THE HYPOTHETICO-DEDUCTIVE METHOD

The Seven steps involved in the Hypothetico-Deductive method of research are as follows. 1. 2. 3. 4. 5. 6. 7. Identify a Broad Problem Area Define the Problem Statement Develop Hypothesis Determine Measures Data Collection Data Analysis Interpretation of Data Application of the Hypothetico-Deductive Method in Organization 1. Identify a Broad Problem Area: ABC firm runs a promotional campaign but sales do not increase. 2. Define the Problem Statement: The Marketing Manager of ABC Firm observes that firm runs a promotional campaign but sales do not increase. The firm spent one million on a promotional campaign for the purpose of increasing its sales but actually the promotional campaign did not increase the sales. The marketing manager wants to know that why the sales of the firm did no increases. There is surely a problem here the marketing manager exclaims. 3. Develop Hypotheses: Hypothesizing is the logical step. From such theory, the marketing manager generates the hypothesis for testing. One among of them may be: The promotion was poorly executed. The effective promotion will increase the sales. Promotion has great effect on sales. 4. Determine Measures: The marketing manager develops a theory, incorporating all relevant factors due to which the sales do not increase. The marketing manager integrates all information in a logical manner. He considered the effect of price, quality, distribution, on the sales. He also considered the effect of ineffective promotional campaign. With the help of this theory all the variables are tested. 5. Data Collection: The marketing manager collects the information through different sources. He can collect the information from following sources. Information gathering through informal interviews Information gathering through formal interviews Information Gathering through Informal Interviews: The marketing manager talks with some salespersons to get awareness of this problem. He

informally interviews them. Some says that the prices are so the sales are not increased. Some says that there might be some problem. Information Gathering through Formal Interviews: After getting some awareness about the problem the marketing manager formally conducted the interview of some stakeholders for the purpose of collecting more information. These interviews disclosed some more views about the problem. These are as follows: Promotional campaign was poorly executed. Retailers have insufficient stock to meet demand of the customers. There may be some problem in distribution of product. This information is collected primarily. Further Scientific Data Collection: The marketing manager develops a short questionnaire on the various factors theorized due to which sales does not increased. The questionnaire includes these types of questions: Is the price of the product is appropriate? Is the quality of the product is up to the mark? Is the product is easily available at retail stores? Is the promotional campaign was properly executed? These Questionnaires are used for collection of data. 6. Data Analysis: The marketing manager analyzes the data obtained through questionnaire to see that due to which factors the sales do not increases in spite of heavy promotional expenses. In data analysis the marketing manager uses both quantitative and qualitative tools. Here he checks hypothesis that was generated. Careful data analysis is necessary for valid conclusion. 7. Interpretation of Data: Deduction is the process of arriving at the conclusion. Based on data analysis the marketing manager deduces or concludes that promotional campaign was poorly executed because data analysis shows that everything was right. The price was reasonable, retailers have enough stock, and the quality was also up to the mark. So, the conclusion is that the promotional campaign was poorly executed. For the purpose of increasing the sales the promotional campaign must be effective and it should attract the customers to buy product. In summary, these seven steps help in: Identifying a problem. Resolving a problem.