CHAPTER IV: RESEARCH METHODOLOGY

4.1. Introduction

The chapter contains the discussions about formulation of hypothesis followed by details
of research methodology.

4.2. Formulation of Hypotheses:

The hypothetical statements are the outcome of the literature review as well as the
research gap and rapid growth of the preschool franchising which has been referred
in the introduction and franchising related chapters.
The researcher has core interest in understanding the organisational management
of the preschool. Similarly, the other aspect of interest in of Marketing of
Preschools.
Both of them are the presupposition for the growth of a preschool.
Thus, with reference to growth and these factors the researcher had divided them
into two parts
a. Organisational Factors Marketing factors
This has led to spell out the hypothesis as follows:
Hypothesis 1: Organisational Management influences growth of franchised
preschool significantly.
(The scope of organisational management is discussed earlier in the chapter I)
In above statement the relationship of organisational management and the growth
of preschool is considered for examination.
This makes it necessary to express the researcher’s view point to the word
“positively” in this context of the study.
Connotation of word positively:
The relationship is considered to be positive if it is indicating the count of 50% or
more in terms of percentile or by way testing correlation statistically where ‘p’
value would be more than 0.5 at confidence level of 0.05
 For the purpose of measuring the relationship the following indicators are identified
as growth indicators in case of organisational factors
Ø Satisfactory financial Returns
Ø Increase in awareness
Ø Increase in Admissions.
Ø Increase in Activities

Hypothesis 2: Marketing Mix influences the growth of franchised preschool

significantly.
For this the connotation of positively is same as in case of Hypothesis 1
The indicators of growth are considered as
1. Increase in admission 2. Increase in activities 3.Increase in Reputation
Thus, hypotheses are subjected to scrutiny of primary data as well as statistical tests
suitable to the context of the study.
The next chapters is the discussion about the case development

4.3. Research Methodology:

The research pertains mainly to the following parts :
(a)Organisational Management : It considers different organisational factors
(b) Marketing factors: These are related to 7 Ps generally used in marketing terms

4.4. Research Design:

Research type: It is a formalized study, which is structured and is along with
hypotheses. Thus, it is Descriptive and Diagnostic.
Researcher has collected Primary data as well as secondary data.
Ø Primary Data Collection
The researcher has collected primary data with the help of
a. Survey
b. Interactions
c. Case Study
The major source of Primary Data isCensus Level Inquiry, which is done with the
help of structured questionnaire.
a. Survey: Questionnaire for Key persons who is an owner or a person in charge
of the preschool management and
b. Interactions with
i. Franchisors CRM Managers (10)
ii. Teachers (Two teachers from each Pre School 65 x 2 = 130)
iii. Parents (10 for each brand i.e. 150 )
In ordinary course the primary data is collected by conducting interview and
questionnaire. However, many a times both are limited to the questions posed. And
those replies only are considered for the data analysis. And hence has the limitation
of not having the information which the respondents share. But in case of
interaction in addition to the questions asked the points are taken which they share
on their own.
Thus, the scope of interaction is broader than the interview or questionnaire.
c. Case study

The areas covered for each stakeholder are discussed below:

- Franchisees:
• Reasons for taking up a preschool franchisee
• Challenges
• Operations
• Franchisor’s support
• Marketing activities
• Future plans
- Franchisor
• Selection of Franchisee,
• Areas of Support to Franchisee (Project start up support, Financial,
Marketing, Recruitment and Selection, Training)
• Mode of Support
• Expectation from the Franchisee
 - Teachers
• Factors of getting selected
• Training and Development Facilities
• Career Advancement
- Parents
• Criteria for selection of a preschool
• How preschool reached you Perception about staff.
• Experience about management processes
• Suggestion for improvement
Selection of teachers and parents are as per convenience.

Ø Secondary data:
The sources of secondary data are:
( a ) Indian Franchise Association Report
( b ) Preschool Company Web Sites

4.4.1. Survey Method

• Population:
The features of population are as under:
• Geographical Area is Pune City
• Preschool Selection:
o The preschool is franchised for the brand established during year 2000
to 2014.

