RESEARCH METHODOLOGY (NMBA 028)

Unit 16

RESEARCH METHODS FORSTRATEGIC MANAGERS

Prepared by: Dr. R. K. JaiswalAsso. Professor1RESEARCHResearch means a detailed study of a subject, especially in order to discover (new) information or reach a (new) understanding.2RESEARCHResearch can be defined as the search for knowledge, or as any systematic investigation, with an open mind, to establish novel facts, usually using a scientific method.3RESEARCHResearch is an original contribution to the existing stock of knowledge making for its advancement. It is the search of truth with the help of study, observation, comparison and experiment. 4DEFINITIONS OF RESEARCH 1) By Martyn Shuttleworth - "In the broadest sense of the word, the definition of research includes any gathering of data, information and facts for the advancement of knowledge."

2) By Creswell - "Research is a process of steps used to collect and analyze information to increase our understanding of a topic or issue".

5TYPES OF RESEARCH1. DESCRIPTIVE VS. ANALYTICAL

Descriptive ResearchAlso known as statistical research.Describes data and characteristics about the population or phenomenon being studied.Does not answer questions about e.g.: How/when/why the characteristics occurred.The major purpose of descriptive research is description of the state of affairs as it exists at present.In social science and business research we quite often use the term ex post facto research for descriptive research studies.Although, the data description is factual, accurate and systematic, the research cannot describe what caused a situation.For example, frequency of shopping, preferences of people.

6TYPES OF RESEARCH1. DESCRIPTIVE VS. ANALYTICAL

Analytical ResearchThe researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material so as to find the answers of questions, such as how/when/why.

The aim of this research is to improve practice in the future.

7TYPES OF RESEARCH2. APPLIED VS. FUNDAMENTAL Applied ResearchResearch can either be applied (or action) research or fundamental (basic or pure) research.Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organization.The central aim of applied research is to discover a solution for some pressing practical problems.

Fundamental ResearchMainly concerned with generalisations and with the formulation of a theory.Gathering knowledge for knowledges sake is termed pure or basic research.Basic research is directed towards finding information that has a broad base of applications and thus, adds to the already existing organized body of scientific knowledge.

8TYPES OF RESEARCH3. QUANTITATIVE VS. QUALITATIVE Quantitative ResearchTends to focus on measurement and proof.Based on the premise that something is meaningful only if it can be observed and counted.Key characteristics are numerical data that permits a range of statistical analysis.May be experimental, descriptive, correlation and causal comparison.

Qualitative ResearchAims to gather an in-depth understanding of human behavior and the reasons that govern such behavior.The method investigates the why and how of decision making, not just what, where, when.9TYPES OF RESEARCH4. CONCEPTUAL VS. EMPIRICAL Conceptual ResearchRelated to an idea or theory.Generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones.Focuses on developing a theory to explain specific phenomena or behaviours.

Empirical ResearchTests the predictions of conceptual research by focusing on real people and real situations. Then concepts or theories may need to be adjusted to explain empirical findings.Data based research, coming up with conclusions which are capable of being verified by observation or experiment. We can also call it as experimental type of research.10TYPES OF RESEARCH5. Some Other Types of ResearchAll other types of research are variations of one or more of the above stated approaches, based on either the purpose of research, or the time required to accomplish research, on the environment in which research is done, or on the basis of some other similar factor. We have different types of research they are:Exploratory or Formulative research studiesExperimental research studiesDiagnostic research studiesHypothesis testing research studiesCorrelational research studiesComparative research studiesLongitudinal research studySimulation research study11TYPES OF RESEARCH5. Some Other Types of Research 1. Exploratory or Formulative research studies:To gain familiarity with a phenomenon or to achieve new insights into.

2. Experimental research studies:To carry out the study under controlled conditions.

3. Diagnostic research studies:To determine the frequency with which something occurs or with which it is associated with something else.

4. Hypothesis testing research studies:To test a hypothesis of a casual relationship between variables. 12TYPES OF RESEARCH5. Some Other Types of Research 5. Correlational research studies:To discover relationships between two variables, e.g. relation between size of pack and consumption rate.

