CH 3

Chapter: Three
EXPLORATORY RESEARCH DESIGN
EXPLORATORY RESEARCH
Exploration is particularly useful when researchers lack a clear idea of the problems they will
meet during the study. Through exploration researchers develop concepts more clearly,
establish priorities, develop operational definitions, and improve the final research design.
Exploration serves other purposes as well. The area of investigation may be so new or so vague
that a researcher needs to do an exploration just to learn something about the dilemma facing
the manager. Important variables may not be known or thoroughly defined. Hypotheses for the
research may be needed. Also, the researcher may explore to be sure it is practical to do a
formal study in the area. More realistically, exploration may save both time and money and
should not be slighted.
The exploratory research strategy usually comprises one or more of the following:
• Discovery and analysis of secondary sources;
• Published studies (usually focused on the results of surveys or on case studies);
• Document analysis.
• Retrieval of information from organization’s database(s);
• Interviews with those knowledgeable about the problem or its possible solutions (called
expert interviews);
• Interviews with individuals involved with the problem (called individual depth
interviews , or IDIs);
• Group discussions with individuals involved with the problem or its possible solutions
(including informal groups, as well as focus groups or brainstorming).
Exploration of secondary sources may be useful at any stage of management-research

question. But most researchers find a review of secondary sources critical to moving from
management question to research question. In moving from management question to research
question, the researcher uses both internal and external secondary sources.
In exploratory research, the objective is to accomplish the following:

(1) To define and formulate the problem more precisely;
(2) To provide more knowledge to the researcher about the problem environment;
(3) To establish priorities for further research;
(4) To gain additional insights before an approach can be developed;
(5) To determine the nature of relationship between various factors associated in the observed
phenomenon;
(6) To gather information on the problems associated;
(7) To isolate key variables and relationships for further examination;
(8) To design an appropriate procedure to collection information for the given situation;
TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

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MEANING OF RESEARCH DESIGN
The formidable problem that follows the task of defining the research problem is the
preparation of the design of the research project, popularly known as the “research design”. A
research design is a master plan that specifies the methods and procedures for collecting and
analyzing the needed information. It provides a framework or plan of action for the research.
Selecting a design may be complicated by the availability of a large variety of methods,

techniques, procedures, protocols, and sampling plans. Decisions regarding what, where, when,
how much, by what means concerning an inquiry or a research study constitute a research
design. “A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure.” In fact, the research design is the conceptual structure within which research is
conducted; it constitutes the blueprint for the collection, measurement and analysis of data. As
such the design includes an outline of what the researcher will do from writing the hypothesis
and its operational implications to the final analysis of data. More explicitly, the design
decisions happen to be in respect of:
 What is the study about?
 Why is the study being made?
 Where will the study be carried out?
 What type of data is required?
 Where can the required data be found?
 What periods of time will the study include?
 What will be the sample design?
 What techniques of data collection will be used?
 How will the data be analyzed?
 In what style will the report be prepared?
For example, a researcher may decide on a secondary data study, case study, survey,
experiment, or simulation. If a survey is selected, should it be administered by mail, computer,
telephone, the Internet, or personal interview? Should all relevant data be collected at one
time or at regular intervals? What kind of structure will the questionnaire or interview guide
possess? What question wording should be employed? Should the responses be scaled or open-
ended? How will reliability and validity be achieved? Will characteristics of the interviewer
influence responses to the measurement questions? What kind of training should the data
collectors receive? Is a sample or a census to be taken? What types of sampling should be
considered? These questions represent only a few of the decisions that have to be made when
just one method is chosen.
In formulating a research design, the researcher has to balance the perspectives of decision-
makers and target respondents. From their education and experience, decision-makers may
have certain techniques that they believe to be the most effective and in which they
subsequently have more confidence. Thus, research design involves the researcher developing
an understanding of the type of data decision-makers have confidence in, plus an

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understanding of how respondents may respond to different techniques. The first part of this
balancing act involves understanding research design from the decision-makers’ perspective;
the second part involves understanding the respondents’ perspective.
SOURCES OF INFORMATION
As the research problem or topic has been explored, the researcher may consider many
different types of information sources, some much more valuable than others. Information
sources are generally categorized into three levels: (1) primary sources, (2) secondary sources,
and (3) tertiary sources.
Primary sources are original works of research or raw data without interpretation or
pronouncements that represent an official opinion or position. Included among the primary
sources are memos; letters; complete interviews or speeches (in audio, video, or written
transcript formats); laws; regulations; court decisions or standards; and most government data,
including census, economic, and labor data. Primary sources are always the most authoritative
because the information has not been filtered or interpreted by a second party. Other internal
sources of primary data are inventory records, personnel records, purchasing requisition forms,
statistical process control charts, and similar data.
Secondary sources are interpretations of primary data. Secondary data means data that are
already available i.e., they refer to the data which have already been collected and analyzed by
someone else. Encyclopedias, textbooks, handbooks, magazine and newspaper articles, and
most newscasts are considered secondary information sources. Indeed, nearly all reference
materials fall into this category. Internally, sales analysis summaries and investor annual reports
would be examples of secondary sources, because they are compiled from a variety of primary
sources. To an outsider, however, the annual report is viewed as a primary source, because it
represents the official position of the corporation. A firm searching for secondary sources can
search either internally or externally.
Tertiary sources may be interpretations of a secondary source but generally are represented by
indexes, bibliographies, and other finding aids (e.g., Internet search engines).
From the beginning, it is important to remember that all information is not of equal value. As
the source levels indicate, primary sources have more value than secondary sources, and
secondary sources have more value than tertiary sources.
COLLECTION OF PRIMARY DATA
Primary data is information collected directly from the first-hand experience and thus happen
to be original in character. This is the information that one gathers for the purpose of a
particular research project. It can be a long process but does provide important first-hand
information in many business cases.

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ADVANTAGES OF PRIMARY DATA
Resolve specific research issues
One advantage of primary data is that it is gathered first hand for specific goals and purpose,
cutting out possibility of wasting resources. Primary data collection procedure follows a careful
operationalization of variables. Consideration is given to what is being gathered in terms of
data so that they're about 'real life'. As such, performing research through primary data allows
researcher to address and resolve issues specific to its own business situation. The collected
information is the exact information that the researcher wants to know and he reports it in a
way that benefits the specific situation in an organization.
Better accuracy
Primary data is much more accurate because it is directly collected from a given population.
Moreover, the researcher collects the data and completes the study process without referring
to any second-hand sources that may not be appropriate for the research under consideration.
Higher level of control
The researcher can control easily the research design and method. In addition, s/he has a
higher level of control over how the information is gathered. Even, the researchers can change
the course of study whenever needed, and choose platforms for observation well-suited for
projects.
Up-to-date information
The primary market research is a great source of latest and up-to-date information as the
researcher collects it directly from the field in real time. Usually, secondary data is not so up-to-
date and recent.
The Researcher is the owner of the information

Information collected by the researcher is his/her own and is typically not shared with others.
Thus, the information can remain hidden from other current and potential competitors .
DISADVANTAGES OF PRIMARY DATA
More expensive
It could be very expensive to obtain primary data collection because the researcher or the
research team has to start from the beginning. It means they have to follow the whole study
procedure, organizing materials, process and etc.
Time consuming
It is a matter of a lot of time to conduct the research from the beginning to the end as it needs a
large enough sample to make the sample credible and be able to generalize . Often it is much longer in
comparison with the time needed to collect secondary data.
Can have a lot of limits
Primary data is limited to the specific time, place or number of participants and etc. To
compare, secondary data can come from a variety of sources to give more details.

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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.
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.
METHODS OF COLLECTING PRIMARY DATA
There are several methods of collecting primary data. Mostly used ones are:
(i) Observation method,
(ii) Interview method,
(iii) through questionnaires,
(iv) through schedules, and
(v) other methods include (a) warranty cards; (b) distributor audits; (c) pantry audits;
(d) Consumer panels; (e) depth interviews, and (f) content analysis.
We briefly take up each method separately.
i. Observation
The observation method is the most commonly used method in studies relating to behavioral
sciences. In a way we all observe things around us, but this sort of observation is not scientific
observation. Observation is a scientific tool and the method of data collection whereby the
information sought is gathered by way of investigator’s own direct observation without asking
from the respondent.
The main advantage of this method is that subjective bias is eliminated, if observation is done
accurately. Secondly, the information obtained under this method relates to what is currently
happening; it is not complicated by either the past behavior or future intentions or attitudes.
Thirdly, this method is independent of respondents’ willingness to respond and as such is
relatively less demanding of active cooperation on the part of respondents as happens to be
the case in the interview or the questionnaire method.
However, observation method has various limitations. Firstly, it is an expensive method.

