Research Methodology in Commerce
Research Methodology in Commerce
Types of Research
Research is defined as the scientific investigation of phenomena which
includes collection, presentation, analysis and interpretation of facts that
lines an individuals speculation with reality.
The research activity can be classified into different categories. The types
of research are as follows:
Objectives of Research
Uniformity: H.B is not uniform; people dont react in the same manner to
similar situations. Also 1 person may behave differently to same situation
at different time. TF, there is a problem of uniformity
1. Careful and Logical Analysis: The research task given in hand must
be analysed carefully ensuring that every aspect makes logical
sense.
2. Unequivocal definition of terms and concepts: The definitions must
be clear and undeniable. There should be no scope for confusion or
mistakes
3. Data pertinent to the problem: The data collected by the researcher
should be pertinent to the problem at hand. Unnecessary and extra
data shouldnt be given any importance.
4. Classification of data must be done properly: The data must be
classified properly, so as to make it clear and understandable for the
persons analysing it.
5. Expression of Data in quantitative term: When data is expressed in
numerically using mathematical methods, it is easier for people to
understand. The process of measurement is central to quantitative
research as it provides a fundamental connection between empirical
observations and mathematical expressions.
6. Rigorous experiments are conducted:
7. Sound and Logical reasoning: The reasons given by the researcher
must be sound and logical. The reasons must be pertinent to the
given research.
8. Exact conclusion: The final conclusion derived by the researcher
must be precise and exact. It cannot be a vague assumption.
9. Complete elimination of personal equation: While conducting a
research, the researcher must be professional and mustn't let
personal bias or feelings get in the way.
10. Comprehensive report: A comprehensive report is to be made
at the end of the research. It should be clear and understandable to
the reader with all aspects of the research properly mentioned.
Explain the steps or process in Scientific Research
1. Selecting the Research Topic: It is the first and most important step
of research process. Before formulating the research problem, one
must select a proper research problem that needs to be dealt with.
Researching something that has already been done before may be
an attempt in vain and waste of time, effort and labour.
2. Definition of Research Problem: it is the explanation and formulation
of the research problem, the researcher must always note the
following points
1. What is the problem?
2. Why is it a problem?
3. Who faces the problem?
Precise definition of problem helps the researcher to collect
relevant data for solving the problem.
3. Deciding the Objective of the research: The objective of the research
helps the researcher plan and
3. Developing Hypothesis: The researcher should formulate hypothesis.
Hypothesis is an assumption made to test the logical or empirical
consequences. The hypothesis should be formulated on the basis of
insight and knowledge about the problem.
3. Review of Literature: The researcher should take extensive literature
survey relating to the problem. He may consider various
publications such as journals, books, research reports and other
published matter.
3. Deciding Research Design: The researcher must prepare a research
design. It is a logical and systematic plan prepared for conducting a
research study. It is considered a blueprint for collection,
measurement and analysis of data. The research design provides
guidelines regarding the time period, type of data and the area and
respondents from which the data is to be collected.
3. Deciding Sample Design: Since it is not possible to collect data from
every area of research, the researcher must select a sample of
respondents that represent the population.
3. Data Collection: Problem solving so essentially a process of
collecting information. The data can be collected from various
sources, Primary and secondary.
3. Execution of project: The data that is collected is mostly raw and
needs to be processed properly. The steps taken to process the data
involve editing out unwanted and irrelevant data, classification of
data under different categories such as age, gender, area etc. The
final step is to tabulate the data so that it facilitates the analysis and
interpretation of data.
3. Data Analysis: This step involves the interpretation of data to
establish the relationship between information and problem. It
enables to link findings to the problems and arrive at logical
conclusions.
3. Hypothesis Testing: After analysis the researcher should be able to
prove whether or not the research findings support the hypothesis
the claimed earlier or whether they are contrary.
3. Preparation of Report: The research findings and conclusions are
presented with the help of research report. The research report is
divided into 3 parts
a. Preliminary content - It includes title, Letter of authorization,
letter of transmittal and table of contents
b. Main Body - It includes Introduction, findings, limitations,
conclusions and recommendations
c. Conclusion - It includes bibliography and appendix
Hypothesis
Characteristics
Significance:
Types
Sources of Hypothesis
The research design refers to the overall strategy that you choose to
integrate the different components of the study in a coherent and logical
way, thereby, ensuring you will effectively address the research problem;
it constitutes the blueprint for the collection, measurement, and analysis
of data.
