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Research and Manager
The Excitement of Research and Why Managers Should Know about Research
Modern technology has made research an exciting and a relatively smooth process.
Today a personal computer with a modem or any means to an Internet connection places
one within easy reach of knowledge of what is happening in the global markets and how
the world economy is impacting on business. By grasping the fundamentals of the
research process and keeping abreast of modern technology, such as computers with
enormous capability to store and retrieve information, you as a manager can face the
competitive global market with its multitude of complex and confusing factors with
greater confidence.
Knowledge of research not only helps one to look at the available information in
sophisticated and creative ways in the fast-paced global environment that businesses face,
but this knowledge also helps in other ways. For example, you can interact more
effectively with research consultants who work for you, you can discriminate between
good and bad studies published in professional journals, and if so desired, you yourself
can undertake research to solve problems. Moreover, knowledge in the business area is
exploding and there is an overwhelming maze of information available through the
Internet, which has to be sifted through to determine its reliability. Identifying the critical
issues, gathering relevant information, analyzing the data in ways. that would help
decision making, and implementing the right course of action, are all facilitated by
understanding business research
Business research can be described as a systematic and organized effort to investigate a

specific problem encountered in the work setting, that needs a solution. It comprises a
series of steps designed and executed, with the goal of finding answers to the issues that
are of concern to the manager in the work environment. This means that the first step in
research is to know where the problem areas exist in the organization, and to identify as
clearly and specifically as possible the problems that need to be studied and resolved.
Once the problem that needs attention is clearly defined, then steps can be taken to gather
information, analyze the data, and determine the factors that are associated with the
problem and solve it by taking the necessary corrective measures. This entire process by
which we attempt to solve problems is called research.
Thus, research involves a series of well-thought-out and carefully executed activities that
will enable the manager to know how organizational problems can be solved, or at least
considerably minimized. Research thus encompasses the processes of inquiry,
investigation, examination, and experimentation. These processes have to be carried out
systematically, diligently, critically, objectively, and logically. The expected end results
would be the discovery that will help the manager to deal with the problem situation.
The difference between the manager who uses common sense alone to analyze and make
a decision in a given situation, and the investigator who uses a scientific method, is that
the latter does a systematic inquiry into the matter and proceeds to describe, explain, or
predict phenomena based on data carefully collected for the purpose
Prepared By –Sanjeev Kumar(Faculty Management)

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Manager and Research

A common experience of all organizations is that the managers thereof encounter
problems big and small on a daily basis, which they have to solve by making the right
decisions. In business, research is usually primarily conducted to resolve problematic
issues in, or interrelated among, the areas of accounting, finance, management, and
marketing. In Accounting, budget control systems, practices, and procedures are
frequently examined. Inventory costing methods, accelerated depreciation, time-series
behavior of quarterly earnings, transfer pricing, cash recovery rates, and taxation methods
are some of the other areas that are researched. In Finance, the operations of financial
institutions, optimum financial ratios, mergers and acquisitions, leveraged buyouts,
intercorporate financing, yields on mortgages, the behavior of the stock exchange, and
the like, become the focus of investigation. Management research could encompass the
study of employee attitudes and behaviors, human resources management, the impact of
changing demographics on management practices, production operations management,
strategy formulation, information systems, and the like. 'Marketing research could
address issues pertaining to product image, advertising, sales promotion, distribution,
packaging, pricing, after-sales service, consumer preferences, new product development,
and other marketing aspects
Managers with knowledge of research have an advantage over those without. Though you
yourself may not be doing any major research as a manager, you will have to understand,
predict, and control events that are dysfunctional to the organization. For example, a new
product developed may not be "taking off," or a financial investment may not be "paying
off' as anticipated. Such disturbing phenomena have to be understood and explained.
Unless this is done, it will not be possible to predict the future of that product or the
prospects of that investment, and how future catastrophic outcomes can be controlled. A
grasp of research methods will enable managers to understand, predict, and control their
environment.
A thought that may cross your mind is that, because you will probably be bringing in
researchers to solve problems instead of doing the research yourself, there is no need to
bother to study about research. The reasons become clear when one considers the
consequences of failure to do so. With the ever-increasing complexity of modern
organizations, and the uncertainty of the environment they face, the management of
organizational systems has become one of constant trouble shooting in the workplace. It
would help if managers could sense, spot, and deal with problems before they get out of
hand. Knowledge of research and problem-solving processes helps managers to identify
problem situations before they get out of control. Although minor problems can be fixed
by the manager, major problems would warrant the hiring of outside researchers or
consultants. The manager who is knowledgeable about research can interact effectively
with them. Knowledge about research processes, design, and interpretation of data also
helps managers to become discriminating recipients of the research findings presented,
and to determine whether or not the recommended solutions are appropriate for
implementation.
Another reason why professional managers today need to know "about research methods
is that they will become more discriminating while sifting through the information
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disseminated in business journals. Some journal articles are more scientific and objective
than others. Even among the scientific articles, some are more appropriate for application
or adaptation to particular organizations and situations than others. This is a function of
the sampling design, the types of organizations studied, and other factors reported in the
journal articles. Unless the manager is able to grasp fully what the published empirical
research really conveys, she or he is likely to err in incorporating some of the suggestions
such publications offer. By the same token, managers can handle with success their own
problems at considerable cost savings by studying the results of "good" (discussed in the
next chapter) published research that has addressed similar issues.
There are several other reasons why professional managers should be knowledgeable
about research and research methods in business. First, such knowledge sharpens the
sensitivity of managers to the myriad variables operating in a situation and reminds then
frequently of the multicausality and multifinality of phenomena, thus avoiding
inappropriate, simplistic notions of one variable "causing" another. Second, when
managers understand the research reports about their organizations handed to them by
professionals, they will be equipped to take intelligent, educated, calculated risks with
known probabilities attached to the success or failure of their decisions. Research then
becomes a useful decision-making tool rather than a mass of incomprehensible statistical
information. Third, because managers become knowledgeable about scientific
investigations, vested interests inside or outside the organization will not prevail. For
instance, an internal research group within the organization will not be able to distort
information or manipulate the findings to their advantage if managers are aware of the
biases that could creep into research and know how data are analyzed and interpreted. As
an example, an internal research team might state that a particular unit to which it is
partial (for whatever reason) has shown increased profits and hence should be allocated
more resources to buy sophisticated equipment to further enhance its effectiveness.
However, the increased profit could have been a one-time windfall phenomenon due to
external environmental factors such as market conditions, bearing no relation wh~tever to
the unit's operating efficiency. Thus, awareness of the different ways in which data could
be camouflaged will help the manager to make the right decision. Fourth, knowledge
about research helps the manager to relate to and share pertinent information with the
researcher or consultant hired for problem solving.
In sum, being knowledgeable about research and research methods helps professional
managers to:
1.Identify and effectively solve minor problems in the work setting.
2.Know how to discriminate good from bad research.
3.Appreciate and be constantly aware of the multiple influences and multiple effects of
factors impinging on a situation.
4.Take calculated risks in decision making, knowing full well the probabilities
associated with the different possible outcomes.
5.Prevent possible vested interests from exercising their influence in a situation.
6.Relate to hired researchers and consultants more effectively.
7.Combine experience with scientific knowledge while making decisions

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INTRODUCTION: WHAT IS RESEARCH?
Research is somewhat intimidating term for some, is simply the process of finding
solutions to a problem after a thorough study and analysis of the situational factors.
Managers in the organizations constantly engage themselves in studying and analyzing
issues and hence are involved in some form of research activity as they make decisions at
the workplace. As is well known, sometimes managers make good decisions and the
problem gets solved, sometimes they make poor decisions and the problem persists, and on
occasions they make such colossal blunders that the organization gets stuck in the mire.
The difference between making good decisions and committing blunders lies in how
managers go about the decision-making process. In other words, good decision making
fetches a "yes" answer to the following questions: Do managers identify where exactly the
problem lies, do they correctly recognize the relevant factors in the situation needing
investigation, do they know what types of information are to be gathered and how, do they
know how to make use of the information so collected and draw appropriate conclusions to
make the right decisions, and finally, do they know how to implement the results of this
process to solve the problem? This is the essence of research and to be a successful
manager it is important for you to know how to go about making the right decisions by
being knowledgeable about the various steps involved in finding solutions to problematic
issues. This is what this subject is all about
The word "research" is derived from the Latin word meaning "to know."
Research is about answering questions, such as:
What do I want to know?
How do I want to gain knowledge?
Why do I want to know it?
Research can be seen as:

-a group of assumptions; a strategy for knowing; a belief system about evidence;
-an established body of knowledge;
-a collection of methods, tools, and techniques
-a purposeful or functional activity
-a process carried on by people
As an established body of knowledge, research is the accumulation of evidence by
researchers over time. It provides a background against which claims for knowledge can
be evaluated, and provides a way for researchers to communicate and compare their
findings.
Research as a collection of methods, tools, and techniques forms the basis for most
research texts and courses in research; its methods are what set it apart from other ways of
acquiring knowledge.
As a purposeful or functional activity, research must justify the resources it consumes to
accomplish its purposes.

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Meaning And Definition Of Research
In order to plan and carry out research, it is necessary for you to know what we mean by
research-in general, as well as in the specialized fields of management
Research is an ORGANIZED and SYSTEMATIC way of FINDING ANSWERS to
QUESTIONS.
SYSTEMATIC because there is a definite set of procedures and steps which you will
follow. There are certain things in the research process, which are always done in order to
get the most accurate results.
ORGANIZED in that there is a structure or method in going about doing research. It is a

planned procedure, not a spontaneous one. It is focused and limited to a specific scope.
FINDING ANSWERS is the end of all research. Whether it is the answer to a hypothesis
or even a simple question, research is successful when we find answers. Sometimes the
answer is no, but it is still an answer.
QUESTIONS are central to research. If there is no question, then the answer is of no use.
Research is focused on relevant, useful, and important questions. Without a question,
research has no focus, drive, or purpose.
Definition
Some of the definitions of Research are:
Redman and Mory define research as a “systematized effort to gain new knowledge”.
Some people consider research as a movement, a movement from known to unknown. It is

actually a voyage to discovery.
According to Clifford Woody“Research comprises of defining and redefining problems,

formulating hypothesis or suggestedsolutions; making deductions and reaching
conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis”.
On evaluating these definitions we can conclude that Research refers to the systematic
method consisting of
• Enunciating the problem,
• Formulating a hypothesis,
• Collecting the fact or data,
• Analyzing the facts and
• Reaching certain conclusions either in the form of solutions
towards the concerned problem or in certain generals for some theoretical formulation.
OBJECTIVE OF RESEARCH
The purpose of research is to discover answers to questions through the application of
scientific procedures. The main aim of research is to find out the truth which is hidden (not
yet known). Though each research study has its own specific purpose, we may think of
research objectives as falling into a number of following broad groupings:

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(i) To gain familiarity with a phenomenon. This type of studies is known as exploratory or
formulative research.
(ii) To portray accurately the characteristics of a particular individual, situation or a group.

This is called descriptive research.
(iii) To determine the frequency with which something occurs. This is called diagrammatic
research.
(iv) To test the hypothesis of a casual relationship between variables. This is called
hypothesis testing research
MOTIVES TO DO RESEARCH
The following are the motives to do research :
(i) To gain knowledge about hidden facts
(ii) To innovate new concepts, theories etc.
(iii) To know the cause-effect relationship.
(iv) To understand, analyse and explore the phenomena.
(v) To enjoy and improve the society.
(vi) To face the challenge in solving the unsolved problems.
(vii) To get a research degree along with its consequential benefits.
(viii) To get respectability and fame.
However, this is not an exhaustive list of factors motivating people to undertake research.
Many more factors like directives of government, employment conditions, studies taken by
non-government organisations (NGO's) social thinking and awakening motivate people to
undertake research
Characteristics of Research
From these definitions it is clear that research is a process for collecting, analyzing and
interpreting information to answer questions. But to qualify as research, the process must
have certain characteristics : it must, as far as possible, be controlled, rigorous, systematic,
valid and verifiable, empirical and critical. Let us briefly examine these Characteristics for
proper understanding
l. Controlled
There are many factors that effect an outcome. In a study of cause and effect relationships
it is important to be able to link the effect (s) with the cause (s) and vice versa. The concept
of control implies that, in exploring causality in relation to two variables, you set up your
study in a way that minimizes the effects of other factors affecting the relationship. This is
possible in physical sciences, where as in social sciences such controls are impossible,
therefore attempts are made to quantify their impact.
2. Rigorous
You must be scrupulous in ensuring that the procedures followed to find answers to
questions are relevant; appropriate and justified. Again, the degree of rigour varies between
the physical and the social sciences and within the social sciences.

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3. Systematic
This implies that the procedures adopted to undertake an investigation follow a certain
logical sequence. The different steps cannot be taken in a haphazard way. Some procedures
must follow others. .
4. Valid and verifiable
This concept implies that whatever you conclude on the basis of your findings is correct
and can be verified by you and others.
5. Empirical
This means that any conclusions drawn are based upon hard evidence gathered from
information collected from real life experiences or observations.
6. Critical
Critical scrutiny of the procedures used and the methods employed is crucial to a research
inquiry. The process of investigation must be foolproof and free from drawbacks. The
process adopted and the procedures used must be able to withstand critiCal scrutiny.
7. Objectivity
It implies that True Research should attempt to find an unbiased answer to the decision-
making problem.
8. Reproducible
A reproducible research procedure is one, which an equally competent researcher could
duplicate, and from it deduces approximately the same results. Precise information
regarding samples-methods, collection etc., should be specified.
9. Relevancy
It furnishes three important tasks:
· It avoids collection of irrelevant information and saves time and money
· It compares the information to be collected with researcher’s criteria for action
· It enables to see whether the research is proceeding in the right direction
10. Control:
Research is not only affected by the factors, which one is investigating but some other
extraneous factors also. It is impossible to control all the factors. All the factors that we
think may affect the study have to be controlled and accounted for.
Importance of Research in Management Decision

The role of research has greatly increased in the field of business and economy as a whole.
The study of research methods provides you with the knowledge and skills you need to
solve the problems and meet the challenges of today’s modern pace of development.Three
factors stimulate the interest in a scientific research to decision making.
i. The manager’s increased need for more and better information.
ii. The availability of improved techniques and tools to meet this need.
iii. The resulting information overload
The usefulness and contribution of research in assisting marketing decisions is so crucial
that it has given rise to the opening of a new field altogether called ‘marketing research’.
Market research is basically the systematic gathering, recording and analyzing of the facts
about business problems with a view to investigate the structure and development of a
market for the purpose of formulating efficient policies for purchasing, production and
sales. Research with regard to demand and market factors has great utility in business.
Market analysis has become an integral tool of business policy. Modern industry with its
large-scale operations tends to create a gulf between the customer and the manufacturer.
Particularly when business is too big and operations are too far-flung, one cannot depend

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upon casual contacts and personal impressions. Research methodology has been developed
as the tool by which business executives keep in touch with their customers. If an
entrepreneur has to make sound decisions, he must know who has customers are and what
they want. To a certain extent he relies on his salesmen and his dealers to supply him with
market information but in recent years, more and more firms/executives have turned to
research methodology as a medium of communication between the customer and the
company. Marketing research is the link between the manufacturer and the consumer and
the means of providing consumer-orientation in all aspects of the marketing function. It is
the instrument of obtaining the knowledge about the market and consumer through
objective methods, which guard against the manufacturer’s subjective bias. Many
Researchers define marketing research as gathering, recording and analyzing of all facts
about problems relating to the transfer and sale of goods and services from producer to
consumer.
Research methodology is an essential prerequisite for consumer oriented marketing. It is
necessary for developing the marketing strategy where in factors under the control of the
organization, viz., product distribution system, advertising, promotion and price can be
utilized so as to obtain maximum results in the context of the factors outside the control of
the organization viz., economic environment, competitor and laws of land.
Role &Scope of Research

Arpi said that "realistic market planning implies knowledge of the present and future state
of the market, in so far as the future can be predicted". Knowledge of the kind required
comes from research activities and the scope of research can be easily defined. An
organisation's research department may just serve the needs and wants of the organisation
or it may submit a competitive tender for research projects from other businesses.
Research projects which are carried out within the organisation are known as in-house
activity. Alternatively, an organisation can commission the services of a market research
agency and other organisations, such as a university. The research industry is a large multi-
million pound market made up of many businesses, many of whom specialise in certain
areas of consumer or industrial markets, and in specific approaches to market research.
Clifton et al identify four reasons why a research agency may need to be used. These are:
• if the company lacks adequate personnel resources

