.
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 Measurement and Data
The questions should be simple and suit the level of the intelligence of the
informants. Very complicated questions should be avoided otherwise it will lose its
importance.
2) Stimulating for the Informants:
Answers to the questions are to be furnished by the respondents. If the questions
are not such that they stimulate the informants to give answers, the whole purpose
will be defeated.
3) Limited Number of Questions:
A questionnaire should not contain a large number of questions. If there are a large
number of questions, the respondent‟s shall lose interest in them. Generally,
informants do not want to be bothered with too many questions.
If they feel that they are being subjected to unnecessary work, they start giving
unrelated and needless answers. This generally happens when the questionnaire
has a large number of questions.
4) Questions should not Require Deep Thinking and Information:
The questionnaire should be worded in simple language. If certain technical and
difficult words have been used, they should be explained, so that the informants can
gross the real sense of the question.
5) Technical and Special Words Should be Clearly Explained:
Questionnaire should not contain hypothetical questions. Generally, the
respondents give short answers such questions and these answers do not provide
any valuable data or information. The question should neither be suggestive nor of a
nature that the respondents feel that they are being subjected to some direction or
order. The questionnaire should also avoid emotional phraseology and the
respondents should be required to write as well as possible. As far as possible,
subjective and qualitative questions should be avoided and quantitative information
should be solicited.
6) Hypothetical Questions Should Not be Asked:
The researcher should not include hypothetical questions in the questionnaire. It
means that the questions related to a hypothesis should be avoided. Answers to
such questions are small, but the investigator does not gain anything from them.

3.5.5. Methods to Conduct Questionnaire:

Questionnaires are the most commonly used in administering a survey. Within a survey,
different methods can be used for different parts. Questionnaire can be conducted via
telephone, mail, live in a public area or in an institute, through electronic mail or through
fax and other methods. Different methods create mode effects that change how
respondents answer. The most common modes of administration are listed under the
following headings:

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M. B. A. (Sem. – I) Business Research Methods
A) Personal Interview:
Personal Interview is one of the important and powerful tools for the data collection
in business research. The interview technique is a verbal method of securing data
specially in the field research connected with the social or business research.
a) Definitions:
The definitions of personal interview are as follows:
1) Pauline V. Young:
“Personal Interview is an effective, informal verbal and non-verbal
conversation, initiated for specific purpose and focused on certain planned
content analysis.”
2) C. William Emory:
“Personal interviewing is a two-way purposeful conversation initiated by an
interviewer to obtain information that is relevant to some research purpose.”
The person who is interviewing is called as; „interviewer‟ (interrogator) and the
person who is giving interview is called „interviewee‟ or „respondent‟ or
„informant.‟ The difference in roles between interviewer and interviewee are
pronounced. These participants are typically strangers and the topics and
pattern of discussion are dictated by the interviewer. The consequences of the
event are normally minimal in effect on the respondent. He/she is asked to
provide information in the form of facts, attitudes, opinions and intentions. It is to
be noted that, an interview is not the same as conversation or inquiry or
investigation. It is not only the words spoken which matter but also the gestures,
glances, facial expressions, pauses, modulation of voice, intonation, rate of
speech, etc. which also matter a lot. Thus, it is essentially an interactional
process. Personal interview is also known as door-step interview, because the
interviewer calls on the respondent at the house of the latter with a schedule in
his hands to collect material personally from him.
b) Advantages of Personal Interview:
Personal interview has proved to be an important method of research. Some
experts are of the opinion that some topics or problems are unfit for statistical
analysis and the personal interview is the best method of gaining knowledge of
the subject under study. The advantages of personal interview are given below:
1) Facilitates Study of Unknown Events:
Personal interview enables us to know and study even those events that are
not open to observation and which are known to nobody else except the
respondent himself. It may be pointed out that most of the social activities
are of this nature. Thus, they provide the best method for study.
2) Only Method of Studying Abstract and Intangible Factors:
Personal interview is the only method of studying an abstract and intangible
personal factor like attitude, feelings, reactions, etc.

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 Measurement and Data
These factors cannot be observed although they play a very important part in
guiding our activities. No social study is complete unless we have known the
influences of various phenomena upon these factors. It is only the
respondent who knows what has been the effect of particular events upon
him and interview is the only method of extracting this information from him.
3) Study of Event in its Emotional and Historical Background:
Personal interview enables us to study an event in its emotional and
historical background and it is only in these backgrounds that the real
significance of an event can be followed.
Most of our activities are governed by our emotions and feelings and the
circumstances affecting them have an important bearing upon their
occurrence. The narrative type interview enables the interviewer to view
things from respondent‟s point of view.
4) Complete Description:
The best person to narrate any event is the person who has been personally
involved in it. An outside observer can hardly do so with same depth of
feelings. The description given by an interviewer is definitely more complete
from every point of view.
5) Reliability:
The information gathered through personal interviews has been found to be
fairly reliable. If proper controls are exercised, the interviewer is good and
expert, the data secured through personal interview can be used for
sufficiently valid generalisation.
6) Facilitates to Study Past Phenomena:
Through personal interview method it is possible to study even the past
phenomena. For observation purpose it is essential that the event must take
place before the eyes of the observer himself. Some occurrences are so
uncertain in nature; it becomes impossible to observe them personally. This
type of difficulty is totally eliminated in the case of interview.
c) Disadvantages of Personal Interview:
Following are the disadvantages of the personal interview:
1) Validity of Data:
The validity of data collected through personal interview is always of a
doubtful character. There are a large number of sources of bias that may
invalidate the information collected. Controls devised for checking the
creation of bias have not been found to be adequate so far.
2) Absence of Expertise:
Conducting an interview requires a specialised knowledge of highest order.
The interviewer must be an expert of human psychology and human
behaviour. He/she must possess a very forceful personality to prevent the

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M. B. A. (Sem. – I) Business Research Methods
interviewer from telling a lie exaggerating facts. The field workers who are
employed for the purpose hardly possess these great qualities. The result is
that a lot of unreliable and invalid data is collected.
3) Difficult to Make a Person Agreeable:
It is a difficult task to make a person agreeable for interview. If the subject of
interview concerns only the common matters of life, much difficulty may not
be experienced in securing interview, but if study of more intimate and
personal matters required it may be very hard to make them agree to
disclose the secrets of their personal life. The difficulty is still more increased
when the event under study is connected with emotional aspect also.
4) Subjectivity:
Personal interview method has a lot of subjectivity in it. What the interviewer
says largely depends upon the fact as to whom he says. Thus, if the same
persons were to be interviewed by different persons his/her information is
likely to show material variation.
5) No Source of Direct Observation or Verification:
Interview leaves the researcher at the mercy of the respondent. There is no
source of direct observation or verification of what the respondent says.
6) Emotional Influences:
Qualitative type interviews are sufficiently influenced by emotions and
sentiments. They are not sufficiently standardised and do not provide scope
for empirical verification.
B) Telephonic Survey Interviewing:
There is a total revolution in communication system. Now we do not have to go to
the long distances to pass on the information. Sitting in the house, one can almost
talk to anyone in the world. With the outbreak of electronic systems of
communication, researchers also started using these to collect their data.
Telephone is a communication device which is widely used to set up personal
interviews and to screen for rare respondent types. They are known as, telephonic
interviews. This type of data collection method is popular with the marketing
researchers. If the data is short and precise, telephone interviewing can be
successfully carried out for obtaining research data also. Studies have proved that
the data obtained through this and other methods like personal and mail
questionnaire tended to be comparable. In this context, James H. Frey remarks that,
“In the history of survey research, no other technical or procedural innovation, with
the exception of the computer, has made significant impact on this type of data
gathering as the telephone.”
A significant portion of the increased use of telephone can be attributed to the rising
costs and declining response rates experienced by the face-to-face survey.

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 Measurement and Data
In case of telephone surveys, the researcher is required to select his/her
respondents on some basis. He may randomly select some numbers from the
Telephone Directory or use some other method. Generally, the selection would be
on the basis of ending digits.
Example:
One may include all numbers that end with 99 or 88 or 77 or with three digits like
999 or 888 or 777.
In the same way, he can stratify the sample and select respondents on that basis.
For example, he/she may desire to select 10 numbers each from those people
whose names start with A, B, C, etc. Therefore, depending on the purpose, the
researcher may use different types of sampling methods to choose respondents
from the directory.
Telephone interviewing has some substantial advantages and disadvantages as
compared to alternative methods.
a) Advantages of telephonic Survey Interviewing:
The advantages of telephonic survey interviewing are as follows:
1) Low Cost:
The primary advantage of telephone interviewing is its low cost relative to a
personal interview. Where the respondents are widely scattered telephones
are especially economic. Because, all calls are made from the same
location, travel time and expenses are eliminated. It is also useful in reaching
individuals who are located in such remote places that face to face interview
would be difficult and expensive as well as those who may not bother
answering a mailed questionnaire. Thus, a study can be planned and carried
out in a few days over a wide geographical area.
2) Quality of Response:
Another advantage of telephonic interviewing is the quality of response
which is excellent in many cases, depending upon the topic and study
conditions, besides the establishment of proper rapport.
3) Reduces Interviewer Bias:
The interview bias is normally reduced because of the lack of face-to-face
contact between interview and respondent.
4) Reduction in Number of Non-respondents:
Another operational advantage of telephone interviewing is a reduction in the
number of non-respondents. If the prospective respondent is not at home, it
is a simple matter to call back.
5) Creates Sense of Importance:
Telephone interviews generally, incorporate a sense of importance and
priority, especially when a long distance call is involved.

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b) Disadvantages of telephonic Survey Interviewing:
There are certain limitations in using the telephone as the only method. They are
given below:
1) Difficulty in Sample Selection:
Sample selection is a difficult exercise. It may turn out to be quite
unscientific.
Example: Your study is on teenage group of persons and the number you
are trying may not has anyone suitable to your study.
2) Difficulty in Reaching to Sample:
The first requirement of the method is that the respondent must be reachable
by phone. This cause the difficulty in drawing a completely random sample.
There are always a large number of obsolete numbers and newly located
households for which numbers have not yet been published. Near the end of
a directory year it is probable that 20 to 30 percent of actual phone
subscribers are either unlisted or not listed correctly in the current directory.
3) Limit on Length of Interview:
Limit on the length of interview is another disadvantage of the telephone.
Most people tend to be brief over the telephone. Because of this, the
interviewer may find it difficult to arouse interest and confidence in the study.
People are also reluctant to report over telephone such personal matters like
family income, age, etc.
4) Technical Problems:
The communication medium, i.e., telephone may play havoc with the whole
process. If the lines are not working well and due to which either the voice is
not audible or the line is becoming dead quite frequently, it is difficult to carry
on the interview.
C) Email / Internet Survey:
Mail survey is an important method of collection of primary data. Under this method,
the researchers mail the questionnaire to potential respondents who in turn fill and
return them at their convenience. A covering letter is also sent along with the
questionnaire, requesting the respondents to extend their full co-operation by giving
the correct replies and returning the questionnaire duly filled in time. Usually, the
postage expense is borne by the researchers, by sending a self-add ressed and
stamped envelopes. This is a self-administered questionnaire delivered by the
postal services or a courier service. Questionnaires are mailed, faxed or sent by
courier to be self-administered. Return mechanism is generally included in those
questionnaires. Incentives may be used to increase response rate.

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 Measurement and Data
a) Advantages of Email / Internet Survey:
The advantages of email / internet survey are as follows:
1) Low Cost Method:
Mail surveys typically cost less than personal interviews. This method will be
useful where the sample is more geographically dispersed. A mail study can
cost less because it is often a one-person job.
2) Accesses Respondends:
Another value in using mail is that we can contact respondents who might
otherwise be inaccessible. People such as major corporate executives are
difficult to reach in any other way.
When the researcher has no specific person to contact, the mail survey will be
the method to reach to the appropriate respondent.
3) More Time Available to Respondents:
In a mail survey, the respondent can take more time to collect facts, talk with
others or consider replies at length than is possible with the telephone or
personal interview methods. Mail surveys are typically perceived as more
impersonal, providing more anonymity than the other communication modes.
4) Quick Collection:
In mail survey, the questionnaire delivered on computer / intercept is source of
rapid data collection. More complex instruments can be used in this method.
Respondent who cannot be researched by phone may be accessible in this
method.
b) Disadvantages of Email / internet Survey:
The disadvantages of email / internet survey are as follows:
1) Low Response Rate:
The major disadvantage of the mail survey is non-response error. Many studies
have shown that better educated respondents and those more interested in the
topic answer mail surveys. It may be because of absence of interviewer
intervention for probing or explanation. It may be due to anxiety among some
respondents.
2) Unanswered Questions:
We find that some of the questions in the questionnaire are left unanswered by
the respondents. This hampers the very purpose of the study. It may be
because of the inability of the respondents to answer certain questions.
3) Type and Amount of Information:
The second major limitation of mail surveys concerns the type and amount of
information that can be secured. We normally do not expect to obtain large
amounts of information and cannot probe deeply into questions. Respondents
will generally refuse to co-operate with a long and/or complex mail questionnaire
unless they perceive a personal benefit.

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M. B. A. (Sem. – I) Business Research Methods
4) Non Availability of Lists:
To send questionnaire to the samples, there is need for accurate mailing lists. If
such lists are not available it becomes difficult to reach to the respondents.
D) Online Survey Sites:
Online (Internet) surveys site are becoming an essential research tool for a variety
of research fields, including marketing, social and official statistics research. Online
survey research accounted for 20% of global data-collection expenditure in 2006.
They offer capabilities beyond those available for any other type of self-administered
questionnaire.
Online consumer panels are also used extensively for carrying out surveys, but the
quality is considered inferior because the panelists are regular contributors and tend
to be fatigued. Other studies comparing paper-and-pencil questionnaires with Web-
based questionnaires showed that employees preferred online survey approaches
to the paper-and-pencil format. Countries participating in surveys are:
a) United States.
b) Japan.
c) France.
There are also concerns about what has been called "ballot stuffing" in which
employees make repeated responses to the same survey. Some employees are
also concerned about privacy. Even if, they do not provide their names when
responding to a company survey, can they be certain that their anonymity is
protected? Such fears prevent some employees from expressing an opinion.
a) Advantages of Online Surveys:
The advantages of the online survey are as follows:
1) Cheaper:
Web surveys are faster, simpler and cheaper. However, lower costs are not
so straightforward in practice, as they are strongly interconnected to errors.
Because response rate comparisons to other survey modes are usually not
favourable for online surveys, efforts to achieve a higher response rate (e.g.,
with traditional solicitation methods) may substantially increase costs.
2) Less Time Taking:
The entire data collection period is significantly shortened, as all data can be
collected and processed in little more than a month.
3) Less Intrusive:
Interaction between the respondent and the questionnaire is more dynamic
compared to e-mail or paper surveys. Online surveys are also less intrusive
and they suffer less from social desirability effects.

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 Measurement and Data
4) Tailored To The Situation:
Online surveys can be tailored to the situation (e.g., respondents may be
allowed save a partially completed form, the questionnaire may be preloaded
with already available information, etc.).
5) Improvement Can Be Applicable:
Online questionnaires may be improved by applying usability testing, where
usability is measured with reference to the speed with which a task can be
performed, the frequency of errors and user satisfaction with the interface.
b) Disadvantages of Online Survey Site:
The advantages of the online survey are as follows:
1) Invitations to Online Surveys:
Due to the lack of sampling frames many online survey invitations are
published in the form of an URL link on web sites or in other media, which
leads to sample selection bias that is out of research control and to non-
probability samples. Traditional solicitation modes, such as telephone or mail
invitations to web surveys, can help overcoming probability sampling issues
in online surveys. However, such approaches are faced with problems of
dramatically higher costs and questionable effectiveness.
2) Non-response:
Online survey response rates are generally low and also vary extremely from
less than 1% in enterprise surveys with e-mail invitations to almost 100% in
specific membership surveys. In addition to refusing participation,
terminating surveying during the process or not answering certain questions,
several other non-response patterns can be observed in online surveys,
such as lurking respondents and a combination of partial and item non-
response.
3) Questionnaire Design:
Modern web questionnaires offer a range of design features (different
question types, images, multimedia), the use of such elements should be
limited to the extent necessary for respondents to understand questions or to
stimulate the response. It should not affect their responses, because that
would mean lower validity and reliability of data.
4) Post-Survey Adjustments:
The actual survey practice, particularly in marketing research and in public
opinion polling, which massively neglects the principles of probability
samples, increasingly requires from the statistical profession to specify the
conditions where non-probability samples may work.

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3.5.6. Advantages of Questionnaire Method:

Following are the advantages of questionnaire method:
1) Cost-effective:
A questionnaire is a cost-effective survey method. Researchers can survey large
samples of the population across wide geographic areas much less expensively
than conducting face-to-face interviews because they do not need to travel to reach
participants or rent interview space. Mail or telephone questionnaires can be
conducted at a relatively low cost and online surveys are even less expensive.
2) Easy to Analyse:
Computers can easily analyse the results of a questionnaire. Online questionnaires
are easiest to analyse because they are directly imported into a database and
statistically analysed.
Programs like Microsoft Access and SPSS will insert online questionnaire survey
results into spreadsheets and databases, which reduces human error in analysing
the results.
3) Reduces Bias:
Written or electronic questionnaires reduce bias that may occur in face-to-face
interviews. When completing a questionnaire, there are no verbal or visual clues
from an interviewer that may influence the person surveyed. The responses from a
questionnaire are gathered in a standardised manner, so they are more objective
than interview results. A computer program will automatically process responses
and present them objectively, unlike interviewers who subjectively interpret what the
person surveyed said or meant.
4) Less Intrusive:
Questionnaires are less intrusive than other survey methods like focus groups or
interviews. People participating in surveys can complete them whenever they want.
They are also more likely to respond honestly to questions if they know their
answers are anonymous. People are even more likely to answer uncomfortable or
personal questions in an online questionnaire than in a telephone or face-to-face
interview.

3.5.7. Disadvantages of Questionnaire Method:

Following are the disadvantages of questionnaire method:
1) Completion:
Many people do not enjoy completing questionnaires. When volunteers are
appointed to complete questionnaires, the limited responses received may indicate
the biases of the group that responded. They do not present an overall, objective
picture of the research subjects. In addition, respondents who do complete the
questionnaire may answer certain questions but leave others blank. This can result
in gaping holes in the data collection.
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 Measurement and Data
2) Question Bias:
Phrases used in the questionnaire can often skew answers in a particular direction
without given an unbiased picture of what the respondent actually thinks. For
instance, if a host ask respondents to rate a service as either "good" or "bad," the
answer may fall in the middle the respondent may have enjoyed certain aspects of
the service but not others. If the respondent selects "good" as the answer, the host
may mistakenly assume that he/she approves whole heartedly of the service which
may not be the case.
3) Limited Response Types:
Questionnaires can only measure variables for which they can account. It would be
impossible to ask every type of question on a single form the result would be
unwieldy.
If a respondent has an answer that does not lie inside the framework provided and
leaves no space for additional comments, the questionnaire fails to measure the
subject's response adequately.
4) Time Lag:
Questionnaires are sometimes given weeks, even months, after the event that led to
data collection has occurred. Respondents can forget their initial thoughts or
feelings on the matter, leaving the researcher with limited information when
questionnaires come back.
5) Questionable Questions:
If a question is poorly designed or ambiguous, the answers received may not
accurately reflect what the question intended to ask. The information gathered can,
therefore, be misleading at best and completely erroneous at worst.
6) Limited Scope:
Finally, questionnaires are not appropriate for all types of respondents. Young
children, visually impaired individuals or people who cannot communicate verbally
may have difficulty giving appropriate answers. Sometimes, even with assistance,
for example, a person helping the blind the answers received can reflect the bias of
the assistant.

3.5.8. Samples of Questionnaire Method:

The following are various samples of questionnaire method:
A) To Conduct a Study on Absenteeism in a Manufacturing Unit.
Questionnaire for to conduct a study on absenteeism in a manufacturing unit:
1) How often do you take leave without giving information?
a) Always b) Never c) Sometimes
2) What is your opinion regarding the pay?
a) Highly satisfied b) Satisfied d) Dissatisfied e) highly dissatisfied

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M. B. A. (Sem. – I) Business Research Methods
3) What is your opinion regarding the satisfaction of job?
a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied e) Highly dissatisfied
4) Are you satisfied with leave facility?
a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied e) Highly dissatisfied
5) Workers opinion about the job.
a) Heavy work load.
b) Long hours of work.
c) Poor working climate.
6) Duration of the leave taken by an employee in an month.
a) 1 day.
b) 2-3 days.
c) 4-5 days.
d) More than 5 days.
7) Workers opinion about the effect of absenteeism
a) Cause work stress.
b) Delayed performance.
c) Lead to overtime.
d) Less turnover.
e) All the above.
8) Employee opinion for long absence.
a) Family problem.
b) Personal problem.
c) Religious matter.
d) Social obligation.
e) None of the above.
9) Workers reason for leave.
a) Sickness.
b) Lack of interest in job.
c) Poor working conditions.
d) Long working hours.
10) Type of work pressure the employee facing in the organisation.
a) Forced to do work.
b) Improper environment.
c) Strict supervision.

B) To collect Feedback of Training Session:

Questionnaire on to collect feedback of training session:
1) How did you find the quality of the program?
a) poor/below b) average/average c) good d) excellent.
2) To what extent did this program measure up to your expectation.

