PGDM Business Research Methods PDF

Business Research Methods Unit 3: Research Design II Measurement and Data  Concept of Data Data refers to information that is collected, observed, or generated to validate findings, support conclusions, or answer specific questions. It forms the backbone of the research p...

Business Research Methods Unit 3: Research Design II Measurement and Data  Concept of Data Data refers to information that is collected, observed, or generated to validate findings, support conclusions, or answer specific questions. It forms the backbone of the research process, enabling researchers to analyze, interpret, and build knowledge.  Types of Data Types of Data Primary Data Secondary Data Decision Alternatives: Only Primary Data Only Secondary Data Both Primary and Secondary Data  Secondary Data Characteristics: Second Hand Data: Collected by Somebody Else Data Exist or Available in some or the other Form Processed Data: Further analysis is possible Definition: Secondary data exist in some or the other  Secondary Data Advantages: Saves Time Saves Money Saves Manpower Saves Efforts Disadvantages: May not be Correct/Accurate/Reliable May not be Current May not be Complete/Adequate/Sufficient May not be Relevant/Consistent May not be in Suitable Form  Secondary Data Applications: Identify the problem Refine the problem Formulate hypothesis Gain insight into the topic Decide the appropriate research design  Primary Data Characteristics: First Hand Data: Collected by Researcher Data is collected by going in the field or through an e-platform. Raw Data: Needs Analysis Definition: Primary data is the data collected afresh by researcher for the specific purpose of solving the problem.  Primary Data Advantages: Correct/Accurate/Reliable Current Complete/Adequate/ Sufficient Relevant/Consistent Suitable Form Disadvantages: Requires more time Requires more money Requires more manpower Requires more efforts Difficult collection process  Sources of Data Meaning: Source of data means from where or from whom researcher is going to get data. Decide: Sources of Primary Data Sources of Secondary Data  Sources of Secondary Data Internal Sources: Data available within the organisation External Sources: Data available outside the organisation  Sources of Secondary Data  Internal Sources: Data and Reports of Marketing Department Finance Department Human Resources Department Production Department Materials Department etc.  Sources of Secondary Data  External Sources: Published Material: o Newspaper o Magazine o Research Journals o Directories o Dictionaries o Encyclopedias o Handbooks o Government Records etc. Syndicated Services of Research Agencies Computerised Databases  Sources of Secondary Data  World Wide Web (WWW): Search Process Select a search engine Determine your search options Construct a search query and enter your search term/s Save results of your search Supplement your results with information from non-web sources  Sources of Primary Data Customers Intermediaries Suppliers Employees etc.  Measurement and Scaling Measurement: Process of assigning number or symbol to a characteristic of an object according to certain predetermined rule. o Object: Table o Characteristic: Length o Output: 4 Feet Scale: Instrument or Continuum used for Measurement Scaling: Process of Designing a Scale  What is Measured? Characteristics or Properties of Objects Objects include: o Concepts having physical existence o Abstract concepts not having physical existence Characteristics include: o Physical Properties: Length etc. o Psychological Properties: Perception, attitude etc. o Social Properties: Leadership, Team Spirit etc. categorical data (qualitative or  Scales scales of measurement can be considered in terms of their mathematical properties. Measurement scale is an important part of data collection, analysis, and presentation. A scale is a device or an object used to measure or quantify any event or another object.  Level of measurement, also known as scale of measurement, refers to the process of categorizing data based on the characteristics and properties of the data. It is important in statistics because it helps determine the appropriate statistical methods and tests that can be used to analyze the data.  Properties of Measurement Identity: Identity refers to each value having a unique meaning. Magnitude: Magnitude means that the values have an ordered relationship to one another, so there is a specific order to the variables.  Properties of Measurement Equal intervals: Equal intervals mean that data points along the scale are equal, so the difference between data points one and two will be the same as the difference between data points five and six. A minimum value of zero: A minimum value of zero means the scale has a true zero point. Degrees, for example, can fall below zero and still have meaning. But if you weigh  Levels of Measurement Nominal Scale Ordinal Scale Interval Scale Ratio Scale  Categorical Data In general, categorical data has values and observations which can be sorted into categories or groups. The best way to represent these data is bar graphs and pie charts. Categorical data are further classified into two types namely, Nominal Data Ordinal Data  Categorical data or Qualitative data consist of categorical values or variables, where the data are represented in labelled or given a name. Such as the breed of a dog, colour of the car. Numerical data or Quantitative data comprising numbers or numerical values to represent the data, such as height, weight, age of a person  Scaling https://www.youtube.com/watch?v=5 Yh-9xdJzAs  Nominal Scale A nominal scale is the 1st level of measurement scale in which the numbers serve as “tags” or “labels” to classify or identify the objects. A nominal scale usually deals with the non-numeric variables or the numbers that do not have any value.  