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    Business Research Methods

    Research Design

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    Definition

    A research design is a blueprint for conducting researchproject

    It specifies details of how the project should beconducted

    Although a broad approach to the problem has alreadybeen designed ,research design specifies details (nuts &bolts) of implementation of that approach

    A good research design ensures that the project isconducted effectively and efficiently

    It involves six components or tasks

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    Six Components of a research design

    Design the exploratory, descriptive and/orcausal phases of the research design

    Define the information needed

    Specify the measurement and scalingprocedure

    Construct and pre test a questionnaire or anappropriate form for data collection

    Specify the sampling process & sample size

    Develop a plan of data analysis

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    Classification of research design

    The research designs may be broadly classified

    as Exploratory & Conclusive

    The primary purpose of exploratory research is

    to provide insights into the problem

    Conclusive research is conducted to test specific

    hypotheses and test specific relationships

    The findings from conclusive research are used

    as inputs in managerial decision making

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    Types of conclusive research

    Conclusive research may either bedescriptive or causal

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    Descriptive Research

    Descriptive research is a type of conclusiveresearch that has as its major objective the

    description of something-usually market

    characteristics or functions A descriptive design requires a clear

    specification of the who, what, when,

    where, why and the way of research

    Descriptive research can be classified into

    cross sectional and longitudinal research

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    Descriptive research

    Cross sectional designs involves collectionof information from a sample of population

    elements at a single point in time

    In longitudinal design repeated

    measurements are taken on a fixed sample

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    Causal Design

    Causal research is designed for the primary

    purpose of obtaining evidence about cause

    and effect relationships

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    Difference Between Exploratory and Conclusive Research

    Objective

    Exploratory: To provide insights & understanding

    Conclusive: To test specific hypothesis & test relationships

    Characteristics

    Exploratory: Information needed is defined only loosely

    Research process is flexible & unstructured

    Sample is small & non representative

    Analysis of primary data is qualitative Conclusive :Information needed is clearly defined

    Research process is formal & structured

    Sample is large & representative

    Data analysis is quantitative

    Findings/Results Exploratory : Tentative

    Conclusive : Conclusive

    Outcome

    Exploratory : Generally followed by further exploratory or conclusive

    research Conclusive : Findings used as inputs into decision making

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    Exploratory Research Descriptive Research Causal Research

    (Unaware of Problem) (Aware of Problem) (Problem Clearly Defined)OBJECTIVES

    Discover ideas and insights Describe market characteristics Determine cause and effect

    or functions relationships

    CHARACTERISTICS

    Flexible Marked by prior formulation of Manipulation of one or more

    Versatile specific hypothesis independent variablesOften front end of total Preplanned and structured design Control of mediating variables

    research design

    METHODS

    Expert Surveys Secondary data ( Analyzed Experiments

    Pilot Surveys quantitatively)

    Secondary data ( Analyzed Surveysqualitatively) Panels

    Qualitative research Observational and other data

    Comparison of basic research designs

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    Exploratory Research Descriptive Research Causal Research

    (Unaware of Problem) (Aware of Problem) (Problem Clearly Defined)

    Our sales are declining and What kind of people are buying Will buyers purchase more of

    we dont know why. our product? Who buys our our products in a new package?

    competitors product?Would people be interested Which of two advertising

    in our new product idea? What features do buyers prefer campaigns is more effective?

    in our product?

    Degree of Problem Definition

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    Descriptive Research Example Mens fragrance market

    -1/3 size of womens fragrance market

    -But growing at a faster pace

    -Women buy 80 % of mens fragrances

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    Identifying Causality

    A causal relationship is impossible to prove.