Secondly, the information provided by this method is very limited. Thirdly, sometimes
unforeseen factors may interfere with the observational task. At times, the fact that some
people are rarely accessible to direct observation creates obstacle for this method to collect
data effectively.
The two types of observation examined are- Participant Observation and Structured
Observation. Participant observation is qualitative in nature and emphasizes on discovering the

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meanings that people attach to their actions. By contrast, structured observation is
quantitative and is more concerned with the frequency of those actions.
ii. Interview
The interview method of collecting data 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.
(a) 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. This sort of
interview may be in the form of direct personal investigation or it may be indirect oral
investigation. In the case of direct personal investigation the interviewer has to collect the
information personally from the sources concerned. He has to be on the spot and has to meet
people from whom data have to be collected. This method is particularly suitable for intensive
investigations. But in certain cases it may not be possible or worthwhile to contact directly the
persons concerned or on account of the extensive scope of enquiry. In such cases an indirect
oral interview can be conducted under which the interviewer has to cross-examine other
persons who are supposed to have knowledge about the problem under investigation and the
information. Most of the commissions and committees appointed by government to carry on
investigations make use of this method.
The method of collecting information through personal interviews is usually carried out in a
structured way. As such we call the interviews as structured interviews. Such interviews involve
the use of a set of predetermined questions and of highly standardized techniques of recording.
As against it, the unstructured interviews are characterized by a flexibility of approach to
questioning. Unstructured interviews do not follow a system of pre-determined questions and
standardized techniques of recording information. In a non-structured interview, the
interviewer is allowed much greater freedom to ask, in case of need, supplementary questions
or at times he may omit certain questions if the situation so requires. He may even change the
sequence of questions.
We may as well talk about focused interview, clinical interview and the non-directive interview.
Focused interview is meant to focus attention on the given experience of the respondent and its
effects. Under it the interviewer has the freedom to decide the manner and sequence in which
the questions would be asked and has also the freedom to explore reasons and motives. The
main task of the interviewer in case of a focused interview is to confine the respondent to a
discussion of issues with which he seeks conversance. Such interviews are used generally in the
development of hypotheses and constitute a major type of unstructured interviews. The clinical
interview is concerned with broad underlying feelings or motivations or with the course of
individual’s life experience. The method of eliciting information under it is generally left to the
interviewer’s discretion. In case of non-directive interview, the interviewer’s function is simply
to encourage the respondent to talk about the given topic with a bare minimum of direct
questioning. The interviewer often acts as a catalyst to a comprehensive expression of the

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respondents’ feelings and beliefs and of the frame of reference within which such feelings and
beliefs take on personal significance.
(b) 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:
 It is more flexible.
 It is faster than other methods i.e., a quick way of obtaining information.
 It is cheaper than personal interviewing method;
 Recall is easy; callbacks are simple and economical.
 There is a higher rate of response. Non-response rate is generally very low.
 Replies 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.
But this system of collecting information is not free from demerits. Some of these may be
highlighted.
 Little time is given to respondents for considered answers; interview period is not likely
to exceed five minutes in most cases.
 Surveys are restricted to respondents who have telephone facilities.
 Extensive geographical coverage may get restricted by cost considerations.
 It is not suitable for intensive surveys where comprehensive answers are required to
various questions.
 Possibility of the bias of the interviewer is relatively more.
 Questions have to be short and to the point;
 Probes are difficult to handle.
iii. Questionnaire
A questionnaire consists of a number of questions printed or typed in a definite order on a form
or set of forms. This method of data collection is quite popular, particularly in case of big
enquiries. It is being adopted by private individuals, research workers, private and public
organizations and even by governments. In this method a questionnaire is sent to the persons
concerned with a request to answer the questions and return the questionnaire. The
questionnaire is mailed to respondents who are expected to read and understand the questions
and write down the reply in the space meant for the purpose in the questionnaire itself. The
respondents have to answer the questions on their own.
The method of collecting data by mailing the questionnaires to respondents is most extensively
employed in various economic and business surveys. The merits of this method are as follows:

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• There is low cost even when the universe is large and is widely spread geographically.
• It is free from the bias of the interviewer; answers are in respondents’ own words.
• Respondents have adequate time to give well thought out answers.
• Respondents, who are not easily approachable, can also be reached conveniently.
• Large samples can be made use of and thus the results can be made more dependable
and reliable.
The main demerits of this system can also be listed here:
• Low rate of return of the duly filled in questionnaires; bias due to no-response is often
undetermined.
• It can be used only when respondents are educated and cooperating.
• The control over questionnaire may be lost once it is sent.
• There is inbuilt inflexibility because of the difficulty of amending the approach once
questionnaires have been dispatched.
• There is also the possibility of ambiguous replies or omission of replies altogether to
certain questions; interpretation of omissions is difficult.
• It is difficult to know whether willing respondents are truly representative.
• This method is likely to be the slowest of all.
iv. Schedules
This method of data collection is very much like the collection of data through questionnaire,
with little difference which lies in the fact that schedules (pro-forma containing a set of
questions) are being filled in by the enumerators who are specially appointed for the purpose.
These enumerators along with schedules, go to respondents, put to them the questions from
the pro-forma in the order the questions are listed and record the replies in the space meant
for the same in the pro-forma. In certain situations, schedules may be handed over to
respondents and enumerators may help them in recording their answers to various questions in
the said schedules. Enumerators explain the aims and objects of the investigation and also
remove the difficulties which any respondent may feel in understanding the implications of a
particular question or the definition or concept of difficult terms.
This method requires the selection of enumerators for filling up schedules or assisting
respondents to fill up schedules and as such enumerators should be very carefully selected. The
enumerators should be trained, intelligent and must possess the capacity of cross-examination
in order to find out the truth. Above all, they should be honest, sincere, hardworking and
should have patience and perseverance.
The important points of difference between a questionnaire and schedule are as follows:
• The questionnaire is generally sent through mail to informants. But, schedule is
generally filled out by the research worker or the enumerator, who can interpret
questions when necessary.
• To collect data through questionnaire is relatively cheap and economical since we
have to spend money only in preparing the questionnaire and in mailing the same to

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respondents. To collect data through schedules is relatively more expensive since
considerable amount of money has to be spent in appointing enumerators and in
importing training to them. Money is also spent in preparing schedules.
• In case of questionnaire, it is not always clear as to who replies, but in case of
schedule the identity of respondent is known.
• The questionnaire method is likely to be very slow since many respondents do not
return the questionnaire in time despite several reminders, but in case of schedules
the information is collected well in time as they are filled in by enumerators.
• Questionnaire method can be used only when respondents are literate and
cooperative, but in case of schedules the information can be gathered even when
the respondents happen to be illiterate.
• Risk of collecting incomplete and wrong information is relatively more under the
questionnaire method, particularly when people are unable to understand questions
properly. But in case of schedules, the information collected is generally complete
and accurate as enumerators can remove the difficulties.
v. Other Methods of Primary Data Collection

1. Warranty cards: Warranty cards are usually postal sized cards which are used by dealers of
consumer durables to collect information regarding their products. The information sought is
printed in the form of questions on the ‘warranty cards’ which is placed inside the package
along with the product with a request to the consumer to fill in the card and post it back to the
dealer.
2. Distributor or store audits: Distributor or store audits are performed by distributors as well
as manufactures through their salesmen at regular intervals. Distributors get the retail stores
audited through salesmen and use such information to estimate market size, market share,
seasonal purchasing pattern and so on. The data are obtained in such audits not by questioning
but by observation.
3. Pantry audits: Pantry audit technique is used to estimate consumption of the basket of
goods at the consumer level. In this type of audit, the investigator collects an inventory of
types, quantities and prices of commodities consumed. The usual objective in a pantry audit is
to find out what types of consumers buy certain products and certain brands, the assumption
being that the contents of the pantry accurately portray consumer’s preferences.
4. Consumer panels: An extension of the pantry audit approach on a regular basis is known as
‘consumer panel’, where a set of consumers are arranged to be interviewed repeatedly over a
period of time.
5. Use of mechanical devices: The use of mechanical devices has been widely made to collect
information by way of indirect means. Eye camera, Pupil metric camera, Psycho-galvanometer,
Motion picture camera and Audiometer are the principal devices so far developed and
commonly used by modern big business houses, mostly in the developed world for the purpose
of collecting the required information.

