UNIT 1

Definition of Buisness Research:

 “A scientific and systematic search for relevant information on a specific topic”.
 Redman and Mory define research as a “systematized effort to gain new
knowledge”.
 A systematic enquiry that provides information to guide managerial decisions

Why Study Business Research?

 Information overload
 Technological connectivity
 Shifting global centres of economic activity and competition
 Increasingly critical scrutiny of big business
 More government intervention
 Battle for analytical talent
 Greater computing power and speed
 New perspective on established research methodologies

What is Good Research:

 Purpose clearly defined
 Research Process Detailed
 Research design thoroughly planned
 High ethical standards applied
 Limitations frankly revealed
 Adequate analysis for decision maker’s needs
 Finding presented unambiguously
 Conclusion Justified
 Research’s experience reflected

Decision Support System (DSS) :

• A system that help decision makers confront problems through direct interactions
with computerized database and analytical software programs
• Store data and make it insightful and available when needed
• CRM is a part of DSS
DSS
Input Database Output
Software

Advantages of DSS :
1) Improved Problem Solving :
The process of problem solving can be made speedy and effective with the, help of DSS. It
helps in accurate identification of the problem and provides relevant data also.
2) Enhanced Communications :
DSS also results in enhanced. communications within the organisation. It acts as both
defensive (justifying a previous action) as well as offensive (need of taking a particular action
in the future) tool.
3) Training of Managers or Researchers :
DSS also facilitates training of researchers as well as the managers for using its content like
software, shortkeys, using computers, etc.
Disadvantages of DSS :
1) Limited Storage Capability :
The storage capability of the DSS is small and it has some computational Limitations, which
affect its performance and reliability. In comparison to different other large systems, this
system is small and slow.
2) Limited Information Sharing :
Although number of systems can be used in DSS for management applications, the
information sharing capacity is limited.
3) Difficult :
The overall programming and functioning of the system is difficult to be understood by the
managers. A typical manager faces difficulty in integrating database with decision area so as
to reach required type of decisions.

Business Intelligence (BI) :

Business intelligence combines business analytics, data mining, data visualization, data tools
and infrastructure, and best practices to help organizations make more data-driven decisions

Emerging trends in business research

• Complexity of Collaboration
• Regulation and Accountability
• Industry-Sponsored Research and Other research aimed at Commercialization
• Information Technologies in research
• The globalization of research
• Policy and Political relevance

Applications of Research in functional areas of Business

Marketing function :-
 Industry or product specific studies
 Market potential analysis
 Market segmentation analysis
 Demand estimation
Product research :-
 New product research
  Product testing and development
 Product differentiation and positioning
 Evaluating new product
Pricing Research :-
 Price determination research
 Evaluating customer values
 Competitor pricing strategy
 Alternative pricing models
Promotional Research :-
 Designing communication mix
 Designing Advertisement
 Copy testing
Place Research :-
 Location Analysis
 Designing and planning of distribution channels
 Measuring the effectiveness of distribution network
Personnel and Human Resource Management :-
 Performance Management
 Employee selection and staffing
 Manpower planning
 Incentives
 Job Analysis
Financial and accounting research :-
 Asset pricing
 Corporate finance
 Capital Market
 Financial Reporting
Production and Operation Management :-
 Operation planning
 Work design
 Decision analysis
 Process planning

Language of Research
Concept:
• A generally accepted collection of meanings or characteristics associated with certain
events, objects, conditions, situations, and behaviors.
• Classifying and categorizing objects or events that have common characteristics
beyond any single observation creates concepts
• From our experiences and use words as labels to designate

Sources of Concept
 Personal experience – known ideas
 Borrow from other language or fields – new ideas
o Gravitation – why people shop in certain places
o Distance - to describe degree of variability between the attitudes of two or more
persons
Importance in Research
 For designing and testing hypotheses
 how clearly we conceptualize and how well others understand the concepts we use.
 Survey of Customer Loyalty – Faithfulness of participants
 Problems in asking people their family income

Construct:
 An image or abstract idea specifically invented for a given research and/or theory-
building purpose
 Building constructs by combining the simpler, more concrete concepts, especially
when the idea or image we intend to convey is not subject to direct observation

Variable
Variable is a measurable representation of an abstract construct. As abstract entities,
constructs are not directly measurable, and hence, we look for proxy measures called
variables. For instance, a person’s intelligence is often measured as his or
her IQ (intelligence quotient) score, which is an index generated from an analytical and
pattern-matching test administered to people. In this case, intelligence is a construct, and IQ
score is a variable that measures the intelligence construct.
The definition of a variable in the context of a research study is some feature with the
potential to change, typically one that may influence or reflect a relationship or outcome.
 Independent and Dependent -Does a newspaper coupon influence product
purchase
 Dichotomous – employed / unemployed
 Discrete – Number of Planets around a star
 Continuous – Temperature in Pune, Your age now
 Moderating or Interaction
 Extraneous (Control and cofounding)
 Intervening

Propositions: statements concerned with the relationship among concepts (logical linkage)
• Treating our employees better will make them more loyal
Hypotheses: a statement about observable phenomena (concepts) that may be judged as
true or false (outcome). a research hypothesis (or scientific hypothesis) is a statement about
an expected relationship between variables, or explanation of an occurrence, that is clear,
specific and testable.
• A Sales Person having highest product knowledge will be more productive
• If consumer’s attitude towards a product change in a positive direction, there will be
increase in the consumption of the product
• H1: A web site with a blue background will generate more sales than an otherwise
identical Web site with a red background
Relational Hypotheses
 German made cars are perceived by India consumers to be of better quality than
domestic cars
Correlational hypotheses
 Young women (under 35 years of age) purchase fewer units of our product than
women who are 35 years of age or older
 People in urban area give the Prime Minister a more favorable rating than do people
in rural area
Causal or explanatory hypotheses
 An increase in family income (IV) leads to an increase in the percentage of income
saved (DV)
 Loyalty to a particular retail store (IV) increases the probability of purchasing the
private label brands (DV) offered by that store

Constants:
a constant variable is any aspect of an experiment that a researcher intentionally keeps
unchanged throughout an experiment.
Speed of light?
Boiling point of water??

