OPERATIONS RESEARCH for Business Management by Lorma S.L.

San Pedro COPYRIGHT 2017

Quantitative and Qualitative Techniques in Business Management

Learning Objectives:
- Define and differentiate qualitative and quantitative approach.
- Recognize the use of qualitative and quantitative methods of research,
- Understand the application and importance of the two approaches as techniques in doing
research,
- Identify the advantages and disadvantages of qualitative and quantitative research methods,
- Discover which method to use as research instrument,
- Enumerate the functions of quantitative techniques,
- Specify the uses of quantitative techniques,
- Identify the classifications of quantitative techniques.

1.1 Introduction
In the business enterprise, and in fact, in basically almost every facet of daily activities and
endeavors, quantitative techniques are utilized to support and corroborate in the assessment,
evaluation, and decision making that could help managers envisage potential, imminent business
conditions, allowing them to modify their tactics and approach as deemed necessary.

Since people with different focus and objectives have different ways of looking at a situation, and as
a potential consequence of the inability or failure to ascertain attributes of relevance, the diligent
application and treatment of statistics, and other quantitative techniques was developed.

Quantitative techniques may be defined as those methods or procedures which offer the decision
maker a methodical and formidable means of analysis, based on quantitative date.
- It is measurable, systematic and precise tactic used for solving current situations in an
organization.
- With the aid of quantitative techniques, it is made possible to explore several strategies and
choosing one that is best appropriate for attaining the predetermined objectives.
- Quantitative techniques may even provide a glimpse of what could happen in the future based
on historical data, if there’s any.

Qualitative research, on the other hand, is most often used as exploratory research. The most
common form of qualitative research are interviews, focused group discussion (FGD), and
uninterrupted observations.
- It is used to further explain certain things. It is not numerical, not measurable, and cannot be
used to make generalizations.

1.2 Quantitative or Qualitative – What Method to Use?

Research, by and large, falls into two major methodological categories:

Qualitive Quantitive

1.3 Qualitative Research/Technique

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OPERATIONS RESEARCH for Business Management by Lorma S.L. San Pedro COPYRIGHT 2017

Qualitative Research / Technique is an exhaustively, in-depth and profound exploration of what people
think, feel or do and, more importantly, why.

- You may try to justify things based on your own observations and opinions. While some may
consider this biased especially if you are not objective in dealing with your judgments,
qualitative research is still an important part of a study.
- The opinions of “experts” in focused group discussions (FGD) could unearth vital information not
covered by statistics.
- If you want to discern why your students (school) or staff (work) behave as they do and what
obstacles or impediments there may be to their altering that behavior, your would use
qualitative research to look at those concerns.
- Qualitative research does not give statistically vigorous results and conclusions. But for it to be
effective, one’s judgment should not be clouded by emotions and subjective line of reasoning.

The most frequently used qualitative approaches are Focused Group Discussions (FGD) an in-depth
interviews. It adheres to a semi-structured discussion guide to make certain that most important subject
matters and issues are taken into consideration and the discussion will continue to remain relevant.
Guided questions were often used to cover all significant areas of concern.

The participants in the focused group discussion should be those that are familiar and expert in their
respective areas of endeavor to ensure quality responses. the views and opinions of all the participants
would pose a significant outcome in the study.

1.4 Quantitative Research/Technique

Quantitative Research/Technique provides a rate of assessment as to how many people assume, think,
consider or perform in a certain manner and utilizes statistical analysis to establish and verify the results.

A structured questionnaire with mostly closed questions, wherein the respondents choose their answers
from the given specified lists of potential responses. a variety of question styles may be used.

1.5 Likert Scale

Likert scale is one of the most widely used approach to scaling responses in survey research. .

- Respondents may be represented with a choice of around five to seven or even more pre-coded
responses with the neutral point being neither agree nor disagree.
- It is used to allow the individual to convey how much they support or oppose a particular
statement by choosing one option that best aligns with their view.

Likert scale is used in surveys to measure satisfaction, likelihood, frequency, quality, and more. A
common form is an assertion, with which the person may agree or disagree to varying degrees.

- A “Likert scale” is the sum of responses to several Likert items.

- In scoring, numbers are usually assigned to each option. A “Liker item” is a statement that the
respondent is expected to assess in a study.

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OPERATIONS RESEARCH for Business Management by Lorma S.L. San Pedro COPYRIGHT 2017

- In a “good” Likert scale, the range is an equilibrium on both sides of a neutral preference that
would ultimately generate a less biased measurement. The actual scale labels, as well as the
numeric scale itself, may vary.

1.6 Advantages and Disadvantages of Using Likert Scale

Advantages:

1. Questions used are generally uncomplicated, simple, and easy to understand and so lead to
consistent responses.
2. It is relatively handy and constructive for evaluating a respondent’s opinion of significant
approval in terms of purchasing, product, or satisfaction features. With these, the scores can be
used to design a chart of the distribution of opinion across the population.