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 Measurement and Data
a) Far least b) somewhat less c) met expectations d) somewhat more
e) Far exceed.
3) What are the strengths / weaknesses of each trainer?
4) Which of the training methods very effective.
5) Which of the training methods ineffective.
6) Do you agree that training is of sufficient duration?
a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree
e) Strongly disagree.
7) What is your opinion about present training system?
a) Excellent b) Average c) Good d) Below average
8) Do you agree that training is well planned?
a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree
e) Strongly Disagree
9) Do you agree that instructor responses to trainees doubts?
a) Strongly Agree b) Agree c) Neither Agree nor Disagree d) Disagree
e) Strongly Disagree
10) Was the training program helpful in personal growth?
a) Yes b) No

C) Questionnaire for Causes of Small Scale Industries Sickness in India:

1) Who takes care of the maintenance of your machines and equipments?
a) An expert from outside the enterprise.
b) Specialist from inside the enterprise.
c) The employees themselves.
d) Other (specify).
2) What is the pattern of maintenance of the machines and equipment of your
enterprise? at How often do you do maintenance of your machines and
equipments?
a) Daily.
b) Weakly.
c) Monthly.
d) Annually.
3) Dealing with the liquid wastes
a) Throw in the general drainage network without treatment.
b) Throw in the general drainage network after partial treatment.
c) There is a private manufacturing drainage collection system in the enterprise
d) Other (specify).
4) What is the mode of transportation of the final products?
a) Trailers.
b) Trucks.

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M. B. A. (Sem. – I) Business Research Methods
c) Half truck.
d) Quarter truck.
5) What are the types of used equipments and machines? (Approximate ratios)
a) Handy craft equipment.
b) Electric machines.
c) Half-Automatic machines.
d) Automatic machines.

D) Problem Faced by Customer for Online Shopping:

1) What are the problems facing by Assamese people in case of online shopping?
2) What are the problems Indian customers are facing while shopping online at
flipkart, Amazon, snapdeal etc?
3) E-commerce: What are the todays‟s online shopping problems faced by
consumers?
4) What would be the major problems faced by Indians to shop from online
websites of other country?
5) What are problems when shopping online?
6) What problems does a user face when reading news online?
7) Is online shopping a new face of the market?
8) What are the biggest problems your online business faces today?
9) What kind of online shops or products work during Monsoon?
10) Why do you not want to try online shopping?
a) Security problem.
b) There is no need to shop online.
c) Products are not as same as photos.
d) It is expensive.
11) What problems do you face during online shopping?
a) Delivery problem.
b) Products are broken/quality are bad.
c) Poor customer service.
d) Communication problem.
e) Other.
12) Do you aware about your consumer rights when shopping online.
a) Yes.
b) No.

   

3. 52
 Measurement and Data

 Review Questions 

Q.1. What do you mean by measurement? Explain its level.

Q.2. What is measured in research? Explain various problems in measurement in
management research.
Q.3. Explain the concept of scale and few types of scaling techniques.
Q.4. Explain comparative scale techniques in detail.
Q.5. Explain the term data collection? Discuss various sources of data collection.
Q.6. What do you mean by primary data collection? Discuss its sources.
Q.7. What is secondary data? Explain factors to be considered for secondary data.
Q.8. Explain various sources of secondary data in detail.
Q.9. What do you mean by questionnaire? State and explain construction?
Q.10.Explain online survey with its advantages and disadvantages.
Q.11.Write Short Notes on Following:
1) Measurement.
2) Q-Sort.
3) Constant Sum.
4) Force Ranking.
5) Paired Comparison Scale.
6) Data Collection.
7) Personal Interview.

   

3. 53
 U
N
I 4 Sampling
T

4.1. Sampling
4.2. Types of Sampling
4.3. Sampling Size

Introduction:
Researchers usually cannot make direct observations of every individual in the
population they are studying. Instead, they collect data from a subset of individuals a
sample and use those observations to make inferences about the entire population.
Ideally, the sample corresponds to the larger population on the characteristic(s) of
interest. In that case, the researcher's conclusions from the sample are probably
applicable to the entire population. Two general approaches to sampling are used in
social science research. With probability sampling, all elements (e.g., persons,
households) in the population have some opportunity of being included in the sample
and the mathematical probability that any one of them will be selected can be
calculated.

4.1. Sampling:
Sampling is a fundamental aspect of statistics, but unlike the other methods of data
collection, sampling involves choosing a method of sampling which further influences
the data that you will result with. There are two major categories in sampling: Probability
and non-probability sampling.

4.1.1. Meaning:
Sampling is the process of electing units (e.g., people organisations) from a population
of interest so that by studying the sample it may fairly generalise our results back to the
population from which they were chosen. Let's begin by covering some of the key terms
in sampling like "population" and "sampling frame." A sampling is a part of the total
population.

4. 1
M. B. A. (Sem. – I) Business Research Methods
It can be an individual element or a group of elements selected from the population.
Although it is a subset, it is representative of the population and suitable for research in
terms of cost, convenience and time. The sample group can be selected based on a
probability or a non-probability approach. A sample usually consists of various units of
the population. The size of the sample is represented by "n".

4.1.2. Definition:
Following are the definitions of the sampling:
1) Alok Kumar Rai
“Sampling may be defined as the act, process or technique of selecting a
representative part of a population for the purpose of determining the characteristics
of the whole population".
In other words, the process of selecting a sample from a population using special
sampling techniques called sampling. It should be ensured in the sampling process
itself that the sample selected is representative of the population.

4.1.3. Characteristics of Good Sample:

The basic thing in sample selection method is the choice of sample or correct
representative unit or units. Only then it would be possible to arrive at correct results
about the entire population in a short span of life. A good sample is that which fulfils the
objectives of the research. A sample in order to be good should have following
characteristics:
1) Representative Character:
A sample in order to be useful project or research should be representative. It
means that, it should posses the characteristics of other units also. That is why in
the sampling method, all the units are likely to be selected for the research method.
There is no restriction that only a particular unit should be selected. There are
possibilities in order freedom for each unit to be selected for study.
2) Adequate Number of Samples:
In the sampling method, the entire study and results are governed by the
representative units and therefore, it is necessary that their number should be
adequate. With the adequate number only it is possible for us to get the
representative characteristics of the entire population or the universe as it is called.
3) Free From Bias and Prejudices:
The selection of the samples should be objective. It should be free from bias and
prejudices. Then only it would be possible to achieve dependable results, that shall
fulfill the characteristics of the entire population. Investigator has to be very cautious
in this task.

4. 2
 Sampling
4) Conformity to Subject Matter and Means:
It is not possible to get every subject matter or every unit according to the
requirement of the subject matter and it is not possible that, every means should
fulfill the needs of the subject matter. In sampling method, the representative units
selected should be according to the subject matter and means.
5) Use of Common Knowledge:
In the sampling method, in order to achieve the selection of representative units,
several instructions are evolved so that, the results may be dependable and reliable.
These instructions should in no case be restrictions that shall hamper the work of
the investigator. There are certain fields in regard to which it is not possible to
evolve instructions, according to which, the investigator may make selections. For
such situation he/she has to make use of common knowledge or common sense.
Through the use of common knowledge and common sense he can easily select
proper units with representative characteristics.
6) Enabling Us to Measure Error:
The sample must enable us to measure the sample error. In fact, the
representativeness of the sample and the validity of the conclusions depend to a
large extent on these errors. Even if a proper process of selection is employed, the
sample may not be exactly representative of the whole owing to these errors. As
such, a researcher must be in a position to estimate the influence of this error and
declare to the readers the percentage of accuracy of his/her survey results. Of
course, there is a lot of difficulty in estimating this error in case of non-probability
methods of sampling, compared to probability methods. Yet, an attempt in that
direction makes the reader to be sure about the results.
7) It Must be Independent:
All the items of a sample should be selected independently of one another. Further,
all the items of the universe should have the same chance of being selected in the
sample. This means that the selection of a particular unit in one draw has no
influence on the probabilities of selection in any other draw.
8) It Must have Homogeneity:
This means that there is no difference in the nature of units of the universe and that
of the sample.
9) It Must be Representative:
A sample should be so selected that it truly represents the universe, else the results
obtained could be very misleading.
10) It Must be Adequate:
The size of the sample should be adequate, else it may not represent the
characteristics of the entire universe under study.

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M. B. A. (Sem. – I) Business Research Methods

4.1.4. Basic Concepts:

There are various basic concepts in the sampling, which are as follows:
1) Universe:
The term universe is used to denote whatever body of people is being studied. Any
segment of society, so long as it can be replicated, can represent a universe: elderly
people, teenagers, institutional investors, editors, politicians and so on. Effort must
be made to identify the universe that is most relevant to the issue at hand. If, for
example, one wishes to study the opinions of college students, it is necessary to
decide whether the universe should be limited to full-time students or whether it
should also include non degree and part-time students. The way in which these
decisions are made will have an important bearing on the outcome of the survey
and possibly on its usefulness.
The universe must be defined in the light of the objectives of the survey. It can
be expressed in geographical terms (locality, municipality, district, province, country
or some intermediate category) or in sectoral terms (urban population, pottery
manufacturers, fuel wood producers). It is also necessary to place time limits on the
definition of the universe, because its composition and characteristics can change
over time. It is recommended that the universe be given spatial limits that coincide
with standard or official groupings (political, administrative, natural, etc.) in common
use in countries, so that its dimensions can be estimated from information already
available.
2) Statistical Population:
Population refers to all those people with the characteristics which the researcher
wants to study within the context of a particular problem whereas universe means all
existing things, all certain or mankind. The term „population‟ does not necessarily
refer to people. It is a technical term used to describe the complete group of persons
or objects for which results are to be applied. All the doctors in the city, all the
commerce books in the library, all the students in the college, all farmers in the
village, all housewives, all workers in the factory and all the teachers in the
University etc., are the examples of population. Thus, a population constitutes all
items in any field of inquiry. A population may be finite or infinite.
a) Finite:
Dictionary meaning of finite is bounded or limited. A population is said to be
finite, when the number of elements in the population is fixed.
Example: Population of a city.
b) Infinite:
Infinite means endless; without limits; that cannot be measured, calculated or
imagined. A population is said to be infinite, when it is not possible to limit the
number of measurements.
Example: The population of snakes in the forest.

4. 4
 Sampling
3) Sampling Frame:
Once the universe has been defined, information that is a precise as possible has to
be sought on its dimensions and spatial and temporal distribution in order to
construct the sampling frame, this being the basis on which to develop the sampling
design. The sampling frame is the information that locates and defines the
dimensions of the universe and may consist of housing censuses and maps
grouped by locality, district, quarter, etc.; maps of forest cover with types of
vegetation or land use or housing lists in small localities. Sampling frame is the
actual set of units from which a sample has been drawn in the case of a simple
random sample, all units from the sampling frame have an equal chance to be
drawn and to occur in the sample. In the ideal case, the sampling frame should
coincide with the population of interest.
a) Practical Approach for Determining the Sample Frame Expected:
The creation of a sample frame is critical to the sampling process; if the frame is
wrongly defined the sample will not be representative of the target population.
The frame might be 'wrong' in three ways :
i) It contains too many individuals, so that the sample frame contains the target
population plus others who should not be included; we say that the
membership has been under-defined.
ii) It contains too few individuals, so that the sample frame contains the target
population minus some others who ought to be included; we say that the
membership has been over-defined.
iii) It contains the wrong set of individuals, so that the sample frame does not
necessarily contain the target population; we say that the membership has
been ill-defined
b) Creating a Sample Frame is Done in Two-stages:
It includes the following points:
i) Divide the Target Population into Sampling Units:
Examples of valid sampling units might include people (individuals),
households, trees, light bulbs, soil or water samples and cities.
ii) Create a Finite List of Sampling Units That Make Up the Target
Population:
For a discrete population this will literally be a list (for example, of names,
addresses or identity numbers). For a continuous population this 'list' may
not specifiable except in terms of how each sample is to be collected.
Example: When collecting water samples for a study of contaminant levels,
we are only able to say that the sample frame is made up of a specific
number of 50 milliliter sample bottles, each containing a water sample.
The sampling frame in this case definitely differs from the population.

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M. B. A. (Sem. – I) Business Research Methods
Example: It under-represents the categories which either have no a
telephone (e.g. the most poor), have an unlisted number and who were not
at home at the time of calls (e.g. employed people), who do not like to
participate in telephone interviews (e.g. more busy and active people). Such
differences between the sampling frame and the population of interest is a
main cause of bias in surveys and other methods aimed at random
sampling.
4) Sample:
A sample is simply is a portion selected from the larger population. Simply, it can be
said, a sample is a specimen. It is a part taken to represent the whole. A sample is a
selected part, which is used to ascertain the characteristics of the population.
Sample is something to be tested for definite or special purposes. The selection of
portion is made according to some rule. Samples may be random or judgment on
the methods of selection. A sample may be defined as a portion selected from the
larger population. Simply it can say, sample is a specimen. It is a part taken to
represent the whole. A sample is the selected part, which is used to ascertain the
characteristics of the population. Sample is something to be tested for definite or
special purposes.
5) Sample Size Constraints:
According to the law of large numbers, the larger the sample size, the better the
estimates or the larger the sample the closer the "true" value of the population is
approached. Before deciding how large a sample should be, researcher has to
define his study population (who you are including and excluding in your study). The
question of how large a sample should be is a difficult one. Sample size can be
determined by various constraints (funding available, the time constraints etc.)
a) Time Constraints:
Often research results are said to be needed "yesterday." In professionally run
marketing research projects, some time for completing analysis and presenting
results is agreed on. The time period may be too short for anything but a small
sample to be used the larger the study. The more time is usually needed, unless
there are sufficient resources to accommodate reaching a large sample more
quickly, like when an online panel is accessed.
b) Cost Constraints:
A limit on the amount of money available for a study obviously could limit the
sample size. In almost all research situations, information requires funds:
Respondents must be remunerated, researchers and data analysts have
salaries, data storage and processing are not free, etc. Alternatively, the
allotment of a lot of money to a study should not be the sole motivation for large
sample size. Available funds can and usually do, provide an upper bound
constraint on sample size, it should never be the reason for increasing the
sample size beyond that needed to meet the study objectives.

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 Sampling

4.1.5. Essentials of Sampling:

If the sample results are to have any worthwhile meaning, it is necessary that a sample
possesses the following essentials:
1) Representativeness:
A sample should be so selected that it truly represents the universe otherwise the
results obtained may be misleading. To ensure representativeness the random
method of selection should be used.
2) Adequacy:
The size of sample should be adequate, otherwise it may not represent the
characteristics of the universe.
3) Independence:
All items of the sample should be selected independently of one another and all
items of the universe should have the same chance of being selected in the sample.
By independence of selection we mean that the selection of a particular item in one
draw has no influence on the probabilities of selection in any other draw.
4) Homogeneity:
When we talk of homogeneity we mean that there is no basic difference in the
nature of units of the universe and that of the sample. If two samples from the same
universe are taken, they should give more or less the same result.

4.1.6. Steps in Sampling Process:

An operational sampling process can be divided into seven steps as given below:
1) Defining the target population:
Defining the population of interest, for business research, is the first step in
sampling process. In general, target population is defined in terms of element,
sampling unit, extent and time frame. The definition should be in line with the
objectives of the research study.
Example: If a kitchen appliances firm wants to conduct a survey to ascertain the
demand for its micro ovens, it may define the population as 'all women above the
age of 20 who cook (assuming that very few men cook)'. However, this definition is
too broad and will include every household in the country, in the population that is to
be covered by the survey. Therefore, the definition can be further refined and
defined at the sampling unit level, that, all women above the age 20, who cook and
whose monthly household income exceeds Rs. 20,000. This reduces the target
population size and makes the research more focused. The population definition
can be refined further by specifying the area from where, the researcher has to draw
his/her sample, that is, households located in Hyderabad. A well defined population
reduces the probability of including the respondents who do not fit the research
objective of the company.

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M. B. A. (Sem. – I) Business Research Methods
Example: If the population is defined as all women above the age of 20, the
researcher may end up taking the opinions of a large number of women who cannot
afford to buy a micro-oven.
2) Specifying the Sampling Frame:
Once the definition of the population is clear, a researcher should decide on the
sampling frame. A sampling frame is the list of elements from which the sample may
be drawn. Continuing with the microwave oven, an ideal sampling frame would be a
database that contains all the households that have a monthly income above Rs.
20,000. However, in practice it is difficult to get an exhaustive sampling frame that
exactly fits the requirements of a particular research. In general, researchers use
easily available sampling frames like telephone directories and lists of credit card
and mobile phone users. Various private players provide databases developed
along various demographic and economic variables. Sometimes, maps and aerial
pictures are also used as sampling frames. Whatever may be the case, an ideal
sampling frame is one that entire population and lists the names of its elements only
once. A sampling frame error pops up, when the sampling frame does not
accurately represent the total population or when some elements of the population
are missing another drawback in the sampling frame is over representation. A
telephone directory can be over represented by names/household that has two or
more connections.
3) Specifying the Sampling Unit:
A sampling unit is a basic unit that contains a single element or a group of elements
of the population to be sampled. In this case, a household becomes a sampling unit
and all women above the age of 20 years living in that particular house become the
sampling elements. If it is possible to identify the exact target audience of the
business research, every individual element would be a sampling unit. This would
present a case of primary sampling unit. However, a convenient and better means
of sampling would be to select households as the sampling unit and interview all
females above 20 years, who cook. This would present a case of secondary
sampling unit.
4) Selection of the Sampling Method:
The sampling method outlines the way in which the sample units are to be selected.
The choice of the sampling method is influenced by the objectives of the business
research, availability of financial resources, time constraints and the nature of the
problem to be investigated. All sampling methods can be grouped under two distinct
heads, that is, probability and non-probability sampling.
5) Determination of Sample Size:
The sample size plays a crucial role in the sampling process. There are various
ways of classifying the techniques used in determining the sample size.

4. 8
 Sampling
A couple those hold primary importance and are worth mentioning are, whether the
technique deals with fixed or sequential sampling and whether its logic is based on
traditional or Bayesian methods. In non-probability sampling procedures, the
allocation of budget, thumb rules and number of sub groups to be analysed,
importance of the decision, number of variables and nature of analysis, incidence
rates and completion rates play a major role in sample size determination. In the
case of probability sampling, however, formulas are used to calculate the sample
size after the levels of acceptable error and level of confidence are specified. The
details of the various techniques used to determine the sample size will be
explained at the end of the chapter.
6) Specifying the Sampling Plan:
In this step, the specifications and decisions regarding the implementation of the
research process are outlined. Suppose, blocks in a city are the sampling units and
the households are the sampling elements. This step outlines the modus operandi
of the sampling plan in identifying houses based on specified characteristics. It
includes, issues like how is the interviewer going to take a systematic sample of the
houses. What should the interviewer do when a house is vacant? What is the
recontact procedure for respondents who were unavailable? All these and many
other questions need to be answered for the smooth functioning of the research
process. These are guide lines that would help the researcher in every step of the
process. As the interviewers and their co-workers will be on field duty of most of the
time, a proper specification of the sampling plans would make their work easy and
they would not have to revert to their seniors when faced with operational problems.
7) Selecting the Sample:
This is the final step in the sampling process, where the actual selection of the
sample elements is carried out. At this stage, it is necessary that the interviewers
stick to the rules outlined for the smooth implementation of the business research.
This step involves implementing the sampling plan to select the sampling plan to
select a sample required for the survey.

4.1.7. Types of Errors in Sampling:

These are the errors which occur due to the nature of sampling. The sample selected
from the population is one of all possible samples. Any value calculated from the
sample is based on the sample data and is called sample statistic. The sample statistic
may or may not be close to the population parameter.
A) Sampling Error:
In statistics, sampling error is incurred when the statistical characteristics of a
population are estimated from a subset or sample, of that population. Since, the
sample does not include all members of the population, statistics on the sample,
such as means and quintiles; generally differ from parameters on the entire
population.

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M. B. A. (Sem. – I) Business Research Methods
Since, sampling is typically done to determine the characteristics of a whole
population, the difference between the sample and population values is considered
a sampling error. Exact measurement of sampling error is generally not feasible
since the true population values are unknown however, sampling error can often be
estimated by probabilistic modeling of the sample. Sampling error can occur when:
1) Random sampling Errors:
In statistics, the sampling error can be found by deducting the value of a
parameter from the value of a statistic. This type of sampling error occurs where
an estimate of quantity of interest.
Example: An average or percentage will generally be subject to sample-to-
sample variation. An example of the sampling error in evolution would be a
genetic drift, a change in population's allele frequencies due to chance. The
bottleneck effect and the founder effect can be considered as an example of
random sampling error.
2) Bias Problems:
Sampling bias is likely to be a source of sampling errors. The bias problems lead
to sampling errors which have a prevalence to be either positive or negative.
These types of errors are also considered as systematic errors. Sampling error
can be measured and controlled in random samples where each unit has a
chance of selection and that chance can be calculated. In general, increasing
the sample size will reduce the sample error.

B) Non Sampling Error:

Non-sampling error is caused by factors other than those related to sample
selection. It refers to the presence of any factor, whether systemic or random, that
results in the data values not accurately reflecting the 'true' value for the population.
Non-sampling error can occur at any stage of a census or sample study and are not
easily identified or quantified. Non-sampling error can include (but is not limited to):
1) Coverage Error:
This occurs when a unit in the sample is incorrectly excluded or included or is
duplicated in the sample (e.g., a field interviewer fails to interview a selected
household or some people in a household).
2) Non-response Error:
This refers to the failure to obtain a response from some unit because of
absence, non-contact, refusal or some other reason. Non-response can be
complete non-response (i.e., no data has been obtained at all from a selected
unit) or partial non-response (i.e., the answers to some questions have not been
provided by a selected unit). It may occur because of refusal of some units in the
sample to return the completed questionnaire or to grant interview in the case of
face-to face interview or through non-contact.