Characteristics of Nominal Scale A nominal scale variable is classified into two or more categories. In this measurement mechanism, the answer should fall into either of the classes. It is qualitative. The numbers are used here to identify the objects. The numbers don’t define the object characteristics. The only permissible aspect of numbers in the nominal scale is “counting.”  Nominal Scale It is the most basic/primitive scale. Numbers are assigned to objects to identify and classify them. Numbers assigned serve only as label or tag. Numbers assigned do not have any meaning. A scale whose numbers serve only as labels or tags for identifying and classifying objects. When used for identification, there is a strict one-to-one correspondence between the numbers and the objects.  Ordinal Scale The ordinal scale is the 2nd level of measurement that reports the ordering and ranking of data without establishing the degree of variation between them. Ordinal represents the “order.” Ordinal data is known as qualitative data or categorical data. It can be grouped, named and also ranked.  Characteristics of the Ordinal Scale The ordinal scale shows the relative ranking of the variables It identifies and describes the magnitude of a variable Along with the information provided by the nominal scale, ordinal scales give the rankings of those variables The difference between the rank or orders are not known. A ranking scale in which numbers are assigned to objects to indicate the relative extent to which some characteristic is possessed. Thus it is possible to determine whether an object has more or less of a characteristic than some other object.  Ordinal Scale Ordinal Scale is also know as ranking scale. Numbers are assigned to objects to place them in order. Numbers assigned do have some meaning. Numbers assigned indicate greater than or less than or equal to kind of meaning. It indicates relative position of the object as compared to others. Interval/distance between objects is unequal. Example: Rank Order Scale  Interval Scale The interval scale is the 3rd level of measurement scale. It is defined as a quantitative measurement scale in which the difference between the two variables is meaningful. In other words, the variables are measured in an exact manner, not as in a relative way in which the presence of zero is arbitrary.  Characteristics of Interval Scale: The interval scale is quantitative as it can quantify the difference between the values It allows calculating the mean and median of the variables To understand the difference between the variables, you can subtract the values between the variables The interval scale is the preferred scale in Statistics as it helps to assign any numerical values to arbitrary assessment such as feelings.  Interval Scale Interval Scale is better than ordinal scale. It incorporates equality of interval. Interval between adjacent scale values is equal or constant Numbers assigned do have meaning. Interval scale allows comparison between objects. It has arbitrary/assumed/ not real origin or zero. Examples: Celsius/Fahrenheit (Likert scales/Semantic Differential scaling)  Ratio Scale The ratio scale is the 4th level of measurement scale, which is quantitative. It is a type of variable measurement scale. It allows researchers to compare the differences or intervals. The ratio scale has a unique feature. It possesses the character of the origin or zero points.  Characteristics of Ratio Scale: Ratio scale has a feature of absolute zero It doesn’t have negative numbers, because of its zero-point feature It affords unique opportunities for statistical analysis. The variables can be orderly added, subtracted, multiplied, divided. Mean, median, and mode can be calculated using the ratio scale. Ratio scale has unique and useful properties. One such feature is that it allows unit conversions like kilogram – calories, gram – calories, etc.  Ratio Scale Ratio Scale is better than Interval Scale. (having all the characteristics of the three scales) It is most perfect scale. It has absolute or real origin or zero. Numbers assigned do have meaning All statistical tools can be used for data analysis Examples: Scale to measure Length, Weight, Sales, Stock, Debtors, Profit etc.  Attitude Scales Management/Business Research is a social research. Data is collected from people about their behaviour. Behaviour is influenced by attitude Attitude is measured Attitude: A Mental State used by an individuals to structure the way they perceive their environment and guide the way they respond to it. Components of Attitude: Knowledge/Cognitive  Attitude Scales Commonly used Attitude Scales: Ranking Scales: Comparative Scales Rating Scales: Non-Comparative Scales  Rating Scales These are non-comparative scales. The objects are not compared with other objects. In rating scale each object is measured independently on a scale. Each object is evaluated separately at a time. Also called monadic scales.  