BRM Notes

Q: 1 Define business research, also narrate when business research is
needed, explain by citing examples.

Business research is defined as the systematic and objective process of generating
information for aid in business decisions. This research information should be (1) scientific;
not intuitive or haphazardly gathered (2) objective (3) impersonal.
Business research can be used for any aspect of the enterprise. By providing appropriate
information, research should be an aid to managerial judgment although it should not be a
substitute for it. Applying the research is a managerial art in itself. All types of
organizations that engage in some kind of business activity can use business research.
Basic Research and Applied Research
There are two types of business
research:
A. Basic or pure research attempts to expand the limits of knowledge. (Wh and How Qs)
B. Applied research is conducted when a decision must be made about a specific real-
life problem. (Johnson & Johnson)
Both types of research employ the scientific method, the analysis and interpretation of
empirical evidence (facts from observation or experimentation), to confirm or disprove prior
conceptions.
When Is Business Research Needed?

A manager considering whether or not to conduct research must consider four things:
A. Time constraints: Is there sufficient time available before a managerial decision

must be made?
B. Availability of data: Is the information already on hand adequate for making the
decision? If not, can appropriate information be made available?
C. Nature of the decision: Is the decision of considerable strategic or tactical
importance?
D. Benefits vs. costs: Does the value of the research information exceed the cost of
conducting the research?
If the answer to any of these questions is ―no,‖ then business research should not
be conducted.
Q: 2 TYPES OF BUSINESS RESEARCH`

Business research can be classified on the basis of technique (e.g., experiments, surveys,
or observation studies) or purpose. Classifying business research on the basis of its
purpose, it can be broken into three categories:
A. Exploratory studies are conducted to classify the nature of problems. It is not

intended to provide conclusive evidence from which a particular course of
action can be determined. Exploratory research merely crystallizes the
problem and identifies information needed; subsequent research is usually
Business Research Methodology Notes- prepared and compiled by Dr. Mamta Brahmbhatt-
Professor, B.K. School of Business Management, Gujarat University exclusively for the use of evening
executive students. Page 1
required. (Rasna story)
B. Descriptive research is conducted to discover and determine the

characteristics of a population. It seeks to determine the answers to the
questions ―who,‖ ―what,‖ ―when,‖ ―where,‖ and ―how.‖ It does not tell
us
―why.‖ Although it is impossible to completely eliminate error, this type
of research should be conducted as accurately as possible because, unlike
exploratory research, the evidence it provides will be used to determine a
course of action. (Sandwich story :black and red colour)
C. Causal research attempts to identify cause-and-effect relationships between

variables. It usually follows exploratory and descriptive research and,
therefore, the researchers are quite knowledgeable about the subject. Causal
research attempts to establish that when we do one thing (e.g., increase
advertising), another will follow (e.g., increased sales).
Q: 3 Explain the stages in the research process. (Menstrual Cup:

Women Hygiene Case)
A number of alternatives are available to the researcher during each stage of the research
process. There is no best way to research, and the method chosen will depend on the
resources (time, money, manpower, etc.) available and the results one wants. The six stages
in the research process are as follows:
A. Problem discovery and definition: Most research programs are initiated

because managers are uncertain about some aspect of the firm’s marketing
program. Identifying the problem, that is defining the problem, gives a sense of
direction to the investigation. Business research must have clear objectives and
definite designs. Problem definition is possibly the most important, yet most
neglected, area of business research.
1. At this stage in the project, exploratory research is often used because it helps refine
the problem into one that can be researched. Exploratory research progressively
narrows the scope of the research.
There are four basic exploratory techniques: secondary data, pilot studies, case studies,
and experience surveys. Secondary data or historical data is data previously collected and
assembled for some project other than the one at hand. In contrast, primary data is
gathered specifically for the project at hand. Secondary data can often be found inside the
company, at public libraries and universities, or purchased from a firm specializing in
providing information. Secondary data can usually be gathered faster and at less cost than
primary data, but it can be outdated or may not exactly fit the researcher’s needs.
Pilot studies (a collective term to group together a number of diverse research

techniques) collect data from the ultimate subject of the research project to serve as a
guide for the larger study. The data collection methods are informal and findings may
lack precision, but may suggest possible topics for formal investigation. A pilot study
may send a manager out to experience what workers, consumers, or others experience,
or may take the form of a focus group interview that is a loosely structured group
dynamics session.
B. Planning the research design: A research design is a master plan specifying the
methods and procedures for collecting and analyzing the needed information. The
research design should consider the research objectives and should determine the
sources of information, the design technique (e.g., survey or experiment), the
sampling methodology, the time schedule for the research, and the budget for the
research.
1. Selecting the appropriate research design: There are four basic research designs for
causal and descriptive research and certain factors, e.g., cost, urgency, availability of
data, etc., should determine which design is used.
2. Surveys: The most common method of generating primary data. It is a technique in

which information is gathered from a sample of people by use of a questionnaire.
Questionnaires can be administered by mail, phone, or person-to-person. Each
administration method has its advantages and disadvantages, and all are appropriate in
different situations.
3. Experiments: Hold the greatest potential for establishing cause-and-effect

relationships because they allow investigation of changes in one variable while
manipulating one or two other variables under controlled conditions. Causal
factors can be isolated because outside factors do not come into play. One
example of experimentation is test marketing. An experiment controls conditions
so that one or more variables can be manipulated in order to test a hypothesis.
4. Secondary data studies: Typically this involves using past data to project future
figures for a particular event or phenomena. This technique uses greater
quantitative sophistication than is involved in using secondary data at the
exploratory level of research, but it still has the same advantages and
disadvantages attached to it.
5. Observation techniques: The objective of research is often merely to record
what can be observed. The advantage of it is that it is nonreactive and the data can
be unobtrusively and passively collected without a respondent’s direct
participation. For the inexperienced researcher it can be difficult to administer and
its biggest disadvantage is that it cannot observe intangible states of mind.
6. Evaluating research designs: There is no one best research design; there are many
alternative methods for solving a problem. Knowing how to select the most
appropriate research design develops with experience.
C. Sampling: Involves any procedure that uses a small number of items, or that uses
part of the population to make a conclusion regarding the whole population - a
sample is a subset from a larger population. The results of a statistically sound
sample should have the same characteristics as the population. Of course, errors
can be made especially if the target population is not representative of potential
customers, or if the sample size is too small, or not a probability sample, or if the
unit is not randomly selected.
There are two basic types of samples:
1. Probability sample: In which every member of the population has a known,

non-zero probability of selection.
2. Non-probability sample: In which the sample is selected on the basis of
personal judgment.
D. Data collection: Once the research design, including the sampling plan, has been
formalized, the process of collecting information from respondents may begin.
Depending on the design chosen, there are many methods of data collection. For
example, the survey method requires direct participation, while an unobtrusive
method of collecting data does not. A pre-testing phase, using a small subsample,
may help minimize errors in the main study.
E. Data processing and data analysis: Data must be converted, through editing and
coding, into a format that will answer the marketing manager’s questions. Editing
involves checking the data forms for omissions, legibility, and consistency in
classification. Before the edited data can be tabulated, meaningful categories must
be established for groups of responses - this process is called coding and it
facilitates computer or hand tabulation. Analysis is the application of logic to the
understanding of data that has been gathered; it varies from the simple
determination of patterns to complex statistical analysis.
F. Conclusions and report preparation: This stage involves preparing the

information and making conclusions which will be useful for decision-making
purposes. The research report should effectively communicate the research
findings. If a research report is too long, complex, etc., for managers to use, then it
is totally useless.
Q:4 Discuss the ethical issues w.r.t. respondent, researcher

and client sponsor.
Q: 4.1 Discuss Rights and Obligations of the Respondent.
The ethical issues vary somewhat depending on whether or not the participant has given
willing and informed consent. In an unobtrusive observation study, the participant’s rights
differ from a survey respondent’s rights because he or she has not willingly consented to be
a subject of the research.
A. The Obligation to be Truthful
This issue involves the subject’s freedom to choose whether or not to comply with the
investigation request. Traditionally, researchers have assumed that individuals make an
informed choice. However, critics have argued that the old, the poor, the poorly educated,
and other underprivileged individuals may not be aware of their right to choose or of their
right to be left alone.
Another aspect of the privacy issue is illustrated by the question ―Is the telephone call
that interrupts someone’s favorite television show an invasion of privacy?‖ Generally,
certain standards of common courtesy have been set by interviewing firms.
In an observation study, the major ethical issues concern whether the observed behavior is
public or private. Generally it is believed unobtrusive observation of public behavior in
such places as stores, airports etc. is not a serious invasion of privacy. However,
recording private behavior with hidden cameras represents a violation of this right.
B. Deception
In a number of situations, the researcher creates a false impression by disguising the

purpose of the research. Bluntly stated, to avoid possible biased reactions, the subject is
lied to. Generally, such deception is justified under two conditions: (1) Investigators
assume that no physical danger or psychological harm will be caused by the deception,
and (2) the researcher takes personal responsibility for informing the respondent of the
concealment or deception after the research project ends.
The issue of deception concerns the means-to-an-end philosophical issue. The major
question is: Does a small deception substantially increase the value of the research?
Observation methods present a number of problems concerning the deception of subjects.
C. The Right to be Informed
It has been argued that subjects have a right to be informed of all aspects of the research.
This includes information about its purpose and sponsorship.
When there is a clear-cut deception or when the researcher perceives that there may be
psychological harm caused by participating in an experiment (a rarity in business
research), debriefing is often performed.
If the public understands why survey or experimental information has been collected and
that the researchers may be trusted with private information, it may be easier in the long
run to conduct research.
Q: 4.2 RIGHTS AND OBLIGATIONS OF THE RESEARCHER
General business ethics should be a standard for business research firms and business
department
More has been written about the ethics of researchers than about those of the other parties
because this group’s purpose is clearly identifiable. A number of professional associations
have developed a code of ethics—standards and operating procedures for ethical practice
by researchers. Several major issues exist that should be further explored in this book:
The Purpose of Research is Research
Business people are expected to not misrepresent a sales tactic as marketing research. The
Federal Trade Commission has indicated that it is illegal to use any plan, scheme, or ruse
that misrepresents the true status of the person making the call as a door-opener to gain
admission to a prospect’s home, office, or other establishment. This sales ploy is
considered to be unethical as well as illegal.
Objectivity
Researchers should maintain high standards to ensure that the data are accurate.
Misrepresenting Research
Basically it is assumed that the researcher has an obligation to both the client and the
subjects to honestly analyze the data and to correctly report the actual data collection
methods.
Protect the Right to Confidentiality of Both Subjects and Clients
It is the researcher’s responsibility to ensure that the privacy and anonymity of the
respondents are preserved. If the respondent’s name and address are known, this
information should not under any circumstances be forwarded to the sponsoring
organization.
Dissemination of Faulty Conclusions
Most research code of ethics state something like ―a user of research shall not
knowingly disseminate conclusions from a given research project or service that are
inconsistent with or not warranted by the data.‖
Q:4.3 RIGHTS AND OBLIGATIONS OF THE CLIENT SPONSOR (USER)
Ethics between Buyer and Seller
The general business ethics expected between a purchasing agent and a sales
representative should hold in the marketing research situation.
An Open Relationship with Research Suppliers
The client sponsor has the obligation to encourage the research supplier to objectively
seek out the truth.
An Open Relationship with Interested Parties
Conclusions should be based on the data. A user of research should not knowingly
disseminate conclusions from a given research project or service that are inconsistent with
the data or not warranted by them.
Q:5 WHAT IS THE UNIT OF ANALYSIS?
The researcher must specify the unit of analysis. Will the individual consumer be the
source of information or will it be the parent-child dyad? Industries, organizations,
departments, or individuals, may be the focus for data collection and analysis. Many
problems can be investigated at more than one level of analysis.
WHAT ARE THE RELEVANT VARIABLES?
One aspect of problem definition is identification of the key variables. A variable is a

quality that can exhibit differences in value, usually magnitude or strength.
In statistical analysis, a variable is identified by a symbol such as X. A category or

classifactory variable has a limited number of distinct variables (e.g., sex—male or
female). A continuous variable may encompass an infinite range of numbers (e.g., sales
volume).
Managers and researchers must be careful to include all relevant variables that must be
studied in order to be able to answer the managerial problem. Irrelevant variables should
not be included.
In causal research, a dependent variable is a criterion or variable that is expected to be

predicted or explained. An independent variable is a variable that is expected to
influence the dependent variable.
Q:6 DISCUSS CATEGORIES OF EXPLORATORY RESEARCH

