Business Research Methods

Research Design

Definition
A research design is a blueprint for conducting research project It specifies details of how the project should be conducted Although a broad approach to the problem has already been designed ,research design specifies details (nuts & bolts) of implementation of that approach A good research design ensures that the project is conducted effectively and efficiently It involves six components or tasks

Six Components of a research design

Design the exploratory, descriptive and/or causal phases of the research design Define the information needed Specify the measurement and scaling procedure Construct and pre test a questionnaire or an appropriate form for data collection Specify the sampling process & sample size Develop a plan of data analysis

Classification of research design The research designs may be broadly classified as Exploratory & Conclusive The primary purpose of exploratory research is to provide insights into the problem Conclusive research is conducted to test specific hypotheses and test specific relationships The findings from conclusive research are used as inputs in managerial decision making

Types of conclusive research Conclusive research may either be descriptive or causal

Descriptive Research

Descriptive research is a type of conclusive research that has as its major objective the description of something-usually market characteristics or functions A descriptive design requires a clear specification of the who, what, when, where, why and the way of research Descriptive research can be classified into cross sectional and longitudinal research

Descriptive research Cross sectional designs involves collection of information from a sample of population elements at a single point in time In longitudinal design repeated measurements are taken on a fixed sample over a period of time

Causal Design Causal research is designed for the primary purpose of identifying cause and effect relationships Studying effect of advertising on sales Impact of 4 Ps on Sales or on Brand Image or on Brand awareness

Difference Between Exploratory and Conclusive Research

Objective Exploratory: To provide insights & understanding Conclusive: To test specific hypothesis & test relationships Characteristics Exploratory: Information needed is defined only loosely Research process is flexible & unstructured Sample is small & non representative Analysis of primary data is qualitative Conclusive :Information needed is clearly defined Research process is formal & structured Sample is large & representative Data analysis is quantitative Findings/Results Exploratory : Tentative Conclusive : Conclusive Outcome Exploratory : Generally followed by further exploratory or conclusive research Conclusive : Findings used as inputs into decision making

Comparison of basic research designs

Exploratory Research (Unaware of Problem) OBJECTIVES Discover ideas and insights CHARACTERISTICS Flexible Versatile Often front end of total research design METHODS Expert Surveys Pilot Surveys Secondary data ( Analyzed qualitatively) Qualitative research Descriptive Research (Aware of Problem) Describe characteristics of the sample units Causal Research (Problem Clearly Defined) Determine cause and effect relationships

Marked by prior formulation of Manipulation of one or more specific hypothesis independent variables Preplanned and structured design Control of mediating variables Secondary data ( Analyzed quantitatively) Surveys Panels Observational and other data Experiments

Degree of Problem Definition

Exploratory Research (Unaware of Problem) Our sales are declining and we dont know why. Would people be interested in our new product idea? Descriptive Research (Aware of Problem) Causal Research (Problem Clearly Defined)

What kind of people are buying Will buyers purchase more of our product? Who buys our our products in a new package? competitors product? Which of two advertising What features do buyers prefer campaigns is more effective? in our product?

Examples of descriptive research Market studiesWhich describe-size of the market ,buying power of consumers, availability of distributors &consumer profiles Market share studieswhich determine proportion of total sales received by a company & its competitors Sales analysis studieswhich describe sales by geographic regions, product line, type & size of account

 Image studies Which determine consumer perception of the firm & its products Product usage studies which describe consumption patterns Distribution studies which determine traffic flow patterns and number & location of distributors Pricing studies which describe the range & frequency of price changes & probable consumer response to proposed price changes Advertising studies which describe media consumption habits, audience profile for specific TV programmes and magazines

Causal relationships

Three types of possible relationships SymmetricalTwo variables fluctuate togetherChanges in either variable are not due to changes in other but due to another cause variable Number of cell phones & consumption of water ( both related to population) Attendance & sales of cold drinks (Rainfall) Low attendance of youth in martial art clubs and active participation in discotheques & parties is a result of lifestyle preference

 Reciprocal Two variables mutually influence each other R&D expenditure & Annual profits Manpower & deposits Reading an ad. leads a person to buy a product After usage it sensitises the person to notice & read successive ads

 Asymmetrical Changes in one variable are responsible for changes in another variable Increase in price may lead to fall in sales Rainfall & growth in crops Height & weight Income & expenditure

Examples of Exploratory research

Department Store Patronage Project -Review of academic & trade literature to identify relevant demographic & psychographic factors that influence consumer patronage -Interviews with retailing experts to determine trends :new types of outlets ,shifts in consumer patronage patterns (Internet shopping) -Comparative analysis of 5 best & 5 worst stores of the same chain to get some idea of factors that influence store performance -Focus group to determine factors considered important by consumers in store selection

More Example of Descriptive Research

Department Store Patronage Project WhoWho should be considered a patron of a particular department store -Anyone who enters the store -Anyone who purchases from the store -Anyone who purchase at least once a month -Person in the HH responsible for shopping

 What What information should be obtained from the respondents Frequency with which different stores are patronised for specific product categories Evaluation of various stores in terms of salient choice criteria Information pertaining to specific hypotheses to be tested Psychographics & lifestyles, media consumption habits, Demographics

 When When should the information be obtained from the respondents -Before shopping -While shopping - Immediately after shopping -Some time after shopping to allow time for evaluating their shopping experience

 Where Where should the respondents be contacted to obtain required information -In the store -Outside the store but in the mall -In the parking lot -At home

 Why Why are we obtaining information from respondents ? Why is the marketing research project being conducted -improve the image of sponsoring store -Improve patronage and market share -Change the product mix -Develop a suitable promotional campaign -Decide on the location of a new store

 Way In what way are we going to obtain information from the respondents -Observation of respondents behaviour -Personal interviews -Telephone interviews -Mail interviews -Electronic (Email or internet) interviews

Examples of causal Studies Test Marketing Application of controlled experiment done in limited but carefully selected test marketsmarketing mix variables (independent variables) are varied and sales (dependent variable) are monitored so that an appropriate marketing strategy can be determined

Choosing a research design

Various factors help in selection of the research design & its various aspects These are listed below -Degree of formality desired : Informal or Formal depending on immediate objectives: Exploratory studies are conducted for developing guidelines & hypothesis for future research &are informal in nature with loose structure : Conclusive studies are initiated with proper hypothesis & are formal in nature with a proper structure

 Purpose of the study: If the study is being conducted to find out what,when where,who or how much then a descriptive study is best suited: If study aims at finding out why a causal study is suitable: How many employees are leaving ,when they are leaving & such other issues are covered by descriptive studies: For finding why they are leaving a causal study is suitable.

 Method of data collection : Selection of method for data collection can be done based on the study to be conducted :If research has to be done on traffic flow at a particular junction observation method is the best: If consumer perceptions about a product are to be estimated then questionnaire method is appropriate Control of variables: If certain variables need to be controlled to find out cause & effect relationship Experiments are conducted by manipulating them.

 Time Dimension: Studies could be either cross sectional or longitudinal or both: Cross sectional studies are conducted once while longitudinal studies are repeated over a period of time Scope of the study: Scope of the study could be limited or wide depending on the problem at hand: Scope of exploratory study could be limited Scope of conclusive study could be wide involving selection of statistical sample to represent the entire population

 Research Environment: Field conditions or laboratory conditions :under field conditions research is carried out as it is while in laboratory conditions real life situations are enacted and an artificial environment is created for research. Subjects perception: Effectiveness of a research study varies according to perceptions of subjects under study: If respondents know that research is being carried or they are being observed they may respond differently. One has to be watchful about such changes to ensure effectiveness