BUSINESS RESEARCH METHODS P23MST205

UNIT III MEASUREMENT AND SCALING TECHNIQUES

Data Collection: Primary and Secondary data Primary data, collection methods: Observations, survey, Interview
and Questionnaire, Qualitative Techniques of data collection, Questionnaire design: process of designing
questionnaire, Secondary data: Sources advantages and disadvantages, Measurement and Scaling Techniques:
Basic measurement scales-Nominal scale, Ordinal scale, Interval scale, Ratio scale.

I. Data Collection
A. Primary Data
1. Definition and Importance
2. Collection Methods
a. Observations
* Types of Observations (Participant, Non-Participant)
* Advantages and Disadvantages
* Structured vs. Unstructured Observations
b. Survey
* Types of Surveys (Online, Phone, Mail, In-Person)
* Advantages and Disadvantages
* Sampling Techniques
c. Interview
* Types of Interviews (Structured, Semi-Structured, Unstructured)
* Advantages and Disadvantages
* Interviewing Techniques
d. Questionnaire
• Definition and Purpose
• Advantages and Disadvantages
• Questionnaire Design (Detailed)
• Process of Designing a Questionnaire
• Defining Objectives
• Determining Question Content
• Choosing Question Format (Open-Ended, Closed-Ended)
• Question Wording and Sequencing
• Pilot Testing and Revision
* Layout and Presentation
3. Qualitative Techniques of Data Collection
* Focus Groups
* Case Studies
* Ethnography
* Content Analysis
* Advantages and Disadvantages of Qualitative Data Collection
B. Secondary Data
1. Definition and Importance
2. Sources of Secondary Data
* Internal Sources (Company Records, Reports)
* External Sources (Government Publications, Industry Reports, Academic Databases, Online Databases)
3. Advantages of Secondary Data
4. Disadvantages of Secondary Data
5. Evaluation of Secondary Data (Reliability, Validity, Relevance)
II. Measurement and Scaling Techniques
A. Basic Measurement Scales
1. Nominal Scale
2. Ordinal Scale
3. Interval Scale
4. Ratio Scale
5. Comparison of Scales and Appropriate Applications

DATA COLLECTION
When conducting research, data collection is a fundamental step. It's essential to understand the
distinction between primary and secondary data, as they play different roles in the research
process.
Primary Data:
• Definition:
o Primary data is information collected firsthand by the researcher for a specific
research purpose. It's original data gathered directly from the source.
• Characteristics:
o Original and first-hand.
o Collected for a specific research question.
o Can be more time-consuming and expensive to collect.
• Methods of Collection:
o Surveys (questionnaires)
o Interviews (structured, semi-structured, unstructured)
o Observations (participant, non-participant)
o Experiments
 o Focus groups
Secondary Data:
• Definition:
o Secondary data is information that has already been collected by someone else for a
different purpose. Researchers use existing data sources.
• Characteristics:
o Already exists.
o Collected for a different purpose.
o Generally more readily available and less expensive.
o Can save time and resources.
• Sources of Collection:
o Government publications (e.g., census data)
o Academic journals and research papers
o Books and periodicals
o Online databases
o Company records
o Reports from organizations
Key Differences:
• Origin:
o Primary data is original, while secondary data is pre-existing.
• Purpose:
o Primary data is collected for a specific research question, while secondary data was
collected for other purposes.
• Cost and Time:
o Primary data collection is typically more expensive and time-consuming than
secondary data collection.
• Control:
o With primary data, the researcher has control over how the data is collected. With
secondary data the researcher has no control over the collection methods.
When to Use Each:
• Primary data:
o When the research question requires specific, tailored information.
o When existing data is insufficient or unavailable.
o When control over data collection is essential.
• Secondary data:
o For background research and literature reviews.
o When time and resources are limited.
 o To identify trends and patterns.
o To supplement primary data.