6.1 Discuss Focus group discussion techniques.
6.2 Discuss Projective techniques .
The purpose, rather than the technique, of the research determines whether a study is
exploratory, descriptive, or causal. A manager may choose from three general categories of
exploratory research:
CATEGORIES OF EXPLORATORY RESEARCH
A. Experience surveys
B. Secondary data analysis
C. Case study method
D. Pilot studies
1. Focus group interviews
a) Synergism
b) Serendipity
c) Snowballing
d) Stimulation
e) Security
f) Spontaneity
g) Specialization
h) Scientific scrutiny
i) Structure
j) Speed
2. Projective techniques
a) Word association
b) Sentence completion
c) Third-person technique and role playing
d) Thematic apperception test (TAT)
3. Depth interviews
A. Experience surveys: Concepts may be discussed with top executives and

knowledgeable managers who have had personal experience in the field being
researched. This constitutes an informal experience survey. Such a study may be
conducted by the business manager rather than the research department. On the other
hand, an experience survey may be a small number of interviews with experienced
people who have been carefully selected from outside the organization. The purpose
of such a study is to help formulate the problem and clarify concepts rather than to
develop conclusive evidence.
B. Secondary data analysis: A quick and economical source of background information
is trade literature in the public library. Searching through such material is exploratory
research with secondary data; research rarely begins without such an analysis. An
informal situation analysis using secondary data and experience surveys can be
conducted by business managers. Should the project need further clarification, a
research specialist can conduct a pilot study.
C. Case study method: The purpose of a case study is to obtain information from one, or
a few, situations similar to the researcher's situation. A case study has no set
procedures, but often requires the cooperation of the party whose history is being
studied. However, this freedom to research makes the success of the case study highly
dependent on the ability of the researcher. As with all exploratory research, the results
of a case study should be seen as tentative.
D. Pilot studies: The term ―pilot studies‖ is used as a collective to group
together a number of diverse research techniques all of which are conducted on a
small scale. Thus, a pilot study is a research project which generates primary data
from consumers, or other subjects of ultimate concern. There are four major
categories of pilot studies:
Focus group interviews: These interviews are free-flowing interviews with a small group of
people. They have a flexible format and can discuss anything from brand to a
product itself. The group typically consists of six to ten participants and a
moderator. The moderator's role is to introduce a topic and to encourage the
group to discuss it among themselves. There are four primary advantages of the
focus group: (1) it allows people to discuss their true feelings and convictions, (2)
it is relatively fast, (3) it is easy to execute and very flexible, (4) it is inexpensive.
One disadvantage is that a small group of people, no matter how

carefully they are selected, will not be representative.
Specific advantages of focus group interviews have to be categorized as
follows:
a) Synergism: the combined effort of the group will
produce a wider range of information, insights and
ideas than will the cumulation of separately secured
responses.
b) Serendipity: an idea may drop out of the blue, and
affords the group the opportunity to develop such an
idea to its full significance.
c) Snowballing: a bandwagon effect occurs. One
individual often triggers a chain of responses from
the other participants.
d) Stimulation: respondents want to express their ideas
and expose their opinions as the general level of
excitement over the topic increases.
e) Security: the participants are more likely to be
candid because they soon realize that the things said
are not being identified with any one individual.
f) Spontaneity: people speak only when they have
definite feelings about a subject; not because a
question requires an answer.
g) Specialization: the group interview allows the use
of a more highly trained moderator because there
are certain economies of scale when a large number
of people are ―interviewed‖ simultaneously.
h) Scientific scrutiny: the group interview can be
taped or even videoed for observation. This affords
closer scrutiny and allows the researchers to check
for consistency in the interpretations.
i) Structure: the moderator, being one of the group,
can control the topics the group discusses.
j) Speed: a number of interviews are, in effect, being
conducted at one time.
The ideal size for a focus group is six to ten relatively homogeneous people. This avoids one
or two members intimidating the others, and yet, is a small enough group that adequate
participation is allowed. Homogeneous groups avoid confusion which might occur if there
were too many differing viewpoints. Researchers who wish to collect information from
different groups should conduct several different focus groups.
The sessions should be as relaxed and natural as possible. The moderator's job is to develop
a rapport with the group and to promote interaction among its members. The discussion may
start out general, but the moderator should be able to focus it on specific topics.
An effective focus group moderator prepares a discussion guide to help ensure that the focus
group will cover all topics of interest. The discussion guide consists of written prefatory
remarks to inform the group about the nature of the focus group and an outline of
topics/questions that will be addressed in the group session.
A number of focus groups use videoconferencing. The videoconferencing industry has

improved in quality and grown dramatically in recent years. As the ability to communicate
via telecommunications and videoconferencing links have improved, the number of
companies using these systems to conduct focus groups has increased. With traditional focus
groups managers and creative personnel often watch the moderator lead the group from
behind one-way mirrors. If the focus group is being conducted ―out of town,‖ the
executive personnel usually have to spend more time in airplanes, hotels, and taxis than they
do watching the group session. With videoconferenced focus groups, they can stay home.
Streaming media is a method of making audio, video and other multimedia available in real-
time over the Internet or corporate intranets, with no download wait and no file to take up
space on a viewers hard disk. This new technology for digital media delivery now allows
researchers to ―broadcast‖ focus groups that can be viewed online. The offsite manger
uses RealPlayer or Microsoft Media Player to view focus groups on their own computer
rather than at a remote location. Except for the quality of the video when there are bandwidth
problems the experience is similar to videoconferencing.
Research using Internet for on-line qualitative exploratory research is growing rapidly.
Research companies often set up a private chat room on their company web sites for focus
group interviews. Participants in these chat room feel their anonymity is very secure. Often,
they will make statements or ask questions they would never address under other
circumstances. This can be a major advantage for company investigating sensitive or
embarrassing issues, such as sexual harassment. A disadvantage of online focus groups is
that the researcher cannot see how people are reacting.
The focus group technique has two shortcomings:

(1) Without an experienced moderator, a self-appointed leader will
dominate the session resulting in an abnormal ―halo effect‖ on
the interview
(2) there may be sampling problems.
2. Interactive Media and online Focus Group: When a person uses the Internet, he or
she interacts with a computer. It is an interactive media because the user clicks a
command and the computer responds. The use of the Internet for qualitative
exploratory research is growing rapidly. The term online focus group refers to
qualitative research where a group of individuals provide unstructured comments by
keyboarding their remarks into a computer connected to the Internet. The group
participants either keyboard their remarks during a chat room format or when they
are alone at their computers. Because respondents enter their comments into the
computer, transcripts of verbatim responses are available immediately afterward the
group session. Online groups can be quick and cost efficiency. However, because
there is less interaction between participants, group synergy and snowballing of
ideas can suffer.
Research companies often set up a private chat room on their company Web sites for
focus group interviews. Participants in these chat rooms feel their anonymity is very
secure. Often they will make statements or ask questions they would never address
under other circumstances. This can be a major advantage for a company investigating
sensitive or embarrassing issues.
Many online focus groups using the chat room format arrange for a sample of
participants to be online at the same time for about typically 60 to 90 minutes. Because
participants do not have to be together in the same room at a research facility, the
number of participants in online focus groups can be much larger than traditional focus
groups. A problem with online focus groups is that the moderator cannot see body
language and facial expressions (bewilderment, excitement, interest, etc.) to interpret
how people are reacting. Also, the moderator’s ability to probe and ask additional
questions on the spot is reduced in online focus groups, especially those in which
participants are not simultaneously involved. Research that requires tactile touch, such
as a new easy-opening packaging design, or taste experiences cannot be performed
online.
3. Projective techniques: Individuals may be more likely to give a true answer if the
question is
disguised. If respondents are presented with unstructured and ambiguous stimuli
and are allowed
considerable freedom to respond, they are more likely to express their true
feelings.
A projective technique is an indirect means of questioning that enables
respondents to ―project their beliefs onto a third party.‖ Thus,
the respondents are allowed to express emotions and opinions that would
normally be hidden from others and even hidden from themselves.
Common techniques are as follows:
a) Word association: The subject is presented with a list of words,

one at a time, and asked to respond with the first word that comes to
mind. Both verbal and non-verbal responses are recorded. Word
association should reveal each individual's true feelings about the
subject. Interpreting the results is difficult; the researcher should
avoid subjective interpretations and should consider both what the
subject said and did not say (e.g., hesitations).
b) Sentence completion method: This technique is also based on
the assumption of free association. Respondents are required to
complete a number of partial sentences with the first word or phrase
that comes to mind. Answers tend to be more complete than in word
association, however, the intention of the study is more apparent.
c) Third-person technique and role playing: Providing a
―mask‖ is the basic idea behind the third-person technique.
Respondents are asked why a third person does what he or she does,
or what a third person thinks of a product. The respondent can
transfer his attitudes onto the third person. Role playing is a dynamic
reenactment of the third-person technique in a given situation. This
technique requires the subject to act out someone else's behavior in a
particular setting.
d) Thematic apperception test (TAT): This test consists of a
series of pictures in which consumers and products are the center of
attention. The investigator asks the subject what is happening in the
picture and what the people might do next. Theses (―thematic‖)
are elicited on the basis of the perceptual-interpretive
(―apperception‖) use of the pictures. The researcher then analyses the
content of the stories that the subjects relate. The picture should
present a familiar, interesting, and well-defined problem, but the
solution should be ambiguous. Cartoon tests, or picture frustration
version of TAT, uses a cartoon drawing in which the respondent
suggests dialogue that the cartoon characters might say. Construction
techniques request that the consumer draw a picture, construct a
collage, or write a short story to express their perceptions or feelings.
4. Depth interviews: Depth interviews are similar to the client interviews of a

clinical psychiatrist. The researcher asks many questions and probes for
additional elaboration after the subject answers; the subject matter is usually
disguised.
Depth interviews have lost their popularity recently because they are time-
consuming and expensive as they require the services of a skilled
interviewer.
Q:7 WRITE A DETAILED NOTE ON SECONDARY DATA?
Secondary data are gathered and recorded by ―someone else‖ prior to (and for purposes
other than) the current needs of the researcher. Secondary data are usually historical in
nature, have already been assembled, and do not require access to respondents or subjects.
Data are simply facts. Whereas information refers to a body of facts in a format suitable for
decision making or in a context that defines relationships between pieces of data.
ADVANTAGES OF SECONDARY DATA
Acquiring secondary data is always faster and less expensive than acquiring primary data.
Many of the activities normally associated with primary data collection are eliminated.
DISADVANTAGES OF SECONDARY DATA
Secondary data may not always be available - for example, privacy laws may prevent its
access. Even if it is available, it may not be adequate to meet the needs of the researcher.
The three most common reasons that the information may not be adequate are:
A. Outdated information: Secondary data must be timely in order to predict the

future.
B. Variation in definition of terms: Researchers frequently encounter secondary
data that reports on a population of interest that is similar to, but not directly
comparable to, the population of interest to the researcher.
C. Differing units of measurement: Differing units of measurement may cause
problems if they are not identical to the researcher’s needs; often the primary study
may dictate that the data be summarized, rounded, or reported in such a way that it is
not useful to the secondary research needs. In this case data conversion may be
necessary. Data conversion is the process of changing the original form of the data to
a format suitable to achieve the research objective.
Another shortcoming of secondary data is that it may be inaccurate or even biased to support
the vested interest of the source. The reputation of the organization gathering the data should
be considered and the research design should be critically assessed. Certain sources of data,
for example the U.S. government, are more prone to acceptance.
Cross-checks of data from multiple sources — that is, comparison of the data from one
organization with the data from another source — should be made
CLASSIFICATION OF SECONDARY DATA
Internal and proprietary sources: Data that are external to the organization refers to data
created, recorded, or generated by another entity. Most organizations routinely gather, record,
and store internal data for solving future problems. For example, accounting departments
continually gather data. Aggregating or desegregating internal data is a frequent form of
internal research. By exhausting all sources within the company, researchers can avoid
duplicating another department’s data collection and research efforts.
External sources of data can be categorized as follows:
1. Books and periodicals: Books and periodicals provide a wealth of

information. Libraries stock many bibliographies, guides, directories, and
indexes. Professional journals and commercial business periodicals can be
especially valuable sources of data.
2. Government sources: Government agencies produce a prolific amount of
data. Federal government data (e.g., the Census of Population) can be
counted on for accuracy and quality of investigation. State, county, and local
government data is often more current and structured to meet local needs
than federal data.
3. Media sources: Information on a broad range of subjects is available from
broadcast and print media. The media like to show that their vehicles for
advertising are viewed or heard by the advertising target market. Such
information is generally free of charge and can be useful. However, it should
be given careful evaluation as it often covers limited aspects of a topic.
4. Commercial sources: Numerous firms specialize in selling information.