    Evidence of causality:

    1. The appropriate causal order of eventsxmust precede y-

    2. Concomitant variation--two phenomenavary together-

    3. An absence of alternative plausibleexplanations _elimination of other possiblecausal factors

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    Causal relationships

    Three types of possible relationships Symmetrical-

    Two variables fluctuate together-

    Changes in either variable are not due tochanges in other but due to another cause

    variable-

    Low attendance of youth in martial art clubsand active participation in discotheques &

    parties is a result of lifestyle preference

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    Reciprocal-

    Two variables mutually influence eachother-

    Reading an ad. leads a person to buy a

    product After usage it sensitises the person to notice

    & read successive ads

    Asymmetrical- Changes in one variable are responsible for

    changes in another variable-

    Increase in price may lead to fall in sales

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    Asymmetrical relationships are of four types depending on

    nature of variables

    Stimulus- response- Event that results in response from some object-

    Increase in product price may result in fewer sales

    Property- Disposition-

    Effect of age on attitude with regard to savings-

    Impact of gender on attitude towards social issues

    Disposition- Behaviour-

    Persons perception about a brand & its purchase- Job satisfaction &productivity

    Property- behaviour-

    Family life style &purchase of goods,

    Social class &famil savin s atterns

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    Property-

    Enduring nature of a subject which does not depend

    on circumstances for its activation- Family, status, age. gender ,religion

    Disposition-

    Inclination to respond in a certain way under certaincircumstances-

    Attitudes, opinions, values, perceptions, job

    satisfaction Behaviour-

    Consumption pattern, savings pattern, purchasingpattern ,work performance, Interpersonal acts,

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    Examples of Exploratory research

    Department Store Patronage Project

    -Review of academic & trade literature to identifyrelevant demographic & psychographic factorsthat influence consumer patronage

    -Interviews with retailing experts to determine trends

    :new types of outlets ,shifts in consumer patronagepatterns (Internet shopping)

    -Comparative analysis of 5 best & 5 worst stores ofthe same chain to get some idea of factors thatinfluence store performance

    -Focus group to determine factors consideredimportant by consumers in store selection

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    Examples of Descriptive Research

    Department Store Patronage Project

    Who-

    Who should be considered a patron of a

    particular department store

    -Anyone who enters the store

    -Anyone who purchases from the store

    -Anyone who purchase at least once amonth

    -Person in the HH responsible for shopping

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    What-

    What information should be obtained from therespondents

    Frequency with which different stores are

    patronised for specific product categories

    Evaluation of various stores in terms of salient

    choice criteria

    Information pertaining to specific hypotheses to betested

    Psychographics & lifestyles, media consumption

    habits, Demographics

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    When-

    When should the information be obtainedfrom the respondents

    -Before shopping

    -While shopping - Immediately after shopping

    -Some time after shopping to allow time for

    evaluating their shopping experience

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    Where-

    Where should the respondents be contactedto obtain required information

    -In the store

    -Outside the store but in the mall -In the parking lot

    -At home

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    Why-

    Why are we obtaining information fromrespondents ? Why is the marketing

    research project being conducted

    -improve the image of sponsoring store

    -Improve patronage and market share

    -Change the product mix

    -Develop a suitable promotional campaign

    -Decide on the location of a new store

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    Way-

    In what way are we going to obtain

    information from the respondents

    -Observation of respondents behaviour

    -Personal interviews

    -Telephone interviews

    -Mail interviews -Electronic (Email or internet) interviews

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    More Examples of descriptive research

    Market studies-

    Which describe-size of the market ,buying power

    of consumers, availability of distributors

    &consumer profiles

    Market share studies-

    which determine proportion of total sales received

    by a company & its competiters

    Sales analysis studies-

    which describe sales by geographic regions,

    product line, type & size of account

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    Image studies-

    Which determine consumer perception of the firm & its

    products

    Product usage studies-

    which describe consumption patterns

    Distribution studies-

    which determine traffic flow patterns and number & location

    of distributors

    Pricing studies-

    which describe the range & frequency of price changes &probable consumer response to proposed price changes

    Advertising studies-

    which describe media consumption habits, audience profile for

    specific TV programmes and magazines

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    Examples of causal Studies

    Test Marketing-

    Application of controlled experiment done in

    limited but carefully selected test markets-

    marketing mix variables (independent variables)

    are varied and sales (dependent variable) aremonitored so that an appropriate marketing

    strategy can be determined

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    Characteristics of a good research design