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6. Depth interviews: Depth interviews are those interviews that are designed to discover
underlying motives and desires and are often used in motivational research. Such interviews
are held to explore needs, desires and feelings of respondents. Depth interviews require great
skill on the part of the interviewer and at the same time involve considerable time.
7. Content-analysis: Content-analysis consists of analyzing the contents of documentary

materials such as books, magazines, newspapers and the contents of all other verbal materials
which can be either spoken or printed.
COLLECTION OF SECONDARY DATA
Research projects often begin with secondary data, which are gathered and recorded by
someone else prior to (and for purposes other than) the current project. Secondary data usually
are historical and already assembled. They require no access to respondents or subjects.
In addition, before collecting primary data, the researcher should locate and analyze relevant
secondary data. Thus, secondary data can be an essential component of a successful research
design. Secondary data can help in sample designs and in the details of primary research
methods. In some projects, research may be largely confined to the analysis of secondary data
because some routine problems may be addressed based only on secondary data. In addition,
given the huge explosion of secondary data sources available, sufficient data may be accessed
to solve a research problem.
ADVANTAGES AND USES OF SECONDARY DATA
Secondary data offer several advantages over primary data. The primary advantage of
secondary data is their availability. Obtaining secondary data is almost always faster and less
expensive than acquiring primary data. This is particularly true when researchers use electronic
retrieval to access data stored digitally instead of doing the fieldwork themselves. In many
situations, collecting secondary data is instantaneous.
Secondary data are essential in instances when data cannot be obtained using primary data
collection procedures. Secondary data are easily accessible. Some secondary data, such as
those provided by the National Censuses, are available on topics where it would not be feasible
for a firm to collect primary data. The major advantages of secondary data are:
1. Saves time: Secondary research saves time because it requires very little time to
collect the information which is already available in sources such as the internet and
other documents such as books.
2. It is cost effective: Secondary research is cost effective since it does not require a lot
of money to collect the data. There is no need to do research from scratch as the data
has already been collected and documented.

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3. The data is usually very extensive: Secondary research avails data that has already
been analyzed and comparison made which makes the data extensive and sufficient in
most cases.
4. It gives the basis of primary research: Secondary research avails data that can be used
to analyze and determine the basis of primary research hence helps give background
data of the research.
5. Easy to access: Data related to Secondary research is readily available hence easy to
access. It can be sourced directly from the internet at the comfort of the desktop or from
document such as text books.
6. May help in clarifying the research question: Secondary research has refined data
that may be used to clarify the research question. Through the data available, one can be
able to track back and determine what the research question was.
7. It gives insights into the primary research: Secondary research will also help in giving
a more comprehensive insight into what the primary research was all about.
8. It is easy to compare data: It is much easier to compare the data available in

secondary research because the data has already been refined and analyzed.
9. It is easy to mine data: Secondary research gives the researcher an opportunity to

mine data from different sources and therefore makes the data more available.
10. Secondary data is already refined: The data collected during the Secondary research
is data that has already been refined and analyzed. It is data that is ready to be used.
Furthermore, a researcher can use Secondary data to:
1. Diagnose the research problem

2. Develop an approach to the problem
3. Develop a sampling plan
4. Formulate an appropriate research design (for example, by identifying the key variables
to measure or understand)
5. Answer certain research questions and test some hypotheses
6. Interpret primary data with more insight
7. Validate qualitative research findings.
DISADVANTAGES OF SECONDARY DATA
Because secondary data have been collected for purposes other than the problem at hand,
their usefulness to the current problem may be limited in several important ways as follows:
1. Dissatisfactory: An inherent disadvantage of secondary data is that they were not

designed specifically to meet the researchers’ needs. Thus, researchers must ask how
satisfactory the data are to their particular project.

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2. Data inaccuracy: The data collected in a Secondary research can often be inaccurate
and not up to date which means that it may not always be relevant.
3. Time lag issues: There are issues of delay and stale data when dealing with secondary
data and it may not apply to the current situation.
4. It may not be specific: The data collection using Secondary research methods may not
be specific to the subject under study which means additional research needs to be
done.
5. The information may be incomplete: The data collected when conducting Secondary
research will not always be sufficient or complete.
6. Quality of the researcher: Secondary research requires that the primary researcher
should have been very qualitative and that the data available is of high quality and can
be used in a proper and relevant manner.
7. The data is not relevant: The objectives, nature and methods used to collect the
secondary data may not be relevant to the present situation.
8. The data may be inappropriate: The data available during Secondary research can
always be inappropriate and this makes the process of conducting Secondary research
irrelevant.
9. Lack of control over the quality of the data: It is difficult to control the quality of the
data available during Secondary research as opposed to primary research where you do
most of the work.
10. The data is biased: The data available in secondary research is often biased owing to
the fact that the primary researcher was trying to satisfy his/her own data needs.
To evaluate secondary data, researchers should ask a series of questions as follows:
• Is the subject matter consistent with the problem definition?

• Do the data apply to the population of interest?
• Do the data apply to the time period of interest?
• Do the secondary data appear in the correct units of measurement?
• Do the data cover the subject of interest in adequate detail?
• Is it possible to go to the original source of the data?
• Is the cost of data acquisition worth it?
• Is there a possibility of bias?
• Can the accuracy of data collection be verified?
Criteria Used for Evaluating Secondary Data

The quality of secondary data should be routinely evaluated, using the criteria presented in
Table 3.1 and discussion in the following sections.

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Table: 3.1
Specifications and research design

The specifications or the research design used to collect the data should be critically examined
to identify possible sources of bias. Such design considerations include size and nature of the
sample, response rate and quality, questionnaire design and administration, procedures used
for fieldwork, and data analysis and reporting procedures. These checks provide information on
the reliability and validity of the data and help determine whether they can be generalized to
the problem at hand. The reliability and validity can be further ascertained by an examination
of the error, currency, objectives, nature and dependability associated with the secondary data.
Error and accuracy
The researcher must determine whether the data are accurate enough for the purposes of the
present study. Secondary data can have a number of sources of error or inaccuracy, including
errors in the approach, research design, sampling, data collection, analysis, and reporting
stages of the project. Moreover, it is difficult to evaluate the accuracy of secondary data
because the researcher did not participate in the research. One approach is to find multiple
sources of data if possible, and compare them using standard statistical procedures.
Currency: when the data were collected
Secondary data may not be current and the time lag between data collection and publication
may be long, as is the case with much census data. Moreover, the data may not be updated

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frequently enough for the purpose of the problem at hand. Decision makers require current
data; therefore, the value of secondary data is diminished as they become dated.
Objective: the purpose for which the data were collected
Data are invariably collected with some objective in mind, and a fundamental question to ask is
why the data were collected in the first place. The objective for collecting data will ultimately
determine the purpose for which that information is relevant and useful. Data collected with a
specific objective in mind may not be appropriate in another situation. Even though there may
be identical questions used in both studies, the target respondents may be different, the
rationale for the study presented to respondents will be different, and ultimately the ‘state of
mind’ respondents may be in when they come to comparable questions will be different.
Nature: the content of the data

The nature, or content, of the data should be examined with special attention to the definition
of key variables, the units of measurement, the categories used and the relationships
examined. If the key variables have not been defined or are defined in a manner inconsistent
with the researcher’s definition, then the usefulness of the data is limited. Consider, for
example, secondary data on consumer preferences for TV programs. To use this information, it
is important to know how preference for programs was defined. Was it defined in terms of the
program watched most often, the one considered most needed, most enjoyable, most
informative, or the program of greatest service to the community?
Likewise, secondary data may be measured in units that may not be appropriate for the current
problem. For example, income may be measured by individual, family, household or spending
unit and could be gross or net after taxes and deductions.
Dependability: how dependable are the data?

An overall indication of the dependability of data may be obtained by examining the expertise,
credibility, reputation and trustworthiness of the source. This information can be obtained by
checking with others who have used the information provided by the source. Data published to
promote sales, to advance specific interests, or to carry on propaganda should be viewed with
suspicion. The same may be said of data published anonymously or in a form that attempts to
hide the details of the data collection research design and process. It is also pertinent to
examine whether the secondary data came from an original source, one that generated the
data, or an acquired source, one that procured the data from an original source. Generally,
secondary data should be secured from an original rather than an acquired source. There are at
least two reasons for this rule: first, an original source is the one that specifies the details of the
data collection research design, and second, an original source is likely to be more accurate and
complete than a surrogate source.
CLASSIFICATION OF SECONDARY DATA
Secondary data may be classified as either internal or external. Internal data are those
generated within the organization for which the research is being conducted. This information
may be available in a ready to-use format, such as information routinely supplied by the

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management decision support system. On the other hand, these data may exist within the
organization but may require considerable processing before they are useful to the researcher.
For example, a variety of information can be found on sales invoices. Yet this information may
not be easily accessed; further processing may be required to extract it. External data, on the
other hand, are those generated by sources outside the organization. These data may exist in
the form of published material, online databases, or information made available by syndicated
services. Externally generated secondary data may be more difficult to access, more expensive,
and more difficult to evaluate for its accuracy, in comparison with internal secondary data.
These factors mean that, before collecting external secondary data, it is useful to analyze
readily available internal secondary data.
Figure 3.1 presents a classification of secondary data.
SECONDARY DATA
INTERNAL EXTERNAL
Ready Published Materials

To use
Computerized
Requires further databases
processing
Syndicated services
A. Sources of Internal Data
Most organizations routinely gather, record, and store internal data to help them solve future
problems. An organization’s accounting system can usually provide a wealth of information.
Routine documents such as sales invoices allow external financial reporting, which in turn can
be a source of data for further analysis. If the data are properly coded into a modular database
in the accounting system, the researcher may be able to conduct more detailed analysis using
the decision support system. Sales information can be broken down by account or by product
and region; information related to orders received, back orders, and unfilled orders can be
identified; sales can be forecast on the basis of past data. Other useful sources of internal data
include salespeople’s call reports, customer complaints, service records, warranty card returns,
and other records.

