Southeast Business School

BBA Program
Business Research BUS 3122 + Business Research and Methodology BUS311

Course Contents:

1. Research Methodology: An Introduction

2. Defining the Research Problem

3. Research Design

4. Sampling Design

5. Measurement and Scaling Techniques

6. Methods of Data Collection

7. Processing and Analysis of Data

8. Sampling Fundamentals

9. Testing of Hypotheses

10. Chi-square Test

11. Interpretation and Report Writing

Recommended Book: Research Methodology Methods and Techniques by C. R. Kothari; Published: New
age International Publishers.
Research Methodology: An Introduction

Research and Scientific Method

For a clear perception of the term research, one should know the meaning of scientific method.
The two terms, research and scientific method, are closely related. Research, as we have already
stated, can be termed as “an inquiry into the nature of, the reasons for, and the consequences of
any particular set of circumstances, whether these circumstances are experimentally controlled or
recorded just as they occur. Further, research implies the researcher is interested in the
repeatability of the results and in their extension to more than particular results; he is interested
in the repeatability of the results and in their extension to more complicated and general
situations”. On the other hand, the philosophy common to all research methods and techniques,
although they may very considerably from one science to another, is usually given the name of
scientific method. In this context, Karl Pearson writes, “ The scientific method is one and same
in the branches (of science) and that method is the method of all logically trained minds…the
unity of all sciences consists alone in its methods, not its material; the man who classifies facts of
any kind whatever, who sees their mutual relation and describes their sequences, is applying the
Scientific Method and is a man of science”. Scientific method attempts to achieve “this ideal by
experimentation, observation, logical arguments from accepted postulates and a combination of
these three in varying proportions”. In scientific method, logic aids in formulating propositions
explicitly and accurately so that their possible alternatives become clear. Further, logic develops
the consequences of such alternatives, and when these are compared with observable
phenomena, it becomes possible for the researcher or the scientist to state which alternative is
most in harmony with the observed facts. All this is done through experimentation and survey
investigations which constitute the integral parts of scientific method.

Experimentation is done to test hypotheses and to discover new relationships. If any, among
variables. But the conclusions drawn on the basis of experimental data are generally criticized
for either faulty assumptions, poorly designed experiments, badly executed experiments or faulty
interpretations. As such the researcher must pay all possible attention while developing the
experimental design and must state only probable inferences. The purpose of survey
investigations may also be to provide scientifically gathered information to work as a basis for
the researchers for their conclusions.
 Research: It means systematic and scientific search for new facts in any branch of
knowledge.
-To find something new.
-To establish well believed thoughts and facts.

Research is a systematic method of defining a problem, formulating a hypothesis,

collecting the facts or data, analyzing the facts, and reaching certain conclusions either in
the form of solutions of the problem or generalization of some theoretical formulations.
-Search for knowledge
-Scientific investigation
-Gaining new knowledge
-From known to unknown world.

Scientific method is the pursuit of truth as determined by logical considerations. The

ideal of science is to achieve a systematic interrelation of facts.

The scientific method is, thus, based on certain basic postulates which can be stated as under:

1. It relies on empirical evidence;

2. It utilizes relevant concepts;
3. It is committed to only objective consideration;
4. It presupposes ethical neutrality, i. e., it aims at nothing but making only adequate and
correct statements about population objects;
5. It results into probabilistic predictions;
6. Its methodology is made known to all concerned for critical scrutiny are for use in testing
the conclusions through replication;
7. It aims at formulating most general axioms or what can be termed as scientific theories.

Objectives of Research:
1. To gain familiarity with a phenomenon or to get new insight into it.
2. To portray accurately the character of an individual or an object or a situation or a group.
3. To determine the intensity of matters through frequency which is associated with something
else.
4. To test the hypothesis of a causal relationship between variables.
5. To relate findings to management decisions:
 Policies, objectives are interactive elements and feedbacks are necessary in
decision making.
 Problem must be described and the decision must be given.
 Managers must know how to solve problems.
 Given the alternatives, managers must narrow down to most possible course of
actions.
 Types of Research

1. Descriptive Vs. Analytical Research:

Descriptive: It includes surveys and fact findings inquiries of different kinds.
 To describe things as they are
 No control over the situation

Example: Shopping preference of people

Analytical: The researcher has to use facts or information already available, analyze these to
make a critical evaluation.

2. Applied Research Vs. Fundamental Research:

Applied research: It is an action oriented research. It aims at finding a solution for an immediate
problem facing a society or an organization.
Fundamental research: Generation and formulation of theories-Human behavior, Management
principles and leadership style etc.

3. Quantitative Vs. Qualitative Research:

Quantitative Research: Can be expressed in quantitative terms.
Qualitative Research: It is specially important in behavioral science where we want to find
motives of human behavior.

4. Conceptual Vs. Empirical Research:

Conceptual: [It is related with something abstract-philosophy and thinkers.]