These firms provide diverse types of data, examples of which follow:
a) Market share data: Market tracking refers to the observation

and analysis of trends in industry volume and brand share over
time.
b) Scanner data: Market tracking through optical character
recognition such as the universal product code and
other optical scanners provides a wealth
of accurate and rapid product and
brand sales information collectively known as scanner data.
c) Demographic and census updates.
d) Attitude and public opinion research: Specialized syndicated
services report the findings of attitude research and
opinion polls.
e)Stock market sources: Numerous firms sell information on
aggregate market and individual stocks.
Q: 8 Detailed note on SURVEYS

Q:8.1 ERRORS IN SURVEY RESEARCH
Surveys require asking people, respondents, for information using either written or verbal
questioning. Questionnaires or interviews collect data through the mail, on the telephone, or
face-to-face. The more formal term, sample survey, emphasizes that the purpose of
contacting respondents is to obtain a representative sample of the target population. Thus, a
survey is defined as a method of primary data collection based on communication with a
representative sample of individuals.
A. Survey objectives: Type of Information Gathered: The type of

information gathered depends on a survey’s objectives. Most survey
research is descriptive research which
attempts to identify and explain a particular business activity. Business

surveys typically have multiple objectives; few gather only a single type of
factual information. Although surveys are often conducted to quantify
certain factual information, certain aspects of surveys may also be
qualitative. For example, in new-product development the qualitative
objective of a survey is often to test and refine new-product concepts.
B. Advantages of surveys: Surveys are quite flexible and, when conducted

properly, are extremely valuable to managers. They provide a quick,
inexpensive, efficient, and accurate means of assessing information about
the population. Surveys can also be poorly conducted and certain errors
can occur to render such a survey useless.
ERRORS IN SURVEY RESEARCH
A. Random sampling error: Most surveys try to portray a representative cross

section of a particular target population, but even with technically proper random
probability samples, statistical errors will occur because of chance variation.
Without increasing sample size, these statistical problems are unavoidable.
However, random sampling errors can be estimated (see Chapters 13 and 14).
B. Systematic error: Systematic errors result from some imperfect research design,
or from a mistake in the execution of the research. These errors are also called
non-sampling errors. A sample bias exists when the results of a sample show a
persistent tendency to deviate in one direction from the true value of the
population parameter. The two general categories of systematic error are
respondent error and administrative error.
1. Respondent error: If the respondents do not cooperate or do not

give truthful answers then two types of error may occur.
Nonresponse error: To utilize the results of a survey, the researcher must

be sure that those who did not respond to the questionnaire were
representative of those who did not. If only those who responded are
included in the survey then nonresponse error will occur. Nonrespondents
are most common in mail surveys, but may also occur in telephone and
personal surveys in the form of no contacts (not-at-homes) or refusals. The
number of no contacts has been increasing because of the proliferation of
answering machines and growing usage of Caller ID to screen telephone
calls. Self-selection may also occur in self-administered questionnaires; in
this situation, only those who feel strongly about the subject matter will
respond, causing an over-representation of extreme positions. Comparing
demographics of the sample with the demographics of the target population
is one means of inspecting for possible biases. Additional efforts should be
made to obtain data from any underrepresented segments of the population.
For example, call-backs can be made on the not-at-homes.
b) Response bias: Response bias occurs when respondents tend
to answer in a certain direction. This bias may be caused by an
intentional or inadvertent falsification or by a misrepresentation of the
respondent’s answer.
(1) Deliberate falsification: People may misrepresent
answers in order to appear intelligent, to avoid
embarrassment, to conceal personal
information, to ―please‖ the interviewer, etc.
It may be that the interviewees preferred to be viewed
as
average and they will alter their responses accordingly.
(2) Unconscious misrepresentation: Response
bias can arise from question format, question
ambiguity or content.
Time-lapse may lead to best-guess
answers.
c) Types of response bias: There are five specific categories of
response bias. These categories overlap and are by no means mutually
exclusive.
(1) Acquiescence bias: This is a response bias caused
by a respondent’s tendency to concur with a
particular position. For example,
―yea sayers‖ who accept all
statements they are asked about.

(2) Extremity bias: Some individuals tend to use extremes
when responding to questions which may cause
extremity bias.
(3) Interviewer bias: If an interviewer’s presence
influences respondents to give untrue or modified answers, the
survey will contain
interviewer bias. Respondents may wish to
appear wealthy or intelligent, or they may try to give the
―right‖ answer or the socially acceptable
answer.
(4) Auspices bias: The answers to a survey may be
deliberately or unintentionally
misrepresented because the respondent is
influenced by the organization conducting the
survey.
(5) Social desirability bias: This may occur consciously
or subconsciously. Answers to
questions that seek factual
information or matters of public knowledge are usually quite
accurate, but the interviewer’s presence may increase a
respondent’s tendency toward an
inaccurate response to a sensitive
question in an attempt by the respondent to gain
prestige in the interviewer’s mind.
2. Administrative error: The results of improper administration or execution of the

research task are examples of administrative error. Such errors are
inadvertently caused by confusion, neglect, omission, or some other blunder.
There are four types of administrative error:
a) Data processing error: The accuracy of the data processed by computer

depends on correct data entry and programming. Mistakes can be
avoided if verification procedures are employed at each processing
stage.
b) Sample selection error: This type of error is a systematic error that
results in an unrepresentative sample because of an error in either the
sample design or execution of the sampling procedure.
c) Interviewer error: Interviewers may record an answer incorrectly or
selective perception may influence them to record data supportive of
their own attitudes.
d) Interviewer cheating: To avoid possible cheating, it is wise to inform
the interviewers that a small sample of respondents will be back to
confirm that the interview actually took place.
Q:10 CLASSIFICATIONOF SURVEY RESEARCH METHODS
Surveys can be classified in three ways.
A. Method of communication: Surveys can be classified according to the method
of communication, telephone, mail, or personal interviews.
B. Structured and disguised questions: A structured question limits the number of

responses available; whereas unstructured questions tend to be open-ended which
allows the respondent considerable freedom in responding. The researcher can also
disguise the questions which is particularly advisable if the subject matter is of a
threatening nature. Other questions do not require disguising as it is assumed that the
respondent is willing to reveal the information. Questions can be categorized
according to their degree of structure and disguise. This helps in the selection of the
appropriate communication medium for conducting the survey. However, it is not
always easy to categorize the surveys as the categories are not clear-cut and most
surveys are a hybrid of structured and unstructured questions.
C. Classifying surveys on a temporal basis:
1. Cross-sectional study: This is the most common type of study in which the data is
collected at a single point in time. In such a study, various segments of the population
are sampled so that relationships among variables may be investigated by cross-
tabulation.
2. Longitudinal study: In longitudinal studies, respondents are questioned at different
points in time so that changes occurring can be observed over time. Longitudinal
studies which involve two or more samples at different times are called cohort studies
because similar people are expected to be in each sample over time. Such studies can
also be called tracking studies because they are designed to compare aggregate trends
and identify changes. Having two or three different sample groups avoids response
bias which might normally result from prior interview, but the researcher can never be
sure that the changes in the variable being measured are not actually due to having
different people in the sample. Panel Study: This is a longitudinal study which
includes gathering data from the same sample over time. The panelists record their
purchasing habits in a diary for a set period of time. Panels are generally expensive
and, thus, are usually managed by contractors which specialize in maintaining
consumer panels. Such panels enable the investigator to keep track of repeat
purchases, behavior habits affected by changes in price, special promotions, or other
aspects of business strategies
Q:11 Survey Research: Basic Methods of Communication with Respondents.

(only points are given, self study)
1. PERSONAL INTERVIEWS
A. The opportunities for feedback
B. Probing complex answers
C. Length of interview
D. Complete questionnaires
E. Props and visual aids
F. Anonymity of respondent
G. High participation
H. Door-to-door interviews
I. Intercept interviews in malls and other high-traffic areas
J. Disadvantages of personal interviews
K. Callbacks
2. TELEPHONE INTERVIEWS
A. Central location interviewing
B. Computer-assisted telephone interviewing
C. Speed
D. Cost
E. Absence of face-to-face contact
F. Cooperation
G. Representative samples
H. Lack of visual medium
I. Limited duration
J. Callbacks
3. SELF-ADMINISTERED
QUESTIONNAIRES MAIL SURVEYS
A. Geographic Flexibility
B. Cost
C. Respondent convenience
D. Anonymity of respondent
E. Interviewer's absence
F. Standardized questions
G. Time is money
H. Length of mail questionnaire
I. Response rates
J. Increasing response rates to mail surveys
1. Cover letter
2. Monetary incentives
3. Interesting questions
4. Keying mail questionnaire
5. Follow-ups
6. Preliminary notification
7. Survey sponsorship
4. PRINTED, SELF-ADMINISTERED 5.
QUESTIONNAIRES E-MAIL SURVEYS
6.INTERNET SURVEYS
A. Quick and Cost Effective
B. Visual and Interactive
C. Respondent Participation and Cooperation
D. Representative Samples
E. Accurate Real-time Data Capture
F. Callbacks
G. Personalized and Flexible Questioning
H. Respondent Anonymity
I. Increasing Response Rates
J. Security Concerns
Q:12 Write a note on observation
Scientific observation is the systematic process of recording behavioral patterns of people,
objects, and occurrences without questioning or communicating with them. The researcher
utilizing the observation method of data collection witnesses and records information as
events occur, or compiles evidence from records of past events.
WHAT CAN BE OBSERVED?
Six kinds of behavior of people and objects can be observed:

A. Human behavior and physical actions
B. Verbal behavior
C. Expressive behavior
D. Spatial relations and locations
E. Temporal patterns
F. Physical objects
G. Verbal records
Observation has certain limitations; it cannot be used to describe any cognitive phenomena,
and can only be used to observe behavior of a short duration.
NATURE OF OBSERVATION STUDIES
The unobtrusive or nonreactive nature of the observation method often generates data without
the subject’s knowledge. Visible observation occurs when the subject knows the observer is
there, and hidden observation occurs when the subject is unaware of the researcher’s
presence. Hidden observation does minimize respondent error, but raises an ethical question
concerning privacy.
OBSERVATION OF HUMAN BEHAVIOR
A. Nonverbal behavior: Behavioral scientists have recognized that nonverbal behavior

can be a communication process by which meanings are exchanged between
individuals. Thus, observation of nonverbal communication may hold a considerable
amount of promise for business researchers. It is a particularly useful technique when
a particular respondent cannot express their reaction to a product. For example, a
child playing with a toy cannot express his opinion of it.
B. Supplementary evidence: Nonverbal behavior may also be used to supplement
information from interviews.
C. Direct observation: Direct observation can produce a detailed record of what events
occur or what people actually do. The observer plays a passive role and merely
records what he sees. Many types of data can be recorded more accurately through
direct observation than through questioning the subjects. For example, finding out the
amount of time that each customer spends in the different departments of a large store
can be easily done by observing the customers, but how many of those customers
could actually tell you how long they had spent in each department. In direct
observation a respondent is never asked to recall, perhaps inaccurately, an event.
In some cases, observation is the most straightforward method of data collection; in

other cases, it may be the most economical. Certain data may be quickly and easily
obtained through observation - for example, race or sex. Another common use of
observation is recording the decision time necessary to make a choice between two
alternatives, or the response latency. It is presumed that response latency indicates the
strength of preference between alternatives.
D. Errors associated with direct observation: Despite the fact that there is no interaction
with the respondent, direct observation is not error free. Observer bias may occur;
that is, a distortion of measurement resulting from the cognitive behavior or actions of
the witnessing observer. Accuracy is affected if the observer does not record every
detail that describes the observation, and there may be variations in the observers’
interpretations of the actions, events, etc.
OBSERVING SOCIAL SETTINGS
In many situations the purpose of the observation is to summarize, systematize, and simplify
the activities, meaning, and relationships in a social setting. Some common elements that are
observed are: the participants, the setting, the purpose that brought the participants together,
the social behavior, and the frequency and duration of the social setting.
Participant observation refers to situations where an observer gains firsthand knowledge by

being in or around the social setting that is being investigated.
SCIENTIFICALLY CONTRIVED OBSERVATION
The creation of an artificial environment to test a hypothesis is called contrived observation

and such a setting can increase the occurrence of certain behavioral patterns. For example, the
observer can pretend to be a ―shopper‖ in order to investigate a salesman’s behavior.
OBSERVATION OF PHYSICAL OBJECTS
Physical phenomena may be the subject of an observation study. Physical-trace evidence is

a visible sign of some past event or occurrence. For example, the wear and tear of a book
gives an indication of how often it has been read.
Through the use of physical traces, a researcher can often record data that a respondent could
not recall accurately. For example, a ―pantry audit‖ counts the packages of groceries
in a consumer’s home, not the responses from individuals. This eliminates problems such as
inaccuracy or lack of truthfulness; however, such fieldwork can be expensive and it is not
always easy to conduct exploratory research. The evidence it provides will be used to
determine a course of action.
CONTENT ANALYSIS
Content analysis: Content analysis obtains data by observing and analyzing the content of
advertisements, letters, articles, etc. It deals with the study of the message itself. Specifically,
this technique measures the extent of emphasis on omission of any given analytical category.
For example, the content of an advertisement might be investigated with regard to the use of
words, characters, or space and time relationships.
Such a study of the content of communication is more sophisticated than simply counting the
items; it requires a system of analysis to secure relevant data. An example of content analysis
is projecting social trends through the use of newspaper content analysis.
MECHANICAL OBSERVATION
In many situations, the primary means of observation is mechanical rather than human. For
example, the Nielsen Television Index system for estimating the nation’s TV audiences
utilizes a consumer panel and mechanical observation to obtain ratings for TV programs.
Most organizations record how many people visit their Web sites. A ―hit‖ occurs when a
user clicks on a single page of a web site. If the visitor clicks on many places to access
graphics, etc., this will result in multiple hits on that page. Organizations with Web sites
consisting of multiple pages find it useful to track ―page views‖ or single, discrete
clicks on individual pages. Page views more conservatively indicate how may users visit
each individual page on the Web site. It may also be useful to track the path or sequence of
pages that each visitor follows. A variety of information technologies are used to measure
web traffic and to maintain access logs. The business research companies that track which
sites on the World Wide Web are most popular install a special tracking program onto
personal computers of a sample of computer users who have volunteered to participate in the
research effort.
A. Measuring physiological reactions: Business researchers have used a number of

mechanical devices to evaluate consumers’ physical and physiological reactions to
packaging, advertising copy, and other stimuli. There are four major devices used:
1. Eye tracking monitors: These record how the subject actually reads or views an
advertisement. The researcher can also measure unconscious eye movements
using an oculometer; this helps advertisers identify and emphasize the selling
points of an advertisement.
2. Pupilometer: This device observes and records changes in the diameter of the
subject’s pupils. Changes in pupil size may be interpreted as changes in cognitive
activity resulting from the stimulus.
3. Psychogalvanometer: This measures galvanic skin response (GSR) which is a
measure of involuntary changes in the electrical resistance of the skin. This device
utilizes the assumption that physiological changes accompany emotional reactions
to advertisements, packages, etc.
4. Voice pitch analysis: This measures emotional reactions through physiological
changes in a person’s voice.
The major disadvantage of these devices is that subjects are usually placed in an artificial
setting and are aware of the fact that they are being observed.
B. Scanner-based research: The use of lasers for character recognition and the bar code
technology with UPC has accelerated the use of technological observations in business
research. The establishment of a scanner-based consumer panel to replace the
consumer purchase diaries is one of the primary ways of implementing this type of
research. Advances in bar code technology may lead to at-home screening systems
which will use hand-held wands that read UPC symbols.
.
Q:13 MEASUREMENT
A rule is a guide instructing us what to do. An example of a measurement rule might be

―assign the numerals 1 through 7 to individuals according to how brand loyal they are. If
the individual is an extremely brand loyal individual, assign a 1. If the individual is a total
brand switcher with no brand loyalty, assign a 7.‖ Operational definitions help the researcher
specify the rules for assigning numbers.
TYPES OF SCALES
A scale may be defined as any series of items that are progressively arranged according to
value or magnitude into which an item can be placed according to its quantification. In other
words, a scale is a continuous spectrum or series of categories. The purpose of scaling is to
represent, usually quantitatively, an item’s, a person’s, or an event’s place in the spectrum.
The four types of scale in business research are as follows:
A. Nominal scale: The simplest type of scale. The numbers or letters assigned to objects
serve as labels for identification or classification. The first drawing in Exhibit 13.3
depicts the number 7 on a horse’s color. This is merely a label for betters and horse
racing enthusiasts.
B. Ordinal scale: This scale arranges objects or alternatives according to their

magnitude. In our race horse example, we assign a 1 to a win position, a 2 to the place
position and a 3 to a show position. A typical ordinal scale in business asks
respondents to rate brands, companies, and so on as ―excellent,‖ ―good,‖
―fair,‖ or
―poor.‖ We know that ―excellent‖ is better than ―good,‖ but we don’t know by
how much.
C. Interval scale: Exhibit 13.3 depicts a horse race in which the win horse was two
lengths ahead of the place horse. Not only is the order of the finish known, but the
distance between the horses is known. Interval scales not only indicate order, they
measure order (or distance) in units of equal intervals. The location of the zero point is
arbitrary. The classic example of an interval scale is the Fahrenheit temperature scale.
If the temperature is 80 , it cannot be said that it is twice as hot as a 40 temperature.
D. Ratio scale: Ratio scales have absolute rather than relative scales. For example, both
money and weight are ratio scales because they possess an absolute zero and interval
properties. The absolute zero represents a point on the scale where there is an absence
of the given attribute. However, for most behavioral business research, interval scales
are typically the best measurements.
Q:17 HOW TO SELECT A MEASUREMENT SCALE, DISCUSS RATING SCALES.
(Very very important)
A. Is a ranking, sorting, rating, or choice technique best?
B. Should a monadic or comparative scale be used?
C. What type of category labels, if any, will be used for the rating scale?
D. How many scale categories or response positions are required to accurately
measure an attitude?
E. Should a balanced or unbalanced rating scale be chosen?
F. Should respondents be given a forced-choice scale or a nonforced-choice scale?
G. Should a single measure or an index measure be used?
ATTITUDE RATING SCALES
Rating scales are perhaps the most common attitude measures. Some examples of ratings
scales follow.
A. Simple Attitude Scaling
In its most basic form, attitude scaling requires that an individual agree with a
statement or respond to a single question. This type of self-rating scale merely
classifies respondents into one of two categories; thus, it has only the properties of
a nominal scale. However, such scales are used if questionnaires are extremely
long, or for other specific reasons. A number of simplified scales are merely
checklists.
Most attitude theorists believe that attitudes vary along continua. The purpose of
an attitude scale is to find out an individual’s position on the continuum. These
simple scales do not allow for making fine distinctions in attitudes, but several
other scales have been developed that do provide more precise measurement.
B. Category Scales
A category scale is a more sensitive measure than a scale having only two
response categories—it provides more information. Question wording is an
extremely important factor in the usefulness of these scales. Exhibit 14.1 shows
some common wordings for category scales.
C. Method of Summated Ratings: The Likert Scale
The Likert scale is an extremely popular means for measuring attitudes. With the
Likert scale, respondents indicate their own attitudes by checking how strongly
they agree or disagree with carefully constructed statements about the attitudinal
object. Individuals generally choose from approximately five (although
alternatives may range from three to nine) response alternatives: ―strongly
agree,‖
―agree,‖ ―uncertain,‖ ―disagree,‖ and ―strongly disagree.‖
To measure the attitude, researchers assign scores or weights, which are not
printed on the questionnaire, to the answers. Strong agreement indicates the most
favorable attitudes on the statement, and the weight of five is assigned to this
response. If a negative statement toward the object were given, the weights would
be reversed and ―strongly disagree‖ would be assigned the weight of 5. The
total score is the summation of the weights assigned to an individual’s total
responses. A single scale item on a summated rating scale is an ordinal scale.
In the Likert procedure, a large number of statements is generated and then an

item analysis is performed. The purpose of the item analysis is to ensure that
final items evoke a wide response and discriminate among those with positive and
negative attitudes. Items that are poor because they lack clarity or elicit mixed
response patterns are eliminated from the final statement list. This step in the
questionnaire design is too often neglected by business researchers.
D. Semantic Differential
The semantic differential is actually a series of attitude scales. This popular

attitude measurement technique consists of the identification of a product, brand,
store, or other concept, followed by a series of seven-point bipolar rating scales.
Bipolar adjectives, such as ―good‖ and ―bad,‖ anchor both ends (or poles) of
the scale. The subject makes repeated judgments of the concept under
investigation on each of the scales. Exhibit 14.3 shows a series of scales related to
measuring attitudes towards jazz saxophone recordings.
Business researchers have found the semantic differential versatile and have
modified the use of the scale for business applications. Replacing the bipolar
adjectives with descriptive phrases is an adaptation in image studies.
A weight is assigned to each position on the rating scale. Traditionally, scores are
7, 6, 5, 4, 3, 2, 1 or +3, +2, +1, 0, -1, -2, -3. Many business researchers assume
that the semantic differential provides interval data, but some critics argue that the
data has only ordinal properties since the weights are arbitrary.
E. Numerical Scales
Numerical scales have numbers as response options, rather than ―semantic

space‖ or verbal descriptions, to identify categories (response positions). If the
scale items have five response positions, the scale is called a five-point numerical
scale. The numerical scale utilizes bipolar adjectives in the same manner as the
semantic differential.
F. Stapel Scale
Modern versions of the Stapel scale place a single adjective as a substitute for the
semantic differential when it is difficult to create pairs of bipolar adjectives.
Exhibit 14.5 illustrates a Stapel scale used in a measurement of a retailer’s store
image.
The advantages and disadvantages of a Stapel scale, as well as the results, are very
similar to those for a semantic differential. However, the Stapel scale tends to be
easier to conduct and administer.
G. Constant Sum Scale
An example of a constant-sum scale is as follows:
Divide 100 points among each of the following brands according to your
preference for the brand:
Brand A
Brand B
Brand C
This constant-sum scale works best with respondents having a higher education
level. The results will approximate interval measures. However, as the number of
stimuli increase, this technique becomes more complex.
H. Graphic Rating Scales
A graphic rating scale presents respondents with a graphic continuum. The

respondents are allowed to choose any point on the continuum to indicate their
attitude. Typically, the respondent’s score is determined by measuring the length
(in millimeters) from one end of the continuum to the point marked by the
respondent. Exhibit 14.6 shows a traditional graphic scale.
The graphic scale has the advantage of allowing the researcher to choose any
interval he wishes for purposes of scoring. The disadvantage of the graphic scale
is that there are no standard answers.
A frequently used variation on the graphic scale design is the scale ladder; this
and other picture response options enhance communication with respondents.
I. Thurstone Interval Scale
The construction of the Thurstone scale is a rather complex process that requires
two stages. The first stage is a ranking operation performed by judges who assign
scale values to attitudinal statements. The second stage consists of asking subjects
to respond to the attitudinal statements.
Q:18 QUESTIONNAIRE DESIGN: AN OVERVIEW OF THE MAJOR