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B. Sources of External Data
External data are generated or recorded by an entity other than the researcher’s organization.
The government, newspapers and journals, trade associations, and other organizations create
or produce information. Traditionally, this information has been in published form, perhaps
available from a public library, trade association, or government agency. Today, however,
computerized data archives and electronic data interchange make external data as accessible as
internal data.
i. Published External Secondary data: Sources of published external secondary data include
local authorities, regional and national governments, the EC, non-profit organizations (e.g.
Chambers of Commerce), trade associations and professional organizations, commercial
publishers, investment brokerage firms, and professional marketing research firms. In fact, such
a quantity of data is available that the researcher can be overwhelmed. Therefore, it is
important to classify published sources (see Figure 3.2).
Published Secondary Data
Government Sources General Business Sources
Census data Guides
Other Govt. data Directories
Indexes
Statistical data
Published external sources may be broadly classified as general business data or government
data. General business sources comprise guides, directories, indexes and statistical data.
Government sources may be broadly categorized as census data and other publications. These
data types are discussed further with specific sources used as examples.
Government Sources are widely available and easily accessed online, and can provide insights
related to product shipments, trade activity, business formation, patents, pricing and economic
trends, among other topics. However, data is often not presented explicitly for the subject
researchers are interested in, so it can take some manipulation and cross-checking of the data
to get it as narrowly focused as the researcher would like. Their publications may be divided
into census data and other publications.

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Census data. A census is the procedure of systematically acquiring and recording
information about the members of a given population. The term is used mostly in
connection with national population and housing, agriculture, business, and traffic
censuses. Most countries produce either catalogues or newsletters that describe the
array of census publications available and the plans for any forthcoming census. At
national level census information is used to plan the provision of health care, education,
employment, transport, etc. It is used to help determine where to build new schools,
roads, health care facilities, child-care and senior centre. The Census is also an
important economic tool.
Other government publications. In addition to the census, national statistical offices

collect and publish a great deal of statistical data regarding major industrial categories
such as agriculture, industrial production, financial and non-financial institutions, hotels,
restaurants, construction, retailing and tourism. More generally, demographic, health,
household income and expenditure, and labor statistical reports are also available. Data
classified under Family Spending provides a snapshot of household spending in the
country, explaining in detail how consumers spend their money. Economic Trends
provides monthly macroeconomic statistics of economic trends which include key data
such as national accounts, gross domestic product, disposable income, balance of
payments, trade in goods, prices, labor market information, industrial output, consumer
sales credit and interest rates etc.
General Business Sources: Businesses publish a lot of information in the form of books,
periodicals, journals, newspapers, magazines, reports and trade literature. This information can
be located by using guides, directories and indexes. Sources are also available to identify
statistical data. Moreover, Company websites can be virtual goldmines of information. Public
companies will have investor relations sections full of annual reports, regulatory findings and
investor presentations that can provide insights into both the individual company’s
performance and that of the industry at large. Public and private companies’ websites will
typically provide detail around product offerings, industries served, geographic presence,
organizational structure, sales methods (distribution or direct), customer relationships and
innovations.
Guides. Guides are an excellent source of standard or recurring information. A guide

may help identify other important sources of directories, trade associations and trade
publications.
Directories. a book or website listing individuals or organizations alphabetically or

thematically with details such as names, addresses, and telephone numbers. This source
provides current information on businesses and organizations operating in the country.
Indexes. It is possible to locate information on a particular topic in several different

publications by using an index. Indexes can increase the efficiency of the search process.
Several indexes are available for both academic and business sources.

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Non-government statistical data. Published statistical data are of great interest to
researchers. Graphic and statistical analyses can be performed on these data to draw
important insights. For example, Industry associations typically have websites full of
useful information — an overview of the industry and its history, a list of participating
companies, press releases about product and company news, technical resources, and
reports about industry trends. Trade publications, such as periodicals and news articles,
most of which make their content available online, are an excellent source of in-depth
product, industry and competitor data related to specific industries. Oftentimes, news
articles include insights obtained directly from executives at leading companies about
new technologies, industry trends and future plans.
ii. Computerized Databases

Most published information is also available in the form of computerized databases.
Computerized databases contain information that has been made available in computer
readable form for electronic distribution. From the 1980s through to today, the number of
databases, as well as the vendors providing these services, has grown enormously.
Computerized databases offer a number of advantages over printed data, including:
1. The data are current and up-to-date, as publishers and data compilers are now using
computers as the primary production technology.
2. The search process is more comprehensive, quicker and simpler. Moreover, this
information can be accessed instantaneously, and the search process is simplified as the
vendors provide uniform search protocols and commands for accessing the database.
3. The cost of accessing these is relatively low, because of the accuracy of searching for the
right data, and the speed of location and transfer of data.
4. It is convenient to access these data using a personal computer fitted with an
appropriate communication device, such as a modem or a communication network.
While computerized database information can be helpful, it is vast and can be confusing.
Thus a classification of computerized databases is helpful.
Computerized databases
Online Internet Offline
Bibliographic Numeric Full-text Directory Special Purpose

Databases Databases Databases Databases Databases
Computerized databases may be classified as online, Internet or offline as shown in the Figure.
Online databases consist of a central data bank that is accessed with a computer (or dumb

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terminal) via a telecommunications network. Internet databases can be accessed, searched and
analyzed on the Internet. It is also possible to download data from the Internet and store it in
the computer or an auxiliary storage device. Offline databases make the information available
on diskettes and CD-ROM disks. Thus, offline databases can be accessed at the user’s location
without the use of an external telecommunications network.
Online, Internet and offline databases may be further classified as bibliographic, numeric, full
text, directory or special-purpose databases.
Bibliographic databases composed of citations to articles in journals, magazines,

newspapers, marketing research studies, technical reports, government documents, and
the like. They often provide summaries or abstracts of the material cited.
Numeric databases contain numerical and statistical information that may be important
sources of secondary data. For example, some numeric databases provide time series
data about the economy and specific industries. The earlier examples of census-based
numeric databases using data over a series of censuses provide an example of a numeric
database
Full-text databases contain the complete text of secondary source documents
comprising the database.
Directory databases provide information on individuals, organizations and services.
Special-purpose databases contain information of a specific nature, e.g. data on a
specialized industry.
iii. Syndicated Sources of Secondary Data

Syndicated services are companies that collect and sell common pools of data designed to serve
information needs shared by a number of clients. These data are not collected with a focus on a
specific research problem, but the data and reports supplied to client companies can be
personalized to fit specific needs. For example, reports could be organized based on the clients’
sales territories or product lines. Using syndicated services is frequently less expensive than
commissioning tailored primary data collection.
Syndicated sources can be classified based on the unit of measurement (households and
consumers or institutions). Household and consumer data may be obtained from surveys, diary
panels or electronic scanner services. When institutions are the unit of measurement, the data
may be obtained from retailers, wholesalers or industrial firms.
An overview of the various syndicated sources used specially in marketing research is given in
the following table.
Type Characteristics Advantages Disadvantages Uses
Surveys Surveys conducted Most flexible way of Interviewer errors Market
at regular intervals obtaining data; respondent errors; segmentation,
information on advertising theme
underlying motives selection and
advertising
effectiveness