• if there is a need for anonymity in approaching a market
• if disagreements within the company on the potential of a market make an
independent assessment desirable
• if speed in getting information is critical
A business exists not only within its environment of customers and competitors but also its
suppliers and distributors, unless it owns its distribution network. In addition, there are
other influences impacting upon it such as government departments and legislation, its
shareholders and the unions to which its employees belong. There will also be many
external and uncontrollable variables bearing upon it and influencing its marketing
management and strategy. All of these influence the nature of problems with which the
organization has to cope and thus the products it plans to develop for its customers and
markets. Through research, an executive can quickly get a synopsis of the current scenario,
which improves his information base for making sound decisions affecting future

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operations of the enterprise. The following are the major areas in which research plays a
key role in making effective decisions.
Marketing
Marketing research is undertaken to assist the marketing function.Marketing research
stimulates the flow of marketing data from the consumer and his environment to marketing
information system of the enterprise. Market research involves the process of
• Systematic collection
• Compilation
• Analysis
• Interpretation of relevant data for marketing decisions
This information goes to the executive in the form of data. On the basis of this data the
executive develop plans and programmers. Advertising research, packaging research,
performance evaluation research, sales analysis, distribution channel, etc., may also be
considered in management research.Research tools are applied effectively for studies
involving:
1. Demand forecasting
2. Consumer buying behaviour
3. Measuring advertising effectiveness
4. Media selection for advertising
5. Test marketing
6. Product positioning
7. Product potential
Marketing Research
i. Product Research: Assessment of suitability of goods with respect to design and price.
ii. Market Characteristics Research (Qualitative): Who uses the product? Relationship
between buyer and user, buying rates, units in which product is purchased, customs and
habits affecting the use of a product, consumer attitudes, shopping habits of consumers,
brand loyalty, research of special consumer groups, survey of local markets, basic
economic analysis of the consumer market, etc.
iii. Size of Market (Quantitative): Market potential, total sales quota, territorial sales
quota, quota for individuals, concentration of sales and advertising efforts; appraisal of
efficiency, etc.iv. Competitive position and Trends Research
v. Sales Research: Analysis of sales records.
vi. Distribution Research: Channels of distribution, distribution costs.
vii. Advertising and Promotion Research: Testing and evaluating, advertising and
promotion
viii. New product launching and Product Positioning.
Production
Research helps you in an enterprise to decide in the field of production on:
· What to produce
· How much to produce
· When to produce
· For whom to produce

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Some of the areas you can apply research are:
· Product development
· Cost reduction
· Work simplification
· Profitability improvement
· Inventory control
Materials
The materials department uses research to frame suitable policies regarding:
· Where to buy
· How much to buy
· When to buy
· At what prices to buy.
Human Resource Development

You must be Aware that The Human Resource Development department uses research to
study wage rates, incentive schemes, cost of living, employee turnover rates, employment
trends, and performance appraisal. It also uses research effectively for its most important
activity namely manpower planning.
Solving Various Operational and Planning Problems of Business and Industry

Various types of researches, e.g., market research, operations research and motivational
research, when combined together, help in solving various complex problems of business
and industry in a number of ways. These techniques help in replacing intuitive business
decisions by more logical and scientific decisions
Government and Economic System
Research helps a decision maker in a number of ways, e.g., it can help in examining the
consequences of each alternative and help in bringing out the effect on economic
conditions. Various examples can be quoted such as’ problems of big and small industries
due to various factors–up gradation of technology and its impact on lab our and supervisory
deployment, effect of government’s liberal policy, WTO and its new guidances, ISO
9000/14000 standards and their impact on our exports allocation of national resources on
national priority basis, etc. Research lays the foundation for all Government Policies in our
economic system. We all are aware of the fact that research is applied for brining out union
finance budget and railway budget every year. Government also uses research for economic
planning and optimum utilization of resources for the development of the country.
Significance of Research
"All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to
inquiry, and inquiry leads to invention " is a famous Hudson Maxim
Research inculcates scientific and inductive thinking and it promotes the development
of logical habits of thinking and organization.The role of research in several fields of
applied economics, whether related to business or to the economy as a whole, has
greatly increased in modern times.
Research provides the basis for nearly all government policies in our economic system.
For Instance, government's budgets rest in part on an analysis of the needs and desires of
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the people and on the availability of revenues to meet these needs. The cost of needs has to
be equated to probable revenues and this is a field where research is most needed. Through
research we can devise alternative policies and can as well examine the consequences of
each of these alternatives.
Decision-making may not be a part of research, but research certainly facilitates the
decisions of the policy maker. Government has also to chalk out programmes for dealing
with all facets of the country’s existence and most of these will be related directly or
indirectly to economic conditions. The plight of cultivators, the problems of big and small
business and industry, working conditions, trade union activities, the problems of
distribution, even the size and nature of defence services are matters requiring research.
Thus, research is considered necessary with regard to the allocation of nation's resources.
Another area in government, where research is necessary, is collecting information on the
economic and social structure of the nation. Such information indicates what is happening
in the economy and what changes are taking place. Collecting such statistical information
is by no means a routine task, but it involves a variety of research problems. Thus, in the
context of government, research as a tool to economic policy has three distinct phases of
operation, viz.,
(i) investigation of economic structure through continual compilation of facts;
(ii) diagnosis of events that are taking place and the analysis of the forces underlying
them; and
(iii) the prognosis, i.e., the prediction of future developments.
Research has its special significance in solving various operational and planning
problems of business and industry. Operations research and market research, along with
motivational research, are considered crucial and their results assist, in more than one way,
in taking business decisions. Market research is the investigation of the structure and
development of a market for the purpose of formulating efficient policies for purchasing,
production and sales. Operation Research refers to the application of mathematical, logical
and analytical techniques to the solution of business problems of Cost minimization or of
profit maximization or what can be termed as optimization problems. Motivational
research of determining why people behave as they do is mainly concerned with market
characteristics. All these are of great help to people in business and industry who are
responsible taking business decisions. Research with regard to demand and market factors
has great utility in business. Given knowledge of future demand, it is easy for an industry
to adjust its supply schedule within the limits of its projected capacity. Market analysis has
become an integral tool of business policy these days. Business budgeting, which
ultimately results projected profit and loss account, is based mainly on sales estimates,
which in turn depends on business research. Research replaces intuitive business decisions
by more logical and scientific decisions.
Research is equally important for social scientists in studying social relationships seeking
answers to various social problems. It provides the intellectual satisfaction of knowing
things better and also of practical utility for the social scientist to know for the sake of
being able to do something better or in a more efficient manner. Research in Social
sciences is concerned both with knowledge for its own sake and with knowledge for what
contribute to practical concerns.
In addition to what has been stated above, the significance of research can also be
understood keeping in view the following points:
(a) To those students who are to write a master's or Ph.D. thesis, research may mean
careerism or a way to attain a high position in the social structure;
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(b) To professionals in research methodology, research may mean a source of livelihood;
(c) To philosophers and thinkers, research may mean the outlet for new ideas and insights;
(d) To literary men and women, research may mean the development of new styles and
creative work;
(e) To analysts and intellectuals, research may mean the generalizations of new
theories.Thus, research is the fountain of knowledge for the sake of knowledge and an
important source of providing guidelines for solving different business, governmental and
social problems. It is a sort of formal training, which enables one to understand the new
developments in one's field in a better way.
CRITERION OF GOOD RESEARCH

Whatever may' be the types of research works &, studies, one thing that is important is that
they all meet on the common ground of scientific method employed by them. One expects
scientific research to satisfy the following criterion:
1. Purpose clearly defined: The purpose of research should be clearly defined & common
concepts be used.
2. Research process detail: The research procedure used should be described in sufficient
detail to permit another researcher to repeat the research for further advancement, keeping
the continuity of what has already been attained.
3. Research Design thoroughly planned : The procedural design of the research should be
carefully planned to yield results that are as objective as possible.
4. High ethical standards applied : Ethical issues in research reflect important moral
concerns about the practice of responsible behaviour in society. Careful consideration must
be given to those research situations in which there is a possibility for physical or
psychological harm, exploitation, or loss of dignity.
5. Limitations frankly revealed : The researcher should report with complete frankness,
flaws in procedural design and estimate their effects upon the findings.
6. Adequate Analysis for decision makers need: The analysis of data should be sufficient
to reveal its significance & the method of analysis used should be appropriate\ate. The
validity and reliability of data should be checked carefully.
7. Findings presented unambiguously: Presentation of the data should be comprehensive,

easily understood to the decision maker, and so organized that the decision maker can
readily locate critical findings.
8. Conclusions justified: Conclusions should be confined to those justified by the data

Of the research and limited to those for which data provide sound basis

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The Limitations of Research
One of the major weaknesses of research is that it is a time consuming activity and in
commercial life it is an old but true cliché to say that "time costs money". Invariably,
management wants market research data "yesterday" and is impatient for research results.
It is for this reason that many large companies are willing to pay high fees to research
agencies for data to be collected speedily and efficiently.
Research data reports on current and past behaviour and from the moment the
research activity ceases the data becomes historical. The data is measuring human
behaviour and although the data collection ceases, the human behaviour pattern continues
and so the data is quickly out-of-date. This could be crucial if the pattern of behaviour
changes significantly immediately after the data collection ceases, since the change is not
being monitored. It may be a change in consumption patterns which effects market share
and so the organization needs to be aware. Even so, the data collected is substantial and
useful and can be used, along with other variables, to predict future patterns of behaviour.
However, it should not be relied on alone.
Market research data is never complete as it never provides the total amount of data and
information that managers need to make decisions. However, it does give a sound picture
over several key issues depending upon the nature of the project. In the area of decision-
making in any complex organisation it is impossible to have all the information that
managers would like.
The data can be interpreted in a variety of different ways and there can easily be quite
significant intellectual differences between those who carry out the research, and those
who use the information which arises from it. It is important then for the key findings to be
presented in a succinct and easily readable format, and with a fuller account of the findings
also included in the report. Managers want to be able to absorb the many points from a
research project quickly and easily, and not feel overwhelmed by research technology and
technical jargon unless the project is a technical research project. They want information
which they can use in a practical way.
Other limitations of research occur during the research design and in the implementation of
the design. Sometimes the analysis of the marketing problem may be inadequate which
may lead to the wrong data being collected. Then there are problems in carrying out the
research project such as surveying the wrong target population or too few of the target
population. Similarly, faults in the design of a questionnaire can generate poor quality
data. Also respondents may give answers to impress the interviewer.

Dehradun
Formulating Research Problem
The research problem

If you have a specific idea for the basis of your inquiry, you do not need to go through
this chapter. However, you should make sure that your idea is researchable as not all
problems lend themselves to research methodologies. Broadly speaking, any question that
you want answered and any assumption or assertion that you want to challenge or
investigate can become a research problem or a research topic for your study. However, it
is important to remember that not all questions can be transformed into research problems
and some may prove to be extremely difficult to study. As a newcomer it might seem
easy to formulate a problem but it requires a considerable knowledge of both the subject
area and research methodology. Once you examine a question more closely you will soon
realise the complexity of formulating an idea into a problem which is researchable. 'First
identifying and then specifying a research problem might seem like research tasks that
ought to be easy and quickly accomplished. However, such is often not the case' (Yegidis
& Weinback 1991: 35).
It is essential for the problem you formulate to be able to withstand scrutiny in terms of
the procedures required to be undertaken. Hence you should spend considerable time in
thinking it through.
The importance of formulating a research problem
The formulation of a research problem is the first and most important step of the research
process. It is like the identification of a destination before undertaking a journey; As in
the absence of a destination, it is impossible to identify the shortest-or indeed any-route,
in the absence of a clear research problem, a clear and economical plan is impossible. A
research problem is like the foundation of a building. The type and design of the building
is dependent upon the foundation. If the foundation is well designed and strong you
can expect the building to be also. The research problem serves as the foundation
of a research study: if it is well formulated, you can expect a good study to follow.
According to Kerlinger,
If one wants to solve a 'problem, one must generally know what the problem is·. It can
be said that a large part of the problem lies in knowing what one is trying to do (1986:
17).
You must have a clear idea with regard to what it is that you want to find out
about and not what you think you must find.
A research problem may take a number of forms, from the very simple to the very
complex. The way you formulate a problem determines almost every step that
follows: the type of study design that can be used; the type of sampling strategy
that can be employed; the research instrument that can be used or developed; and
the type of analysis that can be undertaken. The formulation of a problem is like
the 'input' into a study, and the 'output'-the quality of the contents of the research
report and the validity of the associations or causation established-is entirely
dependent upon it. Hence the famous saying about computers-'garbage in, garbage
out'-is equally applicable to a research problem.
In the beginning you may become more confused but this is normal and a sign of
progression. Remember: confusion is often but a first step towards clarity. Take
time over formulating your problem, for the dearer you are about your research

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problem/question, the easier it will be for you later on. Remember, this is the most
crucial step.
Sources of research problems

This section is of particular relevance if you have not yet selected a research topic
and do not know where to start. If you have already selected your topic or question,
go to the next section. Most research in the humanities revolves around four Ps:
•People;
•Problems;
•Programs;
•Phenomena.
The emphasis on a particular 'P' may vary from study to study but generally, in
practice, most research studies are based upon at least a combination-of two Ps.
You may select a group of individuals (a group or a community as such-'people'),
either to examine the existence of certain issues or problems relating to their lives,
to ascertain attitude of a group of people towards an issue ('problem'), to establish
existence of a regularity ('phenomenon') or to evaluate the effectiveness of an
intervention ('program'). Your focus may be the study of an issue, an association or
a phenomenon per se; for example, the relationship between unemployment and
street crime, smoking and cancer or fertility and mortality, which is done on the
basis of information collected from individuals, groups.
Considerations in selecting a research problem

- - -
When selecting a research problem/topic there are a number of considerations to
keep in mind. These help to ensure that your study will be manageable and that
you will remain motivated. These considerations are interest, magnitude,
measurement of concepts, level of expertise, relevance, availability of data and
ethical issues.
•Interest-Interest should be the most important consideration in selecting a
research problem. A research endeavor is usually time consuming, and involves
hard work and possibly unforeseen problems. If you select a topic which does not
greatly interest you, it could become extremely difficult to sustain the required
motivation, and hence its completion as well as the amount of time taken could be
affected.
•Magnitude-you should have sufficient knowledge about the research process to

be able to visualise the work involved in completing the proposed study. Narrow
the topic down to something manageable, specific and clear. It is extremely
important to select a topic that you can manage within the time and resources at
your disposal. Even if you are undertaking a descriptive study, you need to
carefully consider its magnitude.
•Measurement of concepts-if you are using a concept in your study, make sure
you are clear about its indicators and their measurement. For example, if you
plan to measure the effectiveness of a health promotion program, you must be
clear as to what determines effectiveness and how it will be measured. Do not
use concepts in your research problem that you are not sure how to measure. This
does not mean you cannot develop a measurement procedure as the study
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progresses. While most of the developmental work will be done during your
study, it is imperative that you are reasonably clear about the measurement of
these concepts at this stage.
Level of expertise-make sure you have an adequate level of expertise for the task
you are proposing. Allow for the fact that you will learn during the study and may
receive help from your research supervisors and others, but remember you need to
do most of the work yourself
Re1evance- Select a topic that is of relevance to you as a professional. Ensure that your
study adds to the existing body of knowledge, bridges current gaps or is useful in policy
formulation. This will help you to sustain interest in the study.
Availability of data-if your topic entails collection of information from secondary

sources (office records, client records, census or other already-published reports, etc.)
before finalizing your topic, make sure that these data are available and in the format you
want.
Ethical issues -Another important consideration in formulating a research problem is the

ethical issues involved. In the course of conducting a research study, the study population
may be adversely affected by some of the questions (directly or indirectly); deprived of
an intervention; expected to share sensitive and private information; or expected to be
simply experimental 'guinea pigs'. How ethical issues can affect the study population and
how ethical problems can be overcome should be thoroughly examined at the problem-
formulation stage. Steps in the formulation of a research problem
Steps in formulating Research Problem

The formulation of a research problem is the most crucial part of the research journey on
which the quality of the entire project depends.. This task is largely left either to the
teachers of research methodology or to students like you to learn themselves. The process
of formulating a research problem consists of a number of steps. Working through these
steps presupposes a reasonable level of knowledge in the broad subject area within which
the. study is to be undertaken. A brief review of the relevant literature helps enormously
in broadening this knowledge base. Without such knowledge it is difficult to clearly and
adequately 'dissect' a subject area. If you do not know what specific research topic, idea
or issue you want to research (which is not uncommon among students) first go through
the following two steps:
Steps 1 Identify a broad field or subject area of interest to you.

