Applied Quantitative Methods

MBA course Montenegro

Peter Balogh
PhD
baloghp@agr.unideb.hu

BASIC DATA OF THE SUBJECT

Name of the subject: Applied Quantitative Methods

Course status: obligatory
Language: English
Subject educator
Name: Dr. Peter Balogh
Title: Associate Professor
Affiliation: University Debrecen
Period: September 2011

Prerequisite: none

Objective of the training: The students became familiar

with the use of quantitative methods in business

Contact education:
20 hours
Consultation:
0 hours
Individual assignment:
85 hours
Total:
105 hours
Credit:
ECTS : 8

 Description of the individual assignment:

Prepare and present a case study using the quantitative
methods within a working group.

Examinations requirements:
Oral: Presentation
Written: Prepare a case study using the quantitative
methods

Compulsory literature:
Jon Curwin and Roger Slater: Quantitative Methods for
Business Decisions, Fifth edition,
Cengage Learning Business Press, ISBN-13: 9781861525314

Recommended literature:
David R. Anderson, Dennis J. Sweeney, Thomas A.
Williams, Jeffry D. Camm, Kipp Martin: Quantitative
Methods for Business, Cengage Learning Business
Press, (2010) ISBN-13: 978-0-324-65175-1

Course Design
Part lecture, part skills development
Usually one major topic per day
Some time devoted to working with
statistical software packages (excel and
SPSS)

Course Reading
Jon Curwin and Roger
Slater:
Quantitative Methods
for Business
Decisions

Statistical Software
All course examples will use EXCEL
You can download
the excel files of the course book:
http://www.agr.unideb.hu/~baloghp/Montenegro

Software and Computers

Bring your laptop to class if
applicable.
We will devote class time in
many sessions to working
with statistical software.
I encourage you to sit with
anyone who knows the MS
EXCEL software package
when we begin to use it in
class.

Overall Course Goals

You will have good knowledge of common
research methods used in quantitative
research (surveys, experiments)
You will understand basic univariate
statistics, bivariate statistics, linear
regression and time series analysis
You will be able to use the MS EXCEL to
conduct statistical analyses

Description of the contact

education I.
Hour 1-4: Quantitative
information
The quantitative approach
Managing data
Survey methods
Presentation of data
Hour 5-8: Descriptive statistics
Measures of location
Measures of dispersion
Index numbers

Description of the contact

education II.

Hour 9-11: Measuring

uncertainty
Probability
Discrete probability distributions
The normal distribution
Statistical inference
Confidence intervals
Significance testing
Non-parametric tests

Description of the contact

education III.

Hour 12-15: Relating variables and

predicting outcomes
Correlation
Regression
Multiple regression and correlation
Time series

1. The quantitative
approach
Quantitative information:
We can get data quickly, but we need
to be sure that we are working on the
right problem and that the data is
valid.
Data means
a few recording
an extensive national or international
survey

An item of data becomes information

when it informs the user.

1. The quantitative
approach
Quantitative information:
Internet has transformed the flow and
availability of data.
The ability to manage data, produce
information and work with problems are
all seen as and important business
competencies.

1. The quantitative
approach
Quantitative information:
Desk research:
First you need checking what work has
already been done.
Provide information or identify techniques.
It is always helpful to find a questionnaire
that has been used previous study and
may only require some modification.

1. The quantitative
approach
Quantitative information:
Managing numbers is an important part
of understanding and solving problems.
The collecting together of numbers, and
other facts and opinions provides data.
This data only becomes information when
it informs the user!!
The quantitative approach is more than
just doing sums.
It is about making sense of numbers
within a context.

1. The quantitative
approach

1.1
1.2
1.3
1.4
1.5

Problem solving
Methodology
Models
Measurement
Scoring models

1.1 Problem solving

To understand problems within a
context, it can be useful to work
through a number of stages:
defining (and redefining) the problem,
searching for information,
problem description (and again
redefinition if necessary),
idea generation,
solution finding and finaly,
acceptance and implementation.

Problem solving

what we have and what we want!!!

