Master of Business Administration-MBA Semester 3

ASSIGNMENT SET – 1

RESEARCH METHODOLOGY - MB0034

Question 1: What do you mean by research? Explain its significance in social and business
sciences.
Answer 1:
Research simply means a search for facts – answers to questions and solutions to problems. It
is a purposive investigation. It is an organized inquiry. It seeks to find explanations to
unexplained phenomenon to clarify the doubtful facts and to correct the misconceived facts.
The search for facts may be made through either:
 Arbitrary (or unscientific) Method: It’s a method of seeking answers to question
consists of imagination, opinion, blind belief or impression. E.g. it was believed that the
shape of the earth was flat; a big snake swallows sun or moon causing solar or lunar
eclipse. It is subjective; the finding will vary from person to person depending on his
impression or imagination. It is vague and inaccurate. Or
 Scientific Method: this is a systematic rational approach to seeking facts. It eliminates the
drawbacks of the arbitrary method. It is objective, precise and arrives at conclusions on
the basis of verifiable evidences.
Therefore, search of facts should be made by scientific method rather than by arbitrary
method. Then only we may get verifiable and accurate facts. Hence research is a systematic
and logical study of an issue or problem or phenomenon through scientific method.
Young defines Research as “a scientific undertaking which, by means of logical and
systematic techniques, aims to:
a)    Discover of new facts or verify and test old facts,
b)    Analyze their sequences, interrelationships and causal explanations,
c)    Develop new scientific tools, concepts and theories which would facilitate reliable
and valid study of human behaviour.
d)    Kerlinger defines research as a “systematic, controlled, empirical and critical
investigation of hypothetical propositions about the presumed relations among natural
phenomena.

Significance of Research in Social and Business Sciences

According to a famous Hudson Maxim, “All progress is born of inquiry. Doubt is often better
than overconfidence, for it leads to inquiry, and inquiry leads to invention”. It brings out the
significance of research, increased amounts of which makes progress possible. Research
encourages scientific and inductive thinking, besides promoting the development of logical
habits of thinking and organization.
The role of research in applied economics in the context of an economy or business is greatly
increasing in modern times. The increasingly complex nature of government and business has
raised the use of research in solving operational problems. Research assumes significant role
in formulation of economic policy, for both the government and business. It provides the basis
for almost all government policies of an economic system. Government budget formulation,
for example, depends particularly on the analysis of needs and desires of the people, and the
availability of revenues, which requires research. Research helps to formulate alternative
policies, in addition to examining the consequences of these alternatives. Thus, research also
facilitates the decision making of policy-makers, although in itself it is not a part of research.
In the process, research also helps in the proper allocation of a country’s scare resources.
Research is also necessary for collecting information on the social and economic structure of
an economy to understand the process of change occurring in the country. Collection of
statistical information though not a routine task, involves various research problems.
Therefore, large staff of research technicians or experts is engaged by the government these
days to undertake this work. Thus, research as a tool of government economic policy
formulation involves three distinct stages of operation which are as follows:
 Investigation of economic structure through continual compilation of facts
 Diagnoses of events that are taking place and the analysis of the forces underlying
them; and
 The prognosis, i.e., the prediction of future developments
Research also assumes a significant role in solving various operational and planning problems
associated with business and industry. In several ways, operations research, market research,
and motivational research are vital and their results assist in taking business decisions. Market
research is refers to the investigation of the structure and development of a market for the
formulation of efficient policies relating to purchases, production and sales. Operational
research relates to the application of logical, mathematical, and analytical techniques to find
solution to business problems such as cost minimization or profit maximization, or the
optimization problems. Motivational research helps to determine why people behave in the
manner they do with respect to market characteristics. More specifically, it is concerned with
the analyzing the motivations underlying consumer behaviour. All these researches are very
useful for business and industry, which are responsible for business decision making.
Research is equally important to social scientist for analyzing social relationships and seeking
explanations to various social problems. It gives intellectual satisfaction of knowing things for
the sake of knowledge. It also possesses practical utility for the social scientist to gain
knowledge so as to be able to do something better or in a more efficient manner. This,
research in social sciences is concerned with both knowledge for its own sake, and knowledge
for what it can contribute to solve practical problems.
Question 2: What is meant by research problem? And what are the characteristics of a good
research problem?
Answer 2:
Research really begins when the researcher experiences some difficulty, i.e., a problem
demanding a solution within the subject-are of his discipline. This general area of interest,
however, defines only the range of subject-matter within which the researcher would see and
pose a specific problem for research. Personal values play an important role in the selection of
a topic for research. Social conditions do often shape the preference of investigators in a
subtle and imperceptible way.
The formulation of the topic into a research problem is, really speaking the first step in a
scientific enquiry. A problem in simple words is some difficulty experienced by the
researcher in a theoretical or practical situation. Solving this difficulty is the task of research.