Research Design can be broadly classified into 2 groups.
Exploratory Research
Conclusive Research
EXPLORATORY RESEARCH
It is conducted to explore information about the nature or causes of
the research problem. It is conducted when the causes of the research
problem arent known to the researcher. There may be a possibility of a
few different causes of the problem, and the researcher may not know the
exact cause. In such a situation, an exploratory research may be
conducted to find out the most likely causes.
Exploratory research is done to for the following purposes:
To define the problem
To develop a hypothesis
To identify alternate courses of action
To isolate key variable and develop relationships among the variable
for further examination.
To establish priorities for further research
CONCLUSIVE RESEARCH
Conclusive Research is further divided into two subcategories.
1. Descriptive Research
Descriptive research is done to obtain information about certain
aspects of the problem. It may be undertaken for commercial
purposes. A marketer may ask questions such as
Who his customers are?
What do they buy?
Where do they buy it?
When they buy it?
How they buy it?
How do they use the products?
2. Casual Research
Casual Research investigates cause-effect relationship between two
or more variables. It is done for the following reasons
To understand the cause-effect relationship
To focus on the variables or elements those have a greater positive
effect.
To eliminate certain variables or elements having negative effect.
To develop action plans
1. Probability Method
Probability Sampling is also known as random sampling. Probability
means possible chance. Therefore, each element of the population
has a known chance or opportunity of being selected or included in
the sample
1. Simple Random Sampling: It is the most popular method
normally followed to collect research data. It provides every
element or unit an equal chance of being selected. It is
suitable for selecting a small homogenous group. It is further
sub categorized into lottery method and Random Tables.
2. Systematic Sampling: It is a variation of the simple random
method, but the technique is superior. In this method, a
sampling fraction is calculated, a certain number is selected at
random and process continues to select sample size.
Formula: Skip Interval = Population Size / Sample
Size
o Define R Obj.
o Decide Universe
o Select Sampling frame: where you get your samples from,
Telephone directory, reg of members. Must check for validity
o Decision on sampling unit:
o Decision on Sample Size: Depends on time, Funds, Manpower,
nature of R
o Selection of sampling method: Probability or Non probability.
o Prepare Sample plan:
o Sample Selection: Actual selection process to get right ppl as per
Sample plan
o Collection of data
Sampling Errors:
CHAPTER 4: METHODS AND TECHNIQUES OF DATA COLLECTION
PRIMARY DATA
Disadvantages:
Paperwork: P.D. method involves a lot of paperwork. Eg. Survey includes
data collection with the help of questionnaire and processing of data
involves editing, coding, classification etc.
Expensive: PD. Collection methods are expensive as compared to
secondary methods. Eg. Survey method is exp as you need field staff to
go collect data. Salary and perks need to be paid to research staff.
Sampling Errors: it is diff to select proper sample when uni is large.
Sampling errors are more when small sample is selected as it may not
represent properly.
Time consuming: lot of time and effort needed for collection process
such as planning, getting appointments and then conducting interview.
Respondent Bias: Respondents may not give proper answers, may
withhold certain data or give fake data wrt certain aspects such as salary,
taxes, investments.
Interview Bias: possibility, as interviewer may edit questionnaire to fit
his expected responses.
Processing of data: Problems in editing, error in coding, classifications
etc. which affect the quality of research
Problem of Quick decision Making: P.D. may affect quick decision
making esp. when the sample size is large and it takes time to process the
data
SECONDARY DATA
Features:
Recorded Data: is already a recorded and published paper source. Data
has already been collected for another research other than the current
one.
Easy to collect: Readily available in the most economic way.
Quantitative Data: S.D. is called it because it can be used for
substantiating the primary data.
Comprehensive: S.D. is available on every subject even those where
collection of P.D> is difficult. TF, we call it comprehensive in nature.
Sources: S.D. may be collected from Primary Sources or Secondary
Sources.
Relevance: S.D. is readymade info which is meant of general purpose. R
must evaluate the S.D. with reference to accuracy, relevancy and
reliability.
