RESEARCH METHODOLOGY
LESSON 2:
STEPS IN RESEARCH PROCESS
Students, in our introduction to the subject lecture we had
conquered the areas where research is used as a tool for decision-
making. Also we know that all business operates in the world of
uncertainty. Research methodology minimizes the degree of
uncertainty involved in management decisions. Research lays the
structure for decision-making
Let us recapitulate what we have studied in the last lecture. We saw
that research plays a dominant role in the field of
• Marketing
• Production
• Banking
• Materials
• Human Resource Development
• Government
You can classify Research in one of three categories:
1. Exploratory research
2. Descriptive research
3. Causal research
These classifications are made according to your objective of the
research. In some cases the research will fall into one of these
categories, but in other cases different phases of the same research
project will fall into different categories.
Now we will discuss these categories in detail:
Exploratory Research
Exploratory research has the goal of formulating problems more
precisely, clarifying concepts, gathering explanations, gaining
insight, eliminating impractical ideas, and forming hypotheses.
Exploratory research can be performed using a literature search,
surveying certain people about their experiences, focus groups,
and case studies.
When you will be surveying people, exploratory research studies
would not try to acquire a representative sample, but rather, seek
to interview those who are knowledgeable and who might be able
to provide you the insight concerning the relationship among
variables.
Case studies can include contrasting situations or benchmarking
against an organization known for its excellence. Exploratory
research may develop hypotheses, but it does not seek to test
them. Exploratory research is characterized by its flexibility.
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Descriptive Research
Descriptive research is more rigid than exploratory research and
seeks to describe users of a product, determine the proportion of
the population that uses a product, or predict future demand for
a product or describes the happening of a certain phenomenon.
As opposed to exploratory research, if you are doing descriptive
research you should define questions, people surveyed, and the
method of analysis prior to beginning data collection.
In other words, the who, what, where, when, why, and how aspects
of the research should be defined. Such preparation allows you
the opportunity to make any required changes before the costly
process of data collection has begun.
There are two basic types of descriptive research:
Longitudinal Studies
Longitudinal studies are time series analyses that make repeated
measurements of the same individuals, thus allowing you to
monitor behaviour such as brand switching. However, longitudinal
studies are not necessarily representative since many people may
refuse to participate because of the commitment required.
Cross-sectional Studies
Cross-sectional studies sample the population to make
measurements at a specific point in time. A special type of cross-
sectional analysis is a cohort analysis, which tracks an aggregate of
individuals who experience the same event within the same time
interval over time. You can use Cohort analyses for long-
forecasting of product demand.
Causal Research
Casual Research seeks to find cause and affect relationships between
variables. It accomplishes this goal through laboratory and field
experiments.
Research process involves important steps-
• Problem definition
• Research proposal
• Research Design
• Data Collection
• Data Analysis & interpretation
• Report writing
• Interpretation of Research
Refer diagram below to understand each steps clearly
The Research Process
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Problem Definition
First of all one should be clear as what exactly the problem is.
If you are working in a company, the problem is assign by the top
management; usually you get broad ideas regarding the problem.
Then with the broad concept from the top management you
define the specific problem statement.
Or if you are doing some research project then you have to identify
your problem statement of your own. Remember your problem
statement should be specific.
Let us suppose that we want to know which of the two methods
can be employed
Method I or Method II
The researcher should be clear with the alternative choices he
has.Should other Methods be also considered?
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Let us assume that the alternative choices are clearly
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specified: either II or I be employed.We have identified
the alternative choices but not completely specified
the problem.
The complete problem is concerned with the criterion
that will determine the superiority of the two
methods.
The criterion could be:
• Cost
• Efficiency of materials
• Availability of resources, etc.
There are three aspects of research problem
a. The specification of units to be studied
b. The identification of the particular units within
the scope of study
c. The specification of the kind of information to
be sought.
What would you like to know if information is
free and without error?
A complete answer to this question defines the initial
research problem. It can be redefined later if some
difficulty arises.
Research Proposal
Research proposal are necessary for all business
research, it may be the internal proposal or it may be
the external proposal. But research proposal is not
required in case of research studies for P. hd., or paper
presentation as concerned.
A proposal is known as a work plan, prospectus,
outline, statement of intent, or draft plan. The
proposal tells us what, why, how, where, and to whom
it will be done.
The proposal of research is:
1. To present the management question to be
researched and its importance
2. To discuss the research efforts of others who
have worked on related management questions.
3. To suggest the data necessary for solving the
management question and how the data will be
gathered, treated, and interpreted.