Research Question:
A research question is a specific inquiry which the research seeks to provide a response to. It
resides at the core of systematic investigation and it helps you to clearly define a path for
the research process. A research question is usually the first step in any research project

Steps in Research Process

• Identification of a research problem.
• Formulation of Hypothesis.
• Review of Related Literature.
• Preparation of Research Design.
• Actual experimentation.
• Results and Discussion.
• Formulation of Conclusions and Recommendations.
Management-Research Question Hierarchy
A useful way to approach the research process is to state the basic dilemma that prompts
the research and then try to develop other questions by progressively breaking down the
original question into more specific ones.
 Management dilemma, a symptom of an actual problem, such as rising costs, declining
sales, or a large number of defects, or emerging behaviors, attitudes, etc. that signal an
opportunity.
 A management question is a restatement of the manager’s dilemma in question form.
 A research question is the hypothesis that best states the objective of the research; the
question that focuses the researcher’s attention.
 An investigative question is the question the researcher must answer to satisfactorily
answer the research question.
 A measurement question is the question asked of the participant or the observations
that must be recorded.

Formulating a Research Question:

Formulation of a research problem means to state the problem in a way that is
researchable. It means to shape the research topic in a manner that it becomes ready for
scientific investigation. A research problem is simply the research topic.

Research proposal
A research proposal is a concise and coherent summary of your proposed research. It sets
out the central issues or questions that you intend to address. It outlines the general area of
study within which your research falls, referring to the current state of knowledge and any
recent debates on the topic.
Elements of Research Proposal
 Abstract or Summary.
 2. Introduction.
 3. Review of Literature.
 4. Methods.
 5. Results.
 6. Conclusions and Discussion.
 7. References.

Drafting a Research Proposal

• Title: Your title should give a clear indication of your proposed research approach or
key question.
• Background and Rationale: for the reader to understand the issue you are
presenting, it is necessary to provide a context.
• Research Question: a research question should be feasible, interesting, novel,
ethical, and relevant
• Research Methodology: logic of inquiry whether qualitative or quantitative, research
setting and participants, methods and procedure of data collection, methods and
procedure of data analysis and ethical issues.
• Plan of work and Time schedule: to develop a schedule, use a calendar and work
backward from the date your final draft is due, generally, it is wise to divide half of
the available time on the research phase of the project and half on the writing phase
• Bibliography: A bibliography is the list of sources a work's author used to create the
work

Evaluating a Research Proposal

• evaluate whether the proposal responds to the objectives
• evaluate the sampling plan
• evaluate the questionnaire
• evaluate the data collection approach
• evaluate the data processing methods and tools
Evaluating a Research Proposal
• evaluate the analytical tools and analysis
• evaluate the final deliverables

UNIT 2
What is Literature Review?
 • The process of locating, obtaining, reading, and evaluating the research literature in
your area of interest
• Avoid reinventing the wheel
• The topic of research may have already been addressed
• Helps in design of research
• Keeps you update

How to conduct and write review of literature

• Reading critically
• Systematic review
• Specifying the question and planning the review.
• Conducting the review
• Reporting and dissemination
• Narrative review
• Searching Databases
• Online
• Keywords and defining search parameters
• Referencing
• Style
• Avoiding plagiarism

Annotated Bibliographies
• Level I: Basic Assessment
• Tabulate
• Select
• Find the patterns
• Categorize
• Describe - In your own words or Quoted appropriately
• An annotated bibliography is a list of citations to books, articles, and documents.
• Each citation is followed by a brief descriptive and evaluative paragraph, called
the annotation.
• The purpose of the annotation is to inform the reader of the relevance, accuracy,
and quality of the sources cited.

Research design is the framework of research methods and techniques chosen by a

researcher to conduct a study.

Features of a Good Research Design:

1) Objectivity :
Objectivity refers to the ability of the research instruments to give conclusions that are free
from observer's personal biases. A good research design should be able select those
instruments only that provide objective conclusions. Usually, it is believed that maintaining
objectivity is pretty easy, but it proves to be difficult during execution of research and data
analysis.
2) Reliability :
Another essential feature of a good research design is the reliability of responses. The
instruments used in research should be able to provide similar responses to a question
asked from a respondent. If the response varies, the instrument is considered unreliable. In
other words, reliability of research design is measured in terms of consistency in responses.
3) Validity :
An important characteristic of a good research design is its ability to answer the questions in
the way it was intended to. It should focus on the objective of the research and make
specific arrangements or plan for achieving that objective.
For example, when a research is conducted to measure the effects of advertisements in
viewers, it should be able to answer this, and not the sale of a particular product.
4) Generalisability :
A research design is said to be generalisable if the outcome of the research is applicable on
a bigger population from which the sample is selected. A research design can be made
generalisable by properly defining the population properly, selecting the sample carefully,
analyzing the statistical data appropriately, and by preparing it methodologically. Therefore,
the more the outcomes are generalisable, more efficient is the research design.
5) Sufficient Information :
Any research is conducted to gain insight of the hidden facts, figures and information. The
research design should be able to provide sufficient information to the researcher so that he
can analyse the research problem in a broad perspective. The research design should be
able to identify the research problem and research objective.

