Unit II: Scientific Research Methods

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Unit II Scientific Research Methods

• Business Research
• Terminology
• The Scientific Method
• The Research Process
• Sampling
• Questionnaires

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BUSINESS RESEARCH

• What is Business Research?
• Types of Business Research
• When to Conduct Business Research
• Stages of Implementing Business Strategy

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What is Business Research?

• The systematic and objective process of
  gathering, recording and analyzing data for aid
  in making business decisions.
• Reduces uncertainty and risks by providing
  information that improves decision making
• An important decision-making tool

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Types of Business Research I

• Exploratory Research
• Usually carried out when there has been little
  previous work in the area
• Can be thought of as an initial fact-finding
  project
• Initial research conducted to clarify and define
  the nature of a problem
• Aim is normally to look for patterns or ideas
  that can be investigated in depth
• Descriptive Research
• Designed to describe the characteristics of a
  population or a phenomenon
• Answers to who, what, when, where and how

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Types of Business Research II

• Causal (Analytical) Research
• Aims to determine reasons why particular patterns
  occur
• Conducted to identify cause-and-effect
  relationships among variables
• Predictive Research
• Aim of predictive research is to use the
  information gained from previous analytical
  research to help predict what would happen in
  particular situations
• The purpose of the research rather than the
  technique used determines whether a study is
  exploratory, descriptive or causal

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Types of Business Research III
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When to Conduct Business Research
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Stages of Implementing Business Strategy

• There are three stages
• Identifying problems or opportunities
• Selecting and implementing a course of action
• Evaluating the course of action
• Business Research may play an important role in
  each stage by reducing managerial uncertainty

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TERMINOLOGY

• Theory
• Hypothesis
• Concept
• Proposition
• Variables

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Theory

• A conceptual framework that explains existing
  observations and predicts new ones
• A coherent set of general propositions used to
  explain the apparent relationships among certain
  observed phenomena
• A framework within which observations are
  explained and predictions are made
• The purpose of theory is mainly to
• Predict
• Understand

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Facts Theories

• Facts and theories are two different ideas
• Facts are the data in the world an indisputable
  truth
• Theories are structures of ideas that explain and
  interpret facts
• Business research gathers facts to verify theory
• A theory remains valid only if every new piece of
  information supports it
• If a single piece of available information does
  not support a theory, then the theory (as
  proposed) is disproved

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Theory Construction

• Theory construction is often the result of a
  combination of deductive and inductive reasoning
• Deductive Reasoning
• The logical process of deriving a conclusion from
  a known premise or something known to be true
• Eg. All managers are human beings, since we know
  that John Brown is a manager, then we can deduce
  that John Brown is a human being
• Inductive Reasoning
• The logical process of establishing a general
  proposition on the basis of observation of
  particular facts
• Eg. All managers that have ever been seen are
  human beings therefore all managers are human
  beings

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Hypothesis

• A tentative explanation for an observation,
  phenomenon, or scientific problem that can be
  tested by further investigation
• It tentatively explains certain facts or
  phenomena
• Something taken to be true for the purpose of
  argument or investigation an assumption
• A Hypothesis becomes a theory when there is
  consistency with observations/predictions

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Hypotheses, Theories Facts

• Using an example
• It is a fact that men exist on the earth
• It is a theory that our existence is as a result
  of evolution and not as a result of creation by a
  supreme being
• One hypothesis is that we evolved through
  different stages with the last stage being apes

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Concept I

• A generalised idea about a class of objects an
  abstraction of reality
• It is the basic unit for the development of
  theory
• Examples
• Organisational Theory
• Leadership
• Productivity
• Theory of Finance
• Assets
• Inflation

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Concept II

• Concepts operate at two levels
• Abstract exists only as an idea or a quality
  apart from an object
• Empirical verifiable by experience or observation

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Propositions

• Statements concerned with the relationship among
  various concepts
• It states that every event of a certain sort
  either has a certain property or stands in a
  certain relationship to other events that have
  certain properties

