Research Methodology

Professor S.S. Khullar

Abhay S Nair
Definitions:

1) Research: careful and systematic study in some field of knowledge

undertaken to establish facts or principle
2) Scientific method(careful and systematic): the way in which the
researcher is going with the evidence and facts to reach conclusion in a
rationed manner
3) Business research: the application of scientific method for finding truth
in the business phenomena. These include defining business
opportunities, problems, monitoring the business performance and
generating alternative course of actions
Types of research
1) Basic research (pure research): it is a platform for the applied research.
It is the curiosity of a scientific question
2) Applied research: investigation of the findings of pure or basic
research, to determine if they could be used to develop new products
or technologies
3) Explanatory research: unstructured and qualitative in nature. It is not
used to draw conclusion. Data is more textual with pictures. Output of
explanatory research becomes the input of conclusive research. We
commonly go for secondary data, otherwise convenient samples
4) Conclusive research: structured and quantitative in nature output of
conclusive research becomes input of MIS [management information
system]
a. Descriptive research: explains the data
b. Casual research: cause and effect relation
5) Theoretical research: the data which is existing and in more qualitative
in nature
6) Empirical research: the data is collected and measured as part of
survey evidence.
7) Individual research: A research which is conducted by an individual
single handedly is known as individual research
8) Group research: research conducted by a team or more than two
individuals is known as group research
9) Comparative research: research undertaken to compare two data or
either two companies, two cultures, etc. It can either be individual or
group research
10)
Operation research: to find out the optimum utilization of
resources to maximize profit.
11)
Action research: undertaken by teams to deal with a problem and
find a way in which an outcome can be obtained (collaborative inquiry
of systems).
12)
Historical research: an attempt directed towards a phenomenon
occurred in the past. It is to understand the past trends and its cause

and effect. This helps to understand the present events and predict
future events
13)
Qualitative research: qualitative research is designed to reveal a
target audiences range of behavior and perceptions that drive it with
reference to specific topics or issues.
14)
Quantitative research: deals in number, logic
Importance of research:
1) To find the optimal solution to business related problems
2) To analyze and find out what is the position of the company in the
market in which it operates.
3) To forecast the demand of already launched product or a product to be
launched
4) Research helps the government to come up with an effective policy to
run the state administration.
5) Helps the government to adopt a technology that is beneficial for the
society.
6) Social control and performance
Steps involved in research
1) Defining research problem should be specific, uniformly and similarly
understandable to all
2) Identifying the research objectives
3) Research design
a. Selection of research approach
b. Selection of sampling plan
c. Selection of questionnaires, schedules, observational format
** schedule self filled by the interviewer
**questionnaires filled by the interviewee
d. Pilot study
4) Collection of data (primary or secondary)
5) Presentation of data
a. Tabular
b. Graphical
6) Analysis of data
7) Interpretation of result / outcomes
8) Validation of outcomes
Studies consumer behavior
Marketing research provides data about consumer behavior. It provides data
about age, incomes, likes, dislikes etc. of the consumers. It also finds out the
opinions of the consumers about a companys product. This data is used to
make production and marketing policies

Selects promotional techniques

Marketing research helps in deciding the promotional techniques which could
be employed

Supplies marketing information

Marketing research supplies data about the market situation
This market related data is used to find out:
1) The present and future demand and supply position.
2) The level of competition and steps taken to control it
3) Market opportunities
4) The cause of fall in sales level
Evaluates marketing performance
Market research helps the company to evaluate its marketing performance
and to take steps to improve it.
Market research is also used to find out the effect of price, package, brand
name etc. on sales
Miscellaneous needs
1) Improves efficiency of the marketing department creates goodwill and
good reputation
2) Marketing research helps take a rational and effective decision
3) Market research helps choose a suitable staff

Research design
Research design is a blueprint for the research to be conducted
Terms
1) Variables: are factors which might or might not affect an experiment
**Extraneous variables: these are those variables which interfere with the
research
**Confounded relationship: when the external factors are not under
homogeneity
**Treatment: special conditions given to research
**control group: the group to which treatment is not applied but is
homogeneous to the experimental group
**Experimental group: the group to which treatment is given.