4. 10
 Sampling
The first kind is called unit (total) non-response. Non-response also occurs,
when a unit provides information to some but not all questions in the
questionnaire. This is called item non-response. Item non-response may be as a
result of irrelevant or sensitive questions in the questionnaire, question not
understood or through fatigue or lack of knowledge.
3) Response Error:
This refers to a type of error caused by respondents intentionally or accidentally
providing inaccurate responses. This occurs when concepts, questions or
instructions are not clearly understood by the respondent when there are high
levels of respondent burden and memory recall required; and because some
questions can result in a tendency to answer in a socially desirable way (giving a
response which they feel is more acceptable rather than being an accurate
response). Response error is the difference between the true value of a
characteristic and the actual value supplied by the respondent or recorded by
the interviewer. Response error occurs as a result of faulty instrument, the
respondent or the interviewer or as a result of interplay of the three.
4) Interviewer Error:
This occurs when interviewers incorrectly record information; are not neutral or
objective influence the respondent to answer in a particular way; or assume
responses based on appearance or other characteristics.
5) Processing Error:
This refers to errors that occur in the process of data collection, data entry,
coding, editing and output.
C) Methods to Reduce the Sampling Errors:
The sampling errors can be reduced by the following methods.
1) By Increasing the Size of Sample:
The sampling error can be reduced by increasing the sample size. If the sample
size n is equal to the population size N, then the sampling error is zero.
2) By Stratification:
When the population contains homogeneous units, a simple random sample is
likely to be representative of the population. But, if the population contains
dissimilar units, a simple random sample may fail to be representative of all
kinds of units, in the population. To improve the result of the sample, the sample
design is modified. The population is divided into different groups containing
similar units. These groups are called strata. From each group (stratum), a sub-
sample is selected in a random manner. Thus, all the groups are represented in
the sample and sampling error is reduced. It is called stratified-random
sampling. The size of the sub-sample from each stratum is frequently in
proportion to the size of the stratum. Suppose a population consists of 1000
students out of which 600 are intelligent and 400 are non-intelligent. Assuming
here this is the only information about the population.

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M. B. A. (Sem. – I) Business Research Methods
A stratified sample of size n = 100 is to be selected. The size of the stratum is
denoted by N1 and N2 respectively and the size of the samples from each
stratum may be denoted by N1 and N2.

4.1.8. Advantages of Sampling Technique:

The sampling technique has the following merits over the complete enumeration survey:
1) More Reliable Results:
Although the sampling technique involves certain inaccuracies owing to sampling
errors, the result obtained is generally more reliable than that obtained from a
complete count.
2) Less Time Consuming:
Since the sample is a study of a part of population considerable time and labor are
saved when a sample survey is carried out. Time saved not only in collecting data,
but also in processing it. For these reasons a sample provides more timely data in
practice that a census.
3) Less Cost:
Although the amount of effort and expense involved in collecting information is
always greater per unit of the sample than a complete census, the total financial
burden of a sample survey is generally less than that of a complete census. This is
because of the fact that in sampling, we study only a part of population and the total
expenses of collecting data is less than that required when the census method is
adopted. This is a great advantage particularly in an underdeveloped economy,
where much of the information would be difficult to collect by the census method for
lack of adequate resources.
4) More Detailed Information:
Since the sampling technique saves time and money, it is possible to collect more
detailed information in a sample survey. For example, if the population consists of
1,000 persons in a survey of the consumption pattern of the people, the two
alternative techniques available are as follows:
a) We may collect the necessary data from each one of the 1,000 people through a
questionnaire containing, say, 10 questions (census method) or
b) We may take a sample of 100 persons (i.e., 10% of population and prepare a
questionnaire containing as many as 10 questions. The expenses involved in
the latter case would almost be the same as in the former, but it will enable nine
times more information to be obtained.
5) The sample method is often used to judge the accuracy of the information obtained
on a census basis. For example, in the population census which is conducted very
often 10 years in our country the field officers employ the sample method to
determine the accuracy of information obtained by the enumerators on the census
basis.

4. 12
 Sampling
6) Sampling Method is the only method that can be used in certain cases. There are
some cases in which the census method is inapplicable and the only practicable
means is provided by the sample method.

4.1.9. Disadvantages of Sampling:

Despite the various advantages of sampling, it is not altogether free from limitations.
Some of the difficulties involved in sampling are stated below:
1) If the information is required for each and every unit in the domain of study, a
complete enumeration survey is necessary.
2) At time the sampling plan may be, so complicated that it requires more time, labour
and money than a complete count. This is so if the size of the sample is a large
proportion of the total population and if complicated weighed procedures are used.
With each additional complication in the survey, the chance of errors multiply and
greater care has to be taken which, in turn, means more time and laboru.
3) Sampling generally requires the services of experts, if only for consultation
purposes. In the absence of qualified and experienced persons, the information
obtained from sample surveys cannot be relied upon. In India, shortage of experts in
the sampling field is a serious hurdle in the way of reliable statistics.
4) A sample survey must be carefully planned and executed otherwise the results
obtained may be inaccurate and misleading. Of course, even for a complete count
care must be taken but serious errors may arise in sampling, if the sampling
procedure is not perfect.

4.2. Types of Sampling Method:

The general aim of all sampling methods is to obtain a sample that is representative of
the target population. By this we mean that, as much as possible, the information
derived from the sample survey is the same (allowing for inevitable variations in the
estimates due to imprecision) as we would find if we carried out a census of the target
population. When selecting a sampling method we need some minimal prior knowledge
of the target population; with this and some reasonable assumptions we can estimate a
sample size required to achieve a reasonable estimate (with acceptable precision and
accuracy) of population characteristics. Two standard categories of the sampling
method or type exist. These two categories are as follows:

Fig. 4.1: Types of Sampling Method

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M. B. A. (Sem. – I) Business Research Methods

4.2.1. Probability Sample:

Probability sampling (a term due to Deming, [Deming]) is a sampling process that
utilises some form of random selection. In probability sampling, each unit is drawn with
known probability or has a non zero chance of being selected in the sample. Such
samples are usually selected with the help of random numbers. With probability
sampling, a measure of sampling variation can be obtained objectively from the sample
itself. In probability samples, each member of the population has a known non-zero
probability of being selected. Probability methods include random sampling, systematic
sampling and stratified sampling. In non probability sampling, members are selected
from the population in some nonrandom manner. These include convenience sampling,
judgment sampling, quota sampling and snowball sampling. The advantage of
probability sampling is that sampling error can be calculated.
A) Simple Random Sample:
Random means without any reason or without any purpose. This is a simple
meaning of the world „random‟. In simple random sampling, each element in the
population has an equal and independent chance of being selected. The
representative character of a sample is ensured by allocating some probability to
each unit of population for being included in the sample. It also makes the selection
of every possible combination of cases in the desired size. This sampling method is
bias-free. This measurement of sample is precisely representative of the universe.
Sampling procedures do in simple random sampling.
The sample units are selected by using a number of methods like lottery
method, tippet‟s tables. While drawing a random sample the population to be
sampled should be clearly defined. Different units should be approximately of equal
size.
It is a simple method and free from bias. The researcher need not exercise his
brain in deciding whether a particular unit can be representative or not. However,
random sampling method is unsuitable, if units are not of equal size. Selection
according to strictly random basis is frequently not possible, as it is very difficult to
have completely catalogued universe.
a) Merits of Random Sampling:
Merits of random sampling method are as follows:
1) It is scientific and eliminates personal bias.
2) No advance knowledge of characteristics of population is required.
3) Assessment of accuracy of result is possible with sample error estimation.
4) It is true representation of universe.
5) It is simple and practicable.
6) It provides reliable and maximum information saving money, time and
labour.

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 Sampling
b) Demerits of Random Sampling:
Demerits of random sampling are as follows:
1) It requires the complete list of universe, but such up to date may not be
available.
2) In field survey, samples may be scattered widely, then is time consuming.
3) If it is small, representation may not be true.
4) For given degree of accuracy, size of sample is being increased.

B) Systematic Sample:
Systematic sampling is similar to the simple random sampling. In this method only
the first unit is selected with the help of random numbers and the rest get selected
automatically according to some predetermined pattern. A systematic sample is one
in which every Kth item (e.g. every tenth item) is selected in a list representing a
population or a stratum. The number K is called the sampling interval. The items of
a population are arranged in a systematic order on the basis of its important
characteristics. This method is popularly used in those cases, where a complete list
of the population from which sample is to be drawn is available. The main
advantage of systematic sampling is its simplicity, operational convenience and
even spread of sample over the population. The technique is faster and less subject
to error than simple random selection.
a) Merits of Systematic Sample:
Merits of systematic sample are as follows:
1) Easy to operate and can be verified at any step.
2) Randomness and probability features are present in this method which
makes sample representative.
b) Demerits:
Demerits of systematic sample are as follows:
1) It works only if complete and up to date frame is available and units are
randomly arranged.
2) Any hidden periodicity in the list will adversely affect the
representativeness of the sample.

C) Stratified Random Sample:

„Stratum‟ means social class or division. Stratify means forming into strata. When
random sampling is arranged according to social class or division, then it is known
as stratified random sampling.
In this method, the whole population that is required to be studied is divided into
different groups or strata. Such strata are based upon a single criterion such as sex,
education, age or on a combination of two or more criterias such as age and
education. A simple random sample of desired number may be taken from each
population stratum with the help of random sampling.
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M. B. A. (Sem. – I) Business Research Methods
The main objective in stratification is to secure a more reliable sample. The
success and failure of the study will very much depend on the strata. So, it is
essential that different variables in the strata must be taken note of and also that
each stratum should be large enough in size so that, selection of items on random
basis becomes easy and possible.
In this method, investigator has greater control over the sample.
a) Merits of Stratified Random Sample:
The following are merits stratified random sample are as follows:
1) Correct stratification, even if it is small will represent the sample.
2) No significant group is left unrepresented.
3) It is more précised and economic.
4) Replacement of case is easy if the original one is not accessible.
b) Demerits of Stratified Random Sample:
The following are demerits stratified random sample are as follows:
1) It is very difficult to divide the universe in homogeneous strata.
2) If strata overlap unsuitable or disproportionate, sample may not be
representative.

D) Area Sampling:
Area sampling is a special form of cluster sampling in which the sample items are
clustered on a geographic area basis. In this kind of sampling, maps rather than lists
or registers serve as basis. Within the area, the researcher may select all the
members of the area or a part of the area may be selected. In the area sampling,
the boundaries of the area must be well defined. Normally, a town or area is divided
into blocks and random sample is adopted to choose blocks. Instead of the
researcher attempting to carry out all this exercise on his own, the divisions already
existing may be preferred. Generally, governmental agencies use area sampling to
collect information about the effectiveness of their programmes like education of
malaria, implementation of family planning etc. Agriculture departments and other
organisations connected with agriculture use area sampling extensively for the
purpose of compiling agricultural statistics. To conduct studies on a wider
geographic area, area sampling is the best method.
a) Merits of Area Sampling:
Merits of area sampling are as follows:
1) It is very flexible as compared to other methods of sampling.
2) It leads to administrative efficiency by permitting the field work to be
concentrated and yet covering a large area.
3) It is of great utility in surveys of undeveloped areas where no up to-date and
accurate frame is available for subdivision of the materials into reasonably
small sample units.

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 Sampling
b) Demerits of Area Sampling:
Demerits of area sampling are as follows:
1) It is likely to cause a large number of errors as it involves a process of
divisions and sub-divisions of the various strata or clusters in different
stages.
2) It leads to greater variability of the estimates than any other method of
sampling,
3) In general, it is less efficient than a suitable single stage random sampling.

E) Cluster Sampling:
Cluster means number of persons or objects in a small or close group. When
sample is selected from a small or close group it is called as, cluster sampling. In
cluster sampling, the population is divided into clusters and random sample has
been drawn either from all clusters or selected clusters. These clusters may be city-
wards, social units. The sampling of clusters from the population is done by simple
or stratified random sampling methods.
Example: A researcher wants to study the problems of rural farmers producing
onion. He/she wants a sample of 10 percent farmers from the villages in the district.
He may select at random 10 percent of the villages (clusters) in the district and then
use as sample for all the farmers producing onion. It is easier to test all farmers in a
few villages than to test a group of farmers scattered at random throughout all the
villages in the district.
The cluster sampling is useful, when basic sampling frame of all elementary
units is not available. With this sampling fieldwork cost is comparatively low.
However, the efficiency of cluster sampling is less as compared to sampling by
elements.
a) Merits of Cluster Sampling:
It includes following merits:
1) Provides significant cost gain.
2) Easier and more practicable
b) Demerits of Cluster Sampling:
It includes the following demerits:
1) If the number of cluster is very large sometimes representiveness is affected.
2) If the number of units in cluster is not same accuracy in results may be
lowered.

F) Multi Stage Sampling:

As the name implies this method refers to a sampling procedure which is carried out
in several stages. The population is distributed into a number of first stage sampling
units and a sample is taken of these first stage units by some suitable method.

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M. B. A. (Sem. – I) Business Research Methods
Each of these first sample units is further subdivided into second stage units and
from these again a sample is taken by some suitable method. Further stage may be
added if required. The method adopted in the first stage may be the same or
different for subsequent stages.
Usually, multistage samples are applied to big enquiries covering a considerable
geographical area, so that the study can be precise and apt to the situation.
Compared with simple random sampling, multistage sampling results in greater
convenience and economy. The cost of sample preparation is greatly reduced by
the fact that the multistage approach does not require complete lists of individual
elements in the population. Multistage sampling leads to more precision in the
study. Each successive stage results in the reduction of the sample frame.

a) Merits of Multi Stage Sampling:

Merits of multi stage sampling are as follows:
1) Comparatively Flexible. It is simple to carry out and results in administrative
convenience by allowing the field work to be concentrated and yet covering a
large area.
2) It is of great significance in survey of underdeveloped area where no
updates and accurate frame is available for sub division of material into
desired sampling units.
3) Under this survey can be conducted with considerable speed.
4) It is helpful in giving larger groups with greater probability of selection and
thereby making sample more representative.
5) It is an appropriate sampling plan in finding out the variability of groups.
b) Demerits of Multi Stage Sampling:
Demerits of multi stage sampling are as follows:
1) It involves a considerable amount of listing.
2) Usually less efficient than others.
3) Listing and totaling is elaborative work.

G) Advantages of Probability Sampling:

The following are the basic advantages of probability sampling methods:
1) Less Dependency:
Probability sampling does not depend upon the existence of detailed information
about the universe for its effectiveness.
2) Unbiased Estimation:
Probability sampling provides estimates which are essentially unbiased and
have measurable precision.
3) Evaluate The Relative Efficiency:
It is possible to evaluate the relative efficiency various sample designs only
when probability sampling is used

4. 18
 Sampling
H) Disadvantages of Probability Sampling:
Despite the great advantages of probability sampling techniques mentioned above it
has certain limitations because of which non-probability sampling is quite often used
in practice. These limitations are:
1) Probability sampling requires a very high level of skill and experience for its use.
2) It requires a lot of time to plan and execute a probability sample.
3) The costs involved in probability sampling are larger as compared to non-
probability sampling.

4.2.2. Non-probability Sampling:

Non probability sampling or judgment sampling depends on subjective judgment. The
Non probability method of sampling is a process where probabilities cannot be assigned
to the units objectively and hence it becomes difficult to determine the reliability of the
sample results in terms of probability. Non-probability sampling is well suited for
exploratory research intended to generate new ideas that, will be systematically tested
later. However, if the goal is to learn about a large population, it is imperative to avoid
judgment of non probabilistic samples in survey research. Unlike probability sampling,
under non-probability sampling certain elements of the population might have a zero
chance of being picked. This is because we cannot accurately determine the
chances/probability of picking a given element so we do not know whether the odds of
picking that element are zero or greater than zero. Non-probability sampling may not
always be a consequence of the sampler's ignorance of the total number of elements in
the population but may be a result of the sampler's bias in the way he chooses the
sample by excluding some elements.
A) Judgment Sampling/ Purposive Sampling:
Purposive non-probability sample is also known as, judgment or judgmental. It is
breaks down into three different methods:
Most similar/dissimilar cases,
Typical Cases and
Critical cases.
Purposive sampling is selecting a sample on the basis of own knowledge of the
population, its elements and the nature of research aims. That is the population is
non-randomly selected based on a, particular characteristic. The individual
characteristics are selected to answer necessary questions about a "certain matter
or product. The researcher is then able to select participants based on internal
knowledge of said characteristic. This method is useful, if a researcher wants to
study, “a small subset of a larger population in which many members of the subset
are easily identified but the enumeration of all is nearly impossible”. Pilot studies are
well suited to this type of non-probability sampling method.

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M. B. A. (Sem. – I) Business Research Methods
Purposive non-probability sampling and stratified probability sampling are very
similar but warn that there is a crucial difference between the two. Researchers
using purposive sampling do not select respondents randomly from each group
within the stratification categories, where as stratified sampling includes random
sampling at its core. All respondents, not only those randomly selected, who
possess the characteristic are included.
a) Merits of Judgment Sampling/ Purposive Sampling:
It includes the following merits:
1) Under proper safeguard, it is economical and time saving.
2) In this, knowledge of composition of universe, ensure the proper
representation of a cross-section of various strata.
3) It is useful when certain units are important to be included to fulfill the
requirement of investigation.
4) It is practicable, when randomization is not possible.
b) Demerits:
It includes the following demerits:
1) Considerable prior knowledge of population is necessary which in most
cases is not possible.
2) If the controlling safeguard is not affective, it is possibility of bias selection.
3) Calculation of sample error is not possible, so the hypothesis framed cannot
be tested.

B) Convenience Sampling:
Convenience sampling is also known as accidental sampling. In this sampling, the
researcher selects the cases that are easily accessible to him. For example, if one
wants to study the behaviour of nurse, the researcher stands outside the hospital
and ask the opinions of those who come out of the hospital about nurse‟s behaviour.
This method is adopted to survey quickly public opinion. Convenience sampling is
quick and economical, but the representativeness is no significant in this sampling.
Convenience sampling includes participants, who are readily available and agree to
participate in a study. Convenience sampling is often called accidental. This is a
relatively easy choice for researchers when a group of people cannot be found to
survey or question.
Example: Convenience sampling may include going to a place of business (mall,
restaurant, etc.,) and questioning or surveying those people who are available and
consent to being questioned. If the researcher is interested in what people think of
hair cutting techniques from a consumer perspective, the researcher may go to a
hair salon and a barber shop and poll those patrons leaving the establishment after
getting their hair cut. While convenience sampling includes only those ready and
available, there is no excuse for sloppiness.

4. 20
 Sampling
a) Merits:
Merits of convenience sampling are as follows:
1) Convenience sampling is very easy to carry out with few rules governing
how the sample should be collected.
2) The relative cost and time required to carry out a convenience sample are
small in comparison to probability sampling techniques. This enables you to
achieve the sample size you want in a relatively fast and inexpensive way.
3) The convenience sample may help you gathering useful data and
information that would not have been possible using probability sampling
technique.

b) Demerits:
Demerits of convenience sampling are as follows:
1) The convenience sample often suffers from biases from a number of biases.
2) Convenience sampling means that the sample is unlikely to be
representative of the population being studied.

C) Quota Sampling:
Quota sampling is a method which is commonly used in marketing researches and
election polls. It is a type of stratified judgment sampling. In quota sampling,
samples of prefixed size are taken from each stratum of a stratified population using
judgment sampling techniques. In this sampling, the population is classified
according to the property under study. Quota is fixed according to the proportion of
different class in the population. The interviewer is assigned a quota of respondents.
It is a less costly and convenient method. It can be completed in a very short
period of time. However, it is not representative and it is biased sampling method.
Quota sampling is similar to stratified sampling only that in this case, after the
population is divided into groups, the elements are then sampled from the group
using the sampler's judgment and as a consequence the method loses any aspect
of being random and can be extremely biased. Quota sampling is a good method to
use to non-randomly select groups based on gender, age, race and ethnicity, to
name a few. In Quota sampling respondents are selected non-randomly on the
basis of their known proportion to the population. It divides the population group into
subgroups and based on the proportions.
a) Merits:
It includes the following merits:
1) It is a combination of stratified and purposive sampling, thus it make best
use of stratification economically.
2) Proper control brings more accuracy in results.
3) It is useful when sample frame is available.

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M. B. A. (Sem. – I) Business Research Methods
b) Demerits:
It includes the following demerits:
1) Control over field work is difficult because of personal bias, hence affecting
results.
2) Since it is not based on random sampling, the sample error as well as
standard error cannot be estimated.
3) May not be true representative, it's not randomly selected.
4) Substitution of strata can affect results.

D) Snowballing Sampling Method:

Snowball sampling is a special non probability method used when the desired
sample characteristic is rare. It may be extremely difficult or cost prohibitive to locate
respondents in these situations. Snowball sampling relies on referrals from initial
subjects to generate additional subjects. While, this technique can dramatically
lower search costs, it comes at the expense of introducing bias because the
technique itself reduces the likelihood that the sample will represent a good cross
section from the population.
Snowball sampling is a technique used to identify potential subjects when
appropriate candidates for study are hard to locate.
It relates to a set of procedures whereby the initial respondents are selected by
probability methods and thereafter, additional respondents are obtained on the
basis of information provided by them. This technique is used to identify elements of
rare populations by referrals.
Example: A manufacturer is interested in marketing a mahogany croquet set for
senior adult players, as the market for this product is very small, the researcher is
required to use this technique in order to accomplish the task economically. Thus,
he may initially survey, say 100 people using probability samples. If he finds 10
croquet players, he can ask them for the names of the other players. Although this
technique has advantage in terms of reduced sample sizes and costs, it involves a
high level of bias because sample units are not independent. Accordingly, it is an
inappropriate sample design for projecting data beyond sample.
a) Merits:
Merits of snowballing sampling methods are as follows:
1) The chain referral process allows the researcher to reach populations that
are difficult to sample when using other sampling methods.
2) The process is cheap, simple and cost-efficient.
3) This sampling technique needs little planning and fewer workforce compared
to other sampling techniques.
b) Demerits:
Demerits of snowballing sampling methods are as follows:

4. 22
 Sampling
1) The researcher has little control over the sampling method. The subjects that
the researcher can obtain rely mainly on the previous subjects that were
observed.
2) Representativeness of the sample is not guaranteed. The researcher has no
idea of the true distribution of the population and of the sample.
3) Sampling bias is also a fear of researchers when using this sampling
technique. Initial subjects tend to nominate people that they know well.
Because of this, it is highly possible that the subjects share the same traits
and characteristics, thus, it is possible that the sample that the researcher
will obtain is only a small subgroup of the entire population.