Table 8. Preschool Brands in Pune

Sr. Name of the Brand Franchisees in Pune Franchises selected

No as on 2015 for the study
(more than 3 years
experience)
01 Bachpan 03 01
 02 Eurokids 19 17
03 Jumbokids 01 00
04 Kangarookids 02 02
05 KIDZEE 33 18
06 Little Millennium 08 05
07 Sera International 01 00
08 TIME kids 08 05
09 Tee House Play group 06 06

10 Shanti Junior 05 04
11 Smartkidz 03 01
12 Learning Curve 01 01
TOTAL 95 65

Selection of Preschool franchisee

There are 95 schools which were in Pune city as on June 2015.
The preschools can be qualified to be in the sample where the school has completed
minimum three academic years by 2015.
Further, areas of location of franchised schools are divided into PMC and PCMC
zones.
Thus, PMC zone is considered and year of establishment is considered for the
selection of the preschool franchisee.
While selecting the preschool a criterion used is, the Pre School which has
completed three years has sufficient experience of running a school and can be
considered as an established one. The processes are fairly known and established
in case of promotion, admissions, teaching, learning and evaluation, overall
development of students and other deliverables.
The number of schools which are qualified according to the above criterion is 65.
The schools are belonging to different areas and sufficiently cover all the brands.
Thus, the number has sufficient potential to represent all the brands prevailing in
Pune City.
The census survey is carried out as the number of schools being 65 (out of 95) were
well within the reach of conducting a survey for all the schools
Pune City includes the areas which are included in the following table
Table 9. Franchised Preschools in Census

Location of Number of years

Sr.
Brand preschool City completed as on
No
franchisee 2015
1 Eurokids Baner Pune 3
2 Eurokids RangeHill Pune 4
3 Eurokids Vishrantwadi Pune 4
4 Eurokids Aundh Pune 5
5 Eurokids Koregaon Park Pune 3
6 Eurokids Kalyani Nagar Pune 3
7 Eurokids Viman Nagar Pune 4
8 Eurokids Kondhwa Pune 4
9 Eurokids Bibwewadi Pune 5
10 Eurokids Hadapsar Pune 3
11 Eurokids Pashan Pune 3
12 Eurokids Hadapsar Pune 4
13 Eurokids Bavdhan Pune 3
14 Eurokids Bavdhan Pune 5
15 Eurokids Kothrud Pune 10
16 Eurokids Kothrud Pune 8
17 Eurokids Aundh Pune 12
18 Jumbo Kids Aundh Pune 7
19 Kangarookids Koregaon Park Pune 3
20 Kangarookids Baner Pune 4
21 Kidzee Aundh Pune 7
22 Kidzee Baner Pune 5
23 Kidzee Pashan Pune 6
24 Kidzee Kothrud Pune 5
25 Kidzee Warje Pune 4
26 Kidzee Sinhagad Road Pune 3
27 Kidzee Tingre Nagar Pune 4
28 Kidzee Marketyard Pune 4
29 Kidzee Baner Pune 5
30 Kidzee Bavdhan Pune 4
31 Kidzee Pashan Pune 6
32 Kidzee Magarpatta Pune 4
33 Kidzee Sinhagad Road Pune 5
34 Kidzee Hadapsar Pune 4
35 Kidzee Pashan Pune 4
36 Kidzee Hadapsar Pune 5
37 Kidzee Baner Pune 3
38 Kidzee Kalyani Nagar Pune 5
Little
39 Baner Pune 10
Millennium
Little
40 Kothrud Pune 7
Millennium
Little
41 Magarpatta Pune 3
Millennium
Little
42 Aundh Pune 10
Millennium
Little
43 Baner Pune 3
Millennium
44 Time Kids Baner Pune 4
45 T.I.M.E. Kids Magarpatta Pune 3
46 T.I.M.E. Kids Baner Pune 4
47 T.I.M.E. Kids Hadapsar Pune 3
48 T.I.M.E. Kids Kothrud Pune 5
The Learning
49 Baner Pune 3
Curve
The Learning
50 Aundh Pune 4
Curve
The Learning
51 Kothrud Pune 5
Curve
The Learning
52 Erandwane Pune 5
Curve
The Learning
53 Bavdhan Pune 3
Curve
Tree House
54 Kothrud Pune 3
Play Group
Tree House Deccan
55 Pune 3
Play Group Gymkhana
Tree House
56 Bhavani Peth Pune 4
Play Group
 Tree House
57 Koregaon Park Pune 4
Play Group
Tree House
58 Lulla Nagar Pune 5
Play Group
Tree House
59 Aundh Pune 6
Play Group
60 Shanti Junior Balewadi Pune 4
61 Shanti Junior Swargate Pune 3
62 Shanti Junior Yerwada Pune 6
63 Shanti Junior Aundh Pune 3
64 Smartkidz Karvenagar Pune 3
65 Bachpan Magarpatta Pune 5
• Development of questionnaire for Preschools:

Refer Annexure A: A specimen questionnaire for owners/managers or key

persons
Ketchen, J., David J., Short, J. C., & Combs, J. G. (2011) have given factors to be
considered while researching on franchising such as
f. Concept of opportunity recognition
g. Risk
h. Organisational size
i. Stage of organisational development.
j. Organisational autonomy[1]

They are duly included in the questionnaire.

