Advance Business Research Methods
Advance Business Research Methods
Data Collection
Secondary Data
Inexpensive
May not be relevant
May be old
Internal Sources
• Company Accounts
• Internal Reports and Analysis
• Stock Analysis
• Retail data - loyalty cards, till data, etc.
External Sources
• Government Statistics
• Trade publications
• Commercial Data
• Household Expenditure Survey
• Magazine surveys
• Other firms’ research
• Research documents – publications, journals, etc.
Overview on Data Management
Data management cycle
Design Enumerators collect
questionnaire data in the field
Design
survey Manual checking,
Conception editing etc.
Reporting of results
Data entered
Data into computer
analysis
B – Relational Statistics
• Univariate, bi-variate, and multi-variate analysis
C- Inferential statistics
• Branch of statistics devoted to making
generalizations.
DATA DESCRIPTION
• Measures of Dispersion
– Variation (Std)
INFERENTIAL STATISTICS
• Investigate questions, models and hypotheses.
– Confidence Intervals
– Hypothesis testing
Measuring and scaling marketing data
Measurement
To collect data, you need to have something to
measure
Which of the following media influences your purchasing decisions the most?
– 1 Television 2 Radio 3 Newspapers 4 Magazines
Ordinal Scale
classifies nominal data according to some order or rank E.g. names ordered
alphabetically
With ordinal data, it is fair to say that one response is greater or less than
another.
Examples
The gap between the items is
GPA unspecified.
Small medium large
Quality
Likert scales, rank on a scale of
1..5 your degree of satisfaction
Women’s dress sizes
Interval Scale
assumes that the measurements are made in
equal units.
i.e. gaps between whole numbers on the scale
are equal.
e.g. Fahrenheit and Celsius temperature scales
an interval scale does not have to have a true
zero. e.g. A temperature of "zero" does not mean
that there is no temperature...it is just an
arbitrary zero point.
Permissible statistics: count/frequencies, mode,
median, mean, standard deviation
Ratio Scale
similar to interval scales except that the
ratio scale has a true zero value.
e.g. the time something takes
allows you to compare differences
between numbers.
Permits full arithmetic operation.
If a train journey takes 2 hr and 35 min,
then this is half as long as a journey which height, weight, age,
takes 5 hr and 10 min. Length
time
Income
Market share
Types of Variables
• Independent
• Dependent
• Moderating
• Extraneous
• Intervening
Types of Variables
• Independent & Dependent
– Leadership style & Employee performance or Job
satisfaction
– Price of a product & Demand
• Independent
– Cause, Stimulus, Predictor, Antecedent
• Dependent
– Effect, Response, Criterion, Consequence
Types of Variables
• Moderating
– In each relationship there is one Independent Variable (IV)
& one Dependent Variable (DV)
• Four day work week (IV) will lead to higher productivity (DV)
– Moderating variable is a second independent variable that
has significant effect on the originally stated IV–DV
relationship
• Four day work week (IV) will lead to higher productivity (DV),
especially among young workers (MV)
Types of Variables
• Extraneous
– Infinite number of extraneous variables (EV) exist that
might effect the relationship
– Most of such variables have little or no effect on the given
situation and these may be ignored
– Others may have highly random occurrence as to have
little impact
– For productivity example: election of a new mayor, rainy
days, bird flu, strike etc
Types of Variables
• Intervening
– Intervening variable (IVV) is defined as a factor
which theoretically effects the observed
phenomenon but can not be seen measured or
manipulated
– Its effect can be inferred from the effects on the
observed phenomenon
• Four day work week (IV) will lead to higher productivity
(DV) by increasing job satisfaction (IVV)
Characteristics of Good Measurement Scales
1. Reliability
• The degree to which a measure accurately captures an
individual’s true outcome without error; Accuracy
• synonymous with repetitive consistency
2. Validity
• The degree to which a measure faithfully represents the
underlying concept; Fidelity
• it measures what it is supposed to measure
Face Validity
Criterion Validity
Concurrent validity
Predictive validity
Convergent validity
Accuracy of Measurements
Face Validity
– The extent to which the content of a measurement scale appears to tap
all relevant facets of the construct
Criterion Validity
– Based on empirical evidence that the attitude measure correlates with
other “criterion” variables
Concurrent validity
– Two variables are measured at the same time
Predictive validity
– The attitude measure can predict some future event
Convergent validity
– A form of construct validity that represents the association between the
measured construct and measures of other constructs with which the
construct is related on theoretical grounds
SAMPLING
• Why sample?