Availability: S.D. is available internally from companys records or
externally from books, magazine and other published works etc.
Less Time Consuming & Less Expensive: S.D. requires less time to
collect the data as compared to primary. Also its less expensive.
Significance:
Less Expensive: no need to prepare & print questionnaire, and no need
of field staff.
Less Time Consuming: coz no need to conduct interviews
Less Processing of Data: is already available in processed form.
Quick Decision: readily available so can be quick.
Supplements Primary data: If needed be, researcher may use S.D.
along with primary data to arrive at decisions.
Less paper work: data is readily available.
Less volume of data: R gets obtain large volume of ready data from
various publication houses around the world.
No Sampling Errors: No question coz already done.
Disadvantages:
1. Problem of Accuracy: One cannot be certain of the genuineness of
the secondary data as it isnt collected first-hand. The data may be
out-dated and may not serve the purpose of the current research
work.
2. Problem of Reliability: Secondary data lacks reliability, Data
accessible over the internet may have various sources and may be
vastly different.
3. Problem of Adequacy: At times the secondary data may be accurate
and reliable, but it may not be sufficient to solve the current
research problems. Researcher cannot depend on secondary data to
solve the problems
4. Lack of In-depth Information: Secondary data may not provide in
depth info to be able to solve a problem.
5. Problem in quality decision making: If the data is inaccurate,
insufficient or unreliable, the secondary data may cause problems in
the process of decision making. Decision making usually takes place
in businesses, and it is always better to take primary data in such a
case to analyse the problems properly
6. Problem of specific data: Secondary data may be more general in
nature than specific. All the data may not be applicable to the
researchers problem as researchers need specific data to solve
specific problems.
7. Unsuitability: Secondary data may not be suitable in all cases. It
maybe of less use in case of commercial research. For business
related problems, researchers need more primary data than
secondary.
8. Problem of Biased information: There may be a possibility of bias in
the secondary data as researchers dont have any control over the
quality of the data. The bias maybe on behalf of the respondents or
that of the researcher.
Methods of collecting Primary Data.
Primary data is the data that is collected fresh for the first time and
happens to be original in character. The method of collecting the data is
usually decided depending on the type of problem that the researcher is
working at. There are mainly 3 types of data:
1. Survey/Interview Method
2. Observation Method
3. Experimentation Method
1. SURVEY/INTERVIEW METHOD
The survey can be a census survey or a sample survey. The entire
population is required to accomplish a census survey. Under the
survey method, data is collected through various types of first hand
interviews.
1. Personal Interview: It is a face to face interaction between the
interviewer and the respondent. The interviewer asks
questions and the respondents answer accordingly. There are
various types of Personal interviews.
1. Formal and Informal: Such type of interviews may or
may not require the interviewer to follow some
formalities such as a prior appointment.
2. Structured and Unstructured: In a structured interview,
the interviewer asks certain questions designed well in
advance. In an unstructured interview, no specific
questionnaire is followed.
3. Individual and Group: In an individual interview, only
one person is interviewed at a time. In case of group
interviews, the questions are asked to a group of
respondents at the same time.
4. General or Specific: In a general interview, the questions
asked maybe general in nature where as in specific
interviews, specific questions relating to certain topics
are asked.
5. Directive and Nondirective: In a directive interview, the
interviewer gives directions to the interviewee to
respond to certain questions. In a nondirective
interview, the respondents can are given freedom to
respond to a certain topic without much questioning on
the interviewer's side.
2. Telephone Interview: under this method, Interviews are
conducted over telephonic conversations. The questions are
asked on the phone and answers are recorded.
3. Mail Survey: A questionnaire is prepared and mailed to the
respondent through post, explaining the purpose of the
questionnaire and a request to complete and return it. The
certainty of response is not guaranteed under this method.
2. OBSERVATION METHOD
The researcher obtains information of the subjects under the study
with the help of observation rather than by asking or interviewing them.
This method needs the researcher to personally observe the behaviour
and study his subjects.
3. EXPERIMENTATION METHOD
The experimentation method is mostly used in the case of scientific
research study; it is done with the help of experimentation to prove the
cause-effect relationship between 2 or more variables.