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Mail diary panels, Households Recorded purchase Lack of Forecasting sales,
provide specific behavior can be representativeness; market share and
information linked to the response bias; trends;
regularly over an demographic/ maturation establishing
consumer
extended period of psychographic
profiles, brand
time; respondents characteristics loyalty and
asked to record switching;
specific behavior as evaluating test
it occurs markets,
advertising
and distribution
Diary media Electronic devices Same as mail diary Same as mail diary Establishing
panels automatically panel panel advertising rates;
recording behavior, selecting media
supplemented by a program or air
diary time; establishing
viewer profiles
Scanner volume Household Data reflect actual Data may not be Price tracking,
purchases are purchases; timely representative; errors modeling
recorded through data, less expensive in recording effectiveness of
electronic scanners purchases; difficult to in-store
link purchases to
in supermarkets modeling
elements of
marketing mix
other than price
Scanner diary Scanner panels of Data reflect actual Data may not be Promotional mix
panels with cable households that purchases; sample representative; analyses, copy
TV subscribe to cable control; ability to link quality of data testing, new
TV panel data to limited product testing,
household positioning
characteristics
Audit services Verification of Relatively precise Coverage may be Measurement of
product movement information at retail incomplete; consumer sales
by examining and wholesale matching of data on and market share;
physical records or levels competitive activity competitive
activity; analyzing
performing may be difficult
distribution
inventory analysis patterns; tracking
of
new products
Industrial firms Data banks on Important source of Data are lacking in Determining
industrial information in terms of content, market potential
establishments industrial firms; quantity and quality by geographic
created through particularly useful area, defining
direct enquiries of sales territories,
in initial phases of
companies, clipping allocating
services and
the projects advertising
corporate reports. budget

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QUALITATIVE AND QUANTITATIVE RESEARCH
Managers basically do business research to understand how and why things happen. If the
manager needs to know only what happened, or how often things happened, quantitative
research methodologies would serve the purpose. But to understand the different meanings
that people place on their experiences often requires research techniques that delve more
deeply into people’s hidden interpretations, understandings, and motivations. Qualitative
research is designed to tell the researcher how (process) and why (meaning) things happen as
they do.
QUALITATIVE RESEARCH
Qualitative research includes an “array of interpretive techniques which seek to describe,

decode, translate, and otherwise come to terms with the meaning, not the frequency, of
certain more or less naturally occurring phenomena in the social world”. Qualitative research
addresses business objectives through techniques that allow the researcher to provide
elaborate interpretations of market phenomena without depending on numerical
measurement. Its focus is on discovering true inner meanings and new insights.
Qualitative research is very widely applied in practice. There are many research firms that
specialize in qualitative research. Qualitative research aims to achieve an in-depth
understanding of a situation, i.e. phenomena relating to or involving quality or kind. For
instance, when a researcher is interested in investigating the reasons for human behavior (i.e.,
why people think or do certain things) the research needs to be conducted should of qualitative
in nature. As such, qualitative research is especially important in the behavioral sciences where
the aim is to discover the underlying motives of human behavior. Through such research we
can analyze the various factors which motivate people to behave in a particular manner or
which make people like or dislike a particular thing.
Qualitative research draws data from a variety of sources, including the following:
• People (individuals or groups).

• Organizations or institutions.
• Texts (published, including virtual ones).
• Settings and environments (visual/sensory and virtual material).
• Objects, artifacts, media products (textual/visual/sensory and virtual material).
• Events and happenings (textual/visual/sensory and virtual material).
Uses of Qualitative Research

Qualitative research is ideal if a researcher wants to extract feelings, emotions, motivations,
perceptions, consumer “language,” or self-described behavior. Also, when the emphasis is on a
deeper understanding of motivations or on developing novel concepts, qualitative research is
very appropriate. The following list represents common situations that often call for qualitative
research:

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1. Qualitative research is useful to gain further insight and crystallize the research
problem when it is difficult to develop specific and actionable problem statements or
research objectives.
2. Qualitative research is also useful when the research objective is to develop an
understanding of some phenomena in great detail and in much depth.
3. Qualitative research tools are aimed at discovering the primary themes indicating
human motivations and the documentation of activities.
4. Qualitative research produces many product and process improvement ideas.
Especially, it is of great use when the research objective is to learn how a phenomenon
occurs in its natural setting or to learn how to express some concept in colloquial terms.
For example, how do consumers actually use a product? Or, exactly how does the
accounting department process invoices?
5. Qualitative research is useful when the researcher is studying a behavior that is
particularly context dependent—meaning the reasons something is liked or some
behavior is performed depends very much on the particular situation surrounding the
event.
6. Qualitative tools can yield unique insights, many of which may lead the organization
in new directions. When a fresh approach to studying some problem is needed
quantitative research yields a satisfying result.
The following exhibit offers some examples of appropriate uses of qualitative research in
business.
Decision Arena Questions to Be Answered
Job Analysis • Does the current assignment of tasks generate the most productivity?
• Does the advancement through different job levels incorporate the
necessary training to foster the strongest performance?
Advertising Concept • What images should we use to connect with our target customers’
Development motivations?
Productivity • What actions could we take to boost worker productivity without
Enhancement generating worker discontent?
New Product • What would our current market think of a proposed product idea?
Development • We need new products, but what should they be to take advantage of
our existing customer-perceived strengths?
• Which products will create the greatest synergy with our existing
products in terms of ROI and distribution partner growth?
Benefits • Should our compensation plan be more flexible and customizable?
Management •How do employees perceive wellness-prevention programs as
compared to corrective health programs in terms of value?

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Retail Design • How do consumers prefer to shop in our store? Do they shop with a
defined purpose, or are they affected by other motives?
Process • What steps are involved in cleaning a wood floor? How is our product
Understanding perceived or involved in this process?
Market Segmentation • Why does one demographic or lifestyle group use our product more
than another?
• Who are our customers and how do they use our product to support
their lifestyle?
• What is the influence of culture on product choice?
Union • How do various departments perceive the current effort to unionize
Representation our plant? Where and what are the elements of discontent?
Sales Analysis • Why have once-loyal customers stopped buying our service?
Common Techniques Used in Qualitative Research

Qualitative researchers apply a nearly endless number of techniques. The researcher chooses a
qualitative methodology based on the project’s purpose; its schedule, including the speed with
which insights are needed; its budget; the issue(s) or topics(s) being studied; the types of
participants needed; and the researcher’s skill, personality, and preferences.
We can classify the qualitative research techniques as either direct or indirect, based on
whether the true purpose of the project is known to the respondents. In Direct approach the
purposes of the project are disclosed to the respondent or otherwise obvious to them from the
questions asked. Focus groups and in-depth interviews are the major direct techniques. Even
though the purpose of the project is disclosed, the extent to which the purpose of the research
is revealed at the start of a focus group or in-depth group may vary.
In contrast, research that takes an indirect approach makes the purpose of the project totally
unrecognizable to the respondent. In an indirect approach, the researcher wants respondents
to behave as naturally as possible without any impediment of research purposes. In observation
or ethnographic techniques, consumers may be seen shopping, choosing products, using
products, interacting with other people and objects, hopefully in a natural environment and a
natural manner. The ‘respondent’ may not know that they are being observed, or if they do and
have agreed to be observed, may not really know why. The purpose of using projective
techniques is to discover underlying motivations, beliefs, attitudes or feelings regarding
consumer behavior. The techniques allow indirect questioning to allow respondents to discover
novel ways to think about and express their feelings, where direct questioning would fail.
The following figure presents a useful way to remember which qualitative techniques tend
towards directness and indirectness.

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Qualitative Research Techniques
Direct Indirect
Group Interview Depth Interview Observation Projective

Techniques Techniques
Focus Group Interview

A focus group interview is an unstructured, free-flowing interview with a small group of
people, usually between six and twelve. Focus groups are led by a trained moderator who
follows a flexible format encouraging dialogue among respondents. Common focus group topics
include employee programs, employee satisfaction, brand meanings, problems with products,
advertising themes, or new-product concepts. The main purpose of focus groups is to gain
insights by creating a forum where respondents feel sufficiently relaxed to reflect and to
portray their feelings and behavior, at their pace and using their language and logic.
The key characteristics of focus group interview are as follows:
Key benefit Group members ‘feed’ off each other and creatively reveal ideas that the
researcher may not have thought of or dared to tackle
Key drawback Group members may feel intimidated or shy and may not reveal anything
Group size 6 to 12
Group composition Homogeneous, respondents pre-screened
Physical setting Relaxed, informal atmosphere
Time duration 1.5 to 6 hours
Recording Use of audiocassettes, videotapes and notes from observations
Moderator Observational, interpersonal and communication skills
Advantages of focus groups

Focus groups offer several advantages over other data collection techniques. These may be
summarized by the 10 Ss:
1 Synergy: Putting a group of people together will produce a wider range of information, insight
and ideas than will individual responses secured privately.
2 Scrutiny: A focus group interview allows closer scrutiny in several ways. First, the session can
be observed by several people, as it is usually conducted in a room containing a two-way
mirror. The respondents and moderator are on one side, and an invited audience that may

