Management Research Methods Assignment

Submitted to
Prof. Salih Kirmizi

To find out the reason why customer¶s

services take part in business
management?

Name: Vipulkumar Karasanbhai Patel

College Id: MBS/NCFE/AUG09/2355

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 Research Proposal

ÿ Title

ÿ Introduction (inc. statement of research problem/ question/ aims objectives)

ÿ Background/ Literature Review

ÿ Research Design

  Method of data selection

  Instruments/ techniques to be used

  Methodological limitations

  Methodological significance/ innovation

  Data analysis strategy

  Ethical issues

  Timeline

  Resources required

  Expected outcomes of research

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 à. Title:

To find out the reason why customer¶s services take part in business
management?

2. Introduction:

In today¶s fast-paced and increasingly competitive market, the bottom line of a

firm¶s marketing strategies and tactics is to make profits and contribute to the
growth of the company. Customer satisfaction, quality and retention are global
issues that affect all organizations, be it large or small, profit or non -profit,
global or local. Many companies are interested in studying, evaluating and
implementing marketing strategies that aim at improving customer retention
and maximizing share of customers in view of the beneficial effects on the
financial performance for the firm. There has been a strong advocacy for the
adoption of customer retention as one of the key performance indicators (e.g.
Kaplan and Norton, 2001). For instance, a study by Reichheld and Sasser
(1990) reported a high correlation between customer retention and profitability
in a range of industries. However, the fragmentation of media choices and the
dynamic nature of the market, coupled with an increased number of more
demanding and affluent consumers, brought greater challenges to marketing
practitioners in retaining their customers.

Quality and customer satisfaction have long been recognized as playing a

crucial role for success and survival in today¶s competitive market. Not
surprisingly, considerable research has been conducted on these two
concepts. Notably, the quality and satisfaction concepts have been linked to
customer behavioural intentions like purchase and loyalty intention,
willingness to spread positive word of mouth, referral, and complaint intention
by many researchers (Olsen, 2002; Kang, Nobuyuki and Herbert, 2004;
Söderlund and Öhman, 2005). The most commonly found studies were
related to the µantecedents, moderating, mediating and behavioral
consequences¶ relationships among these variables ± customer satisfaction,
service quality, perceived value and behavioral intentions. However, there
have been mixed results produced.

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 º. Background/ Literature Review:

The interest in studying satisfaction and service quality as the antecedents of

customer behavioural intentions in this paper has been stimulated, firstly, by
the recognition that customer satisfaction does not, on its own, produce
customer lifetime value (Appiah -Adu, 1999). Secondly, satisfaction and quality
are closely linked to market share and customer retention (Fornell, 1992; Rust
and Zahorik, 1993; Patterson and Spreng, 1997). There are overwhelming
arguments that it is more expensive to win new customers than to keep
existing ones (Ennew and Binks, 1996; Hormozi and Giles, 2004). This is in
line with Athanassopoulos, Gounaris and Stathakopoulos¶s (2001) arguments
that customer replacement costs, like advertising, promotion and sales
expenses, are high and it takes time for new customers to become profitable.
And lastly, the increase of retention rate implied greater positive word of
mouth (Appiah-Adu, 1999), decrease price sensitivity and future transaction
costs (Reichheld and Sasser, 1990) and, finally, leading to better business
performance (Fornell, 1992; Ennew and Binks, 1996; Bolton, 1998; Ryals,
2003).

From the literature that has been reviewed so far, customer satisfaction
seems to be the subject of considerable interest by both marketing
practitioners and academics since 1970s (Chu rchill and Surprenant, 1982;
Jones and Suh, 2000). Companies and researchers first tried to measure
customer satisfaction in the early 1970s, on the theory that increasing it would
help them prosper (Coyles and Gokey, 2002). Throughout the 1980s,
researchers relied on customer satisfaction and quality ratings obtained from
surveys for performance monitoring, compensation as well as resource
allocation (Bolton, 1998) and began to examine further the determinants of
customer satisfaction (Swan and Trawick, 19 81; Churchill and Surprenant,
1982; Bearden and Teel, 1983). In the 1990s, however, organizations and
researchers have become increasingly concerned about the financial
implications of their customer satisfaction (Rust and Zahorik, 1993; Bolton,
1998).