We will discuss the research proposal in detail in lesson
3.
Research Design
Data Collection -Types and Sources:
Once the researcher has decided the ‘Research Design’,
the next job is of data collection. For data to be
useful, our observations need to be organized so
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 that we can get some patterns and come to logical conclusions.
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Statistical investigation requires systematic collection of data, so
that all relevant groups are represented in the data.
To determine the potential market for a new product, for example,
the researcher might study 500 consumers in a certain geographical
area. It must be ascertained that the group contains people
representing variables such as income level, race, education and
neighborhood. The quality of data will greatly affect the
conclusions and hence, utmost importance must be given to this
process and every possible precaution should be taken to ensure
accuracy, while gathering and collecting data.
Depending upon the sources utilized, whether the data has come
from actual observations or from records that are kept for normal
purposes, statistical data can be classified into two categories,
primary and secondary.
Primary Data
Primary data is one, which is collected by the investigator himself
for the purpose of a specific inquiry or study. Such data is original
in character and is generated by surveys conducted by individuals
or research institutions.
Some common types of primary data are:
• Demographic and socioeconomic characteristics
• Psychological and lifestyle characteristics
• Attitudes and opinions
• Awareness and knowledge:for example, brand awareness
• Intentions:for example, purchase intentions. While useful,
intentions are not a reliable indication of actual future
behavior.
• Motivation:a person’s motives are more stable than his/her
behavior, so motive is a better predictor of future behavior
than is past behavior.
Behaviour
Primary data can be obtained by:
Communication
Involves questioning respondents either verbally or in writing.
This method is versatile, since you need only to ask for the
information; however, the response may not be accurate.
Communication usually is quicker and cheaper than observation.
Observation
Involves the recording of actions and is performed by either a
person or some mechanical or electronic device. Observation is
less versatile than communication since some attributes of a person
may not be readily observable, such as attitudes, awareness,
knowledge, intentions, and motivation. Observation also might
take longer since observers may have to wait for appropriate events
to occur, though observation using scanner data might be quicker
and more cost effective. Observation typically is more accurate
than communication.
Personal Interviews
Have an interviewer bias that mail-in questionnaires do not have.
For example, in a personal interview the respondent’s perception
of the interviewer may affect the responses
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Questionnaire
The questionnaire is an important tool for gathering primary data.
Poorly constructed questions can result in large errors and invalidate
the research data, so significant effort should be put into the
Questionnaire
Secondary Data
When an investigator uses the data, which has already been collected
by others, such data is called secondary data. This data is primary
data for the agency that collects it and becomes secondary data for
someone else who uses this data for his own purposes. The
secondary data can be obtained from journals, reports, government
publications, publication of professional and research organization
and so on. For example, if a researcher desires to analyze the
weather conditions of different regions, he can get the required
information or data from the records of the meteorology
department.
There are several criteria that you should use to evaluate secondary
data.
• Whether the data is useful in the research study.
• How current the data is and whether it applies to time period
of interest.
• Errors and accuracy - whether the data is dependable and can
be verified.
• Presence of bias in the data.
• Specifications and methodologies used, including data
collection method, response rate, quality and analysis of the
data, sample size and sampling technique, and questionnaire
design.
• Objective of the original data collection.
• Nature of the data, including definition of variables, units
of measure, categories used, and relationships examined.
Data Collection Procedure for Primary
Data
Planning the Study
Since the quality of results gained from statistical data depends
upon the quality of information collected, it is important that a
sound investigative process be established to ensure that the data
is highly representative and unbiased. This requires a high degree
of skill and also certain precautionary measures may have to be
taken.
Modes of Data Collection
Following are widely used methods for collection of primary data:
• Observation
• Experimentation
• Questionnaire
• Interviewing
• Case Study Method
Observation Process
Observing the process at work collects information. The following
are a few examples.
i. Service Stations:Pose as a customer, go to a service station
and observe
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ii. To evaluate the effectiveness of display of the Dunlop
cushions in a departmental store, an observer notes:
• How many pass by?
• How many stopped to look at the display?
• How many decide to buy?
iii. Super Market What is the best location in the shelf? Hidden
cameras are used.
iv. Concealed tape recorder with the investigator helps to
determine typical sales arguments and find out sales
enthusiasm shown by various salesmen. By this method,
response bias is eliminated.
The method can be used to study sales techniques, customer
movements, customer response, etc. However, the customer’s/
consumer’s state of mind, their buying motives, their images are
not revealed. Their income and education is also not known. It
also takes time for the investigator to wait for particular sections
to take place.