Ask yourself, 'What is it that really interest me as a professional'? It is a good idea to
think about the field in which you would like to work after graduation. This will help you
to find an interesting topic, and one which may be of use to you in the future. As far as
the research journey goes, these are the broad research areas. It is imperative that
you identify one of interest to you before undertaking your research journey.
Steps.2Dissect the broad area into sub areas. At the onset, you will realize that
all the broad areas can be divided into sub areas. Dissect until you are left with
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something that is manageable considering the time available to you, your level of
expertise and other resources needed to undertake the study. Once you are confident that
what you have selected you are passionate about and can manage, you are ready to go to
the next step.
Step3.Raise research questions. At this step you ask yourself, 'What is it that I want to
find out about in this sub area'? Within your chosen sub area, first list whatever questions
you want to find answers to. If you find yourself in a situation where you can think of
many questions, too many to be manageable, again go through a process of elimination,
as you did in Step 3.
Step4.Formulate objectives. Formulate your main objectives and your sub objectives
Your objectives grow out of your research questions. The main difference between
objectives and research questions is the way in which they are written. Research
questions are obviously that questions. Objectives transform these questions into
behavioral aims by using action-oriented words such as 'to find out', 'to determine', 'to
ascertain' and 'to examine'. Some researchers prefer to reverse the process; that is, they
start from objective~ and formulate research questions from them. Some researchers are
satisfied only with research questions, and do not formulate objectives at all. If you prefer
to have only research questions or only objectives, this is fine but keep in mind the
requirements of your institution for research proposals.
Step5.Assess your objectives. Now examine your objectives to ascertain the feasibility
of achieving them through your research endeavor. Consider them in the light of the time,
resources (financial and human) and technical expertise at your disposal.
Step6.Double-check. Go back and give final consideration to whether or not you are
sufficiently interested in the study, and have adequate resources to undertake it. Ask
yourself, 'Am I really enthusiastic about this study', and 'Do I really have enough
resources to undertake it'? Answer these questions thoughtfully and realistically. If your
answer to one of them is 'no', re-assess your objectives.

Graphic Era University, Dehradun
Prepared By: Sanjeev Kumar(Asstt.Professor)

Types of Research
Research can be classified on three perspectives
1.Application of the research study
2.Objectives in undertaking the research
3.Inquiry mode employed
These three classifications are not mutually exhaustive-that is a, research study classified
from the point view of ‘application’ can also be classified from the perspectives of
‘objectives’ and ‘mode of inquiry employed’. For example a research project may be
classified as pure or applied research (from the perspectives of application )a descriptive
,correlational or exploratory(from the perspective of objective)and as qualitative or
quantitative (from the perspective of the inquiry mode)
Types of Research
Application Objectives Mode of Inquiry
Pure Research Descriptive Qualitative Research

Research
Applied Research Quantitative
Exploratory Research
Research
Causal Research
Application
If you examine a research endeavor from the perspective of its application, there are two
broad categories:pure research and applied research.
Pure research
Pure research is concerned with the development, examination, verification and
refinement of research methods,procedures,techniques and tools that form the body of
research methodology. Examples of pure research includes developing a sampling
technique that can be applied to a particular situation: developing a methodology to
assess the validity of a procedure; developing an instrument .The knowledge produced
through pure research is sought in order to add to the existing body of knowledge of
research methods.
Applied Research
Most of the research in the field of social science is applied. In other words the research
techniques ,procedures and methods that form the body of research methodology are
applied to the collection of information about various aspects of a situation ,issue
,problem or phenomenon so that information gathered can be used in others way-such as
for policy formulation, administration and the enhancement of understanding of a
phenomenon.

Objectives
If you examine a research endeavor from the perspective of its objectives, there are
three broad categories: exploratory research, descriptive research and causal research.
Exploratory Research is to explore or research through a problem or situation to
provide insights and understanding. It could be used for any of the following purposes:
• Formulate a problem or define a problem more precisely.
• Identify alternative courses of action.
• Develop Hypotheses.
• Gain insights for developing an approach to the problem.
• Establish priorities for further research.
“Descriptive Research” is to describe something- usually market characteristics or
functions. Descriptive research is probably the best used and covers issues such as
customer profiles, or consumer perceptions of the product/organisation amongst other
things. As exploratory research finds "something of interest and points the camera,
descriptive research takes the photograph An interesting introduction to this topic is
noting that the six W’s are used by journalists when trying to gather facts for a story. In
like manner, because descriptive research is marked by the prior formulation of specific
hypotheses, the design requires a clear specification of the six W’s of the research:
1.Who: who should be considered?
2.Where:where should the respondents be contacted to obtain the required information?
3.When: when should the information be obtained from the respondents?
4.What: what information should be obtained from the respondents?
5.Why: why are we obtaining information from the respondents?
6.Way: the way in which we are going to obtain information from the respondents
Causal Research:
Causal designs seek to discover the relationship between the cause and the effect in
relation to events in the market place. For example, has a massive increase in the sales
of high quality branded product been caused by increasing the promotion budget and
having an extensive advertising campaign? Or is there another variable within the
marketing mix which may have influenced consumers to behave differently? Will there
be a mass swing to the use of the Channel Tunnel by domestic consumers because of
price, speed and availability, or because of recent disasters with Roll On-Roll Off
ferries making consumers fearful of traveling by sea? It is easy to "guess" the cause-
and-effect, outcome but it is unreliable to do this for specific market situations, nor to
use this to predict future patterns of purchase behavior This type of conclusive research
where the major objective is to obtain evidence regarding cause-and-effect
relationships.
Causal Research is appropriate for the following purposes:
• To understand which variables are the cause (independent variables) and which
variables are the effect (dependent variables) of a phenomenon.
• To determine the nature of the relationship between the causal variables and the
effect to be predicted..

Inquiry Mode
The third perspective concerns the process you adopt to find the answers to your research
questions .There are two approaches to inquiry:
1. The structured Approach (Quantitative Research)
2. The unstructured Approach (Qualitative Research)
In the structured approach everything that forms the research process –objectives, design,
sample and the questions that you plan to ask from the respondent is predetermined .The
unstructured approach , by contrast allows flexibility in all these aspects of the process.
The structured approached is more appropriate to determine the extent of the problem,
issue or phenomenon; the unstructured; to explore its nature .Both approaches have there
place in research .Both have their strengths and weakness.
The study is classified as qualitative if the purpose of research is primarily to describe a
situation, phenomenon, problem, or event the information is gathered through the use of
variables measured on nominal or ordinal scales, and if analysis is done to establish the
variation in the situation, phenomenon, or problem without quantifying it.
ON the other hand, the study is classified as quantitative study if you want to quantify the
variation situation, phenomenon, problem, or issue; if the analysis is geared to ascertain
the magnitude of the variation. Examples of quantitative study are: How many people
have particular problem? How many people hold a particular attitude?

Dehradun
Review of Literature
One of the essential preliminary tasks when you undertake a research study is to go
through the existing literature in order to acquaint yourself with the available body of
knowledge in your area of interest. The literature review is an integral part of the entire
research process and makes a valuable contribution to almost every operational step. It
has value even before the first step; that is, when you are merely thinking about a
research question that you may want to find answers to through your research journey. In
the initial stages of research it helps you to establish the theoretical roots of your study,
clarify your ideas and develop your methodology, but later on the literature review serves
to enhance and consolidate your knowledge base and helps you to integrate your findings
with the existing body of knowledge. Since an important responsibility in research is to
compare your findings with those of others, it is here that the literature review plays an
extremely important role. During the write-up of your report it helps you to integrate your
findings with existing knowledge-that is, to either support or contradict earlier research.
The higher the academic level of your research, the more important a thorough
integration of your findings with exiting literature becomes. Reviewing literature can be
time-consuming, daunting and frustrating, but it is also rewarding. A literature review has
a number of functions:
• It provides a theoretical background to your study.
• It reviews the means by which you establish the links between what you are proposing
to examine and what has already been studied. In other words, it helps you to refine
your research methodology.
• Through the literature review you are able to show how your findings have contributed
to the existing body of knowledge in your profession. It enables you to contextualize
your findings.
It also helps you to:
• brings clarity and focus to your research problem;
• improve your methodology;
• broaden your knowledge base in your research area.
• contextualize your findings
Brings clarity and focus to your research problem

The literature review involves a paradox. On the one hand, you cannot effectively
undertake a literature search without some idea of the problem you wish to investigate.
On the other hand, the literature review can play an extremely important role in shaping
your research problem because the process of reviewing the literature helps you to
understand the subject area better and thus helps you to conceptualise your research
problem clearly and precisely. It also helps you to understand the relationship between
your research problem and the body of knowledge in the area
Improve your methodology

Going through the literature acquaints you with the methodologies that have been used by
others to find answers to research questions similar to the one you are investigating. A
literature review tells you if others have used procedures and methods similar to the ones
that you are proposing, which procedures and methods have worked well for them, and
Prepared By:-Sanjeev Kumar (Faculty Management)

Dehradun
what problems they have faced with them. By becoming aware of any problems and
pitfalls, you will be better positioned to select a methodology that is capable of providing
valid answers to your research questions. This will increase your confidence in the
methodology you plan to use and will equip you to defend its use.
Broaden your knowledge base in your research area

The most important function of the literature review is to ensure you read widely around
the subject area in which you intend to conduct your research study. It is important that
you know what other researchers have found in regard to the same or similar questions,
what theories have been put forward and what gaps exist in the relevant body of
knowledge. When you undertake a research project for a higher degree (that is, an MA or
a PhD) you are expected to be an expert in your area of study. A thorough literature
review helps to ensure that you fulfil this expectation. Another important reason for doing
a literature review is that it helps you to understand how the findings of your study fit
into the existing body of knowledge (Martin 1985: 30).
Contextualise your findings

Obtaining answers to your research questions is comparatively easy: the difficult part is
examining how your findings fit into the existing body of knowledge. How do answers to
your research questions compare with what others have found? What contribution have
you been able to make to the existing body of knowledge? How are your findings
different from those of others? For you to be able to answer these questions you need to
go back to your literature review. It is important to place your findings in the context Of
what is already known in your field of inquiry.
Procedure for reviewing the literature

If you do not have a specific research problem, you should review the literature in your
broad area of interest with the aim of gradually narrowing down to what you want to find
out about. After that the literature review should be focused around your research
problem. Then is a danger in reviewing the literature without having a reasonably specific
idea of what you want to study. It can condition your thinking about your study and the
methodology you might use, resulting in a less innovative choice of research
problem and methodology than otherwise would have been the case. Hence, you should
try to conceptualise your research problem before undertaking your major literature
review.
There are four steps involved in conducting a literature review:
1 search for existing literature in your area of study;
2 review the literature selected;
3 develop a theoretical framework;
4 develop a conceptual framework.
The skills required for these tasks are different. Developing theoretical and conceptual
frameworks are more difficult than the other tasks

Dehradun
1.Search for existing literature

To effectively search for literature in your field of inquiry, it is imperative that you have
in mind at least some idea of the broad subject area and of the problem you wish to
investigate, in order to set parameters for your search. Next compile a bibliography for
this broad area. There are two sources that you can use to prepare a bibliography:
1 books;
2 journals.
The best way to search for a book is to look at your library catalogues.
When librarians catalogue a book they also assign to it subject headings that usually are
based on Library of Congress Subject Headings. If you are not sure, ask your librarian to
help you to find the best subject heading for your area. This can save you a lot of time.
Publications such as Book Review Index can help you to locate books of interest.
All the above indexing, abstracting and citation services are available in print or on CD-
ROM, or are stored on a mainframe computer accessible through the Internet, a world-
wide electronic communication system.
In most libraries, information on books, journals, abstracts and so on is stored on

computers and CD-ROMs. In each case the information is classified by subject, author
and title. You may also have the keywords option (author/keyword; title/keyword;
subject/keyword; expert/keyword; or just keywords). What system you use depends upon
what is available in your library and what you are familiar with.
There are specially prepared electronic databases in a number of disciplines. These can
also be helpful in preparing a bibliography.
2.Review the literature selected

Now that you have identified several books and articles as useful, the next step is to start
reading them critically to pull together themes and issues that are associated. If you do
not have a theoretical framework of themes in mind to start with, use separate sheets of
paper for each article or book. Once you develop a rough framework, slot the findings
from the material so far reviewed into that framework, using a separate sheet of paper for
each theme of that framework. As you read further, go on slotting the information where
it logically belongs under the themes so far developed. You may need to add more
themes as you go. In doing so, read critically with particular reference to the following
aspects:
•Note whether the knowledge relevant to your theoretical framework has been confirmed
beyond doubt.
•Note the theories put forward, the criticisms of these and their basis, the methodologies
adopted (study design, sample size and its characteristics, measurement procedures, etc.)
and the criticisms of them.
•Examine to what extent the findings can be generalised to other situations.

Dehradun
•Notice where there are significant differences of opinion among researchers ar.d give
your opinion about the validity of these differences.
•Ascertain the areas in which little or nothing is known-the gaps that exist in the body of
knowledge.
3.Develop a theoretical framework

Examining the literature can be a never-ending task, but as you have limited time it is
important to set parameters by reviewing the literature in relation to some main themes
pertinent to your research topic. As you start reading the literature, you will soon discover
that the problem you wish to investigate has its roots in a number of theories that have
been developed from different perspectives. The information obtained from different
books and journals now needs to be sorted under the main themes and theories,
highlighting agreements and disagreements among the authors and identifying the
unanswered questions or gaps. You will also realise that the literature deals with a
number of aspects that have a direct or indirect bearing on your research topic. Use these
aspects as a basis for developing your theoretical framework. Your review of the
literature should sort out the information, as mentioned earlier, within this framework.
Unless you review the literature in relation to this framework, you will not be able to
develop a focus in your literature search: that is, your theoretical framework provides you
with a guide as you read. This brings us to the paradox mentioned previously: until you
go through the literature you cannot develop a theoretical framework and until you have
developed a theoretical framework, you cannot effectively review the literature. The
solution is to read some of the literature then attempt to develop a framework, even a
loose one, within which you can organise the rest of the literature you read.
4.Develop a conceptual framework

The conceptual framework stems from the theoretical framework and concentrates,
usually, on one section of that theoretical framework which becomes the basis of your
study. The latter consists of the theories or issues in which your study is embedded,
whereas the former describes the aspects you selected from the theoretical framework to
become the basis of your inquiry. The conceptual framework is the basis of your research
problem. Hence the conceptual framework grows out of the theoretical framework and
relates to the specific research problem concerning the fear of non-survival theory.
5.Writing up the literature reviewed

Now, all that remains to be done is to write about the literature you have reviewed. As
mentioned in the beginning of this chapter, the broad two functions of a literature review
are (1) to provide a theoretical background to your study and (2) to enable you to
contextualise your findings in relation to the existing body of knowledge in addition to
refining your methodology. The content of your literature review reflects these two
purposes. In order to fulfil the first purpose, you identify and describe various theories
relevant to your field; and specify gaps in existing knowledge in the area, recent advances
in the area of study, current trends and so on. In order to comply with the second function
you integrate your results with specific and relevant findings from the existing literature
by comparing the two for confirmation or contradiction.

Dehradun
While reading the literature for theoretical background of your study, you will realise that
certain themes have emerged. List the main ones, converting them into subheadings.
These subheadings should be precise, descriptive of the theme in question, and follow a
logical progression. Now, under each subheading, record the main findings with respect
to the theme in question, highlighting the reasons for and against an argument if they
exist, and identifying gaps and issues. Some people write up the entire literature review
in' one section, entitled 'Review of the literature' or 'The literature review', without
subheadings. The author strongly suggests that you write your literature review under
subheadings. The second broad function of the literature review-contextualizing the
findings of your study-requires you to very systematically compare your findings with
those made by others. Quote from these studies to show how your findings contradict,
confirm or add to them. It places your findings in the context of what others have found
out. This function is undertaken when writing about your findings , that is after analysis
of your data.

Dehradun
SCIENTIFIC METHOD
The scientific method is a systematic step by step procedure following the logical process
of reasoning. 'Scientific method is a means for gaining knowledge of the universe. It does
not belong to any particular body of language, it is universal.'
Basis of Scientific Method
The scientific method is based on certain 'Articles of Faith'. These are:
1.Relies on empirical evidence.
2.Use of relevant concepts.
3.Commitment to objectivity.
4.Ethical neutrality.
5.Generalization
6.Verifiability
7.Logical reasoning process
1.Relies on empirical evidence: Truth is established on the basis of evidence.

Conclusion is admitted, only when it is based on evidence & reached on the basis of the
result of analysis.
2. Use of relevant concepts : Concepts are logical constraints or abstractions created

from sense impressions, percepts & experiences. They are symbols representing the
meaning that we hold: We use them in our thinking & communication. Otherwise clarity
& correct understanding can't be achieved.
3. Commitment to objectivity :' Objectivity is the hall mark of the scientific method. It
means forming a judgement upon facts unbiased by personal impressions. 4. Ethical
Neutrality: Science does not pass normal judgement on facts. It does not say that they are
good or bad. Science aims at nothing but making true & adequate statements about its
objects.
5. Generalisation : Scientists are not concerned with isolated events, but with the
commonality of a series of events they aim at discovering. 'Under the surface layer of
diversity, the threat of uniformity, around a discovered uniformity, a logical class & its
observed pattern, a descriptive generalization is formulated. In formulating a
generalization, we should avoid the danger of committing the particularistic fallacy,
which arise through and inclination and unrelated data. This can be avoided by the
accumulation of a large body of data & by the employment of comparisons & control
groups. .
6. Verifiability: The conclusions arrived at by a scientist should be verifiable. He must

make known to others how he arrived at his conclusions. He should thus expose his own
methods & conclusions to critical scrutiny. When his conclusions is tested by others
under the same conditions, then it is accepted as correct. Such verification through
replication may either confirm· established conclusions or modify them or even
invaridate them.