Elements of Research Design

• Purpose statement
• Data collection methods
• Techniques of research data analysis
• Types of research methodologies
• Challenges of the research
• Prerequisites required for research study
• The right time for the research study
• Measurement of analysis

Qualitative research and Quantitative research

Quantitative research design: outcome of the quantitative research is represented in the
form of statistics, graphs, charts, and numbers
Qualitative research design: outcome of the qualitative research is represented in the form
of case studies, papers, generally less of statistics and numbers are used
Exploratory Research Design:
Exploratory research is a methodology approach that investigates research questions that
have not previously been studied in depth. Exploratory research is often qualitative in
nature
Types Exploratory Research Design:

1. One-on-one interview:
Conducting in-depth interviews is one of the most common qualitative research methods. It
is a personal interview that is carried out with one respondent at a time. This is purely a
conversational method and invites opportunities to get details in depth from the
respondent. One of the advantages of this method provides a great opportunity to gather
precise data about what people believe and what their motivations are.

2. Focus groups:
A focus group is also one of the commonly used qualitative research methods, used in data
collection. A focus group usually includes a limited number of respondents (6-10) from
within your target market. The main aim of the focus group is to find answers to the “why”
“what” and “how” questions. One advantage of focus groups is, you don’t necessarily need
to interact with the group in person.
3. Process of observation:
Qualitative Observation is a process of research that uses subjective methodologies to
gather systematic information or data. Since, the focus on qualitative observation is the
research process of using subjective methodologies to gather information or data.
Qualitative observation is primarily used to equate quality differences.
4.Experience Survey
It is the method of conducting surveys among the people who have had practical experience
with the problem to be studied. It conducts like an informal discussion and hence there
would not be any formal questionnaire. However, the researcher may simply have a list of
topics to be studied.

Descriptive Research Design:

Descriptive research design is a type of research design that aims to obtain information to
systematically describe a phenomenon, situation, or population

Descriptive research methods

There are three distinctive methods to conduct descriptive research. They are:
Observational method
The observational method is the most effective method to conduct this research, and
researchers make use of both quantitative and qualitative observations.
A quantitative observation is the objective collection of data, which is primarily focused on
numbers and values. It suggests “associated with, of or depicted in terms of a quantity.”
Results of quantitative observation are derived using statistical and numerical analysis
methods. For example, the researcher can track if current customers will refer the brand
using a simple Net Promoter Score question.
Case study method
Case studies involve in-depth research and study of individuals or groups. Case studies lead
to a hypothesis and widen a further scope of studying a phenomenon. However, case
studies should not be used to determine cause and effect as they can’t make accurate
predictions because there could be a bias on the researcher’s part.
Survey research
In survey research, respondents answer through surveys or questionnaires or polls. They are
a popular market research tool to collect feedback from respondents. A study to gather
useful data should have the right survey questions. It should be a balanced mix of open-
ended questions and close ended-questions. The survey method can be conducted online or
offline, making it the go-to option for descriptive research where the sample size is
enormous.

Use of Descriptive research design:

1. To Measure Data Trends
The descriptive method of research can be used to measure changes in variables over a
period of time, allowing trends to be identified and analyzed.
2. To Compare Variables
Descriptive research can be used to compare different variables, as well as how different
demographics respond to different variables.
3. To Define the Characteristics of Subjects
It can also be used to determine the different characteristics of the subjects. This can
include characteristics such as opinions, traits, behavior, etc.
4. To Verify or Validate Existing Conditions
Descriptive research can prove to be a useful tool when trying to test the validity of an
existing condition as it involves conducting an in-depth analysis of every variable before
drawing conclusions.
Cross-Sectional Survey
Cross-sectional surveys are a kind of survey where standardized data is collected from a
cross-section of the pre-determined population at a given point in time. There are two main
types of cross-sectional surveys; those with a single variable, and those with two or more
variables.
Longitudinal Survey
Longitudinal surveys are used in longitudinal studies where the same variables are observed
over a long period of time. This allows researchers to investigate the status of variables at
different points in time. There are three main types of longitudinal studies; trend studies,
panel studies, and cohort studies.

Experimental Research Design:

experimental design is the process of carrying out research in an objective and controlled
fashion so that precision is maximized and specific conclusions can be drawn regarding a
hypothesis statement.
The nature of relationships between two variables in causal experimental researches may
be divided into three categories: symmetrical, reciprocal and asymmetrical.
Symmetrical relationship can be observed when two variables fluctuate at the same time.
However, in symmetrical relationship change in one variable is not caused by change in
another variable. In other words, symmetrical relationships of two individual variables
usually would be the cause of another factor.
For example, decrease in the levels of consumption of luxury products and decrease on the
levels of consumer trust on financial institutions may occur at the same time as a result of a
third factor – increasing level of uncertainty of perspectives of national economy.

Reciprocal relationship between two variables occurs when there is a mutual influence and
reinforcement between two variables. For example, impacted by a marketing message a
consumer purchases a car from a particular brand for the first time. Consequently, the
consumer becomes loyal to the brand considering more purchases from the same brand in
the future. Hence, the mutual influence between the consumer and company.

