BUSINESS RESEARCH METHODS

KMBN203
UNIT 2
DR. HIMANI GREWAL
 CONTENT
• Research design: Concept, Features of a good research design,
Use of a good research design
• Qualitative and Quantitative research approaches, Comparison –
Pros and Cons of both approaches.
• Exploratory Research Design: Concept, Types: Qualitative
techniques – Projective Techniques, Depth Interview, Experience
Survey, Focus Groups, Observation.
• Descriptive Research Designs: Concept, types and uses.
• Concept of Cross-sectional and Longitudinal Research
• Experimental Design: Concept of Cause, Causal relationships,
Concept of Independent & Dependent variables, concomitant
variable, extraneous variable, Treatment, Control group
 RESEARCH DESIGN
• The formidable problem that follows the task of defining
the research problem is the preparation of the design of the
research project, popularly known as the “research design”.
Decisions
• regarding what, where, when, how much, by what means
concerning an inquiry or a research study constitute a
research design.
• “A research design is the arrangement of conditions for
collection and
• analysis of data in a manner that aims to combine relevance
to the research purpose with economy in procedure.”
 Continued
• In fact, the research design is the conceptual structure within which research is
conducted; it constitutes the blueprint for the collection, measurement and analysis
of data.
• As such the design includes an outline of what the researcher will do from writing
the hypothesis and its operational implications to the final analysis of data. More
explicitly, the decisions happen to be in respect of:
(i) What is the study about?
(ii) Why is the study being made?
(iii) Where will the study be carried out?
(iv) What type of data is required?
(v) Where can the required data be found?
(vi) What periods of time will the study include?
(vii) What will be the sample design?
(viii) What techniques of data collection will be used?
(ix) How will the data be analyzed?
(x) In what style will the report be prepared?
Components of Research Design
• one may split the overall research design into the following
parts:
• (a) the sampling design which deals with the method of selecting
items to be observed for the given study;
• b) the observational design which relates to the conditions under
which the observations are to be made;
• (c) the statistical design which concerns with the question of how
many items are to be observed and how the information and data
gathered are to be analysed; and
• (d) the operational design which deals with the techniques by
which the procedures specified in the sampling, statistical and
observational designs can be carried out.
 Continued..
From what has been stated above, we can state the important features of a
research design as under:
• (i) It is a plan that specifies the sources and types of information
relevant to the research problem.
• (ii) It is a strategy specifying which approach will be used for gathering
and analyzing the data.
• (iii) It also includes the time and cost budgets since most studies are
done under these two constraints.
• In brief, research design must, at least, contain—(a) a clear statement of
the research problem;
• (b) procedures and techniques to be used for gathering information;
• (c) the population to be studied; and
• (d) methods to be used in processing and analyzing data.
 Features of a good research design
• Flexible
• Appropriate
• Efficient
• Economical
• Unbiased
• Reliability of data
• Minimum error
• More informative
 Need for Research Design
• Maximum information with minimum expenditure of
time, money and efforts
• To achieve reliable results
• To organize ideas of the researcher
 Factors to be considered under a
particular research design