– Resources (time, money) and workload
– Gives results with known accuracy that can be
calculated mathematically
[email protected]
Population definition…….
• Note also that the population from which the
sample is drawn may not be the same as the
population about which we actually want
information. Often there is large but not
complete overlap between these two groups due
to frame issues etc .
• Sometimes they may be entirely separate - for
instance, we might study rats in order to get a
better understanding of human health, or we
might study records from people born in 2008 in
order to make predictions about people born in
2009.
SAMPLING FRAME
• In the most straightforward case, such as the
sentencing of a batch of material from production
(acceptance sampling by lots), it is possible to
identify and measure every single item in the
population and to include any one of them in our
sample. However, in the more general case this is not
possible. There is no way to identify all rats in the
set of all rats. Where voting is not compulsory,
there is no way to identify which people will actually
vote at a forthcoming election (in advance of the
election)
• As a remedy, we seek a sampling frame which has
the property that we can identify every single
element and include any in our sample .
• The sampling frame must be representative of the
population
PROBABILITY SAMPLING
• Disadvantages
• If sampling frame large, this method impracticable.
• Minority subgroups of interest in population may not be
present in sample in sufficient numbers for study.
REPLACEMENT OF SELECTED UNITS
• ADVANTAGES:
• Sample easy to select
• Suitable sampling frame can be identified easily
• Sample evenly spread over entire reference population
• DISADVANTAGES:
• Sample may be biased if hidden periodicity in population
coincides with that of selection.
• Difficult to assess precision of estimate from one survey.
STRATIFIED SAMPLING
Where population embraces a number of distinct
categories, the frame can be organized into separate
"strata." Each stratum is then sampled as an
independent sub-population, out of which individual
elements can be randomly selected.
• Every unit in a stratum has same chance of being
selected.
• Using same sampling fraction for all strata ensures
proportionate representation in the sample.
• Adequate representation of minority subgroups of
interest can be ensured by stratification & varying
sampling fraction between strata as required.
STRATIFIED SAMPLING……
• Finally, since each stratum is treated as an
independent population, different sampling
approaches can be applied to different strata.
• Advantages :
• Cuts down on the cost of preparing a
sampling frame.
• This can reduce travel and other
administrative costs.
• Disadvantages: sampling error is higher
for a simple random sample of same size.
• Often used to evaluate vaccination
coverage in EPI
CLUSTER SAMPLING…….
• Identification of clusters
– List all cities, towns, villages & wards of cities with
their population falling in target area under study.
– Calculate cumulative population & divide by 30, this
gives sampling interval.
– Select a random no. less than or equal to sampling
interval having same no. of digits. This forms 1st
cluster.
– Random no.+ sampling interval = population of 2nd
cluster.
– Second cluster + sampling interval = 4th cluster.
– Last or 30th cluster = 29th cluster + sampling
interval
CLUSTER SAMPLING…….
Two types of cluster sampling methods.
One-stage sampling. All of the elements
within selected clusters are included in
the sample.
Two-stage sampling. A subset of
elements within selected clusters are
randomly selected for inclusion in the
sample.
CLUSTER SAMPLING…….
• Freq cf cluster • XVI 3500 52500 17
• I 2000 2000 1 • XVII 4000 56500 18,19
• II 3000 5000 2 • XVIII 4500 61000 20
• III 1500 6500 • XIX 4000 65000 21,22
• IV 4000 10500 3 • XX 4000 69000 23
• V 5000 15500 4, 5 • XXI 2000 71000 24
• VI 2500 18000 6 • XXII 2000 73000
• VII 2000 20000 7 • XXIII 3000 76000 25
• VIII 3000 23000 8 • XXIV 3000 79000 26
• IX 3500 26500 9 • XXV 5000 84000 27,28
• X 4500 31000 10 • XXVI 2000 86000 29
• XI 4000 35000 11, 12 • XXVII 1000 87000
• XII 4000 39000 13 • XXVIII 1000 88000
• XIII 3500 44000 14,15 • XXIX 1000 89000 30
• XIV 2000 46000 • XXX 1000 90000
• XV 3000 49000 16 • 90000/30 = 3000 sampling interval
Difference Between Strata and Clusters
• Part of the information collected from whole sample & part from
subsample.
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Judgmental sampling or Purposive
sampling
• - The researcher chooses the sample
based on who they think would be
appropriate for the study. This is used
primarily when there is a limited number
of people that have expertise in the
area being researched
PANEL SAMPLING