E) Advantages of Non Probability Sampling:

Following are the advantages of non probability sampling:
1) Useful in Descriptive Comments:
Non-probability sampling methods can be useful, when descriptive comments
about the sample itself are desired. There are also other circumstances, such as
in applied social research, when it is unfeasible or impractical to conduct
probability sampling.
2) No Need A Formal Plan Of Action:
Most non-sampling methods require some effort and organisation to complete,
but others, like convenience sampling, are done casually and do not need a
formal plan of action.
3) More Accurate:
This is more accurate because researcher are targeting a specific group,
therefore your answers will be similar to what the rest of the population (of this
group) will answer.
4) Less Expensive:
The advantage of non probability sampling is its lower cost compared to
probability sampling. They are less expensive fast and accurate. However, one
can say much less on the basis of a non probability sample than on the basis of
a probability sample

F) Disadvantages of Non Probability Sampling:

Following are the disadvantages of non probability sampling:
1) No way to Estimate the Probability:
In non-probability sampling, since elements are chosen arbitrarily, there is no
way to estimate the probability of any one element being included in the sample.
2) No Assurance:
No assurance is given that each item has a chance of being included, making it
impossible either to estimate sampling variability or to identify possible bias.

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M. B. A. (Sem. – I) Business Research Methods
3) Reliability Cannot be Measured:
Reliability cannot be measured in non-probability sampling; the only way to
address data quality is to compare some of the survey results with available
information about the population. Still, there is no assurance that the estimates
will meet an acceptable level of error.
4) No Way to Measure Precision:
Statisticians are reluctant to use these methods because there is no way to
measure the precision of the resulting sample.
5) Assumption Based:
In non-probability sampling, there is an assumption that, there is an even
distribution of characteristics within the population.

4.3. Sampling Size:

Sample size means the number sampling units selected from the population for
investigation. The size of sample directly related to standard of accuracy, time, cost and
administration of investigation. Larger the size, items will represent universe more but
bring difficulty in managing the operation. Smaller in size will not represent universe and
accuracy in result will be lowered. So, it should not be too large or too small, depending
upon the study it should be optimum in size. Sample size relates to how many people to
pick for the study. The question often asked is: How big a sample is necessary for a
good survey? This depends on factors such as:
a) The type of data analysis to be performed.
b) The desired precision of the estimates one wishes to achieve.
c) The kind and number of comparisons that will be made.
d) The number of variables that have to be examined simultaneously.
e) How heterogeneous the sampled population is.
Deciding on a sample size for qualitative inquiry can be even more difficult than
quantitative because there are no definite rules to be followed. It will depend on what
researcher want to know, the purpose of the inquiry, what is at stake, what will be
useful, what will have credibility and what can be done with available time and
resources. One can choose to study one specific phenomenon in depth with a smaller
sample size or a bigger sample size when seeking breadth.

4.3.1. Determining the Size of the Sample:

The size of the sample is an important problem to be decided in case of sampling. This
is because the size has a direct bearing upon accuracy, time, cost and administration of
the survey. Large samples are generally hard to manage and are unfit for detailed
study. But, it may be essential for representative ness. According to Parten, “An
optimum sample in survey is one which fulfils the requirements of efficiency,
representative ness, reliability and flexibility.” The sample should be small enough to
avoid unnecessary expenses and large enough to avoid intolerable sampling error.

4. 24
 Sampling
Factors Determining the Size of the Sample:
The size of the sample depends upon a number of factors. They can be stated as
follows:
1) Homogeneity or heterogeneity of Universe:
If the universe is comparatively homogeneous, a smaller size of the sample may be
sufficient. If all the units were exactly alike one single unit could serve as a sample,
but if the universe is heterogeneous so that very few units are similar, the sample
has to be essentially larger in size.
2) Number of Classes Proposed:
If a larger number of classes are to be formed the sample must be large enough so
that every class may be of a proper size suitable for statistical treatment. If the size
of the sample is small, there may be some classes which may contain one or two
units only. Some may remain totally unrepresented. The result is that they cannot be
analysed properly and the generalisation based upon them will also not be correct.
Thus, larger the number of classes proposed, greater will be the size of the sample.
3) Nature of Study:
The size of the sample also depends upon the nature of study. If an intensive study
is to be made continuing for a pretty long time, large sample is unfit for this purpose.
It is because it will require very large finance and other resources.
4) Practical Consideration:
Practical considerations as availability of finance, time at our disposal, number of
trained field worker, etc., may also be taken as important factors in deciding the size
of the sample. One thing must be made clear at this stage. Although these practical
considerations do weigh heavily in determining the size of the sample, it should
never be done at the cost of accuracy. Any amount of money spent on an
unrepresentative sample is pure and simple waste and must be avoided at all cost.
5) Standard of Accuracy:
It is generally considered that larger the size of the sample, greater is the standard
of accuracy or representativeness. But, mere largeness of size is no guarantee for
representativeness. A small but well selected sample may give better results than a
larger and thoughtlessly selected sample.
6) Size of the Questionnaire or Schedule:
The size of the questionnaire and the nature of questions to be asked is also a
limiting factor for the size of the sample. Larger the size of schedule, more
complicated the questions to be asked, smaller is to the size for proper
administration.
7) Nature of Cases to be Contacted:
The nature of cases to be contacted plays its own part in deciding the size of the
sample. If the cases are geographically scattered, a small sample is more suitable.
On the other hand, if the refusal rate is likely to be heavy, a large sample has to be
selected.

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M. B. A. (Sem. – I) Business Research Methods
8) Types of Sampling Used:
If absolute random sampling has been used, a much larger sample is required.
Random sample is reliable only when sufficiently large number of units has been
selected. Because, it is only in large number of cases that law of statistical regularity
properly works and every clan of units get a chance of being selected. On the other
hand, if stratified sample has been selected then reliability can be achieved in a
much smaller size. But in stratified sampling, the essential condition is that
stratification must be proper. If stratification is unsuitable and improper, a large
number will only add to the bias in the sample.
However, it is to be noted that no rigid number can be prescribed for an optimum size of
the sample. The nature of the problem is the only deciding factor and the common
sense and experience of the researcher is the only guide in this matter.

4.3.2. Practical Considerations in Sampling and Sample Size:

Before selecting samples and determining sample size, the researcher has to take into
consideration the following issues in sound sampling:
1) Some Statistical Principles:
In general, the mathematical principles of chance or probability determine statistical
sampling. Specifically, sampling depends upon the principles of statistical regularity,
stability of mass data and multiplicity of causes. Although the number of items in a
sample is less than that of items in a population, it will reveal the characteristics of
that population. The principle of statistical regularity assumes the condition of
stability of mass data. There are certain stable characteristics of a group of items
which can be measured statistically.
Example: Food prices as a group will reveal a stable characteristic to rise, decline
or remain unchanged over a specified period despite the erratic nature of prices of
specific items during that period. Indeed, because of multiplicity of causation, erratic
items reveal stable characteristics over a period of time. Some of the factors
responsible for price changes include interest rates, rents, weather competition,
government policy and transportation charges.
2) The Problem of Representativeness of Sampling:
The basic point in the selection of a sample is to ensure that, it is as representative
of the universe as possible. Explicitly, the size of a sample does not necessarily
determine its representativeness. Thus, if a relatively small sample is scientifically
selected, it may be more reliable than an arbitrarily selected large sample. The
process of sample selections should be such that every item in the population under
study has the same chance of selection in the sample. A sample which does not
represent the population is called a biased sample.

4. 26
 Sampling
3) The Problem of Sample Size:
A scientific sample is one which in conjunction with representing the population also
consists of enough cases to ensure reliable results. The issue of adequacy of a
sample is highly complex. The size of sample can be determined by taking into
considerations the following information:
a) The designation of the parameters which one intends to study,
b) The range of unreliability permissible in estimates and
c) A crude estimate of the dispersion a studied characteristics.
4) Application of Measurable or Known Probability Sampling Techniques:
It is essential to apply measurable or known probability sampling techniques. There
exist several statistical methods which enable the researcher to measure and
control the risk of errors in the sample estimation. With the increase in the sample
size, these methods tend to reduce the expected discrepancies between the
estimated and the true value.
5) Availability of Methods:
The researcher should be careful to apply simple, straightforward and workable
methods which can be adaptable to the existing facilities and personnel. He/she
should attempt to avoid the application of highly elaborate and complicated
statistical techniques. Only those statistical procedures should be selected which
can be adequately understood and used by enumerators and clerks engaged in the
actual task of collecting and tabulating data.
6) Attainment of a Balance between Maximum Reliability and Minimum
Expenses:
The researcher should make every effort to accomplish atmost reliability of results
for every rupee spent. This task of achieving an optimal balance between minimum
expenses and maximum reliability necessitates adequate experience, thought and
ingenuity on the part of the researcher. He should attempt to avoid the net loss
stemming from the following two pitfalls:
a) Troublesome sample design or too small a sample.
b) Too much precision or a too big sample causing wastage of funds and time.

   

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M. B. A. (Sem. – I) Business Research Methods
 Review Questions 

Q.1. What do you mean by sampling? Explain characteristics of a good sample.

Q.2. What is the essential of sampling? Explain its advantages and disadvantages.
Q.3. Explain the steps of sampling process in detail.
Q.4. Discuss error in sampling along with its types and way to reduce its impact on
research study.
Q.5. Explain the term probability sampling. Discuss any two probabilities sampling in
detail with merits and demerits.
Q.6. What do you mean by non probability sampling? Discuss its types and advantages
disadvantages.
Q.7. What is sample size? Explain the Factors determine size of sampling.
Q.8. Explain practical considerations in sampling and sample size.
Q.9. Write Short Notes on Following:
1) Universe.
2) Statistical Population.
3) Sampling Frame.
4) Sample.
5) Sample Size Constraints.
6) Determination of Sample Size.
7) Sampling Error.
8) Random sampling errors.

   

4. 28
 U
Data Analysis and
N
I 5 Report Writing
T

5.1. Data Processing

5.2. Data Analysis
5.3. Univariate Analysis
5.4. Graphical Representation of Data (Using Ms-Excel)
5.5. Bivariate Analysis
5.6. Regression
5.7. Test of Significance
5.8. Analysis of Variance
5.9. Research Reports: Writing and Presentation

Introduction:
The data collected do not automatically provide answers to research questions. It is the
systematic analysis of data that helps to build an intellectual edifice in which properly
sorted and sifted observations and facts locate their true meaning. In fact, the function
of analysis is to summarise the data in such a manner, that they yield answers to
research questions. The process of data collection also helps to reveal the broader
significance of a research study by linking it to other available knowledge. Hence, in
order to draw meaningful conclusions from a research venture, the data are needed to
be analysed and presented in an appropriate manner.

5.1. Data Processing:

The data, after collection, has to be processed and analysed in accordance with the
outline laid down for the purpose at the time of developing the research plan. This is
essential for a scientific study and for ensuring that we have all relevant data for making
contemplated comparisons and analysis. Processing implies editing, coding,
classification and tabulation of collected data so that they are amenable to analysis. The
term analysis refers to the computation of certain measures along with searching for
patterns of relationship that exist among data-groups.

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M. B. A. (Sem. – I) Business Research Methods

5.1.1. Meaning of Data Processing:

Data is defined as information in its raw form. Data processing is concerned with
editing, coding, classifying, tabulating and charting and diagramming research data.
The essence of data processing is data reduction. Data reduction involves winnowing
out the irrelevant from the relevant data and establishing order from chaos and giving
shape to a mass of data. Data processing refers to the process of converting data from
one format to another. It transforms plain data into valuable information and information
into data. Clients can supply data in a variety of forms, be it excel sheets, audio devices
or plain printed material. Data processing services take the raw data and process it
accordingly to produce sensible information. The various applications of data
processing can convert raw data into useful information that can be used further for
business processes.

5.1.2. Stages in Data Processing:

Companies and organisations across the world make use of data processing services in
order to facilitate their market research interests. Data consists of facts and figures,
based on which important conclusions can be drawn. When companies and
organisations have access to useful information, they can utilise it for strategising
powerful business moves that would eventually increase the company revenue and
decrease the costs, thus expanding the profit margins. Data processing ensures that
the data is presented in a clean and systematic manner and is easy to understand and
be used for further purposes. Data reduction or processing mainly involves various
manipulations necessary for preparing the data for analysis. The process (of
manipulation) could be manual or electronic. It involves editing, categorising the open-
ended questions, coding, computerization and preparation of tables and diagrams. Here
are the steps that are included in data processing:
1) Editing:
There is a big difference between data and useful data. While there are huge
volumes of data available on the internet, useful data has to be extracted from the
huge volumes of the same. Extracting relevant data is one of the core procedures of
data processing. When data has been accumulated from various sources, it is
edited in order to discard the inappropriate data and retain relevant data.
2) Coding:
Even after the editing process, the available data is not in any specific order. To
make it more sensible and usable for further use, it needs to be aligned into a
particular system. The method of coding ensures just that and arranges data in a
comprehendible format. The process is also known as netting or bucketing.

5. 2
 Data Analysis and Report Writing
3) Classification:
The step of classification in general terms can be defined as the arrangement of the
data into groups and classes depending on the resemblance and the similarities.
With the help of the classification of the data, the entire data can be condensed;
with this important characteristics can be very easily noticed.
4) Tabulation:
This is the final step in data processing. The final product i.e., the data is tabulated
and arranged in a systematic format, so that it can be further analysed.

5.1.3. Editing:
Editing is the first step in data processing. Editing is the process of examining the data
collected in questionnaires/schedules to detect errors and omissions and to see that
they are corrected and the schedules are ready for tabulation. When the whole data
collection is over a final and a thorough check up is made. Editing of data is a process
of examining the collected raw data (especially in surveys) to detect errors and
omissions and to correct these when possible. As a matter of fact, editing involves a
careful scrutiny of the completed questionnaires and/or schedules. Editing is done to
assure that the data are accurate, consistent with other facts gathered, uniformly
entered, as completed as possible and have been well arranged to facilitate coding and
tabulation. Mildred B. Parten in his book points out that the editor is responsible for
seeing that the data is:
a) Accurate as possible.
b) Consistent with other facts secured.
c) Uniformly entered.
d) As complete as possible.
e) Acceptable for tabulation and arranged to facilitate coding tabulation.

A) Types of Editing:
There are different types of editing. They are:
1) Editing for Quality:
Editing for quality asks the following questions: are the data forms complete, are
the data free of bias, are the recordings free of errors are the inconsistencies in
responses within limits, are there evidences to show dishonesty of enumerators
or interviewers and are there any wanton manipulation of data.
2) Editing for Tabulation:
Editing for tabulation does certain accepted modification to data or even
rejecting certain pieces of data in order to facilitate tabulation or instance,
extremely high or low value data item may be ignored or bracketed with suitable
class interval.

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M. B. A. (Sem. – I) Business Research Methods
3) Field Editing:
Field editing is done by the enumerator. The schedule filled up by the
enumerator or the respondent might have some abbreviated writings, illegible
writings and the like. These are rectified by the enumerator. This should be done
soon after the enumeration or interview before the loss of memory. The field
editing should not extend to giving some guess data to fill up omissions.
4) Central Editing:
Central editing is done by the researcher after getting all schedules or
questionnaires or forms from the enumerators or respondents. Obvious errors
can be corrected. For missed data or information, the editor may substitute data
or information by reviewing information provided by likely placed other
respondents. A definite inappropriate answer is removed and "no answer" is
entered when reasonable attempts to get the appropriate answer fail to produce
results.

B) Critical Points:
Editors must keep in view the following points while performing their work:
1) They should be familiar with instructions given to the interviewers and coders as
well as with the editing instructions supplied to them for the purpose.
2) While crossing out an original entry for one reason or another, they should just
draw a single line on it so that the same may remain legible.
3) They must make entries (if any) on the form in some distinctive colour and that
too in a standardised form.
4) They should initial all answers which they change or supply.
5) Editor's initials and the data of editing should be placed on each completed form
or schedule.

5.1.4. Coding:
Coding refers to the process of assigning numerals or other symbols to answers, so that
responses can be put into a limited number of categories or classes. Such classes
should be appropriate to the research problem under consideration. They must also
possess the characteristic of exhaustiveness (i.e., there must be a class for every data
item) and also that of mutual exclusively which means that a specific answer can be
placed in one and only one cell in a given category set. Another rule to be observed is
that of undimensionality by which is meant that every class is defined in terms of only
one concept.
Coding is necessary for efficient analysis and through it the several replies may be
reduced to a small number of classes which contain the critical information required for
analysis. Coding decisions should usually be taken at the designing stage of the
questionnaire.

5. 4
 Data Analysis and Report Writing
This makes it possible to precede the questionnaire choices and which in turn is helpful
for computer tabulation as one can straight forward key punch from the original
questionnaires. But, in case of hand coding some standard method may be used. One
such standard method is to code in the margin with a coloured pencil. The other method
can be to transcribe the data from the questionnaire to a coding sheet. Whatever
method is adopted, one should see that coding errors are altogether eliminated or
reduced to the minimum level.

5.1.5. Data Classification:

Classification or categorisation is the process of grouping the statistical data under
various understandable homogeneous groups for the purpose of convenient
interpretation. A uniformity of attributes is the basic criterion for classification and the
grouping of data is made according to similarity. Classification becomes necessary
when there is diversity in the data collected for meaningful presentation and analysis.
However, it is meaningless in respect of homogeneous data. A good classification
should have the characteristics of clarity, homogeneity, equality of scale,
purposefulness and accuracy. Most research studies result in a large volume of raw
data which must be reduced into homogeneous groups if we are to get meaningful
relationships. This fact necessitates classification of data which happens to be the
process of arranging data in groups or classes on the basis of common characteristics.
Data having a common characteristic are placed in one class and in this way the entire
data get divided into a number of groups or classes.
A) Objectives of Classification:
The objectives of classification are as follows:
1) The complex scattered and haphazard data is organised into concise, logical
and intelligible form.
2) It is possible to make the characteristics of similarities and dissimilarities clear.
3) Comparative studies are possible.
4) Understanding of the significance is made easier and thereby good deal of
human energy is saved.
5) Underlying unity amongst different items is made clear and expressed.
6) Data is, so arranged that analysis and generalisation becomes possible.

B) Types of Classification:
Classification can be one of the following two types, depending upon the nature of
the phenomenon involved:
1) Classification according to Attributes:
As stated above, data are classified on the basis of common characteristics
which can either be descriptive (such as literacy, sex, honesty etc.) or numerical
(such as weight, height, income etc.).
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M. B. A. (Sem. – I) Business Research Methods
Descriptive characteristics refer to qualitative phenomenon which cannot be
measured quantitatively; only their presence or absence in an individual item
can be noticed. Data obtained this way on the basis of certain attributes are
known as statistics of attributes and their classification is said to be classification
according to attributes. Such classification can be simple classification or
manifold classification. In simple classification we consider only one attribute
and divide the universe into two classes-one classes consisting of items
possessing the given attribute and the other class consisting of items which do
not possess the given attribute.
2) Classification According to Class-intervals:
Unlike descriptive characteristics, the numerical characteristics refer to
quantitative phenomenon which can be measured through some statistical units.
Data relating to income, production, age, weight etc. come under this category.
Such data are known as statistics of variables and are classified on the basis of
class intervals.

5.1.6. Tabular Representation of Data:

After editing, coding and classification, which ensure that the information on the
schedule is accurate and categorised in a suitable form, the data are put together in
some kinds of tables and may also undergo some other forms of statistical analysis.
Tabulation is the process of summarising raw data and displaying it in compact form for
further analysis. Therefore, preparing tables is a very important step. Tabulation may be
by hand, mechanical or electronic. The choice is made largely on the basis of the size
and type of study, alternative costs, time pressures and the availability of computers
and computer programmes. If the number of questionnaire is small and their length
short, hand tabulation is quite satisfactory. Table can be prepared manually and/or by
computers. For a small study of 100 to 200 persons, there may be little point in
tabulating by computer since this necessitates putting the data on punched cards. But,
for a survey analysis involving a large number of respondents and requiring cross
tabulation involving more than two variables, hand tabulation will be inappropriate and
time consuming.
A) Objectives of Tabulation:
The objectives of tabulation are as follows:
1) To Simplify the Complex Data:
Tabulation presents the data set in systematic and concise form avoiding
unnecessary details. The idea is to reduce the bulk of information (data) under
investigation into a simplified and meaningful form.
2) To Economize Space:
By condensing data in a meaningful form, space is saved without sacrificing the
quality and quantity of data.

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 Data Analysis and Report Writing
3) To Facilitate Comparison:
Since table is divided into various parts and for each part tables are given, the
relationship between various items in the tables can be easily compared.
4) To Facilitate Statistical Analysis:
Tabulation is the phase between classification of data and its presentation.
Various statistical techniques such as measures of average and dispersion,
correlation and regression, time series and so on can be applied to analyse data
and then interpreting the results.
5) To Save Time:
From the tabulated data the information can be understood by less time.
6) To Depict Trend:
Data condensed in the form of table reveal the trend or pattern of data which
otherwise cannot be understood in a descriptive form of presentation.
7) To Help Reference:
When data are arranged table in a suitable form, they can be easily identified
and can also be used as reference for future needs.