1.2 Methodology
Old methods
New methods
Reliability and validity of findings
(conclusions)
Was the purpose of the research clear?
Was this research necessary? (desk
research)
Was the means of data collection
appropriate?
What can we infer?
(-inductive approach
generalization
-deductive approach)

1.3 Models
1.3.1 Model abstraction
1.3.2 The development of a
mathematical model
1.3.3 Models of uncertainty
1.3.4 Computer-based modelling

Modelling

Inpu
ts

Transforma
tion
process
Assumpti
ons

Outcom
es

1.3 Models
A model is a representation of real
objects or situations
A good understanding of the object or
situation
The recognition of all relevant variables
The understanding of relationships
The ability to undertake analysis

1.3.1 Model abstraction

Physical (or iconic)
Least
abstract
Schematic
(organization charts, flowcharts)
Analogue
(colours on a map: water, forest)
Symbolic (or mathematical)
(numbers, letters, special
Most
characters, symbols)

abstract

1.3.2 The development of a

mathematical model
A variable is a quantity or characteristic
of interest that is allowed to change
within a particular problem (students
mathematics mark, travel time)
A parameter is fixed for a particular
problem.
An assumption is something we accept
to be true for the model we are working
on.

1.3.3 Models of uncertainty

Deterministic
(Probabilistic)

Stochastic

Expected value

Mean

1.3.4 Computer-based
modelling

Computational
Least
(spreadsheets, what if) abstract
Analytical
(mathematical techniques
and manipulation)
Simulation
(equations and
distributions)
Most
Expert systems
abstract
(advising on solution)

1.4 Measurement
Measurement is about assigning a value
or a score to an observation.
Measurement is the representation of
type,
size or
quantity by numbers.

How we work with data will depend on

the level of measurement achieved.
Measurement can be categorized as:
nominal, ordinal, interval, ratio

1.4 Measurement
Nominal (or categorical) level of
measurement:
If responses merely classified into a number
of distinct categories, where no order or
value.
The classification of survey respondents on
the basis of
religious affinity,
voting behaviour or
car ownership.

The numbers assigned give no measure of

amount or importance.

1.4 Measurement

Nominal (or categorical) level of measurement:

For data processing convenience, we may code
respondents 0 or 1 (e.g. YES or NO) or
1, 2, 3 (Party X, Party Y, Party Z), but these numbers
do not relate to meaningful origin or to a meaningful
distance.
We cannot calculate statistics (mean, standard
deviation).
We can make percentage comparisons (e.g. 30 % will
vote for party X), present data using bar charts or use
more statistical methods (non-parametric tests).

1.4 Measurement

Ordinal level of measurement:

has been achieved when it is possible to rank
order all categories according to some
criteria.
The preferences indicated on a rating scale
ranging from strongly agree to strongly
disagree or the classification of respondents
by social class (occupational groupings A, B,
C1, C2, D, E) are both common examples
where ranking is implied.
Individuals are often ranked as a result of
performance in sporting events or business
appraisal.

1.4 Measurement

Ordinal level of measurement:

In these examples we can position a
response or a respondent but cannot give
weight to numerical differences.
It is as meaningful to code a five point
rating scale 7, 8, 12, 17, 21 as 1, 2, 3, 4,
5 though the latter is generally expected.
Only statistics based on order really
apply.

1.4 Measurement

Ordinal level of measurement:

You will, however, find in market
research and other business
applications that the obvious codings
are made (e.g. 1 to 5) and then a
host of computer-derived statistics
calculated.
Many of these statistics can be useful
for descriptive purposes, but you
must always be sure about the type
of measurement achieved and its
statistical limitations.

1.4 Measurement

Interval scale:

is an ordered scale where the differences between

numerical values are meaningful.
Temperature is a classic example of an interval
scale, the increase on the centigrade scale
between 30 and 40 is the same as the increase
between 70 and 80.
However, the heat cannot be measured in
absolute terms (0 oC does not mean no heat) and
it is not possible to say that 40 oC is twice as hot
as 20 oC, but we can say it is hotter.
In practice there are few business-related
measurements where the subtlety of the interval
scale is of consequence.