Rating Scales 1) Simple Category Scale or Dichotomous Scale Two Response Options below Question Sample Question: I plan to purchase laptop in the next 12 months. o Yes o No 2) Multiple Choice Single Response Scale: More than two response options and single response selection Sample Question: In which Institute you are studying MBA in Pune city? o RIIM o MIT-WPU  Rating Scales 3) Multiple Choice Multiple Response Scale: More than two response options and one or multiple response option selection Sample Question: From which source you got information about the mobile? o TV Advertisement o Radio Advertisement o Newspaper Advertisement o Magazine Advertisement o Outdoor Advertisement o Internet o Friend  Rating Scales 4) Rating Scale to measure Performance or Quality: It is a Multiple Choice Single Response Scale used to measure performance or quality or product or service. Sample Question: Rate the quality of service provided by JW Marriot? o Excellent o Good o Average o Below Average  Rating Scales 5) Rating Scale to measure Satisfaction: It is a Multiple Choice Single Response Scale used to measure satisfaction of respondent about object. Sample Question: Indicate your satisfaction about services provided by JW Marriot? o Very Satisfied o Satisfied o Neutral o Dissatisfied o Very Dissatisfied  Rating Scales 6) Rating Scale to measure Liking: It is a Multiple Choice Single Response Scale used to measure liking of respondent about object. Sample Question: Indicate your liking about Flipkart? o Like Very Much o Like Somewhat o Neutral o Dislike Somewhat o Dislike Very Much  Rating Scales 7) Rating Scale to measure Frequency: It is a Multiple Choice Single Response Scale used to measure the frequency of respondents doing something. Sample Question: How frequently do you go to the library? o Very Often o Often o Sometimes o Rarely o Never  Rating Scales 8) Rating Scale to measure Purchase Intention: It is a Multiple Choice Single Response Scale used to measure purchase intension of the customer. Sample Question: Do you have plan to purchase laptop in the next 12 months. o Definitely Buy o Probably Buy o Not Sure o Probably Not Buy o Definitely Not Buy  Rating Scales 9) Rating Scale to measure Importance: It is a Multiple Choice Single Response Scale used to measure importance given by respondent in deciding certain thing. Sample Question: How important is placement to you while deciding the management institute? o Extremely Important o Very Important o Important o Less Important o Not at all Important  Rating Scales 10) Multiple Rating List Scale: In this scale opinion about performance, satisfaction, liking, quality, importance etc. related to multiple factors is asked. Multiple factors are listed and respondent is asked to rate the same. Sample Question: Indicate importance of factors which influence your decision while buying a two-wheeler? Extremely Not at all Factor Very Important Important Less Important Important Important Brand Mileage Speed Price  Rating Scale 11) Constant Sum Scale: Allocate number of points to each variable out of a fixed number of points to indicate their relative importance or preference Sample Question: Please divide 100 points amongst following characteristics to reflect their relative importance while purchasing a Two-Wheeler  Brand ________  Mileage ________  Pick-Up ________  Price ________  After Sales Service ________  Total __100___ Constant sum example  Rating Scales 12) Graphic Rating Scale: It is also called as continuous rating scale. Respondents rate the objects by placing a mark at an appropriate position on a line that runs from one extreme of the criterion variable to the other. Scale points may or may not be provided. Sample Question: How would you rate Big Bazar? _______________________________________________________________________ 10 20 30 40 50 60 70 80 90 100  Rating Scales 13) Likert Scale: It is developed by Rensis Likert. It is the most frequently used scale. It is a type of itemized rating scale. It is a type of summated rating scale. Likert Scale has two parts: o Item Part: Extreme favourable or unfavourable statement o Evaluative Part: Degree of Agreement Sample Question: IMS is an excellent Management Institute. o Strongly Agree o Agree o Neutral/Undecided/ Neither Agree nor Disagree o Disagree  Rating Scales 14) Semantic Differential (SD) Scale: Developed by Charles Osgood and his team Widely used scale Summated Scale Itemised Rating Scale Differential Scale Bipolar Scale Measures attitude of people about object using bipolar adjectives. Scale with end points with bipolar labels (semantic meaning) Sample Question: Indicate level of success of Nano 3 2 1 0 -1 -2 -3 Successful Unsuccessful  Ranking Scales These are comparative scales. The objects are compared with other objects. Types: o Paired Comparison o Rank Order Scale or Forced Ranking Scale  Ranking Scales 1) Rank Order Scale/ Forced Ranking Scale: Commonly used scale Example: Rank the following Brands in order of your Preference  Airtel  BSNL  Idea  Vodafone  Aircel  Ranking Scales 2) Paired Comparison: Comparison between Many Objects but 2 at a time Sample Question: Compare the following brands with each other and write preferred brand in the respective cell. (Enter 0, if you prefer row brand, 1, if you prefer column brand ) Brands Airtel BSNL Idea Vodafon Aircel e Airtel BSNL Idea Vodafon e Aircel  Issues in Designing Scale Type of Scale: o Which type of scale to be used? o Rating Scale or Ranking Scale to be used. Number of Categories: o How many number of categories to be given? o Odd or Even number of categories can be given. o Preferably odd categories are preferred. o Generally 3, 5, 7 could be 9, 11 categories are used. Balance of Scale: o Balanced or Unbalanced Scale can be used. o Preferably Balance Scale is used. Choice: o Forced or Non Forced Scales can be used. o  Problems in Measurement Sources of Error: Measurer Respondent Scale Environment Characteristics of Good Measurement: Validity Reliability Practicality