Internal Sources:
An org can use certain data from its own records to take certain
decision. Eg: Promotion of employees cab be based on performance
appraisal reports. The internal S.D. is collected from internal records such
as
Purchases and Sales records
Debtors and Cr records
Division/Unit wise production or operations records.
External Sources
S.D. can be collected from external sources such as books,
magazines, newspapers, internet and other reports. It can be used for
product designing, pricing, promotion distribution etc . there are various
external sources such as,
i) Government Publications: Central, State and local bodies
produce and publish vast amt of data that can be used for
marketing and research purpose.
(1)Census report: Population report conducted every 10 years
by Registrar general of India. Gives basic demographic of
gender, age, education etc.
(2)Statistics of National Income: published every year by The
Central Statistical Organization. Gives info on Agriculture,
industry, trade, savings, consumptions etc
(3)Industrial Statistics: Published by The Central Statistical
Org and provides info on workers employed, total production
in some industries etc.
(4)Price statistics: Wholesale price index for commodities like
food grain, fuel, power etc.
(5)Other Publications: Includes RBI, Ministry of Finance,
Ministry of Food and Agriculture, Indian Labour bureau,
Planning commission, etc.
ii) Syndicated sources: Private org like Advert agencies, research
firms etc, do regular mkt research. Such data is collected,
analysed and tabulated periodically and sent to subscribers,
sometimes the data is given to non-members against a payment
of fees. These data collection projects are done on contract
basis.
iii) General Publications: includes newspapers, magazines, trade
and professional journals, Professional directories published by
professional bodies like the industrial directory of India ,
publications from United Nations, Specialized libraries, research
projects, etc
Distinguish Points:
Meaning
Methods/Sources
Accuracy
Reliability
Time Factor
Cost Factor
Paperwork
Specific/General
In depth Info
Need for Sample
Respondent Bias
Quality of Decision making
Factors Influencing Data Collection methods:
Time
Cost
Quality of Decision making
Type of research work: Certain type requires primary data, such as
survey or chemical analysis.
Nature of researcher: If R is casual then hell stick to S.D.
Obj of research
Availability of respondents
Availability of research staff
Questionnaire
A set of questions, which acts as an instrument to collect data from
the respondents to a survey or an interview.
Importance:
Relevant data must be collected with help of a proper Q.
Convenience to the respondents aka no time pressure.
Structured and unstructured responses. S.R. main tick karo,
U.R. main write freely.
Qualitative or Quantitative Data: the research can collect both types
of data. Qualitative by unstructured questions. Quantity is possible with
large number of respondents.
Large Coverage: questionnaire enables the researcher to cover a large
area.
Proper Processing: Q can be given code to properly process. Makes
tabulation easy
Easy to alter: If Q are ambiguous or irrelevant, they can be altered.
Sensitive info: can be collected by R through survey
Limitations:
Suitability: works only with literate respondents who have proper
educational bg.
Rate of Response: Incase of mail Questionnaire is low. Unless incentive
isnt offered, many people dont want to participate.
Quality of Data: maynot be reliable and needs critical evaluation;
sometimes respondents dont understand q and answer bullcrap.
Rigid and restricted response: direct answers in questionnaire. Cant
answer properly.
Attitude of Respondents: Casual attitude and lack of responsibility
towards research
Personal touch: Q is inapt where obj of survey needs a good deal of
explanation.
Verification of facts: Answers cant be verified again.
Types of Questionnaire
i) Structured Q: Which is regimented and designed to elicit
detailed and accurate info under given titles. Answers are given
with high precision without any vagueness or ambiguity. S.Q. is
classified into:
(1)Close form questions: Pick one alternative types. Yes or no
types.
(2)Open ended: Respondent can write as much and as detailed
as he likes expressing his opinion.
ii) Unstructured Q: Simple Q, without segmentation or subdivision
it is more flexible and more info can be collected.
iii) Codified Questionnaire: Expected answers are given in code
numbers. Respondent has to tick or circle answer. Convenient for
processing and easy understanding.
iv) Uncodified Q: Simple Q, without any codes, direct Q.
v) Pictorial questionnaire: Answers are given in pictorial form.
Better for understanding of the illiterate.
Essentials in a Questionnaire
Relevant Q
Clarity
Type of Q: close form or open ended.
Logical Sequence
Physical Appearance
Pretesting of Questionnaire.