Research Methodology

1. Research Methodology

2. Definition: Business Research • Systematic and Scientific inquiry aimed at providing information to solve managerial problems

3. Basic (Fundamental) Research • Generalization of natural phenomenon or human behavior • Conducted to solve perplexing questions of a theoretical nature E.g. Cars running on compressed air

4. Applied Research • Solution to some practical problems • Conducted to reveal answers to specific questions related to action or policy needs E.g. Study of declining sales of particular car model

5. Why business research? • Manager wants improve decision making skill by widening his knowledge • to reduce uncertainty • to justify his decision

6. Business Research • Corporate research: • Forecasting • Economic trends • Business & Industry trends • Technology trends • Global environment

7. Financial Research: • Portfolio analysis • Business opportunities & threats analysis • Cost analysis • Production: • Total quality management

8. Sales & Marketing: • Market potential • Market share • Market segmentation • Sales analysis • Sales forecasting • New product testing • Effectiveness of marketing strategies

9. Human resources: • Morale & job satisfaction • Employee productivity • Organizational effectiveness • Training needs

10. Information system: • Data mining • Technical support satisfaction • Enterprise Resource Planning (ERP)/Customer Relationship Management (CRM) systems

11. Types Of Research • Exploratory • Descriptive • Predictive

12. Exploratory Research • Gather Information around the topic at elementary level • Leads to insights into the problem E.g. a pharmaceutical company wants to expand

13. Descriptive Research • Fact finding inquiries • Who, what, when, how, where etc • No powerful inference is drawn E.g. mining company databases for describing the nature customer complaints.

14. Predictive Research • Cause –effect relationship • Conducted for well understood problems E.g. sale of small cars depends on price, fuel efficiency, engine

15. Research Process • Formulating Research problem • Select Research design • Data collection and presentation • Data analysis and interpretation • Research reporting

16. Formulating a Research Problem

17. Problem:Dilemma faced by manager E.g. Software consulting firm is witnessing high attrition of employees

18. Management Question • What are the reasons for high attrition rate? • What steps to be taken to control it?

19. Research Question • What is the employee satisfaction level in the organisation? • What are the corrective measures available?

20. Investigating Question • Timings, travelling, facilities available, work culture • Annual increment, additional incentives, permission to pursue higher education

21. Measurement Question • Questions to be asked to employees regarding timings, travelling, facilities available, work culture, additional incentives, permission to pursue higher education etc.

22. Formulated Research Problem • What characteristics are to be studied? • What data is to be collected? • What relations need to be explored?

23. Research Design • Research design is a plan and structure of investigation to obtain answers to research questions

24. Exploratory Studies Aim is to find the practicality to do formal research in this area The techniques used are • Secondary data analysis • Experience Survey • Focus groups • Depth interviews

25. Secondary Data Analysis • Review of prior research studies • Survey of concerned literature: Catalogs, subject guides and electronic indexes in libraries help to identify periodicals and books • Online service using computer This method supplies excellent background, identifies suitable methodology and decision making patterns.

26. Experience Survey • Seeking information from persons experienced in the area of study by interviewing This technique gives practicality of doing study, facilities available, factors need to be controlled

27. Focus Groups • Panel of people led by a trained moderator • Facilitator introduces the topic and encourages the group to discuss it among themselves Quickly and inexpensively grasp the core issues

28. Depth Interviews • Carried out to obtain information on sensitive issues to discover motives and desires • Respondent is taken in confidence • Answers are obtained by probing • Indirect questions provide information on attitude towards the subject

29. Descriptive Studies The research design in such studies should be rigid ,no bias ,reliable and should aim at • Description of the characteristics associated with the population • Estimates of the proportion of the population possessing the characteristics • Studying association among these characteristics

30. Causal Studies • If Changes in one variable are responsible for changes in another variable then the former variable is independent and later is dependent • Drawing inferences about causal relationship require procedures that will reduce bias and increase reliability

31. Design of Experiments • Replication: repetition of observation • Random assignment: each person must have equal chance of exposure • Control: All other factors must be held constant

32. Informal Experimental Designs

33. Before and after without control Design Level before--treatment-- level after X Y treatment effect : Y-X

34. After only control Design Level control group after Z Level test group after Y treatment effect : Y-Z

35. Before and after with control Design Control group Level before ------------ level after A Z Test group Level before--treatment-- level after X Y • treatment effect : (Y-X)-(Z-A)

36. Formal Experimental Designs • Completely randomised design • Randomised block design • Latin square design • Factorial design

37. Completely randomised Design Randomisation, Replication

38. Randomised block Design Randomisation, Replication, Local control

39. Latin square Design Randomisation, Replication, Local control

40. Factorial Design • Treatments are combination of factors at different levels. • Effects of the factors rather than treatments are studied.

41. Ex Post Facto Design • Widely used in business research • Not possible to assign treatments • Study of subjects exposed to treatments to seek causal explanation

42. Sampling Design • Census versus sample Census: small population Sample: greater speed, less cost, greater accuracy, inevitable Sample must represent all characteristics of the population. (no bias, precise)

43. Types of Sampling • Probability sampling • Non probability sampling

44. Probability Sampling • Simple random sampling • Systematic sampling • Stratified sampling • Cluster sampling • Multi-stage sampling

45. Non probability Sampling • Judgment sampling • Quota sampling

46. Sample Size Sample size should be proportional to population size Larger sample is required if • Greater dispersion within population • High confidence level in the estimates • Narrow interval range budget constraint may influence sample size

47. Measurement and Scaling • Measurement: assigning numbers to objects with a set of rules • Data types: Classification - nominal Order - ordinal Distance - interval Origin - ratio

48. Tests of Measurement • Validity: the extent to which the measuring tool measures what we are interested in measuring • Reliability: Accuracy and precision of measurement procedure • Practicality: economy, convenience and interpretability

49. Scaling Procedure for assignment of numbers to objects Types of measurement scale • Rating • Ranking • Categorization

50. Rating Scales E.g. Survey on mobiles