Factors Affecting Selection of Resources:

When choosing resources for a research project, several factors come into play. These factors help
ensure that the selected resources are appropriate, reliable, and contribute effectively to the
research goals.
• Research Objectives:
o The specific research questions and objectives will dictate the type of resources
needed.
o For example, a quantitative study might require statistical software and large datasets,
while a qualitative study might focus on interview transcripts and observational notes.
• Availability:
o The accessibility of resources (e.g., funding, equipment, personnel, data sources) is
crucial.
o Limited resources may necessitate alternative approaches or compromises.
• Budget:
o Financial constraints play a significant role in resource selection.
o Researchers must balance the cost of resources with their effectiveness.
• Time Constraints:
o The timeline of the research project influences the choice of resources.
o Time-sensitive projects may require readily available resources or streamlined data
collection methods.
• Expertise and Skills:
o The researchers' expertise and skills determine their ability to utilize specific
resources.
o If specialized software or techniques are required, appropriate training or
collaboration may be necessary.
• Ethical Considerations:
o Resources must be selected and used in an ethical manner, respecting privacy,
confidentiality, and intellectual property rights.
• Reliability and Validity:
o The chosen resources must be reliable and valid, ensuring the accuracy and
trustworthiness of the research findings.
o For example, if using secondary data, the source must be credible.
• Accessibility of Participants:
 o If the research requires direct participation from people, the accessibility of those
people must be considered.
• Type of Data Required:
o Quantitative versus qualitative data collection requires different resources.

Methods of Primary Data Collection:

Primary data collection involves gathering original information directly from the source. Here are
the common methods:
• Surveys (Questionnaires):
o A structured set of questions administered to a sample of individuals.
o Can be conducted online, by mail, or in person.
o Effective for collecting quantitative data from a large number of respondents.
o Types:
▪ Online surveys
▪ Mail surveys
▪ Telephone surveys
▪ In-person surveys
• Interviews:
o Direct conversations with individuals to gather in-depth information.
o Can be structured (predefined questions), semi-structured (flexible questions), or
unstructured (conversational).
o Suitable for qualitative research.
o Types:
▪ Structured interviews
▪ Semi-structured interviews
▪ Unstructured interviews
Methods of Interview:
A) PERSONAL INTERVIEWS : Interviewer asks questions generally in a face to face contact to the other
person or persons
B) TELEPHONIC INTERVIEWS : when it is not possible to contact the respondent directly, then interview
is conducted through –Telephone.
C) STRUCTURED INTERVIEWS : in this case, a set of pre-decided questions are there.
d) UNSTRUCTURED INTERVIEWS : In this case, we don’t follow a system of pre-determined questions.
E) FOCUSED INTERVIEWS : Attention is focused on the given concentrated on some particular problem/
product/topic of the respondent and its possible effects. Greater degree of control with the set of questions
prescribed.
F) CLINICAL INTERVIEWS : Concerned with broad underlying feelings or motivations or with the course
of individual’s life experience, rather than with the effects of the specific experience, as in the case of focused
interview

• Observations:
o Systematic observation and recording of behaviors, events, or phenomena.
o Can be participant (researcher actively involved) or non-participant (researcher
observes from a distance).
o Useful for studying natural behaviors and social interactions.
o Types:
▪ Participant observation
▪ Non-participant observation
OBSERVATION METHOD
OBSERVATION involves looking and listening very carefully.
• Method under which data is collected with the help of observation by the observer or by
personally going to the field.
• P.V. Young, “Observation may be defined as systematic viewing, coupled with consideration
of seen phenomenon.”

Structured Observation:
• Observation allows the researcher to study people in their ‘natural setting’ without their
behaviour being influenced by the presence of a researcher
• Observational data usually consists of detailed information about particular groups or
situations
• It is a structured technique where the data are collected according to some pre-defined rules
and procedures.
• Structured observation can be applied to a wide array of social settings.

Unstructured Observation:
• There is no advance designing of what, how, when, who, etc.
• The observer is given the freedom to decide on the spot, to observe everything that is relevant.

• Experiments:
o Controlled studies designed to test hypotheses and establish cause-and-effect
relationships.
o Involves manipulating independent variables and measuring their effects on
dependent variables.
o Common in scientific and medical research.
• Focus Groups:
 o Group discussions facilitated by a moderator to gather insights and opinions on a
specific topic.
o Useful for exploring complex issues and generating qualitative data.
• Case Studies:
o In depth investigation of a single person, group, or event.
o Useful for exploring complex issues within a specific context.
• Physiological Measurements:
o Collecting data on physical or biological responses.
o Examples: heart rate, brain activity, blood pressure.
• Diaries/Journals:
o Participants record their experiences, thoughts, or behaviors over a period of time.
o Useful for gathering qualitative data on personal experiences.