B) Components of Table:
Presenting data in a tabular form is an art. Statistical table should contain all the
requisite information in a limited space, but without any loss of clarity. Practice
varies, but explained below are certain accepted rules for the construction of an
ideal table.
1) Table Number:
A table should be numbered for easy identification and reference in future. The
table number may be given either in the center or side of the table, but above
the top of the title of the table. If the number of columns in a table is large, then
these can also be numbered, so that easy reference to these is possible.
2) Title of the Table:
Every table should be given in a suitable title. Title should be clear, precise and
self explanatory. A complete title must explain in brief and concise language: (a)
what the data is (b) where the data are (c) when the data occurred (d) how the
data are classified.
3) Caption (or Box Head):
Caption refers to the columns headings. It explains, what the column represents.
It may consist of one or more columns headings. Under a column heading there
may be subheads. The caption should be clearly defined and placed at the
middle of the column. Caption should be shown in a smaller letter in order to
save space.
4) Body (or Field):
The body of the table contains the numerical information. This is the most vital
part of the table. The collected data are presented in the body of the table.

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M. B. A. (Sem. – I) Business Research Methods
5) Stub:
Stubs are designation of the rows or row headings. They are at the extreme left
and perform the same function for the horizontal rows of numbers in the tables
as the column heading do for the vertical columns numbers. The stubs are
usually wider than column headings but should be kept as narrow as possible.
6) Head note:
It is a brief explanatory statement applying to major part of the materials in the
table. It is used to explain certain points relating to the whole table that have not
been included in the title nor captions or stubs. Head notes may be used to
indicate the units in which the data of the table are expressed. Head notes
should be used only when actually needed. They may be placed in brackets
immediately following the title.
7) Foot Note:
Anything written below the table is called a foot note. It is written to further clarify
either the title captions or stubs.
Example: If the data described in the table pertain to profits earned by a
company, then the foot note may be defined whether it is profit before tax or
after tax. There are various ways of identifying foot notes:
a) Numbering foot notes consecutively with smaller number 1, 2, 3,…..or letters
a, b, c…..or star *, **,…….
b) Sometimes symbols like @ or $ are also used to identify foot notes.
8) Source Data:
The source from where the data contained in the table has been obtained
should be stated. This would help the reader to check the figures and gather, if
necessary, additional information.
Types of Tables:
Tables can be classified as:
a) Univariate tables (Frequency tables).
b) Bivariate tables (Cross tabulation, poly or multivariavtetables.
These can be illustrated as below.

Tables

Univariate Tables Bivariate Tables

(Frequency tables) (Cross tabulation or
multivariate)

(Contains information about (Contains information about two

one variation or more variation
Fig. 5.1: Classification of Table

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 Data Analysis and Report Writing
a) Frequency Table / Univariate Tables:
A frequency table is a table that is used for organising information on how
often something happens. It will list what the subject is that is being tracked
and it can list whatever frequency is needed. Frequency can be listed as
seconds, minutes, hours, days, weeks, months or even years, whatever is
needed. It shows the number of times a list of items occurs, with the use of
tally marks. The frequency (f) of a particular observation is the number of
times the observation occurs in the data. The distribution of a variable is the
pattern of frequencies of the observation. Frequency distributions are
portrayed as frequency tables, histograms or polygons.
b) Bivariate Table/ Cross Tabulation:
After examining the univariate frequency distribution of the values of each
variable separately, the researcher is often interested in the joint occurrence
and distribution of the values of the independent and dependent variable
together. The joint distribution of two variables is called a bivariate
distribution. A bivariate table shows the frequency distribution of the values
of the dependent variable, given the occurrence of the values of the
independent variable. Both variables must be grouped into a finite number of
categories (usually no more than 2 or 3 categories) such as low, medium or
high; positive, neutral or negative; male or female; etc.

5.2. Data Analysis:

Data analysis is a fundamental requirement of research. Its main function is to impart
order to the whole body of information gathered during the course of study. This
demands a systematic treatment of the data collected. In other words, it means
grouping, regrouping, sorting or sifting of data keeping in mind the overall needs of the
research design. The ultimate aim of data-analysis is to provide answers 10 the already
formulated research questions. The information is systematically organised to perform
this function. Particular type of information is grouped together.

5.2.1. Meaning:
According to Johan Galtung, "Data analysis refers to seeing the data in the light of
hypothesis or research questions and the prevailing theories and drawing conclusions
that are as amenable to theory formation as possible." It is the ordering of data into
constituent parts in order to obtain answers to research questions.
Analysis of data is the most skilled task. It should be done by researcher himself. A
familiarity with the background of survey and with all its stages is required for proper
analysis. The steps envisaged in the analysis of data will vary depending on the type of
study.

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M. B. A. (Sem. – I) Business Research Methods
The first step in data analysis will depend on the amount of specified hypotheses we
have. The more specific the hypothesis, the more specific the action. In such a study,
the analysis is almost completely a mechanical procedure.
The task of analysis is reduced to just getting the appropriate combination of data
and reading them off against the instructions for verification and falsification of
hypotheses. But it is a rare possibility in social research. In most cases, data are
collected more according to hunches than to hypotheses. It is difficult to draw the
dividing line between analysis of data and interpretation of data. Two processes merge
imperceptibly.
Analysis involves organising data in a particular manner and then it is the
interpretative idea that governs this task. Without interpretation coming into play the
task of analysis will not complete.
Interpretation is the research operation which is geared to bringing to light the
broader meanings of the research findings or conclusions. Problems of analysis and
interpretations also vary from study to study.

5.2.2. Types of Data Analysis:

In most of the researches a large volume of raw data are used and they are reduced so
that the same may be read easily and can be used for further analysis. The data
analysis of a research in commerce and management can be done using statistical and
/or accounting tools. The various tools used in business research are classified and
shown in the below chart:

Fig. 5.2: Types of Data Analysis

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 Data Analysis and Report Writing
A) Statistical Tools:
Statistics plays a very important role in research .There is hardly any research in
these days, where the statistical data and statistical methods are not used. As
stated earlier, by analysis we mean the computation of certain indices or measures
along with searching for patterns of relationship that exist among the data groups.
Analysis, particularly in case of survey or experimental data, involves estimating the
values of unknown parameters of the population and testing of hypotheses for
drawing inferences. The statistical analysis may, therefore, be categorised as
descriptive analysis and inferential analysis:
1) Descriptive Statistics:
Descriptive statistics are the basic measures used to describe survey data.
They consist of summary descriptions of single variables (also called
"univariate" analysis) and the associated survey sample. Examples of
descriptive statistics for survey data include frequency and percentage response
distributions, measures of central tendency (which include the mean, median
and mode) and dispersion measures such as the range and standard deviation,
which describe how close the values or responses are to central tendencies.
2) Inferential Statistics:
Inferential statistics offer more powerful analyses to be performed on your online
web survey data. As the names suggests, this branch of statistics is concerned
with making larger inferences about social phenomena. This can include
associations between variables, how well your sample represents a larger
population and cause-and-effect relationships. Some examples of inferential
statistics commonly used in survey data analysis are t-tests that compare group
averages, analyses of variance, correlation and regression and advanced
techniques such as factor analysis, cluster analysis and multidimensional
modeling procedures.
B) Accounting Tools:
Financial statements are indicators of the two significant factors, i.e., profitability and
financial soundness. Analysis and interpretation of financial statements refers to
such a treatment of the information contained in the income statement and the
balance sheet so as to afford full diagnosis of the profitability and financial
soundness of the business. A financial analyst can adopt the following accounting
tools for the analysis of the financial statements.

5.3. Univariate Analysis:

Univariate analysis is commonly used in the first, descriptive stages of research, before
being supplemented by more advanced, inferential bivariate or multivariate analysis. A
basic way of presenting univariate data is to create a frequency distribution of the
individual cases, which involves presenting the number of cases in the sample that fall
into each category of values of the variable.

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M. B. A. (Sem. – I) Business Research Methods
This can be done in a table format or with a bar chart or a similar form of graphical
representation. In addition to frequency distribution, univariate analysis commonly
involves reporting measures of central tendency (location). This involves describing the
way in which quantitative data tend to cluster around some value. In univariate analysis,
the measure of central tendency is an average of a set of measurements the word
"average" being variously construed as (arithmetic) mean, median, mode or another
measure of location, depending on the context.

5.3.1. Concept of Univariate Analysis:

Univariate analysis is the simplest form of quantitative (statistical) analysis. The
analysis is carried out with the description of a single variable in terms of the applicable
unit of analysis.
Example: If the variable "age" was the subject of the analysis, the researcher would
look at how many subjects fall into given age attribute categories. Univariate analyses
are used extensively in quality of life research. Univariate analysis is defined as,
analysis carried out on only one ("uni") variable ("variate") to summarise or describe the
variable. However, another use of the term "univariate analysis" exists and refers to
statistical analyses that involve only one dependent variable and which are used to test
hypotheses and draw inferences about populations based on samples, also referred to
as univariate statistics.

5.3.2. Frequency Distribution:

A frequency distribution is a tabular arrangement of data into classes according to the
size or magnitude along with corresponding class frequencies (the number of values fall
in each class). The term 'frequency' is used to denote how frequently a response
appears in a class or category. The data collected from tests and experiment has a
meaning only when it is arranged or classified in a systematic way. Therefore, it is
necessary to organise the data leading to a grouping of responses under frequency
distribution. The classes or categories may be made of some quantitative continuous
data like age, height etc. The frequency distribution of responses may be calculated by
fully marking of ungrouped data. Primary and secondary are the two types of frequency
distribution. Primary analysis or distribution gives the number of classes in each class.
Secondary analysis or distribution is a comparison of frequencies and percentages.

5.3.3. Construction of Frequency Distribution:

As the number observation obtained gets larger. The method discussed above to
condense the data becomes quite difficult and time-consuming. The following steps
should be taken:
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 Data Analysis and Report Writing
a) Select an appropriate number of non-·overlapping class intervals.
b) Determine the width of the class intervals.
c) Determine clams limits (or boundaries) for each class interval to avoid
overlapping.
1) Decide the Number of Class Intervals:
The decision on the number of class groupings depends largely on the judgment of
the individual investigator and/or the range that will be used to group the data.
Although there are certain guidelines that can be used. As a general rule a
frequency distribution should have at least five class intervals (groups).But, not
more than fifteen. The following two rules are often used to decide approximate
number of class in frequent distribution.
2) Determine the Width of the Class Interval:
When constructing the frequency distribution it is desirable that the width of each
class interval should be equal in size. The size (or width) of each class interval can
be determined by first taking the difference between the largest and smallest
numerical values in the data set and then dividing it by the number of class intervals
desired.
3) Determine Class Limits ( Boundaries):
The limits of each class interval should be clearly defined, so that each observation
(elements) of the data set belongs to one and only one class. Each class has two
limits a lower limit and upper limit. The usual practice is to let the lower limit of the
first class be a convenient number slightly below or equal to the lowest value on the
data set In the below table we may take the lower class limit of the first class as 82
and the upper class limit as 85. Thus, the class would be written as 82-85. This
class interval includes all overtime hours ranging from 82 up to but not including 85
hours. The various other classes can be written as:
Overtime Hours Tallies Frequency
(Class intervals)
82 but less than 85 II 2
85 but less than 88 III 3
88 but less than 91 IIII III 9
91 but less than 94 IIII IIII 10
94 but less than 97 IIII I 6
30

5.3.4. Analysis of Frequency Distribution:

In any research, enormous data is collected and to describe it meaningfully, one needs
to summarise the same. The bulkiness of the data can be reduced by organising it into
a frequency table or histogram. Frequency distribution organises the heap of data into a
few meaningful categories. Collected data can also be summarised as a single

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M. B. A. (Sem. – I) Business Research Methods
index/value, which represents the entire data. These measures may also help in the
comparison of data. It is another good way to present a univariate (one-variable)
distribution. Which can be best analysed in the form of different measures of central
tendency which attempt to determine what might variously be termed the typical,
normal, expected or average value of a dataset. Three of them are in general use for
most types of data: the mode, median and mean.
A) Measures of Central Tendency:
Measures of central tendency and dispersion assist in focusing attention on the
clustering (or centering) tendencies of the data sample as well as its range (or
dispersion) tendencies. It is defined as, "the statistical measure that identifies a
single value as representative of an entire distribution."
It aims to provide an accurate description of the entire data. It is the single value
that is most typical /representative of the collected data. The term "number
crunching" is used to illustrate this aspect of data description. The mean, median
and mode are the three commonly used measures of central tendency. Measures of
central tendency and dispersion are often based on a frequency distribution, which
is a graph of the number of times each individual value occurs in a data set. If there
are a large number of random observations, the frequency distribution will tend to
cluster around a central point and form a hump-shaped curve. This curve is known
as the 'normal' or 'Gaussian' curve. The normal curve is also symmetric the curve on
the right side of the hump is a mirror image of the curve on the left side. All
measures of central tendency will indicate the middle of the hump. If you step back
and look at the either end of the gaussian graph (away from its center), you can
view the dispersion or variation (what the data distribution looks like away from the
center).

Fig.5.3: Normal Gaussian Curve

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 Data Analysis and Report Writing
Measures of central tendency are usually summarised with one of three statistics:
the mode, the median or the mean. For any particular application, one of these
statistics may be preferable, but each has a role to play in data analysis. To choose
an appropriate measure of central tendency, the analyst must consider a variable's
level of measurement, the skewness of a quantitative variable's distribution and the
purpose for which the statistic is used Central tendency.

B) Mean:
Mean is the most commonly used measure of central tendency. There are different
types of mean, viz. arithmetic mean, weighted mean, geometric mean (GM) and
harmonic mean (HM). If mentioned without an adjective (as mean), it generally
refers to the arithmetic mean. That mean it is used to summarise interval data. As
the mean may be influenced by outlying data points, it is best used as a measure of
central tendency when the data is normally (symmetrically) distributed. Although
several different means are defined, the arithmetic mean is most commonly used.
The arithmetic mean is calculated by adding all the individual datum values in a
dataset and dividing by the number of values in the dataset. The mean of ordinal
categorical data is often reported in the literature (together with its associated
measure of data spread, SD).
a) Merits of Mean:
The merits of mean are as follows:
1) Precise on Every Value of Data:
The advantage of using mean is that it allows analysing the value of each
number in the string.
2) Unique in Nature:
It is also a unique number, assigning one single mean to every string of
numbers. Further, the mean represents the balancing point, the exact center
of the given number set.
3) Familiar and Easy to Understand:
Mean is also familiar to anyone used to working with averages.

b) Demerits of Mean:
The demerits of mean are as follows:
1) Not Appropriate With Highly Skewed Data:
Skewed data has a long tail on one side. That is, the values on one side of
the mean are much farther from the mean than those on the other side. A
familiar example is income.
2) Sensitive to Extreme Values:
The important disadvantage of mean is that it is sensitive to extreme
values/outliers, especially when the sample size is small. Therefore, it is not
an appropriate measure of central tendency for skewed distribution.
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M. B. A. (Sem. – I) Business Research Methods
3) Can fluctuate Easily:
Very large or very small numbers can distort the answer.
4) Does Not Give Meaningful Value:
Mean cannot be calculated for nominal or non nominal ordinal data. Even
though mean can be calculated for numerical ordinal data, many times it
does not give a meaningful value, e.g., stage of cancer.

C) Mode:
Mode is the value which occurs the greatest number of times in the data. When
each value occur the same numbers of times in the data, there is no mode. If two or
more values occur the same numbers of time, then there are two or more modes
and distribution is said to be multi-mode. If the data having only one mode the
distribution is said to be uni-model and data having two modes, the distribution is
said to be bi-model. Literally, the mode is strictly a measure of the most popular
(frequent) value in a dataset and is often not a particularly good indicator of central
tendency. Despite its limitations, the mode is the only means of measuring central
tendency in a dataset containing nominal categorical values. The mode may also be
used for ordinal categorical data and for interval data, although the median or mean
are more useful in these circumstances. Calculation of mode is as follows:
a) Mode from Ungrouped Data:
Mode is calculated from ungrouped data by inspecting the given data. The value
is selected which occur the greatest numbers of times in the data.
b) Mode from Grouped Data:
When frequency distribution with equal class interval sizes, the class which has
maximum frequency is called model class.

a) Merits of Mode:
The merits of mode are as follows:
1) Easy to Understand and Calculate:
It is easy to understand and simple to calculate.
2) Unaffected by Extreme Values:
It is not affected by extreme large or small values.
3) Easy on Inspection:
It can be located only by inspection in ungrouped data and discrete
frequency distribution.
4) Useful:
It can be useful for qualitative data.
5) Computing Open-end Frequency Table:
It can be computed in open-end frequency table.
6) Can be Located Graphically:
It can be located graphically.

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 Data Analysis and Report Writing
b) Demerits of Mode:
The merits of mode are as follows:
1) Less Defined:
It is not well defined.
2) Not Based on all Values:
It is not based on all the values.
3) Unstable for Small Values:
It is stable for large values and it will not be well defined if the data consists
of small number of values.
4) Less Reliability:
It is not capable of further mathematical treatment.
5) Less Precise:
Sometimes, the data may or may not have one or more than one mode.

D) Median:
Median is the most middle value in the arrayed data. It means, that when the data
are arranged, median is the middle value if the number of values is odd and the
mean of the two middle values, if the numbers of values is even. A value which
divides the arrayed set of data in two equal parts is called median, the values
greater than the median is equal to the values smaller than the median. It is also
known as a positional average. It is defined as the central datum when all of the
data are arranged (ranked) in numerical order. As such, it is a literal measure of
central tendency. When there is an even number of data, the mean of the two
central data points is taken as the median. The median may be used for ordinal
categorical data and for interval data. When analysing interval data, the median is
preferred to the mean when the data are not normally (symmetrically) distributed, as
it is less sensitive to the influence of outliers.
a) Merits of Median:
The merits of median are as follows:
1) Easy to Understand:
It is very simple to understand and easy to calculate. In some cases it is
obtained simply by inspection.
2) Unaffected by Extreme Values:
Median lies at the middle part of the series and hence, it is not affected by
the extreme values.
3) Special Average:
It is a special average used in qualitative phenomena like intelligence or
beauty which are not quantified but ranks are given.
4) Useful in Open-ended Distributions:
It is useful, especially in open-ended distributions since the position rather
than the value of item that matters in median.

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M. B. A. (Sem. – I) Business Research Methods
b) Demerits of Median:
The demerits of median are as follows:
1) Unsuitable for Large Values:
In simple series, the item values have to be arranged. If the series contains
large number of items, then the process becomes tedious.
2) Undependable on all Values:
It is a less representative average, because it does not depend on all the
items in the series.
3) Less Reliable:
It is not capable of further algebraic treatment.
Example: We cannot find a combined median of two or more groups if the
median of different groups are given.
4) Affected by Fluctuation in Values:
It is affected more by sampling fluctuations than the mean as it is concerned
with only one item i.e., the middle item.

5.4. Graphical Representation of Data (Using Ms-excel):

After collecting sufficient data, scientists attempt to correlate their findings and derive
fundamental relationships that may exist between the acquired data. Graphical
representations of data illustrate such relationships among data more readily. A graph is
a diagram that represents the variation of one factor in relation to one or more other
factors. Graphs and charts are generally used for presenting continuous series and time
series. Graph and charts are more accurate and at times, mathematically precise.
These are equally useful for a researcher as well as a layman. They are used for
calculating many types of statistical measures like median, mode, correlation,
interpolation etc. There are several types of graphs and charts are used to present
statistical data.

5.4.1. Bar Charts:

Simply stated, a chart is a graphic representation of selected numeric data in Excel
worksheet. Charts make it easy for users to see comparisons, patterns and trends in
data. Rather than having to scroll through cells of worksheet data, a chart can instantly
give the viewer a "picture" of that data. In Microsoft excel, numbers can be represented
in a chart. On the Insert tab, a variety of chart types, including column, line, pie, bar,
area and scatter can be selected. The basic procedure for creating a chart is the same
no matter what type of chart is selected. As data is changed, the chart is changed. And
the chart will automatically update. The chart type can be selected by choosing an
option from the insert tab's chart group. After a chart type is chosen, such as column,
line or bar, a chart sub-type can be chooses.

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 Data Analysis and Report Writing
Example: After a column chart is chosen, further there are multiple charts that can be
chosen as a two-dimensional chart, a three-dimensional chart, a cylinder chart, a cone
chart or a pyramid chart. There are furthur sub-types within each of these categories.
As mouse pointer is rolled over each option, excel supplies a brief description of each
chart sub-type.
Steps to create a bar chart using MS-excel are as follows:
1) Step 1: Create a column chart:

a) Select cells A3 to D6. You must select all the cells containing the data you want
in your chart. You should also include the data labels.
b) Choose the insert tab.
c) Click the column button in the charts group. A list of column chart sub-types
types appears.
d) Click the clustered column chart sub-type. Excel creates a clustered column
chart and the chart tools context tabs appear.
2) Step 2: Apply a Chart Layout:
Context tabs are tabs that only appear when you need them called Chart Tools.
There are three chart context tabs: Design, layout and format. The tabs become
available when a new chart is created or when there is a click on a chart. The tabs
can be used to customise the chart. The display within a chart can be determined by
applying a layout.
Example: The layout chosen determines whether the chart displays a title, where
the title displays, whether the chart has a legend, where the legend displays,
whether the chart has axis labels and so on. Excel provides several layouts from
which it can be chosen.

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M. B. A. (Sem. – I) Business Research Methods

Before After
a) Select Chart Title. Click on Chart Title and then place your cursor before the C
in Chart and hold down the Shift key while you use the right arrow key to
highlight the words Chart Title.
b) Type Toy Sales. Excel adds your title.
c) Select Axis Title. Click on Axis Title. Place your cursor before the A in Axis.
Hold down the Shift key while you use the right arrow key to highlight the
words Axis Title.
d) Type Sales. Excel labels the axis.
e) Click anywhere on the chart to end your entry.