DECISIONS
Relevance and accuracy are the two most basic criteria to be met if the questionnaire is
to achieve the researcher’s purpose. In order to achieve this, several decisions must be
made; this chapter deals with these decisions.
WHAT SHOULD BE ASKED?
The specific questions to be asked will be a function of the previous decisions. The later
stages of the research process will have an important impact on the questionnaire
wording. When designing the questionnaire, the researcher must also be thinking about
the types of statistical analysis that will be conducted.
A. Questionnaire relevancy: A questionnaire is relevant if no unnecessary

information is collected and if only the information needed to solve the
marketing problem is obtained. To ensure information relevance, the
researcher must be specific about data needs; there should be a rationale for
each item, and all possible omissions should be considered.
B. Questionnaire accuracy. Accuracy means that the information is reliable and

valid. While it is generally believed that one should use simple,
understandable, unbiased, unambiguous, and nonirritating words, no step-by-
step procedure can be generalized. Respondents tend to be most cooperative
when the subject of the research is interesting - if questions are lengthy,
difficult to answer, or ego threatening, there is a high probability of biased
answers. Question wording and sequence substantially influence accuracy.
PHRASING QUESTIONS
There are many ways to phrase questions and many standard question formats have been
developed in previous research.
A. Open-ended response versus fixed-alternative questions: We may categorize

two basic types of questions asked on the amount of freedom respondents are
given in answering.
Open-ended response questions pose some problem or topic and ask the
respondents to answer in their own words. Open-ended response questions are
free response questions. In contrast, fixed-alternative questions, or closed
questions, give the respondents specific, limited, alternative responses and ask
the respondent to choose the response closest to his or her viewpoint. Open-
ended response questions are most beneficial when the researcher is
conducting exploratory research. By gaining free and uninhibited responses,
the researcher may find some unanticipated reaction toward the project. They
may also be useful at the beginning of an interview as they allow the
respondent to warm up to the questioning process.
The cost of open-ended response questions is substantially higher than that of

fixed-alternative questions, since the job of coding, editing, and analyzing the
data is quite extensive. Also, open-ended response questions allow potential
interviewer bias to influence the answer - even the best interviewer can take
shortcuts in recording answers.
B. Fixed-alternative questions require less interviewer skill, take less time, and
are easier for the respondent to answer. There are various types of fixed-
alternative questions.
1. Single-dichotomy or dichotomous-alternative questions: require that the

respondents choose one of two alternatives. The answer can be a simple
―yes‖ or ―no‖ or a choice between ―this‖ and ―that.‖
2. Multi-choice alternatives: there are several types.
a) Determinant choice questions ask a respondent to choose one and only
one - response from among several possible alternatives.
b) The frequency determination question is a determinant choice

question that asks for an answer about the general frequency of
occurrence.
c) Attitude rating scales, such as the Likert scale, are discussed in

chapter 13.
d) The check list question allows respondents to provide multiple

answers to a single question. In many cases, the choices are adjectives
that describe a particular object. There should be no overlap among
categories in the check list - each alternative should be mutually
exclusive, that is, only one dimension of an issue should be related to
that alternative. The researcher should strive to ensure that there are
sufficient response choices to include almost all possible answers.
However, including a category lower than the answers you expect
often helps to negate the potential bias caused by respondents avoiding
an extreme category. Respondents, rather than stating why they chose
a given product, may select an alternative among those presented. Or,
as a matter of convenience, they may select a given alternative rather
than thinking of the most correct alternative. Most questionnaires
include a mixture of open-ended and closed questions. Each form has
unique benefits; in addition, respondent boredom and fatigue are
eliminated with a change of pace offered by a mixture of question
types.
C. Phrasing questions for mail, telephone, and personal interview surveys: In

general, mail and telephone questions must be less complex than those utilized
in personal interviews. Questionnaires for telephone and personal interviews
should be written in a ―conversational‖ manner. Exhibit 15.1 illustrates how
a question may be revised for a different medium.
THE ART OF ASKING QUESTIONS
In developing a questionnaire, there are no hard and fast rules. Some guidelines have been
developed to avoid the most common mistakes.
A. Avoid complexity: use simple, conversational language: Words used in a

questionnaire should be readily understandable to all respondents. The
technical jargon of top executives should be avoided.
B. Avoid leading and loaded questions: Asking leading and loaded questions is a
major source of bias in question wording. Leading questions suggest or imply
certain answers. Such questions may result in a ―bandwagon effect‖
which threatens the study’s validity. Partial mention of alternatives is a
variation of this phenomena.
Loaded questions suggest social desirability or are emotionally charged.

Some questions invite only positive answers. In other cases, respondents are
able to interpret which answers are most socially acceptable, and the resulting
answers may not portray the respondent’s true feelings.
Invoking the status quo is a form of loading that results in bias because the
majority of people tend to be resistant to change.
Asking respondents ―how often‖ leads them to generalize about their

behavior and one is more likely to portray one’s ideal behavior rather than
one’s average behavior. An introductory counterbiasing statement to a
question, that reassures respondents that their ―embarrassing‖ behavior is not
abnormal, may help yield truthful responses. Also, an assurance of anonymity
may help elicit honest responses to embarrassing questions.
A question statement may be leading because it is phrased to reflect either the

negative or positive aspects of an issue. To control for this bias, split-ballot
technique, which reverses the wording of attitudinal questions for 50 percent
of the sample, can be used.
C. Avoid ambiguity - be as specific as possible: Items on questionnaires are

often ambiguous because they are too general. Indefinite words such as
frequently, often, ready, etc., have many different meanings. Use of such
words should be avoided - the questions should be as specific as possible.
D. Avoid double-barreled items: A question covering several items at once is

referred to as a double-barreled question and should always be avoided.
There is no need for the confusion that results in a double-barreled question.
E. Avoid making assumptions: The researcher should not place the respondent in
a bind by including an implicit assumption in the question. Another mistake
that question writers sometimes make is assuming that the respondent has
previously thought about an issue -research that induces people to express
attitudes on subjects that they do not ordinarily think about is meaningless.
WHAT IS THE BEST QUESTION SEQUENCE?
The order of questions may serve several functions for the researcher. For example, if the
respondents’ curiosity is not aroused at the outset, they can become disinterested and
terminate the interview.
A. Order bias: Order bias results from an alternative answer’s position in a set
of answers or from the sequencing of questions. Order bias tends to distort
survey results. Specific questions tend to influence more general ones.
Thus, it is advisable to ask the general questions before the specific questions
to obtain the freest of open-ended responses. This technique is known as the
funnel technique, and it allows researchers to understand the respondent’s
frame of reference before asking more specific questions about the
respondent’s particular level of information and intensity of opinion.
When using attitude scales, there also may be an anchoring effect. That is, the
first concept measured tends to become a comparison point from which
subsequent evaluations are made. Randomization of these items on a
questionnaire helps to minimize this order bias.
Rarely do marketing researchers print alternative question forms to eliminate
problems arising from order bias. A more common practice is to pencil X’s or
check marks on the printed questionnaires to indicate that the interviewer
should start a series of repetitive questions at a certain point.
Filter questions minimize the asking of questions that may be inapplicable,

and pivot questions may be used to obtain information that the respondent
may be reluctant to provide. For example, a respondent is asked ―Is
your family income over $30,000?‖ If under, ask ―Is it over or under
$10,000?‖ If over, ask ―Is it over or under $50,000?‖ Exhibit 15.2 gives an
example of a flow chart plan for a questionnaire. Notice the logical order of
questions which can help ensure the respondent’s cooperation, and can help
eliminate any confusion or indecision.
Q: SAMPLING TERMINOLOGY
I. The process of sampling involves using a small number of items or parts of the
population to make conclusions regarding the whole population. The purpose of sampling
is to estimate some unknown characteristic of the population. A sample is a subset or
some part of a larger population.
A population (finite group) or universe (infinite group) is any complete group sharing
some common set of characteristics. The term population element refers to and
individual member of the population. A census is an investigation of all the individual
elements making up the population - a total enumeration rather than a sample.
II. WHY SAMPLE?
There are three groups of reasons why a sample rather than a complete census should be
taken.
A. Pragmatic reasons: Applied business research projects usually have budget and
time constraints. Often, it would not be possible to contact the whole population
within a short period of time. Sampling cuts costs, reduces manpower
requirements, and gathers vital information quickly.
B. Accurate and reliable results: Another major reason for sampling is that properly
selected samples are sufficiently accurate in most cases. Even when the
populations have considerable heterogeneity, large samples provide data of
sufficient precision to make most decisions. Of course, samples are accurate only
when researchers have taken care to properly draw representative samples. A
sample may be more accurate than a census. In a census of a large population,
there is greater likelihood of non-sampling errors. In a field survey a small, well-
trained, closely supervised group may do a more careful and accurate job of
collecting information than a large group of nonprofessional interviewers trying to
contact everyone.
C. Destruction of test units: Many research projects, especially those in quality

control testing, require the destruction of the items being tested. For example, if
the manufacturer of firecrackers wished to find out whether each unit met a
specific production standard, there would be no product left after testing.
III. PRACTICAL SAMPLING CONCEPTS
A. Defining the target population: Once the decision to sample has been made, the
first question concerns identifying the target population. What is the relevant
population? In many cases this is not a difficult question, but in other cases, the
decision may be a difficult one. At the outset of the sampling process it is
vitally important to carefully define the target population so that the proper source
from which the data are to be collected can be identified. Answering questions
about the crucial characteristics of the population is the usual technique for
defining the target population. The question ―Whom do we want to talk to?‖
must be answered.
B. The sampling frame. In actual practice, the sample will be drawn from a list of
population elements that is often somewhat different from the defined target
population. A sampling frame is a list of elements from which the sample may be
drawn. The sampling frame is also called the working population, because it
provides the list that can be operationally worked with. The discrepancy between
the definition of the population and a sampling frame is the first potential source of
error associated with sample selection.
1. Mailing lists: Some firms, called sampling services or list brokers, specialize
in providing lists/databases that give the names, addresses, phone numbers,
and e-mail addresses of specific populations.
A valuable source of information for names is Equifax’s series of city

directories. A city directory records the name of each resident over 18 years of
age and lists pertinent information about each household. A valuable feature is
the street directory pages. These pages are a reverse directory that provides,
in a different format, the same information provided in a telephone directory.
International Sampling frames: The availability of sampling frames around the