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 A. Research Plan

The research will be of a realistic nature. Both deductive and inductive reasoning
is to be used, the former being normally associated with the positivist approach
and the later with the interpretive approach.

When analyzing data (whether from questionnaires, interviews, focus groups, or

whatever), always start from review of your research goals, i.e., the reason you
undertook the research in the first place. This will help you organize your data
and focus your analysis. For example, if you wanted to improve a program by
identifying its strengths and weaknesses, you can organize data into program
strengths, weaknesses and suggestions to improve the program. If you wanted to
fully understand how your program works, you could organize data in the
sequential order in which customers or clients go through your program. If you
are conducting a performance improvement study, you can categorize data
according to each measure associated with each overall performance result.

Data collection method:

(à Primary Data Collection

(2 Secondary Data Collection

(à Primary Data Collection:

Primary data collection is necessary when a researcher cannot find the data
needed in secondary sources. Market researchers are interested in primary data
about demographic/socioeconomic characteristics, attitudes/opinions/interests,
awareness/knowledge, intentions, motivation, and behaviour. Three basic means

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 of obtaining primary data are observation, surveys, and experiments. The choice
will be influenced by the nature of the problem and by the availability of time and
money.

Advantages:

3 Addresses Specific Research Issues

3 Greater Control

3 Efficient Spending for Information

3 Proprietary Information

Disadvantages:

3 Cost

3 Time Consuming

3 Not Always Feasible

(i Questionnaire:

A Questionnaire is often the heart of a survey operation. If the heart is not

properly set up then the whole operation is bound to fail. Thus studying the main
objective of the questionnaire is important. To maximize our response rate, we
have to consider carefully how we administer the questionnaire, establish rapport,
and explain the purpose of the survey. The length of the questionnaire should be
appropriate. In order to obtain accurate relevant information, we have to give
some thought to what questions we ask, how we ask them, the order we ask
them in, and the general layout of the questionnaire.

Advantages:

3 Can be used as a method in its own right or as a basis for interviewing or a

telephone survey.

3 Can be posted, e-mailed or faxed.

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 3 Can cover a large nu mber of people or organizations.

3 Wide geographic coverage.

3 Relatively cheap.

3 No prior arrangements are needed.

3 Avoids embarrassment on the part of the respondent.

3 Respondent can consider responses.

3 Possible anonymity of respondent.

3 No interviewer bias.

Disadvantages:

3 Design problems.

3 Questions have to be relatively simple.

3 Historically low response rate (although inducements may help).

3 Time delay whilst waiting for responses to be returned.

3 Require a return deadline.

3 Several reminders may be required.

3 Assumes no literacy problems.

3 No control over who completes it.

3 Not possible to give assistance if required.

3 Problems with incomplete questionnaires.

3 Replies not spontaneous and independent of each other.

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 3 Respondent can read all questions beforehand and th en decide whether to
complete or not. For example, perhaps because it is too long, too complex,
uninteresting, or too personal

(ii Interviews:

An interviewer asking questions generally face -to-face to other persons conducts

personal interview. This sort of interview may be in the form of direct personal
investigation or it may be an indirect oral investigation. This method is particularly
suitable for intensive investigations.

Advantages:

3 Serious approach by respondent resulting in accurate information.

3 Good response rate.

3 Completed and immediate.

3 Possible in-depth questions.

3 Interviewer in control and can give help if there is a problem.

3 Can investigate motives and feelings.

3 Can use recording equipment.

3 Characteristics of respondent assessed ± tone of voice, facial expression,

hesitation, etc.