R.L. Ackoffs analysis affords considerable guidance in identifying problem for research. He
visualizes five components of a problem.
1. Research-consumer: There must be an individual or a group which experiences some
difficulty.
2. Research-consumer’s Objectives: The research-consumer must have available,
alternative means for achieving the objectives he desires.
3. Alternative Means to Meet the Objectives: The research-consumer must have
available, alternative means for achieving the objectives he desires.
4. Doubt in Regard to Selection of Alternatives: The existence of alternative courses of
action in not enough; in order to experience a problem, the research consumer must
have some doubt as to which alternative to select.
5. There must be One or More Environments to which the Difficulty or Problem
Pertains: A change in environment may produce or remove a problem. A research-
consumer may have doubts as to which will be the most efficient means in one
environment but would have no such doubt in another.

Horton and Hunt have given following characteristics of scientific research:

1. Verifiable evidence: That is factual observations which other observers can see and
check.
2. Accuracy: That is describing what really exists. It means truth or correctness of a
statement or describing things exactly as they are and avoiding jumping to
unwarranted conclusions either by exaggeration or fantasizing.
3. Precision: That is making it as exact as necessary, or giving exact number or
measurement. This avoids colourful literature and vague meanings.
4. Systematization: That is attempting to find all the relevant data, or collecting data in a
systematic and organized way so that the conclusions drawn are reliable. Data based
on casual recollections are generally incomplete and give unreliable judgments and
conclusions.
5. Objectivity: That is free being from all biases and vested interests. It means
observation is unaffected by the observer’s values, beliefs and preferences to the
extent possible and he is able to see and accept facts as they are, not as he might wish
them to be.
6. Recording: That is jotting down complete details as quickly as possible. Since human
memory is fallible, all data collected are recorded.
7. Controlling conditions: That is controlling all variables except one and then
attempting to examine what happens when that variable is varied. This is the basic
technique in all scientific experimentation – allowing one variable to vary while
holding all other variables constant.
8. Training investigators: That is imparting necessary knowledge to investigators to
make them understand what to look for, how to interpret in and avoid inaccurate data
collection.
Question 3: What is hypothesis? Examine the procedures for testing hypothesis.

Answer 3:
A hypothesis is an assumption about relations between variables. It is a tentative explanation
of the research problem or a guess about the research outcome. Before starting the research,
the researcher has a rather general, diffused, even confused notion of the problem. It may take
long time for the researcher to say what questions he had been seeking answers to. Hence, an
adequate statement about the research problem is very important. What is a good problem
statement? It is an interrogative statement that asks: what relationship exists between two or
more variables? It then further asks questions like: Is A related to B or not? How are A and B
related to C? Is A related to B under conditions X and Y? Proposing a statement pertaining to
relationship between A and B is called a hypothesis.

 Procedure for Testing Hypothesis

To test a hypothesis means to tell (on the basis of the data researcher has collected) whether or
not the hypothesis seems to be valid. In hypothesis testing the main question is: whether the
null hypothesis or not to accept the null hypothesis? Procedure for hypothesis testing refers to
all those steps that we undertake for making a choice between the two actions i.e., rejection
and acceptance of a null hypothesis. The various steps involved in hypothesis testing are
stated below:

1) Making a Formal Statement

The step consists in making a formal statement of the null hypothesis (H o) and also of the
alternative hypothesis (Ha). This means that hypothesis should clearly state, considering the
nature of the research problem. For instance, Mr. Mohan of the Civil Engineering Department
wants to test the load bearing capacity of an old bridge which must be more than 10 tons, in
that case he can state his hypothesis as under:
Null hypothesis HO: µ =10 tons
Alternative hypothesis Ha: µ >10 tons
Take another example. The average score in an aptitude test administered at the national level
is 80. To evaluate a state’s education system, the average score of 100 of the state’s students
selected on the random basis was 75. The state wants to know if there is a significance
difference between the local scores and the national scores. In such a situation the hypothesis
may be state as under:
Null hypothesis HO: µ =80
Alternative hypothesis Ha: µ ≠ 80
The formulation of hypothesis is an important step which must be accomplished with due care
in accordance with the object and nature of the problem under consideration. It also indicates
whether we should use a tailed test or a two tailed test. If H a is of the type greater than, we use
alone tailed test, but when Ha is of the type “whether greater or smaller” then we use a two-
tailed test.
2) Selecting a Significant Level
The hypothesis is tested on a pre-determined level of significance and such the same should
have specified. Generally, in practice, either 5% level or 1% level is adopted for the purpose.
The factors that affect the level of significance are:
 The magnitude of the difference between sample ;
 The size of the sample;
 The variability of measurements within samples;
 Whether the hypothesis is directional or non – directional (A directional hypothesis is
one which predicts the direction of the difference between, say, means). In brief, the
level of significance must be adequate in the context of the purpose and nature of
enquiry.

3) Deciding the Distribution to Use

After deciding the level of significance, the next step in hypothesis testing is to determine the
appropriate sampling distribution. The choice generally remains between distribution and the t
distribution. The rules for selecting the correct distribution are similar to those which we have
stated earlier in the context of estimation.

4) Selecting A Random Sample & Computing An Appropriate Value

Another step is to select a random sample(S) and compute an appropriate value from the
sample data concerning the test statistic utilizing the relevant distribution. In other words,
draw a sample to furnish empirical data.

5) Calculation of the Probability

One has then to calculate the probability that the sample result would diverge as widely as it
has from expectations, if the null hypothesis were in fact true.

6) Comparing the Probability

Yet another step consists in comparing the probability thus calculated with the specified value
for α, the significance level. If the calculated probability is equal to smaller than α value in
case of one tailed test (and α/2 in case of two-tailed test), then reject the null hypothesis (i.e.
accept the alternative hypothesis), but if the probability is greater then accept the null
hypothesis. In case we reject H0 we run a risk of (at most level of significance) committing an
error of type I, but if we accept H0, then we run some risk of committing error type II.
Flow Diagram for Testing Hypothesis
Question 4: Write an essay on the need for research design and explain the principles of
experimental designs.

Answer 4:
The need for the methodologically designed research:
a)- In many a research inquiry, the researcher has no idea as to how accurate the results of his
study ought to be in order to be useful. Where such is the case, the researcher has to determine
how much inaccuracy may be tolerated. In a quite few cases he may be in a position to know
how much inaccuracy his method of research will produce. In either case he should design his
research if he wants to assure himself of useful results.
b)- In many research projects, the time consumed in trying to ascertain what the data mean
after they have been collected is much greater than the time taken to design a research which
yields data whose meaning is known as they are collected.
c)- The idealized design is concerned with specifying the optimum research procedure that
could be followed were there no practical restrictions.
Professor Fisher has enumerated three principles of experimental designs:
1. The principle of replication:
The experiment should be reaped more than once. Thus, each treatment is applied in many
experimental units instead of one. By doing so, the statistical accuracy of the experiments is
increased. For example, suppose we are to examine the effect of two varieties of rice. For this
purpose we may divide the field into two parts and grow one variety in one part and the other
variety in the other part. We can compare the yield of the two parts and draw conclusion on
that basis. But if we are to apply the principle of replication to this experiment, then we first
divide the field into several parts, grow one variety in half of these parts and the other variety
in the remaining parts. We can collect the data yield of the two varieties and draw conclusion
by comparing the same. The result so obtained will be more reliable in comparison to the
conclusion we draw without applying the principle of replication. The entire experiment can
even be repeated several times for better results. Consequently replication does not present
any difficulty, but computationally it does. However, it should be remembered that replication
is introduced in order to increase the precision of a study; that is to say, to increase the
accuracy with which the main effects and interactions can be estimated.