Asymmetrical relationship relates to change in one variable (independent variable) causing

changes in another variable (dependent variable). There are four major forms of asymmetric
relationships:
1. Stimulus response relationship marks occurrence of an event as a response to certain
changes. For example, effective re-branding initiatives may have positive implications on the
volume of sales.
2. Property-disposition relationship. Property is associated with enduring nature of a
subject, whereas disposition can be explained as tendency to respond in certain ways in
certain circumstances. For example, personal properties include gender, religion, heritage
etc, while personal disposition opinions, values, attitudes etc.
3. Disposition-behaviour relationship relates to a specific type of relationship where human
behaviour is impacted in certain ways. For example, impact of management style on the
levels of employee motivation and consumer perception about the brand after the purchase
relate to disposition-behaviour relationship.
4. Property-behaviour relationship. This type of relationship relates to the impact of
property to human behaviour. For example, effects of cultural background on consumer
behaviour, implications of family life-cycle on human tendency to shop online etc.

Hypothesis:
A supposition or proposed explanation made on the basis of limited evidence as a starting
point for further investigation

Qualities of a good Hypothesis

A good Hypothesis must possess the following characteristics –
1.It is never formulated in the form of a question.
2.It should be empirically testable, whether it is right or wrong.
3.It should be specific and precise.
4.It should specify variables between which the relationship is to be established.
Framing Null Hypothesis
The null hypothesis is a general statement or default position that there is no relationship
between two measured phenomena, or no association among groups. Testing (accepting,
approving, rejecting, or disproving) the null hypothesis -and thus concluding that there are
or are not grounds for believing that there is a relationship between two phenomena (e.g.
that a potential treatment has a measurable effect) - is a central task in the modern practice
of science; the field of statistics gives precise criteria for rejecting a null hypothesis.
A null hypothesis is a precise statement about a population that we try to reject with sample
data. We don't usually believe our null hypothesis (or HO) to be true. However, we need
some exact statement as a starting point for statistical significance testing.
Null Hypothesis Examples
Often -but not always- the null hypothesis states there is no association or difference
between variables or subpopulations.
Framing Alternative Hypothesis
An alternative hypothesis is one in which a difference (or an effect) between two or more
variables is anticipated by the researchers; that is, the observed pattern of the data is not
due to a chance occurrence. This follows from the tenets of science, in which empirical
evidence must be found to refute the null hypothesis before one can claim support for an
alternative hypothesis (i.e. there is in fact a reliable difference or effect in whatever is being
studied).
The concept of the alternative hypothesis is a central part of formal hypothesis testing.
An alternative hypothesis states that there is statistical significance between two variables.
In the earlier example, the two variables are Mentos and Diet Coke. The alternative
hypothesis is the hypothesis that the researcher is trying to prove. In the Mentos and Diet
Coke experiment, Arnold was trying to prove that the Diet Coke would explode if he put
Mentos in the bottle. Therefore, he proved his alternative hypothesis was correct.
The alternative hypothesis is generally denoted as H1. It makes a statement that suggests or
advises a potential result or an outcome that an investigator or the researcher may expect.
It has been categorized into two categories: directional alternative hypothesis and non-
directional alternative hypothesis.

Five Steps in Hypothesis Testing:

• Specify the Null Hypothesis.
• Specify the Alternative Hypothesis.
• Set the Significance Level (a)
• Calculate the Test Statistic and Corresponding P-Value.
• Drawing a Conclusion.

Importance of Hypothesis Testing

Hypothesis testing is one of the most important concepts in statistics because it is how you
decide if something really happened, or if certain treatments have positive effects, or if
groups differ from each other or if one variable predicts another. In short, you want to proof
if your data is statistically significant and unlikely to have occurred by chance alone. In
essence then, a hypothesis test is a test of significance.
 UNIT 3

Measurement
The process of assigning numbers or labels to different objects under study to represent them
quantitatively or qualitatively is called measurement. It can be understood as means to denote
the amount of a particular attribute that a particular object possesses. There are certain rules
defining the process of measurement; for ex. Number 1 might be assigned to people who are
from South India and Number 2 might be assigned to people who are from North India.
Measurement is done for the attributes of the units under study but not the units themselves.
For ex. The height, weight, age or other such attributes of a person are measured.

Problem in Measurement in Management Research: Validity

The following are the possible sources of error in measurement.
Respondent: At times the respondent may be reluctant to express strong negative feelings or
it is just possible that he may have very little knowledge but may not admit his ignorance. All
this reluctance is likely to result in an interview of guesses.' Transient factors like fatigue,
boredom, anxiety, etc. may limit the ability of the respondent to respond accurately and fully.
• Situation: Situational factors may also come in the way of correct measurement. Any
condition which places a strain on interview can have serious effects on the interviewer-
respondent rapport. For instance, if someone else is present, he can distort responses by
joining in or merely by being present. If the respondent feels that anonymity is not assured,
he may be reluctant to express certain feelings.
• Measurer: The interviewer can distort responses by rewording or reordering questions. His
behaviour, style and looks may encourage or discourage certain replies from respondents.
Careless mechanical processing may distort the findings. Errors may also creep in because of
incorrect coding, faulty tabulation and/or statistical calculations, particularly in the data-
analysis stage.
• Instrument: Error may arise because of the defective measuring instrument. The use of
complex words, beyond the comprehension of the respondent, ambiguous meanings, poor
printing, inadequate space for replies, response choice omissions, etc. are a few things that
make the measuring instrument defective and may result in measurement errors. Another type
of instrument deficiency is the poor sampling of the universe of items of concern.