Schedule
Lesser coverage
Personal touch
Higher cost

Questionnaire
Higher coverage
No personal touch
Lower cost

Interview technique
An interview is a conversation between two or more where questions are
asked by the interviewer and responded by the interviewee
Types of interviews
1) Structured interview
2) Unstructured interview
3) Focused interview
4) Non directive interview
5) Personal interview
6) Telephonic interview
A) Structured interview: standardized interview or research administered
interview
interviewer decides and plans in advance the nature and scope of
questions to be asked from the interviewee. Structured interviews are
the preferred means of collecting data for a statistical survey.
B) Unstructured Interview: interviewer changes or manipulates the
questions in order to meet respondents intelligence, understanding or
belief. It does not offer limited, pre-set range of answers for a
respondent to choose, but instead advocates listening to how each
individual person responds to the question. Mostly used for sociology
otherwise this technique is rarely used.
C) Focused interview: this technique is used to collect quantitative data
by setting up a situation (the interview) that allows a respondent the
time and scope to talk about their opinions on a particular subject. The
focus of the interview is decided by the researcher toward areas that
the researcher is interested in exploring. It uses open-ended questions.
D) Non directive interview: this is the interview which is unstructured
and flexible in nature.

Observation Techniques
I.
1) Disguised/Hidden: when the subject under observation is not aware
that he is being observed. Observers presence is not known
2) Undisguised / open / visible: when the subject under observation is
aware that he is being observed
II.
1) Structured: format is decided beforehand from where to start and
where to end. Systematic approach for scientific observation is
always structured
2) Unstructured: format is not pre-decided and is not systematic
III.
1) Overt observation: observers approach is active. The researcher
actively participates in the observation taking place (usually
designed). Doing the same activities as the participants
2) Covert observation: researcher or observers approach is passive
i.e. not an active participant in the observation process
IV.
1) Natural observation: when you look at the subject in the normal,
routine environment
2) Contrived observation: when looking at the behavior of the
subject in an artificially created environment
What are the advantage of observation technique?
Data is very much of current scenario accurate.
We dont need the cooperation of the subject.
When the subject is illiterate and not willing to cooperate.
Conditions for observation techniques:
1) Observations should be inferable / to be able to draw conclusion
2) Observation should be repetitive in nature to be able to draw
conclusions (repetitive frequencies)

Measurement and scales

Measurement is the process of assigning numbers to the properties of
empirical events, objects, persons etc. in compliance with a set of rules.
Scale may be defined as any series of items that are arranges progressively
according to value or magnitude into which an item can be placed according
to its qualification
4 mapping rules
1) Nominal scale of measurement
2) Ordinal scale of measurement
3) Interval scale of measurement
4) Ratio scale of measurement
Characteristics of measurement
1) Classification: numbers are used to group or sort responses. No order
exists
2) Order: numbers are ordered or ranked
3) Distance: difference between numbers are ordered
4) Origin: the number series has a unique origin and is indicated by the
number zero. This is an absolute and meaningful zero point.
Nominal scale of measurement
This scale of measurement refers to the raw data being labeled using
numbers. Statistical measurements will not help in drawing analysis from the
nominal scale
Ordinal scale of measurement
Appropriate measure of central tendency is median. Appropriate measure of
dispersion is interquartile deviation or quartile deviation. Mostly consumeroriented research and attitude measurement rely on ordinal data.
Interval scale of measurement
When data has only 3 characteristics out of the 4 (classification, order,
distance, origin), with the absence of origin, it is known as interval scale of
measurement
e.g. 0 C = 273 K, 7 C = 280 K, 14 C = 294 K
the numbers are assigned to arrange objects according to their magnitudes
as well as also distinguish the ordered arrangement in units of equal
intervals. Interval scale lacks a true zero or unique natural origin; it does
not have the capacity to measure the complete absence of a characteristic.

Appropriate measure of central tendency is mean. Appropriate measure of

dispersion is standard deviation.
Ratio scale of measurement
A scale having absolute quantities instead of relative quantities, and
possessing an absolute zero wherever there is an absence of a given
attribute is known as ratio scale. Ratio scale represents the actual amount of
variables. Most of the statistics techniques are usable with ratio scales. We
can do multiplication and division on such data; geometric mean and
harmonic mean can be used as measures of central tendency. Coefficient of
variation can be calculated.
Errors in Measurement
Origin
Researcher
Sample
Interviewer
Instrument

Situation
Respondent

Type of Error
Incorrect
question,
inappropriate
analysis,
misinterpretation.
Wrong sampling technique, not being true representative of
population.
Biased attitude, misinterpretation, carelessness etc.
Inappropriate scale, ambiguous questionnaire, complex
words, inadequate space to reply, response choice
omission etc.
Lack of rapport, lack of assurance, condition that places
strain on interviewee
Casual attitude to reply, fatigue, may not admit ignorance,
boredom, etc.