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Hypotheses Propositions

• Hypotheses are therefore the empirical
  counterparts of Propositions
• Abstract Proposition
• Reinforcements will increase habit strength
• Hypothesis
• Bonus pay will be associated with sales volume
  consistently above target

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Hypothesis Propositions contd
Proposition
Hypothesis
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Level of Abstraction
Theories
Level of Abstraction
Propositions
Concepts
Observations of Objects and Events (Reality)
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Variables

• Anything that may assume different numerical
  values
• Examples
• Bonus pay
• Sales
• Variables reflect concepts at the empirical level

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Types of Variables

• There are two main types of variables
• Qualitative
• This is simply "data expressed in words
• It records a thought, observation, opinion, or
  words
• There are two types of Qualitative Data
• Nominal
• Ordinal
• Quantitative
• This is information presented in the form of
  numbers, percentages or statistics
• It answers in numerical terms such questions as
  "how often" and "how many
• There are two types of Quantitative Data
• Interval
• Ratio

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THE SCIENTIFIC METHOD

• The Scientific Method
• Steps in the Application of the Scientific Method

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The Scientific Method

• Techniques or procedures used to analyze
  empirical evidence in an attempt to confirm or
  disprove prior conceptions
• Aka the process by which scientists endeavour to
  construct an accurate (i.e. reliable, consistent
  and non-arbitrary) representation of the world
• It attempts to minimize the influence of bias or
  prejudice in the experimenter when testing a
  hypothesis or a theory

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The Scientific Method contd

• The scientific methods involves
• Observe some aspect of the universe
• Invent a tentative description, called a
  hypothesis, that is consistent with what you have
  observed
• Use the hypothesis to make predictions
• Test those predictions by experiments or further
  observations and modify the hypothesis in the
  light of your results
• Repeat steps 3 and 4 until there are no
  discrepancies between hypothesis and experiment
  /observation. Hypothesis becomes theory when
  experiment bears it out

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Properties of the Scientific Method

• It is unprejudiced
• The results are repeatable
• A theory must be falsifiable (ie capable of
  being tested verified or falsified by
  experiment or observation)

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The Scientific Method A Visual
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Formal Steps in the Application of the Scientific
Method

• Assessment of relevant existing knowledge
• Formulation of concepts and propositions
• Statements of hypotheses
• Design the research to test the hypotheses
• Acquisition of meaningful empirical data
• Analysis and evaluation of data
• Provide explanation and state new problems raised
  by the research

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THE RESEARCH PROCESS

• The Research Process
• Stages in the Research Process
• Data Classification

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Stages in the Research Process

• Identify the research topic
• Define the problem
• Plan a research design
• Decide on sampling procedure
• Collect data
• Analyze data
• Formulate conclusions and prepare report

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The Research Process
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The Research Process contd
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Research Design

• A master plan specifying the methods and
  procedures for collecting and analyzing data
• Four basic design techniques for descriptive and
  causal research
• Secondary Data
• Experiment
• Survey
• Observation

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Data Classification

• There are two main types of data classification
• Primary Data
• Information that is obtained directly from
  first-hand sources by means of surveys,
  observation or experimentation
• collected specifically for the purpose of the
  investigation at hand
• Secondary Data
• Statistics not gathered for the immediate study
  at hand but for some other purpose
• Information compiled for some purpose other than
  the current investigation

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SAMPLING

• Sample Surveys
• Sampling
• Questionnaire Design

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Sample Surveys

• A sample survey is any observation or
  investigation of the facts about a situation done
  in order to learn something about the larger
  population from which the sample was drawn
• It is a method of primary data collection based
  on communication with a representative sample of
  individuals
• Questionnaires or interviews are used to collect
  data through the mail, on the telephone, on the
  web or face-to-face

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Advantages of Sample Surveys

• Quick
• Inexpensive
• Efficient
• Accurate means of accessing information about a
  population

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Sample Surveys Common Terms

• Respondent One who participates in an
  observation, survey or experiment
• Random sampling error The sample used for a
  particular survey is only one of a large number
  of possible samples of the same size and design
  that could have been selected. Even if the same
  questionnaire and instructions were used, the
  estimates from each sample would differ from the
  others. This difference, termed sampling error,
  occurs by chance