1.4 Measurement

Ratio scale:
The highest level of measurement,
- which has all the distance properties of the
interval scale and in addition,
- zero represents the abscence of the
caracteristic being measured.
Distance and time are good examples.
It is meaningful, for example, to refer to 0 time
and 0 distance and refer to one journey taking
twice as long as another journey or
one distance as being twice as long as another
distance.

1.4 Measurement

1.4 Measurement

In summary, it is considered more

powerful to achieve measurement at
higher level as this will contain more
discriminating information;
it is more useful to know how many
cigarettes a respondent smokes on
average (0 or more) than just whether
they smoke or not.
The measurement sought will depend on
the purpose of the research.

1.4 Measurement

Another useful system of classification is

whether measurement is discrete or
continuous.
Measurement is discrete if the numerical
value is the consequence of counting.
(the number of respondets, the number
of companies)
Continuous measurement can take any
value within a continuum, limited only by
the precision of the measurement
instrument. (5 seconds or 5.17 seconds)

Quantitative and Qualitative

Perspectives
"There's no such thing as
qualitative data. Everything
is either 1 or 0
Fred Kerlinger

"All research ultimately has

a qualitative grounding
Donald Campbell

Quantitative and Qualitative

Perspectives

First it is useful to distinguish between the

quantitative and qualitative approaches to
problem solving.
Essentially, the quantitative approach will
describe and resolve problems using numbers.
Emphasis will be given to:
the collection of numerical data,
the summary of that data and
the drawing of conclusions from data.

Measurement is seen as important and factors

that cannot be easily measured, such as
attitudes and perceptions, are generally
difficult to include in the analysis.

Quantitative and Qualitative

Perspectives

Qualitative approaches describe the

behaviour of people individually, in groups or
in organisations.
Description is difficult in numerical terms and
is likely to use illustrative examples,
generalization and case studies.
The qualitative approach can use a variety of
methods such as observation and the written
response to unstructured questions.
Data may come in the form of script, for
example, transcripts of interviews or
observations such as video recordings.

1.5 Scoring models

Scoring models provide a way of
combining such information and
informing decision-making.
Can provide a useful basis for thinking
about the problem

2. Managing data

The truth is
out there
somewhere

2.1 Issues of data collection

The five Ws and H technique:
Who?, What?, Where?, When?, Why? and How?

Who? is an important question in any problem.

Data will always relate to a particular group of
people or set of items in time and we use this
concept to define the population we will be
working.
The population is defined as those people or
items of interest.
Given limited resources, including time, the
identification of the relevant population is
essential.
Women
Man

2.1 Issues of data collection

(cont.)
Having decided who, we must then
consider whether we need
information on all of them or just a
selection.
A census is a complete enumeration
of all those people or items of interest
(whereas a sample is just a selection
from all those people or items).

2.1 Issues of data collection

(cont.)
What? data will depend on the purpose of the
research.
A statistical enquiry may require the collection
of new data, referred to as primary data, or
be able to use existing data, referred to as
secondary data. (Combination of both
sources.)
Sources of primary data include observation,
group
discussions
and
the
use
of
questionnaires. Collection for a specific
project.
Take a long time to collect,
Be expensive

2.1 Issues of data collection

(cont.)
Secondary data has been collected
for some other purpose.
Low cost but may be inadequate for
purposes of the inquiry.
Example: The impact of a new
shopping center on the local
community!!
First step Second step

2.1 Issues of data collection

(cont.)

Where? to find the right kind of data when you need it or

where to find the people of interest when you need them
is an important skill.
In organizational research it is often useful to distinguish
between internal and externally generated data.

Recent sales volume, sales value, number of employees,

expenditure on advertising, expenditure on research
The data generated by national governments, local
governments, chambers of commerce, Internet
You still need to question its validity and reliability.
This stage of searching for data is often referred to desk
research.

2.1 Issues of data collection

(cont.)
Why? is seen as part of a questioning
approach that should lead to greater
clarification and a justification of
approach. Useful technique called the
why technique .
Why did you say that?
Why should that be the case?
Why use that data?