Disadvantages:
1. Only a small number of options are offered, with which respondents may not entirely approve.
2. A dilemma can take place where respondents may turn out to be influenced or persuaded by the
way they have answered previous questions.

1.7 Reporting on Likert Scales

The conventional approach to report on a Likert scale is to calculate the aggregate values of each
chosen option and generate a count for each respondent. This score is then used to correspond to a
definite attribute or feature – satisfied or dissatisfied, agree or disagree.
As with any other dimension of measurement, the selection should be a cautiously chosen series
of questions or statements that perform collectively to provide a functional and logical representation.
Essential point to keep in mind: for the result to have worth or sense, every entry in the scale
should be closely associated to the same theme.
- Ideally, in a Likert scale question, each and every one of the items will be downright parallel so
that the computed score turns out to be a reliable and dependable measurement of the distinct
behavior or psychological feature you are trying to measure.
- Assuming there’s an item on the scale that doesn’t fit, the overall score for the respondent
becomes potentially impaired. You might end up compromising results and/or having difficulty
deciphering the results.
The outcome of the study might also have a domino effect on the other issues of the study. Therefore,
avoid asking questions that are misleading, deceptive, or ambiguous.

1.8 When to Use Likert Scales

This is a very constructive and practical question style when you desire to obtain an overall
measurement of reaction surrounding a specific theme, subject, issue, opinion, or experience and to also
bring together certain information and statistics on factors that contribute to that sentiment.

In summary, Likert scale is:

- It is psychometric range customarily required in research study that makes use of questionnaires.
- It is the most widely used approach to scaling responses in survey research.
- It is a non-comparative scaling technique and are one-dimensional in nature.
- Respondents specify their level of agreement or disagreement on a symmetric scale for a series
of questions.
- The range captures the intensity of their feelings for a given item.

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OPERATIONS RESEARCH for Business Management by Lorma S.L. San Pedro COPYRIGHT 2017

- The results of analysis of multiple items reveal a pattern that has called properties of the kind
Likert identifies.

Likert scales may look like any of the following:

Strongly Disagree Disagree Undecided Agree Strongly Agree

(1) (2) (3) (4) (5)

Strongly Disagree Slightly Slightly Agree Agree Strongly Agree

Disagree Disagree
1 2 3 4 5 6

50% Negative 50% Positive

Mobile phone use in on-campus computer labs should be prohibited

1 2 3 4 5
Strongly Disagree Mildly Disagree Neutral Mildly Agree Strongly Agree

Extremely Very Quite Somewhat Unimportant No opinion

important important important important
Be held in high regard 0 0 0 0 0 0
Be ambitious 0 0 0 0 0 0
Be independent 0 0 0 0 0 0
Seeking thrills 0 0 0 0 0 0
Having children 0 0 0 0 0 0

# Question 1 2 3 4 5

1 You Financial Situation ⃝ ⃝ ⃝ ⃝ ⃝

2 Your Appearance ⃝ ⃝ ⃝ ⃝ ⃝

Likert Scales

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OPERATIONS RESEARCH for Business Management by Lorma S.L. San Pedro COPYRIGHT 2017

Please circle the number that represents how you feel about the computer software you have been
using.

I am satisfied with it
Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
It is simple to use
Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
It is fun to use
Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
It does everything I would expect it to do
Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
I did not notice any inconsistencies as I use it
Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree
It is very user friendly
Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree

Likert-Type Scale Response Anchors

Citation: Vagias, Wade M. (2006). Likert-Type Scale Response Anchors. Clemson International Institute
for Tourism and Research Development, Department of Parks, Recreation and Tourism Management.
Clemson University.

Level of Acceptability Level of Appropriateness

1. Totally unacceptable 1. Absolutely inappropriate
2. Unacceptable 2. Inappropriate
3. Slightly unacceptable 3. Slightly inappropriate
4. Neutral 4. Neutral
5. Slightly acceptable 5. Slightly appropriate Appropriate
6. Acceptable 6. Absolutely appropriate
Level of Importance Level of Agreement
1. Not at all important 1. Strongly disagree

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OPERATIONS RESEARCH for Business Management by Lorma S.L. San Pedro COPYRIGHT 2017

2. Low importance 2. Disagree

3. Slightly important 3. Somewhat disagree
4. Neutral 4. Neither agree or disagree
5. Moderately important 5. Somewhat agree
6. Very important 6. Agree
7. Extremely important 7. Strongly agree

Knowledge of Action Reflect Me?