Also the literature reviewed for journal articles and reports on franchising gave
inputs for designing of questionnaire.
• Pilot Survey:
A pilot survey was conducted foe checking the validity and reliability of the survey.
The number of respondents were randomly chosen as 20
• Reliability and Validity Test:
Majority of questions are showing the value of Chron bac Alfa test between the
range of 0.70 to 0.90, required minor changes to be made before finalising.
• Expert review:
The questionnaire was also been reviewed by experts and suggestions were
included.
Thus, the final questionnaire was prepared with some changes to pilot
questionnaire.
• Final Questionnaire:
The questions are from different areas. There are 35nquestions. The scaling used is
5 point Likert Scale for questions where it is suitable
Such questions are 16, 18 and 31
In addition, it reveals the Linkage to objectives and Hypotheses. In order to avoid
the chances of inclusion of irrelevant questions into the questionnaire. The details
are provided in the following table
Table 10. Composition of Aspects and Questions with linkages to objectives
and Hypotheses

Refer
Part
Main Aspects Sub Areas Question Objective Hypothesis
No
number
General
Information H1
about
I 1 to 6 Objective 1
Pre School
and Key H2(4,6d)
person

Organisational H1
II Start Up Stage 7 to 12 Objective 2
Management
H2(11)

Finance 13 to 18 Objective 2 H1

Organisation Base 19 and 20 Objective 2

Functional
III
Aspects
Human Resources
Issues(Recruitment 21 to 25 Objective 2
and training)

• Typology of Variables:
The typology of variables is significant for the data analysis and the selection of
statistical tool. The following table depicts the typology
 Table 11. Typology of Variables

Question
Variables Description
no.
1 preschool franchise information Text
2 preschool in business Numerical
3 preschool area Ordinal
4 preschool programme Nominal
5 class size Nominal
6 owner's profile Text
7 reasons for the preschool franchise Nominal
8 franchisor's selection criteria for franchisee Nominal
9 Legal formalities for the preschool Nominal
10 Franchise term Scale
11 Start up support Nominal
12 Start up challenges Nominal
13 Preschool investment Ordinal
14 fund management Ratio
15 Franchisor remuneration Nominal
16 satisfaction level for financial returns Scale
17 Payback period Ordinal
18 satisfaction about payback period Nominal
19 Corporate Strategy Nominal
20 organisation structure Nominal
21 recruitment of the staff Nominal
22 Training to the staff Nominal
23 training to teachers Nominal
24 training to supporting staff Nominal
25 training aspects Nominal
26 Systems in the Preschool Nominal
27 Franchisor support Nominal
Franchisor support in case of organising
28 Scale
and operations management
29 Marketing challenges at the start up stage Scale
Marketing challenges at the operations
30 Scale
stage
factors responsible for attracting
31 Scale
enrollment
 32 Targeted enrollment Scale
33 marketing efforts Nominal
34 Marketing support by the franchisor Nominal
35 Future expansion plans Nominal
preschool brand impact on the progression
36 Nominal
of the children

• Statistical Tools:
Appropriate Tools are used. In a tabular form the scrutiny of information is
presented. Similarly, the summary is presented at the end of analysis of responses
to each question.
The correlation between the organisational factors and marketing factors (7 Ps )
and growth are separately dealt with. The factor analysis is made for the purpose
for which MANOVA is used for presenting the results
The inferences are drawn after every question and which is followed by the
comments wherever felt necessary.
The hypothesis is tested in the light of analysis of primary data and MANOVA
results.
Thus, the method of research is appropriate in understanding the relationship
between organisational factors and marketing factors and the growth of the
preschool

4.4.2 Case Study

The franchised preschool is a recent phenomenon in India.