METHODS/ COLLECTION OF SECONDARY DATA / SOURCES OF SECONDARY DATA:

Secondary data can be broadly categorized into published and unpublished sources:
• Published Sources:
o Government Publications:
▪ Census data, statistical reports, economic indicators, and other official documents.
▪ Examples: publications from national statistical offices, central banks, and
government ministries.
o Academic Publications:
▪ Research papers, journal articles, and books.
▪ These sources provide in-depth analysis and insights into various topics.
o Business and Industry Reports:
▪ Market research reports, industry analyses, and company financial statements.
▪ These sources are valuable for understanding market trends and competitive
landscapes.
o Public Libraries:
▪ Libraries hold a wealth of information, including books, periodicals, and government
documents.
o Online Databases:
▪ Numerous online databases provide access to statistical data, research papers, and
other information.
▪ Examples: databases from academic publishers, government agencies, and
commercial providers.
o Commercial sources:
▪ Newspapers, magazines, and television broadcasts.
 • Unpublished Sources:
o Internal Company Records:
▪ Sales data, customer records, and internal reports.
o Personal Documents:
▪ Diaries, letters, and personal records.
o Unpublished Research:
▪ Research papers and reports that have not been formally published.
Key Considerations When Collecting Secondary Data:
• Reliability and Validity:
o Assess the credibility and accuracy of the source.
o Consider the author's expertise, the data collection methods used, and the potential for bias.
• Relevance:
o Ensure that the data is relevant to the research question.
o Consider the time period, geographic location, and population covered by the data.
• Accuracy:
o Verify the accuracy of the data from multiple sources when possible.
• Timeliness:
o Ensure that the data is up-to-date and relevant to the current context.
• Data Format:
o Consider the format in which the data is available and whether it is compatible with the
research needs.
Advantages of Secondary Data:
• Cost-effective.
• Time-saving.
• Availability.
• Allows for larger studies.
Disadvantages of Secondary Data:
• May not be precisely tailored to the research question.
• Potential for bias.
• May be outdated.
• Lack of control over how the data was originally collected.

Factors considered in secondary data collection

• Relevance: Does the data answer your research question and cover the right scope?
• Reliability: Is the source credible, the data accurate, and consistent with other sources?
• Timeliness: Is the data current and within the relevant time frame?
• Accessibility: Is the data available and in a usable format?
• Completeness: Are there missing data or scope limitations that impact your analysis?
• Methodology: Were the data collection and sampling methods sound?
 • Ethics: Are there privacy issues or usage restrictions to consider?