2.    The principle of randomization:

It provides protection, when we conduct an experiment, against the effect of extraneous
factors by randomization. In other words, this principle indicates that we should design or
plan the ‘experiment in such a way that the variations caused by extraneous factors can all be
combined under the general heading of “chance”. For instance if we grow one variety of rice
say in the first half of the parts of a field and the other variety is grown in the other half, then
it is just possible that the soil fertility may be different in the first half in comparison to the
other half. If this is so, our results would not be realistic.
 In such a situation, we may assign the variety of rice to be grown in different parts of the
field on the basis of some random sampling technique i.e., we may apply randomization
principle and protect ourselves against the effects of extraneous factors. As such, through the
application of the principle of randomization, we can have a better estimate of the
experimental error.

3. Principle of local control:

It is another important principle of experimental designs. Under it the extraneous factors, the
known source of variability, is made to vary deliberately over as wide a range as necessary
and this needs to be done in such a way that the variability it causes can be measured and
hence eliminated from the experimental error. This means that we should plan the experiment
in a manner that we can perform a two-way analysis of variance, in which the total variability
of the data is divided into three components attributed to treatments, the extraneous factor and
experimental error. In other words, according to the principle of local control, we first divide
the field into several homogeneous parts, known as blocks, and then each such block is
divided into parts equal to the number of treatments. Then the treatments are randomly
assigned to these parts of a block. In general, blocks are the levels at which we hold an
extraneous factors fixed, so that we can measure its contribution to the variability of the data
by means of a two-way analysis of variance. In brief, through the principle of local control we
can eliminate the variability due to extraneous factors from the experimental error.
Question 5: Distinguish between primary and secondary of data collection. Explain the
features, uses, advantages and limitations of secondary data. Which is the best way of
collecting the data for research “primary or secondary”? Support your answer.

Answer 5:

Primary Data:
Primary sources are original sources from which the researcher directly collects data that have
not been previously collected e.g.., collection of data directly by the researcher on brand
awareness, brand preference, brand loyalty and other aspects of consumer behaviour from a
sample of consumers by interviewing them,. Primary data are first hand information collected
through various methods such as observation, interviewing, mailing etc.
Secondary Data:
These are sources containing data which have been collected and compiled for another
purpose. The secondary sources consists of readily compendia and already compiled
statistical statements and reports whose data may be used by researchers for their studies e.g.,
census reports , annual reports and financial statements of companies, Statistical statement,
Reports of Government Departments, Annual reports of currency and finance published by
the Reserve Bank of India, Statistical statements relating to Co-operatives and Regional
Banks, published by the NABARD, Reports of the National sample survey Organization,
Reports of trade associations, publications of international organizations such as UNO, IMF,
World Bank, ILO, WHO, etc., Trade and Financial journals newspapers etc.
Secondary sources consist of not only published records and reports, but also unpublished
records. The latter category includes various records and registers maintained by the firms and
organizations, e.g., accounting and financial records, personnel records, register of members,
minutes of meetings, inventory records etc.

 Features of Secondary Sources

Though secondary sources are diverse and consist of all sorts of materials, they have certain
common characteristics.
First, they are readymade and readily available, and do not require the trouble of constructing
tools and administering them.
Second, they consist of data which a researcher has no original control over collection and
classification. Both the form and the content of secondary sources are shaped by others.
Clearly, this is a feature which can limit the research value of secondary sources.
Finally, secondary sources are not limited in time and space. That is, the researcher using
them need not have been present when and where they were gathered.

 
 Use of Secondary Data
The second data may be used in three ways by a researcher. First, some specific information
from secondary sources may be used for reference purpose. For example, the general
statistical information in the number of co-operative credit societies in the country, their
coverage of villages, their capital structure, volume of business etc., may be taken from
published reports and quoted as background information in a study on the evaluation of
performance of cooperative credit societies in a selected district/state.
Second, secondary data may be used as bench marks against which the findings of research
may be tested, e.g., the findings of a local or regional survey may be compared with the
national averages; the performance indicators of a particular bank may be tested against the
corresponding indicators of the banking industry as a whole; and so on.
Finally, secondary data may be used as the sole source of information for a research project.
Such studies as securities Market Behaviour, Financial Analysis of companies, Trade in credit
allocation in commercial banks, sociological studies on crimes, historical studies, and the like,
depend primarily on secondary data. Year books, statistical reports of government
departments, report of public organizations of Bureau of Public Enterprises, Censes Reports
etc, serve as major data sources for such research studies.