Empirical research: It is one when proof is needed to justify that certain variables affect a
different variable or function.
 Criteria of good Research

1. The purpose of research should be clearly defined.

2. The research procedure should be described in detail so that other researcher can repeat the
research for further advancement, keeping the continuity of what has already been done.
3. Research design should be carefully planned to yield objective results.
4. The procedural limitations should be mentioned.
5. The analysis of data should be sufficiently adequate to reveal it significance and methods of
analysis should be appropriate.
6. The validity and reliability of data should be checked carefully.
Validity: it must measure what it is supposed to measure.
Reliability: Consistent results in repeated studies.
8. Its presentation should be logical and systematic.
9. It should be empirical and replicable.

Steps in Research Method

1. To formulate the research problem.
2. To do extensive literature survey.
3. To develop hypothesis.
4. To prepare the research design.
5. To determine the sample design.
6. To determine methods of collecting data.
7. To analyze data.
8. To test hypothesis.
9. To interpret the results.
10. To prepare the report and follow through.

Defining the Research Problem

Research Problem: A research problem refers to the difficulty that a researcher experiences in the
context of theoretical or a practical situation and wants to obtain a solution for it.
 Conditions
1. There must be an individual or a group that has some problem.
2. There must be some objectives to be attained.
3. There must be alternative means of attaining the objectives.
4. There must remain some doubt in the mind of researcher regarding the alternatives.
5. There must be some environment to which the difficulty pertains.

Selecting the Problem (Topic)

1. Subject on which a lot of research has already been done, should not be chosen.
2. The topic must be familiar to the researcher and be feasible.
3. The importance of the subject, qualifications and training of the researcher, the cost and
time must be considered.
4. The selection of the topic must be preceded by preliminary study.

Techniques involved in defining a Problem

1. Statement of the problem in a general way.
2. Understanding the nature of the problem.
3. Surveying the available literature.
4. Developing the idea through discussion.
5. Rephrasing the research problem.

Research Design
Research Design: A research design is the pattern or an outline of a research projects workings.
It is a statement of only the essential elements of a study that will provide the basic guidelines for
the details of the project.

It comprises a series of prior decisions that, taken together, provide a master plan. The decision
areas could be in respect of:

1. Contents:
1. What is the study about?
2. Why is the study important?
3. Where should be the area of operations?
4. What type of data would be required?
5. Where can the required data be found?
6. Cost of project.
7. Period of time.
8. Sample design.
9. Techniques of data collection
10. Methods of analyzing data.
11. Way of preparing report.

B. The above queries can be placed into four groups:

(a) The Sampling Design.
(b) Observational Design. (Conditions under which observation is to be made.)
(c) Statistical Design (How many items are to be observed and how data be analyzed.)
(d) Operational Design: (How the procedure that has been specified in the above should
be carried out.

C. Important Features of Research Design:

(1) It must include a plan: That will specify the sources and types of information relevant
to the research problem.
(2) It must include a strategy: It will specify the approach can be used for gathering and
analyzing data.
(3) It must include the time and cost budget: Since most studies are done under these
constraints.

D. Factors that must be considered for developing a research design:

(1) The objectives of the problems to be studied.
(2) The nature of the problem to the studied.
(3) The availability and skills of the researcher and his staff.
(4) The means of obtaining information.
(5) The availability of time and money for the research work.

E. Benefits of Research Design:

(1) It serves as a bridge between research objective and course of action to be taken to attain
objectives.
(2) It works as a search light of Research work:

May have foggy notions.

All things cannot be memorized.
Sequence of actions may be disrupted.

(3) It provides Specific details of Research work:

1. What data are needed.
2. Weather there is any confusion or irrelevancy in data or findings.

(4) It provides a linkage between expectations and findings of the study (on the basis of
hypothesis.)
F. Major types of Research Design:
(1) Descriptive (2) Experimental (3) Quasi experimental.

1. Cross sectional
Descriptive
2. Focus group

(2) Quasi Experimental:

(a) One shot case study
(b) One group pre-test and post test design.
(c) Longitudinal design.
(d) Static group comparison design.
(e) Simulation.

Sampling Design:
A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to
the techniques or procedures the researcher would adopt in selecting some samples from which
inferences about the population is drawn.

Characteristics of a Good Sampling Design:

1. It must result in a truly representative sample.
2. It must lead to small sampling errors.
3. It must be supported by the available time & funds for research.
4. It must control systematic bias in a better way.
5. It should be selected in a way that the results can be applied in general for the universe
with a reasonable level of confidence.

Steps in Sampling Design

1) To decide about the type of the universe (finite/infinite heterogeneous/homogenous etc)
2) To decide the sampling units (house hold, union, village etc.)
3) To decide the sampling frame (Source list)
4) To decide the size of sample.
5) To decide the parameters of interests.
6) To decide the budgetary constraints.
7) To decide the specific sampling procedures.

Sampling Error: It is the random variations in the sample estimates around the true
population parameters.
Non-sampling Error: Any error that may result from the sampling procedure itself or from
the sample survey, other than the sampling error is called non-sampling error.