2.1 Issues of data collection

(cont.)
Chapter 2 and 3 are particularly concerned
with the how?
Having defined the population of interest
and the purpose of the research, a number
of issues will need to be addressed:
Whether existing published sources provide
sufficient information
Whether useful information can be found
through an Internet search
What type of sampling should be used, if any
How data should be collected
How questions should be designed, if required

2.2 Published sources

Office for National Statistics (ONS)
The Annual Abstract of Statistics
The Monthly Digest of Statistics
Financial Statistics
Economic Trends
The Economic
and Labour
Market
Review
Social Trends

 The most comprehensive source of

statistics in the UK, Annual Abstract
of Statisticsis a statistical
encyclopaedia including over 10,000
series of data and covering key
aspects of the UKs economic, social
and industrial life.
It covers the following areas:
parliamentary elections;
international development; defence;
population and vital statistics;
education; labour market; personal
income, expenditure and wealth;
health; social protection; crime and
justice; lifestyles; environment,
housing; transport and
communications; national accounts;
prices; government finance; external
trade and investment; research and
development; agriculture, fisheries
and food; production; banking and
insurance and service industry.

Monthly Digest of Statistics(MDS) provides the

latest monthly and quarterly statistics for UK
businesses, economy and society. An important
reference work, it is an indispensable source of
statistics containing twenty chapters of tables
updated each month.
Did you know?
In2007the average hourly earning (excluding
overtime) for men was14.98but for women
it was12.40.
February 2008was the sunniest
since1929for England, Wales and the UK as a
whole. But in NW Scotland some weather
stations recorded over200 percentaverage
rainfall.
Wind farms supplied3.79 terawatt hoursof
electricity in 2007, the equivalent of0.33
million tonnesof oil.
The mostpopular destinationof air
passengers departing from the UK between
April and June 2008 wasSpainat over8
million, followed by theUSAat almost5
million.
Almost halfof adult internet users in the UK
use internet banking(49 per cent), although
the most popular use for the internet is for
sending and receiving e-mails(97 per cent).

 Financial Statisticsis a
monetary
compendium of the
UK's key financial and
monetary
statistics.
Published monthly, it
contains
data
on
public sector finance,
central
government
revenue
and
expenditure,
money
supply
and
credit,
banks and building
societies, interest and
exchange
rates,
financial
accounts,
capital issues, balance
sheets and balance of
payments.

Publication title: Economic Trends (discontinued)

This monthly compendium of statistics and articles on the UK economy was been
replaced by the Economic and Labour Market Review.
Economic & Labour Market Review(ELMR)
provides an up-to-date summary of the UK
economy and labour market, bringing statistics
to life through news, reviews and features that
highlight the most recent trends and
developments through impartial commentary
and analysis.
ELMRprovides readers with new analysis of
major economic measures including output,
expenditure, prices, income and welfare,
employment and pay.
The journal is an authority on how economic
measurement responds to a changing
economy and to new policy challenges,
publishing the latest-thinking on how
economists and statisticians are helping to
shape international standards.
ELMRassesses the impact of new statistical
methodologies and highlights the benefits to
users of newly released or improved official
statistics. The journal brings together a broad
range of statistics, commentary and analysis
from which users can draw a comprehensive
picture of the UK economy and labour market.

 An established reference
source,Social Trendsdraws
together the most up-to-date
social and economic data from a
wide range of government
departments and other
organisations. Data is presented
clearly in a combination of tables,
figures and text providing the
ideal tool for researching life and
lifestyles in the UK.
Each chapter focuses on a
different social policy area:
population, households and
families, education and training,
labour market, income and wealth,
expenditure, health, social
protection, crime and justice,
housing, environment, transport,
lifestyles and social participation.