1. Never true 1. Very untrue of me
2. Rarely true 2. Untrue of me
3. Sometimes but infrequently true 3. Somewhat untrue of me
4. Neutral 4. Neutral
5. Sometimes true 5. Somewhat true of me
6. Usually true 6. True of me
7. Always true 7. Very true of me

My Beliefs Priority
1. Very untrue of what I believe 1. Not a priority
2. Untrue of what I believe 2. Low priority
3. Somewhat untrue of what I believe 3. Sometimes priority
4. Neutral 4. Neutral
5. Somewhat true of what I believe 5. Moderate priority
6. True of what I believe 6. High priority
7. Very true of what I believe 7. Essential priority

Level of Concern Priority Level

1. Not at all concerned 1. Not a priority
2. Slightly concerned 2. Low priority
3. Somewhat concerned 3. Medium priority
4. Moderately concerned 4. High priority
5. Extremely concerned 5. Essential

Level of Problem Affect on X

1. Not at all a problem 1. No affect
2. Minor problem 2. Minor affect
3. Moderate problem 3. Neutral
4. Serious problem 4. Moderate affect
5. Moderate affect

Level of Consideration Level of Support/Opposition

1. Strongly oppose 1. Not probable
2. Somewhat oppose 2. Somewhat improbable

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OPERATIONS RESEARCH for Business Management by Lorma S.L. San Pedro COPYRIGHT 2017

3. Neutral 3. Neutral
4. Somewhat favor 4. Somewhat probable
5. Strongly favor 5. Very probable

Level of Probability Level of Agreement

1. Not probable 1. Strongly disagree
2. Somewhat improbable 2. Disagree
3. Neutral 3. Neither agree or disagree
4. Somewhat probable 4. Agree
5. Very probable 5. Strongly agree

Level of Desirability Level of Participation

1. Very undesirable 1. No, and not considered
2. Undesirable 2. No, but considered
3. Neutral 3. Yes
4. Desirable
5. Very desirable]

Frequency – 5 point Frequency

1. Never 1. Never
2. Rarely 2. Rarely
3. Sometimes 3. Occasionally
4. Often 4. A moderate amount
5. Always 5. A great deal

Frequency of Use Frequency – 7 point

1. Never 1. Never
2. Almost never 2. Rarely, 10% of the chances when I could have
3. Occasionally / Sometimes 3. Occasionally, in about 30% of the chances when
I could have
4. Almost every time 4. Sometimes, in about 50% of the chances when
I could have
5. Frequently, in about 70% of the chances when I
could have
6. Usually, in about 90% of the chances when I
could have
7. Every time

Amount of Use Level of Familiarity

1. Never use 1. Not at all familiar
2. Almost never 2. Slightly familiar
3. Occasionally/Sometimes 3. Somewhat familiar

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4. Almost every time 4. Moderately familiar

5. Frequently use 5. Extremely familiar

Level of Awareness Level of Difficulty

1. Not at all aware 1. Very difficult
2. Slightly aware 2. Difficulty
3. Somewhat aware 3. Neutral
4. Moderately aware 4. Easy
5. Extremely aware 5. Very easy

Likelihood Level of Detraction

1. Extremely unlikely 1. Detracted very little
2. Unlikely 2. Neutral
3. Neutral 3. Detracted very much
4. Likely
5. Extremely likely

Good/Bad Barriers
1. Very negative 1. Not a barrier
2. Neutral 2. Somewhat of a barrier
3. Very positive 3. Moderate barrier
4. Extreme barrier

Level of Satisfaction – 5 point Level of Satisfaction – 5 point

1. Very dissatisfied 1. Not at all satisfied
2. Dissatisfied 2. Slightly satisfied
3. Unsure 3. Moderately satisfied
4. Satisfied 4. Very satisfied
5. Very satisfied 5. Extremely satisfied

Level of Satisfaction – 7 point Level of Quality – 5 Point

1. Completely dissatisfied 1. Poor
2. Mostly dissatisfied 2. Fair
3. Somewhat dissatisfied 3. Good
4. Neither satisfied or dissatisfied 4. Very good
5. Somewhat satisfied 5. Excellent
6. Mostly satisfied
7. Completely satisfied

Comparison of Two Level of Quality – 5 Point Level of Influence

1. Completely dissatisfied 1. Poor 1. Not at all influential

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2. Mostly dissatisfied 2. Fair 2. Slightly influential

3. Somewhat dissatisfied 3. Good 3. Somewhat influential
4. Neither satisfied or dissatisfied 4. Very good 4. Very influential
5. Somewhat satisfied 5. Excellent 5. Extremely influential
6. Mostly satisfied
7. Completely satisfied

Sample size is vital for quantitative research. Thirty (30) is generally held to be the standard, acceptable
minimum number of responses for any area of interest though a larger sample size will generate more
reliable data.
- Tables and graphs may be used to present a summary of report or presentation of the findings of
the study.