6. Comparative research studies:Researcher attempts to study the comparison of institutions, organization and practices.

7. Longitudinal research study:To study the problem over a long period of time.

8. Simulation research study:To conduct study in an artificial environment which is very similar to real environment. 13RESEARCH PROCESSStep -1 Formulating/Identifying the Research ProblemStep -2 Extensive Literature SurveyStep -3 Specifying the Purpose of ResearchStep -4 Developing the HypothesisStep -5 preparing the Research DesignStep -6 Data CollectionStep -7 Data AnalysisStep -8 Hypothesis TestingStep -9 Generalisation and InterpretationStep -10 Preparation of the Report or Presentation of Results14Step - 1 Formulating/Identifying the Research ProblemFirst and most crucial step in the research process.Main function is to decide what you want to find out about.Sources of research problems:

People- a group of individuals. Problems- examine the existence of certain issues or problems relating to their lives; toascertain attitude of a group of people towards an issue. Programmes- to evaluate the effectiveness of an intervention. Phenomena- to establish the existence of regularity.15Considerations in selecting aresearch problem1. Interest2. Magnitude3. Level of expertise4. Relevance5. Availability of data6. Ethical issues16Steps in formulation of a research problemStep-1 Identify a broad field or subject area of interest to you.Step-2 Dissect/ Divide the broad area into sub areas.Step-3 Select what is of most interest to you.Step-4 Raise research questions.Step-5 Formulate objectives.Step-6 Assess your objectives.Step-7 Double check.

17Step - 2 Extensive Literature Reviewa. Bring clarity and focus to your research problem;b. Improve your methodology;c. Broaden your knowledge;d. Contextualise your findings.18Step - 3 Specifying the Research ObjectivesObjectives are the goals you set out to attain in study. They inform a reader what the researcher want to attain through the study.

Objectives should be listed under two headings:

a) Main objectives (aims)b) Sub-objectives

19Step - 4 Developing the Hypothesisa hypotheses is a hunch, assumption, suspicion, assertion or an idea about a phenomenon, relationship or situation, the reality or truth of which you do not know.

The functions of hypotheses:Provides a study with focus. Tells you what data to collect and what not to collect.Enhances objectivity in a study.

20Step - 5 Preparing the Research DesignThe conceptual structure within which research would be conducted.The function of research design is to provide for the collection of relevant information with minimal expenditure of effort, time and money.

The preparation of research design involves the consideration of the following:

1. Objectives of the research study.2. Nature of Study 3. Source of Data4. Sample Design5. Tool and Technique of Data collection6. Data Analysis Tools21Step - 6 Data CollectionIt is to collect the data from which you will draw inferences and conclusions for your study.

Data can be collected by any one or more of the following ways:

By observationThrough personal interviewThrough telephone interviewsBy mailing of questionnaires Through schedules

22Step - 7 Data AnalysisRequires a number of closely related operations such as establishment of categories, the application of these categories to raw data through edidtng, coding, tabulation and then drawing statistical inferences.

Editing: Improves the quality of the data for coding. Researcher classify the raw data into some purposeful and usable categories.Coding: Categories of data are transformed into symbols that may be tabulated and counted.Tabulation: The classified data are put in the form of tables. The mechanical devices such as computer can be used.

After tabulation, analysis work is done that is generally based on the computation of various percentages, coefficients, etc., by applying various well defined statistical formulae.In the process of analysis, inferences related to study are drawn.

23Step - 8 Hypothesis TestingTo test the hypotheses, if any.Do the facts support the hypotheses or they happen to be contrary? Various tests, such as Chi square test, t-test, F-test, have been developed by statisticians for the purpose.The hypotheses may be tested through the use of one or more of such tests, depending upon the nature and object of research inquiry. Hypothesis-testing will result in either accepting the hypothesis or in rejecting it.24Step - 9 Generalisation and InterpretationIf a hypothesis is tested and upheld several times, it may be possible for the researcher to arrive at generalisation, i.e., to build a theory.As a matter of fact, the real value of research lies in its ability to arrive at certain generalisations.If the researcher had no hypothesis to start with, he might seek to explain his findings on the basis of some theory. It is known as interpretation.The process of interpretation may quite often trigger-off new questions which in turn may lead to further researches.25Step - 10 Preparation of the Report orPresentation of ResultsFinally, the researcher has to prepare the report of what has been done by him. The layout of the report should be as follows:

(i) Preliminary pages(ii) Main text(iii) End matter.26preliminary pages : In it, report should carry title, date, acknowledgements and foreword. Then there should be a table of contents followed by a list of tables, graphs and charts, if any, given in the report.

main text : In this part, the report should have the following parts:(a) Introduction(b) Summary of findings(c) Main report(d) Conclusion

End matter : As the word suggests itself, is written at the end of the report. It should contain bibliography, i.e., list of books, journals, reports consulted, and appendices etc.27SAMPLE AND SAMPLINGA Sample is a part of the total population.It can be an individual element or a group of elements selected from the population.It is a subset and representative of the population.