• Means for obtaining information

• Availability and skills of researcher
• Availability and skills of other staff
• Objective of the problem to be studied
• Nature of the problem
• Availability of time
• Availability of money
Important Concept Related to Research
Design
• 1. Dependent and independent variables: A concept which can take on
different quantitative values is called a variable.
• As such the concepts like weight, height, income are all examples of
variables. Qualitative phenomena (or the attributes) are also quantified on the
basis of the presence or absence of the concerning attribute(s).
• Phenomena which can take on quantitatively different values even in decimal
points are called ‘continuous variables’. But all variables are not continuous.
• If they can only be expressed in integer values, they are non-continuous
variables or in statistical language ‘discrete variables’.
• Age is an example of continuous variable, but the number of children is an
example of non-continuous variable.
• If one variable depends upon or is a consequence of the other variable, it is
termed as a dependent variable, and the variable that is antecedent to the
dependent variable is termed as an independent variable.
• 2. Extraneous variable: Independent variables that are not related to the purpose of
the study, but may affect the dependent variable are termed as extraneous variables.
• Suppose the researcher wants to test the hypothesis that there is a relationship
between children’s gains in social studies achievement and their self-concepts.
• In this case self-concept is an independent variable and social studies achievement is
a dependent variable. Intelligence may as well affect the social studies achievement,
but since it is not related to the purpose of the study undertaken by the researcher, it
will be termed as an extraneous variable. Whatever effect is noticed on dependent
variable as a result of extraneous variable(s) is technically described as an
‘experimental error’.
• 3. Control: One important characteristic of a good research design is to minimize
the influence or effect of extraneous variable(s).
• The technical term ‘control’ is used when we design the study minimizing the effects
of extraneous independent variables. In experimental researches, the term ‘control’ is
used to refer to restrain experimental conditions.
• 4. Confounded relationship: When the dependent variable is not free
from the influence of extraneous variable(s), the relationship between the
dependent and independent variables is said to be confounded by an
extraneous variable(s).
• 5. Research hypothesis: When a prediction or a hypothesized relationship
is to be tested by scientific methods, it is termed as research hypothesis.
• The research hypothesis is a predictive statement that relates an
independent variable to a dependent variable. Usually a research
hypothesis must contain, at least, one independent and one dependent
variable.
• Predictive statements which are not to be objectively verified or the
relationships that are assumed but not to be tested are not termed research
hypotheses.
• 6. Experimental and non-experimental hypothesis-testing research: When the
purpose of research is to test a research hypothesis, it is termed as hypothesis-
testing research. It can be of the experimental design or of the non-experimental
design.
• Research in which the independent variable is manipulated is termed ‘experimental
hypothesis-testing research’ and a research in which an independent variable is not
manipulated is called ‘non-experimental hypothesis-testing research’.
• 7. Experimental and control groups: In an experimental hypothesis-testing research
when a group is exposed to usual conditions, it is termed a ‘control group’, but
when the group is exposed to some novel or special condition, it is termed an
‘experimental group’.
• In the above illustration, the Group A can be called a control group and the Group
B an experimental group. If both groups A and B are exposed to special studies
programmes, then both groups would be termed ‘experimental groups.’
• It is possible to design studies which include only experimental groups or studies
which include both experimental and control groups.
• 8. Treatments: The different conditions under which experimental and
control groups are put are usually referred to as ‘treatments’.
• In the illustration taken above, the two treatments are the usual
studies programme and the special studies programme. Similarly, if
we want to determine through an experiment the comparative impact
of three varieties of fertilizers on the yield of wheat, in that case the
three varieties of fertilizers will be treated as three treatments.
• 9. Experiment: The process of examining the truth of a statistical
hypothesis, relating to some research problem, is known as an
experiment.
• 10. Experimental unit(s): The pre-determined plots or the blocks,
where different treatments are used, are known as experimental units.
Such experimental units must be selected (defined) very carefully.
 Qualitative and Quantitative research
approaches
• Qualitative research explores what people think, feel and do
while quantitative gives a measure of how many people think,
feel or behave in a certain way
• Pros of Qualitative Research-
• It provides depth and detail: Analyzing thoughts, feelings and
behaviors to explore the ‘why’.
• It encourages discussion: When people expand on why they
feel or act a certain way, it can introduce new topic areas
not previously considered.
• It allows for more flexibility: Questioning can adapt in real-time
to the quality and nature of information being gathered.
 Continued..
• Cons of Qualitative Research-
⚫ Small sample sizes: This method is more in-depth and
therefore more time consuming and resource intensive, meaning
fewer people are surveyed.
⚫ More difficult to generalize: With a smaller survey sample
it’s difficult to generalize the results.
⚫ Relies on skilled researchers: The quality of the responses is
largely dependent on the skill of the researchers carrying out
interviews or conducting focus groups.
⚫ Lack of anonymity: There are some topics that respondents are
more willing or comfortable responding to via anonymous quant
surveys than in one-or-one interviews or discussion groups.
• Pros of Quantitative Research
• Larger sample: A broader study can be made, involving
more subjects and enabling more generalization of results.
• Objectivity and accuracy: Few variables are involved as data
relates to close- ended information.
• Faster and easier: Data collection can be automated via
digital or mobile surveys, allowing thousands of interviews to
take place at the same time across multiple countries.
• More cost effective: The cost of someone participating in a
quantitative survey is typically far less than in a qualitative
interview.
• Cons of Quantitative Research-
• Less detail: Results are based on numerical responses and therefore
most will not offer much insight into thoughts and behaviors, whereby
lacking context. It’s possible to include open-end answers but these
rely on respondents understanding the nature of the question being
asked, and being willing to spend time completing them.
• Artificiality: Research can be carried out in an unnatural
environment so that control can be applied, meaning results might
differ to ‘real world’ findings.
• Limiting: Pre-set answers might mask how people really behave or
think, urging them to select an answer that may not reflect their true
feelings.
 Different Research
Designs
⚫Research design in case of exploratory research studies
⚫Research design in case of descriptive research studies
⚫Research design in case of hypothesis testing research studies
 Exploratory Research Design
• Exploratory research studies are also termed as formulative research studies.
• The main purpose of such studies is that of formulating a problem for more
precise investigation or of developing the working hypotheses from an
operational point of view. The major emphasis in such studies is on the
discovery of ideas and insights.
• As such the research design appropriate for such studies must be flexible
enough to provide opportunity for considering different aspects of a problem
under study.
• Inbuilt flexibility in research design is needed because the research problem,
broadly defined initially, is transformed into one with more precise meaning in
exploratory studies, which fact may necessitate changes in the research
procedure for gathering relevant data.
• Generally, the following three methods in the context of research design for
such studies are talked about: (a) the survey of concerning literature; (b) the
experience survey and (c) the analysis of ‘insight-stimulating’ examples.
 Categories of Exploratory Research