Causes of Non Sampling Error:

(1) In appropriate sampling frame.
(2) Defective measuring device.
(3) Indeterminacy principle (test with/without informing)
(4) Natural bias in reporting data.
(5) Actual lying by the respondents.
(6) Poor sampling design.
(7) Misinterpretation of questions due to ambiguous wording.
(8) Incomplete answers.
(9) Coding errors.
(10) Editing errors.

How to Reduce It:

(1) To keep the sample survey as easy to execute as possible.
(2) To use smallest size consistent with the objectives of the study.
(3) To restrict the questionnaire to data that are essential to the main issue.
(4) To pre-test the questionnaire.
(5) To make sure that no question is asked to the respondent they he/she can’t answer.
(6) To train up investigators.
(7) To use alternative method of testing.
(8) To be careful while editing and coding of data.
(9) To use appropriate statistical techniques to analyses data.

Types of sampling:
1. Purposive or biased sampling.
2. Probability or random sampling.
3. Pure random sampling.
4. Restricted random sampling.
5. Stratified sampling.
6. Cluster sampling.
7. Multi-stage sampling.
8. Systematic sampling.

Advantages of sample survey compared to census survey:

1. It saves time.
2. It saves money and other resources.
3. It is useful in statistical quality control.
4. It is the only means to obtain information when the size of the population is infinite or
unknown.
5. It is more reliable than population survey.
6. It is highly useful in case of destructive and highly expensive tests.
Questionnaire Design:

Questionnaire: Questionnaire is a formal set of questions that may be asked to a potential

respondent to record specified and relevant information with reasonable accuracy and
completeness.

Precautions that should be taken in preparing a questionnaire:

1. There should be as few questions as possible in a questionnaire.
2. The questions should be prepared in most common and simple terms.
3. There should not be biasness in the questions of a questionnaire.
4. There should not be any leading question in a questionnaire.
5. Three should be sufficient check and balance in the questions and balance in the
questions.
6. Questions should be logically arranged.
7. Questions should be prepared in a way so that answers can be given easily.
8. There should be sufficient instructions for answering questions.
9. Every questionnaire should a company a forwarding letter.
10. The overall design of the questionnaire should be attractive and appealing.

Functions of a Questionnaire:
1. To give the respondent a clear comprehension of the questions.
2. To induce the respondent so that he/she extends cooperation and become certain about the
confidentiality of the information.
3. To stimulate responses through greater introspection.
4. To give instructions on what is wanted, and the manner of responding.
5. To identify what needs to be known to classify and verify the interview.

Factors to be considered Before Designing the questionnaire:

1. To Determine the Specific Data to be Sought. [What exactly to be

measured.]
-Is it relevant?
-Will it be contributing to ultimate analyses?
-How variables measured are going to be used?

2. To Determine the Interviewing Process

i) Telephone (ii) Mail survey iii) Personal interview
-Structured
-Unstructured

3. To Evaluate the Questions Content:

 Does the respondent understand the questions?
  Does the respondent have the necessary information to answer the questions?
 Will the respondent provide the necessary information?

4. To determine the Question/Response Format

(A) Open ended (B) Closed ended
(A) Open ended
i) Free response
ii) Probing (asking addition clues or questions)
iii) Projective Techniques

B) Close ended
i) Dichotomous (Two types of answers)
ii) Ranking
iii) Multiple choice
iv) Scales
v) Cheek list (one or more response is possible)

5. To Determine the Wording of Questions

 Simple
 Familiar vocabulary
 Avoid lengthy questions
 Be specific
 Avoid double barreled questions
 Avoid estimates
 Avoid leading questions
 Avoid loading questions (unbalanced set of answers)

6. To Determine the Questionnaire Structure

It is the art of determining the sequence of questions in which the various subjects should
appear on the questionnaire.
 The structure should give the impression that the survey is vitally important.
 The respondent should feel free and secure in responding.
General guidelines
(a) Opening Questions or Lead in Questions:
(i) Should be tactfully selected (ii) Should be easy to answer (iii) not too personal (iv)
should help building rapport.
(b) Qualifying Questions:
To find out whether the person is the right one to answer the questions.
(c) Warm up Questions:
These are necessary to help thinking about the issue and recollect from memory.

Example: When was the last time you used yogurt? Was it plain, flavored or colored?
 (d) Specific Questions: The real information that is sought from the
researcher:

Example: What was the occasion when you first ate yogurt? Did you select if for your or
someone else selected it for you?

(e) Demographic Questions:

Overall identify or description of the person who responded.

7. To Determine the Physical Characteristics of the Form.

8. To do Pretest so that Final Design Can be Made.

Layout of a Research Report

A. Preliminary Pages
B. Main Text
C. End Matters

A. Preliminary Pages include:

i) Title of the report
ii) Acknowledgement
iii) Preface
iv) Table of contents
v) List of Tables/Graphs/Charts

B. Main Text
i) Introduction ii) Statement of the Problem.
iii) Objectives iv) Methodology
vi) Major analysis and results vi) Statement of findings and recommendations
vii) Implications of the results viii) The summary

C. End Matters
i) Appendix (Questionnaire, Calculations, important documents)
ii) Bibliography and References.