Research Hypothesis

• Hypothesis is considered as an intelligent guess or

prediction, that gives direction to the researcher
to answer the research question.

• Hypothesis or Hypotheses are defined as the

formal statement of the tentative or expected
prediction or explanation of the relationship
between two or more variables in a specified
population.
• A hypothesis is a formal tentative statement of the
expected relationship between two or more
variables under study.

• A hypothesis helps to translate the research

problem and objective into a clear explanation or
prediction of the expected results or outcomes of
the study.
• Hypothesis is derived from the research problems,
literature review and conceptual framework.

• Hypothesis in a research project logically follow

literature review and conceptual framework.
Hypothesis makes the
following
contributions in
research study
Cont…

• It provides clarity to the research problem and

research objectives

• It describes, explains or predicts the expected

results or outcome of the research.

• It indicates the type of research design.

• It directs the research study process.

Cont…

• It identifies the population of the research study

that is to be investigated or examined.

• It facilitates data collection, data analysis and

data interpretation
 Type of
Hypothes
is
 Hypothesis

Research Null Testable

Hypothesis Hypothesis Hypothesis
 Associative
Hypothesis

Causal
Hypothesis

Non – Directional
Hypothesis
Research
Hypothesis
Directional
Hypothesis

Complex
Hypothesis

Simple
Hypothesis
 Simple
Hypothesis

Complex
Hypothesis
Null
Hypothesis
Casual
Hypothesis

Associative
Null
Hypothesis
 Testable
Hypothesis
Research Hypothesis
 Simple Hypothesis
• Simple hypothesis predicts that, there
exist a relationship between the
independent variable and dependent
variable.
Cont…simple hypothesis

• Example- Students who receive counseling will

show a greater increase in creativity
– In the above example counseling is independent
variable and creativity is dependent variable. The
statement shows that there exists a relationship between
counseling and creativity.
 Complex Hypothesis
• complex hypothesis predicts that
there exists relationship between two
or more independent and dependent
variable.
Cont…Complex Hypothesis

• Example –The higher ration of unemployment

poverty, illiteracy leads to crimes like dacoit,
Robbery, Rape, & killing etc. The higher ration of
unemployment poverty, illiteracy leads to crimes
like dacoit, Robbery, Rape, prostitution & killing
etc
– In the above example, three independent variable
are:- A) Unemployment B) Poverty C) Illiteracy
– And three dependent variable are:- a) Dacoit
B) Robbery C) Killing
 Directional Hypothesis
• Directional Hypothesis predicts the direction of
the relationship between the independent and
dependent variable.

• Example- High quality of management

education will lead to high quality of
management practice skills.
 Non directional Hypothesis
• Non -directional Hypothesis predicts the
relationship between the independent variable and
the dependent variable but does not specific the
directional of the relationship.

• Example- Teacher student relationship influence

student’s learning.
 Causal Hypothesis
• Causal Hypothesis predicts a cause and effects
relationship or interaction between the
independent variable and dependent variable.
This hypothesis predicts the effect of the
independent variable on the dependent
variable.
Cont…

• In this the independent variable is the experimental

or treatment variable. The dependent variable is the
outcome variable

• Example – Early problem identification can

resolve major problems
Associative hypothesis
• Associative Hypothesis predicts an associative
relationship between the independent variable
and the dependent variable.
• When there is a change in any one of the
variables, changes also occurs in the other
variable.
Cont…

• The associative relationship between the

independent and dependent variables may have
either.

– Positive association

– Negative association
Null hypothesis
 Cont…

• Null Hypothesis is also called statistical

hypothesis because this type of hypothesis is used
for statistical testing and statically interpretation.
The null hypothesis predicts that, there is no
relationship between the independent variable and
dependent variable.
• Example- There is no significance
association between salary and
satisfaction among employees
 Testable Hypothesis
• The testable hypothesis predicts relationship
between the independent variable and the
dependent variable and theses variable are
testable or measurable.
Cont…

• Example – Increase in temperature

causes increase in sale of soft drinks
 CHARACTERISTICS OF GOOD
HYPOTHESIS
Hypothesis Should be clear and precise
Hypothesis should be capable of being tested
Hypothesis should share the relationship between
variables
Hypothesis should be limited in scope and must be
specific
Hypothesis should be stated in simple terms
Hypothesis should be consistent with most known facts
Hypothesis should be amenable to testing within a
reasonable time
Hypothesis must explain the facts that gave rise to the
need for explanation
 HYPOTHESIS - Formulation

• Contain conceptual
clarity
A well • Avoid subjective
formulated referents
HYPOTHESIS • Be specific and precise
should
• Relate to a body of
knowledge
• Relate to the Research
question
 FORMULATING HYPOTHESIS - Difficulties