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include both researchers and decision makers is on the other. Second, focus group sessions are
generally recorded on audio or videotape. Later, detailed examination of the recorded session
can offer additional insight and help clear up disagreements about what happened.
3 Stimulation: Usually after a brief introductory period, the respondents want to express their
ideas and expose their feelings as the general level of excitement over the topic increases in the
group.
4 Security: Because the respondents’ feelings may be similar to those of other group members,
they feel comfortable and are therefore willing to ‘open up’ and reveal thoughts where they
may have been reluctant if they were on their own.
5 Spontaneity: Because respondents are not required to answer specific questions, their
responses can be spontaneous and unconventional and should therefore provide an accurate
idea of their views.
6 Serendipity: Ideas are more likely to arise unexpectedly in a group than in an individual
interview. There may be issues that the moderator had not thought of. The dynamics of the
group can allow these issues to develop and be discussed. Group members, to great effect, may
clearly and forcibly ask questions that the moderator may be reluctant to ask.
7 Specialization: Because a number of respondents are involved simultaneously, the use of a
highly trained, but expensive, interviewer is justified.
8 Scientific scrutiny: The group discussion allows close scrutiny of the data collection process in
that observers can witness the session and it can be recorded for later analysis. Many
individuals can be involved in the validation and interpretation of the collected data.
9 Structure: The group discussion allows for flexibility in the topics covered and the depth with
which they are treated. The structure can match the logical structure of issues from the
respondents’ perspective as well as the language and expressions they are comfortable with.
10 Speed: Because a number of individuals are being interviewed at the same time, data
collection and analysis proceed relatively quickly.
Disadvantages of focus groups

The disadvantages of focus groups may be summarized by the five Ms:
1 Misjudgment: Focus group results can be more easily misjudged than the results of other data
collection techniques. As a qualitative technique, focus groups can evolve through a line of
questioning and probing. The specific direction of questioning and the ultimate interpretation
of findings can be susceptible to bias.
2 Moderation: As well as being great fun to moderate, focus groups can be difficult to
moderate. Much depends upon the ‘chemistry’ of the group in terms of how group members
get on with each other and draw ideas and explanations from each other. Even moderators
with many years of experience can get into difficulty with particular group members who
disrupt the discussion. The quality of the results depends upon how well the discussion is
managed and ultimately on the skills of the moderator.

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3 Messiness: The unstructured nature of the responses makes coding, analysis and
interpretation difficult in comparison with the structure of quantitative techniques. Focus
group data tend to be messy and need either strong theoretical support or the discipline of a
grounded theory approach to ensure that decision makers can rely upon the analyses and
interpretations.
4 Misrepresentation: Focus group results concentrate on distinct target groups, describing them
and contrasting them to other groups or types of respondent. Trying to generalize to much
wider groups, in the same manner as with a quantitative survey based on a representative
sample, can be very misleading.
5 Meeting: There are many problems in getting potential respondents to agree to take part in a
focus group discussion. Even when they have agreed to participate, there are problems in
getting focus group respondents together at the same time. Given the amount of travel and
tight schedules that many managers have, getting them together at the same time is very
difficult. With many managers reluctant to reveal their company’s behavior and plans in front
of other managers, one can see that the focus group may be very difficult to administer in
getting managers to meet up and discuss issues.
The Moderator
The moderator essentially runs the focus group and plays a critical role in its success. There are
several qualities that a good moderator must possess:
1. The moderator must be permissive, allowing the flow of discussion to develop as the group
sees fit. S/he should be someone who is really interested in people, who listens carefully to
what others have to say, and who can readily establish rapport, gain people’s confidence, and
make them feel relaxed and eager to talk.
2. The moderator must be a good listener. Without good listening skills, the moderator may
direct the group in an unproductive direction.
3. The moderator must try not to interject his or her own opinions. Good moderators usually
say less rather than more. They can stimulate productive discussion with generalized follow-ups
such as, “Tell us more about that incident,” or “How are your experiences similar or different
from the one you just heard?” The moderator must be particularly careful not to ask leading
questions such as “You are happy to work at Acme, aren’t you?”
4. The moderator must be able to control discussion without being overbearing. The
moderator’s role is also to focus the discussion on the areas of concern. When a topic is no
longer generating fresh ideas, the effective moderator changes the flow of discussion.
5. The moderator must encourage unresponsive members to participate.
6. The moderator must be sensitive enough to guide the group discussion at an intellectual as
well as emotional level. He or she must also be adjusted to mood changes and issues that fire
up enthusiastic responses or conversely cause the discussion to dry up.

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Depth Interviews
Like focus groups, depth interviews are an unstructured and direct way of obtaining
information but, unlike focus groups, depth interviews are conducted on a one-on-one basis. A
depth interview is an unstructured, direct, personal interview in which a single respondent is
probed by an experienced interviewer to uncover underlying motivations, beliefs, attitudes and
feelings on a topic. It is a one-on-one interview between a professional researcher and a
research respondent. Depth interviews are much the same as a psychological, clinical interview,
but with a different purpose. The researcher asks many questions and follows up each answer
with probes for additional elaboration. Like focus group moderators, the interviewer’s role is
critical in a depth interview. He or she must be a highly skilled individual who can encourage
the respondent to talk freely without influencing the direction of the conversation. Probing
questions are critical.
A depth interview may take from 30 minutes to over an hour. It may occur on a one-off basis or
it may unfold over a number of meetings between an interviewer and a respondent. Once the
interviewer has gained access to a potential respondent, the interviewer should begin by
explaining the purpose of the interview, showing what the respondent will get out of taking
part in the interview and explaining what the process will be like.
Depth interviews provide more insight into a particular individual than do focus groups. Depth
interviews are particularly advantageous when some unique or unusual behavior is being
studied. For instance, depth interviews have been usefully applied to reveal characteristics of
adolescent behavior, ranging from the ways they get what they want from their parents to
shopping, smoking, and shoplifting.
Laddering is a term used for a particular approach to probing, asking respondents to compare
differences between brands at different levels. What usually results is that the first distinctions
are attribute-level distinctions, the second are benefit-level distinctions, and the third are at the
value or motivation level. Probing is of critical importance in obtaining meaningful responses
and uncovering hidden issues. Probing can be done by asking general questions such as ‘Why
do you say that?’, ‘That’s interesting, can you tell me more?’ or ‘Would you like to add anything
else?’
Advantages of depth interviews
Depth interviews have the following advantages. They can:
1 Uncover greater depth of insights than focus groups. This can happen through concentrating
and developing an issue with the individual.
2 Attribute the responses directly to the respondent, unlike focus groups where it is often
difficult to determine which respondent made a particular response.
3 Result in a free exchange of information that may not be possible in focus groups because
there is no social pressure to conform to group response. This makes them ideally suited to
sensitive issues, especially commercially sensitive issues.

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4 Be easier to arrange than the focus group as there are not so many individuals to coordinate
and the interviewer can travel to the respondent.
Observation
Observation can be a very important qualitative tool. The participant-observer approach
typifies how observation can be used to explore various issues. Meaning is extracted from field
notes. Field notes are the researchers’ descriptions of what actually happens in the field. These
notes then become the text from which meaning is extracted.
Observation may also take place in visual form. Researchers may observe employees in their
workplace, consumers in their home, or try to gain knowledge from photographic records of
one type or another. Observation can either be very inexpensive, such as when a research
associate sits and simply observes behavior, or it can be very expensive, as in most participant-
observer studies. Observational research is keenly advantageous for gaining insight into things
that respondents cannot or will not verbalize.
Observation includes the full range of monitoring behavioral and non-behavioral activities and
conditions, which can be classified roughly as follows:
Non-behavioral Observation Behavioral Observation:

• Record analysis • Nonverbal analysis
• Physical condition analysis • Linguistic analysis
• Physical process analysis • Extra-linguistic analysis
• Spatial analysis
Non-behavioral Observation
A prevalent form of observation research is record analysis. This may involve historical or
current records and public or private records. They may be written, printed, sound-recorded,
photographed, or videotaped. Historical statistical data are often the only sources used for a
study. Analysis of current financial records and economic data also provides a major data
source for studies. Physical condition analysis is typified by store audits of merchandise
availability, studies of plant safety compliance, analysis of inventory conditions, and analysis of
financial statements. Process or activity analysis includes time/motion studies of
manufacturing processes and analysis of traffic flows in a distribution system, paperwork flows
in an office, and financial flows in the banking system.
Behavioral Observation
The observational study of persons can be classified into four major categories. Nonverbal
behavior is the most prevalent of these and includes body movement, motor expressions, and
even exchanged glances. At the level of gross body movement, one might study how a
salesperson travels a territory. At a fine level, one can study the body movements of a worker
assembling a product or time-sample the activity of a department’s workforce to discover the
share of time each worker spends in various ways. More abstractly, one can study body