world varies dramatically.
2. Sampling frame error: Sampling frame error occurs when certain elements
are excluded or when the entire population is not accurately represented in the
sample frame. It is possible for elements to be either over- or underrepresented
in a sampling frame.
C. Sampling units: During the actual sampling process, the elements of the
population must be selected according to a certain procedure. The sampling unit
is a singles element or group of elements subject to selection in the sample. For
example, if an airline wishes to sample passengers, every 25th name on a complete
list of passengers may be taken. In this case the sampling unit would be the same
as the element.
If the target population has first been divided into units, such as airline flights,
additional terminology must be used. The term primary sampling unit (PSU) is
used to designate units selected in the first stage of sampling. If successive stages
of sampling are conducted, sampling units are called secondary sampling units,
or tertiary sampling units. When there is no list of population elements, the
sampling unit is generally something other than the population element. For
example, in a random digit dialing study the sampling unit will be telephone
numbers.
IV. RANDOM SAMPLING ERROR AND NONSAMPLING ERROR
Investigators expect a sample to be representative of the population. However, if there is a

difference between the value of a sample statistic of interest (for example, average-
willingness-to-buy-the-service score) and that of the corresponding value of the
population parameter (again, willingness-to-buy score), there is a statistical error. In
Chapter 8, we classified two basic causes for differences between statistics and
parameters: random sampling errors and systematic (non-sampling) errors.
Random sampling error is the difference between the sample result and the result of a
census conducted using identical procedures. Random sampling error occurs because of
chance variation in the scientific selection of sampling units. It will be seen when we
discuss the process of randomization that because random sampling errors follow chance
variations they tend to cancel each other out when averaged. What this means is that
properly selected samples are generally good approximations of the population. Every
once in a while a very unusual sample will be selected because ―too many‖ of the
unusual people were included in the sample and there is a large sampling error. This
theory is reviewed in Chapter 16.
Random sampling error is a function of sample size. As sample size increases, random
sampling error decreases. Of course, the resources available will influence how large a
sample may be taken. (The topic of sample size is covered in Chapter 16.)
It is possible to estimate the random sampling error that may be expected with various
sample sizes. For example, based on the laws of probability, 95 percent of the time a
survey of slightly fewer than 900 people will produce results with an error of
approximately plus or minus 3 percent. If the survey had been collected with only 325
people, the margin of error would increase to approximately plus or minus 5 percent. This
example illustrates random sampling errors.
Systematic (non-sampling) errors result from non-sampling factors, primarily the nature
of a study’s design and the correctness of execution. These errors are not due to chance
fluctuations. Sample biases account for a large portion of errors in business research.
Non-sampling errors have already been discussed in Chapter 8.
A. Less than perfectly representative samples: Random sampling errors and

systematic errors associated with the sampling process may combine to yield a
sample that is less than perfectly representative of the population. Exhibit 16.5
illustrates two non-sampling errors (sampling frame error and non-response error)
related to sample design. The total population is represented by the area of the
largest square.
V. PROBABILITY VERSUS NONPROBABILITY SAMPLING
The major alternative sampling plans may be grouped into probability techniques and
nonprobability techniques. In probability sampling every element in the population has a
known nonzero probability of selection; each member of the population has an equal
probability of being selected.
In nonprobability sampling, the probability of any particular member of the population

being chosen is unknown. It should be noted that there are no appropriate statistical
techniques for measuring random sampling error from a nonprobability sample. Thus,
projecting the data beyond the sample is inappropriate. Nevertheless, there are occasions
when the nonprobability samples are best suited for the researcher’s purpose.
VI. NONPROBABILITY SAMPLING
A. Convenience sampling: Convenience sampling (also called haphazard or

accidental sampling) refers to the sampling procedure of obtaining the people who
are most conveniently available. For example, a college professor who uses his or
her students has a captive sample—convenient but perhaps unwilling and
unrepresentative.
Researchers generally use convenience samples to obtain a large number of

completed questionnaires quickly and economically. However, the user of research
that is based on a convenience sample should remember that projecting the results
beyond the specific sample is inappropriate. Convenience samples are best utilized
for exploratory research when additional research will subsequently be conducted
with a probability sample.
B. Judgment sampling: Judgment or purposive sampling is a nonprobability

technique in which an experienced individual selects the sample upon his or her
judgment about some appropriate characteristic required of the sample members.
For example, a fashion manufacturer regularly selects a sample of key accounts
that it believes are capable of providing the information to predict what will sell in
the fall; the sample has been selected to satisfy a specific objective.
Judgment sampling is often used in attempts to forecast election results. Political

and sampling experts judge which small voting districts approximate overall state
returns from previous election years. Then, these bellwether precincts are
selected as the sampling units. Of course, the assumption is that the past voting
nature of these districts is still representative of the state’s political behavior.
C. Quota sampling: The purpose of quota sampling is to ensure that the various
subgroups in a population are represented on pertinent sample characteristics to
the exact extent that the investigators desire. In quota sampling, the interviewer
has a quota to achieve. For example, an interviewer in a particular city may be
assigned 100 interviews, 30 of which are with Panasonic owners, 28 with Sony
owners, 10 with Magnavox owners, 7 with Toshiba owners, and the rest with
owners of other brands. Aggregating the various interview quotas yields a sample
representing the desired proportion of the subgroups.
1. Possible sources of bias: the logic of classifying the population by pertinent

subgroups is essentially sound. However, because respondents are selected
according to a convenience sampling procedure rather than on a probability
basis, as in stratified sampling, the haphazard selection of subjects may
introduce bias. Quota samples have the tendency to include people who are
easily found, willing to be interviewed, and middle class.
2. Advantages of quota sampling: Speed of data collection, lower costs, and

convenience are the major advantages of quota sampling over probability
sampling. Although there are many problems with this method, careful
supervision of the data collection may provide a representative for analyzing
the various subgroups within a population.
D. Snowball sampling: Snowball sampling refers to a variety of procedures in which

initial respondents are selected by probability methods, but additional respondents
are then obtained from information provided by the initial respondents. This
technique is used to locate members of rare populations by referrals.
Reduced costs and sample sizes are clear-cut advantages of snowball sampling.
Bias is likely to enter into the study, however, because a person who is known to
someone also in the sample has a higher probability of being similar to the first
person. If there are major differences between those who are widely known by
others and those who are not, there may be some serious problems with this
technique. Since the focus group is not expected to be a generalized sample,
snowball sampling may be very appropriate.
VII. PROBABILITY SAMPLING
All probability samples are based on chance selection procedures. This eliminates the bias
inherent in nonprobability sampling procedures because the probability sampling process
is random. Randomness refers to a procedure, the outcome of which cannot be predicted
because it is dependent on chance. It should not be thought of as unplanned or
unscientific - it is the basis of all probability sampling techniques. There are several
probability sampling techniques.
A. Simple random sampling: A simple random sample is a sampling procedure that

assures that each element in the population will have an equal chance of being
included in the sample. Drawing names from a hat is a typical example of simple
random sampling; each person has an equal chance of being selected. This process
is simple because is simple because it requires only one stage of sample selection,
in contrast to other, more complex probability samples. When populations consist
of large numbers of elements, tables of random numbers or computer-generated
random numbers are utilized for sample selection.
1. Selecting a random sample: To use a table of random numbers, a serial
number is assigned to each element of the population. Then, assuming a
population of 99,999 or less, five-digit numbers are selected from the table of
random numbers merely by reading the numbers in any column or row, by
moving upward, downward, left, or right. A random starting point should be
selected at the outset.
The random digit dialing technique of sample selection requires that the
researcher identify the exchange or exchanges of interest (the first three
numbers) and then use a table of numbers to select the next four numbers.
B. Systematic sampling: Systematic sampling is extremely simple: An initial

starting point is selected by a random process; then every nth number on the list is
selected. To illustrate this procedure, suppose one wishes to take a sample of 1,000
from a list consisting of 200,000 names. Using systematic selection every 200th
name from the list will be drawn. In this example, the sampling interval is 200.
While this procedure is not actually a random selection procedure, it does yield
random results if the arrangement of the items in the list are random in character.
The problem of periodicity occurs if a list has a systematic pattern, that is, if it is
not random in character. If the sampling interval is every 200th name, this could
cause a problem, however, periodicity is rarely a problem for most sampling in
business research, but researchers should be aware of its possibility.
C. Stratified sampling: The first step of choosing strata on the basis of existing
information, such as classification of retail outlets, size based on annual sales
volume, is the same for both stratified and quota sampling. However, the process
of selecting sampling units within the strata differs substantially. In stratified
sampling, a subsample is drawn utilizing a simple random sample within each
stratum. This is not true with quota sampling.
The reason for taking a stratified sample is to have a more efficient sample than
could be taken on the basis of simple random sampling. A smaller standard error
may be the result of a stratified sample because the groups will be adequately
represented when strata are combined.
Another reason for conducting a stratified sample is the assurance that the sample
will accurately reflect the population on the basis of the criterion or the criteria
used for stratification. Occasionally a simple random sample yields a
disproportionate number of one group or another and the representativeness of the
sample needs improving.
A researcher selecting a stratified sample will proceed as follows. First, a variable

(sometimes several variables) is identified as an efficient basis for stratification.
The variable chosen should increase the homogeneity within each stratum and
increase the heterogeneity between strata. The stratification variable is usually a
categorical variable or one easily converted into categories, that is, subgroups.
Next, for each separate subgroup or strata, a list of population elements must be
obtained. If a complete listing is not available, a true stratified probability cannot
be selected. A table of random numbers or some other device is then used to take a
separate random sample within each stratum. Of course, the research must
determine how large a sample must be drawn for each stratum.
D. Proportional versus disproportional strata: If the number of sampling units from

each stratum is in proportion to the relative population size of the stratum, the
sample is a proportional stratified sample. However, if the primary purpose of
the research is to estimate some characteristic of the total among strata,
disproportional stratified sampling should be used. Consider, however, the
percentage of retail food outlets presented in Exhibit 16.6. There is a small
percentage of large independent stores and a large percentage of other stores. To
avoid underrepresenting the medium-sized and smaller stores in the sample, a
disproportionate sample is taken. In a disproportional stratified sample, sample
size for each stratum is not allocated on a proportional basis with the population
but dictated by analytical considerations. Thus, the strata exhibiting the greatest
variability are sampled more heavily to increase sample efficiency, that is, smaller
random sampling error. The example in Exhibit 16.6 illustrates an optimum
allocation stratified sample that takes both variation and size of each stratum into
consideration. A simplified rule of thumb for understanding the concept of
optimal allocation is that the stratum sample size increases for strata of larger
sizes with the greatest relative variability.
E. Cluster sampling: The purpose of cluster sampling is to sample economically

while retaining the characteristics of a probability sample. In a cluster sample, the
primary sampling unit is no, longer the individual element in the population (for
example, grocery stores) but a larger cluster of elements located in proximity to
one another (for example, cities). The area sample is the most popular type of
cluster sample.
Cluster samples are frequently utilized when there are no lists of the sample
population available. Some examples of clusters are given in Exhibit 16.7.
Ideally a cluster should be as heterogeneous as the population itself - indeed, a

mirror image of the population. A problem may arise with cluster sampling if the
characteristics and the attitudes of the elements within the cluster are too similar.
To an extent this problem may be mitigated by having constructed clusters that are
composed of diverse elements and by selecting a large number of sampled
clusters.
1. Multistage area sampling: multistage area sampling involves two or more