European Statistical Sources

1. Non-governmental sources:
Mintel Market Intelligence Report
(monthly reports on consumer products)
Retail Business
Marketing in Europe
Kompass Directory (provides information
on a variety of companies)
NEILSEN reports on markets and
shopping behaviour
ADMAP (Warc's monthly magazine)

2. European Official Statistics

 ADMAP (Warc's monthly magazine)

Warc is home to thousands of effectiveness case
studies from across the world charting the success
strategies of winning brands in every sector and
market.
Extremely relevant articles by great practitioners in
an easy to assimilate format - just what the
overstretched marketer needs"
Michael Harvey, Global Head of Planning, Diageo
Diageo is the world's leading premium drinks
business with an outstanding collection ofbeverage
alcoholbrands across spirits, beer and wine. These
brands include Johnnie Walker, Crown Royal, J&B,
Windsor, Buchanan's and Bushmills whiskies,
Smirnof, Ciroc and Ketel One vodkas, Baileys,
Captain Morgan, Jose Cuervo, Tanqueray and
Guinness.

European Official Statistics

Europe in figures - Eurostat yearbook 2010

Basic figures on the EU

European Business: Facts and figures - 2
009 edition
Key figures on European business - with
a special feature on SMEs
Key figures on Europe - 2011 edition
Forestry in the EU and the world
Science, technology and innovation in
Europe
Food: from farm to fork statistics

Europe in figures Eurostat

yearbook 2010 presents a
comprehensive
selection
of
statistical data on Europe. With
just over 450 statistical tables,
graphs and maps, the yearbook
is a definitive collection of
statistical information on the
European Union. Most data cover
the period 1998-2008 for the
European Union and its Member
States, while some indicators are
provided for other countries,
such as candidate countries to
the European Union, members of
EFTA, Japan or the United States.
The yearbook treats the following
areas: the economy; population;
health; education; the labour
market; living conditions and
welfare; industry and services;
agriculture,
forestry
and
fisheries;
trade;
transport;
environment and energy; science
and technology; and Europes
regions. This editions spotlight
chapter covers national accounts
statistics with a particular focus
on the economic downturn
observed during 2008/2009.

 The quarterly series

Basic figures on the EU
presents the freshest
Eurostat data on a small
number of key indicators
in the economic and
social fields. Each issue
is released during the
second month of each
quarter.

 This publication gives a

comprehensive picture of
the structure, development
and
characteristics
of
European business and its
different
activities:
from
energy and the extractive
industries
to
communications,
information services and
media. It presents the latest
available statistics from a
wide selection of statistical
sources describing for each
activity:
production
and
employment;
country
specialisation and regional
distribution;
productivity
and
profitability;
the
importance of small and
medium sized enterprises
(SMEs);
work-force
characteristics;
external
trade etc.

This
publication
summarises
the
main
features
of
European
business and its different
activities in a concise and
simple
manner.
The
publication is intended to
function as a showcase
for and introduction to the
data available in this field.
This edition includes a
special feature section on
SMEs, which presents an
analysis of the different
characteristics of micro,
small, medium and large
enterprises

 Key figures on Europepresents

a selection of statistical data on
Europe. Most data cover the
European Union and its Member
States, while some indicators
are
provided
for
other
countries, such as members of
EFTA, candidate countries to
the European Union, Japan or
the
United
States.
The
pocketbook treats the following
areas: economy and finance;
population; health; education
and training; the labour market;
living conditions and social
protection; industry, trade and
services; agriculture, forestry
and
fisheries;
international
trade;
transport;
the
environment;
energy;
and
science and technology.

 The International Year of

Forests 2011 is a UN
initiative reinforcing the
message that forests
are vital to the survival
and
well-being
of
mankind. This Eurostat
publication supports the
UN
initiative
by
statistically
depicting
forests in their various
dimensions.
This
publication
presents information for
the EU and its Member
States,
as
well
as
comparisons
with
countries
that
have
considerable
forest
resources.

 This
publication
draws
a
comprehensive picture of the
Science,
Technology
and
Innovation activities in the
European Union as carried out
by its people, enterprises and
governments. It provides the
reader
with
statistical
information to appreciate the
evolution and composition of
science and technology in
Europe and its position with
regard to its partners. The
pocketbook is divided into
seven chapters among which:
Government
budget
appropriations or outlays on
Research
and
Development
(GBAORD), R&D Expenditure,
R&D
Personnel,
Human
Resources
in
Science
and
Technology, Innovation, Patents,
High-technology.