5.4.2. Pie charts:

Pie charts or circle graphs as they are sometimes known are used to show
percentages. The circle of pie charts represents 100%. The circle is sub-divided into
slices representing data values. The size of each slice shows what part of the 100% it
represents.

Fig.5.4: Lunch Sales

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 Data Analysis and Report Writing
The pie chart is useful for representing the relative proportions of a few categories. The
more categories, the greater the number of "slices", the more difficult the chart is to
read. Although the pie chart may be one of the simplest graphical representations that
can be created in Microsoft Excel, there are still several options that can be chosen to
customise the object. Pie charts can be used anytime wants to show what percent a
particular item represents of a data series.
Steps to create a pie chart using MS-excel are as follows:
1) Step 1: Select the data that is to be included in the pie chart:

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M. B. A. (Sem. – I) Business Research Methods
2) Step 2: From the Insert tab on Excel's ribbon, click on the down arrow under pie in
the charts section. This will expand the pie chart menu.

3) Step 3: Select the first choice in the 2-D pie category.

The initial pie chart will be created and appear in the same spreadsheet as the data.

4) Step 4: Modifying the pie chart design:

Although the chart created in the last section might work just fine for the needs,
many times a few design changes are desired, depending on the type of point that
is been trying to make with the data. To do this, one has to make sure the pie chart
is selected and then opening the design tab under chart tools on the excel ribbon.

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 Data Analysis and Report Writing

If the Chart Layouts category is expanded, there can be observed several different
ways to present the data on the chart. The amounts can be represented as a
percentage of a whole, showing labels on the chart rather than on a legend,
showing the original data or any combination of these items.

For the above example, layout 4 can be choosed which gets rid of the legend and
shows the labels on the pie chart along with the original data.

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M. B. A. (Sem. – I) Business Research Methods

5.4.3. Histogram:
In statistics, a histogram is a graphical representation of the distribution of data. It is an
estimate of the probability distribution of a continuous variable and was first introduced
by, Karl Pearson. A histogram is a representation of tabulated frequencies, shown as
adjacent rectangles, erected over discrete intervals (bins), with an area equal to the
frequency of the observations in the interval. The height of a rectangle is also equal to
the frequency density of the interval, i.e., the frequency divided by the width of the
interval. The total area of the histogram is equal to the number of data.

A histogram may also be normalised displaying relative frequencies. It then shows the
proportion of cases that fall into each of several categories, with the total area equaling,

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 Data Analysis and Report Writing
The categories are usually specified as consecutive, non-overlapping intervals of a
variable. The categories (intervals) must be adjacent and often are chosen to be of the
same size. The rectangles of a histogram are drawn, so that they touch each other to
indicate that the original variable is continuous.
Steps to draw histogram in excel are as follows:
1) Step 1: Enter data that is to be in a histogram in a row and in a different row enter
appropriate bins (i.e., if a user wants to separate grades based on a 10 point scale
60, 70, 80, 90, 100 would be the bins).

2) Step 2: Click on the Tools menu and select Data Analysis. If there is not a Data
Analysis option under the Tools menu, install the add-in. The add-in can be installed
by selecting the Add-Ins option under the Tools menu. Check the box next to
Analysis. Tool Pak and click OK. A window will open.

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M. B. A. (Sem. – I) Business Research Methods
3) Step3: Click on Histogram to select the histogram option and click OK. Another
window opens.

4) Step 4: Select the input range (this is your data) then select the bin range.
5) Step 5: Check the chart output box.

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 Data Analysis and Report Writing
6) Step 6: Click ok.

7) Step 7:- Finished.

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M. B. A. (Sem. – I) Business Research Methods

5.4.4. Problems on Histogram:

The following are different problems of histogram:
1) The Monthly Profit (in Rs.) of 100 Shops are Distributed are as Follows:
(Oct. 2015)
Draw histogram of the following data.
Profit per shop 0-100 100-200 200-300 300-400 400-500 500-600
No. of shops 12 18 27 20 17 06
Determine mode of the distribution graphically.
Y

30
27 29

25
2
No. of Shops

20
20
18

15

10

05

0
250

100 200 300 400 500 600 X

Profit per Shop

f1 f0
Z L1 i
2f1 f0 f2
27 18
200 10
(2 x 27) 18 20
9
200 10
54 18 20
900
200
16
= 200 + 56.25
= 256.25

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 Data Analysis and Report Writing
2) Draw histogram of the following data.
Profit in lakhs (Rs.) 10-20 20-30 30-40 40-50 50-60 60-70
No. of Companies 10 14 24 21 19 14
Also find mode from the graph.
Y
24 24
24

22
19
20

18
No. of Companies

16
16

14

12

10

0
10 20 30 40 50 60 70 X
Profit in Lakhs (Rs)

f1 f0
Z L1 i
2f1 f0 f2
24 16
30 10
(2 x 24) 16 19

8
30 10
48 16 19
80
30
13
= 30 + 6.153
= 36.153

3) Draw histogram of the following data.

Salary in (Rs.) 30-40 40-50 50-60 60-70 70-80 80-90 90-100
No. of Employees 20 30 60 75 115 100 60

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M. B. A. (Sem. – I) Business Research Methods
Also find mode from the graph.
Y

120 115 115

100
110

100

90
No. of Employees

80

70

60

50

40

30

20

10

0 X
77.272
10 20 30 40 50 60 70 80 90
Salary in (‟00 Rs)

f1 f0
Z L1 i
2f1 f0 f2
115 75
70 10
(2 x115) 75 100
40
30 10
230 75 100
40
70 x10
55
400
70
55
= 70 + 7.272
= 77.272

5.4.5. Leaf and Stem Diagram:

Leaf and stem diagram is helpful to have an understanding of the mean, median and
the mode prior to beginning work with stem and leaf plots. Data can be shown in a
variety of ways including graphs, charts and tables. A stem and leaf plot is a type of
graph that is similar to a histogram but shows more information. The stem and leaf plot
summarises the shape of a set of data (the distribution) and provides extra detail
regarding individual values. The data is arranged by place value. The digits in the
largest place are referred to as the stem and the digits in the smallest place are referred
to as the leaf (leaves). The leaves are displayed to the right of the stem.
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 Data Analysis and Report Writing
Stem and Leaf Plots are great organisers for large amounts of information. Stem and
leaf displays organise data so that an entire distribution of scores is quickly and easily
comprehensible. The display breaks each score into two components: a leaf, which is
usually the last digit of the score and a stem, which is everything else. The objective is
to create a layout that looks like this:

In the display (also called a stem plot), the row labeled 9 means that all scores in that
row are between 90 and 99. The leaves - 0, 3, 8 and 8 - in that row stand for scores of
90, 93, 98 and 98.
Use of Excel Sheet to Represent Stem and Leaf Diagrams:
The following figure shows an excel worksheet with scores (in A1:A31), an intermediate
display and a stem and leaf display like the preceding figure. The intermediate display is
the foundation for the stem and leaf display.

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M. B. A. (Sem. – I) Business Research Methods
The scores are arranged in increasing order, which is how they appear in A1:A31. The
intermediate display has numbers representing the stems in a column. That is 90, 80,
70, 60, 50 and 40 in C4:C9. The scores from column A then are placed into the
appropriate row in the intermediate display. Here are the steps for putting the data into
the row:
1) For an intermediate display row, select the subset of scores from the data column.
For the first row, select 90-98 from column A.
2) Right click the selection and choose copy from the pop-up menu.
3) Select the first cell for the row where the selected scores go.
Select cell D4 to begin the first row.
4) Right click the selected cell and choose Paste Special from the pop-up menu to
open the Paste Special dialog-box.
5) In the Paste Special dialog-box, choose Transpose.
This puts the selected column data into the row, with the scores in increasing order.
Going through those steps for each row completes the intermediate display. To
complete the stem and leaf display begin by putting the stems into a column: 9, 8, 7, 6,
5 and 4 into C12:C17. Then use the MOD function to add the leaves. The MOD function
takes two arguments a number and a divisor and returns the remainder. Here are the
steps for using MOD and finishing the display:
1) Select the first cell for the leaf row.
Select D12, the highlighted cell in the figure.
2) From the Math and Trig menu, select MOD to open the Function Arguments dialog-
box for MOD

3) In the Function Arguments dialog-box, enter the values for the arguments.
For number, you want the corresponding entry in the intermediate table, so that is
D4.
For divisor, you want the intermediate display number that corresponds to the stem.
That's cell C4. You also want C4 to be the divisor when you auto fill the remaining
cells in the row, so press the F4 key to turn C4 into $C$4.

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 Data Analysis and Report Writing
4) Click OK to close the dialog-box and place the calculated value into the selected
cell.
The Formula bar displays the formula for D12: =MOD(D4,$C$4)
5) Auto fill the row with the same number of scores as the row in the intermediate
table.
Complete these five steps for each row and you have a stem-and-leaf display. To make
everything look nicer for pasting to Power-Point, merge the cell holding the leaves label
with a few of the cells to its right. After pasting to PowerPoint, you get a clearer picture if
you stretch the copy and enlarge the font. Consider the stem-and-leaf display next time
you have to present a distribution of scores.

5.4.6. Candle Stick:

Candle-stick chart is a style of bar-chart used primarily to describe price movements of
a security, derivative or currency over time. This chart type is often used in combination
with the volume bars chart for technical analysis of stock and foreign exchange
patterns. It is best used for presentation of historical pricing data in analytical models.
To create a candle-stick chart you need the open, high, low and close for an instrument.
You can display the same information with a standard bar chart but candle-stick charts
are more visually appealing and help you recognize trend changes.
Steps to Represent Candle Stick Chart in Excel Sheet:
1) For the candle-stick chart the data must be arranged in a specific column layout
structure. The structure required is Open-High-Low-Close; this is highlighted in the
image below. The next step is to select or highlight the Open-High-Low-Close, data
columns.

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M. B. A. (Sem. – I) Business Research Methods
2) With the data selected click on the insert tab on the office ribbon and then click on
the create chart icon on the Insert ribbon as shown below.

3) A dialog-box will now be displayed giving you various chart options. On the left
hand side of the dialog-box are lists of templates, for our second chart we are going
to create a simple candle-stick chart. Select Stock from the left hand window and
then candle-stick chart in the preview pane and click OK (as shown below).

4) You will see a chart hovering over your data, excel has tried to guess an appropriate
scale for our data and has numbered the x-axis or category axis sequentially. This is
highlighted below:

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 Data Analysis and Report Writing

5) As you can see the y-axis scale and category axis needs to be fixed up. In excel
2007 the context of the office ribbon will change when different objects are selected.
In order to edit the data which is displayed on the chart you will need to click on
"Select Data" on the modified office ribbon. When the select data source window
opens click edit axis labels and select the date column as category labels. Be
careful to select only the date values and not the date label, as highlighted below.

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M. B. A. (Sem. – I) Business Research Methods
6) The next step is to edit the y axis or the axis that displays price, as the scale is to
large to show any useful relationship in the chart. To edit the axis scales simply right
clicks on the price axis and then click on "Format Axis". When the format axis dialog
window opens edit the axis values as shown below.

7) In the final step click on "Move Chart Location" on the Office ribbon and choose
New Sheet and name the sheet Candle Stick Chart. You can now tweak the
formatting as desired. The one thing would like to do is change the colour of the
candle-sticks so one can quickly and easily see if the price is up or down for a given
period. If the price is down one can use a red candle and if the price is up one can
use a green candle. This can be achieved in excel quite simply by right clicking on
the candle in the chart and then select Format bars and choose your desired colours
(as shown below).

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 Data Analysis and Report Writing
8) You should end up with a chart similar to this chart below.

4) Box Plots:
A box plot, also known as a box-and-whisker chart, is a type of chart that shows groups
of numerical data in five-number summaries, particularly to show differences in
populations. Microsoft Excel has several built-in chart types, but unfortunately a box plot
is not among them. However, box plot can be created simply by customising the
appearance of the stacked chart type as it is similar in appearance to a box plot. After
doing so, it can be copied and pasted into other applications such as Word and
PowerPoint, which could be useful for business presentations.

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M. B. A. (Sem. – I) Business Research Methods
Steps for Creating Box Plots in Excel:
Following are the steps to creating box plots in excel:
1) Step 1: Create a Table:
Create a series of data containing median, 25th percentile, 75th percentile, 10th
percentile and 90th percentile data.
2) Step 2: Create a Plot Data Table:
This table will have five data series like the data series above. The first data series
will be the bottom segment. This is equal to the 25th percentile data series.
3) Step 3: Add a Formula:
Next is needed to add a formula in the plot data table for the maximum value of
each data set. This will be the maximum minus the third quartile values.
4) Step 4: In The Plot Data Table, Add a Formula for Each Data Set's Third
Quartile Value:
From the summary table, this is the third quartile minus the values of the median.
5) Step 5: Add a formula:
In the plot data table, add a formula for each data set's median value for the median
minus the first quartile values from the summary table.
6) Step 6: Copy the First Quartile Value From the Summary Data Table and in the
Plot Data Table Add a Formula for Each of the Data Set’s First Quartile Value:
This is the halfway done with making a box plot in Microsoft Excel 2007.
7) Step 7: Copy the First Quartile Value From the Summary Table:
In the plot data table, add a formula for each of the data set's first quartile.
8) Step 8: In the Data Table, Add a Formula for Each Data Sets' Minimum Value:
From The Summary Table, This Is The Quartile Minus The Minimum Values.
9) Step 9: Create the Plot:
In the plot data table, select the range containing the third quartile, median and first
quartile of all the data sets.
10) Step 10: Open the "Insert" Ribbon:
Click "Column" on the charts. Select "Stacked Column" from the "2D Column" type
charts.
11) Step 11: In Order to Build a Box Plot in Microsoft Excel 2007, on the "Chart
Tools" Section of the Ribbon, Click "Select Data" Under "Design."
Modify the series order so that series three will be the bottom segment on the chart
and series one will be the top segment on the chart.
12) Step 12: On One of the Columns in the Chart, Click On the Bottom Segment:
On the ribbon, select "Layout" under "Chart Tools." Click "Error Bars" and select
"More Error Bars Options." The "Format Error Bars" window will appear.
13) Step 13: Select "Minus" for Direction:
Select "Custom" for the error amount. Click "Specify Value" and select the range for
all the minimum values in the plot data table for the "Negative Error Value" in the
"Custom Error Bars" window. Click "OK" to exit this window. Click "Close" in the
next dialog-box to return to the chart.

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 Data Analysis and Report Writing
14) Step 14: Click on the top segment of one of the columns in the chart:
Go to the "Format Error Bars" window. For the direction, choose "Plus," and for the
"Custom Error Amount," use the maximum values in the plot data table for the
"Positive Error Value" range.
15) Step 15: Right-click on the segment of one of the columns on the bottom of
the chart:
Click "Format Data Series." Set the "Fill" to "No fill." Set the "Border Colour" to "No
line." Close the window.
16) Step 16: Delete the chart legend:
Format the chart Colours, add a title. Make changes to anything else you would like
to for style.
17) Step 17: On the plot data table, select the rows:
On the ribbon under "Home," select "Format." Click on "Hide Rows" under the "Hide
and Unhide" sub-menu. This is the last step to build a box plot in Microsoft Excel
2007, while the process is complicated.

5.5. Bivariate Analysis:

Bivariate analysis is one of the simplest forms of the quantitative (statistical) analysis. It
involves the analysis of two variables (often denoted as X, Y), for the purpose of
determining the empirical relationship between them. In order to see if the variables are
related to one another, it is common to measure how those two variables
simultaneously change together. Bivariate analysis can be helpful in testing simple
hypotheses of association and causality, checking to what extent it becomes easier to
know and predict a value for the dependent variable if a case's value of the independent
variable is known and this can done with the help of cross tabulation, usage of
percentage, correlation analysis etc.

5.5.1. Cross Tabulation:

Cross-tabulation is one of the most useful analytical tools and is a main-stay of the
market research industry. One estimate is that single variable frequency analysis and
cross-tabulation analysis account for more than 90% of all research analyses. Cross-
tabulation analysis, also known as contingency table analysis, is most often used to
analyse categorical (nominal measurement scale) data.
A cross tabulation is a joint frequency distribution of cases based on two or more
categorical variables. Displaying a distribution of cases by their values on two or more
variables is known as contingency table analysis and is one of the more commonly
used analytic methods in the social sciences. The joint frequency distribution can be
analysed with the chi-square statistic ( ) to determine whether the variables are
statistically independent or if they are associated.

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M. B. A. (Sem. – I) Business Research Methods
Cross-tabulation is about taking two variables and tabulating the results of one
variable against the other variable. An example would be the cross-tabulation of course
performance against mode of study:

Each individual would have had a recorded mode of study (the rows of the table) and
performance on the course (the columns of the table). For each individual, those pairs
of values have been entered into the appropriate cell of the table. More advanced
techniques such as, log-linear models and multinomial regression can be used to clarify
the relationships contained in contingency tables. A cross-tabulation is a two (or more)
dimensional table that records the number (frequency) of respondents that have the
specific characteristics described in the cells of the table. Cross-tabulation tables
provide a wealth of information about the relationship between the variables. Cross-
tabulation analysis has its own unique language, using terms such as "banners",
"stubs", "Chi-square Statistic" and "Expected Values."
Example: A cross tabulation might show that cars built on Monday have more service
problems than cars built on Wednesday. Cross tabulation can be used to analyse the
results of a consumer survey that, for example, indicates a preference for certain
advertisements based on which part of the country the consumer resides in.

5.5.2. Use of Percentages:

One of the most frequent ways to represent statistics is by percentage. Percent simply
means "per hundred" and the symbol used to express percentage is %. One percent (or
1%) is one hundredth of the total or whole and is therefore calculated by dividing the
total or whole number by 100. A percentage is a part of a whole. It can take on values
between 0 (none of the whole) and 100 (all of the whole). The whole is called the base.
The base must always be reported whenever a percentage is determined.
Example:
There are 20 students in a classroom, 12 of whom are males and 8 of whom are
females. The percentage of males is 12 out of 20 or 60%. The percentage of females is
8 "out of" 20 or 40%. (20 is the base.)

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 Data Analysis and Report Writing
1) Compare The Information:
Whilst researching for an essay or dissertation you may come across many sources
of data in tables, graphs or reports which you would like to incorporate into your
work. However, this can be difficult if they do not share a common base line.
Percentages are useful for comparing information where the sample sizes or totals
are different. By converting different data to percentages you can readily compare
them.
2) Quantify Change:
Percentages are also very useful if you wish to quantify change. This is because
they provide a result in the form of parts per hundred that is usually more readily
understandable and comparable than when the information is presented as raw
values. When calculating the percentage change between two values it is important
to determine the correct base from which to calculate the percentage change.
3) Calculating Percentage Increase or Reductions:
In the previous example, the percentage change between two values was
calculated. The reverse process is where the actual amount represented by a
particular percentage is to be calculated. Typical examples of the use of
percentages in this way are in shop sales, where the prices have been reduced by a
certain percentage or bank charges where interest rates are expressed as a
percentage.

5.5.3. Bivariate Correlation Analysis / Types of Correlation:

The bivariate correlations analysis computes correlation coefficients with their
significance levels. Correlations measure how variables or rank orders are related.
Before calculating a correlation coefficient, screen the data for outliers (which can cause
misleading results) and evidence of a linear relationship. Common forms of bivariate
correlation analysis involve creating a percentage table or a scatter plot graph and
computing a simple correlation coefficient like Karl Pearson's coefficient of correlation,
Spearman's rank correlation. The types of analysis that are suited to particular pairs of
variables vary in accordance with the level of measurement of the variables of interest
(e.g., nominal/categorical ordinal, interval/ratio).
A) Karl Pearson's Coefficient of Correlation:
Karl Pearson has introduced a new formula for calculation of the coefficient of
correlation. According to this method, the coefficient of correlation between any two
series is computed by dividing the product of deviations from arithmetic average by
the product of two standard deviations to the number of pairs in it. Symbolically, it
may be expressed as below:
Here,
r = Coefficient of correlation.

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M. B. A. (Sem. – I) Business Research Methods
dx = Deviations of items values of x series from its arithmetic average.
dy = Deviations of items values of y series from its arithmetic average.
dx dy = Product of dx and dy
= S. D. of x series
= S.D. of y series.
In this method, the deviations have been calculated from the actual arithmetic
average which entails a lot of calculation works. Therefore, in order to avoid this, the
following short-cut method is used in which the deviations are calculated from the
assumed average.
Short-cut Method:
To avoid difficult calculations due to mean being in fraction, deviations are taken
from assumed means while calculating coefficient of correlation. The formula is also
modified for standard deviations because deviations are taken from assumed
means.

Interpretation of Karl Pearson's Coefficient of Correlation:

The value of Pearson's coefficient of correlation, r, always lies between the two
values +1 and -1. When the value of r is positive it denotes positive or direct
relationship between the given variables. A negative value of r denotes negative or
inverse relationship between the two given variables. The interpretation given to
various numerical values of r is as follows:
1) When the numerical value of r is equal of 1 the correlation is perfect and the
exact value of one of the two variables may be obtained from a known value of
the other.
2) If the numerical value of r is greater than .95, there is a high degree of
correlation between the variables and one of them may be quite accurately
estimated from a known value of the others.
3) If the numerical value of r is greater than .75 but less than .85 there probably is
a decided amount of correlation between the two variables and one of the
variables may be estimated roughly from a known value of the other variable.
4) If the numerical value of r lies between .4 and .6 there may be a fair degree of
association between the two variables, but any estimate of the value of one
value.
5) If the numerical value is less than .35, there is very low degree of correlation
between the two variables and the known values of the variable cannot be used
as the basis for estimating the value of the other.
6) When the value of r is equal to zero, the two given variables have no linear
relationship. That is zero value of r indicates only the absence of linear
correlation and not the absence of correlation itself.
The general values mentioned above are arbitrary and for this reason gaps were left
between the general zones of the values of x.