Dehradun
•Notice where there are significant differences of opinion among researchers ar.d give
your opinion about the validity of these differences.
•Ascertain the areas in which little or nothing is known-the gaps that exist in the body of
knowledge.
3.Develop a theoretical framework

Examining the literature can be a never-ending task, but as you have limited time it is
important to set parameters by reviewing the literature in relation to some main themes
pertinent to your research topic. As you start reading the literature, you will soon discover
that the problem you wish to investigate has its roots in a number of theories that have
been developed from different perspectives. The information obtained from different
books and journals now needs to be sorted under the main themes and theories,
highlighting agreements and disagreements among the authors and identifying the
unanswered questions or gaps. You will also realise that the literature deals with a
number of aspects that have a direct or indirect bearing on your research topic. Use these
aspects as a basis for developing your theoretical framework. Your review of the
literature should sort out the information, as mentioned earlier, within this framework.
Unless you review the literature in relation to this framework, you will not be able to
develop a focus in your literature search: that is, your theoretical framework provides you
with a guide as you read. This brings us to the paradox mentioned previously: until you
go through the literature you cannot develop a theoretical framework and until you have
developed a theoretical framework, you cannot effectively review the literature. The
solution is to read some of the literature then attempt to develop a framework, even a
loose one, within which you can organise the rest of the literature you read.
4.Develop a conceptual framework

The conceptual framework stems from the theoretical framework and concentrates,
usually, on one section of that theoretical framework which becomes the basis of your
study. The latter consists of the theories or issues in which your study is embedded,
whereas the former describes the aspects you selected from the theoretical framework to
become the basis of your inquiry. The conceptual framework is the basis of your research
problem. Hence the conceptual framework grows out of the theoretical framework and
relates to the specific research problem concerning the fear of non-survival theory.
Writing up the literature reviewed

Now, all that remains to be done is to write about the literature you have reviewed. As
mentioned in the beginning of this chapter, the broad two functions of a literature review
are (1) to provide a theoretical background to your study and (2) to enable you to
contextualise your findings in relation to the existing body of knowledge in addition to
refining your methodology. The content of your literature review reflects these two
purposes. In order to fulfil the first purpose, you identify and describe various theories
relevant to your field; and specify gaps in existing knowledge in the area, recent advances
in the area of study, current trends and so on. In order to comply with the second function
you integrate your results with specific and relevant findings from the existing literature
by comparing the two for confirmation or contradiction.

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Prepared By-Sanjeev Kumar (Faculty Management)

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2 Research Process
In order to make a choice on a given course of action and choose between various
alternatives, the decision-maker has to clearly understand the problem to be solved. He
will determine the information that is available to him and what further information is
required and the best possible way to obtain it. Finally, the information obtained is
assessed. This systematic approach to decision-making is referred to as the research
process. The research process is a step-by-step process of finding answers to problem
under study.
The research process involves different phases; since research is recursive (earlier phases
influence later ones, while later ones can influence the early phases). As you advance
from one step to the next, it is commonly necessary to backup, revise, add additional
material or even change your topic completely. This will depend on what you find out
during your research. There are many reasons for adjusting your plan. For example, you
may find that your topic is too broad and needs to be narrowed, sufficient information
resources may not be available, what you learn may not support your thesis, or the size of
the project does not fit the requirements .
RESEARCHPROCESS
Step1. Formulating the Research problem
Step2. Research Design Formulation
Step3. Construction of data Collection instrument
Step 4: Selecting a sample
Step 5: Writing a research proposal
Step-6: Data collection or Field Work
Step-7: Data Processing and Analysis
Step-8:Report Presentation and Preparation
1.. Formulating the Research problem –The first step in any research is to formulates
and define the problem. It is important because poorly defined problem will not yield
useful results. When the problem is carefully and precisely defined then only research
can provide relevant information. It is more often difficult to find and frame the
problem then to solve it .For formulating the problem, the researcher should take into
account the objectives of the study, the relevant information needed how it will helpful
in decision making. Problem formulating involves studying literature, studies already in
that area, and interviews with industry and decision makers, analysis of secondary data.
Once the problem has been stated, the research can be designed and carried out.Once
the problem is formulated the next step is to study the literature related to selected
problem to better understand the problem under study.For this purpose the abstracting
of journals,conference proceedings ,govt. reports must be looked in depending on the
nature of the problem. Earlier study made in the same area which are similar to study
in hand can be of immense help and therefore should be carefully studied.

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2. Research Design Formulation–Research design is preparing the blue print for
action i.e. how the research will be conducted or to state the conceptual structure within
which the research has to be carried out. Research design provides the glue that holds
the research project together. 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. The preparations of such research design
facilitate research to be conducted efficiently and effectively and thus yielding
maximum information. In other words, the function of research design is to provide for
the collection of relevant evidence with minimum spending of effort, time and money.
design. But how all these can be achieved depend on research purposes. Broadly
speaking, we can classify research design into following three kinds:
1. Exploratory Research
2. Descriptive Research
3. Causal Research
Research problem under study should match the appropriate research design.
Step-3:Construction of Data Collection Instrument: Anything that becomes a means

Of collecting information for your study is research tool or a research instrument .e.g.
observation forms, interview schedules, questionnaire and interview guides for all
classified as research tool. The construction of the research tool is the first step in
carrying out the research .You will need to decide how you are going to collect data for
the proposed study and then construct a research instrument for data collection.
Step-4: Selecting a Sample: The accuracy of your findings largely depends upon the
way you select your sample. The basic objective of any sampling design is to minimize
within the limitation of the cost ,the gap between the values obtained from your sample
and those prevalent in the population.
Sampling theory is guided by two principles :
1.the avoidance of bias in the selection of a sample; and
2.the attainment of maximum precision for a given outlay of resources.
There are three categories of sampling design
1.random/probability sampling designs;
2.non-random/non probability sampling designs
3.Mixed sampling design
Step5:Writing a research proposal: A proposal is an offer to produce or render a

service to the potential buyer or sponsor. The research proposal presents a problem,
discusses related research efforts, outlines the data needed and shows the research design.
Usefulness sponsor uses proposal to evaluate research idea
Ensures the sponsor and investigator agree to research question
For newcomer, research proposal helps learning from others
Completed proposal provides a logical guidance,
Depending on the type of project, the sponsoring individual or institution, and the cost of
the project, different levels of complexity are required for a proposal to be judged
complete. For example the government agencies demand the most complex proposals for
their funding analyses. On the other extreme, an exploratory study done within a
manager’s department may need merely a one- to three-page memo outlining the
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objectives, approach, and time allotted to the project. In general, business proposals can
be divided between those generated internally and externally. An internal proposal is
done for the corporation by staff specialists or by the research department of the firm.
External proposals are either solicited or unsolicited. Sponsors can be university grant
committees, government agencies, government contractors, corporations, and so forth.
With few exceptions, the larger the project, the more complex is the proposal. In public
sector work, the complexity is generally greater than in a
Step 6: 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 computerides for -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).Data can be collected through different ways but most widely used
instrument is questionnaire which is prepared thoroughly keeping in mind the purpose
and objective of study. Before field force leaps in to field they are given proper
instructions regarding how to collect the data and individuals that are to studied for the
purpose of study.
Step 7: Data Preparation and Analysis –Data preparation includes the editing, coding,
recording 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. Analysis includes giving proper statistical
treatment to data.The usual analysis approach is to begin with descriptive analyses, to
explore and gain a “feel” for the data. The analyst then turns to address specific questions
from the study aims or hypotheses, from findings and questions from studies reported in
the literature, and from patterns suggested by the descriptive analyses. The main
objectives of data analysis are
1. Evaluate and enhance data quality
2. Describe the study population and its relationship to some presumed source (accounts
for all in-scope potential subjects; compare the available study population with the target
population)
3. Assess potential for bias (e.g., nonresponse, refusal, and attrition, comparison groups)
4. Estimate measures of frequency and extent (prevalence, incidence, means, medians)
5. Estimate measures of strength of association or effect
6. Assess the degree of uncertainty from random noise (“chance”)
7. Control and examine effects of other relevant factors
8. Evaluate impact or importance
Step-8: Preparation and presentation of Report: - Reporting research is an integral

part of the research process. The results of research must be successfully communicated
to management. Presenting the results of a research study to management generally
involves a formal written report as well as an oral presentation. The report and
presentation are extremely important. First, because the results of research are often
subtle (after the study has been completed and a decision is made there is very little
physical evidence of the resources, such as time and effort, that went into the project), the
written report is usually the only documentation of the project. Second, the written report
and the oral presentation are typically the only aspect of the study that marketing
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executives are exposed to, and so the overall evaluation of the research project rests on
how well this information is communicated. Every person has a different style of writing.
There is not really one right style for a report, but there are some basic principles for
writing a research report clearly. Preparing a research report involves other activities
besides writing; in fact, writing is actually the last step in the preparation process. Before
writing can take place, the results of the research project must be fully understood and
thought must be given to what the report will say. A formal report normally contains the
following:
1. Executive Summary
2. Table of contents
3. Introduction
4. Research Objectives
5. Research Methodology
6. Analysis
7. Findings
8. Limitations
9. Recommendations
10. Bibliography
Based on report the decision maker will take some actions.
Conclusion:The eight step cover the total spectrum of a research endeavour, starting
from problem formulation through to writing a research project. The steps are operational
in nature, following a logical sequence, and detailing the various methods and procedures
in a simple step by step manner.

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Research Design
The task of defining the research problem is the preparation of the design of the research
project, popularly known as the “research Design” Decision regarding Who, What, Where,
When, How, by what means concerning an inquiry or a research study constitutes a research
design. A research design is a framework or blueprint for conducting the research project. It
details the procedures necessary for obtaining the information needed to structure or solve
marketing research problems.
“A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedures.”
Features of Research Design:

It is a plan that specifies the sources and types of information relevant to the research
problem.
It is a strategy specifying which approach will be used for gathering and analysing the data.
It includes the time and cost budgets since most studies are done under these two constraints
Components of a Research Design

• Define the information needed
• Design the exploratory, descriptive, and/or causal phases of the research
• Specify the measurement and scaling procedures
• Construct and pretest a questionnaire (interviewing form) or an appropriate form for data
collection
• Specify the sampling process and sample size
• Develop a plan of data analysis
The overall research design may be splitted into following parts:
(a) the sampling design which deals with the method of selecting items to be observed for the
given study; "
(b) the observational design which relates to the conditions under which the observations are to
be made;
(c) the statistical design which concerns with the question of how many items are to be
observed and how the information and data gathered are to be analyzed; and
(d) the operational design which deals with the techniques by which the procedures specified
in the sampling, statistical and observational designs can be carried out.
So, the important features of a research design is as under:
(i) It is a plan that specifies the sources and types of information relevant to the research
problem.
(ii) It is a strategy which approach will be used for data gathering and analyzing.
(iii)It also includes the time and cost budgets since most studies are done under these two
constraints.
Need for Research Design:

Research design is needed because it facilitates the smooth sailing of the various operations,
thereby making research as efficient as possible yielding maximal information with minimal
expenditure of effort, time and money. Research design stands for advance planning of the
methods to be adopted for collecting the relevant data and the techniques to be used in their
Prepared By :- Sanjeev Kumar(Faculty MBA)

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analysis, keeping in view the objective of the research and the availability of staff, time and
money. Preparation of the research design should be done with great care as any error in it
may upset the entire project. Research design, in fact, has a great bearing on the reliability of
the results arrived at and as such constitutes the firm foundation of the entire frame of the
research work.
Features of a Good Design:

The design, which minimizes bias and maximizes the reliability of the data collected and
analyzed is considered a good design.
The design, which gives the smallest experimental error, is supposed to be best design.
A design, which yields maximal information and provides an opportunity for considering
many different aspects of a problem, is considered most appropriate and efficient design.
A good research design considers following factors:
(i) The means of obtaining information.
(ii) The availability and skills of the researcher and his staff.
(iii) The objective of the problem to be studied.
(iv) The nature of the problem to be studied.
(v) The availability of time and money for the research work.
Some concepts of research design:
1. Dependent and Independent variables: A concept, which can take different

quantitative values, is called a variable. e.g. Income, height, weight, etc. Qualitative
phenomena or the attributes are also quantified on the basis of the presence or absence of the
concerning attribute(s). Phenomena, which can take on quantitatively different values even in
decimal points, are called 'continuous variables'. But all variables are not continuous. If they
can only be expressed in integer values, they are non-continuous variables or in statistical
language 'discrete variables'. Age is an example of continuous variable, but the number of
children is an example of non-continuous variable. If one variable depends upon or is a
consequence of the other variable, it is termed as a dependent variable, and the variable that is
antecedent to the dependent variable is termed as an independent variable. For instance, if we
say that height depends upon age, then height is a dependent variable and age is an
independent variable.
2. Extraneous variable: Independent variables that are not related to the purpose of the study,
but may affect the dependent variable are termed as extraneous variables. Suppose the
researcher wants to test the hypothesis that there is a relationship between children's gains in
social studies achievement and their self-concepts. In this case self -concept is an independent
variable and social: studies achievement is a dependent variable. Intelligence may as well
affect the social studies achievement, but since it is not related to the purpose of the study
undertaken by the researcher, it will be termed as an extraneous variable. Whatever effect is
noticed on dependent variable as a result of extraneous variable(s), is technically described as
an 'experimental error'. A study must always be so designed that the effect upon the dependent
variable is attributed entirely to the independent variable(s), and not to some extraneous
variable or variables.
3. Control: We should minimize the effect of extraneous variable(s). The technical term
'control' is used when we design the study minimizing the effects of extraneous independent

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variables. In experimental researches, the term 'control' is used to refer to restrain
experimental conditions.
4. Confounded Relationship: When the dependent variable is not free from the influence of
extraneous variable(s), the relationship between the dependent and independent variables is
said to be confounded by an extraneous variable(s).
5. Research Hypotheses: When a prediction or a hypothesized relationship is to be tested by
scientific methods, it is termed as research hypothesis. The research hypothesis is a predictive
statement that relates an independent variable to a dependent variable at least.
6. Experimental and non-experimental hypothesis-testing research: When the purpose of
research is to test a research hypothesis, it is termed as hypothesis-testing research. It can be
experimental design or of the non-experimental design. Research in which the independent
variable is manipulated is termed ‘experimental hypothesis–testing research’ and a research in
which an independent variable is not manipulated is called non-experimental hypothesis–
testing research. Suppose a researcher wants to study whether intelligence affects reading
ability for a group of students and for this purpose he randomly selects 50 students and tests
their intelligence and reading ability by calculating the coefficient of correlation between the
two sets of scores. This is an example of non-experimental hypothesis-testing research
because herein the independent variable, intelligence, is not manipulated. But now suppose
that our researcher randomly selects 50 students from a group of students who are to take a
course in statistics and then divides them into two groups by randomly assigning 25 to Group
A, the usual studies programme, and 25 to Group B, the special studies programme. At the end
of the course, he administers a test to each group in order to judge the effectiveness of the
training programme on the student's performance-level. This is an example of experimental
hypothesis-testing research because in this case the independent variable, viz., the type of
training programme, is manipulated.
7. Experimental and control groups: In an experimental hypothesis-testing research when a
group is exposed to usual conditions, it is termed a 'control group', but when the group is
exposed to some novel or special condition, it is termed an 'experimental group' .In the above
illustration, the Group A can be called a control group and the Group B an experimental
group. If both groups A and B are exposed to special studies programmes, then both groups
would be termed 'experimental groups.'
8. Treatments: The different conditions under which experimental and control groups are put
are called as 'treatments'. Suppose if we want to determine through an experiment, the
comparative impact of three varieties of fertilizers on the yield of wheat, we call it three
treatments.
9. Experiment: The process of examining the truth of a statistical hypothesis, relating to some
research problem, is known as an experiment. Suppose, we want to conduct an experiment to
examine the usefulness of a certain newly developed drug.
10. Experimental Units: The pre-determined plots or blocks, where different treatments are
used, are known as experimental units.