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movement as an indicator of interest or boredom, anger or pleasure in a certain environment.
Motor expressions such as facial movements can be observed as a sign of emotional states.
Eye-blink rates are studied as indicators of interest in advertising messages. Exchanged glances
are of interest in studies of interpersonal behavior. The observational study of persons can be
classified into four major categories.
Linguistic behavior is a second frequently used form of behavior observation. One simple type
familiar to most students is the tally of “ahs” or other annoying sounds or words a professor
makes or uses during a class. More serious applications are the study of a sales presentation’s
content or the study of what, how, and how much information is conveyed in a training
situation.
Behavior also may be analyzed on an extra-linguistic level. Sometimes extra-linguistic behavior
is as important a means of communication as linguistic behavior. One author has suggested
there are four dimensions of extra-linguistic activity. They are (1) vocal, including pitch,
loudness, and timbre; (2) temporal, including the rate of speaking, duration of utterance, and
rhythm; (3) interaction, including the tendencies to interrupt, dominate, or inhibit; and (4)
verbal stylistic, including vocabulary and pronunciation peculiarities, dialect, and characteristic
expressions. These dimensions could add substantial insight to the linguistic content of the
interactions between supervisors and subordinates or salespeople and customers.
A fourth type of behavior study involves spatial relationships, especially how a person relates
physically to others. One form of this study, proxemics, concerns how people organize the
territory about them and how they maintain discrete distances between themselves and
others. A study of how salespeople physically approach customers and a study of the effects of
crowding in a workplace are examples of this type of observation.
Projective Techniques
A projective technique is an unstructured, indirect form of questioning that encourages
respondents to project their underlying motivations, beliefs, attitudes or feelings regarding the
issues of concern. In projective techniques, respondents are asked to interpret the behavior of
others rather than to describe their own behavior. In interpreting the behavior of others, it is
contended that respondents indirectly project their own motivations, beliefs, attitudes or
feelings into the situation. Thus, the respondent’s attitudes are uncovered by analyzing their
responses to scenarios that are deliberately unstructured, vague and ambiguous. The more
ambiguous the situation, the more respondents project their emotions, needs, motives,
attitudes and values, as demonstrated by work in clinical psychology on which projective
techniques are based. As in psychology, these techniques are classified as association,
completion, construction and expressive. Each of these classifications is discussed below.
Association techniques
In association techniques, an individual is presented with a stimulus and asked to
respond with the first thing that comes to mind. Word association is the best known of
these techniques. In word association, respondents are presented with a list of words
such as location, speed, error, quality, price etc one at a time, and are asked to respond

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to each with the first word that comes to mind. The words of interest, called test words,
are interspersed throughout the list, which also contains some neutral, or filler, words
to disguise the purpose of the study. The interviewer, not the respondent, records the
responses.
The underlying assumption of this technique is that association allows respondents to
reveal their inner feelings about the topic of interest. Responses are analyzed by
calculating:
1. The frequency with which any word is given as a response.
2. The amount of time that elapses before a response is given.
3. The number of respondents who do not respond at all to a test word within a
reasonable period.
Those who do not respond at all are judged to have an emotional involvement so high
that it blocks a response. It is often possible to classify the associations as favorable,
unfavorable or neutral. An individual’s pattern of responses and the details of the
response are used to determine the person’s underlying attitudes or feelings on the
topic of interest.
Completion techniques
In completion techniques, respondents are asked to complete an incomplete stimulus
situation. Common completion techniques in marketing research are sentence
completion and story completion.
Sentence completion is similar to word association. Respondents are given incomplete
sentences and are asked to complete them. Generally, they are asked to use the first
word or phrase that comes to mind. One advantage of sentence completion over word
association is that, respondents can be provided with a more directed stimulus.
Sentence completion may provide more information about the subjects’ feelings than
word association. Sentence completion is not as disguised as word association,
however, and many respondents may be able to guess the purpose of the study. A
variation of sentence completion is paragraph completion, in which the respondent
completes a paragraph beginning with the stimulus phrase. A further expanded version
of sentence completion and paragraph completion is story completion. In story
completion, respondents are given part of a story, enough to direct attention to a
particular topic but not to hint at the ending. They are required to give the conclusion in
their own words.
Construction techniques
Construction techniques are closely related to completion techniques. Construction
techniques require the respondents to construct a response in the form of a story,
dialogue or description. In a construction technique, the researcher provides less initial
structure to the respondents than in a completion technique. The two main
construction techniques are picture response techniques and cartoon tests.

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The roots of picture response techniques can be traced to the Thematic Apperception
Test (TAT), which consists of a series of pictures of ordinary as well as unusual events. In
some of these pictures, the persons or objects are clearly depicted, while in others they
are relatively vague. The respondent is asked to tell stories about these pictures. The
respondent’s interpretation of the pictures gives indications of that individual’s
personality. For example, an individual may be characterized as impulsive, creative,
unimaginative, and so on. The term Thematic Apperception Test is used because themes
are elicited based on the subject’s perceptual interpretation (apperception) of pictures.
In cartoon tests, cartoon characters are shown in a specific situation related to the
problem. Respondents are asked to indicate what one cartoon character might say in
response to the comments of another character. The responses indicate the
respondents’ feelings, beliefs and attitudes towards the situation. Cartoon tests are
simpler to administer and analyze than picture response techniques.
Expressive Techniques
In expressive techniques, respondents are presented with a verbal or visual situation
and asked to relate the feelings and attitudes of other people to the situation. The
respondents express not their own feelings or attitudes, but those of others. The two
main expressive techniques are role playing and third-person technique. In role playing,
respondents are asked to play the role or to assume the behavior of someone else. The
researcher assumes that the respondents will project their own feelings into the role. A
major use of role playing is in uncovering the nature of a brand personality. The
following example shows why the brand personality is of importance to the marketer
and how an understanding of personality may be used in advertising. In the third-
person technique, respondents are presented with a verbal or visual situation and are
asked to relate the beliefs and attitudes of a third person rather than directly expressing
personal beliefs and attitudes. This third person may be a friend, a neighbor, a
colleague, or any person that the researcher chooses. Again, the researcher assumes
that the respondents will reveal personal beliefs and attitudes while describing the
reactions of a third party. Asking an individual to respond in the third person reduces
the social pressure to give an acceptable answer.
Advantages of projective techniques

Projective techniques have a major advantage over the unstructured direct techniques (focus
groups and depth interviews): they may elicit responses that subjects would be unwilling or
unable to give if they knew the purpose of the study. At times, in direct questioning, the
respondent may intentionally or unintentionally misunderstand, misinterpret or mislead the
researcher. In these cases, projective techniques can increase the validity of responses by
disguising the purpose. This is particularly true when the issues to be addressed are personal,
sensitive or subject to strong social norms. Projective techniques are also helpful when
underlying motivations, beliefs and attitudes are operating at a subconscious level.

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Disadvantages of projective techniques
Projective techniques suffer from many of the disadvantages of unstructured direct techniques,
but to a greater extent. These techniques generally require personal interviews with individuals
who are experienced interviewers and interpreters; hence they tend to be expensive.
Furthermore, as in all qualitative techniques, there is the risk of interpretation bias. With the
exception of word association, all are open-ended techniques, making the analysis and
interpretation more problematic.
Some projective techniques such as role playing require respondents to engage in what may
seem to be unusual behavior. Certain respondents may not have the self-confidence or the
ability to fully express themselves with these techniques. In role playing, for example, the skills
of acting may make one respondent more articulate at expressing their feelings compared with
others. The same may be said of techniques where pictures and cartoons are put together and
interpreted, in that distinctive skills may make certain respondents more adept and
comfortable in expressing themselves. To counter this, one could argue that there is a great
amount of skill required in expressing oneself in an open-ended depth interview. One could
point to fiction writers or poets who are able to encapsulate particular feelings most clearly and
succinctly, which again is enormously skilful.
With such skill requirements, the disadvantage of the technique lies in the nature of the
respondents who agree to participate, and how characteristic they are of distinct target
markets.
QUANTITATIVE RESEARCH
Managers basically do business research to understand how and why things happen. If the
manager needs to know only what happened, or how often things happened, quantitative
research methodologies would serve the purpose. Quantitative research is the systematic
empirical investigation of observable phenomena via statistical, mathematical, or
computational techniques. The objective of quantitative research is to develop and employ
mathematical models, theories, and hypotheses pertaining to 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.
Quantitative data is any data that is in numerical form. It can range from simple counts such as
the frequency of occurrences to more complex data such as test scores, prices or rental costs.
To be useful these data need to be analyzed and interpreted. The researcher analyses the data
with the help of quantitative techniques by establishing statistical relationships between
variables to get an unbiased result that can be generalized to some larger population.
Until the advent of powerful personal computers, data were analyzed either by hand or by
using mainframe computers. The former of these was extremely time consuming and prone to
error, the latter expensive. Fortunately, the by-hand or calculator ‘number-crunching’ and
‘charting’ elements of quantitative analysis have been incorporated into relatively inexpensive