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 Data Analysis and Report Writing
B) Spearman's Rank Correlation:
In statistics, Spearman's rank correlation coefficient or Spearman's rho, named after
Charles Spearman and often denoted by the Greek letter (rho) or as, is a
nonparametric measure of statistical dependence between two variables. It
assesses how well the relationship between two variables can be described using a
monotonic function. If there are no repeated data values, a perfect Spearman
correlation of +1 or -1 occurs when each of the variables is a perfect monotone
function of the other. Spearman's coefficient, like any correlation calculation, is
appropriate for both continuous and discrete variables, including ordinal variables
Spearman's rank correlation coefficient is used to identify and test the strength of a
relationship between two sets of data. It is often used as a statistical method to aid
with either proving or disproving a hypothesis e.g., the depth of a river does not
progressively increase the further from the river bank. The formula used to calculate
Spearman's rank is shown below:
6 d2 NB. Sometimes n3 – n is written as n
r 1
n3 n (n2-1). Both mean the same thing.

Procedure for Using Spearman's Rank Correlation

1) State the null hypothesis i.e. "There is no relationship between the two sets of
data."
2) Rank both sets of data from the highest to the lowest. Make sure to check for
tied ranks.
3) Subtract the two sets of ranks to get the difference d.
4) Square the values of d.
5) Add the squared values of d to get Sigma d2.
6) Use the formula Rs = 1-(6Sigma d2/n3-n), where n is the number of ranks you
have.
7) If the Rs value...
... is -1, there is a perfect negative correlation.
...falls between -1 and -0.5, there is a strong negative correlation.
...falls between -0.5 and 0, there is a weak negative correlation.
... is 0, there is no correlation
...falls between 0 and 0.5, there is a weak positive correlation.
...falls between 0.5 and 1, there is a strong positive correlation
...is 1, there is a perfect positive correlation
between the 2 sets of data.
8) If the Rs value is 0, state that null hypothesis is accepted. Otherwise, say it is
rejected.

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M. B. A. (Sem. – I) Business Research Methods
C) Scatter Plots:
A scatter plot or scatter graph is a type of mathematical diagram using cartesian co-
ordinates to display values for two variables for a set of data. The data is displayed
as a collection of points, each having the value of one variable determining the
position on the horizontal axis and the value of the other variable determining the
position on the vertical axis. This kind of plot is also called a scatter chart, scatter
gram, scatter diagram or scatter graph.
A scatter plot is used when a variable exists that is below the control of the
experimenter. If a parameter exists that is systematically incremented and/or
decremented by the other, it is called the control parameter or independent variable
and is customarily plotted along the horizontal axis. The measured or dependent
variable is customarily plotted along the vertical axis. If no dependent variable
exists, either type of variable can be plotted on either axis or a scatter plot will
illustrate only the degree of correlation (not causation) between two variables.
Scatter Plots:

Fig. 5.5: Scatter Plot of Made up Data.

A scatter plot can suggest various kinds of correlations between variables with a
certain confidence interval.
Example: Weight and height, weight would be on x axis and height would be on the
y axis. Correlations may be positive (rising), negative (falling) or null (uncorrelated).
If the pattern of dots slopes from lower left to upper right, it suggests a positive
correlation between the variables being studied. If the pattern of dots slopes from
upper left to lower right, it suggests a negative correlation.

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 Data Analysis and Report Writing
A line of best fit (alternatively called 'trend line') can be drawn in order to study the
correlation between the variables.
Important Considerations:
1) If the points cluster in a band running from lower left to upper right, there is a
positive correlation (if x increases, y increases).
2) If the points cluster in a band from upper left to lower right, there is a negative
correlation (if x increases, y decreases).
3) Imagine drawing a straight line or curve through the data so that it "fits" as well
as possible. The more the points cluster closely around the imaginary line of
best fit, the stronger the relationship that exists between the two variables.
4) If it is hard to see where you would draw a line and if the points show no
significant clustering, there is probably no correlation.

D) Chi-square Test including Hypothesis of Association:

The chi-square test is an important test amongst the several tests of significance
developed by statisticians. Chi-square is symbolically written as 2. The chi-square
distribution is one of the most extensively used distributions in statistics. It was first
discovered by Helmert in 1875 and was later re-discovered independently in 1900
by Karl Pearson. It is a statistical measure used in the context of sampling analysis
for comparing a variance to a theoretical variance.
Karl Pearson applied, it
a) As test of „goodness of fit‟.
b) For the comparison of a number of frequency distribution.
c) For finding association and relationship between the attributes.
Chi-square as a Non-Parametric Test:
Chi-square is an important non-parametric test and as such no rigid assumptions
are necessary in respect of the type of population. We require only the degrees of
freedom for using this test. As a non-parametric test, it can be used,
i) As a test of goodness of fit and
ii) As a test of independence.

a) As a Test of Goodness of Fit:

As a test of goodness of fit, 2 test enables us to see how well does the assumed
theoretical distribution fit to the observed data. When some theoretical
distribution is fitted to given data, we are always interested in knowing as to how
well this distribution fits with the observed data. The chi-square test can give
answer to this. If the calculated value of 2 is less than the table value at a certain
level of significance, the fit is considered to be a good one which means that the
divergence between the observed and expected frequencies is attributable to
fluctuations of sampling. But, if the calculated value of 2 is greater than its table
value, the fit is not considered to be a good one.

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b) As a Test of Independence (Testing Hypothesis of Association):
This test enables us to explain whether or not two attributes are associated. For
instance, we may be interested in knowing whether new medicine is effective in
controlling fever or not, 2 test will help us in deciding this issue. In such a
situation, it proceed with the null hypothesis that the two attributes are
independent which means that, new medicine is not effective in controlling fever.
On this basis, the first calculate the expected frequencies and then work out the
value of 2. If the calculated value of 2 is less than the table value at a certain
level of significance for given degrees of freedom, it concludes that null
hypothesis stands which means that the two attributes are independent or not
associated. But, if it is greater than its table value then it means that the null
hypothesis does not hold good. It means that, the two attributes are associated
and the association is not because of some chance factor but it exists in reality.
X2 is calculated as follows:
2
Oij-Eij
x2 =
Eij
Where,
Oij = Observed frequency of the cell in ith row and jth column.
Eij = Expected frequency of the cell in ith row and jth column.
It is to be noted that, degrees of freedom play an important part in using the chi-
square distribution and the test based on it, one must correctly determine the
degrees of freedom. If there are 10 frequency classes and there is one
independent constraint, then there are (10-1) = 9 degrees of freedom. Thus, if „n‟
is the number of groups and one constraint is placed by making the totals of
observed and expected frequencies equal, the degree of freedom (d.f) would be
equal to (n - 1). In the case of a contingency table i.e., a table with 2 columns
and 2 rows or a table with 2 columns and more than two rows or a table with two
rows but more than two columns or 2 rows or a table with 2 columns and a table
with more than two rows and more than two columns the d. f is worked out as
follows:
d. f = ( c - 1) (r - 1)
Here, „c‟ means number of columns and „r‟ means the number of rows.

Chi-square Test of Association:

The Chi-square test of association was derived mathematically by Karl Pearson
nearly in the century and is often known as Pearson's Chi-square test of
association. Pearson showed that the formulas for the goodness of fit statistic we
learned last lecture and the test of association statistic both have Chi-square as
their sampling distribution.

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Quite often it has two categorical variables such as gender (male, female) and job
status (managers, clerks). It can wonder whether there is an association (or
correlation) between the two categorical variables, that is, is there a relationship
between a person's gender and their job status? As another example, we might
interested in the potential association of political party (republican, democratic,
independent, other) and environmental attitudes (preservation, development, other).
The Chi-square Test of Association allows us to evaluate associations (i.e.,
correlations) between categorical variables such as these.
1) Partitions:
In probability theory a partition is a mutually exclusive and an exhaustive set of
categories. Categories are pigeon holes or places where people can put things
conceptually. To be a partition, a set of categories have to be both mutually
exclusive and exhaustive. Mutually exclusive means that observation can go into
one and only one category. No idea (nor thing, nor observation) may go in more
than one category. It means that, every object we observe can be put into one of
the categories. More detail on these terms is available in the Chi-square
goodness of fit lecture.
2) Independent Observations:
The second criterion for the Chi-square test of association is that have some
number of observations, each independent of the others. In our running
example, say that we classify 200 people who works at a corporation by gender
and job status. We will assume that these people are independent of each other
and that they are just picked out at random.
3) Frequency Data:
The third criterion is frequency data. Frequency data means that we do not
measure anything when we observe, all we do is put the observations in
categories and count the „n‟ observation that fall into each category. Each time
someone falls into a category, one can make a little hash mark in one of the
cells of the table. We are just counting, not measuring.

E) Association of Attributes:
Knowledge of the association information between the attributes in a data set
provides insight into the underlying structure of the data and explains the
relationships (independence, synergy, redundancy) between the attributes.
Generally, when one attribute appear in a number of case along with the other
attribute, then we find mutual association between them. But, in statistics, it has a
special meaning. In statistics, two attributes are said to be associated when both the
attributes are more commonly found together than is ordinarily expected. In other
words of Yule and Kendel, “In statistics A and B are associated only if they together
in a greater number of cases, then is to be expected if they are independent.”

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M. B. A. (Sem. – I) Business Research Methods
Evidently A and B are disassociated if this number is less than expected for
independence
Kinds of Association:
Association of attributes can be positive, negative or independent. It may be of the
following three forms.
1) Positive Association:
When two attributes are found to be present or absent together they are said to
be positively associated or merely associated. Such association is found
between smoking and cancer, illiteracy and criminality, education and
unemployment etc. In such a situation the observed frequency is found to be
more than the expected frequency.
Symbolically,
(A) (B)
(AB) >
N
2) Disassociation or Negative Association:
When presence of one attribute is associated with the absence of other attribute,
they are said to negative associated.
Negative association may also be termed as disassociation. Negative
association is found between literacy and criminality, vaccination and attack of
small pox, education and dishonesty etc. In such a situation, the observed
frequency is found to be less than the expected frequency.
Symbolically,
(A) (B)
(AB)
N
3) Independence:
When the two attributes have not a tendency of being present together or not
that a tendency of one attribute being absent when another is present , then
they are said to be independent of each other . In such a situation, the observed
frequency is equal to the expected frequency.
Symbolically,
(A) (B)
(AB)
N

5.6. Regression:
A simple linear regression involves an attempt to develop a straight line or linear
mathematical model to describe the relationship between two variables. The purpose of
a regression is to estimate the values of one variable based on the values of the other.
The use of regression equation is to predict the values of one variable given the values
of other variables.

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5.6.1. Meaning of Regression:

Regression literally means the find exact relationship is called regression analysis. The
main purpose of regression analysis is to predict or estimate the unknown values of one
variable from the known values of another related variable.
Example: The producer of a commodity may wish to estimate the amount of rupees to
be spent on advertisement to have a particular amount of sales or he may wish to
estimate the sales when a particular amount of rupees is spent on advertisement. Such
type of estimation is possible with the help of regression analysis.
Regression can be expressed graphically or algebraically.
Graphic representation of regression is called regression lines.
Regression expressed algebraically is called regression equation. The average
relationship between two variables is described by the regression lines. In other words,
when the exact value of one variable is given the most probable value of the other
variable is shown by the regression line.
Equation of two regression lines:
There are two regression lines. One is regression line y on x and another is regression
line x on y.
Regression line of y on x.
(Y-Y) = by,x (X-X)
B y,x = regression coefficient of y on x,
σy
b y,x = r×
σx
Regression line of x on y is,
(X-X) = bxy (Y-Y)
B x,y = regression coefficient of x on y
σx
b x,y = r×
σy
Regression line y on x is used for estimating y value for a give value of x and regression
line x on y is used to estimate value of x for a given value of y.

5.6.2. Linear Regression Analysis:

In, linear regression is an approach to modeling the relationship between a scalar
dependent variable y and one or more explanatory variables denoted X. The case of
one explanatory variable is called simple linear regression. Linear regression was the
first type of regression analysis to be studied rigorously and to be used extensively in
practical applications.

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This is because models which depend linearly on their unknown parameters are easier
to fit than models which are non-linearly related to their parameters and because the
statistical properties of the resulting estimators are easier to determine.

Fig. 5.6: Regression Analysis

In linear regression, data are modeled using linear predictor functions and unknown
model parameters are estimated from the data. Such models are called linear models.
Most commonly, linear regression refers to a model in which the conditional mean of y
given the value of X is an affine function of X. Less commonly, linear regression could
refer to a model in which the median or some other quartile of the conditional
distribution of y given X is expressed as a linear function of X. Like all forms of
regression analysis, linear regression focuses on the conditional probability distribution
of y given X, rather than on the joint probability distribution of y and X, which is the
domain of multivariate analysis.
A) Assumptions:
There are several assumptions about the data that must be met in order to conduct
a linear regression analysis:
1) Linearity:
It is assumed that, the relationship between the independent and dependent
variables is linear. Though this assumption can never be fully confirmed, looking
at a scatter plot of your variables can help make this determination. If a
curvature in the relationship is present, you may consider transforming the
variables or explicitly allowing for nonlinear components.
2) Normality:
It is assumed that, the residuals of variables are normally distributed. That is, the
errors in the prediction of the value of Y (the dependent variable) are distributed
in a way that approaches the normal curve. One can look at histograms or
normal probability plots to inspect the distribution of your variables and their
residual values.

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3) Independence:
It is assumed that. the errors in the prediction of the value of Y are all
independent of one another (not correlated).
4) Homoscedasticity:
It is assumed that. the variance around the regression line is the same for all
values of the independent variables.

B) Practical Uses:
Linear regression has many practical uses. Most applications fall into one of the
following two broad categories:
1) If the goal is prediction or forecasting or reduction, linear regression can be used
to fit a predictive model to an observed data set of y and X values. After
developing such a model, if an additional value of X is then given without its
accompanying value of y, the fitted model can be used to make a prediction of
the value of y.
2) Given a variable y and a number of variables X1, ..., Xp that may be related to y,
linear regression analysis can be applied to quantify the strength of the
relationship between y and the Xj, to assess which Xj may have no relationship
with y at all and to identify which subsets of the Xj contain redundant information
about y.
3) Linear regression models are often fitted using the least squares approach, but
they may also be fitted in other ways, such as by minimising the "lack of fit" in
some other norm (as with least absolute deviations regression) or by minimising
a penalised version of the least squares loss function as in ridge. Conversely,
the least squares approach can be used to fit models that are not linear models.
Thus, although the terms "least squares" and "linear model" are closely linked,
they are not synonymous.

5.6.3. Two Lines of Regression:

There are two regression lines. One is regression line y on x and another is regression
line x on y.
Regression line of y on x.
(y - ) = by, x (x - )
by, x = regression coefficient of y on x
Equation of two regression lines:
There are two regression lines. One is regression line y on x and another is regression
line x on y.
Regression line of y on x.
(y - ) = by, x (x - )

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M. B. A. (Sem. – I) Business Research Methods
by,x = regression coefficient of y on x
Regression line of x on y is,
( x - )= bxy (y - )
bx,y = regression coefficient of x on y.
Regression line y on x is used for estimating y value for a given value of x and
regression line x on y is used to estimate value of x for a given value of y.

5.6.4. Relation between Correlation and Regression Co-efficient:

Correlation and regression analysis are related in the sense that both deal with
relationships among variables. The correlation coefficient is a measure of linear
association between two variables. Values of the correlation coefficient are always
between -1 and +1. A correlation coefficient of +1 indicates that, two variables are
perfectly related in a positive linear sense; a correlation coefficient of -1 indicates that
two variables are perfectly related in a negative linear sense and a correlation
coefficient of 0 indicates that, there is no linear relationship between the two variables.
For simple linear regression, the sample correlation coefficient is the square root of the
coefficient of determination, with the sign of the correlation coefficient being the same
as the sign of b1, the coefficient of x1 in the estimated regression equation.
Neither regression nor correlation analyses can be interpreted as establishing
cause-and-effect relationships. They can indicate only how or to what extent variables
are associated with each other. The correlation coefficient measures only the degree of
linear association between two variables. Any conclusions about a cause and effect
relationship must be based on the judgment of the analyst. This relation is practically
very useful for analysis. In case we do not know clearly which one is dependent and
which one is independent variable, then it will have two lines of regression and hence
two coefficients of regression.

5.7. Test of Significance:

Once sample data has been gathered through an observational study or experiment,
statistical inference allows analysts to assess evidence in favour or some claim about
the population from which the sample has been drawn. The methods of inference used
to support or reject claims based on sample data are known as tests of significance.
Every test of significance begins with a null hypothesis H0. H0 represents, a theory that
has been put forward, either because it is believed to be true or because it is to be used
as a basis for argument, but has not been proved.

5.7.1. Parametric Tests for Small Sample:

A parametric statistical test is a test whose model specifies certain conditions about the
parameters of the population from which the research sample was drawn. Conditions
include:

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1) The observations must be independent.
2) The observations must be drawn from normally distributed populations.
3) These populations must have the same variances.
4) Variables involved must have been measured in at least an interval scale.

Parametric statistics is a branch of statistics that assumes that, the data has come from
a type of probability distribution and makes inferences about the parameters of the
distribution. Parametric tests are defined as conventional statistical methods. For
instance, in parametric testing, a sample value is obtained to approximate the
population parameters. These tests require parametric assumptions as the values used
are sample statistics. Most well-known elementary statistical methods are parametric.
Generally speaking parametric tests make more assumptions than non-parametric
tests. If those extra assumptions are correct, parametric methods can produce more
accurate and precise estimates. They are said to have more statistical power. For
practical purposes, one can think of "parametric" as referring to tests, such as t-tests z
tests, f tests and the analysis of variance, that assume the underlying source
population(s) to be normally distributed; they generally also assume that one's
measures derive from an equal-interval scale.
A) T-test (Mean and Proportion):
A t-test is any statistical hypothesis test in which the test statistic follows a student's
t distribution if the null hypothesis is supported. It can be used to determine if two
sets of data are significantly different from each other and is most commonly applied
when the test statistic would follow a normal distribution if the value of a scaling term
in the test statistic were known. Student's t-test deals with the problems associated
with inference based on "small" samples mean: the calculated mean (X avg) and
standard deviation or ( ) may by chance deviate from the "real" mean and standard
deviation (i.e., what you had measure if you had many more data items: a "large"
sample). When the scaling term is unknown and is replaced by an estimate based
on the data, the test statistic (under certain conditions) follows a student's t
distribution.
Assumption of T-test:
Most t-test statistics have the form t = Z/s, where, Z and s are functions of the data.
Typically, Z is designed to be sensitive to the alternative hypothesis (i.e., its
magnitude tends to be larger when the alternative hypothesis is true), whereas „s‟ is
a scaling parameter that allows the distribution of t to be determined.
As an example, in the one-sample t-test Z = (insert the euation) , where ( insert the
equation) is the sample mean of the data, ( insert the equation) is the sample size
and is the population standard deviation of the data; s in the one-sample t-test is (
insert the equation) , where ( insert the equation) is the sample standard deviation.
The assumptions underlying a t-test are that,

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M. B. A. (Sem. – I) Business Research Methods
Z follows a standard normal distribution under the null hypothesis,
s2 follows a X2 distribution with p degrees of freedom under the null hypothesis,
where, p is a positive constant Z and s are independent.

B) F-tests:
An F-test is any statistical test in which the test statistic has an F-distribution under
the null hypothesis. It is most often used when comparing statistical models that
have been fitted to a data set, in order to identify the model that best fits the
population from which the data were sampled. Exact F-tests mainly arise when the
models have been fitted to the data using least squares. The name was coined by
George W. Snedecor, in honor of Sir Ronald A. Fisher.
Assumption of F-test:
Most F-tests arise by considering a decomposition of the variability in a collection of
data in terms of sums of squares. The test statistic in an F-test is the ratio of two
scaled sums of squares reflecting different sources of variability. These sums of
squares are constructed so that, the statistic tends to be greater when the null
hypothesis is not true. In order for the statistic to follow the F-distribution under the
null hypothesis, the sums of squares should be statistically independent and each
should follow a scaled chi-squared distribution. The latter condition is guaranteed if
the data values are independent and normally distributed with a common variance.

C) Z-tests:
A Z-test is any statistical test for which the distribution of the test statistic under the
null hypothesis can be approximated by a normal distribution. Because of the
central limit theorem, many test statistics are approximately normally distributed for
large samples. For each significance level, the Z-test has a single critical value (for
example, 1.96 for 5% two tailed) which makes it more convenient than the student's
t-test which has separate critical values for each sample size. Therefore, many
statistical tests can be conveniently performed as approximate Z-tests if the sample
size is large or the population variance known. If the population variance is unknown
(and therefore has to be estimated from the sample itself) and the sample size is not
large (n < 30), the student t-test may be more appropriate.
Assumptions:
For the Z-test to be applicable, certain conditions must be met. Nuisance
parameters should be known or estimated with high accuracy (an example of a
nuisance parameter would be the standard deviation in a one-sample location test).
Z-tests focus on a single parameter and treat all other unknown parameters as
being fixed at their true values. In practice, due to Slutsky's theorem, "plugging in"
consistent estimates of nuisance parameters can be justified. However, if the
sample size is not large enough for these estimates to be reasonably accurate, the
Z-test may not perform well.

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The test statistic should follow a normal distribution. Generally, one appeals to the
central limit theorem to justify assuming that a test statistic varies normally. There is
a great deal of statistical research on the question of when a test statistic varies
approximately normally. If the variation of the test statistic is strongly non-normal, a
Z-test should not be used.