Questionnaire
1. Definition and Purpose:
• Definition: A questionnaire is a research instrument consisting of a series of questions for the
purpose of gathering information from 1 respondents. It's a structured technique for collecting
data, often used in surveys.
• Purpose:
o To collect data on attitudes, beliefs, behaviors, and demographics.
o To gather standardized information from a large sample.
o To test hypotheses and measure variables.
o To obtain feedback on products, services, or programs.
o To facilitate statistical analysis and data interpretation.
2. Advantages and Disadvantages:
• Advantages:
o Efficiency: Can collect data from a large number of respondents quickly and cost-
effectively.
o Standardization: Ensures that all respondents answer the same questions, allowing
for consistent data collection.
o Anonymity: Can provide anonymity, encouraging honest responses.
o Ease of Analysis: Structured questions facilitate data analysis and statistical
processing.
o Versatility: Can be used in various research settings and for diverse topics.
• Disadvantages:
o Limited Depth: May not capture the nuances of respondents' opinions or
experiences.
o Response Bias: Respondents may provide socially desirable answers or
misunderstand questions.
o Low Response Rates: Can be a challenge, especially with mail or online
questionnaires.
o Inflexibility: Once designed, it's difficult to change the questions.
o Potential for Misinterpretation: Respondents may interpret questions differently,
leading to inconsistent data.
3. Questionnaire Design (Detailed):
• Process of Designing a Questionnaire:
o A systematic approach is essential to ensure the questionnaire yields valid and
 reliable data.
4. Process of Designing a Questionnaire:
• Defining Objectives:
o Clearly state the research questions and objectives.
o Determine the specific information needed to address the research goals.
o What do you want to learn?
• Determining Question Content:
o Identify the variables to be measured.
o Ensure that questions are relevant to the research objectives.
o Avoid unnecessary or redundant questions.
• Choosing Question Format (Open-Ended, Closed-Ended):
1. Open-ended questions (Qualitative Data)
➢ Variable/Factor: Customer Experience with Online Shopping
Question: "Describe your overall experience with our online shopping platform.
What specific aspects did you find positive or negative?"
Scaling: Not applicable (qualitative data).
Purpose: To gather rich, detailed feedback about customer perceptions and
identify specific areas for improvement.
➢ Variable/Factor: Employee Motivation
Question: "In your own words, what factors contribute to your motivation at
work?"
Scaling: Not applicable (qualitative data).
Purpose: To understand the individual motivations of employees and uncover
unique insights.
➢ Variable/Factor: Community Perception of a New Policy
Question: "What are your thoughts and feelings regarding the recently
implemented community policy?"
Scaling: Not applicable (qualitative data).
Purpose: To gain in-depth understanding of the community's reaction.
2. Closed-Ended Questions (Quantitative Data)
➢ Variable/Factor: Customer Satisfaction with Product Quality
Question (Likert Scale): "Please rate your satisfaction with the quality of our
product."
Very Dissatisfied
Dissatisfied
Neutral
Satisfied
 Very Satisfied
Scaling: Likert scale (ordinal scale).
Purpose: To measure customer satisfaction on a quantifiable scale.
➢ Variable/Factor: Frequency of Exercise
Question (Multiple-Choice): "How often do you engage in physical exercise?"
A. Never
B. 1-2 times per week
C. 3-4 times per week
D. 5 or more times per week
Scaling: Ordinal scale (ranking of frequency).
Purpose: To categorize respondents based on their exercise frequency.
➢ Variable/Factor: Purchase Intention
Question (Yes/No): "Are you likely to purchase this product in the next month?"
Yes
No
Scaling: Nominal scale (binary categories).
Purpose: To determine the proportion of respondents with purchase intent.
➢ Variable/Factor: Ranking of Product Features
Question (Ranking): "Please rank the following product features in order of
importance to you (1 = Most Important, 4 = Least Important)."
Feature A: [ ]
Feature B: [ ]
Feature C: [ ]
Feature D: [ ]
Scaling: Ordinal scale (ranking).
Purpose: To understand the relative importance of different product features.
➢ Variable/Factor: Age.
Question (Ratio): "What is your age in years?"
Scaling: Ratio scale.
Purpose: To collect a numerical value of age.
➢ Variable/Factor: Income.
Question (Interval/Ratio): "Please select your income range" or "What is your
yearly income?"
$0-$20,000
$20,001-$40,000
$40,001-$60,000
$60,001+
 Scaling: Interval or Ratio scale.
Purpose: to categorize or quantify income.

• Question Wording and Sequencing:

o Use clear, concise, and unambiguous language.
o Avoid leading or biased questions.
o Ensure questions are culturally sensitive.
o Arrange questions in a logical order (e.g., general to specific).
o Place sensitive questions towards the end.
o Use filter questions to direct respondents to relevant sections.
• Pilot Testing and Revision:
o Conduct a pilot test with a small group of respondents.
o Identify and address any problems with question wording, sequencing, or format.
o Revise the questionnaire based on pilot test results.
o Make sure the questionnaire flows well, and is easy to understand.
• Layout and Presentation:
o Make the questionnaire visually appealing and easy to read.
o Use clear instructions and formatting.
o Ensure adequate space for responses.
o Consider using a professional design.