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DIFFERENT RESEARCH DESIGNS:
We can categorize different research design as under:
1. Research Design in case of exploratory research studies.
2. Research Design in case of descriptive and diagnostic research studies.
3. Research Design in case of hypothesis testing research studies.
A Classification of Research Designs

The research design contains the various design studies these are categories as
follows
Research Design
Exploratory Research Conclusive Research

Design Design
Descriptive Research Causal Research

Design Design
Cross-Sectional Design
Longitudinal Design
Single Cross-Sectional Multiple Cross-Sectional

Design Design
Exploratory Research:
Exploratory Research is to explore or research through a problem or
situation to provide insights and understanding. It could be used for any of the following
purposes:
• Formulate a problem or define a problem more precisely.
• Identify alternative courses of action.
• Develop Hypotheses.
• Gain insights for developing an approach to the problem.
• Establish priorities for further research.
Exploratory research is investigatory and the researcher explores to help determine the true
nature of a problem. "Its main purpose is to uncover the salient variables that are at play in
the situation of interest". It seeks to find "something of interest and points the camera". In
fact, it is a preliminary to all research and helps to shape and direct the real research design.
Exploratory research is particularly valuable when the problem is unfamiliar to the research
team and the organisation. For example, if an organisation is interested in expanding into new
and unknown markets, exploratory research would be used. The research approach is fairly
informal and creative and the direction may change according to the discoveries that are made,
it is used because not enough information is known to create a specific research plan. The
issues which need to be probed further, will be highlighted, until the direction of the research
and what the research can expect to achieve becomes clearer. Intuition, hunches, "educated
guesses", and judgment all play a part in exploratory research. All the normal data collection
methods are used in its approach until it becomes clear how to proceed, or even if this
exploratory phase has produced enough information for decision-making.

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Descriptive Research:
A type of conclusive research that has its major objective of “Descriptive Research” is to
describe something- usually market characteristics or functions. Descriptive research is
probably the most well used and covers issues such as customer profiles, or consumer
perceptions of the product/organisation amongst other things. As exploratory research finds
"something of interest and points the camera, descriptive research takes the photograph An
interesting introduction to this topic is noting that the six W’s are used by journalists when
trying to gather facts for a story. In like manner, because descriptive research is marked by the
prior formulation of specific hypotheses, the design requires a clear specification of the six W’s
of the research:
1.Who: who should be considered?
2.Where: where should the respondents be contacted to obtain the required information?
3.When: when should the information be obtained from the respondents?
4.What: what information should be obtained from the respondents?
5.Why: why are we obtaining information from the respondents?
6.Way: the way in which we are going to obtain information from the respondents
Examples of descriptive studies are:
1. Market studies that describe the size of the market, buying power of the consumers,
availability of distributors, and consumer profiles.
2. Market share studies that determine the proportion of total sales received by a company
and its competitors.
3. Sales analysis studies that describe sales by geographic region, product line, type, and
size of the account.
4. Image studies that determine consumer perceptions of the firm and its products.
5. Product usage studies that describe consumption patterns.
6. Distribution studies that determine traffic flow patterns, and the number and location of
distributors.
7. Pricing studies that describe the range and frequency of price changes and probable
consumer response to proposed price changes.
8. Advertising studies that describe media consumption habits and audience profiles for
specific television programs and magazines To describe the characteristics of the relevant
group, such as consumers, salespeople, organization or market areas.
Descriptive research can be further classified as follows

1)Cross-sectional
2)Longitudinal Designs
Cross-Sectional Design:
This study is the most frequently used descriptive design in
marketing research. “Cross-Sectional Design involving the collection of information from any
given sample of population element only once.”

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Single Cross-Sectional Design:
In this design only one sample of respondents is drawn from the
target population and information is obtained from this sample only once .these designs are
also called sample survey research designs.
Multiple Cross-Sectional Design:

In this design, there are two or more samples of respondents and information from each
sample is obtained only once. Often, information from different samples is obtained at different
times over long intervals. This design allows comparisons at the aggregate level but not at the
individual respondent level.
Longitudinal Design:
A type of research design involving a fixed sample of population elements
that is measured repeatedly. The sample remains the same overtime, thus providing a series of
pictures that give an in-depth view of the situation and the changes that take place overtime.
Sometimes, the term panel is used interchangeable with the term
longitudinal design. A panal consists of a sample of respondents who have agreed to provide
information at specified intervals over an extended period.
Causal Research:
Causal designs seek to discover the relationship between the cause and the
effect in relation to events in the market place. For example, has a massive increase in the
sales of high quality branded product been caused by increasing the promotion budget and
having an extensive advertising campaign? Or is there another variable within the marketing
mix which may have influenced consumers to behave differently? Will there be a mass swing
to the use of the Channel Tunnel by domestic consumers because of price, speed and
availability, or because of recent disasters with Roll On-Roll Off ferries making consumers
fearful of travelling by sea? It is easy to "guess" the cause-and-effect, outcome but it is
unreliable to do this for specific market situations, nor to use this to predict future patterns of
purchase behaviour This type of conclusive research where the major objective is to obtain
evidence regarding cause-and-effect relationships.
Causal Research is appropriate for the following purposes:
• To understand which variables are the cause (independent variables) and which variables
are the effect (dependent variables) of a phenomenon.
• To determine the nature of the relationship between the causal variables and the effect to
be predicted..

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A COMPARISON OF BASIC RESEARCH DESIGNS

Exploratory Descriptive Causal
Objective: Discovery of Describe market Determine

Ideas and characteristics cause and effect
insights. or functions. relationships.
Character-
istics: Flexible. Marked by the Manipulation of
Versatile. prior formula- one or more
Often the tion of specific independent
front end hypotheses. variables.
of total research Preplanned and Control of other
design structured Mediating variable
.
Methods: Expert surveys. Survey and observations Experiments.
Pilot surveys. .
Secondary data surveys.

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Prepared By: Sanjeev Kumar (Faculty R.M)

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COLLECTION OF DATA
Primary and Secondary Data
After preparing the plan of Research design, the most important task is the collection of
the data. It should be remembered that the data collection is the foundation of research; n
which the entire structure of research is constructed. Therefore, data should be collected
with maximum efficiency, ability and accuracy. Because if there is any deficiency in this
process, the conclusion drawn will be fallacious and unreliable. Collection of data means
collection of numerical information’s related to subject matter coming under the purview
of the investigation..
Primary and Secondary Data
From view of data collection, they may be of two types:-
a) Primary Data and
b) Secondary Data
a)Primary Data – Primary Data means those data which are originally collected by
an researcher for the first time for any statistical investigation. According to Secrist,
“By primary data are meant those which are original, that is, those in which little or
no grouping has been made, the instance being recorded or itemized or encountered.
They are essentially raw material . “ For example an investigator wishes to study the
economic condition of adivasis in M.P and he collects data directly or indirectly from
those adivasis such collection will be called Primary Data.
b)Secondary data – Secondary data are those which are already collected by those
persons or agencies and the investigator just uses them. According to M.M.Blair
“Secondary data are those already in existence and which have been collected for
some other purpose than the answering of the question at hand.” For instance, using
the data published by government for the development of sugar industry
Difference between Primary and Secondary data –

1) Originality-Primary data are collected originally and they are used as raw
material in different statistical methods. On the contrary, secondary data are
already available and they are used as manufactured goods in research.
2) Collection- Primary data are collected by the investigator himself, whereas the
secondary data are collected by other persons or agencies for their own use.
3) Relations with the Objective-Primary data are collected for the enquiry itself.
Hence, they prove fully suitable for the objective of the research. But secondary6
Data need not to be appropriate to the objective and some modifications may be
necessary to make them appropriate as per requirements

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Comparison of Primary and Secondary Data

________________________________________________________________
PRIMARY DATA SECONDARY DATA
________________________________________________________________
Collection purpose For the problem at hand For other problems
Collection process Very involved Rapid and easy
Collection cost High Relatively low
Collection time Long Short

___________________________________________________________
In discussion below we will limit ourselves to secondary data only. We will discuss its
classification, advantages, disadvantages and criteria we consider while evaluating
secondary data.
Classification of Secondary Data:-
Secondary data may be classified as internal or external data.
Secondary Data
External
Internal
Ready to use Require further Published Syndicated

Processing
Computer Database
Internal data are those generated within the organisation. This information may be
available in a ready to use or may require further processing before they are useful to
researcher. Internal sources can supply some of the most vital data for research. The
information generated by the corporation’s daily business operations can represent a
wealth of data useful to the researcher and should be the starting point of a project. It
offers the advantages of being proprietary to the company and is available at a low cost
relative to outside suppliers.e.g sales data. Sales data are valuable information for any
marketing project because they show the exact results of a program, salesperson, or sales
region. Actual costs allow the researcher to estimate costs for a research study or project

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costs for a marketing program. Detailed information can be gathered on precise
questions, for example, the percentage of sales to industry verses government or sales
broken out by company accounts. With planning, sales data can be recorded in the
company’s management information system to allow for optimal use by analysts.
External data are those generated by sources outside the organization. External data may
be available from published materials, computerized databases, or from syndicated
services. The various sources of published secondary data include business guides,
directories, indexes, nongovernmental statistical data, government sources, computerized
databases, and syndicated publications. The different forms of computerized databases
are Internet, on-line or off-line databases .The advantages of computerized databases are
that the data are current and up-to-date; the search process is more comprehensive, much
quicker, and greatly simplified; the cost of accessing these databases is low; and it is
convenient and easy to access this data with a personal computer fitted with an
appropriate communication device such as a modem or a communication network
In addition to published data or data available in the form of computerized databases
Syndicated sources constitute the other major source of external data Syndicated sources
or also refereed as syndicated firms -companies which collect and pool information and
sell it to a number of clients are termed syndicated sources of data. They provide
information on both the consumer and industrial market via a variety of data gathering
techniques. Based on the unit of measurement, syndicated services can be classified as
household/consumer oriented or institutionally-oriented.
The usefulness of secondary data can be greatly enhanced when internally generated data
are merged with data obtained from external sources. By using both internal and external
secondary sources, marketing researchers can overlay demographic, economic, or
business statistics on proprietary customer files. These data can then be used to develop
market assessments or profiles of various customer groups, or simply to educate the sales
force. The combination of internal and external data results in inexpensive and valuable
information that can be used for a variety of purposes, including database marketing.
Advantages and Use of Secondary Data

Secondary data can cover a broad range of factors that affect the problem at hand. It does
not always fit the specific problem at hand, but can be useful in developing an approach
to the problem and providing a comprehensive understanding of the problem
environment.
Secondary data can help you:
1. Identify the problem.
2. Better define the problem.
3. Develop an approach to the problem.
4. Formulate an appropriate research design (for example, by identifying the key
variables).
5. Answer certain research questions and test some hypotheses.
6. Interpret primary data more insightfully.

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Disadvantages of Secondary Data
Because secondary data have been collected for purposes other than the problem at hand,
their usefulness to the current problem may be limited in several important ways,
including relevance and accuracy.
• The objectives, nature, and methods used to collect the secondary data
may not be appropriate to the present situation.
• Secondary data may be lacking in accuracy, or they may not be
completely current or dependable.
Criteria for evaluating Secondary Data

Review the following criteria when evaluating the suitability and reliability of
secondary data.
1. The purpose for which data were collected
2. The content of the data
3. Methodology used to collect the data
4. When the data were collected
5. Accuracy of data
6. The overall dependability of the data

Prepared By :Sanjeev Kumar (Faculty Management)
PRIMARY DATA
After discussing about secondary data now its time to know about primary data, Primary data
are originated by the researcher for the specific purpose of addressing the research problem.
Primary data can be collected through various sources and can be classified into
two broad heads qualitative research and quantitative research and which are further classified
into various subhead. These procedures depend upon objectives of study, and research design
adopted for the study. The classification is as follows
Primary Data
Qualitative Quantitative
Survey Experimentation
Direct Observation
Indirect
Projective Tech. Electronic Personal Obs.

Focus Mail
group
Association
In-depth Telephonic Mechanical Obs.
Interview Interview
Constructio
Content Analysis
Completive Personal
Audit
Expressive Mails
Trace Analysis
Qualitative Research Procedures:
These procedures are classified as either direct or indirect, based on whether the true purpose
of the project is known to the respondents.
Direct Approach:
A direct approach is not disguised. The purpose of the project is to disclosed to the
respondents or is otherwise obvious to them from the questions asked. Focus group or Depth
interviews are the major direct techniques.
Focus Group Interviews:

An interview conducted by a trained moderator in a nonstructural and natural manner with a
small group of respondents.
• Characteristics of Focus Group:
Group Size : 8 to 12
Group composition : Homogeneous
Physical Setting : Relaxed & Informal
Time duration : 1 to 3 hours
Recording : Use of audio or video
Moderator : Observational, interpersonal
& communication skills.
Characteristics of Moderator:
Kindness with firmness: The moderator must combine a disciplined detachment with
understanding empathy so as to generate the necessary interaction .
Permissiveness: The moderator must be permissive yet alert to signs that the group’s cordiality
or purpose is disintegrating.
Involvement: The moderator must encourage and stimulate intense personal involvement.
Incomplete Understanding: The moderator must encourage respondents to be more specific

about generalized comments by exhibiting incomplete understanding.
Encouragement: The moderator must encourage unresponsive members to participate.
Flexibility: The moderator must be able to improvise and alter the planned outline amid the
distractions of the group process.
Sensitivity: The moderator must be sensitive enough to guide the group discussion at an
intellectual as well as emotional level.
Advantages of Focus Group:
Synergism
Snowballing
Stimulation
Security
Spontaneity
Serendipity
Specialization
Scientific scrutiny
Structure
Speed
Disadvantages of Focus Group:

Misuse
Misjudge
Moderation
Messy
Misrepresentation
Depth Interviews:
Depth Interviews are another method of obtaining Qualitative data. It is an unstructured, direct,
personal interview in which a single respondent is probed by a highly skilled interviewer to
uncover underlying motivations, beliefs, attitudes and feelings on a topic.
Techniques of Depth Interviews:
Laddering: It is the line of questioning proceeds from product characteristics to user

characteristics.
Wide body aircrafts (product characteristic)
I can get more work done
I accomplish more
I feel good about myself (user characteristic)
Advertising theme: You will feel good about yourself when flying
our airline. “You're The Boss.”
Hidden Issue Questioning: In hidden issue questioning, the focus is not on socially shared
values but rather on personal “sore spots;” not on general lifestyles but on deeply felt personal
concerns.
Symbolic Analysis: Symbolic analysis attempts to analyze the symbolic meaning of objects
by comparing them with their opposites. The logical opposites of a product that are
investigated are: non-usage of the product attributes of an imaginary “non-product,” and
opposite types of products.
Advantages of Depth Interviews:

It can uncover the greater depth of insights than focus groups.
The responses directly to the respondent.
It is a free exchange of information.
Disavantages of Depth Interviews:

Conducting depth interviews are expensive.
Lack of structure.
Results are depending on the interviewer’s skills.
Difficult to analysis the data.
Projective Techniques:
“An unstructured, indirect form of questioning that encourages
respondents to project their underlying motivations, beliefs, attitudes or feelings regarding the
issues of concern. “
In projective techniques, respondents are asked to interpret the
behavior of others. In interpreting the behavior of others, respondents indirectly project their
own motivations, beliefs, attitudes, or feelings into the situation.
Association Techniques:
In association techniques,an individual is presented with a stimulus and
asked to respond with the first thing that comes to mind.
• Word Association:
In word association, respondents are presented with a list of words, one at a time
and asked to respond to each with the first word that comes to mind. The words of interest,
called test words, are interspersed throughout the list, which also contains some neutral, or
filler words to disguise the purpose of the study. Responses are analyzed by calculating:
The frequency with which any word is given as a response;
The amount of time that elapses before a response is given;
The number of respondents who do not respond at all to a test word within a reasonable
period of time.
Completion Techniques:
In Completion techniques, the respondent is asked to complete an in complete stimulus
situation.
Sentence Completion:
In Sentence completion, respondents are given incomplete sentences and asked to complete
them. Generally, they are asked to use the first word or phrase that comes to mind.
Story Completion:
In story completion, respondents are given part of a story – enough to direct attention to a
particular topic but not to hint at the ending. They are required to give the conclusion in their
own words.
Construction Techniques:
These are requiring the respondent to construct a response in the form of a story, dialogue or
description.
Picture Response:
With a picture response, the respondents are asked to describe a series of pictures of ordinary
as well as unusual events. The respondent's interpretation of the pictures gives indications of
that individual's personality.
Cartoon Tests:
In cartoon tests, cartoon characters are shown in a specific situation related to the problem.
The respondents are asked to indicate what one cartoon character might say in response to the
comments of another character. Cartoon tests are simpler to administer and analyze than
picture response techniques.
Expressive Techniques:
In expressive techniques, respondents are presented with a verbal or visual situation and asked
to relate the feelings and attitudes of other people to the situation.
Role Playing :
Respondents are asked to play the role or assume the behavior of someone else.
Third-person Technique:
The respondent is presented with a verbal or visual situation and the respondent is asked to
relate the beliefs and attitudes of a third person rather than directly expressing personal beliefs
and attitudes. This third person may be a friend, neighbor, colleague, or a “typical” person
Advantages of Projective Techniques