Characteristics of Sound measurement tool

Precise
Unambiguous
Reliable, free from error
Valid
Practical- feasibility of the tool
Accuracy of Measurement
The extrent to which the measurement is free from systematic and
variable errors.
Three major criteria of a good measurement:
Reliability: Degree to which measures are error free
Validity: Ability to scale

Sensitivity: A measuring instrument ability

measure variability in stimuli or responses.

to

accurately

Increase sensitivity: sensitivity of a scale can be increased by allowing for a

greater range of possible scored i.e. by adding more number of questions or
items. This is required particularly when changes in attitudes or other
hypothetical constructs are under investigation
Criterion validity
It refers to the ability of some measure to correlate with other measures of
the same construct. It is assessed when one is interested in determining the
relationship of scores on a test to a specific criterion. This form of validity
reflects the success of measures used for some empirical estimating
purpose.

How to assess reliability?

Scorer reliability: refers to the consistency with which different people
(judges/observers) who score the same test agree. Herein, we need to
calculate the correlation between ratings of two observers.
Internal consistency reliability
In Internal consistency reliability estimation we use the single measurement
instrument administered to a group of people on one occasion to estimate
reliability. In effect we judge the reliability of the instrument by estimating
how well the items that reflect the same construct yield similar results. There
are a wide variety of internal consistency measures that can be used such
as:
1) Splithalf reliability: it involves splitting a test into two equivalent
halves and checking the consistency of the scores obtained from the
two halves.
2) Cronbachs alpha: it can be used when test items are quantitative and
when they are dichotomous. Researchers prefer to use coefficient
alpha when they want an estimate of the reliability of a homogeneous
test.

Alternative form reliability:

Each of the two tests must be designed to measure the same thing but
should differ in a systematic way. The alternative form method is viewed as
superior to the retest method because a respondents memory of test items
is not as likely to play a role in the data received. One drawback of this
method is the practical difficulty in developing test items that are consistent
in the measurement of a specific phenomenon.
Test- retest reliability
It involves administering of the same scale or measure to the same
respondents at two separate point of time in order to test only one form of
measure. The amount of time allowed between measures in critical. If we
measure the same thing twice then the correlation between the two
observations will depend upon the two measurement occasions. The shorter
the time gap, the higher the correlation; the longer the time gap, the lower
the correlation. This is because the two observations are related over time
the closer in time we get the more similar the factors that contribute to error.
The correlation coefficient between two such sets of responses is normally
used as a quantitative measure of the test retest reliability

Importance of scaling

Measurable
Precise
Variables are amenable to mathematical treatment

Methods of Scaling
Direct/undisguised
method:
prone
to
errors,
awareness in admissibily, self-incrimination, etc.
Indirect/disguised method: Reveals respondents
attitude, belief, etc. indirectly.

Scaling Techniques

Rating Scales
o Graphic- symbols, squares, circles, pictorial.
o Itemized
Ranking or comparative scales
a) Semantic

b) Thurston -Different scales

c) Summative Scales (Likert Scales)
d) Cumulative- Guttmans Scalogram Analysis
Rating scales:
o Graphic- cts rating scale---- Good-------- Average-------bad
Limitations:
Coding and analysis- require time.
Respondents framework of references
o Itemized Rating scale
Ordered progressively
Widely used in marketing research
Ranking:
Data obtained- ordinal
Spearmans rank correlation is appropriate
Arbitrary Scale:
Developed on adhoc basis based on researchers own subjective selection of
items with the assumptions that subjective selection of items with the
assumption that sales measure the concept for which they have been
designed.
Advantage:
Developed easily and fastest
Less expensive
Thurston
Attitude measurement
Mean square
Appropriate for single attitude at a time
Guttmans Scalogram Analysis
Scale is uni-dimensional as the responses fall into a pattern of
agree/disagree
Based on assumption that each statement has a perfect relationship
with the particular dimension of the attitude.
Statements form a cumulative series
Usually applied to dichotomous data
Most used in psychology

Limitation Unidimensions
Construction-tedious & complex
Not reliable- complex objects
Experimental research
It involves manipulation of at least one variable and control over the other
relevant variables so as to measure its effect on dependent variable
The variable(s) which is manipulated is also called independent variables, a
treatment, an experimental variables or the cause
Experimental research will always have two or more groups for comparison
on the dependent variables. Its objective is to explore and understand cause
& affect relationship.
Experimental research design a blueprint of the procedure that enables the
researcher to test his hypothesis by reaching valid conclusions, about
relationships between independent and dependent variables. It refers to the
conceptual framework within which the experiment is conducted.
Professor R. A. Fisher realized by dividing agricultural fields into blocks and
conducting experiments in each of these blocks individually results in more
reliable information/outcomes