Sampling is 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 population using special sampling techniques called sampling.28DATA COLLECTIONThe task of data collection begins after a research problem has been defined and research design chalked out. There are two types of data-Primary Data, andSecondary Data29DATA COLLECTION(1) SECONDARY DATA Secondary data are those data which have already been collected by someone else for some other purpose. These have already been gone through the statistical process.

ADVANTAGE Less costly as data is already available.Faster to collect and process.Provides valuable insights and contextual familiarity with the subject matter.Provides a base on which further information can be collected.30DATA COLLECTIONSources and Types of Secondary Data31(1) SECONDARY DATA The secondary data is of two types:

1. Internal Data: Internal data is the data which is available internally within the organization conducting the research. The main advantage of this data is that it is easily available and high degree of accuracy and relevance is there. E.g.

Sales data - preferably by type of customer, payment method, product line, time period, geographic location;Customer Feedback Forms;Cost data, preferably by product.32(1) SECONDARY DATA 2. External Data: External data is the secondary data that is available from outside the organization for which the research is being conducted. It can be classified as:(a) Published Data: These are the most popular of all the sources of external data. Different sources of published data are:Numeric Databases, including census data, values databases consumer data;Bibliographic Databases, Abstracts, Directories and Indexes, including Standard Industrial Classifications;Government, local, state, federal and international;Academic research;Business, trade and industry media research, including retail data, industrial data, wholesale data, advertising data, media data, audience data.33(1) SECONDARY DATA (b) Computerised database: All the above types of data are available in computerized database. Computerised database may be available in following ways:(c) Syndicated Services: Syndicated data are secondary data that is collect and sold by research firms such as Centre for Monitoring Indian Economy (CMIE)34(2) PRIMARY DATAPrimary data are those data which are collected afresh and for the first time, and thus happen to be original in character.

Importance of Primary Data:

Validity: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. Authenticity:Authenticity is the genuineness of the research. Primary data are more authentic as give the facts to conduct research. Reliability:Reliability is the certainty that the research is enough true to be trusted on. Reliability improves with using primary data.

35Sources of Primary DataObservationsInterviewExperimentsSurvey36INTERVIEW METHODIt involves presentation of oral-verbal stimuli and reply in terms of oral-verbal responses.This method can be used through personal interviews and, if possible, through telephone interviews.

Characteristics of Interview Methoda) Close contact or interaction including dialogue between two or more persons. b) Face to face contact or primary relationship between the individuals. d) Most suitable method of data collection for business and economic problems.37INTERVIEW METHOD(1) Personal interviews: Personal interview method requires a person known as the interviewer asking questions generally in a face-to-face contact to the other person or persons. MeritsMore information and in greater depth.Interviewer by his own skill can overcome the resistance.Greater flexibility.Observation method can as well be applied.Personal information can as well be obtained easily.38INTERVIEW METHOD(1) Personal interviewsMeritsSamples can be controlled more effectively as there arises no difficulty of the missing returns; non-response generally remains very low.The interviewer can usually control which person will answer the questions.The interviewer may catch the informant unprepared and thus, may secure the most spontaneous and true reactions.The language of the interview can be adopted to the ability of the person interviewed and thus there is no chance of misinterpretations concerning questions.

39INTERVIEW METHOD(2) Telephone interviews: This method of collecting information consists in contacting respondents on telephone itself. It is not a very widely used method, but plays important part in industrial surveys, particularly in developed regions. The chief merits of such a system are:MeritsMore flexible in comparison to mailing method.Faster than other methods.Cheaper than personal interviewing methodRecall is easy; callbacks are simple and economical.There is a higher rate of response.40INTERVIEW METHOD(2) Telephone interviewsMeritsReplies can be recorded without causing embarrassment to respondents.Interviewer can explain requirements more easily.At times, access can be gained to respondents who otherwise cannot be contacted for one reason or the other.No field staff is required.Representative and wider distribution of sample is possible.41QUESTIONNAIREThe most commonly used method in survey.

Questionnaire is a list of questions for which the respondents give answers.

We can administer questionnaires by mail, telephone, using face-to-face interviews, as handouts, or electronically (i.e., by e-mail or through Web-based questionnaires).42Characteristics of a Good QuestionnaireRight length.Neatly typed and presented on a good quality paper.Questions as simple as possible.Clear worded questions. Unambiguous worded questions should be avoided.The sequence of questions logical.Objective questions. Leading questions should be avoided.The questions generally move from simple to difficult level or general to specific.43Characteristics of a Good QuestionnaireAttract the attention and generate interestThe reliability of the questionnaire and validity of the questions asked should be maintained.Sufficient scope should be given for the informant to express all the relevant facts, thoughts and information.It should avoid asking double meaning worded questions or two questions in one item: Keep questions short and concise.Annoying and embarrassing questions should be avoided.44TYPES OF QUESTIONS IN QUESTIONNAIRE DESIGNThere are two types of questions in questionnaire.(1) Open-ended, and (2) Closed-ended