• Phrasing the
3 hypothesis properly
• Absence of a
Main
conceptual or
difficulties in theoretical framework
formulating
• Not using that
HYPOTHESIS theoretical framework
logically
Steps for Hypothesis Testing
Formulate H0 and H1

Select Appropriate Test

Choose Level of Significance

Calculate Test Statistic TSCAL

Determine Prob Determine Critical

Assoc with Test Stat Value of Test Stat
TSCR
Determine if TSCR
Compare with Level falls into (Non)
of Significance,  Rejection Region

Reject/Do not Reject H0

Draw Marketing Research Conclusion

 Hypothesis Testing for Differences
Hypothesis Tests

Parametric Tests Non-parametric Tests

(Metric) (Nonmetric)

One Sample Two or More

* t test Samples
* Z test
Independent
Samples
* Two-Group t * Paired
test t test
* Z test
Type I Error & Type II Error
A Type I error is the mistake of rejecting the null
hypothesis when it is true.
α- Type I error.

A Type II error is the mistake of failing to reject

the null hypothesis when it is false.
β- Type II error.
Type I Error & Type II Error
Probability of Type I error is determined in advance.

Level of significance of testing the hypothesis.

Type I Error & Type II Error

Accept H0 Reject H0

Correct Decision Type I Error

Ho (True)

Ho (False) Type II Error Correct Decision

Type I Error & Type II Error
Suppose there is a test for a particular disease.
•If the disease really exists and is diagnosed early, it can be
successfully treated
•If it is not diagnosed and treated, the person will become
severely disabled
•If a person is erroneously diagnosed as having the disease
and treated, no physical damage is done
Type I Error & Type IIError
Decision No disease Disease
Not diagnosed OK Type I error

Diagnosed Type II error OK

treated but not harmed irreparable damage

by the treatment would be done
Steps Leading to the Formulation of a Research Design

Define the Marketing Research Problem

Develop an Approach to the Problem

Formulate the Research Design

39
 Research Design: Definition

• A research design is a framework or

blueprint for conducting the marketing
research project. It details the procedures
necessary for obtaining the information
needed to structure or solve marketing
research problems.

40
 Research Design: Some Observations

• The overall research design for a

project may include one or more of
these three designs as part(s) of it.

• Further, if more than one design is to be

used, typically we progress from
Exploratory toward Causal.

41
 Figure A Classification of Market Research Designs

Research Design

Exploratory Research
Design Conclusive Research
Design

Descriptive Causal Research

Research

Cross-Sectional Longitudinal
Design Design
42
 Table 3.1
Differences Between Exploratory and Conclusive Research
Exploratory Conclusive
Objective: To provide insights To test specific
and understanding. hypotheses and
examine relationships.

Characteristics: Information needed Information needed

is defined only loosely. is clearly defined.

Research process Research process

is flexible and is formal and structured.
unstructured.

Sample is small and Sample is large and

nonrepresentative representative.

Data analysis is Data analysis is

qualitative. quantitative.
43
 Table 3.1 (Cont.)
Differences Between Exploratory and Conclusive Research
Exploratory Conclusive
Findings: Tentative. Conclusive.

Outcome: Generally followed by Findings used as input

further exploratory or into decision making.
conclusive research.

44
 Table 3.2
A Comparison of Basic Research Designs
Exploratory Descriptive Causal
Objective: Discovery of Describe market Determine
ideas and characteristics cause and effect
insights. or functions. relationships.

Character- Flexible. Marked by the Manipulation of

istics: prior formulation one or more
Versatile. of specific independent
hypotheses. variables.
Often the
front end of Preplanned and Control of other
total research structured mediating
design. design. variables.

45
 Table 3.2 (Cont.)
A Comparison of Basic Research Designs
Exploratory Descriptive Causal
Method: Expert surveys. Secondary data Experiments.
(quantitative).
Pilot surveys.
Surveys.
Case
studies. Panels.

Secondary data Observational

(qualitative). and other data.

Qualitative
Research.

46
 Uses of Exploratory Research

• Formulate a problem or define a problem more

precisely
• Identify alternative courses of action
• Develop hypotheses
• Isolate key variables and relationships for further
examination
• Gain insights for developing an approach to the
problem
• Establish priorities for further research
47
Methods of Exploratory Research
• Survey of experts

• Pilot surveys

• Secondary data analyzed in a qualitative way

• Qualitative research

48
“If you wish to know the road up the
mountain, you must ask the man who
goes back and forth on it.”
-- Zenrinkusi
 Use of Descriptive Research
• To describe the characteristics of relevant
groups, such as consumers, salespeople,
organizations, or market areas
• To estimate the percentage of units in a specified
population exhibiting a certain behavior
• To determine the perceptions of product
characteristics
• To determine the degree to which marketing
variables are associated
• To make specific predictions