Qualitative Techniques of Data Collection

Qualitative research aims to explore and understand the meanings, interpretations, and experiences of
individuals and groups. It focuses on in-depth, rich, and descriptive data.
1. Focus Groups:
• Description:
o A small group (6-10 participants) is brought together to discuss a particular topic
under the guidance of a moderator.
o The moderator facilitates discussion, encourages interaction, and explores
participants' opinions, attitudes, and experiences.
• Purpose:
o To gather insights into consumer preferences, product perceptions, or social issues.
o To explore complex topics and generate hypotheses.
o To understand group dynamics and interactions.
• Advantages:
o Rich, in-depth data.
o Exploration of diverse perspectives.
 o Identification of unexpected insights.
o Relatively quick data collection.
• Disadvantages:
o Potential for groupthink or dominant personalities to influence responses.
o Moderator bias.
o Difficulty in generalizing findings.
o Requires skilled moderation.
2. Case Studies:
• Description:
o An in-depth investigation of a single individual, group, organization, or event.
o Uses multiple sources of data, such as interviews, observations, and documents.
• Purpose:
o To gain a deep understanding of a specific phenomenon in its real-world context.
o To explore complex issues and generate hypotheses.
o To provide rich, detailed descriptions.
• Advantages:
o Provides detailed and contextualized insights.
o Allows for exploration of complex phenomena.
o Can generate new hypotheses.
• Disadvantages:
o Limited generalizability.
o Time-consuming and resource-intensive.
o Potential for researcher bias.
o Difficult to replicate.
3. Ethnography:
• Description:
o A research method that involves immersing oneself in a particular culture or social
setting.
o Researchers observe and participate in the daily lives of the people they are
studying.
• Purpose:
o To understand the cultural practices, beliefs, and values of a specific group.
o To provide a holistic and nuanced understanding of a social phenomenon.
• Advantages:
o Provides rich, contextualized data.
o Allows for deep understanding of cultural practices.
o Captures natural behavior.
 • Disadvantages:
o Time-consuming and resource-intensive.
o Potential for researcher bias.
o Ethical considerations.
o Difficult to generalize.
4. Content Analysis:
• Description:
o A systematic analysis of text or other forms of communication (e.g., videos, images).
o Researchers identify and categorize themes, patterns, and meanings within the data.
• Purpose:
o To identify and analyze trends in communication.
o To explore the meanings and interpretations of texts.
o To examine the content of media or other forms of communication.
• Advantages:
o Can be used to analyze large amounts of data.
o Relatively unobtrusive.
o Can be used to study historical or archival data.
• Disadvantages:
o Potential for subjective interpretation.
o Limited to the analysis of existing data.
o Can be time consuming.
5. Advantages and Disadvantages of Qualitative Data Collection (General):
• Advantages:
o Provides rich, in-depth data.
o Allows for exploration of complex issues.
o Captures the perspectives and experiences of participants.
o Flexible and adaptable.
o Can generate new theories.
• Disadvantages:
o Limited generalizability.
o Potential for researcher bias.
o Time-consuming and resource-intensive.
o Difficult to analyze statistically.
o Relies heavily on the skill of the researcher.

MEASUREMENT AND SCALING TECHNIQUES

Measurement and scaling are fundamental to quantitative research, allowing us to assign numerical
values to variables and analyze them statistically.
A. Basic Measurement Scales
1. Nominal Scale:
• Definition and Characteristics:
o The nominal scale is the most basic level of measurement.
o It categorizes data into mutually exclusive and collectively exhaustive groups or
labels.
o Numbers or symbols are used for identification or classification only.
o There is no inherent order or ranking among the categories.
• Examples:
o Gender (Male, Female, Other)
o Marital status (Single, Married, Divorced)
o Types of cars (Sedan, SUV, Truck)
o Eye color (Blue, Brown, Green)
• Statistical Analysis Possible:
o Frequency counts, percentages, and modes.
o Chi-square tests.
2. Ordinal Scale:
• Definition and Characteristics:
o The ordinal scale categorizes data and ranks them in a specific order.
o It indicates the relative position of items, but not the magnitude of difference between
them.
o The intervals between categories are not necessarily equal.
• Examples:
o Educational level (High school, Bachelor's, Master's, Ph.D.)
o Customer satisfaction ratings (Very dissatisfied, Dissatisfied, Neutral, Satisfied, Very
satisfied) 1

o Ranking of favorite movies (1st, 2nd, 3rd)

• Statistical Analysis Possible:
o Frequency counts, percentages, modes, and medians.
o Rank-order correlations (Spearman's rho).
3. Interval Scale:
• Definition and Characteristics:
o The interval scale categorizes data, ranks them, and establishes equal intervals
between categories.
o It allows for meaningful comparisons of differences, but it lacks a true zero point.
 o Zero is arbitrary.
• Examples:
o Temperature in Celsius or Fahrenheit
o Calendar years
o IQ scores
• Statistical Analysis Possible:
o Frequency counts, percentages, modes, medians, and means.
o Standard deviations, variances, and t-tests.
4. Ratio Scale:
• Definition and Characteristics:
o The ratio scale is the highest level of measurement.
o It has all the characteristics of the interval scale, plus a true zero point.
o Ratios between values are meaningful.
• Examples:
o Height and weight
o Income
o Age
o Number of customers.
• Statistical Analysis Possible:
o All statistical analyses, including ratios and geometric means.
5. Comparison of Scales and Appropriate Applications:
• Nominal: Used for categorical data with no order.
• Ordinal: Used for ranked data with unequal intervals.
• Interval: Used for ordered data with equal intervals and an arbitrary zero.
• Ratio: Used for ordered data with equal intervals and a true zero.
Key Difference:
• Nominal: Categories, no order.
• Ordinal: Categories, ordered, unequal intervals.
• Interval: Ordered, equal intervals, arbitrary zero.
• Ratio: Ordered, equal intervals, true zero.