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Sample Surveys Common Terms

• Systematic (non-sampling) Error these are errors
  resulting from some imperfection in some aspect
  of the research design that causes response error
  from a mistake in the execution of the research.
  Eg sample bias, errors in recording responses,
  non-responses
• Sample bias this refers to the difference
  between the estimate derived from a sample survey
  and the 'true' value that would result if the
  whole population was studied (using the same
  conditions)
• Non-response error This is a type of systematic
  error representing the statistical difference
  between a survey including only those who
  responded and a survey that also includes those
  who failed to respond

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Sampling

• This is the process of selecting respondents from
  a population to participate in survey
• Sampling is preferred in some cases because
• Budgetary and time constraints (therefore census
  too much)
• It gathers vial information quickly
• Reduces labour requirements
• If the sample is properly selected then results
  are sufficiently accurate
• If population elements are highly homogenous then
  samples are highly representative of the
  population
• When compared to censuses there is less
  likelihood of nonsampling errors
• Some research projects require destruction of the
  items (eg quality control)

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Sampling Key Terms

• Population
• Population element This refers to an individual
  element within the population
• Target population This is the population of
  interest based on some specific criteria
• Census This is a complete enumeration of the
  population data is collected from ALL members in
  the population
• Sampling frame This is a list of the all the
  units in the target population from which the
  sample is to be chosen
• Sampling unit This is the items/units being
  investigated
• AKA Unit of Analysis
• Eg Households, individuals, hospitals

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Stages in Sample Selection
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Types of Samples

• There are two main sampling methods
• Probability Sampling
• Every element in the population has a known
  non-zero probability of selection
• Simple random sampling (elements have equal
  probability of selection
• Non-Probability Sampling
• Sample units are selected on the basis of
  personal judgment or convenience
• There is no known probability of selection for
  inclusion in the sample

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Probability Sampling I

• Simple Random Sampling Each member of the
  population has the same probability of being a
  part of the sample independent of whether another
  subject is in the sample
• Stratified Sampling A population is subdivided
  or partitioned into strata and a random sample is
  then taken from each stratum
• .

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Probability Sampling II

• Systematic Sampling Consists of taking every kth
  sampling unit after a random start
• Cluster Sampling The population is divided into
  groups, or clusters and a number of clusters are
  selected randomly to represent the population,
  and then all units within selected clusters are
  included in the sample
• .

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Non-Probability Sampling

• Convenience Sampling Participants are selected
  because they are readily available
• Judgment Sampling The researcher exercises
  deliberate subjective choice in drawing what
  he/she regards as a representative sample
• Quota Sampling
• Participants are selected from certain subgroups
  in the population, usually just before the
  interview begins although the aim is to be as
  random as possible.
• Frequently used in market research, interviewer
  is normally told to interview a certain number of
  persons with specific characteristics.

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Questionnaire Design

• The design of the questionnaire can affect the
  response rate
• Researcher must make certain decisions
• What should be asked?
• How should each question be phrased?
• In what sequence should questions appear?
• What questionnaire layout will best serve the
  research objectives?
• How should the questionnaire be pre-tested?

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Questionnaire Design Formatting the Question

• There are two ways to format a question
• Closed-Ended a question where there is a fixed
  list of alternative responses and the respondent
  is asked to select one or more response based on
  their answer
• Open-Ended there are no preexisting response
  categories and the respondent is permitted to
  answer as they feel

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Questionnaire Design Some Points to Consider

• Use clear questions
• Be as brief as possible
• Avoid ambiguity jargon
• Explain purpose of research and assure
  confidentiality, if necessary
• Give precise instructions on how to complete the
  questionnaire
• Assign a unique number to each questionnaire, for
  use in subsequent processing
• Questions must be adequate to obtain the required
  information
• The order of questions is important
• Avoid leading questions
• Avoid calculations
• Do not begin with sensitive (personal) questions
• Present alternative answers evenly
• For close ended questions the suggestions must be
  exhaustive
• Keep track of the number of questions
• Use grouped categories to obtain sensitive
  information such as age and income