Types of experimental methods

1) Laboratory experiment
a. Experiment under controlled condition in a lab similar to natural
condition
b. Explore cause and effect relationship between variables
c. Attempts to control extraneous variables.
d. Manipulation of independent variable
2) Simulation
a. Creating artificial environment similar to actual natural
environment
b. Here the study is specific to a particular situation/problem in
hand (unlike laboratory method)
3) Field experiment
a. Experiment under real natural environment
b. Required high degree to skills and competence to conduct study
c. Experiment conducted in loose situation

Basic principles of experimental research design

1) Principle of replication
a. According to this, experiment should be repeated more than
once. Thus, each treatment is applied in many experiment units
instead of one in order to increase statistical accuracy
2) Principle of randomization
a. According to this, experiment should be designed in such a
manner that the variations caused by extraneous factors can all
be combined under the general heading of chance. This
provides protection against the effect of extraneous factors by
providing a better estimation of experimental error.
3) Principle of local control
a. According to this, extraneous factor is made to vary deliberately
over widest possible range such that the variability caused by it
can be measured and thereby eliminated from the experimental
error. Thus the experiment should be planned in such a way so
that researcher can perform two way ANOVA (Analysis of
variance), in which the total variability of data is divided into
components attributed to:
i. Treatments
ii. Extraneous factor
iii. Experimental error

Data Processing
Process of converting raw data into useful information or knowledge
It involves
1) Data editing
2) Data classification
3) Transcription
4) Coding
Data Editing
A process of locating and removing errors, incompleteness or inconsistency
in survey data so it ensures that survey data is accurate, complete and
consistent
Objectives of data editing are:
1) To ensure the accuracy of data
2) To establish the consistency of data
3) To determine whether or not the data are complete
4) To ensure the coherence of aggregated data; and
5) To obtain the best possible data available
Data Classification
Categorization of data for its most effective and efficient use is done by
arranging data in homogeneous groups based in similar characteristics. A
well-planned data classification system makes essential data easy to find.
This can be of particular importance in risk management, legal discovery,
and compliance with government regulations.
Transcription
The process of conversion of data from one medium to another is called
transcription. The data is transferred from interview schedule to a card such
that there is only once card corresponding to each unit in the survey
Transcription makes sorting of information easier; and the records remain
intact without any marking on them
It is recommended that two individuals make independent transcriptions to
eliminate the possibility of creeping transcription errors.

Coding:
Transferring the data from interview schedule to a card is in the form of
abbreviation, a number, an alphabet or symbol which is assigned by
researcher to every schedule item and response category. Such
representation of data in card is referred to as coding. Mock code book is

constructed for pivot study to show various codes that are temporarily
assigned to different response categories. Later raw data code book is
prepared that contains final codes to different response categories.
Guidelines of coding
1) One code should be specifically indicating one and only one kind of
response category. There should be no overlapping.
2) Each set of categories should be collectively exhaustive. For
unanticipated responses, a miscellaneous category should be created
3) Separate categories should be created for non-applicable, refusal or
ignorance
4) Inter-coding and intra-coding tests should be conducted
Inter-coder agreement test
Degree to which any coder will
classify and code the given response
in such a way that any other coder
will also classify and code the same
given response in similar way

Intra coder agreement test

Degree to which the same individual
coder will code the given response in
the same way at different points of
time

Common tools
Discriminant analysis
A statistical analysis to predict a categorical dependent variable by one or
more binary independent variables.
Cut off score = n1*y1+n2*y2/n1+n2
What is discriminant score D?
D is a weighted linear combination (sum) of the discriminating variables.
If the discriminant score of data set is less than D, then include the member
of entity representing the data in below category; else in the above
category.
The purpose
To establish a linear combination if variables that discriminates between
categories of dependent variable in best possible manner
To investigate the difference between groups on the basis of attributes and
indicating as to which attribute contributes most to the group separation

Completely randomized design (C.R. design): Involves only two principles

viz., the principle of replication and the principle of randomization of
experimental designs. It is the simplest possible design and its procedure of
analysis is also easier. The essential characteristic of the design is that
subjects are randomly assigned to experimental treatments (or vice-versa).
For instance, if we have 10 subjects and if we wish to test 5 under treatment
A and 5 under treatment B, the randomization process gives every possible
group of 5 subjects selected from a set of 10 an equal opportunity of being
assigned to treatment A and treatment B. One-way analysis of variance (or
one-way ANOVA) is used to analyze such a design. Even unequal replications
can also work in this design. It provides maximum number of degrees of
freedom to the error. Such a design is generally used when experimental
areas happen to be homogeneous. Technically, when all the variations due to
uncontrolled extraneous factors are included under the heading of chance
variation, we refer to the design of experiment as C.R. design.