Experimental Method:
Many of the important decisions facing the marketing executives
cannot be settled by secondary research, observation or by surveying
the opinions of customers or experts.
Experimental method may be used in the following situations.
i. What is the best method for training salesmen?
ii. What is the best remuneration plan for salesmen?
iii. What is the best shelf arrangement for displaying a product?
iv. What is the effectiveness of a point-of-purchase display?
v. What package design should be used?
vi. Which copy is the most effective?
vii.What media are the most effective?
viii.Which version of a product would consumers like best?
In a marketing experiment, the experimental units may be
consumers, stores, sales territories, etc.\Factors or marketing
variables under the control of the researcher which can be studied
are price, packaging, display, sales incentive plan, flavor, color shape,
Competitor’s actions, weather changes, in cooperative dealers, etc.
are environmental factors.
To study the effect of the marketing variables in the presence of
environmental factors, a sufficiently large sample should be used.
Or sometimes a control group is set up. A Control group is a
group equivalent to the experimental group and differing only in
not receiving any treatment.
The result/ response of a marketing experiment will be in the
form of sales, attitudes or behaviour.
Data Analysis-Preliminary Steps
• Before the analysis can be performed, raw data must be
transformed into the right format.
• Then, it must be edited so that errors can be corrected or
omitted.
• The data must then be coded; this procedure converts the
edited raw data into numbers or symbols. A codebook is
created to document how the data was coded.
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• Finally, the data is tabulated to count the number of samples
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falling into various categories.
Simple tabulations count the occurrences of each variable
independently of the other variables.
Cross tabulations, also known as contingency tables or cross tabs,
treats two or more variables simultaneously. However, since the
variables are in a two-dimensional table, cross tabbing more than
two variables is difficult to visualize since more than two
dimensions would be required. Cross tabulation can be performed
for nominal and ordinal variables. Cross tabulation is the most
commonly utilized data analysis method in marketing research.
Many studies take the analysis no further than cross tabulation.
This technique divides the sample into sub-groups to show how
the dependent variable varies from one subgroup to another. A
third variable can be introduced to uncover a relationship that
initially was not evident.
Conjoint Analysis
The Conjoint Analysis is a powerful technique for determining
consumer preferences for product attributes.
Hypothesis Testing
A basic fact about testing hypotheses is that a hypothesis may be
rejected but that the hypothesis never can be unconditionally
accepted until all possible evidence is evaluated.
In the case of sampled data, the information set cannot be
complete. So if a test using such data does not reject a hypothesis,
the conclusion is not necessarily that the hypothesis should be
accepted.
The null hypothesis in an experiment is the hypothesis that the
independent variable has no effect on the dependent variable. The
null hypothesis is expressed as H0. This hypothesis is assumed to
be true unless proven otherwise. The alternative to the null
hypothesis is the hypothesis that the independent variable does
have an effect on the dependent variable. This hypothesis is known
as the alternative, research, or experimental hypothesis and is
expressed as H1. This alternative hypothesis states that the
relationship observed between the variables cannot be explained
by chance alone.
There are two types of errors in evaluating hypotheses:
• Type I error: occurs when one rejects the null hypothesis and
accepts the alternative, when in fact the null hypothesis is
true.
• Type II error: occurs when one accepts the null hypothesis
when in fact the null hypothesis is false.
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 Because their names are not very descriptive, these types of errors
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sometimes are confused. Some people jokingly define a Type III
error to occur when one confuses Type I and Type II. To illustrate
the difference, it is useful to consider a trial by jury in which the
null hypothesis is that the defendant is innocent. If the jury convicts
a truly innocent defendant, a Type I error has occurred. If, on the
other hand, the jury declares a truly guilty defendant to be innocent,
a Type II error has occurred.
Hypothesis testing involves the following steps:
• Formulate the null and alternative hypotheses.
• Choose the appropriate test.
• Choose a level of significance (alpha) - determine the
rejection region.
• Gather the data and calculate the test statistic.
• Determine the probability of the observed value of the test
statistic under the null hypothesis given the sampling
distribution that applies to the chosen test.
• Compare the value of the test statistic to the rejection
threshold.
• Based on the comparison, reject or do not reject the null
hypothesis.
• Make the marketing research conclusion.
In order to analyze whether research results are statistically
significant or simply by chance, a test of statistical significance can
be run
Tests of Statistical Significance
The chi-square goodness-of-fit test is used to determine whether
a set of proportions have specified numerical values. It often is
used to analyze bivariate cross-tabulated data.