3 Can use props.

3 If one interviewer used, uniformity of approach.

3 Used to pilot other methods.

Disadvantages:

3 Need to set up interviews.

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 3 Time consuming.

3 Geographic limitations.

3 Can be expensive.

3 Normally need a set of questions.

3 Respondent bias ± tendency to please or impress, create false personal

image, or end interview quickly.

3 Embarrassment possible if personal questions.

3 Transcription and analysis can present problems ± subjectivity.

3 If many interviewers, training re quired.

(iii Observation:

Observation becomes a scientific tool and the method of data collection for the
researcher when it serves a formulated research purpose is systematically
planned and recorded and is subjected to checks and controls on validity and
reliability.

Under the observation method the information is sought by way of investigators

own direct observation without asking from respondent

Advantages:

3 Useful for collecting information from employees.

3 Different writers compared and contrasted simult aneously.

3 Allows the researcher freedom to move from one organization to another.

3 Researcher not personally involved.

3 Diaries can be used as a preliminary or basis for intensive interviewing.

3 Used as an alternative to direct observation or where resources are limited.

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 Disadvantages:

3 Subjects need to be clear about what they are being asked to do, why and
what you plan to do with the data.

3 Diarists need to be of a certain educational level.

3 Some structure is necessary to give the diarist .focus, for example , a list of
headings.

3 Encouragement and reassurance are needed as completing a diary is time -

consuming and can be irritating after a while.

3 Progress needs checking from time -to-time.

3 Confidentiality is required as content may be critical.

3 Analyses problems, so you need to consider how responses will be coded

before the subjects start filling in diaries.

(2 Secondary Data Collection:

Secondary data means that are already available that is they refer to the data,
which have already been collected and analyzed by someone else. When the
researcher utilizes secondary data, then he has to look into various sources from
where he can obtain them. In this case he is certainly not confronted with the
problems that are usually associated with the collection of original data.

Various publications of the central, state and local government, Various

publications of foreign government or of internat ional bodies and their subsidiary
organization.

Technical and trade journals, Books magazines and newspapers, Reports

publication of various associations connected with business and industry, banks,
stocks exchanges etc.

Advantages:

3 Unobtrusive

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 3 Fast & inexpensive
3 Avoid data collection problems
3 Provide bases for comparison
3 Ease of Access
3 Low Cost to Acquire
3 May Help Clarify Research Question
3 May Answer Research Question
3 May Show Difficulties in Conducting Primary Research

Disadvantages:

3 Data availability
3 Level of observation
3 Quality of documentation
3 Data quality control
3 Outdated data
3 Quality of Researcher
3 Not Specific to Researcher¶s Needs
3 Inefficient Spending for Information
3 Incomplete Information
3 Not Timely
3 Not Proprietary Information

Limitation

Any research or study always has some limitations under which this has to be
undertaken. This one too was not an exception. These limitations are poised by the
situation « some external and some inherent. This study has been conducted with
utmost consideration to the adequacy of data and quality of information, though as
mention earlier the confidence on the sources cannot be minimized to zero in context
of precision. The limitation can be enlisted as here under: -

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 1. The perception level of the respondents.
2. Availability of documents as sources of secondary information.
3. Reliability of information collected from various public information sources such
as magazines and website.
4. Respondents are not willing to fill the questionnaire.
5. Sometimes the respondents are not a vailable at their place.
6. Very often the respondent do not express their true feelings, in such case their
habit, preference, practice, cannot be assessed correctly.
7. Some of the respondents refuse to give the important information best known to
them.

REFERENCES:

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Anderson, E. W., and Sullivan, M. W. (1993). The Antecedents and Consequences

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Appiah-Adu, K. (1999). Marketing Effectiveness and Customer Retention in the

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Athanassopoulos, A., Gounaris, S. and Stathakopoulos, V. (2001). Behavioral

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Bearden, W. O., and Teel, J. E. (1983). Se lected Determinants of Consumer

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