 Advantages of Secondary Data

Secondary sources have some advantages:
1. Secondary data, if available can be secured quickly and cheaply. Once their source of
documents and reports are located, collection of data is just matter of desk work. Even the
tediousness of copying the data from the source can now be avoided, thanks to Xeroxing
facilities.
2. Wider geographical area and longer reference period may be covered without much cost.
Thus, the use of secondary data extends the researcher’s space and time reach.
3. The use of secondary data broadens the data base from which scientific generalizations can
be made.
4. Environmental and cultural settings are required for the study.
5. The use of secondary data enables a researcher to verify the findings bases on primary data.
It readily meets the need for additional empirical support. The researcher need not wait the
time when additional primary data can be collected.

 Disadvantages of Secondary Data

The use of a secondary data has its own limitations.
1. The most important limitation is the available data may not meet our specific needs. The
definitions adopted by those who collected those data may be different; units of measure may
not match; and time periods may also be different.
2. The available data may not be as accurate as desired. To assess their accuracy we need to
know how the data were collected.
3. The secondary data are not up-to-date and become obsolete when they appear in print,
because of time lag in producing them. For example, population census data are published
tow or three years later after compilation, and no new figures will be available for another ten
years.
4. Finally, information about the whereabouts of sources may not be available to all social
scientists. Even if the location of the source is known, the accessibility depends primarily on
proximity. For example, most of the unpublished official records and compilations are located
in the capital city, and they are not within the easy reach of researchers based in far off places.
Question 6: Describe interview method of collecting data. State the conditions under which it
is considered most suitable. You have been assigned to conduct a survey on the reading habits
of the house wife in the middle class family. Design a suitable questionnaire consisting of 20
questions you propose to use in the industry.

Answer 6:

1).Structured Directive Interview:

This is an interview made with a detailed standardized schedule. The same questions are put
to all the respondents and in the same order. Each question is asked in the same way in each
interview, promoting measurement reliability. This type of interview is used for large-scale
formalized surveys.
Advantages:
This interview has certain advantages. First, data from one interview to the next one are easily
comparable. Second, recording and coding data do not pose any problem, and greater
precision is achieved. Lastly, attention is not diverted to extraneous, irrelevant and time
consuming conversation.
Limitation:
However, this type of interview suffers from some limitations. First, it tends to lose the
spontaneity of natural conversation. Second, the way in which the interview is structured may
be such that the respondent’s views are minimized and the investigator’s own biases regarding
the problem under study are inadvertent introduced. Lastly, the scope for exploration is
limited.

2).Unstructured or Non-Directive Interview:

This is the least structured one. The interviewer encourages the respondent to talk freely about
a give topic with a minimum of prompting or guidance. In this type of interview, a detailed
pre-planned schedule is not used. Only a broad interview guide is used. The interviewer
avoids channelling the interview directions. Instead he develops a very permissive
atmosphere. Questions are not standardized and ordered in a particular way.
This interviewing is more useful in case studies rather than in surveys. It is particularly useful
in exploratory research where the lines of investigations are not clearly defined. It is also
useful for gathering information on sensitive topics such as divorce, social discrimination,
class conflict, generation gap, drug-addiction etc. It provides opportunity to explore the
various aspects of the problem in an unrestricted manner.
Advantages:
This type of interview has certain special advantages. It can closely approximate the
spontaneity of a natural conversation. It is less prone to interviewer’s bias. It provides greater
opportunity to explore the problem in an unrestricted manner.
Limitations:
Though the unstructured interview is a potent research instrument, it is not free from
limitations. One of its major limitations is that the data obtained from one interview is not
comparable to the data from the next. Hence, it is not suitable for surveys. Time may be
wasted in unproductive conversations. By not focusing on one or another facet of a problem,
the investigator may run the risk of being led up blind ally. As there is no particular order or
sequence in this interview, the classification of responses and coding may required more time.
This type of informal interviewing calls for greater skill than the formal survey interview.