What is reliability?
Reliability refers to how consistently a method measures something. If the same result can be
consistently achieved by using the same methods under the same circumstances, the
measurement is considered reliable.
Eg: You measure the temperature of a liquid sample several times under identical conditions.
The thermometer displays the same temperature every time, so the results are reliable.
What is validity?
Validity refers to how accurately a method measures what it is intended to measure. If
research has high validity, that means it produces results that correspond to real properties,
characteristics, and variations in the physical or social world.
High reliability is one indicator that a measurement is valid. If a method is not reliable, it
probably isn’t valid.
Eg: If the thermometer shows different temperatures each time, even though you have
carefully controlled conditions to ensure the sample’s temperature stays the same, the
thermometer is probably malfunctioning, and therefore its measurements are not valid.
Levels of Scales of Measurement
Nominal Scale: Nominal variables (also called categorical variable) can be placed into
categories. They don’t have a numeric value and so cannot be added, subtracted, divided or
multiplied. They also have no order; if they appear to have an order then you probably have
ordinal variables instead. For example: Color of the eyes (Black, Green, Aqua, Hazel, etc.),
Gender (Male/Female), True/False.

Ordinal Scale: The ordinal scale contains things that you can place in order. For example,
hottest to coldest, lightest to heaviest, richest to poorest. Basically, if you can rank data by
1st, 2nd, 3rd place (and so on), then you have data that’s on an ordinal scale.
Ordinal scales tell us relative order, but give us no information regarding differences between
the categories. For example, in a race if Ram takes first and; Vinod takes second place, we do
not know competition was close by how many seconds.

Interval Scale: An interval scale has ordered numbers with meaningful divisions, the
magnitude between the consecutive intervals are equal. Interval scales do not have a true zero
i.e. In Celsius 0 degrees does not mean the absence of heat. For example, temperature on
Fahrenheit/Celsius thermometer i.e. 90° are hotter than 45° and the difference between 10°
and 30° are the same as the difference between 60° degrees and 80°.

Ratio Scale: The ratio scale of measurement is similar to the interval scale in that it also
represents quantity and has equality of units with one major difference: zero is meaningful
(no numbers exist below the zero). The true zero allows us to know how many times greater
one case is than another. Ratio scales have all of the characteristics of the nominal, ordinal
and interval scales. The simplest example of a ratio scale is the measurement of length.
Having zero length or zero money means that there is no length and no money but zero
temperature is not an absolute zero.

Attitude Scaling Techniques:

Attitudes are individual mental processes which determine both the actual and potential
response of each person in a social world. An attitude is always directed toward some object
and therefore, attitude is the state of mind of the individual toward a value.
RATING SCALE
 Rating scale is defined as a closed-ended survey question used to represent respondent
feedback in a comparative form for specific particular features/products/services. It is one
of the most established question types for online and offline surveys where survey
respondents are expected to rate an attribute or feature.
 Rating scale is a variant of the popular multiple-choice question which is widely used to
gather information that provides relative information about a specific topic.
 Researchers use a rating scale in research when they intend to associate a qualitative
measure with the various aspects of a product or feature. Generally, this scale is used to
evaluate the performance of a product or service, employee skills, customer service
performances, processes followed for a particular goal etc.
 Rating scale survey question can be compared to a checkbox question but rating scale
provides more information than merely Yes/No.

LIKERT SCALE
 A Likert Scale is a scale used t o measure the attitude wherein the respondents are asked
to indicate the level of agreement or disagreement with the statements related to the
stimulus objects.
 The Likert Scale was named after its developer, Rensis Likert. It is typically a five
response category scale ranging from "strongly disagree" to "strongly agree". The
purpose of a Likert scale is to identify the attitude of people towards the given stimulus
objects by asking them the extent to which they agree or disagree with
 them.
 Often, the respondents are presented with questionnaires containing the set of statements
to rate their attitude towards the objects. For example, the respondents might be asked to
rate their purchase experience with shoppers stop by assigning the score as (1= strongly
disagree, 2= disagree, 3= neither agree nor disagree, 4= agree, 5= strongly agree)

Semantic differential scale

A semantic differential scale is a survey or questionnaire rating scale that asks people to rate
a product, company, brand, or any 'entity' within the frames of a multi-point rating option.
These survey answering options are grammatically on opposite adjectives at each end. For
example, love-hate, satisfied-unsatisfied, and likely to return-unlikely to return with
intermediate options in between.
Surveys or questionnaires using the semantic differential question is the most reliable way to
get information on people’s emotional attitude towards a topic of interest.

Semantic differential scale examples & question types

 Slider rating scale: Questions that feature a graphical slider give the respondent a more
interactive way to answer the semantic differential scale question.
 Non-slider rating scale: The non-slider question uses typical radio buttons for a more
traditional survey look and feel. Respondents are more used to answering.

 Open-ended questions: These questions give the users ample freedom to express their
emotions about your organization, products, or services.

 Ordering: The ordering questions offer the scope to rate the parameters that the
respondents feel are best or worst according to their personal experiences.

 Satisfaction rating: The easiest and eye-catchy semantic differential scale questions are
the satisfaction rating questions.

Constant sum scale

A constant sum scale is a type of question used in a market research survey in which
respondents are required to divide a specific number of points or percents as part of a total
sum. The allocation of points are divided to detail the variance and weight of each category.
Constant sum scales are a less frequently used question in surveys when compared to basic
likert scales, single radio responses, or checklists (i.e. multiple response options). They are an
excellent way to create variance among a data set and truly understand which factors are key
and which are not for customers or respondents.