(1) Open-ended QuestionsThese questions give the respondents freedom to express their opinions in their own manner.These questions dont have predetermined set of responses and the respondent is free to answer whatever he/she feels right. By including open format questions in questionnaire, researcher can get true, insightful and even unexpected suggestions.An ideal questionnaire would include an open-ended question at the end of the questionnaire that seeks feedback and suggestions for improvements from respondents.E.g. Give your opinion about the quality of Hindustan Unilevers Products.45TYPES OF QUESTIONS IN QUESTIONNAIRE DESIGN(2) Closed-ended QuestionsMultiple choice questions, where respondents are restricted to choose among any of the given multiple choice answers.

No fixed limit as to how many multiple choices should be given.

One of the main advantages of including closed-ended questions in questionnaire design is the ease at performing preliminary analysis.

46Types of closed-ended questions for questionnaire designi. Leading Questions: Questions that force the respondent for a particular type of answer are known as leading questions. In a leading question, all the answers would be equally likely. An example of a leading question would be a question with choices such as, fair, good, great, poor, superb, excellent etc.E.g. How would you rate the product of Hindustan Unilever?Fair (2) Good(3) Excellent(4) Superb

ii. Likert Questions: Likert questions can help you ascertain how strongly your respondents agree to a particular statement. Such type of questions also help you assess how your customers feel towards a certain issue, product or service.E.g. Hindustan Unilevers Product Have to improve on quality?(1) Strongly Agree (2) Agree(3) Neither Agree nor Disagree(4) Disagree (5) Strongly Disagree47Types of closed-ended questions for questionnaire designiii. Dichotomous Questions: These are simple questions that ask respondents to answer in a yes or no. One major drawback with dichotomous questions is that it cannot analyze the answers between yes and no, there is no scope for a middle perspective.E.g. Do you like the products of Hindustan Unilever?Yes(2) No

iv. Bipolar Questions: Bipolar questions are the ones having two extreme answers written at the opposite ends of the scale. The respondents are asked to mark their responses between those two.E.g. How would you describe the Products of Hindustan Unilever?Efficient .. .. .. .. .. .. .. .. .. .. .. InefficientFast .. .. .. .. .. .. .. .. .. .. .. .. SlowReliable .. .. .. .. .. .. .. .. .. .. .. Unreliable48Types of closed-ended questions for questionnaire designv. Rating Scale Questions: In rating scale questions, the respondents are asked to rate a particular issue on a scale that ranges between poor to good. Rating scale questions usually have an even number of choices, so that respondents are not given the choice of selecting a middle option.E.g. How would you rate the products of Hindustan Unilever?Good(2)Fair(3) Poor(4) Very Poor

vi. Buying Propensity Questions: Buying propensity questions try to assess the future intentions of customers and determine respondents buying intention. These questions ask respondents if they want to buy a particular product, whether they would buy such a product in future.E.g. If mobile phones had in-build auto voice recorder, would you prefer to buy it?(1) Definitely (2) Probably (3) Probably Not(4) Not Sure (5) Definitely Not49Types of closed-ended questions for questionnaire designvii. Checklist Questions: Checklist questions try to assess responses of the respondents if they have more than one choice. Respondents have to select all the alternatives that he wants.

E.g. What features would you like to have in a mobile phone? Big screen Camera Touch screen Bluetooth GPRS Video Calling50Questions to Be Avoided In a QuestionnaireEmbarrassing QuestionsRespondents might feel uncomfortable to answer such questions and might refuse to answer your questionnaire altogether.2. Positive/ Negative Connotation QuestionsWhile defining a question, strong negative or positive overtones must be avoided. Ideal questions should have neutral or soft overtones.3. Hypothetical QuestionsHypothetical questions are based on assumption and fantasy. These types of questions should be avoided in questionnaires. Generally the data collected through such questions are inconsistent and unclear. An example of a hypothetical question would be "If you were the CEO of an ABC organization what would be the changes that you would bring?"51PRECAUTIONS IN THE CONSTRUCTION OF A QUESTIONNAIRE 1. Simple, unambiguous and clear2. Stimulating for the informants3. Limited number of questions4. Technical and special words5. Hypothetical questions should not be asked52SOME OTHER METHODS OF DATA COLLECTION1. Warranty cards2. Distributor or store audits3. Pantry audits4. Consumer panels5. Use of mechanical devices6. Projective techniques7. Depth interviews8. Content-analysisDifference Between Questionnaires and Schedules53THANK YOU.5454