They may elicit responses that subjects would be unwilling or unable to give if they knew the
purpose of the study.
Helpful when the issues to be addressed are personal, sensitive, or subject to strong social
norms.
Helpful when underlying motivations, beliefs, and attitudes are operating at a subconscious
level.
Disadvantages of Projective Techniques:
Suffer from many of the disadvantages of unstructured direct techniques, but to a greater
extent.
Require highly trained interviewers.
Skilled interpreters are also required to analyze the responses.
There is a serious risk of interpretation bias.
They tend to be expensive.
May require respondents to engage in unusual behavior.
Guidelines of Projective Techniques

Projective techniques should be used because the required information cannot be accurately
obtained by direct methods.
Projective techniques should be used for exploratory research to gain initial insights and
understanding.
Given their complexity, projective techniques should not be used naively.
2) Quantitative Research Procedures:

The key to good descriptive research is knowing exactly what you want to measure. The
main quantitative
procedures are survey methods and observation.
Survey Method:
The survey involves a structured questionnaire given to the respondents and designed to
elicit specific information related to the problem at hand. Survey may be conducted in
various ways which are discussed below. The survey method of obtaining information is
based on questioning respondents. Perhaps the biggest issue researchers face is how to
motivate respondents to candidly answer their questions. Questions regarding behavior,
intentions, attitudes, awareness, motivations, and demographic and lifestyle characteristics
all lend themselves to Survey
.
1.Traditional Telephone interview: involves phoning a sample of respondents and asking
them a series of questions. Traditional Telephone Interviews. The interviewer uses a paper
questionnaire and records the responses with a pencil. Telephone interviews are generally
conducted from centrally located research facilities. Field service supervisors can closely
monitor the telephone conversations. Data quality is also enhanced with on-the-spot review of
completed questionnaires.
2.Computer-assisted telephone interviews: the computer dials a telephone number, the

interviewer asks the questions on the screen of the computer, and the interviewer records the
respondents’ answers directly into the computer. Computer-Assisted Telephone Interviewing
uses a computerized questionnaire administered to respondents over the telephone. The
interviewer sits in front of a computer screen and wears a mini-headset.
Upon command, the computer dials the telephone number to be called.When contact is made,
the interviewer reads the questions posed on the CRT screen and records the respondent's
answers directly into the computer.Interim and update reports can be compiled instantaneously,
as the data are being collected.CATI software has built-in logic, which also enhances data
accuracy.The program will personalize questions and control for logically incorrect answers,
such as percentage answers that do not add up to 100 percent.The software has built-in
branching logic, which will skip questions that are not applicable or will probe for more detail
when warranted.
3.Personal in-home interview: involves asking questions of a sample of respondents face-to-

face in their homes.The interviewer's task is to contact the respondents, ask the questions, and
record the responses.In recent years, the use of personal in-home interviews has declined.
4.Mall-intercept personal interview: respondents are intercepted while they are shopping in
a mall and brought to a central location test facility located in the mall, and then a
questionnaire is administered to them by the interviewer as in the in-home personal survey.
The process involves stopping the shoppers, screening them for appropriateness, and either
administering the survey on the spot or inviting them to a research facility located in the mall
to complete the interview.While not representative of the population in general, shopping mall
customers do constitute a major share of the market for many products.
5 Computer-assisted personal interview: the respondent sits in front of a computer terminal

and answers the questionnaire on the CRT screen by using the keyboard and/or mouse. The
colorful screens and on-and off-screen stimuli add to the respondent's interest and involvement
in the task. This method has been classified as a personal interview technique since an
interviewer is usually present to serve as a host and to guide the respondent as needed. This
approach is used in shopping malls, preceded by the intercept and screening process described
earlier.It is also used to conduct business-to-business research at trade shows or conventions.
6.Mail interview: questionnaires are mailed to pre-selected potential respondents where the
respondents complete and return the questionnaires by mail. A typical mail interview package
consists of the outgoing envelope, cover letter, questionnaire, postage-paid return envelope,
and possibly an incentive. Those individuals motivated to do so complete and return the
questionnaire through the mail. There is no verbal interaction between the researcher and the
respondent. Individuals are selected for cold surveys through mailing lists the client maintains
internally or has purchased commercially. The type of envelope, the cover letter, the length of
the questionnaire, and the incentive (if one is offered) all affect response rates.
7.Mail panel: Mail panels consist of a large and nationally representative sample of
individuals who have agreed to participate in periodic survey research. Incentives in the form
of cash or gifts are often offered to the individuals who agree to participate. Once the
individuals have been admitted to the panel, detailed demographic and lifestyle data are
collected on each household. The researcher uses this information to select targeted mailing
lists within the panel based on client needs.
8.E-mail interview: the survey is written within the body of the e-mail message. The emails
are sent out over the Internet. E-mail surveys use pure text (ASCII) to represent
questionnaires, and can be received and responded to by anyone with an e-mail address,
whether or not they have access to the Web. If the addresses are known, the survey can simply
be mailed electronically to respondents included in the sample.
Respondents key in their answers and send an e-mail reply. Typically, a computer program is
used to prepare the questionnaire and email address list, and to prepare the data for analysis.
Respondent anonymity is difficult to maintain because a reply to an email message includes the
sender’s address. Email surveys are especially suited to projects where the email lists are
readily available, such as surveys of employees, institutional buyers, and consumers who
frequently contact the organization via email (e.g., frequent fliers of an airline).
9.Internet interview: Internet or Web surveys use hypertext markup language (HTML),
the language of the Web, and are posted on a Web site. Respondents may be recruited over the
Internet from potential respondent databases maintained by the marketing research firm or they
can be recruited by conventional methods (mail, telephone).The questions are displayed on the
screen and the respondents provide answers by clicking an icon, keying in an answer, or
highlighting a phrase. Web survey systems are available for constructing and posting Internet
surveys. The researcher can obtain at any time survey completion statistics, descriptive
statistics of the responses, and graphical display of the data. As compared to email surveys,
Internet surveys offer more flexibility, greater interactivity, personalization, automatic skip
patterns and visual appeal. •Several Web sites, such as Web Surveyor
(www.websurveyor.com), allow users to design surveys online without downloading the
software.
Criteria for Selecting a Survey Method

Flexibility of Data Collection. The flexibility of data collection is determined primarily by
the extent to which the respondent can interact with the interviewer and the survey
questionnaire. The personal interview, whether conducted in-home or as a mall-intercept
interview, allows the highest flexibility of data collection. CATI, CAPI, and Internet surveys
allow somewhat greater flexibility because the questionnaire is administered in an interactive
mode. Because these modes do not allow for interaction between the interviewer and the
respondent, mail surveys, mail panels, and e-mail surveys have low flexibility.
Diversity of Questions. The diversity of questions that can be asked in a survey depends upon
the degree of interaction the respondent has with the interviewer and the questionnaire, as well
as the ability to actually see the questions. Therefore, in-home, mall-intercept, and CAPI allow
for diversity. In Internet surveys, multimedia capabilities can be utilized, so the ability to ask a
diversity of questions is moderate to high, despite the absence of an interviewer. In mail
surveys, mail panels, and e-mail surveys, less diversity is possible. In traditional telephone
interviews and CATI, the respondent cannot see the questions while answering and this limits
the diversity of questions.
Use of Physical Stimuli. Often it is helpful or necessary to use physical stimuli such as the
product, a product prototype, commercials, or promotional displays during the interview. In
these cases, personal interviews conducted at central locations (mall-intercept and CAPI) are
preferable to in-home interviews. Mail surveys and mail panels are moderate on this
dimension, because sometimes it is possible to mail the facilitating aids or even product
samples. Internet surveys are also moderately suitable. Because they are web-based, the
questionnaires can include multimedia elements such as prototype web pages and
advertisements. The use of physical stimuli is limited in traditional telephone interviews and
CATI, and also in e-mail surveys.
Sample Control. Sample control is the ability of the survey mode to reach the units specified
in the sample effectively and efficiently. In-home personal interviews offer the best sample
control. Mall-intercept interviews allow only a moderate degree of sample control. Compared
to mall-intercept, CAPI offers slightly better control, as sampling quotas can be set and
respondents randomized automatically. Moderate to high sampling control can be achieved
with traditional telephone interviews and CATI. The degree of sample control in mail surveys
is low. Mail panels, on the other hand, provide moderate to high control over the sample. They
provide samples matched to U.S population. Not all populations are candidates for Internet
survey research. Thus, sample control is low to moderate for Internet surveys. E-mail surveys
suffer from many of the limitations of mail surveys and thus offer low sample control.
Control of the Data Collection Environment. Personal interviews conducted at central

locations (mall-intercept and CAPI) offer the greatest degree of environmental control. In-
home personal interviews, traditional telephone, and CATI offer moderate control. In mail
surveys and panels, e-mail, and Internet surveys, the researcher has little control over the
environment.
Control of Field Force. The field force consists of interviewers and supervisors involved in
data collection. Because they require no such personnel, mail surveys, mail panels, e-mail, and
Internet surveys eliminate field force problems. Traditional telephone interviews, CATI, mall-
intercept, and CAPI, all offer moderate degrees of control because the interviews are conducted
at a central location, making supervision relatively simple. In-home personal interviews are
problematic in this respect.
Quantity of Data. In-home personal interviews allow the researcher to collect large amounts
of data. In contrast to in-home interviews, mall-intercept and CAPI provide only moderate
amounts of data. Mail surveys also yield moderate amounts of data. The same is true for e-
mail and Internet surveys, although the Internet is a better medium in this respect. Mail panels,
on the other hand, can generate large amounts of data because of the special relationship
between the panel members and the sponsoring organization. Traditional telephone interviews
and CATI result in the most limited quantities of data.
Response Rate. Personal, in-home, mall-intercept, and computer assisted interviews yield the
highest response rate (typically more than 80%). Telephone interviews, traditional and CATI,
yield response rates between 60 and 80 per cent. Mail surveys have poor response rates.
However, response rates in mail panels are typically in the 70 - 80 percent range because of
assured respondent cooperation. Internet surveys have the poorest response rates, even lower
than e-mail surveys. This is due to the fact that some respondents may have access to E-mail
but not to the Web, and accessing the Web requires more effort and skill.
Perceived anonymity. Perceived anonymity refers to the respondents' perceptions that their
identities will not be discerned by the interviewer or the researcher. Perceived anonymity of
the respondent is high in mail surveys, mail panels, and Internet surveys because there is no
contact with an interviewer while responding. It is low in personal interviews (in-home, mall-
intercept, and computer-assisted) due to face-to-face contact with the interviewer. Traditional
telephone interviews and CATI fall in the middle. It is also moderate with e-mail. While there
is no contact with the interviewer, respondents know that their names can be located on the
return e-mail.
Social Desirability/Sensitive Information. As mail surveys, mail panels, and Internet surveys
do not involve any social interaction between the interviewer and the respondent, they are the
least susceptible to social desirability. Traditional telephone interviews and CATI are
moderately good at avoiding socially desirable responses. They are good for obtaining
sensitive information, as the respondents have the perception that they are not committing to
anything in writing over the telephone. E-mail is only moderately good for controlling social
desirability and obtaining sensitive information, given the respondents’ awareness that their
names can be located on the return e-mail. Personal interviews, whether in-home, mall-
intercept, or computer-assisted, are limited in this respect, although the problem is somewhat
mitigated in the case of computer-assisted interviews.
Potential for Interviewer Bias. The extent of the interviewer's role determines the potential
for bias. In-home and mall-intercept personal interviews are highly susceptible to interviewer
bias. Traditional telephone interviews and CATI are less susceptible, although the potential is
still there. Computer-assisted interviews have a low potential for bias. Mail surveys, mail
panels, e-mail, and Internet surveys are free of it.
Speed. The Internet is by far the fastest method followed by e-mail. Traditional telephone
interviews and CATI are also fast ways of obtaining information. Next in speed are mall-
intercept and computer-assisted interviews, which reach potential respondents in central
locations. In-home personal interviews are slower, because there is dead time between
interviews while the interviewer travels to the next respondent. Mail surveys are typically the
slowest. Mail panels are faster than mail surveys, as little follow-up is required.
Cost-. In general, Internet, e-mail, mail surveys, mail panel, traditional telephone, CATI,
CAPI, mall-intercept, and personal in-home interviews require progressively larger field staff
and greater supervision and control. Hence, the cost increases in this order.
Improving Survey Response

Regardless of the survey method chosen, response rates can be improved by prior notification,
incentives, follow-up, and implementing other facilitators of response.
Prior notification consists of sending a letter or e-mail, or making a telephone call to potential
respondents, notifying them of the imminent mail, telephone, personal, or electronic survey.
Offering monetary as well as nonmonetary incentives to potential respondents can increase
response rates. Follow-up, or contacting the nonrespondents periodically after the initial
contact, is particularly effective in decreasing refusals in mail surveys. The researcher might
send a postcard or letter to remind nonrespondents to complete and return the questionnaire.
Finally, personalization, or sending letters addressed to specific individuals, is effective in
increasing response rates.
Advantages of Survey Research

•Ease: Questionnaires are relatively easy to administer.
•Reliability: Using fixed-response (multiple-choice) questions reduces variability in the results
that may be caused by differences in interviewers and enhances reliability of the responses.
•Simplicity: It also simplifies coding, analysis, and interpretation of data.
Disadvantages of Survey Research

•Respondents may be unable or unwilling to provide the desired information.
•Structured data collection involving a questionnaire with fixed-response choices may result in
loss of validity for certain types of data, such as beliefs and feelings.
•Properly wording questions is not easy.
Advantages and disadvantage of Various Method

METHOD ADVANTAGES DISADVANTAGES
Telephone Fast No use of physical stimuli

High sample control Limited to simple questions
Good control of field force Quantity of data is low
Good response rate
Moderate cost
In-Home Complex questions can be asked Low control of field force

Good for physical stimuli High social desirability
Very good sample control Potential for interviewer
bias
High quantity of data Most expensive
Very good response rate
Mall-Intercept Complex questions can be asked High social desirability
Very good for physical stimuli Potential for interviewer
bias
Very good control of environment Quantity of data is
moderate
Very good response rate High cost
CAPI Complex questions can be asked High social desirability

Very good for physical stimuli Quantity of data is moderate
Very good control of environment High cost
Very good response rate
Low potential for interviewer bias
Mail No field force problems Limited to simple questions

No interviewer bias Low sample control for cold mail
Moderate/High quantity of data No control of environment
Social desirability is low Low response rate for cold mail
Low/moderate cost Low speed
Electronic No field force problems Limited to simple questions

No interviewer bias Low sample control
Low cost No control of environment
Social desirability is low Low response rate
High speed Moderate quantity of data
Observation
Observation is one of the cheaper and more effective technique of data collection. In words of
Young, it is a systematic viewing coupled with consideration of the seen phenomena. As such
observation is carried out with the help of the eye and the purpose and the aim of observation
is to discover significant mutual relations between spontaneously occurring events and thereby
pinpointing the crucial facts of a situation. In other words observation is defined as the process
of recognizing and noting people, objects and occurrences rather than asking for
information.e.g instead of asking consumers what brands they buy or what television
programme they view, a better alternative may be to simply observe what products are bought
and what programme are viewed .The different observation methods are used depending on
research problem.The observation method are of following type
1.Structured observation is appropriate when the marketing research problem has been clearly
defined and the information needed has been specified. It requires that the researcher specify
in detail what is to be observed and how the measurements are to be recorded. Unstructured
observation is appropriate when the problem has yet to be formulated precisely, and flexibility
is needed in observation to identify key components of the problem and to develop hypotheses.
2.In disguised observation, the respondents are not aware that they are being observed,
whereas in undisguised observation the respondents are aware that they are under observation.
Disguised observation is used when it is felt that the respondents would act differently under
direct observation, for example, the purchase of sensitive or personal products.
3.Natural observation involves observing behavior as it normally takes places in the

environment. Contrived observation takes place in an artificial environment that has been
created by the researcher. Natural observations allow the researcher to observe actual
behavior, but do not allow for inferences on the causes of behavior. Contrived observation
enables the researcher to control more of the variables that affect behavior.
Observation method may be classified as follows on the basis of mode of administration

1.Personal observation: the researcher personally observes actual behavior as it occurs, and
the observer merely records what takes place. The researcher does not attempt to control or
manipulate the phenomenon being observed. A researcher observes actual behavior as it
occurs. For example, a researcher might record traffic counts and observe traffic flows in a
department store.
2.Mechanical observation: these are devices used to continually record ongoing behavior for
later analysis. Do not require respondents' direct participation. The AC Nielsen audiometer,
turnstiles that record the number of people entering or leaving a building. On-site cameras
(still, motion picture, or video), Optical scanners in supermarkets Apart from there are some
mechanical instrument that require respondent involvement.Eye-tracking monitors,
pupilometers, psychogalvanometers.voice pitch analyzers, devices measuring response latency.
Advantages and disadvantages of observation over Survey