Graphic rating scale

A graphic rating scale (sometimes called a Likert scale) is a performance appraisal method
that lists desired traits and behaviors for each role, then rates workers on each of those on a
numbered scale. The attributes might include punctuality, quality of work, job knowledge,
teamwork, accountability, responsibility, etc.
This helps an organization determine employee performance levels, increase efficiency and
productivity, and make salary adjustments or promotions. The graphic rating scale method
also helps HR managers obtain quantitative data regarding various employee attributes in
relation to a specific job description.

What is a Ranking Scale?

Ranking scales offer a different approach to gathering data—these questions ask respondents
to compare items to one another, rather than rating them on a common scale. When trying to
negotiate which items to remove from your dessert menu, for example, you might ask
customers to rank the seven desserts you offer from their most favorite to least favorite,
giving you insight into customer preferences.

Let’s consider your hypothetical soda brand. Say you want to collect data on how people
respond to several different branding options. You present respondents with five different
images of your branding options and ask them to rank the images in order of most preferred
to least preferred.

Paired comparison
Paired comparison involves pairwise comparison i.e., comparing entities in pairs to judge
which is preferable or has a certain level of some property. LL Thurstone first established
the scientific approach to using this approach for measurement.
The paired comparison method is particularly applicable when the jobs are significantly
different from one another and where a relative measurement promises to yield insight. It is
therefore useful for business situations which typically involve setting priorities in the
context of limited resources.
It is a method of comparing employee and job with another one on the basis of skill sets,
time required to execute tasks, knowledge etc.

Forced Ranking Concept

Forced ranking, also known as a vitality curve, is a controversial management tool which
measures, ranks and grades employees' work performance based on their comparison with
each other instead of against fixed standards.
Forced ranking process
In forced ranking process employees are divided into three into groups: A, B, or C.
• A group stands for the employees who are most engaged, motivated, passionate, open to
collaboration and committed. They make up the top 20%.
• B group stands for employees who are not as engaged or motivated but are crucial to the
company's success because they are so abundant. They make up the middle 70%.
• C group stands for employees who are commonly non-producing procrastinators. They
make up the bottom 10%.

Concept and Application:

This system can be used to identify top talent, to help managers identify employees who
need development, and to provide a framework for awarding bonuses and promotions

Secondary Data
 Secondary data is defined as research data that has previously been gathered and can be
accessed by researchers
 The common sources of the secondary data for social science include statements, the data
collected by government agencies, organisational documents, and the data that are
basically collected for other research objectives
 The main characteristic of secondary data is the sources were created by someone who
did not experience first-hand or participate in the events or conditions you're researching
 The World Wide Web (WWW), commonly known as the Web, is an information system
enabling documents and other web resources to be accessed over the Internet

Issues to be considered for secondary data

In secondary data analysis, the original data was not collected to answer the present research
question. Thus the data should be evaluated for certain criteria such as:
 The data will not be considered sufficient if the scope of the researcher is narrower or
wider than the secondary data that is collected
 It is necessary to use adequate data to avoid biases and prejudices leading to incorrect
conclusions
 Reliability refers to the extent to which the same answers can be obtained using the
same instruments more than one time
 Whether the data is consistent with data from other sources

Primary Data
Data that has been generated by the researcher himself/herself, surveys, interviews,
experiments, specially designed for understanding and solving the research problem at hand.

Advantages of Primary Data over Secondary Data

 More accurate
 Updated information
 More control over the data
 Privacy is maintained
 The targeted problem is dealt with
 Understanding of data is better

Disadvantages of Primary Data over Secondary Data

 Time-consuming process
 Costly
 Require more labour
 The questionnaire must be easy and understandable
 Feedback may be faulty
 An experienced person is needed for the analysis

Questionnaire vs Schedule
 The questionnaire is one of the methods used for data collection. The questionnaire will
have many questions, with each question having multiple choices.
 The schedule is also one of the methods of data collection. It will have a set of statements,
questions and space given to note down the answers.

Steps in designing a Questionnaire

 Decide the information required
 Define the target respondents
 Choose the method(s) of reaching your target respondents
 Decide on question content
 Develop the question wording
 Put questions into a meaningful order and format.
 Check the length of the questionnaire
 Pre-test the questionnaire
 Develop the final survey form

Questionnaire construction
Personal interviews : Personal interviews are one of the most used types of interviews,
where the questions are asked personally directly to the respondent
Telephonic survey: Telephone interview is a data collection method when the interviewer
communicates with the respondent on the telephone in accordance with the prepared
questionnaire
Email/Internet survey: The asynchronous email interview is a qualitative research method
where information is repeatedly exchanged online between researcher and participant within
a particular time- frame
Google forms: Google form is an application in the form of a template or worksheet that can
be used independently or together for the purpose of obtaining user information
Online survey sites:
 Jotform
 SurveyMonkey
 Typeform
 Google Forms
 Sogolytics (Formerly SoGoSurvey)
 Zoho Survey

UNIT 4

UNIVERSE OR POPULATION
The population or universe represents the entire group of units which is the focus of the
study. The entire aggregation of items from which samples can be drawn is known as a
population. In sampling, the population may refer to the units, from which the sample is
drawn. Population or populations of interest are interchangeable terms. The term "unit" is
used, as in a business research process, samples are not necessarily people all the time. A
population of interest may be the universe of nations or cities.