In quantitative approach, discussion and analysis of the findings are all supported by statistics. While
research methods are divided largely into quantitative and qualitative methods, which you prefer to use
will generally depend on your research questions, your fundamental philosophy of research, and
probably your partiality, inclination, and skills.
- In reality, a combination of both qualitative and quantitative approach may be used concurrently
in one study.

1.9 Decision Making Process

Quantitative Analysis Approach
Quantitative analysis is a business or financial analysis technique that seeks to understand behavior by
using complex mathematical and statistical modeling, measurement and research. By assigning a
numerical to variables, quantitative analysts try to replicate reality mathematically.

Qualitative Analysis Approach

Involves the exploration of factors in a decision-making problem that cannot be quantified or stated in
mathematical terms of formulas. The results are descriptive rather than predictive.

1.10 Advantages of Qualitative Research

This form of research looks at framework and group connotations and how it influences and affects
individuals, which is most applied and beneficial particularly in the fields of social science.
- It may be practical in the initial stages of a study.
- It does not require a strict design plan before its execution.
- It allows the researcher to gather data in ways such as comprehensive written descriptions
through ample observations.
When applied after quantitative research, it is further give clarifications based on dialogues generated
from interviews seeking “expert” opinions.
- Researchers have the freedom to ask questions and let answers unfold naturally.
- It therefore obtains a holistic picture of the study.
- Moreover, it provides rich discussion and yields results based on actual cases without controlling
variables to deal with.

1.11 Disadvantages of Qualitative Research

Since explicit dimensions are not the focus of this type of research, biased interpretation of the
researcher is often the dilemma. Researchers have the tendency to be subjective rather than objective.

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- This is especially true when the researcher is bent on proving something.

- His mind and interpretation of things might be conditioned and some other factors might not
even be considered.

1.12 Advantages of Quantitative Research

Researcher is more objective in carrying out the findings of the research. It is statistical, therefore,
measurable.
- Analysis is based on the results generated by the study.
- The relationship, like cause and effect, between the dependent and independent variables may
be studied in detail.
- It can be used to test hypothesis.
- The use of random assignments when choosing participants for the study promotes objectivity
and allows the researcher to make inferences and assessments about the issue(s) of the study.

1.13 Disadvantages of Quantitative Research

Results generated in quantitative research are not inevitably valid or appropriate to comparable
phenomena found in reality since it is conducted in a “laboratory” setting.
- The context of the study may be ignored. Also, for quantitative research to be more statistically
accurate, a large sample must be considered to at least cover all areas of consideration in
different perspectives.
- The study also would rely on how truthful the participants conveyed their response in answering
questions provide in the study.

1.14 Functions of Quantitative Techniques

- To facilitate the decision-making process.
- To provide tools for scientific research.
- To help in choosing an optimal strategy.
- To enable in proper deployment of resources.
- To help in minimizing costs.
- To help in minimizing the total processing time required for performing a set of jobs.
- To help strategize based on objectives.

1.15 Uses of Quantitative Techniques

1. Quantitative techniques of linear programming is used for optimal allocation or distribution of
scarce resources in the problem of determining product mix that is deemed to be most
favorable.
2. Inventory management and control techniques are useful in deciding when and how much items
to procure or so as to sustain a balance with reference to holding cost and the cost of ordering
for supply purposes.
3. Quantitative techniques of CPM, and PERT facilitates in establishing the earliest and the latest
times for the events and activities a project. This aids management in accurate and suitable
allocation and utilization of available and needed resources.
4. Decision tree analysis and simulation technique assists management in captivating the best
probable option or course of action under the provisions of risks and uncertainty.
5. Queuing theory is employed to reduce the cost of waiting and servicing of the clients/customers
in queues.Mathematical Statistical Programming
6. Replacement theory makes it easier
Quantitative for managementQuantitative
Quantitative with respect to deciphering the most
practical substitute,
Techniquesalternate and replacement
Techniques policy. Techniques
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1.16 Classification of Quantitative Techniques

When solving a mathematical

puzzle, recognize that a variable can
correspond and denote an unknown
number, or, depending on the rationale
at hand, any number in a particular
array.
Acknowledge a statistical query
as one that foresees variability in the
facts and figures associated to the
question and relates for it in the
answers.

1.17 Quantitative Analysis Approach

+*/- Quantitative Analysis Approach

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OPERATIONS RESEARCH for Business Management by Lorma S.L. San Pedro COPYRIGHT 2017

1. Define the Problem

o Must be clear, concise, specific.
2. Develop a Model
o Must be solvable, realistic, easy to understand & modify.
3. Acquire Data
o Could be sourced from company reports, documents.
4. Interviews and Statistical sampling and Develop a Solution
5. Should be practical and implementable and Test the Solution
6. Determine accuracy and consistency and Analyze the Results and Perform Sensitivity Analysis
7. Implement Results and Monitor the Results

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