steps that combine some of the probability techniques already described. It is
possible to take as many steps as are necessary to achieve a representative
sample. Exhibit 16.8 graphically portrays a multistage area sampling process
frequently utilized by a major academic research center. Progressively smaller
geographic areas are chosen until a single housing unit is selected for
interviewing. The Bureau of the Census provides maps, population
information, demographic characteristics of the population, and so on broken
down into several small geographical areas that may be useful in sampling.
Q:20 What Is a Hypothesis? Discuss concepts related with hypothesis testing .
In marketing theory a hypothesis is an unproven proposition or supposition that tentatively
explains certain facts or phenomena—it is a statement of assumption about the nature of the
world. In its simplest form, the hypothesis is a guess.
With statistical techniques we are able to decide whether or not our theoretical hypothesis is
confirmed by the empirical evidence.
The Null and Alternative Hypotheses
A null hypothesis is a statement about a status quo that asserts that any change from what
has been thought to be true will be due entirely to random sampling error. The true purpose
of setting up the null hypothesis is to provide an opportunity for nullifying it. The
alternative hypothesis states the opposite of the null hypothesis.
HYPOTHESIS TESTING
We generally assign the symbol H0 to the null hypothesis and the symbol H1 to the
alternative hypothesis. The purpose of hypothesis testing is to determine which of the two
hypotheses is correct.
A. The Hypothesis-Testing Procedure
The process of hypothesis testing goes as follows. First, we determine a statistical

hypothesis. We then imagine what the sampling distribution of the mean would be
if this hypothesis were a true statement of the nature of the population. Next, we
take an actual sample and calculate the sample mean. Obtaining a sample value
that is exactly the same as the population parameter would be highly unlikely; we
expect at least some small difference. We then must determine if the deviation
between the obtained value of the sample mean and its expected value would have
occurred by chance alone—that is, if the statistical hypothesis is true.
Suppose we observe that the sample value differs from the expected value. Before
we
can conclude that these results are improbable, we must have some standard or
decision rule for determining if in fact we should reject the null hypothesis. The
confidence interval may be regarded as the set of acceptable hypotheses or the
level of probability associated with an interval estimate. However, when
discussing hypothesis testing, statisticians change their terminology and call this
the significance level.
The significance level is a critical probability in choosing between the null and
the
alternative hypotheses. The level of significance determines the probability—say,
.05 or
.01—that is to be considered too low to warrant support of the null hypothesis.
B. An Example of Hypothesis Testing
The Red Lion restaurant is concerned about its store image, one aspect of which is
the friendliness of the service. In a personal interview, customers are asked to
indicate their perception of the service on a 5-point scale, where 1 indicates very
friendly and 5 indicates very unfriendly. The scale is assumed to be an interval
scale and the distribution of the service variable is assumed to be normal.
Type I and Type II Errors
The researcher runs the risk of committing two types of errors. Exhibit 21.3
summarizes the state of affairs in the population and the nature of Type I and
Type II errors. A Type I error, which has the probability alpha ( )—the level of
significance that we have set up—is an error caused by the rejection of the null
hypothesis when it is true. A Type II error has the probability of beta (  ) and it
is an error caused by the failure to reject the null hypothesis when the alternative
hypothesis is true.
Without increasing the sample size the researcher cannot simultaneously reduce
Type I and Type II errors because there is an inverse relationship between the two
( i.e., 1 -  =  ). Thus, reducing the probability of a Type I error increases the
probability of a Type II error and vice versa. In marketing problems, Type I
errors are generally more serious then Type II errors.
CHOOSING THE APPROPRIATE STATISTICAL TECHNIQUE
A number of appropriate statistical techniques are available to assist the researcher in

interpreting data. The choice of the method of statistical analysis depends on three things (A,
B, and C below).
A. Type of Question To Be Answered
For example, a comparison of two salespersons’ monthly average sales will

require a t-test of two means, whereas a comparison of monthly sales distribution
will require a chi-square test.
The choice of research design and data collected should anticipate the method of
statistical analysis.
B. Number of Variables
The number of variables that will be simultaneously investigated is a primary

consideration in the choice of statistical techniques.
Univariate data analysis is conducted when the researcher wishes to generalize

from a sample about one variable at a time. Statistically describing the
relationship between two variables at a time requires bivariate data analysis.
Multivariate data analysis is the simultaneous investigation of more than two
variables. These forms of analysis are discussed further in Chapters 22, 23 and
24.
C. Scale of Measurement
The scale of measurement on which the data are based or the type of measurement
reflected in the data determines the permissible statistical techniques. For
example, the ranking of brand preferences is generally an ordinal scale. Data
analysis of both nominal and ordinal scales typically uses nonparametric statistical
tests.
D. Parametric versus Nonparametric Hypothesis Tests
When the data are interval or ratio scaled and the sample size is large, parametric
statistical procedures are appropriate. These procedures are based on the
assumption that the data in the study are drawn from a population with a normal
(bell-shaped) distribution and/or normal sampling distribution. When researchers
do not make this assumption about the population, nonparametric methods are
used. Nonparametric statistics are referred to as distribution free.
What is the significance level? How does a researcher choose a significance level?
We must have some standard or decision rule to determine if, in fact, we should reject the
null hypothesis and accept the alternative hypothesis. Statisticians have defined the decision
criterion as the significance level. The significance level is a critical probability in choosing
between the null hypothesis and the alternative hypothesis. The level of significance
determines the probability level—say, .05 or .01—that is to be considered too low to warrant
support of the null hypothesis. On the assumption that the hypothesis being tested is true, if
the probability of occurrence of the observed data is smaller than the level of significance,
then the data suggest the null hypothesis should be rejected. In other words, there was
evidence to support contradiction of the null hypothesis, which is equivalent to supporting the
alternative hypothesis.
The researcher in a way decides ―how much‖ he or she is willing to bet. More
appropriately, the researcher selects the odds of making an ―incorrect‖ decision. Some
gamblers will take an 80 percent chance; others, more conservative, will take 99 percent. By
convention, 95 percent is often utilized.
Q: The research report (the format discussed in the class

can also be written) Very important
is an oral presentation and/or a written statement whose purpose is to communicate
research results, strategic recommendations, and/or other conclusions to management
and/or other specific audiences. This chapter deals primarily with the final written report
that is needed in an extensive project. However, for a small project, a short oral or written
report on the results may be all that is needed. On the other hand, in extensive
conferences, many interim reports may be involved.
REPORT FORMAT
Although every research report is custom-made for the project it represents, some
conventions of report format are universal. They represent a consensus about what parts
are necessary to a good research report and how they should be ordered. The format
shown in Exhibit 25.3 serves as a starting point from which the writer can shape his or her
own appropriate format.
A. Tailoring the format to the project: The format may need adjustment for two
reasons: (1) to obtain the proper level of formality and (2) to alter the complexity
of the report. The format given here is for the most formal type of report. Exhibit
25.5 illustrates how the format is adapted to shorter and less formal reports. How
does the researcher decide on the appropriate level of formality? The general
rule is to include all the parts needed for effective communication in the
particular circumstances and no more. This factor relates to how far up in
management the report is expected to go and on how routine the matter is.
B. Parts of the report
1. The title page: The title page should include the title of the report, for whom
the report was prepared, who prepared it, and the date of release or
presentation. The title should give a brief but complete indication of the
purpose of the research project.
2. Letter of transmittal: (electronic transfer of data)This element is included in
relatively formal to very formal reports. Its purpose is to release or deliver
the report to the recipient. It also serves to establish some rapport between
the reader and the writer.
3. Letter of authorization: This is a letter to the researcher approving the
project, detailing who has responsibility for the project, and what resources
are available to support it. The researcher would not write this personally.
4. Table of contents: The table of contents is essential to any report more than a
few pages long. It should list the divisions and subdivisions of the report
with page references. If the report includes many figures or tables, a list of
these should also be included, immediately following the table of contents.
5. Summary: The summary is a vital part of the report. Studies have indicated
that nearly all managers read a report’s summary while only a minority read
the rest of the report. The summary should be written only after the rest of
the report has been completed. Its length should be about one page, so the
writer must carefully sort out what is important enough to include in it. The
summary contains four elements. First, the objectives of the report are stated,
including the most important background information and the specific
purposes of the project. Second, the major results regarding each purpose are
presented. Third come the conclusions. Finally come the recommendations,
or suggestions for action, based on the conclusions. In many cases, managers
prefer not to have recommendations included in the report or summary.
6. The body: The body constitutes the bulk of the report. It begins with an
introduction which explains why the project was done and what it aimed to
discover. Enough background should be included to explain why the project
was worth doing, but essential historical factors should be omitted. The last
part of the introduction explains what this particular project tried to discover.
The second division of the body explains the research methodology. This
involves an explanation of the research design, data collection methods,
sampling procedures, and other technical procedures dealing with collection
of data such as field work and analysis. The presentation of results should
occupy the bulk of the report. No report is perfect so its limitations should be
indicated. However, the discussion of limitations should avoid
overemphasizing the weaknesses. The last division of the body presents the
conclusions and recommendations. The conclusions and recommendations
should be presented here in more detail than in the summary, with whatever
justification is needed.
7. The appendix: Any material that id too technical or too detailed to go in the
body of the paper should appear in the appendix.
Q: Prepare a research proposal for marketing manager of XYZ

Automobile who wants to know about customer satisfaction level across
India who recently purchased newly Introduced car.
Answer:
Format of the Research Proposal:
1. Problem Definition
2. Relevant Review of Literatures
3. Research Objectives, Research Hypotheses
4. Research Methodology: Sources of Data Collection (Primary/Secondary), Research Design
(Exploratory/Descriptive/Causal), Sampling Technique (Probability/Non-Probability Sampling),
Sample Size, Sample Units (Customers, Employees, Retailers), Contact Method for Data
Collection (Personal Interview/Mail/Electronic/Telephonic), Research Instrument for Data
Collection (Questionnaire/Observation Form/CCTV Camera), Sampling Area
(Rajkot/Ahmedabad)
5. Scope of the Study
6. Limitations of the Study
7. Proposed Chapter Scheme of the Research Report
8. Time Schedule
9. Rationale/Significance of the Study
10. Bibliography/References
11. Appendices (Questionnaire)
Q: Explain comparative and non comparative scaling techniques in brief.

(repeat question of question no 17)
Comparative scales involve the direct comparison of stimulus objects. Comparative scale data
must be interpreted in relative terms and have only ordinal or rank order properties.
Comparative Scaling Techniques:
1. Paired Comparison Technique:
A respondent is presented with two objects and asked to select one according to some criterion.
The data obtained are ordinal in nature.
Paired comparison scaling is the most widely-used comparative scaling technique.
With n brands, [n(n - 1) /2] paired comparisons are required.
Under the assumption of transitivity, it is possible to convert paired comparison data to a rank
order.
2. Rank Order Scale:
Respondents are presented with several objects simultaneously and asked to order or rank them
according to some criterion.
It is possible that the respondent may dislike the brand ranked 1 in an absolute sense.
Furthermore, rank order scaling also results in ordinal data.
Only (n - 1) scaling decisions need be made in rank order scaling.
3. Constant Sum Scale:

Respondents allocate a constant sum of units, such as 100 points to attributes of a product to
reflect their importance.
If an attribute is unimportant, the respondent assigns it zero points.
If an attribute is twice as important as some other attribute, it receives twice as many points.
The sum of all the points is 100. Hence, the name of the scale.
 In noncomparative scales, each object is scaled independently of the others in the

stimulus set. The resulting data are generally assumed to be interval or ratio scaled.
Non-Comparative Scaling Techniques:
1. Continuous Rating Scale:
Respondents rate the objects by placing a mark at the appropriate position on a line that runs
from one extreme of the criterion variable to the other. The form of the continuous scale may
vary considerably.
2. Itemised Rating Scale:
The respondents are provided with a scale that has a number or brief description associated with
each category.
The categories are ordered in terms of scale position, and the respondents are required to select
the specified category that best describes the object being rated.
The commonly used itemized rating scales are the Likert, semantic differential, and Stapel scales.
a. Likert Scale: The Likert scale requires the respondents to indicate a degree of agreement or
disagreement with each of a series of statements about the stimulus objects.
b. Semantic Differential Scale: The semantic differential is a seven-point rating scale with end
points associated with bipolar labels that have semantic meaning. The negative adjective or
phrase sometimes appears at the left side of the scale and sometimes at the right. This controls
the tendency of some respondents, particularly those with very positive or very negative
attitudes, to mark the right- or left-hand sides without reading the labels. Individual items on a
semantic differential scale may be scored on either a -3 to +3 or a 1 to 7 scale.
c. Stapel Scale: The Stapel scale is a unipolar rating scale with ten categories numbered from -5 to
+5, without a neutral point (zero). This scale is usually presented vertically. The data obtained by
using a Stapel scale can be analyzed in the same way as semantic differential data.
Q:25
Explain 10 step questionnaire design process.
Q: What is parametric and non parametric test? Explain with one example
from each?
Parametric Tests:
Parametric methods make assumptions about the underlying distribution from which sample
populations are selected.
In a parametric test, a sample statistic is obtained to estimate the population parameter. Because
this estimation process involves a sample, a sampling distribution and a population, certain
parametric assumptions are required to ensure all components are compatible with each other.
Parametric tests are based on models with some assumptions. If the assumptions hold good, these
tests offer a more powerful tool for analysis. It usually assumes certain properties of the parent
population from which we draw samples. Assumptions like observations come from a normal
population, sample size is large, assumptions about population parameters like mean, variance,
etc., must hold good before parametric tests can be used. But these are situations when the
researcher cannot or does not want to make such assumptions. In such situations we use statistical
methods for testing hypotheses which are called non-parametric tests because such tests do not
depend on any assumption about the parameters of the parent population.
Besides, most non-parametric tests assume only nominal or ordinal data, whereas parametric tests
require measurement equivalent to at least an interval or ratio scale. As a result, non-parametric
Business Research Methodology Notes- prepared and Compiled by Dr. Mamta Brahmbhatt- Associate
tests need more observations than parametric tests to achieve the same size of type-I and Type-II
errors.
All these tests are based on the assumptions of normality, the source of data is considered to be
normally distributed.
Popular parametric tests used are t-test, z-test and F-test.
Non-Parametric Tests:
As the name implies, non-parametric tests do not require parametric assumptions because
interval data are converted to rank ordered data. Handling of rank ordered data is considered
strength of non-parametric tests.
All practical data follow normal distribution. Under such situations, one can estimate the
parameters such as mean, variance, etc., and use the standard tests, they are known as parametric
tests. The practical data may be non-normal and/or it may not be possible to estimate the
parameters of the data. The tests which are used for such situations are called non-parametric
tests. Since, these tests are based on data which are free from distribution and parameter; these
tests are known as non-parametric tests.
The non-parametric tests require less calculation, because there is no need to compute
parameters. Also, these tests can be applied to very small samples more specifically during pilot
studies in market research.
The test technique makes use of one or more values obtained from sample data to arrive at a
probability statement about the hypothesis. But no such assumptions are made in case of non-
parametric tests.
In a statistical test, two kinds of assertions are involved, an assertion directly related to the
purpose of the investigation and other assertions to make a probability statement. The former is
an assertion to be tested and is technically called a hypothesis, whereas the set of all other
assertions is called the model. When we apply a test without a model, it is a distribution free test
or the non-parametric test. Non-parametric tests do not make an assumption about the
parameters of the population and thus do not make use of the parameters of the distribution. In
other words, under non-parametric tests we do not assume that a particular distribution is
applicable, or that a certain value is attached to a parameter of the population.
Popular non-parametric tests are Chi-Square Test, Kolmogorov-Smirnov Test, Run Test,
Median, Mann-Whitney U Test, Wilcoxon Signed Rank Test, Kruskal Wallis Test.
Q:27 Explain Univariate, Bivariate and Multivariate analysis with examples.

Empirical testing typically involves inferential statistics. This means that an inference will be
drawn about some population based on observations of a sample representing that population.
Statistical analysis can be divided into several groups:
• Univariate statistical analysis tests hypotheses involving only one variable.
Univariate analysis is the simplest form of quantitative (statistical) analysis. The analysis is
carried out with the description of a single variable and its attributes of the applicable unit of
analysis. For example, if the variable age was the subject of the analysis, the researcher would
look at how many subjects fall into a given age attribute categories.
Univariate analysis contrasts with bivariate analysis – the analysis of two variables
simultaneously – or multivariate analysis – the analysis of multiple variables simultaneously.
Univariate analysis is also used primarily for descriptive purposes, while bivariate and
multivariate analysis are geared more towards explanatory purposes. Univariate analysis is
commonly used in the first stages of research, in analyzing the data at hand, before being
supplemented by more advance, inferential bivariate or multivariate analysis.
A basic way of presenting univariate data is to create a frequency distribution of the individual
cases, which involves presenting the number of attributes of the variable studied for each case
observed in the sample. This can be done in a table format, with a bar chart or a similar form of
graphical representation. A sample distribution table and a bar chart for an univariate analysis are
presented below (the table shows the frequency distribution for a variable "age" and the bar
chart, for a variable "incarceration rate"): - this is an edit of the previous as the chart is an
example of bivariate, not univariate analysis - as stated above, bivariate analysis is that of two
variables and there are 2 variables compared in this graph: incarceration and country.
There are several tools used in univariate analysis; their applicability depends on whether we are
dealing with a continuous variable (such as age) or a discrete variable (such as gender).
In addition to frequency distribution, univariate analysis commonly involves reporting measures
of central tendency (location). This involves describing the way in which quantitative data tend to
cluster around some value. In the univariate analysis, the measure of central tendency is an
average of a set of measurements, the word average being variously construed as (arithmetic)
mean, median, mode or other measure of location, depending on the context.
Another set of measures used in the univariate analysis, complementing the study of the central
tendency, involves studying the statistical dispersion. Those measurements look at how the values
are distributed around values of central tendency. The dispersion measures most often involve
studying the range, interquartile range, and the standard deviation.
Bivariate statistical analysis tests hypotheses involving two variables.

Bivariate analysis is one of the simplest forms of the quantitative (statistical) analysis. It
involves the analysis of two variables (often denoted as X, Y), for the purpose of determining the
empirical relationship between them. In order to see if the variables are related to one another, it
is common to measure how those two variables simultaneously change together (see also
covariance).
Bivariate analysis can be helpful in testing simple hypotheses of association and causality –
checking to what extent it becomes easier to know and predict a value for the dependent
variable if we know a case's value on the independent variable (see also correlation).
Bivariate analysis can be contrasted with univariate analysis in which only one variable is
analysed. Furthermore, the purpose of a univariate analysis is descriptive. Subgroup comparison –
the descriptive analysis of two variables – can be sometimes seen as a very simple form of
bivariate analysis (or as univariate analysis extended to two variables). The major differentiating
point between univariate and bivariate analysis, in addition to looking at more than one variable,
is that the purpose of a bivariate analysis goes beyond simply descriptive: it is the analysis of the
relationship between the two variables.
Types of analysis
Common forms of bivariate analysis involve creating a percentage table, a scatterplot graph, or
the computation of a simple correlation coefficient. For example, a bivariate analysis intended to
investigate whether there is any significant difference in earnings of men and women might
involve creating a table of percentages of the population within various categories, using
categories based on gender and earnings:
The types of analysis that are suited to particular pairs of variables vary in accordance with the
level of measurement of the variables of interest (e.g., nominal/categorical, ordinal,
interval/ratio).
Bivariate analysis is a simple (two variable) variant of multivariate analysis (where multiple
relations between multiple variables are examined simultaneously).
Steps in Conducting Bivariate Analysis
Step 1: Define the nature of the relationship whether the values of the independent variables
relate to the values of the dependent variable or not.
Step 2: Identify the type and direction, if applicable, of the relationship.
Step 3: Determine if the relationship is statistically significant and generalizable to the
population.
Step 4: Identify the strength of the relationship, i.e. the degree to which the values of the
independent variable explain the variation in the dependent variable.
• Multivariate statistical analysis tests hypotheses and models involving multiple (three
or more) variables or sets of variables.
Multivariate statistics is a form of statistics encompassing the simultaneous observation and
analysis of more than one outcome variable. The application of multivariate statistics is
multivariate analysis. Methods of bivariate statistics, for example simple linear regression and
correlation, are NOT special cases of multivariate statistics because only one outcome variable is
involved.
Multivariate statistics concerns understanding the different aims and background of each of the
different forms of multivariate analysis, and how they relate to each other. The practical
implementation of multivariate statistics to a particular problem may involve several types of
univariate and multivariate analysis in order to understand the relationships between variables
and their relevance to the actual problem being studied.
In addition, multivariate statistics is concerned with multivariate probability distributions, in
terms of both:
how these can be used to represent the distributions of observed data;
how they can be used as part of statistical inference, particularly where several different
quantities are of interest to the same analysis.

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Q: 1 Define business research, also narrate when business research is

needed, explain by citing examples.

Basic Research and Applied Research

There are two types of business

When Is Business Research Needed?

A. Time constraints: Is there sufficient time available before a managerial decision

Q: 2 TYPES OF BUSINESS RESEARCH`

A. Exploratory studies are conducted to classify the nature of problems. It is not

B. Descriptive research is conducted to discover and determine the

C. Causal research attempts to identify cause-and-effect relationships between

Q: 3 Explain the stages in the research process. (Menstrual Cup:

A. Problem discovery and definition: Most research programs are initiated

Pilot studies (a collective term to group together a number of diverse research

2. Surveys: The most common method of generating primary data. It is a technique in

3. Experiments: Hold the greatest potential for establishing cause-and-effect

There are two basic types of samples:

1. Probability sample: In which every member of the population has a known,

F. Conclusions and report preparation: This stage involves preparing the

Q:4 Discuss the ethical issues w.r.t. respondent, researcher

A. The Obligation to be Truthful

In a number of situations, the researcher creates a false impression by disguising the

C. The Right to be Informed

The Purpose of Research is Research

Protect the Right to Confidentiality of Both Subjects and Clients

Dissemination of Faulty Conclusions

Q:4.3 RIGHTS AND OBLIGATIONS OF THE CLIENT SPONSOR (USER)

Ethics between Buyer and Seller

An Open Relationship with Research Suppliers

An Open Relationship with Interested Parties

WHAT ARE THE RELEVANT VARIABLES?

One aspect of problem definition is identification of the key variables. A variable is a

In statistical analysis, a variable is identified by a symbol such as X. A category or

In causal research, a dependent variable is a criterion or variable that is expected to be

Q:6 DISCUSS CATEGORIES OF EXPLORATORY RESEARCH

A. Experience surveys: Concepts may be discussed with top executives and

One disadvantage is that a small group of people, no matter how

A number of focus groups use videoconferencing. The videoconferencing industry has

The focus group technique has two shortcomings:

a) Word association: The subject is presented with a list of words,

4. Depth interviews: Depth interviews are similar to the client interviews of a

Q:7 WRITE A DETAILED NOTE ON SECONDARY DATA?

DISADVANTAGES OF SECONDARY DATA

A. Outdated information: Secondary data must be timely in order to predict the

CLASSIFICATION OF SECONDARY DATA

External sources of data can be categorized as follows:

1. Books and periodicals: Books and periodicals provide a wealth of

4. Commercial sources: Numerous firms specialize in selling information.

a) Market share data: Market tracking refers to the observation

Q: 8 Detailed note on SURVEYS

A. Survey objectives: Type of Information Gathered: The type of

attempts to identify and explain a particular business activity. Business

B. Advantages of surveys: Surveys are quite flexible and, when conducted

A. Random sampling error: Most surveys try to portray a representative cross

1. Respondent error: If the respondents do not cooperate or do not

Nonresponse error: To utilize the results of a survey, the researcher must

statements they are asked about.

2. Administrative error: The results of improper administration or execution of the

a) Data processing error: The accuracy of the data processed by computer

Surveys can be classified in three ways.