Advantages
1Observational methods permit measurement of actual behavior.
2The potential bias caused by the interviewer and the interviewing process is eliminated or
reduced.
3Certain types of data can be collected best or only by observation.
4If the observed phenomenon occurs at relatively frequent intervals and is of short duration,
observational methods may cost less and be faster than the survey methods.
Disadvantages:
1Very little can be inferred about the motives, beliefs, attitudes, and preferences underlying the
observed behavior.
2Selective perception of the observer can bias the data.
3In some cases the use of observational methods may border on being unethical because the
subjects' behavior is being monitored without their explicit knowledge or consent.
Audit
In an audit, the researcher collects data by examining physical records or performing inventory
analyasis. Audits the two distinguishing features. First data are collected personally by
researcher. Second, the data are based upon counts, usually of physical objects. Retail and
wholesale audits conducted by market researcher are examples of audit.
Content Analysis- Content analysis (sometimes called textual analysis) is a standard
methodology in the social sciences for studying the content of communication. Earl Babbie
defines it as "the study of recorded human communications, such as books, websites, paintings
and laws."Harold Lasswell formulated the core questions of content analysis: "Who says what,
to whom, why, to what extent and with what effect?.
"Content analysis is a summarizing, quantitative analysis of messages that relies on the

scientific method (including attention to objectivity-intersubjectivity, a priori design,
reliability, validity, generalizability, replicability, and hypothesis testing) and is not limited as
to the types of variables that may be measured or the context in which the messages are created
or presented."
Trace Analysis
An observation method can be inexpensive if used creatively is trace analysis. In trace analysis,
data collection is based on physical traces, or evidence, of past behavior. These traces may be
left intentionally or unintentionally by the respondents.
CORRELATION
In our day-to-day life, a mutual relationship exists between two variables i.e. with fall or
rise in the value of one variable, the fall or rise may take place in the value of other
variable. For example, price of a commodity rises as the demand for the commodity goes
up. Upto a certain time-period, weight of a person increases with the increase in age.
Similarly, the temperature rises with the rise in the sun light. These facts indicate that there
is certainly some mutual relationship that exists between the demand for a commodity and
its price, the age of a person and his weight, and the sunlight and temperature. The
correlation refers to the statistical technique used in measuring the closeness of the
relationship between the variables.
• 2. DEFINITION OF CORRELATION
Correlation analysis deals with the association between two or more variables - Simpson
and Kafka.
If two or more quantities vary in sympathy, so that movement in one tend to be

accompanied by corresponding movements in the other, then they are said to be correlated -
Conner.
Correlation analysis attempts to determine the degree of relationship between variables Ya-
Lun Chou.
Thus, correlation is a statistical technique which helps in analysing the relationship

between two or more variables. The study of correlation is of immense significance in
statistical analysis and practical life,· which is clear from the following points:
(1) Most of variables show same kind of relationship. For example, there is relationship
between price and supply, income and expenditure, etc. With the help of correlation
analysis, we can measure the degree of relationship in one figure between different
variables like supply and price, income and expenditure etc. .
(2) Once we come to know that the two variables are mutually related, then we can
estimate the value of one given other by help of regression, which is based on correlation.
In other words, the concept of regression is based on correlation. '
(3) Correlation is also useful for economists. An economist specifies the relationship
between different variables like demand and supply, money supply and price level by way
of correlation.
(4) In business, a trader makes the estimation of costs, sales, prices etc. with the help of
correlation and makes appropriate plans.
Thus, in every field of practical life, correlation analysis is extremely useful in making a
comparative study of two or more related phenomena and analyzing their mutual
relationship.
Prepared By-Sanjeev Kumar Ishpujani (Faculty Management) 1

Main types of correlation are given below:
(1) Positive and Negative Correlation: On the basis of direction of change of the
variables, correlation can be classified into two types:
(i) Positive Correlation: If two variables X and Y move in the same direction i.e. if one
rises, other rises too and vice versa, then it is a called as positive correlation. Examples of
positive correlation are the relationship between price and supply, between money supply
and prices etc.
(ii) Negative Correlation: If two variables X and Y move in opposite direction i.e. if one
rises, other falls, and if one falls, other rises, then it is called as negative correlation.
Examples of negative correlation are the relationship between demand and price,
investment and rate of interest etc.
(2) Linear and Curvi-Linear Correlation: On the basis of change in proportion,

correlation is of two types:
(i) Linear Correlation: If the ratio of change of two variables X and Y remains constant
throughout, then they are said to be linearly correlated, like as when every time supply of a
commodity rises by 20% as often as its price rises -by 10%, then such two variables have
linear relationship. If values of these two variables are plotted on a graph, then all the
points will lie on a straight line.
(ii) Curvi-Linear Correlation: If the ratio of change between the two variables is not
constant but changing, correlation is said to be curvi-linear, like as when every time price
of a commodity rises by 1 0%, then sometimes its supply rises by 20%, sometimes by I 0%
and sometimes by 40%, then non-linear or curvi-linear correlation exists between them. In
case of curvi-linear correlation, values of the variables plotted on a graph will give a curve.
(3) Simple Partial and Multiple Correlation: On the basis of number of variables
studied, correlation may be classified into three types:
(i) Simple Correlation: When we study the relationship between two variables only, then
it is called simple correlation. Relationship between price and demand, height and weight,
income and consumption etc. are all examples of simple correlation.
(ii) Partial Correlation: When three or more variables are taken but relationship between
any two of the variables is studied, assuming other variables as constant, then it is called
partial correlation. Suppose, under constant temperature, we study the relationship between
amount of rainfall and wheat yield, then this will be called as partial correlation.
(iii) Multiple Correlation: When we study the relationship among three or more variables,
then it is called multiple correlation. For example, if we study the relationship between
rainfall, temperature and yield of wheat, then it is called as multiple correlation .
CORRELATION AND CAUSATION

Correlation is a numerical measure of direction and magnitude of the mutual relationship
between the values of two or more variables. But the presence of correlation should not be
taken as the belief that the two correlated variables necessarily have causal relationship as
well. Correlation does not always arise from causal relationship but with the presence of

causal relationship, correlation is certain to exist. Presence of high degree of correlation
between different variables may be due to the following reasons:
(1) Mutual Dependence: The study of economic theory shows that it is not necessary that
only one variable may affect other variable. It is possible that the two variables may affect
each othcr mutually. In such situation, it is difficult to know which one is the cause and
which one is the effect. For example, price of a commodity is affected by the forces of
demand and supply. According to the law of demand, with the rise in price (other things
remaining constant), demand for the commodity will fall. Here rise in price is the cause and
fall in demand is the effect. On the other hand, with fall in demand, price of the commodity
falls. Here fall in demand is the cause and fall in price is the effect. Thus there may be high
degree of correlation between two variables due to mutual dependence, but it is difficult to
know which one is the cause and, which one is the effect.
. I .
(2) Due to Pure Chance: In a small sample it is possible that too variables are highly
correlated but in universe, these variables are unlikely to be correlated, such correlation
may be due to either the fluctuations of pure random sampling or due to the bias of
investigator in selecting the sample. The following example makes the point clear:
Income (in Rs.) 5,000 6,000 7,000 8,000 9,000

Weight (in Kg.) 100 120 140 160 180
In the data as stated above, there is perfect positive correlation between income and weight
i.e. weight increases with rise in income and the rate of change of the two variables is also
the same Such kind of correlation can not be said to be meaningful. Such relationship is
said to be non-sense.
(3) Correlation Due to any Third Common Factor: Two variables may be correlated due
to common third factor rather than having direct correlation. For example, if there is high
degree positive correlation between per hectare field of tea and rice, then this does not
imply that rice has risen due to the rich yield of tea. Another reason of the good yield of
these two is the good rainfall well in time that affects both of these two .
Degree of correlation
Degree of correlation can be known by coefficient of correlation (r). The following can be
various type of the degree of correlation
(1) Perfect Correlation: When two variables vary at constant ratio in the same direction, it
is perfect positive correlation and when the direction of change is opposite, it is perfect
negative correlation. In case of perfect positive correlation, correlation coefficient (r) is
equal to + 1, and in case of perfect negative correlation, correlation coefficient (r) is equal
to -1.
(2) High Degree of Correlation: When correlation exists in very large magnitude, then it
is called high degree of correlation. In such a case; correlation coefficient ranges between
0.75 and ±1.
(3) Moderate Degree of Correlation: Correlation coefficient, on being within the limits
0.25 and 0.75 is termed as moderate degree of correlation.

(4) Low Degree of Correlation: When correlation exists in very small magnitude, then it
is called as low degree of correlation. In such a case, correlation coefficient ranges between
0 and 0.25.
(5) Absence of Correlation: When there is no relationship between the variables, then
correlation is found to be absent. In case of absence of correlation, the value of correlation
coefficient is zero.
The degree of correlation on the basis of value of correlation coefficient can be summarised
with the following table: .
S.No. Degree of Correlation Positive Negative

1 Perfect Correlation +1 -1
2 High Degree of Correlation Between +0.75 to + 1 Between -0.75 to-1
3 Moderate Degree of Between +0.25 to +0.75 Between -0.25 to -0.75
4 Low Degree of Correlation Between 0 to + 0.25 Between 0 to -. 25
5 Absence of Correlation 0 0
Correlation can be determined by the following methods:

1. Graphic Methods
(a) Scatter Diagram
(b) Correlation Graph
2. Algebraic Methods.
. Karl Pearson's Coefficient of Correlation
Spearman's Rank Correlation Method
Concurrent Deviation Method
Karl Pearson's Coefficient of Correlation

It is quantitative method of measuring correlation. This method has been given by Karl
Pearson and, after his name, it is known as Pearson's coefficient of correlation. This is the
best method of working out correlation coefficient. This method has the following main
characteristics:
(1) Knowledge of Direction of Correlation: By this method, the direction of correlation is

determined whether it is positive or negative.
(2) Knowledge of Degree of Relationship: By this method, it becomes possible to

measure correlation quantitatively. The coefficient of correlation ranges between -1 and +
1. The value of the coefficient of correlation gives knowledge about the size of
relationship.
(3) Ideal Measure: It is considered to be an ideal measure of correlation as it is based on

mean and standard deviation.
(4) Covariance: Karl Pearson's method is based on co-variance. The magnitude of co-
variance can be used to express correlation between two variables. As magnitude of co-
variance becomes greater, higher will be the degree of correlation, otherwise lower. With

positive sign of covariance, correlation will be positive. On the contrary; correlation will be
negative if the sign of covariance is negative.
Assumptions of Karl Pearson' Coefficient of Correlation

Karl Pearson's coefficient of correlation is based on the following assumptions:
(1) Affected by a Large Number of Independent Causes: Series or variables which are
correlated, are affected by a large number of factors that result in a normal distribution.
(2) Cause and Effect Relation: There is a cause and effect relationship between the forces
affecting the distribution of the items in the two series.
(3) Linear Relationship: Two variables are linearly related. Plotting the values of the
variables in a scatter diagram yields a straight line.
Properties of the Coefficient of Correlation

The following are the important properties of the correlation coefficient (r):
Limits of Coefficient of Correlation: Karl Pearson's coefficient of correlation lies
between -1 and + 1.This implies r can never exceed + 1 and never becomes less than -1. It
always lies between -1 and +1.
(2) Change of Origin and Scale: Shifting the origin or scale does not affect in any way the
value of coefficient of correlation .Coefficient of correlation is independent of the change
of origin and scale. If the scale of a series is changed or the origin is shifted, then
correlation coefficient remains unchanged.
(3) Geometric Mean of Regression Coefficients: Correlation coefficient is the geometric
mean of the regression coefficients byx and bxy. Symbolically:
(4) If X and Yare independent variables, then coefficient of correlation is zero but the
converse is not necessarily true.
(5) Pure Number: 'r' is a pure number and is independent of the units of measurements.
This show that even if the two variables are expressed in two different units of
measurements viz.; rainfall in inches, and yields of crops in quintals, the value of
correlation coefficient comes out with pure number. Thus it does not require that the units
of both the variables should be the same.
(6) Symmetric: The coefficient of correlation between the two variables x and y is
symmetric i.e., rxy = ryx It means that either we compute the value of correlation
coefficient between x and y or between y and x, the coefficient of correlation remains the
same.
Interpreting the Coefficient of Correlation

Coefficient of correlation measures the degree of relationship between two variables. It is
denoted by 'r'. The value of correlation coefficient lies between -1 and + 1. The value of
correlation coefficient can be interpreted in the following ways:
i) If r = + 1, then there is perfect positive correlation.
ii)If r = 0, then there is absence of linear correlation.
iii) If r = +.25, then there will be low degree of positive correlation.
(iv) If r = +0.50, then there is moderate degree of correlation.
(v) If r = +0.75, then there is high degree of positive correlation.
Similarly, negative values of r can be interpreted.

Probable Error and Karl Pearson's Coefficient of Correlation

To test the reliability of Karl Pearson's correlation coefficient, probable error is used. The
following formula is used to determine probable error:
Probable Error (P.E.) = 0.6745 *(1-r2)/√n
where r is the coefficient of correlation and N is the coefficient of correlation
Utility of Probable Error: Interpretation of significance of r with the help of probable

error is made clear by the following points:
(i) If I r I > 6 P.E., then coefficient of correlation (r) is taken to be significant.
(ii) If I r I < 6 P.E., then coefficient of correlation (r) is taken to be insignificant. This
means that, there is no evidence of the existence of correlation in both the series.
Probable error also determines the upper and lower limits within which the corelation of a
randomly selected sample or universe will fall. Symbolically, Upper Limit = r + P.E.,
Lower Limit = r - P.E

Graphic Era University,Dehradun
REGRESSION ANALYSIS
INTRODUCTION
The study of regression has special importance in statistical analysis, We know that the,
mutual . relationship between two series is measured with the help. of correlation. Under
.correlatlon, .the direction and magnitude of the relationship between two variables is
measured. But. It is not possible to predict the best estimate of the value of a dependent
variable on the basis of the given value of the independent variable by correlation analysis.
Therefore, to make the best estimates and future estimation, the study of regression analysis is
very important and useful.
MEANING AND DEFINITION

According to Oxford English Dictionary, the word 'regression' means "Stepping back" or
regressing to average value", The term was first of all used by a famous Biological Scientist in
19th _' Sir Francis Galton relating to a study of hereditary characteristics. He found out an
average, result by making a study of the height of about one thousand fathers and sons. His
finding was that (i) Sons of tall fathers tend to be tall and sons of short fathers tend to be short
in (ii) But mean height of the tall fathers is greater than the mean height of the sons, whereas
eight of the short sons is greater than the mean height of the short fathers. The tendency of
mankind to twin back to average height, was termed by Galton 'Regression towards
periodicity' and the line that shows such type of trend was named as 'Regression Line'.
In statistical analysis, the term 'Regression' is taken in wider sense. Regression is the study of
relationship between the variables so that one may be able to predict the value of Qne variable
for a known value of another variable. In regression, one is considered as an independent
variable and another variable is taken as dependent - e. With the help of regression, possible
values of the dependent variable are estimated on the the values of the independent variable.
For example, there exists a functional relationship between demand and price i.e. D=f(P).
Here, demand (D) is a dependent variable, and price (P) is anindependent variable. On the
basis of this relationship between demand and price, probable values and can be estimated
corresponding to the different values of price.
Definition of Regresssion
The important definitions of regression are as follows:
Regression is the measure of the average relationship between two or more variables-M.M.
Blair.
Regression analysis measures the nature and extent of the relation between two or more
variables, thus enables us to make redictions-Hirsch.
In brief regression is a statistical method of studying the nature of relationship between two
two or more variable and to make prediction.
Prepared By- Sanjeev Kumar (Faculty Mangement) 1

Importance of Regression Analysis

The study of regression is very useful and important in statistical analysis, which is clear by the
following points:
(1) Nature of Relationship: Regression analysis explains the nature of relationship between two
variables.
(2) Estimation of Relationship: The mutual relationship between two or more variables can be
measured easily by regression analysis.
(3) Prediction: By regression analysis, the value of a dependent variable can be predicated on the
basis of the value of an independent variable. For example, if price of a commodity rises, what
will be the probable fall in demand, this can be predicted by regression.
(4) Useful in Economic and Business Research: Regression analysis is very useful in business
and economic research. With the help of regression, business and economic policies can be
formulated.
Difference between Correlation and Regression

The main difference between correlation and regression is as follows:
(1) Degree and Nature of Relationship: Correlation is a measure of degree of relationship
between X and Y whereas regression studies the nature of relationship between the variables so
that one may be able to predict the value of one variable on the basis of another.
(2)Cause and Effect Relationship: Correlation does not always assume cause and effect
relationship between two variables. Though two variables may be highly correlated, yet it does
not necessary follow that one variable is the cause and another variable is the effect. But
regression clearly expresses the cause and effect relationship between two variables. One variable
is considered independent in regression, for which the value is given and other variable is
dependent, which is estimated. The independent variable is the cause and the dependent variable
is effect.
(3) Prediction: Correlation does not help in making prediction whereas regression enable us to
make prediction. With the help of regression line of Y on X, the probable values of Y can be
predicted on the basis of the values of X.
(4) Symmetric: In correlation analysis, correlation coefficient (r xy) is the measure of direction
and degree of linear relationship between the two variable X and Y. r xy and ryx are symmetrical
i.e. r xy = r yx' This implies that it is immaterial which of X and Y is dependent variable and which
is independent. In regression analysis, the regression coefficients bxy and byx are not symmetric
i.e. bxy byx Thus, correlation coefficients rxy and ryx are symmetric whereas regression
coefficients byx and bxy are not symmetric.