The school has different association with elements of education. The education so
far is considered as attending the school and learning from the inputs provided from
the teacher and the text books.
However, in this format of preschool the thrust is given on child development
during their formation stage which shall prepare the grounds for education and
learning in next future yeas of the child. Thus, this format considers many
psychological and physical factors in terms of development of skills and preparing
the child for all round learning and development.
The contents and methods are based on research in this area. They are very effective
in rendering the development as the very basis is of having more scientific and
systematic processes.
Thus, the feature of preschool cannot be judged well from the primary data or
interactions alone. The reason is that it gives the gross truth and reveals a general
scenario about the cause and effect relationship between organisational factors and
marketing factors of the preschool responsible for the growth of the preschool.
Considering the above facts, and in fulfillment of objectives of the study, the
researcher felt it pertinent to follow case study approach.
Similarly, the case study has some other benefits as
(a) It provides the views of providers as well as users
(b) It provides an empirical inquiry
(c) It investigates a phenomenon within its real life context
(d) It provides opportunities to analyze contextual conditions
The case study is known as a “A chunk of reality brought to the class room for
further analysis”
Therefore, the journey of a grown preschool is an important indicator to show how
the preschool has grown in different phases of the time.
The decision made should be appropriate and based on well informed situations.
The growth and success of a preschool depends on such decisions. The backbone
of such decisions is a good analysis.
The researcher referred a book,
Cases in Strategic Management authored by S. B. Budhiraja and M.B Athria
published by Tata McGraw-Hill.
The book provided good insights to the researcher to develop the case and what and
how part of the case development[2]
Similarly, the evidence chain is one of the fundamental part of the case study which
is generally related to certain documents
The researcher attempted to examine the following as a part of evidence chain
• Vision and Mission Statement
• Admission Brochure
 • Time table
• Minutes of the meeting
• Instruction Manual
• Attendance record
• Activity flow chart
• Medical Records
• Teaching Plan
• Progress Reports
• Parent feed back
Thus, the researcher selected a school in Aundh which is completing its 10th year
in 2015.
The brand and the school is not mentioned explicitly and names are also changed
because of confidentiality.
The several meeting was held with two sisters who are the owner’s as well key
persons in running the school. Also, discussions with the staff and parents were
done.
They were interacted according to their convenience and discussions were held to
understand the contents of the organisational and marketing factors, which impacts
the growth and success of the preschool.
The notes were taken from meeting to meeting and number of questions were asked
during the meetings.
They needed some time to answer as the retrospection was necessary for them to
recollect the situations.
For the better reading of the reader and as per conventions, the case is presented in
descriptive form.
The objective of case development was to understand the real life story and
relationship of organisational and marketing factors with growth and success. Also,
to understand start up process and challenges in operations. Thus this case provides
the micro level reality of a preschool which has grown well within the constraints.
The case is presented in a separate chapter and it boils down in its analytical form
in terms of listing of points in tables of
 a. Challenges
b. Decision Analysis
c. Growth factors
d. Impact of organisational factors with Growth
e. Impact of Marketing Factors with Growth
Thus, the case study provides a different angle to the study but the hypothetical
statements are not linked with it as it is truth of a particular preschool and
hypothetical statements are dealt with as the general truths.

4.5. Limitations of the study:

Every research has some kind of limitations. This context of the study has following
limitations
(a) The geographical area is limited to Pune City only while the outgrowth is much
rapid in suburban areas of Pune as it is growing very fast
(b) The preschools considered are only up to 2015
(c) The interactions with Teachers and Parents could not achieve the predetermined
numbers because of lack of time and confidentiality
(d) The respondents were reluctant in sharing of reports by the franchisor
(e) The promotional budget figures could not be obtained due to confidentiality
(f) The names of partners and the school could not be disclosed because of
confidentiality
The next chapter presents the case study.
References:
1. Ketchen, J., David J., Short, J. C., & Combs, J. G. (2011). Is Franchising
Entrepreneurship? Yes, No, and Maybe So. Entrepreneurship Theory and Practice,
35(3), 583–593. https://doi.org/10.1111/j.1540-6520.2011.00442.x
2. Cases in Strategic Management by M. Athreya,S. Budhiraja,S. Mudhiraja: Tata
McGraw-Hill Education Pvt. Ltd. 9780074620977 Softcover, First edition. -
BookVistas. (n.d.).
3. Research Methodology: Methods and Techniques - C. R. Kothari - Google Books.