Some examples of situations that are well suited for this test are:
• A manufacturer of packaged products test markets a new
product and wants to know if sales of the new product will
be in the same relative proportion of package sizes as sales
of existing products.
• A company’s sales revenue comes from Product A (50%),
Product B (30%), and Product C (20%). The firm wants to
know whether recent fluctuations in these proportions are
random or whether they represent a real shift in sales.
Defining k categories and observing the number of cases falling
into each category perform the chi-square test. Knowing the
expected number of cases falling in each category, one can define
chi-squared as:
?2 = SOi - Ei )2 / Ei
i observations and can be used with categorical variables. Note that
Where
Oi = the number of observed cases in category i,”
E i = the number of expected cases in category i,
k = the number of categories,
the summation runs from i = 1 to i = k.
Before calculating the chi-square value, one needs to determine the
expected frequency for each cell. This is done by dividing the
number of samples by the number of cells in the table.
To use the output of the chi-square function, one uses a chi-
square table. To do so, one needs to know the number of degrees
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of freedom (df). For chi-square applied to cross-tabulated data,
the number of degrees of freedom is equal to
(number of columns - 1) (number of rows - 1)
This is equal to the number of categories minus one. The
conventional critical level of 0.05 normally is used. If the calculated
output value from the function is greater than the chi-square look-
up table value, the null hypothesis is rejected.
Anova
Another test of significance is the Analysis of Variance (ANOVA)
test. The primary purpose of ANOVA is to test for differences
between multiple means. Whereas the t-test can be used to
compare two means, ANOVA is needed to compare three or more
means. If multiple t-tests were applied, the probability of a TYPE
I error (rejecting a true null hypothesis) increases as the number of
comparisons increases
One-way ANOVA examines whether multiple means differ. The
test is called an F-test. ANOVA calculates the ratio of the variation
between groups to the variation within groups (the F ratio). While
ANOVA was designed for comparing several means, it also can be
used to compare two means. Two-way ANOVA allows for a second
independent variable and addresses interaction.
To run a one-way Anova, use the following steps:
• Identify the independent and dependent variables.
• Describe the variation by breaking it into three parts - the
total variation, the portion that is within groups, and the
portion that is between groups (or among groups for more
than two groups).
The total variation (SStotal) is the sum of the squares of the
differences between each value and the grand mean of all the values
in all the groups. The in-group variation (SSwithin) is the sum of
the squares of the differences in each element’s value and the group
mean. The variation between group means (SSbetween) is the total
variation minus the in-group variation (SStotal - SSwithin).
1. Measure the difference between each group’s mean and the
grand mean.
2. Perform a significance test on the differences.
3. Interpret the results.
This F-test assumes that the group variances are approximately
equal and that the observations are independent. It also assumes
normally distributed data; however, since this is a test on means
the Central Limit Theorem holds as long as the sample size is not
too small
ANOVA is efficient for analyzing data using relatively few
regression can perform a similar analysis to that of ANOVA.
Discriminant Analysis
Analysis of the difference in means between groups provides
information about individual variables, it is not useful for
determine their individual impacts when the variables are used in
combination. Since some variables will not be independent from
one another, one needs a test that can consider them
simultaneously in order to take into account their interrelationship.
One such test is to construct a linear combination, essentially a
weighted sum of the variables. To determine which variables
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discriminate between two or more naturally occurring groups,
discriminant analysis is used. Discriminant analysis can determine
which variables are the best predictors of group membership. It
determines which groups differ with respect to the mean of a
variable, and then uses that variable to predict new cases of group
membership. Essentially, the discriminant function problem is a
one-way ANOVA problem in that one can determine whether
multiple groups are significantly different from one another with
respect to the mean of a particular variable. A discriminant analysis
consists of the following steps:
1. Formulate the problem.
2. Determine the discriminant function coefficients that result
in the highest ratio of between-group variation to within-
group variation.
3. Test the significance of the discriminant function.
4. Interpret the results.
5. Determine the validity of the analysis.
Discriminant analysis analyzes the dependency relationship, whereas
factor analysis and cluster analysis address the interdependency
among variables.
Factor Analysis
Factor analysis is a very popular technique to analyze
interdependence. Factor analysis studies the entire set of
interrelationships without defining variables to be dependent or
independent. Factor analysis combines variables to create a smaller
set of factors.
Mathematically, a factor is a linear combination of variables. A
factor is not directly observable; it is inferred from the variables.