Randomized block design (R.B. design) is an improvement over the C.R.

design. In the R.B. design the principle of local control can be applied along
with the other two principles of experimental designs. In the R.B. design,
subjects are first divided into groups, known as blocks, such that within each
group the subjects are relatively homogeneous in respect to some selected
variable. The variable selected for grouping the subjects is one that is
believed to be related to the measures to be obtained in respect of the
dependent variable. The number of subjects in a given block would be equal
to the number of treatments and one subject in each block would be
randomly assigned to each treatment. In general, blocks are the levels at
which we hold the extraneous factor fixed, so that its contribution to the total
variability of data can be measured. The main feature of the R.B. design is
that in this each treatment appears the same number of times in each block.
The R.B. design is analyzed by the two-way analysis of variance (two-way
ANOVA)* technique.
Latin square design
Controls the effects of 2 non interacting extraneous variables on the
dependent variable
It economizes the use of test units
We divide each extraneous variable into as many levels as the
independent variable

s1
s2
s3
s4

It does not detect the effect of interaction between various levels of

the two extraneous variables
It requires the number for rows, columns and treatment to be equal
In case of the 2x2 L.S design, there are no degrees of freedom
available for MSE
w1
A1
B2
C3
D1

w2
D2
c4
A3
B3

w3
B1
A2
D4
C2

w4
C1
D3
B4
A4

D.f for residual error = n-t-c-r+2

Analyze general linear model univariate bring the dependent
variable .. model
Factorial design
It is preferred in experiments wherein the effects of varying more than one
factor are to be determined, i.e. number of factors effecting a particular
problem
It also helps to measure the interaction effects of variables. Most preferred
when 2 or more independent variables interact with each other
Validity can be defined as the degree to which a design / test measures what

Analyze classify discriminant (discriminant analysis window opens)

Bring the categorical dependent variable below the grouping variable
define the range bring predictive variable below independents select the
radio button enter
together
Click the button statistics select means uni-variate ANOVA within
groups relations (to check multi collinearity) unstandardized (to estimate
the discriminant function) continue
Click button classify all groups equal within groups summary table
leave-one-out classification (for cross validation) continue
Click the save button predicted group membership discriminant scores
continue
Click the ok button to get the output screen

Ready-to-eat case analysis

From the table group statistics and functions at group centroids we
justify that the sample has been divided into 2 groups namely rarely
consumed and weekly consumed. Using the table canonical discriminant
function coefficients we derive the discriminant function as follows:
Y=1.303+0.042 Xa-.362Xb+0.312Xc-.475Xd+1.033Xe-.587Xf+.828Xg
Analyzing the tables group statistics followed by tests of equality of group
means we realize that the significant predictive variables to discriminate the
heavy and light consumers are taste as compared to freshly cooked food (X g)
and price reasonability (X e), both Xg and Xe are associated with the P values
less than 0.05. This analysis is further supported by the table Structure
matrix wherein we notice the highest correlation between Xg and D score
followed by 0.364 by coefficient correlation and D score.
From the table pooled within groups matrices we notice that no two
predictors show correlation coefficient more than 0.75. Thus we conclude
that there does not exist, a severe problem of multi collinearity between the
predictor variables and hence this model seems to be reliable.
From the tables eigenvalues we find that eigenvalue 0.758 is large enough
to explain 100% variance with a canonical correlation of 0.657 between the
D score and the 10 predictor variables. This implies that 43.16 %
(0.657*.657) is the contribution of all 10 predictor variables to the value of DScore. From the table Wilks lambda we realize Lambda=0.569 is small
enough with a P value 0.005 (less than 0.05) to conclude that the
discriminant value is statistically significant.
From the table functions at group centroid we derive the cut off score for
classifying the new respondent as follows:
(contd. in paper***)
From the table classification result we obtain the hit ratio as follows:
Hit ratio = ((29+14)/52)*100 = 82.7%
This implies that 82.7% of the original cases are correctly classified.
In cross validation we remove the first record out of 52 and derive the
discriminant function on the remaining 51 record. We substitute the value of
predictor variable from the removed record to this discriminant function and
check if it was classified correctly. We repeat this step while removing and

replacing all records repeatedly 52 times and realize that 65.4% of cross
validated group cases are correctly classified.