Concept of Statistical Population

In statistics, a population is a set of similar items or events which is of interest for some
question or experiment. A statistical population can be a group of existing objects (e.g. the set
of all stars within the Milky Way galaxy) or a hypothetical and potentially infinite group of
objects conceived as a generalization from experience (e.g. the set of all possible hands in a
game of poker). A common aim of statistical analysis is to produce information about some
chosen population.
Statistical populations are used to observe behaviours, trends, and patterns in the way
individuals in a defined group interact with the world around them, allowing statisticians to
draw conclusions about the characteristics of the subjects of study, although these subjects
are most often humans, animals, and plants, and even objects like stars.

Sample
A sample is a smaller set of data that a researcher chooses or selects from a larger population
using a pre-defined selection method. These elements are known as sample points, sampling
units, or observations.
Creating a sample is an efficient method of conducting research. It is often impossible, costly,
and time-consuming to research the whole population. Hence, examining the sample provides
insights that the researcher can apply to the entire population.

Characteristics of a Good Sample

(1) Goal-oriented: A sample design should be goal oriented. It is means and should be
oriented to the research objectives and fitted to the survey conditions.
(2) Accurate representative of the universe: A sample should be an accurate representative of
the universe from which it is taken. There are different methods for selecting a sample. It will
be truly representative only when it represents all types of units or groups in the total
population in fair proportions. In brief sample should be selected carefully as improper
sampling is a source of error in the survey.
(3) Proportional: A sample should be proportional. It should be large enough to represent the
universe properly. The sample size should be sufficiently large to provide statistical stability
or reliability. The sample size should give accuracy required for the purpose of particular
study.
(4) Random selection: A sample should be selected at random. This means that any item in
the group has a full and equal chance of being selected and included in the sample. This
makes the selected sample truly representative in character.
(5) Economical: A sample should be economical. The objectives of the survey should be
achieved with minimum cost and effort.
(6) Practical: A sample design should be practical. The sample design should be simple i.e. it
should be capable of being understood and followed in the fieldwork.
(7) Actual information provider: A sample should be designed so as to provide actual
information required for the study and also provide an adequate basis for the measurement of
its own reliability.

Sampling frame
A sampling frame refers to a list or a source that includes every individual from your entire
population of interest and should exclude anyone not part of the target population.
Sample frames should be systematically organised, so all the sampling units and information
can be easily found.
Ex: If you are investigating the consumption of energy drinks by student-athletes in your
school, your population of interest is all student-athletes at that school. What should your
sampling frame include?
Information such as names, contact information and sport played by every student-athlete
attending your school would be useful. No student-athlete should be omitted from the
sampling frame, and no non-athletes should be included.

Sampling Errors
 Population Specification Error – Happens when the analysts do not understand who to
survey. For example, for a survey of breakfast cereals, the population can be the mother,
children, or the entire family.
 Selection Error – Occurs when the respondents’ survey participation is self-selected,
implying only those who are interested respond. Selection errors can be reduced by
encouraging participation.
 Sample Frame Error – Occurs when a sample is selected from the wrong population data.
 Non-Response Error – Occurs when a useful response is not obtained from the surveys. It
may happen due to the inability to contact potential respondents or their refusal to
respond.

Non-Sampling Errors
 Non-response error
A non-response error is caused by the differences between the people who choose to
participate compared to the people who do not participate in a given survey. In other
words, it exists when people are given the option to participate but choose not to;
therefore, their survey results are not incorporated into the data.
 Measurement error
A measurement error refers to all errors relating to the measurement of each sampling
unit, as opposed to errors relating to how they were selected. The error often arises when
 there are confusing questions, low-quality data due to sampling fatigue (i.e., someone is
tired of taking a survey), and low-quality measurement tools.
 Interviewer error
Interviewer error occurs when the interviewer (or administrator) makes an error when
recording a response. In qualitative research, an interviewer may lead a respondent to
answer a certain way. In quantitative research, an interviewer may ask the question
differently, which leads to a different result.
 Adjustment error
An adjustment error describes a situation where the analysis of the data adjusts it so that it
is not entirely accurate. Forms of adjustment error include errors with weighting the data,
data cleaning, and imputation.
 Processing error
A processing error arises when there is a problem with processing the data that causes an
error of some kind. An example will be if the data were entered incorrectly or if the data
file is corrupt.

How to Reduce the Sampling Error for Accurate Results

Here are several methods to stave off the sampling error.
Increase the sample size: Doing so will yield a more accurate result, since the study would
be closer to the true population size. When increasing your sample size, make sure to keep
the quotas for each demographic selection and screening question to be commensurate.
Split the population into smaller groups: Use groups proportional to their existence in your
overall target market. For example, if 40% of your target market consists of a certain
demographic, ensure that you use 40% of this demographic in your survey study.
This can be achieved via market segmentation, which helps you understand the segments
making up your overall target market.
Use random sampling: This does not mean your sampling pool will be haphazard.
Instead, it requires using a more diverse, yet precise approach to gaining respondents for your
survey. For example, you can draw a random sampling of respondents, but still control who
can take part in the survey, based on their demographics and psychographic information,
along with screening questions that they need to respond to in a certain way to enter the
survey.
Keep tabs on your target market: To survive in business and perform accurate market
research, you ought to have a deep understanding of your target market.
You can accomplish this via continuous studies and segmentations.
Running survey campaigns can help you understand your customers and general target
population in totality.