 This pocketbook provides

the reader with information
on how the food chain
evolves
in
Europe;
it
presents
a
range
of
statistical indicators for
each step of this chain
from the farm to the fork,
passing from production on
the farm, through food
processing, to logistical
activities
such
as
importing,
transporting
and distributing, before
reaching the end consumer
either through purchases
made in retail outlets or
through the consumption
of food and drink in cafs,
bars and restaurants.

 Secondary data will often provide a

useful overall description (e.g.
economic or social trend) and inform
the collection of primary data.
Primary data will add specific
detail, particularly current attitudes
and opinions.

2.3 Internet sources

Office for National Statistics (ONS)
http://www.statistics.gov.uk/hub/index.html

http://www.ons.gov.uk/ons/index.html
Surveys:
http://www.ons.gov.uk/ons/guide-method/surveys/list-ofsurveys/index.html
http://www.roughguides.com/
www.dis.strath.ac.uk/business/
General Global Marketing Informations:
http://webpages.dcu.ie/~gannonm/Websites%20General
%20Global%20Marketing%20Information.html
EUROSTAT:
http://epp.eurostat.ec.europa.eu/portal/page/portal/euro
stat/home

 Essentially, we need to be able to

evaluate such information, and be
ready to reject any that is suspect
To check that data from the web is
appropriate
complete
without bias

Big advantage of the Internet:

the scale of the information, which cannot
be matched by any imaginable traditional
library

Disadvantage:
the lack of any quality control

2.4 A census or a survey?

We need to decide whether to include
all people (item)
or take a selection

undertake a census
sample

Census:

Representative! Mean, Standard Deviation

prohibitively
expensive,
prohibitively time consuming,
limit the possible depth of the enquiry

Designed survey can provide

the acceptable quality of results
at lower costs and
greater speed

2.4 A census or a survey?

A census will attempt to include everyone
providing maximum numbers for analysis
avoiding conserns about sampling or
selection bias
Provide a benchmark for research
activities
(age, gender, ethnic origin, ..)
Population census

2.4 A census or a survey?

Full censuseshave taken place in theUnited
Kingdomevery ten years since 1801 with the
exceptions of 1941 (during the Second World War).
In addition to providing a wealth of interesting
information about aspects of the make-up of the
country, the results of the census play an important
part in the calculation of resource allocation to
regional
and
local
service
providers,
by
governments in the United KingdomandEuropean
Unionlevels.
The last:
27 March 2011
The next census in United Kingdom will take place
in March 2021

2.4 A census or a survey?

The term census is usually associated
with a government count of the
population, but a census can be any
complete count
An identified population is small
Local or sub-group level
A census can be taken of
all the suppliers to a particular company
all the schools in the UK
all the sports shops in Leeds

2.4 A census or a survey?

A survey is likely to be preferred when:
it is known as a methodology that works
cost constraints exit
time constraints exit

Most commercial and most

governmental research will based on
survey methodology
If the selected sample is representative
and sufficiently large, then the results
will be good enough for purpose.

2.4 A census or a survey?

The procedure used to select the sample is
particularly important and this is described by
the sample design. The sample needs to
represent the population in such a way that
results from the survey can be used to make
generalizations about the population. We talk
about making an inference from the sample to
the population.
The concepts of inclusion and exclusion are also
important in sample design.
General election result
If you were to ask the next five (10, 100) people
you see how they are likely to vote at the next
general election, it is very unlikely that the answers
given would be a guide to general election result.

2.4. 1 How should we decide

sample size?
The size of the sample required will
depend on the following factors:
the accuracy required
the variability of the population
the detailed required in analysis

2.4.1 How should we decide

sample size?
If an accuracy of 1 % is required rather
than 5% for example, then a larger
sample will be necessary.
If the average weekly household
expenditure on a particular item is only
required to an accuracy of 5.00 rather
than 0.50 then a smaller sample should
be sufficient.
The important point here is that the user or
client needs to be able to specify such
levels of accuracy.