(5)Nonsense Correlation: Sometimes, there may exist spurious or non-sense correlation between
two variables by chance, like if any the correlation, between rise in income and rise in weight is a
non-sense correlation but in regression analysis, there is nothing like non-sense regression.
(6)Origin and Scale: Correlation coefficient is independent of the change of origin and scale
whereas regression coefficient is independent of change of origin but not of scale. This implies
that if some common factor is taken out from X and Y variable, then no adjustment in correlation
formula has to be made, whereas in case of regression, we have to make an adjustment for it in
our formula.
Types of Regression
The main types of regression analysis are as follows:
(1) Simple and Multiple Regression: In simple regression analysis, we study only two variables
at a time, in which one variable is dependent and another is independent. The functional
relationship between income and expenditure is an example of simple regression. On the contrary,
we study more then two variables at a time in multiple regression analysis (i.e. at least three
variables) in which one is dependent variable and others are independent variable. The study of
effect of rain and irrigation on yield of wheat is an example of multiple regression.
(2) Linear and Non-Linear Regression: When one variable changes with other variable in some
fixed ratio, this is called as linear regression. Such type of relationship is depicted on a graph by
means of a straight line or a first degree equation. On the contrary, when one variable varies with
other variable in a changing ratio, then it is referred to as curvi-linear/non-linear regression. This
relationship, expressed on a graph paper takes the form of a curve. This is presented by way of
2nd or 3rd degree equation.
(3) Partial and Total Regression: When two or more variables are studied for functional
relationship but at a time, relationship between only two variables is studied and other variables
are held constant, then it is known as partial regression. On the other hand, in total regression all
variables are studied simultaneously for the relationship among them .
SIMPLE LINEAR REGRESSION

In practice, simple linear regression is often used and under this, Regression Lines, Regression
Equations and Regression Coefficients concepts are very important to be studied, which are as
follows:
Regression Lines
The regression line shows the average relationship between two variables. This is also known as
the Line of Best Fit. On the basis of regression line, we can predict the value of a dependent
variable on the basis of the given value of the independent variable. If two variables X and Yare
given, then there are two regression lines related to them which are as follows:
(1) Regression Line of X on Y: The regression line of X on Y gives the best estimate for the
'value of X for any given value of Y.
(2) Regression Line of Y on X: The regression line of Y on X gives the best estimate for the
value of Y for any given value of X.
Nature of Regression Lines (or Relation between Correlation and Regression)

With the help of the direction and magnitude of correlation, the nature of regression lines can be
known. The main points regarding the relationship among them are as follows:
If regression lines rise from left to right upward, then correlation is positive. On the other if these
line move from right to left, then correlation is negative.
The regression lines cut each other at the point of intersection of .X and Y . This is clear from :
following diagram:
Methods of Obtaining Regression

1)Lines Scatter Diagram Method,
2)Least Square Method.
Scatter Diagram Method: This is the simplest method of constructing regression lines. In this
method, values of the related variables are plotted on a graph. A straight line is drawn passing _
the plotted points. The straight line is drawn with freehand. This shape of regression line - linear
or non-linear also. This depends upon the location of plotted points. This method is ly used in
practice because in this method, the decision of the person who draws the 'on lines very mueh
affects the result.
Least Square Method: Regression lines are also constructed by least square method.' . s method,
a regression line is fitted through different points in such a way that the sum of of the deviations
of the observed values from the fitted line shall be least. The line drawn by this method is called
as the Line of Best Fit. In other words, under this method, the two regression _ drawn in such a
way that sum of the squared deviations becomes minimum. The regression line of Y on X is so
drawn such that vertically, the sum of squared deviations becomes minimum,relating to the
different points and the regression line on X on Y is so drawn such that ly, squared deviations of
different points add up to the minimum.
Regression Equations
Regression equations are the algebraic formulation of regression lines. Just as there are two
regression lines, similarly there are two regression equations-. which are as follows:
Regression Equation of Y on X: This equation is used to estimate the probable values of Y for
the given values of X. This equation is expressed in the following way:

Y=a+ bX
Y-Y=r σy/σx (X-X)

or Y - Y = byx (X - X)
Here, byx = Regression coefficient of Y on X.
2) Regression Equation of X on Y: This equation is used to estimate the probable values o· on the
basis of the given values ofY. This equation is expressed in the following way:
X =a +bY
Here, a and bare constants.
Regression equation of X on Y can also be written in another way:
(X-X) = r σx / σy (Y-Y)
or X - X = bxy (Y - Y )
Here, bxy = Regression coefficient of X on Y.
Regression Coefficients
Just as there are two regression equations, similarly there are two regression coefficient
Regression coefficient measures the average change in the value of one variable for a unit change
the value of another variable. Regression coefficient, infact, represents the slope of a regression I'
For two variables X and Y, there are two regression 'coefficients, which are given as follows:
(1) Regression Coefficient of Y on X: This coefficient shows that with a unit change in value of
X variable, what will be the average change in the value of Y variable. This is represent by byx.
Its formula is as follows:
byx = r.σy /σx
(2) Regression Coefficient of X on Y: This coefficient shows that with a unit change in value of
Y variable, what will be the average change in the value of X variable. It is represented by bxy. Its
bxy= r.σx /σy
Properties of Regression Coefficients

The main properties of the regression coefficient are as follows:
(1) Coefficient of correlation is the geometric mean of the regression coefficients, i.e.
r= bxy x byx
2)Regression coefficients must have the same algebraic signs. The means either coefficients
will be either positive or negative. In other words when one regression. Coefficient is negative ,

the other would be also negative. It is never possible that one regression - ive while the other is
positive.
3) Coefficient of correlation will have the same sign as that of regression coefficients. Regression
coefficient are negative correlation coefficient would be negative. And if positive signs, then r
will also take plus sign.
4)Regression coefficients cannot be greater than unity: If one regression .or is greater than unity,
then the regression coefficient of x on y must be less than one. If both the regression coefficients
happen to be more than 1 then correlation coefficient will exceed 1
5)Origin does not affect regression coefficients but shift in scale does affect. Regression
coefficients are independent of the change of origin but not of' some common factor is taken out
from the items of the series, then in that case, adjustment in the regression coefficient has to be
made
To Obtain Regression Equations

The Computation of regression equations can be divided into two parts:
(A) Regression Equations in case of Individual Series.
(B) Regression Equations in case of Grouped Data.
(A) Methods to Obtain Regression Equations in case of individual Series
In individual series, regression equations can be worked out by two methods, which are a follows:
(1) Regression Equations using Normal Equations
(2) Regression Equations using Regression Coefficients.
Regression Equations using Normal Equations

This method is also called as Least Square Method. Under the method, computation of regression
equations is done by solving out two normal equations. This method becomes clear by the
following:
Regression Equation of Y on X
Regression Equation ofY on X is expressed as follows:
Y=a+bX
where Y = Dependent variable, X = Independent Y variable, a = intercept, b = Slope of the line.

Under least square method, the values of a and bare obtained by using the following two normal
equations:
ΣY =Na +bΣX
ΣXY =aΣX +bΣX2

Solving these equations, we get the value of a and b.

Finally, the calculated value of a and b is put in the equation y = a +bx. The regression equation
of Y and X will be used to estimate the value or Y when the value of X is given.
Note: a is the intercept, which indicates the minimum value of Y for X = 0 and b is the slope of
the line or called regression coefficient ofY and X, which indicates the absolute increase in Y for
a unit increase in X.
Regression Equation of X on Y
Regression Equation of X on Y is expressed. as follows:
X =a +bY
where X = Dependent variable, Y = Independent variable, a = X-intercept, b = Slope of the line.
Under least square method, the values of a and b are ed by using the following two normal
equations:
ΣX = Na + bΣY
ΣXY =aΣY +bΣY2
Using these equations, we get the value of a and b, the calculated value of a and b are put in the
X = a + bY. The regression equation of X on Y will be used to estimate the value of X when the
value of Y is given
Note: a is the X-intercept, which indicates the minimum value of X for Y = 0 and b is the
Slope of the line or called regression coefficient of X on Y, which indicates the absolute increase
in X with unit increase in Y.
Explained and Unexplained Variation

The total variation in the dependent variable Y can be split into two:
(a) Explained variation: The variation in Y which is explained by the variation in X is called
explained variation in Y.
(b) Unexplained variation: The variation in Y which is unexplained by the variation in variable
X and is due to some other factors (a variables) is called unexplained variation in Y.
Symbolically,

Total variation in Y = Explained variation in Y + Unexplained variation in Y
where Yc = computed (or estimated) value of Y on the basis of regression equation Y

Y= Mean value of Y series ,Y = Original value of Y series.
A similar relationship we may have for X variable (Dependent) in terms ofY:
Σ (X -X)2 =(Xc -X)2 +(X –Xc)2
Coefficient of Determination: Based on the above expression, the coefficient of determination - is

defined as the ratio of the explained variation to total variation i.e.
2
Explained variation = Σ(Yc – Y)
2
r = Total Variation Σ(Y – Y)
It is clear that the object of coefficient of determination is to determine the percentage variation
which is explained by variation in X. For example, let us suppose that the correlation coefficient
between X and Y is +0.8, then coefficient of determination (r2) =(.8)2 =.64. It means that 64%
variation in Yare due to variation in X and 36% variation are due to other factors. Thus, explained
variations are 64% and unexplained variation are 36%.
Standard error of estimates

In regression, given the value of independent variable, we estimate the value of dependent variable
by using/applying regression equation. To find out an estimate that is 100% accurate is impossible.
If we want to make sure that to what extent the estimates made by us are accurate, then this can be
done with the help of standard error of estimate. By using standard error of estimate, we can check
the reliability of our estimates. Standard error of estimate shows that to what extent the estimated
values by regression line are closer to actual values.
For two regression lines (Regression of X on Y and Regression of Y on X), there are two standard
error of estimates:
I) Standard Error of Estimate of Y on X (S yx)
ii) Standard Error of Estimate of X on Y (S xy)
1) Standard Error of Estimate of Y on X: It is denoted by S yx' Its computation is made by the

following formulae:
First formula . Syx = Σ (Y-_Yc)2

N
Here, Y = Actual values, Yc = Estimated values.
Second formula:
Syx = Σy2-aΣY-bΣXY
`N
Where a and b are to be obtained from normal equations and a=intercept, b=slope of line. Third
formula:

2
Syx=σy 1-r
Where σy =SD of Y; r = coefficient of correlation between X and Y.

The third form is suitable for use when we are given the values of correlation coefficient and
standard deviations.

Spearman’s Rank Correlation Coefficient

This method is applied to measure the association between two variables when only
ordinal (or rank) data are available. In other words, this method is applied in a situation
in which quantitative measure of certain qualitative factors such as judgement, brands
personalities, TV programmes, leadership, colour, taste, cannot be fixed, but individual
observations can be arranged in a definite order (also called rank). The ranking is decided
by using a set of ordinal rank numbers, with 1 for the individual observation ranked first
either in terms of quantity or quality; and n for the individual observation ranked last in a
group of n pairs of observations. Mathematically, Spearman’s rank correlation coefficient
is defined as:
where R = rank correlation coefficient
R1 = rank of observations with respect to first variable
R2 = rank of observations with respect to second variable
d = R1 – R2, difference in a pair of ranks
n = number of paired observations or individuals being ranked
The number ‘6’ is placed in the formula as a scaling device, it ensures that the possible
range of R is from – 1 to 1. While using this method we may come across three types of
cases.
Advantages
• This method is easy to understand and its application is simpler than Pearson’s
method.
• This method is useful for correlation analysis when variables are expressed in
qualitative terms like beauty, intelligence, honesty, efficiency, and so on.
• This method is appropriate to measure the association between two variables if the
data type is at least ordinal scaled (ranked)
• The sample data of values of two variables is converted into ranks either in ascending
order or descending order for calculating degree of correlation between two variables.
Disadvantages
• Values of both variables are assumed to be normally distributed and describing a
linear relationship rather than non-linear relationship.
• A large computational time is required when number of pairs of values of two
variables exceed 30.
• This method cannot be applied to measure the association between two variable
grouped data.
Case 1: When Ranks are Given

When observations in a data set are already arranged in a particular order (rank), take the
differences in pairs of observations to determine d. Square these differences and obtain
the total ∑ d2. Apply, below formula to calculate correlation coefficient
1 − 6∑ D 2/n3-n
Case 2: When Ranks are not Given
When pairs of observations in the data set are not ranked as in Case 1, the ranks are
assigned by taking either the highest value or the lowest value as 1 for both the variable’s
values
Prepared By-Sanjeev Kumar ( Faculty Research Methodology)

Case 3: When Ranks are Equal

While ranking observations in the data set by taking either the highest value or lowest
value as rank 1, we may come across a situation of more than one observations being of
equal size. In such a case the rank to be assigned to individual observations is an average
of the ranks which these individual observations would have got had they differed from
each other. For example, if two observations are ranked equal at third place, then the
average rank of (3 + 4)/2 = 3.5 is assigned to these two observations. Similarly, if three
observations are ranked equal at third place, then the average rank of
(3 + 4 + 5)/3 = 4 is assigned to these three observations.While equal ranks are assigned to
a few observations in the data set, an adjustment is made in the Spearman rank
correlation coefficient formula as given below:
1-6(∑D2+1/12(m3-m)+ 1/12(m3-m)+ 1/12(m3-m)…….)/n3-n
where mi (i = 1, 2, 3, . . .) stands for the number of times an observation is repeated in the

data set for both variables
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Graphic Era University

Research and Manager

Business research can be described as a systematic and organized effort to investigate a

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Manager and Research

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Research can be seen as:

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ORGANIZED in that there is a structure or method in going about doing research. It is a

Some people consider research as a movement, a movement from known to unknown. It is

According to Clifford Woody“Research comprises of defining and redefining problems,

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(ii) To portray accurately the characteristics of a particular individual, situation or a group.

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Importance of Research in Management Decision

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Role &Scope of Research

• if the company lacks adequate personnel resources

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Human Resource Development

Solving Various Operational and Planning Problems of Business and Industry

CRITERION OF GOOD RESEARCH

7. Findings presented unambiguously: Presentation of the data should be comprehensive,

8. Conclusions justified: Conclusions should be confined to those justified by the data

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The research problem

The importance of formulating a research problem

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Sources of research problems

Considerations in selecting a research problem

•Magnitude-you should have sufficient knowledge about the research process to

Availability of data-if your topic entails collection of information from secondary

Ethical issues -Another important consideration in formulating a research problem is the

Steps in formulating Research Problem

Steps 1 Identify a broad field or subject area of interest to you.

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Application Objectives Mode of Inquiry

Pure Research Descriptive Qualitative Research

Prepared By: Sanjeev Kumar(Asstt.Professor)

Prepared By: Sanjeev Kumar(Asstt.Professor)

Prepared By: Sanjeev Kumar(Asstt.Professor)

Brings clarity and focus to your research problem

Improve your methodology

Prepared By:-Sanjeev Kumar (Faculty Management)

Broaden your knowledge base in your research area

Contextualise your findings

Procedure for reviewing the literature

Prepared By:-Sanjeev Kumar (Faculty Management)

1.Search for existing literature

In most libraries, information on books, journals, abstracts and so on is stored on

2.Review the literature selected

Prepared By:-Sanjeev Kumar (Faculty Management)

3.Develop a theoretical framework

4.Develop a conceptual framework

5.Writing up the literature reviewed

Prepared By:-Sanjeev Kumar (Faculty Management)

Prepared By:-Sanjeev Kumar (Faculty Management)

1.Relies on empirical evidence: Truth is established on the basis of evidence.

2. Use of relevant concepts : Concepts are logical constraints or abstractions created