5.7.2. Non-parametric Tests:

A non-parametric statistical test is a test whose model does not specify conditions about
the parameters of the population from which the sample was drawn. Non-parametric
tests are also referred to as distribution-free tests. These tests have the obvious
advantage of not requiring the assumption of normality or the assumption of
homogeneity of variance. They compare medians rather than means and as a result, if
the data have one or two outliers, their influence is negated.
1) Do not require measurement as strong as that required for the parametric tests.
2) Most non-parametric tests apply to data in an ordinal scale and some apply to data
in nominal scale.
Non-parametric statistics or distribution-free tests are those that do not rely on
parameter estimates or precise assumptions about the distributions of variables. There
number of test which comes under non parametric test and these are discussed ahead.
A) Binomial Test of Proportion:
In statistics, the binomial test is an exact test of the statistical significance of
deviations from a theoretically expected distribution of observations into two
categories. The binomial test evaluate the probability of seeing k or less positive
cases in a sample of cases, if the reference proportion is prop. Should the
proportion k/n be greater than prop, then the test evaluates the probability of having
k or more cases in the sample of n cases. Binomial probability assumes that, the
observation is one off. In most quality assurance programs repeated observations
are made and the probability estimates must take into account variations from
repeated measurements and different statistics should be used. Three parameters
are involved:
1) Reference Proportion (Prop):
It also known as expected proportion or probability, is the expected, theoretical
or reference proportion of cases that are positive in the indexed outcome
(deaths, cures, winners, losers, complications etc). This is usually expressed as
a number between 0 and 1, so that 0.25 represents 25%. The abbreviation prop
is used in these programs.
2) Sample Size (n):
It is the number of cases observed in the current study and this is abbreviated to
In.

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M. B. A. (Sem. – I) Business Research Methods
3) Numbers Positives (k):
It is the number of cases found to be positive in the sample observed in the
current study and this is abbreviated to k.
The test result is the binomial probability, abbreviated to p. This is the probability of
k or more extreme number of positive cases amongst a sample of n cases, if the
true proportion is prop. Where, k/n is less than prop, then it is k or fewer cases.
Where k/n is greater than prop then it is k or more cases. When the sample size
n<=35, probability is calculated via the binomial coefficient. When sample size
exceeds 35, probability is calculated from z, assuming that the distribution
approximated normal. Formulae for calculations are as referenced.
Assumptions of Binomial Test:
The normal approximation for the Binomial test assumes that the proportion of the
time that individuals are expected to fall into category A (symbolised by "p")
multiplied by the total number of individuals in category A and B combined
(symbolised by "n") is greater than 10 (i.e. pn >10) and that the proportion of the
time that individuals are expected to fall into category B (symbolized by "q")
multiplied by the total number of individuals is greater than 10 (i.e. qn >10). If either
of these conditions are not met then the normal approximation for the binomial test
should not be used (use the binomial distribution instead).

Use of Binomial Test:

The most common use of the binomial test is in the case where the null hypothesis
is that two categories are equally likely to occur (such as a coin toss). Tables are
widely available to give the significance observed numbers of observations in the
categories for this case. However, as the example below shows, the binomial test is
not restricted to this case. Where there are more than two categories and an exact
test is required, the multinomial test, based on the multinomial distribution, must be
used instead of the binomial test.

B) Randomness Test:
Randomness tests (or tests for randomness), in data evaluation, are used to
analyse the distribution pattern of a set of data. In stochastic modeling, as in some
computer simulations, the expected random input data can be verified, by a formal
test for randomness, to show that the simulation runs were performed using
randomised data. In some cases, data reveals an obvious non-random pattern, as
with so-called "runs in the data" (such as expecting random 0-9 but finding "4 3 2 1
0 4 3 2 1..." and rarely going above 4). If a selected set of data fails the tests, then
parameters can be changed or other randomised data can be used which does
pass the tests for randomness.

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Specific Tests for Randomness:
There are many practical measures of randomness for a binary sequence. These
include measures based on statistical tests, transforms and complexity or a mixture
of these Several of these tests, which are of linear complexity, provide spectral
measures of randomness. T. Beth and Z-D. Dai showed that, Kolmogorov
complexity and linear complexity are practically the same.
1) Kolmogorov Complexity:
These practical tests make it possible to compare and contrast the randomness
of strings. On probabilistic grounds, all strings, say of length 64, have the same
randomness. However, suppose the two following strings:
String1: 101010101010101010101010101010101010101010101010101010101010101
String2: 100100001100001110111101110110011111010010000100101011110010110
They effectively have a different Kolmogorov complexity. The first string admits
a short linguistic description, namely "32 repetitions of '01'", which consists of 20
characters and it can be efficiently constructed out of some basis sequences.
The second one has no obvious simple description other than writing down the
string itself, which has 64 characters and it has no comparably efficient basis
function representation.
2) Linear Hadamard Spectral Tests:
Using linear Hadamard spectral tests (Hadamard transform), the first of these
sequences will be found to be of much less randomness than the second one,
which agrees with intuition.

5.8. Analysis of Variance:

The analysis of variance is a powerful statistical tool for tests of significance. The term
„Analysis of Variance‟ was introduced by Prof. R.A. Fisher to deal with problems in
agricultural research. The test of significance based on t-distribution is an adequate
procedure only for testing the significance of the difference between two sample means.

5.1.1. Meaning:
Analysis of variance (ANOVA) is a collection of statistical models used to analyse the
differences between group means and their associated procedures (such as "variation"
among and between groups). In ANOVA setting, the observed variance in a particular
variable is partitioned into components attributable to different sources of variation. In its
simplest form, ANOVA provides a statistical test of whether or not the means of several
groups are equal and therefore generalises t-test to more than two groups. Doing
multiple two-sample t-tests would result in an increased chance of committing a type I
error. For this reason, ANOVAs are useful in comparing (testing) three or more means
(groups or variables) for statistical significance.

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M. B. A. (Sem. – I) Business Research Methods
It is a method of testing the null hypothesis that several group means are equal in the
population, by comparing the sample variance estimated from the group means to that
estimated within the groups. Variation is inherent in nature. The total variation in any set
of numerical data is due to a number of causes which may be classified as:
a) Assignable causes.
b) Chance causes.
The variation due to assignable causes can be detected and measured whereas, the
variation due to chance causes is beyond the control of human hand and cannot be
traced separately

5.1.2. Definition:
Following is the definition of analysis of variance:
1) R.A. Fisher:
“Analysis of Variance (ANOVA) is the "Separation of Variance ascribable to one
group of causes from the variance ascribable to other group". By this technique the
total variation in the sample data is expressed as the sum of its nonnegative
components where each of these components is a measure of the variation due to
some specific independent source or factor or cause.”

5.1.3. Assumptions:
For the validity of the F-test in ANOVA the following assumptions are made.
1) The observations are independent.
2) Parent population from which observations are taken is normal.
3) Various treatment and environmental effects are additive in nature.

5.1.4. Methods of Variance Analysis:

The various methods of variance analysis are as follows:
1) One-way Classifications:
The one-way ANOVA task enables to perform an analysis of variance when there is
a continuous dependent variable and a single classification variable. In statistics,
one-way analysis of variance (abbreviated one-way ANOVA) is a technique used to
compare means of two or more samples (using the F distribution). This technique
can be used only for numerical data. The ANOVA tests the null hypothesis that
samples in two or more groups are drawn from populations with the same mean
values. To do this, two estimates are made of the population variance. These
estimates rely on various assumptions (see below). The ANOVA produces an F-
statistic, the ratio of the variance calculated among the means to the variance within
the samples.
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If the group means are drawn from populations with the same mean values, the
variance between the group means should be lower than the variance of the
samples, following the central limit theorem. A higher ratio therefore implies that the
samples were drawn from populations with different mean values. Typically,
however, the one-way ANOVA is used to test for differences among at least three
groups, since the two-group case can be covered by a t-test (Gosset, 1908). When
there are only two means to compare, the t-test and the F-test are equivalent; the
relation between ANOVA and t is given by F = t2.
Assumptions of One-way Classification:
The results of a one-way ANOVA can be considered reliable as long as the
following assumptions are met:
a) Response variable are normally distributed (or approximately normally
distributed).
b) Samples are independent.
c) Variances of populations are equal.
d) Responses for a given group are independent and identically distributed normal
random variables (not a simple random sample (SRS)).
ANOVA is a relatively robust procedure with respect to violations of the normality
assumption. If data are ordinal, a non-parametric alternative to this test should be
used such as Kruskal-Wallis one-way analysis of variance.
2) Two-way Classifications:
The general factorial procedure provides regression analysis and analysis of
variance for one dependent variable by one or more factors and/or variables. The
factor variables divide the population into groups. Using this general linear model
procedure, one can test null hypotheses about the effects of other variables on the
means of various groupings of a single dependent variable. One can investigate
interactions between factors as well as the effects of individual factors, some of
which may be random. In addition, the effects of covariates and covariate
interactions with factors can be included. For regression analysis, the independent
(predictor) variables are specified as covariates.
Assumptions of Two-way Classification:
As with other parametric tests, we make the following assumptions when using two-
way ANOVA:
a) The populations from which the samples are obtained must be normally
distributed.
b) Sampling is done correctly. Observations for within and between groups must be
independent.
c) The variances among populations must be equal (homoscedastic).
d) Data are interval or nominal.

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5.9. Research Reports: Writing and Presentation:
Report writing is the last major step in research process. The research effort is not
completed until the report on it is written. Report writing is the end product of research
activity. The purpose of a report is to tell the interested readers, the problem
investigated, the methods used to solve the problem, the results and the conclusions.
Report writing is a highly skilled work. A report must contain all the relevant details
required by a reader to comprehend the findings and to determine the validity of the
results. Preparation of reports is time consuming and expensive. Therefore, reports
have to be very sharply focused in purpose, content and readership.

5.9.1. Meaning of Report Writing:

A report is a presentation of facts and findings, usually as a basis for recommendations;
written for a specific readership and probably intended to be kept as a record. A
research report is a typed report of 6 to 12 pages in length dealing with a research topic
covered as part of the its content. The research report consists of research that you do
on the topic as well as your interpretation of this information, including applicability.
A research report is a document prepared by an analyst or strategist who is a part of
the investment research team in a stock brokerage or investment bank. A research
report may focus on a specific stock or industry sector, a currency, commodity or fixed-
income instrument or even on a geographic region or country. Research reports
generally, but not always, have "actionable" recommendations (i.e., investment ideas
that investors can act upon).
Research reports are produced by a variety of sources, ranging from market
research firms to in-house departments at large organisations. However, in the
investment industry, the term usually refers to "sell side" research or investment
research produced by brokerage houses. Such research is disseminated to the
institutional and retail clients of the brokerage that produces it. Research produced by
the "buy side," which includes pension funds, mutual funds and portfolio managers, is
usually for internal use only and is not distributed to external parties.

5.9.2. Need of Report Writing:

The needs of report writing are as follows:
1) Explanation:
Researchers must prepare a thorough report as management may not be able to
understand the research methodology or the analysis process without a clear
explanation. Terms such as 'stratified sample", Projective techniques or confidence
level may have no meaning to those whose responsibility it is to make decisions
based on the research.

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Without an explanation of these terms the data will either be meaningless or
misunderstood. Marketing research is also used in fields other than just consumer
marketing.
Example: A study done on political issues may well have a reader who is familiar
with political strategy but unfamiliar with research methodology .
2) Preservation:
A second reason for a written report is so that the knowledge that is obtained from
the research continues to be available in the future. The research data and
recommendations need to be maintained for both the marketing department and
management. All companies have personnel changes and it is particularly common
for marketing professionals to change positions frequently .Even the manager who
commissioned the research may be promoted or leave the company. If there is no
written report , the new manager will have no access to the knowledge that resulted
from the research effort . In this case, duplicate research may be conducted.
3) Documentation:
An important purpose of the report is not only to report data or information. The
written report is where the recommendations that results from the data and analysis
are explained. These recommendations are the result of marketing researchers'
analysis and interpretation of the data. These recommendations should be reported
as actionable ideas that management should consider implementing.
4) Clarification:
A final reason for writing the report is to ensure that, the marketing researchers who
have conducted the research have a document that details findings and conclusions
in case of future misunderstanding. If management makes a decision that causes a
future loss of revenue, it might be easy to state that the decision was based on
research conducted by the marketing department. If there is a written document this
misrepresentation can be clarified.

5.9.3. Characteristics of a Good Research Report:

A good research report needs to be having following characteristics as stated below:
1) Precision:
In a good research report, the writer is very clear about the exact purpose of writing
it. This investigation, analysis and recommendations are directed by this central
purpose. Precision gives a kind of unity and coherence to the report and makes it a
valuable document.
2) Accuracy of Facts:
The scientific accuracy of facts is very essential to a good research report. Since,
reports invariably lead to decision-making, inaccurate facts may lead to disastrous
decisions.

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3) Relevance:
The facts presented in a research report should be not only accurate but relevant
also. White, it is essential that every fact included in a report has a bearing on the
central purpose, it is equally essential to see that nothing relevant has escaped
inclusion. Irrelevant facts make a report confusing; exclusion of relevant facts
renders it incomplete and likely to mislead.
4) Reader-orientation:
A good research report is always reader-oriented. While drafting a report, it is
necessary to keep in mind the person(s) who is (are) going to read it. A report
meant for the layman will be different from another meant for technical experts.
5) Objectivity of Recommendations:
If recommendations are made at the end of a research report, they must be
impartial and objective. They should come as a logical conclusion to investigation
and analysis. They must not reveal any self-interest on the part of the writer.
6) Simple and Unambiguous Language:
A good research report is written in a simple, unambiguous language. It is a kind of
scientific document of practical utility hence it should be free from various forms of
poetic embellishment like figures of speech.
7) Clarity:
A good research report is absolutely clear. Clarity depends on proper arrangement
of facts. The report writer must proceed systematically. He should make his purpose
clear, define his sources, state his findings and finally make necessary
recommendations. He should divide his report into short paragraphs giving them
headings and insert other suitable sign-posts to achieve greater clarity.
8) Brevity:
A research report should be brief. It is difficult to define brevity in absolute terms.
Nor can brevity be laid down as a rule. All that can be said is that, a good report is
as brief as possible. Brevity should not be achieved at the cost of clarity. Nor should
it be at the cost of completeness. Sometimes, the problem being investigated is of
such importance that it calls for a detailed discussion of facts. Then this discussion
should not be evaded. Brevity in a report is the kind of brevity one recommends for
a précis. Include everything significant and yet be brief.
9) Grammatical Accuracy:
The grammatical accuracy of language though listed at number 9 in the
characteristics of a good research report is of fundamental importance. It is one of
the basic requisites of a good report as of any other piece of composition. Who is
going to read a report if its language is faulty? Besides faculty construction of
sentences makes the meaning obscure and ambiguous.

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 Data Analysis and Report Writing

5.9.4. Structure of Research Report:

Format of Research Report:
The research report of any research study like M. Phil, Ph.D. or field studies and
projects has to be presented in a scientific layout. There is a standard design which is
followed for presentation of reports:
A) Preliminary Section:
The preliminary or introductory section includes the following items :
1) Cover and Title Page:
The cover and the title page of a report contain the following information :
a) Title of the subject or project.
b) The name of the researcher.
c) The nature of the study.
d) The name of the institution where prepared.
e) The date of presenting it.
2) Forward:
The forward is written by an authority on the subject or the sponsor of the
research and introduces the author and the work to the reader. At the end of the
forward, the writer‟s name appears on the right side. Address and the place of
writing the forward appear on the left side. Name, address, place and date are
put in italics. The first page of the forward is not numbered, but it is counted
among the introductory pages.
3) Acknowledgement:
Preliminary section also includes the acknowledgement expressing gratitude to
those who helped in the conduct, completion and presentation of the report. At
the end of the acknowledgement, only the name of author appears. It should be
in the right hand corner and in italics.
4) Table of Content:
The table of the contents should cover all the essential parts of the book. It
should be clear, attractive and brief. It is a summary and a guide to various
segments of the book. The heading TABLE OF CONTENTS or CONTENTS in
all capital letters appears at the top. Forward, acknowledgements, numbers and
title of the sections, chapters, center heads, center sub-heads and side heads
are listed on the left side. The corresponding page numbers are given on the
right side.
5) Lists of Graphs, Tables, Figures and Maps:
Introductory section also includes the lists of graphs, tables, figures and maps.
Each list starts on a separate page. If the items in each list are few more than
one list are put on the same page but under different headings, the headings for
these lists may be in all capital letters.

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B) Main Body:
The main body of the report contains the following items :
1) Introduction:
A general introduction is given about the field or subject from which the problem
is selected. Then the problem itself is introduced. This introduction must include
the statement of the problem and its scope. It should be followed by the
hypothesis, significance, limitations, objectives, assumptions and definitions of
important concepts.
2) Data and Methodology:
The sources of data and their reliability should be explained and at the same
time, it should also give the explanation about the alternative sources of data,
which were ignored. The sample design, size of a sample, methods used for
selection of sample, selection of variables and the methods of analysis must be
explained. This must include data collection techniques, methods of analysis
and methods of testing the hypothesis.
3) Analysis of Data:
This includes the analysis of data. The data collected has to be processed and
then treated with the scientific methods to get the result. It is very difficult to
interpret the results. The results are presented with the help of tables, graphs
and diagrams. The results, thus, obtained should be critically interpreted.
4) Conclusions and Recommendations:
It should contain the main finding of the research investigation. This must clearly
explain whether the hypotheses have been established or rejected. Many
research studies are undertaken with the sole objectives of making
recommendations and form very important part of the report writing. The
suggestions, the recommendations should be supported by scientific and logical
arguments.
C) Reference Section:
Reference section includes the following items :
1) Appendices:
Supplementary or secondary references are put in the appendices section. All
appendices should be listed in the table of contents.
The following material is put in the appendices :
a) Sample questionnaire.
b) Transcription sheet.
c) Sample interviews.
d) Government reports.
e) Statistical table and calculations.
f) Supportive legal decisions, law and documents.
The appendices can be serialised with capital letters.

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2) Bibliography:
A bibliography lists the sources used in the preparation of report. These may be
books, articles in the periodicals and reports and documents issued by official
and unofficial agencies. It is the acknowledgement of those authors and books
from where researcher has drawn a material or technique. Books, journals,
reports, research, papers etc. should be mentioned in separate sections. It
should be completed in all respects so that it will become easy to locate the
reference. If a bibliography is not very long one, it can be put in alphabetical
order by author. But, if it is long one and the references included are diverse, it
should be classified according to the type of publication.
3) Index:
If a research report is to be published, the writer may like to give index at the
end of the report. An index is given to assist readers to instantaneously spot the
type of information which they want to get. The preparation of index is a
labourious task. It has to be carried out carefully.
a) Subject Index:
Subject index is a reference to important concepts, terms and facts with the
citation of page numbers where these appear. It is arranged alphabetically.
b) Author Index:
The author index reference contains the names of the authors of different
materials arranged alphabetically and with page citation.

   

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M. B. A. (Sem. – I) Business Research Methods
 Review Questions 

Q.1. What do you mean by data processing? Explain different stages of data
processing.
Q.2. What is editing? Explain its various types.
Q.3. Explain data analysis in detail.
Q.4. Discuss various types of univariate analysis.
Q.5. Explain the term frequency distribution and its construction.
Q.6. What do you mean by linear regression analysis? Discuss its relationship with
correlation.
Q.7. What is bivariate analysis? Explain various test conducted under this type of
analysis.
Q.8. Write short note on f - test z - test and t test.
Q.9. What is parametric and non parametric test? State and explain some non-
parametric test.
Q.10.Explain analysis of various along with its methods.
Q.11.Discuss research report writing and its presentation in detail.
Q.12.Write Short Notes on Following:
1) Tabulation of Data.
2) Frequency Distribution.
3) Mean.
4) Research Reports.
5) Median.
6) Bar Charts.
7) Pie Charts.

   

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 Bibliography
Bibliography
Reference Books:
 Business Research Methods by Donald Cooper & Pamela Schindler, TMGH, 9th
Edition.
 Business Research Methods by Alan Bryman & Emma Bell, Oxford University
Press, 2ndEdition
 Research Methodology by C.R.Kothari, New Age International Publication, 2nd
Edition
 Research Methodsfor Social Work by Allen, Earl R. Babbie, Cengage, 7thEdition
 Research Methods in Business Studies: A Practical Guideby Pervez Ghauri, Dr
Kjell Gronhaug, FT Prentice Hall
 Research Methodology- Neerja- Scitech Publication
 Business Research Methods by Sachdeva Himalaya Publication
 The Practice of Social Research by Earl R. Babbie, Wadsworth, 13thEdition
 Business Research Methods by William G. Zikmund, Barry J. Babin, Jon C.
Carr, Mitch Griffin, Cengage Learning, 8th Edition
 Approaches to social research by Royce Singleton, Bruce C. Straits, Margaret
Miller Straits, Oxford University Press, 2ndEdition
 Handbook of Research Design and Social Measurement by Delbert Charles
Miller, Neil J. Salkind, Sage Publication, 6thEdition
 Research Methods: The Basics by Nicholas S. R. Walliman, Nicholas Walliman,
Routledge, 1stEdition
 SPSS Handbook by Himalaya Publications
 Doing Your Undergraduate Project By Denis Reardon
 Evaluation and Social Work Practice edited by Ian Shaw, Joyce Lishman
 Gower Handbook of Purchasing Management By Marc Day, Chartered Institute
of Purchasing & Supply, Gower Publishing Company
 Business Research by D. Coldwell and F. Herbest

Websites:
www.socialresearchmethods.net
www.oup.com
www.staff.ncl.ac.uk/david.harvey
shodhganga.inflibnet.ac.in
www.ajol.info
www.ijsrp.org

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