The technique identifies underlying structure among the variables,
reducing the number of variables to a more manageable set. Factor
analysis groups variables according to their correlation
The factor loading can be defined as the correlations between the
factors and their underlying variables.
A factor-loading matrix is a key output of the factor analysis. An
example matrix is shown below.
Factor 1 Factor 2 Factor 3
Variable 1
Variable 2
Variable 3
Column's Sum of Squares:
Column’s Sum of Squares
Each cell in the matrix represents correlation between the variable
and the factor associated with that cell. The square of this correlation
represents the proportion of the variation in the variable explained
by the factor. The sum of the squares of the factor loadings in
each column is called an eigen value. An eigen value represents the
amount of variance in the original variables that is associated with
that factor. The communality is the amount of the variable variance
explained by common factors
A rule of thumb for deciding on the number of factors is that
each included factor must explain at least as much variance as does
an average variable. In other words, only factors for which the
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eigen value is greater than one are used. Other criteria for
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determining the number of factors include the Scree plot criteria
and the percentage of variance criteria.
To facilitate interpretation, the axis can be rotated. Rotation of the
axis is equivalent to forming linear combinations of the factors. A
commonly used rotation strategy is the varimax rotation. Varimax
attempts to force the column entries to be either close to zero or
one.
Cluster Analysis
Market segmentation usually is based not on one factor but on
multiple factors. Initially, each variable represents its own cluster.
The challenge is to find a way to combine variables so that relatively
homogenous clusters can be formed. Such clusters should be
internally homogenous and externally heterogeneous. Cluster
analysis is one way to accomplish this goal. Rather than being a
statistical test, it is more of a collection of algorithms for grouping
objects, or in the case of marketing research, grouping people.
Cluster analysis is useful in the exploratory phase of research when
there are no a-priori hypotheses.
Cluster Analysis Steps
Formulate the problem, collecting data and choosing the variables
to analyze.
Choose a distance measure. The most common is the Euclidean
distance. Other possibilities include the squared Euclidean distance,
city-block (Manhattan) distance, Chebychev distance, power
distance, and percent disagreement.
Choose a clustering procedure (linkage, nodal, or factor
procedures).
Determine the number of clusters. They should be well separated
and ideally they should be distinct enough to give them descriptive
names such as professionals, buffs, etc.
Profile the clusters.
Assess the Validity of the Clustering
The format of the marketing research report varies with the needs
of the organization.
The report often contains the following sections:
Authorization letter for the research
• Table of Contents
• List of illustrations
• Executive summary
• Research objectives
• Methodology
• Results
• Limitations
• Conclusions and recommendations
• Appendices containing copies of the questionnaires, etc
Data is then processed in order to summarise the results
It seeks to determine how units covered in the research project
respond to the items under investigation.
It could be
• Univariate
• Bivariate
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 • Multivariate
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Interpretation of Results
It is the “so what”? of research.
Research is wasted if it is not used in decision making or influencing
actions. Not only the results should be interpreted into action
recommendations but the recommendations must also be
communicated in an understandable manner. Results should be
presented in as simple manner as possible.
Basic Requirement
1. Researcher must understand the proper interpretation of
research results and the assumptions embodied in them.
2. Researcher should understand the kinds of questions
research can handle and the type of structure required making
a problem “researchable”
3. Researcher must be capable of appraising the feasibility of
research proposals
Special Case
In management maximum research is done in the field of
marketing.
We conceptualize the marketing research process as consisting of
six steps. Each and every step in market research we will be doing
in detail. First let us discuss these briefly now.
Step 1: Problem Definition
The first step in any marketing research project is to define the
problem. In defining the problem, the you should take into
account
• The purpose of the study,
• The relevant background information,the information
needed, and
• How it will be used in decision-making.
Problem definition involves discussion with the
decision makers,
• Interviews with industry experts,
• Analysis of secondary data, and
• Perhaps, some qualitative research, such as focus groups.
Once the problem of investigation has been precisely defined, the
research can be designed and conducted properly
Step 2: Development of an Approach to the Problem
Development of an approach to the problem includes
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• Formulating an objective or theoretical framework,
• analytical models,
• Research questions, and hypotheses and identifying the
information needed.
This process is guided by
• Discussion with management and industry experts,
• Analysis of secondary data,
• Qualitative research, and
• Pragmatic considerations
Step 3: Research Design Formulation
A research design is a framework or blueprint for conducting the
marketing research project. It details the procedures necessary for
obtaining the required information, and its purpose is to design a
study that will test the hypotheses of interest, determine possible
answers to the research questions, and provide the information
needed for decision making.