1. Experience Surveys: - Issues and ideas may be discussed with persons who
have had
personal experience in the field.
2. Secondary data analysis:- Another quick and economical source of
background information is existing literature containing data that has been
compiled for some purpose other than the purpose in hand
3. Case Study method: -obtains information from one or a few situations that
are similar to the problem situation. Primary advantage is that an entire
organisation or entity can be investigated in depth and with meticulous
attention to detail.
4. Pilot Studies are used in different types of designs. - Within the context of
exploratory research it covers some part of the research on a small scale.
Major categories of pilot study include focus group interviews, projective
techniques, and depth interviews.
• Categories of Pilot Studies
• 1. Focus Group interviews: - Unstructured, free flowing, group
dynamic sessions that allow individuals the opportunity to
initiate the topics of discussion. There is synergistic and
spontaneous interaction among the respondents. Found to be
highly advantageous.
• 2. Projective techniques; - An indirect means of questioning the
respondents. Uses word association tests, sentence completion
test, third person test, role playing technique and Thematic
Apperception Test.
• 3. Depth interviews:- unstructured, extensive interviews that
encourage an individual to talk freely and in depth about a topic.
• Important Projective Techniques
•Word Association Test.
•Completion Test.
•Construction Techniques
•Expression Techniques
• Word Association Test: An individual is given a clue or hint and
asked to respond to the first thing that comes to mind. The
association can take the shape of a picture or a word. There can be
many interpretations of the same thing.
• A list of words is given and you don’t know in which word they are
most interested. The interviewer records the responses which reveal
the inner feeling of the respondents.
• The frequency with which any word is given a response and the
amount of time that elapses before the response is given are
important for the researcher. For eg: Out of 50 respondents 20
people associate the word “ Fair” with “Complexion”.
• Completion Test: In this the respondents are asked to
complete an incomplete sentence or story. The
completion will reflect their attitude and state of mind.
• Construction Test: This is more or less like completion
test. They can give you a picture and you are asked to
write a story about it. The initial structure is limited
and not detailed like the completion test. For eg: 2
cartoons are given and a dialogue is to written.
• Expression Techniques: In this the people are asked to
express the feeling or attitude of other people.
•Disadvantages of Projective Techniques
•Highly trained interviewers and skilled interpreters are
needed.
•Interpreters bias can be there.
•It is a costly method.
•The respondent selected may not be representative of the
entire population.
 What is Depth Interview?