    Flexibility,Adaptability,Efficiency,Effective

    ness

    Minimise bias and maximise accuracy

    -For Exploratory research the design shouldbe flexible enough to consider different

    aspects of problem situation

    For conclusive research design whichminimises bias & maximises reliability is

    appropriate

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    Research design concepts

    Variable:

    Anything that may assume different numerical or categorical values

    Dependent Variable:

    A variable that is to be predicted or explained :weight

    Independent variable:

    A variable that is expected to influence the dependent variable:

    Height Extraneous variable:

    Independent variables that are not directly linked with the study butmay influence dependent variable:

    If the study wants to test a hypothesis that a relationship existsbetween academic achievement and self concept of children thenacademic achievement is dependent and self concept is independentvariable. Intelligence may also affect academic achievement but itis not related to studys purpose and hence it is an extraneous

    variable.

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    Control:

    It is devised to minimise effects of extraneous

    variables. Confounded relationship:

    When a dependent variable is affected by an

    extraneous variable then relation between thedependent & independent variable is confused or

    confounded by an extraneous variable

    Hypothesis: A proposition that tentatively explains certain

    facts or phenomenon and can be empirically tested

    Experiment:

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    Experiment:

    A research method in which conditions are controlled sothat one or more variables can be manipulated in orderto test a hypothesis. To study impact of a sports coach

    on cricket teams performance an experiment can beconducted

    Absolute Experiment:

    If we want to know impact of a sports coach on cricket

    teams performance it is an absolute experiment Comparative experiment :

    If we want to know impact of one sports coach oncricket teams performance compared to impact of

    another sports coach on cricket teams performance it isa comparative experiment

    Experimental units:

    Pre specified plots or blocks where various treatmentsare used are called experimental units

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    - Experimental group:

    - The group of subjects exposed to an experimentaltreatment.

    - Group of students provided with a sport coach

    - Control Group :

    - A group of subjects who are exposed to the controlconditions in an experiment, that is they are subjects notexposed to the experimental treatment

    - Group of students not provided with a sports coach

    - Treatment:

    - It refers to conditions to which experimental groups aresubjected and control groups are not subjected

    Ch i h d i

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    Choosing a research design

    Various factors help in selection of the research

    design & its various aspects These are listedbelow

    -Degree of formality desired :

    Informal or Formal depending on immediateobjectives:

    Exploratory studies are conducted for developingguidelines & hypothesis for future research &are

    informal in nature with loose structure :Conclusive studies are initiated with proper

    hypothesis & are formal in nature with a proper

    structure

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    Purpose of the study:

    If the study is being conducted to find out

    what,when where,who or how much then a

    descriptive study is best suited:

    If study aims at finding out why a causal study is

    suitable:

    How many employees are leaving ,when they

    are leaving & such other issues are covered by

    descriptive studies:

    For finding why they are leaving a causal study

    is suitable.

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    Method of data collection :

    Selection of method for data collection can be done based

    on the study to be conducted

    :If research has to be done on traffic flow at a particular

    junction observation method is the best:

    If consumer perceptions about a new product are to beestimated then questionnaire method is appropriate

    Control of variables:

    If certain variables need to be controlled to find out cause

    & effect relationship Experiments are conducted by

    manipulating them.

    Time Dimension:

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    Time Dimension:

    Studies could be either cross sectional or longitudinal

    or both:

    Cross sectional studies are conducted once while

    longitudinal studies are repeated over a period of tim

    Scope of the study:

    Scope of the study could be limited or wide

    depending on the problem at hand:

    Scope of exploratory study could be limited Scope of conclusive study could be wide involving

    selection of statistical sample to represent the entire

    population

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    Research Environment:

    Field conditions or laboratory conditions :under

    field conditions research is carried out as it iswhile in laboratory conditions real life situationsare enacted and an artificial environment iscreated for research.

    Subjects perception: Effectiveness of a research study varies according

    to perceptions of subjects under study: Ifrespondents know that research is being carried

    or they are being observed they may responddifferently. One has to be watchful about suchchanges to ensure effectiveness