Conducting exploratory research precisely defines the variables,
and designing appropriate scales to measure them are also a part
of the research design
The issue of how the data should be obtained from the
respondents (for example, by conducting a survey or an
experiment) must be addressed. It is also necessary to design a
questionnaire and a sampling plan to select respondents for the
study.
More formally, formulating the research design involves the
following steps:
1. Definition of the information needed
2. Secondary data analysis
3. Qualitative research
4. Methods of collecting quantitative data (survey, observation,
and experimentation)
5. Measurement and scaling procedures
6. Questionnaire design
7. Sampling process and sample size
8. Plan of data analysis
Step 4: Fieldwork or Data Collection
Data collection involves a field force or staff that operates either in
the field, as in the case of personal interviewing (in-home, mall
intercept, or computer-assisted personal interviewing), from an
office by telephone (telephone or computer-assisted telephone
interviewing), through mail (traditional mail and mail panel
surveys with pre-recruited households), or electronically (e-mail
or Internet).
Proper selection, training, supervision, and evaluation of the field
force help minimize data-collection errors.
Step 5: Data Preparation and Analysis
Data preparation includes the editing, coding, transcription and
verification of data. Each questionnaire or observation form is
inspected or edited and, if necessary, corrected. Number or letter
codes are assigned to represent each response to each question in
the questionnaire. The data from the questionnaire are transcribed
or key punched onto magnetic tape or disks, or input directly into
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to the components of the marketing research problem and, thus,
provide input in to the management decision problem.
Activity 2
Step 6: Report Preparation and Presentation Explain the importance of interpretation of results?
The entire project should be documented in a written report that
addresses the specific research questions identified, describes the
approach, the research design, data collection, and data analysis
procedures adopted, and presents the results and the major
findings. The findings should be presented in a comprehensible
format so that management can readily use them in the decision
making process. In addition, an oral presentation should be Activity 3
made to management using tables, figures, and graphs to enhance Name and briefly discuss the five steps of research process?
clarity and impact
Errors in Research Process
There are 2 types of errors
a. Sampling error
b. Non sampling error
Sampling error is the difference between sample value and
corresponding population value.
Non sampling error are errors in the difference stages of research.as
Activity 4
a. Defective problem design Explain with the help of a suitable example the need for
b. Defective population definition introducing two types of environmental conditions in a research
c. Frame set problem?
d. Surrogate information error
e. Non response error
f. Measurement error
g. Experimental error
h. Poor questionnaire design
i. Interview bias
j. Data processing error
Clue
k. Data analysis errors The environmental conditions specified in the research problem
l. Interpretation errors are of two types:
References and Further Readings i. Those beyond firm’s control
1. Boyd, westfall, and stasch, “Marketing Research Text and ii. Those within the firm’s control
Cases”, All India Traveller Bookseller, New Delhi.
2. Brown, F.E. “Marketing Research, a structure for decision
making”, Addison – Wesley publishing company
3. Kothari, C.R. “Research Methodology-Methods and
Techniques”, Wiley Eastern Ltd.
4. Stockton and Clark, “Introduction to Business and
Economic Statistics”, D.B.Taraporevala Sons andCo. Private Activity 5
Limited, Bombay. A local supermarket has experienced a decline in unit _sales and
little change in rupee value sales. Profits have almost vanished.
5. Dunn Olive Jean and Virginia A Clarck, “Applied Statistics”
The chief executive in searching for ways to revitalize the operation
John Wiley and Sons.
was advised to increase the number of hours the market is open
6. Green Paul E and Donald S. Tull, “Research for Marketing for business. He comes to you for _advice in structuring a research
Decisions” Prentice Hall of India, New Delhi problem that will provide relevant information for decision-
Activity 1 making.
The definition of the problem comprise Define the problem, taking care to:
a. State the relevant question
b. Enumerate the alternative answers,

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 c. Clearly define the units of analysis and characteristics of
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interest.
What are the relevant “ states of nature” which would lead to the
selection each alternative answer?

Activity 6
A shampoo manufacturing company wishes to test two types of
makes in order to determine which is the best one .
A. Propose and defend a precise definition of “best”
B. What is the set of hypothesis that should be tested?
C. What action would be associated with each hypothesis?

Activity 7
Define and state the research problem for the following case:
“Why is the productivity in Japan so much higher than in India”?
Think about problem in a broader sense and narrow down the
research problem.

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