• Depth or in-depth interview is a qualitative research

technique which is used to conduct intensive individual
interviews where numbers of respondents are less and
research is focused on a specific product, technique,
situation or objective.
• Companies employ market research firms to employ In-
depth interviews to understand consumer behavior for a
new product or to expand sales of existing products.
• Advantages of In-depth interviews
• - Comparatively much more detailed information than other data
collection methods like surveys and focused group discussions.
• - Provide much more relaxed information to collect information-
people feel more comfortable in having a personal conversations
rather than filling surveys.
• • Limitations of In-depth interviews
• - Responses are prone to bias. Responses are affected by the
community members and other participants of the program.
• - Interviews can be time intensive. Interviewer has to match with
the availability of the interviewee.
• - Interviewer must be appropriately trained for the interview
techniques. The interviews have to be structured and thus need
appropriate skills.
• - Results cannot be generalized as the sample chosen is very small
and hence random sampling methods are used.
• In-depth interview is a 6 step process:
• i. Planning
• ii. Instruments development
• iii. Training of the data collectors or the interviewers
• iv. Collection of data
• v. Analyzing the collected data
• vi. Reporting or disseminating the findings of the analyzed data

• Potential sources of information for data collection

• i. Policy makers
• ii. Project office
• iii. Clinic staff
• iv. Program participants/clients
• v. Community members
 Experience survey
• An experience survey is a set of questions designed to gauge the
overall satisfaction of a group of people who have shared a common
experience.
• Businesses commonly distribute these surveys among customers,
and educational institutions often distribute surveys among
students.
• Experience surveys are usually composed of two types of questions.
The first are multiple-choice questions that allow participants taking
the survey to rate their experiences on a scale or indicate their
satisfaction levels by choosing from a list of responses.
• Many experience surveys also include open-ended questions in
which individuals write short responses or expand on their answers
in the multiple-choice section.
 Focus group