2.4. 1 How should we decide

sample size?
The variability of the population
will also be a determining factor in
the sample size required.
In the extreme case where everyone
held exactly the same opinion (no
variability existed) we would only
need to ask one person to make an
inference to the population as a
whole.

2.4. 1 How should we decide

sample size?
As views become variable, larger
samples are required.
If accuracy is also required by
subgroup, e.g. female smokers under
25 years of age, then we would need
to ensure that the sample was
sufficiently large to provide the
necessary number in each of the
subgroups.

2.4. 1 How should we decide

sample size?
Since most surveys are not designed to
find out a single piece of information,
but the answers to a whole range of
questions, the determination of sample
size can become extremely complex.
It has been found that samples of about
1000 give results that are acceptable
when sampling the general population.

2.4. 1 How should we decide

sample size?
'Gallup and other major organizations use
sample sizes of between 1000 and 1500
because they provide a solid balance of
accuracy against the increased economic cost
of larger and larger samples.
If Gallup were to - quite expensively - use a
sample of 4000 randomly selected adults each
time it did its poll, the increase in accuracy over
and beyond a well-done sample of 1000 would
be minimal, and generally speaking, would not
justify the increase in cost.
Source: www.gallup.com

2.5 Market research

Market research is seen as a major industry.
Data is collected on behalf of a range of
organizations, much of it for business use.
Data can have considerable commercial value
and access can be limited.
A variety of methods are used to collect data
including face-to-face interviewing, telephone
interviewing, and group discussions.
Market research provides information on peoples
preferences, attitudes, likes and dislikes, and can
help companies understand what consumers
want.
National and local government use market
research to provide the data to inform policies on
everything from planning local transport to the
provision of efficient health and social services.

2.5 Market research

Market research can be directly concerned with a
market (which will need definition) and can
provide information on market size, market trends,
market share by brand, customer characteristics
and other factors.
Aspects of market research include advertising
and promotional research, product research and
distribution.
Market research companies also sell a range of
services, and will frequently undertake research
for government, both national and local, academic
projects and not-for-profit organizations.
The Market Research Society provide a range of
useful information on their website:
http://www.mrs.org.uk

2.5 Market research

2.6 Conclusion
Obtaining and using data as information is
an important part of understanding and
solving any problem.
There is little doubt about the volume of
data now available, and any search of the
Internet can easily produce reams of
computer printout.
As with all problem solving we need to
work within boundaries that ensure the
problem remains manageable and yet does
not exclude new avenues of enquiry.
Given the diversity of possible data sources
we need to check that data is appropriate,
adequate and without bias.

2.6 Conclusion
As discussed, the choice is rarely
between secondary data (existing data)
or primary data (new data that needs to
be collected for the specific purpose).
Secondary data will help describe and
define the existing problem.
The examination of secondary data can
also provide guidance on what research
methods work and which don't.
Primary data will generally be needed to
add specific detail.

2.6 Conclusion
The purpose of any statistical investigation
needs to be clear.
A statement that we wish to investigate the
management of change within the organization
will mean different things to different people.
In this case, we need to be clear about our
meaning of change or changes, 'management'
and the general context.
Decisions will need to be made on who to
include and who to exclude.
In all statistical work the definition of
population (all those people or items of
interest) is particularly important.
If we refer to the workforce, for example, do we
mean only full-time employees, those at a
particular location or those doing a particular
job?

2.6 Conclusion
It is a frequently reported experience
that 'desk research' yields some of the
information required but also yields
other data of interest and a wealth of
new ideas.
It is also worth considering how much
research is genuinely original!
If the purpose of the statistical
investigation requires the collection of
original data, then the sample survey is
probably the most widely used method
in business and economics.

2.6 Conclusion
Once collected, data needs to be collated
and presented (see Chapter 4).
Available computer hardware and software
now allows data to be stored, manipulated
and analysed with relative ease.
Many types of computer software are
available for dealing with survey data.
You could use a standard spreadsheet, such
as, Excel or Lotus-123 to record the answers
(in a coded form), or you could use more
specialized software such as SPSS.
The choice that you make will depend on the
size of the survey, the resources available
and the sophistication of the analysis
necessary.