50
Descriptive Research Example
Weight Watchers average customer
• Woman about 40 years old
• Household income of about $50,000
• At least some college education
• Trying to juggle children and a job

5
Are customers born
equal?

• Bestbuy focuses on catering to high profit customers

– sometimes by firing customers that costs it money.
• “Devils” are customers who “buy products, apply for
rebates, return the purchases, then buy them back at
returned-merchandise discounts”.
• Analysis also revealed highly profitable customer
segments, such as upper income men, suburban
women and technology lovers.
• Bestbuy are also motivated to renovate many of its
business practices
Methods of Descriptive Research

• Secondary data analyzed in a quantitative as

opposed to a qualitative
• Surveys
• Panels
• Observational and other data

54
 Cross-sectional and
Longitudinal Designs
• A cross-sectional design involves the collection
of information from any given sample of
population elements only once.

• In a longitudinal design, a fixed sample (or

samples) of population elements is measured
repeatedly on the same variables.

• A longitudinal design differs from a cross-

sectional design in that the sample or samples
remain the same over time.

55
 Figure 3.6. Cross-Sectional vs. Longitudinal Designs

Cross- Sample
Sectional Surveyed at
Design
T1

Same Sample
Longitudinal Sample
also Surveyed
Design Surveyed at
at T2
T1

Time T1 T2

56
 Table 3.3
Relative Advantages and Disadvantages of Longitudinal and
Cross-Sectional Designs

Evaluation Criteria Cross-Sectional Longitudinal

Design Design
- +
Detecting change

- +
Large amount of data collection

Accuracy - +

+ -
Representative sampling

+ -
Response bias

Note: A + indicates a relative advantage over the other design whereas

a - indicates a relative disadvantage.
57
 Cross-sectional Designs
• Involve the collection of information from any given
sample of population elements only once.
• In single cross-sectional designs, there is only one
sample of respondents and information is obtained
from this sample only once.
• In multiple cross-sectional designs, there are two
or more samples of respondents, and information
from each sample is obtained only once. Often,
information from different samples is obtained at
different times.
• Cohort analysis consists of a series of surveys
conducted at appropriate time intervals, where the
cohort serves as the basic unit of analysis. A cohort
is a group of respondents who experience the same
event within the same time interval.
58
 Consumption of Various Soft Drinks
by Various Age Cohorts
Percentage consuming on a typical day

Age 1950 1960 1969 1979

8-19 52.9 62.6 73.2 81.0

20-29 45.2 60.7 76.0 75.8 C8
30-39 33.9 46.6 67.7 71.4 C7
40-49 23.2 40.8 58.6 67.8 C6
50+ 18.1 28.8 50.0 51.9 C5
C1 C2 C3 C4

C1: cohort born prior to 1900 C5: cohort born 1931-40

C2: cohort born 1901-10 C6: cohort born 1940-49
C3: cohort born 1911-20 C7: cohort born 1950-59
C4: cohort born 1921-30 C8: cohort born 1960-69

59
 Longitudinal Designs
• A fixed sample (or samples) of population
elements is measured repeatedly on the same
variables
• A longitudinal design differs from a cross-
sectional design in that the sample or samples
remain the same over time

60
 Cross-Sectional Data May Not
Show Change
Brand Purchased Time Period
Period 1 Period 2
Survey Survey
Brand A 200 200
Brand B 300 300
Brand C 500 500
Total 1000 1000

61
 Longitudinal Data May Show
Substantial Change
Brand Brand Purchased in Period 2
Purchased in
Period 1 Brand A Brand B Brand C Total

Brand A 100 50 50 200

Brand B 25 100 175 300
Brand C 75 150 275 500
Total 200 300 500 1000

62
 Uses of Causal Research

• To understand which variables are the

cause (independent variables) and which
variables are the effect (dependent
variables) of a phenomenon

• To determine the nature of the relationship

between the causal variables and the
effect to be predicted

• METHOD: Experiments
63
 Types of Experiments

• Two broad classes:

• Laboratory experiments: Those in which the
independent variable is manipulated and
measures of the dependent variable are taken
in a contrived, artificial setting for the purpose
of controlling the many possible extraneous
variables that may affect the dependent
variable
• Field experiments: Those in which the
independent variables are manipulated and
measurements of the dependent variable are
made on test units in their natural setting

64
Figure Tasks Involved In a Research Design

Define the Information Needed

Design the Exploratory, Descriptive, and/or Causal

Phases of the Research

Specify the Measurement and Scaling Procedures

Construct a Questionnaire

Specify the Sampling Process and the Sample Size

Develop a Plan of Data Analysis

65