• A focus group is best defined as a small group of carefully selected

participants who contribute to open discussions for research.
• The hosting organization carefully selects participants for the study
to represent the larger population they’re attempting to target.
• The group might look at new products, feature updates, or other
topics of interest to generalize the entire population’s reaction.
Focus group research includes a moderator. Their job is to ensure
legitimate results and reduce bias in the discussions.
• In 1991, marketing and psychological expert Ernest Dichter coined
the name “Focus Group”. The term described meetings held with a
limited group of participants with the objective of discussion.
• You use a focus group in qualitative research. A group of 6-10 people,
usually 8, meet to explore and discuss a topic, such as a new product.
The group shares their feedback, opinions, knowledge, and insights
about the topic at hand.
• Participants openly share opinions and are free to convince other
participants of their ideas.
• The mediator takes notes on the discussion and opinions of group
members.
• The right group members affect the results of your research, so it’s vital
to be picky when selecting members.
• Focus groups possess a distinct advantage over other market
research methods. They capitalize on the moderator’s communication
with participants and the flexibility to move the discussion. It allows
you to extract meaningful insights and opinions.
• The purpose of the group is not to arrive at a consensus or agreement
on the topic. Instead, it seeks to identify and understand customer
perceptions of a brand, product, or service.
• Focus group advantages:
• Focus groups give you access to why a customer feels a certain way
about a product, and surveys help you collect supporting feedback in
large batches.
• Immediate access to customer opinions, making data collection, and
analysis quick and convenient.
• Highly flexible to adapt to the needs and opinions of the group
members.
• Easy to conduct regular discussions to eliminate inaccurate results
due to current market outlooks.
• Focus groups are perfect sources to understand the true feelings and
perceptions of your selected target audience.
 Observation
• A way to gather data by watching people, events, or noting physical
characteristics in their natural setting. Observations can be overt (subjects
know they are being observed) or covert (do not know they are being
watched).
• Participant Observation
• Researcher becomes a participant in the culture or context being observed.
• Requires researcher to be accepted as part of culture being observed in
order for success
• Direct Observation
• Researcher strives to be as ordinary as possible so as not to bias the
observations; more detached.
• Technology can be useful (i.e video, audiorecording).
• Indirect Observation
• Results of an interaction, process or behavior are observed (for example,
measuring the amount of plate waste left by students in a school cafeteria to
determine whether a new food is acceptable to them).
• Observation as a data collection method can be structured or
unstructured. In structured or systematic observation, data
collection is conducted using specific variables and according to a
pre-defined schedule.
• Unstructured observation, on the other hand, is conducted in an
open and free manner in a sense that there would be no pre-
determined variables or objectives.
• Moreover, this data collection method can be divided into overt or
covert categories. In overt observation research subjects are aware
that they are being observed. In covert observation, on the other
hand, the observer is concealed and sample group members are not
aware that they are being observed.
• Covert observation is considered to be more effective because in this
case sample group members are likely to behave naturally with
positive implications on the authenticity of research findings.
• Advantages of observation data collection
method include direct access to research
phenomena, high levels of flexibility in terms of
application and generating a permanent record
of phenomena to be referred to later.
• At the same time, this method is disadvantaged
with longer time requirements, high levels of
observer bias, and impact of observer on primary
data, in a way that presence of observer may
influence the behaviour of sample group
elements.
 Research design in case of descriptive research
studies

• One of the components of research is getting enough information about

the research problem—the what, how, when and where answers, which is
why descriptive research is an important type of research.
• It is very useful when conducting research whose aim is to identify
characteristics, frequencies, trends, correlations, and categories.
• In other words, it does not involve changing the study variables and does
not seek to establish cause-and-effect relationships.
• Descriptive research includes surveys and fact finding enquiries of
different types. The main objective of this type of research is to describe
the state of affairs as it exists at present.
• The main characteristic of this method is that the researcher has no
control over the variables; he can only report what has happened or what
is going on.
 Continued.
• When to use descriptive research design?
• Determining when to use descriptive research depends on the
nature of the research question. Before diving into the reasons
behind an occurrence, understanding the how, when, and where
aspects is essential.
• Descriptive research design is a suitable option when the research
objective is to discern characteristics, frequencies, trends, and
categories without manipulating variables.
• It is therefore often employed in the initial stages of a study before
progressing to more complex research designs. To put it in another
way, descriptive research precedes the hypotheses of explanatory
research. It is particularly valuable when there is limited existing
knowledge about the subject.
• Some examples are as follows, highlighting that these questions
would arise before a clear outline of the research plan is established:
• In the last two decades, what changes have occurred in patterns of
urban gardening in Mumbai?
• In social sciences, an example could be a study analyzing the
demographics of a specific community to understand its socio-
economic characteristics.
• In business, a market research survey aiming to describe consumer
preferences would be a descriptive study.
• In ecology, a researcher might undertake a survey of all the types of
monocots naturally occurring in a region and classify them up to
species level.
 Research design in case of
hypothesis testing /Experimental
design research studies
 Basic Principles of Experimental
Design by R.A.
Fisher