Page 32 of 35
personal-computer-based analysis software. These range from spreadsheets such as Excel to
more advanced data management and statistical analysis software packages such as Minitab,
SAS, SPSS for Windows, Stata, Smart PLS, EViews, Statview etc.
Advantages of Quantitative Research

Collect reliable and accurate data: As data is collected, analyzed and presented in numbers, the
results obtained will be extremely reliable. Numbers do not lie. They present an honest picture
of the conducted research without discrepancies and is also extremely accurate. In situations
where a researcher predicts conflict, quantitative research is conducted.
Quick data collection: A quantitative research is carried out with a group of respondents who
represent a population. A survey or any other quantitative research method applied to these
respondents and the involvement of statistics, conducting and analyzing results is quite
straightforward and less time-consuming.
Wider scope of data analysis: Due to the statistics, this research method provides a wide scope
of data collection.
Eliminate bias: This research method offers no scope for personal comments or biasing of
results. The results achieved are numerical and are thus, fair in most cases.
Disadvantages of Quantitative Research

1. Quantitative research is difficult, expensive and requires a lot of time to be perform the
analysis. A large proportion of respondents is appropriate for the representation of the
target population. So, as to achieve in-depth responses on an issue, data collection in
quantitative research methodology is often too expensive as against qualitative
approach.
2. Requires constant (or periodic) monitoring of model performance to ensure continued
compliance with original hypotheses, which is time consuming.
3. Inadequate quality of data used in model construction can lead to erroneous or even
disastrous model performance on unseen data.
4. Requires a deep background in multiple complex disciplines that are hard to master for
the average person - hence limited supply of Quants (which is a good thing actually).
5. Quantitative research methodology usually requires a large sample size. However due to
the lack of resources this large-scale research becomes impossible. In many developing
countries, interested parties (e.g., government or non-government organizations, public
service providers, educational institutions, etc.) may lack knowledge and especially the
resources needed to conduct a thorough quantitative research.
6. Quantitative research method involves structured questionnaire with close ended
questions. It leads to limited outcomes outlined in the research proposal. So the results
cannot always represent the actual occurring, in a generalized form. Also, the

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respondents have limited options of responses, based on the selection made by the
researcher.
7. Quantitative study requires extensive statistical analysis, which can be difficult to
perform for researchers from non- statistical backgrounds. Statistical analysis is based
on scientific discipline and hence difficult for non-mathematicians to perform.
8. Quantitative research is a lot more complex for social sciences, education, anthropology
and psychology. Effective response should depend on the research problem rather than
just a simple yes or no response.
9. Quantitative research method involves structured questionnaire with close ended
questions. It leads to limited outcomes outlined in the research proposal. So the results
cannot always represent the actual occurring, in a generalized form. Also, the
respondents have limited options of responses, based on the selection made by the
researcher.
10. Improper representation of the target population might hinder the researcher for
achieving its desired aims and objectives. Despite of applying appropriate sampling plan
representation of the subjects is dependent on the probability distribution of observed
data. This may led to miscalculation of probability distribution and lead to falsity in
proposition.
Qualitative versus Quantitative Research
Qualitative Research Quantitative Research

Focus of Research • Understand and interpret • Describe, explain, and predict
Researcher • High—researcher is participant or • Limited; controlled to prevent bias
Involvement catalyst
Research Purpose •In-depth understanding; theory • Describe or predict; build and test theory
building
Sample Design • Non-probability; purposive • Probability

Sample Size • Small • Large
Research Design • May evolve or adjust during the • Determined before commencing the
course of the project project
• Often uses multiple methods • Uses single method or mixed methods
simultaneously or sequentially • Consistency is critical
• Consistency is not expected • Involves either a cross-sectional or a
• Involves longitudinal approach longitudinal approach
Participant • Pre-tasking is common • No preparation desired to avoid biasing

Preparation the participant

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Data Type and • Verbal or pictorial descriptions • Verbal descriptions
Preparation • Reduced to verbal codes (sometimes • Reduced to numerical codes for
with computer assistance) computerized analysis
Data Analysis • Human analysis following computer • Computerized analysis—statistical and

or human coding; primarily non- mathematical methods dominate
quantitative • Analysis may be ongoing during the
• Forces researcher to see the project
contextual framework of the • Maintains clear distinction between facts
phenomenon being measured— and judgments
distinction between facts and
judgments less clear
• Always ongoing during the project
Insights and • Deeper level of understanding is • Limited by the opportunity to probe
Meaning the norm; determined by type and respondents and the quality of the original
quantity of free-response questions data collection instrument
• Researcher participation in data • Insights follow data collection and data
collection allows insights to form and entry, with limited ability to re-interview
be tested during the process participants
Research Sponsor • May participate by observing • Rarely has either direct or indirect
Involvement research in real time or via taped contact with participant
interviews
Feedback • Smaller sample sizes make data • Larger sample sizes lengthen data
Turnaround collection faster for shorter possible collection; Internet methodologies are
turnaround shortening turnaround but inappropriate
• Insights are developed as the for many studies
research progresses, shortening data • Insight development follows data
analysis collection and entry, lengthening research
process; interviewing software permits
some tallying of responses as data
collection progresses
Data Security • More absolute given use of • Act of research in progress is often
restricted access known by competitors; insights may be
facilities and smaller sample sizes gleaned by competitors for some visible,
field-based studies
N.B: this lecture sheet has been prepared by using the following books:
1. Malhotra, N. K., Birks, D. F., & Wills, P. (2012). Marketing research: An applied approach. Harlow,
England: Pearson.
2. Cooper, D. R., & Schindler, P. S. (2014). Business research methods. Boston: Irwin/McGraw-Hill.
3. Zikmund G.W., B. J. (2013). Business Research Method A South Asian Perspective (8th ed.) Delhi:
Cengage Learning India Pvt. Ltd.
4. Saunders, M., Lewis, P., & Thornhill, A. (2012). Research methods for business students. Harlow:
Financial Times Prentice Hall.

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Chapter: Three

EXPLORATORY RESEARCH DESIGN

Exploration of secondary sources may be useful at any stage of management-research

In exploratory research, the objective is to accomplish the following:

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

Selecting a design may be complicated by the availability of a large variety of methods,

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

COLLECTION OF PRIMARY DATA

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

The Researcher is the owner of the information

DISADVANTAGES OF PRIMARY DATA

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

METHODS OF COLLECTING PRIMARY DATA

We briefly take up each method separately.

However, observation method has various limitations. Firstly, it is an expensive method.

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

(b) Telephone interviews: This method of collecting information consists in contacting

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

v. Other Methods of Primary Data Collection

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

7. Content-analysis: Content-analysis consists of analyzing the contents of documentary

COLLECTION OF SECONDARY DATA

ADVANTAGES AND USES OF SECONDARY DATA

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

8. It is easy to compare data: It is much easier to compare the data available in

9. It is easy to mine data: Secondary research gives the researcher an opportunity to

Furthermore, a researcher can use Secondary data to:

1. Diagnose the research problem

DISADVANTAGES OF SECONDARY DATA

1. Dissatisfactory: An inherent disadvantage of secondary data is that they were not

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

To evaluate secondary data, researchers should ask a series of questions as follows:

• Is the subject matter consistent with the problem definition?

Criteria Used for Evaluating Secondary Data

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

Specifications and research design

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

Nature: the content of the data

Dependability: how dependable are the data?

CLASSIFICATION OF SECONDARY DATA

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

Figure 3.1 presents a classification of secondary data.

Ready Published Materials

A. Sources of Internal Data

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

Published Secondary Data

Government Sources General Business Sources

Census data Guides

Other Govt. data Directories

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

Other government publications. In addition to the census, national statistical offices

Guides. Guides are an excellent source of standard or recurring information. A guide

Directories. a book or website listing individuals or organizations alphabetically or

Indexes. It is possible to locate information on a particular topic in several different

TASNIM UDDIN CHOWDHURY, Assistant Professor, Department of Finance, FBS, PU

ii. Computerized Databases

Online Internet Offline