Probability sampling methodologies with examples

Probability sampling is a method of deriving a sample where the objects are selected from a
population based on probability theory. This method includes everyone in the population, and
everyone has an equal chance of being selected. Hence, there is no bias whatsoever in this
type of sample.
Each person in the population can subsequently be a part of the research. The selection
criteria are decided at the outset of the market research study and form an important
component of research.
Probability sampling can be further classified into four distinct types of samples. They are:
Simple random sampling: The most straightforward way of selecting a sample is simple
random sampling. In this method, each member has an equal chance of being a part of the
study. The objects in this sample population are chosen randomly, and each member has the
same probability of being selected. For example, if a university dean would like to collect
feedback from students about their perception of the teachers and level of education, all 1000
students in the University could be a part of this sample. Any 100 students can be selected at
random to be a part of this sample.
Cluster sampling: Cluster sampling is a type of sampling method where the respondent
population is divided into equal clusters. Clusters are identified and included in a sample
based on defining demographic parameters such as age, location, sex, etc. This makes it
extremely easy for a survey creator to derive practical inferences from the feedback. For
example, if the FDA wants to collect data about adverse side effects from drugs, they can
divide the mainland US into distinctive cluster analysis, like states. Research studies are then
administered to respondents in these clusters. This type of generating a sample makes the
data collection in-depth and provides easy to consume and act upon, insights.
Systematic sampling: Systematic sampling is a sampling method where the researcher
chooses respondents at equal intervals from a population. The approach to select the sample
is to pick a starting point and then pick respondents at a pre-defined sample interval. For
example, while selecting 1,000 volunteers for the Olympics from an application list of 10,000
people, each applicant is given a count of 1 to 10,000. Then starting from 1 and selecting
each respondent with an interval of 10, a sample of 1,000 volunteers can be obtained.
Stratified random sampling: Stratified random sampling is a method of dividing the
respondent population into distinctive but pre-defined parameters in the research design
phase. In this method, the respondents don’t overlap but collectively represent the whole
population. For example, a researcher looking to analyze people from different
socioeconomic backgrounds can distinguish respondents into their annual salaries. This forms
smaller groups of people or samples, and then some objects from these samples can be used
for the research study.

Non-probability sampling methodologies with examples

The non-probability sampling method uses the researcher’s discretion to select a sample. This
type of sample is derived mostly from the researcher’s or statistician’s ability to get to this
sample.
This type of sampling is used for preliminary research where the primary objective is to
derive a hypothesis about the topic in research. Here each member does not have an equal
chance of being a part of the sample population, and those parameters are known only post-
selection to the sample.
We can classify non-probability sampling into four distinct types of samples. They are:
Convenience sampling: Convenience sampling, in easy terms, stands for the convenience of
a researcher accessing a respondent. Researchers have nearly no authority over selecting the
sample elements, and it’s purely done based on proximity and not representativeness.
This non-probability sampling method is used when there is time and costs limitations in
collecting feedback. For example, researchers that are conducting a mall-intercept survey to
understand the probability of using a fragrance from a perfume manufacturer. In this
sampling method, the sample respondents are chosen based on their proximity to the survey
desk and willingness to participate in the research.
Judgemental/purposive sampling: The judgemental or purposive sampling method is a
method of developing a sample purely on the basis and discretion of the researcher purely on
the basis of the nature of study along with his/her understanding of the target audience. This
sampling method selects people who only fit the research criteria and end objectives, and the
remaining are kept out.
For example, if the research topic is understanding what University a student prefers for
Masters, if the question asked is “Would you like to do your Masters?” anything other than a
response, “Yes” to this question, everyone else is excluded from this study.
Snowball sampling: Snowball sampling or chain-referral sampling is defined as a non-
probability sampling technique in which the samples have rare traits. This is a sampling
technique in which existing subjects provide referrals to recruit samples required for a
research study.
For example, while collecting feedback about a sensitive topic like AIDS, respondents aren’t
forthcoming with information. In this case, the researcher can recruit people with an
understanding or knowledge of such people and collect information from them or ask them to
collect information.
Quota sampling: Quota sampling is a method of collecting a sample where the researcher
has the liberty to select a sample based on their strata. The primary characteristic of this
method is that two people cannot exist under two different conditions. For example, when a
shoe manufacturer would like to understand from millennials their perception of the brand
with other parameters like comfort, pricing, etc. It selects only females who are millennials
for this study as the research objective is to collect feedback about women’s shoes.

How to determine a Sample Size

The right sample size is essential for the success of data collection in a market research study.
But is there a correct number for the sample size? What parameters decide the sample size?
What are the distribution methods of the survey?
It is first essential to understand four important variables that form the basic characteristics of
a sample. They are:
Population size: The population size is all the people that can be considered for the research
study. This number, in most cases, runs into huge amounts. For example, the population of
the United States is 327 million. But in market research, it is impossible to consider all of
them for the research study.
The margin of error (confidence interval): The margin of error is depicted by a percentage
that is a statistical inference about the confidence of what number of the population depicts
the actual views of the whole population. This percentage helps towards the statistical
analysis in selecting a sample and how much error in this would be acceptable. For example,
if your confidence interval is 6 and 60% percent of your sample picks an answer, you can be
confident that if you had asked the entire population, between 54% (60-6) and 66% (60+6)
would have picked that answer.
Confidence level: This metric measures where the actual mean falls within a confidence
interval. The most common confidence intervals are 90%, 95%, and 99%.
The larger your sample for a given confidence level, the smaller your confidence interval.
Standard deviation: In calculating the sample size, the standard deviation is useful in
estimating how much the responses you receive will vary from each other and from the mean
number, and the standard deviation of a sample can be used to approximate the standard
deviation of a population. For example, once you have already sent out your survey, how
much variance do you expect in your responses? That variation in responses is the standard
deviation.