⚫Principle of replication – repeated

experiment by more than one times
⚫Principle of randomization – protection
against the extraneous factors
⚫Principle of local control – to measure
the variability of extraneous factor and to
eliminate it from the experimental error
Important Experimental Designs

(a)Informal experimental designs

(b)Formal experimental designs:
 Informal Experimental Designs

1. Before-and-after without control design

2. After-only with control design
3. Before-and-after with control design
 1. Before-and-After without
Control Design
⚫ An area is selected.
⚫ Dependent variable is measured before the introduction
of the treatment and again after the treatment.
⚫ Effect of treatment would be equal to the level of
phenomenon after the treatment (Y) minus level of
phenomenon before the treatment (X).
⚫ For example, study of treatment of malaria to patients
Treatment Effect =Y - X
 2. After-Only with Control Design
⚫ Two groups/ areas selected.
⚫ One as a test area and another as a control area (Z).
⚫ Treatment introduced only in test area (Y).
⚫ Dependent variable measured in both areas at the same time.
Treatment Effect = Level of phenomenon after treatment
(Y) –
Level of phenomenon without treatment (Z)
⚫ Based on the assumption that two areas are identical with
respect to their behavior towards phenomenon considered.
⚫ This design superior to before-and-after without control
design.
 3. Before-and-After with Control
Design
⚫ Two areas selected.
⚫ Dependent variable measured in both areas for an identical
time period - I before treatment.
⚫ Treatment introduced only in test area.
⚫ Dependent variable measured in both areas for an identical
time period - II after introduction of treatment.

Treatment Effect = Change in Dependent Variable in Test

Area (Y – X) - Change in Dependent Variable in
Control Area (Z – A)
= (Y – X) – (Z – A)
Test Area: Level of Phenomenon Before
Treatment (X) in time period - I
Level of Phenomenon After Treatment (Y) in time period -
II Control Area: Level of Phenomenon without Treatment
(A) in time period - I
Level of Phenomenon without Treatment (Z) in time
period - II
⚫ Superior to the previous two designs 1 and 2.
 Formal Experimental
Designs
1. Completely randomized design
2. Randomized block design
3. Latin square design
4. Factorial design
 1. Completely
Randomized Design

Involves two principles - Principle of replication &

Principle of randomization.
Characteristics
⚫ Simplest and easier

⚫ Subjects are randomly assigned to experimental treatments or

vice versa.
⚫ One way ANOVA is used for analysis.
⚫ Used when experimental areas happen to be homogeneous.

⚫ When all the variations due to uncontrolled extraneous factors

included under chance variation then referred as C.R. design.
 2. Randomized Block
Design
⚫ An improvement over C.R. design.
⚫ Subjects divided into groups known as blocks.

⚫ Within each group the subjects are relatively homogeneous in

respect to some selected variable.
⚫ Number of subjects in a given block equals to the number of
treatments.
⚫ One subject in each block assigned randomly to each
treatment.
⚫ Extraneous factors held fixed.
⚫ Each treatment appears the same number of times in each
block.
⚫ Lastly, analyzed by two way ANOVA.
 3. Latin Square Design
⚫ A Latin Square is a table filled with a x b different symbols in such
a way that each symbol occurs exactly once in each row and
exactly once in each column.
⚫ Frequently used in agricultural research.
⚫ Used when two major extraneous factors exists.
⚫ Treatments are so allocated among the plots that no treatment
occurs more than once in any one row or any one column.
⚫ Two blocking factors may be represented through rows and
columns.
 An Example
Five types of fertilizers – A, B, C, D, E
Two blocking factors – Soil fertility level and differences in seeds

FERTILITY LEVEL

I II III IV V

X1 A B C D E

X2 B C D E A
DIFFERENCES

X3 C D E A B
SEEDS

X4 D E A B C

X5 E A B C D
 4. Factorial Design

⚫Used in experiments where the effects of varying

more than one factor are to be determined.
⚫Used in several economic and social
phenomena where usually a large number of
factors affect a particular problem.