3).Focused Interview:
This is a semi-structured interview where the investigator attempts to focus the discussion on
the actual effects of a given experience to which the respondents have been exposed. It takes
place with the respondents known to have involved in a particular experience, e.g, seeing a
particular film, viewing a particular program on TV., involved in a train/bus accident, etc. The
situation is analyzed prior to the interview. An interview guide specifying topics relating to
the research hypothesis used. The interview is focused on the subjective experiences of the
respondent, i.e., his attitudes and emotional responses regarding the situation under study. The
focused interview permits the interviewer to obtain details of personal reactions, specific
emotions and the like.
 Merits:
This type of interview is free from the inflexibility of formal methods, yet gives the interview
a set form and insured adequate coverage of all the relevant topics. The respondent is asked
for certain information, yet he has plenty of opportunity to present his views. The interviewer
is also free to choose the sequence of questions and determine the extent of probing,

4).Clinical Interview:
This is similar to the focused interview but with a subtle difference. While the focused
interview is concerned with the effects of specific experience, clinical interview is concerned
with broad underlying feelings or motivations or with the course of the individual’s life
experiences.
The ‘personal history’ interview used in social case work, prison administration, psychiatric
clinics and in individual life history research is the most common type of clinical interview.
The specific aspects of the individual’s life history to be covered by the interview are
determined with reference to the purpose of the study and the respondent is encouraged to talk
freely about them.
5).Depth Interview:
This is an intensive and searching interview aiming at studying the respondent’s opinion,
emotions or convictions on the basis of an interview guide. This requires much more training
on inter-personal skills than structured interview. This deliberately aims to elicit unconscious
as well as extremely personal feelings and emotions.
This is generally a lengthy procedure designed to encourage free expression of affectively
charged information. It requires probing. The interviewer should totally avoid advising or
showing disagreement. Of course, he should use encouraging expressions like “uh-huh” or “I
see” to motivate the respondent to continue narration. Some times the interviewer has to face
the problem of affections, i.e. the respondent may hide expressing affective feelings. The
interviewer should handle such situation with great care.
1. Start the interview. Carry it on in an informal and natural conversational style.
2. Ask all the applicable questions in the same order as they appear on the schedule without
any elucidation and change in the wording. Ask all the applicable questions listed in the
schedule. Do not take answers for granted.
3. If interview guide is used, the interviewer may tailor his questions to each respondent,
covering of course, the areas to be investigated.
4. Know the objectives of each question so as to make sure that the answers adequately
satisfy the question objectives.
5. If a question is not understood, repeat it slowly with proper emphasis and appropriate
explanation, when necessary.
6. Talk all answers naturally, never showing disapproval or surprise. When the respondent
does not meet the interruptions, denial, contradiction and other harassment, he may feel
free and may not try to withhold information. He will be motivated to communicate when
the atmosphere is permissive and the listener’s attitude is non judgmental and is genuinely
absorbed in the revelations.
7. Listen quietly with patience and humility. Give not only undivided attention, but also
personal warmth. At the same time, be alert and analytic to incomplete, non specific and
inconsistent answers, but avoid interrupting the flow of information. If necessary, jot
down unobtrusively the points which need elaboration or verification for later and timelier
probing. The appropriate technique for this probing is to ask for further clarification in
such a polite manner as “I am not sure, I understood fully, is this….what you meant?”
8. Neither argue nor dispute.
9. Show genuine concern and interest in the ideas expressed by the respondent; at the same
time, maintain an impartial and objective attitude.
10. Should not reveal your own opinion or reaction. Even when you are asked of your views,
laugh off the request, saying “Well, your opinions are more important than mine.”
11. At times the interview “runs dry” and needs re-stimulation. Then use such expressions as
“Uh-huh” or “That interesting” or “I see” “can you tell me more about that?” and the like.
12. When the interviewee fails to supply his reactions to related past experiences, represent
the stimulus situation, introducing appropriate questions which will aid in revealing the
past. “Under what circumstances did such and such a phenomenon occur?” or “How did
you feel about it and the like.
13. At times, the conversation may go off the track. Be alert to discover drifting, steer the
conversation back to the track by some such remark as, “you know, I was very much
interested in what you said a moment ago. Could you tell me more about it?”
14. When the conversation turns to some intimate subjects, and particularly when it deals with
crises in the life of the individual, emotional blockage may occur. Then drop the subject
for the time being and pursue another line of conversation for a while so that a less direct
approach to the subject can be made later.
15. When there is a pause in the flow of information, do not hurry the interview. Take it as a
matter of course with an interested look or a sympathetic half-smile. If the silence is too
prolonged, introduce a stimulus saying “You mentioned that… What happened then?”