You are on page 1of 36

Chapter 1: Introduction to Research

Q. Define research. What are its characteristics?

A. Research in simplified terms means searching for the facts searching for the replies to the
various queries and also for the solutions to the various problems. Research is an inquiry or an
investigation with a specific purpose to fulfill, it helps in clearing the various doubtful concepts
and tries to solve or explain the various unexplained procedures or phenomenon.
According to the encyclopedia of social science, research can be explained as the manipulation
of generalizing to extend, connect or verify knowledge.
There are eight commonly agreed characteristics of researchSystematic procedures, Controlled procedures, validity, rigorousness, logicality, critical thought,
objectivity and accuracy.
The characteristics of Research can be explained as follows-


Page | 1

1. EmpiricalResearch is based on direct experience or observation by the researcher.

2. LogicalResearch is based on valid procedures and principles.
3. CyclicalResearch is a cyclical process because it starts with a problem and ends with a problem.
4. AnalyticalResearch utilizes proven analytical procedures in gathering the data, whether historical,
descriptive, experimental and case study.
5. CriticalResearch exhibits careful and precise judgment.
6. MethodicalResearch is conducted in a methodical manner without bias using systematic method and
7. ReplicableThe research design and procedures are replicated or repeated to enable the researcher to arrive
at valid and conclusive results.
Q. Explain the need and importance of research in business.
A. The significance of research in a number of fields of applied economics, whether associated
with business, industry, commerce, trade, services or to the economy in general, has
tremendously increased these days. The extremely complex character of business, its size, fast
changes in technology etc, has focused attention on the utilization of research in managing
operational problems.
Page | 2

1. Testing of new productsBusiness research tests the possible success of fresh products. Businesses need to know what
kinds of services and products consumers want before they produce them. Research will reduce
risk Research can help design a new product or service, figuring out what is needed and ensure
that the development of a product is highly targeted towards demand.
2. Guaranteeing adequate distribution.
Businesses can also use research to guarantee sufficient distribution of their products. For
instance, a consumer products company might want to speak with merchants about the various
brands they offer. The outcomes of the business research can help managers decide where they
need to increase their product distribution.

3. In-house research is required for professional and self development of the workers
through training and mentoring.
Organisational research and analysis would also be needed for assessment of performance
management, process reengineering, departmental assessment and well-being of staff members.
4. Undertaking research can help a company avoid future failure.
Carrying out research can also help a business determine whether now is the right time to expand
into another town or whether it needs to apply for a new loan. It may also help a small business
decide if a process should be altered or if more needs to be done to meet the requirements of the
customer base.
Page | 3

5. Studying the competition.

Businesses frequently make use of research to study key rivals in their markets. Businesses will
often begin with secondary research information or information which is currently accessible.
Research is important for any organization to remain competitive in the market. The top function
of research is to supply a business with an outlet to correctly determine its customers. With the
help of surveys, an organization can analyze the preferences of its target consumers.
Furthermore, these studies could also provide a business the chance to examine its competitors in
the industry and analyze and emulate key strategies which could help in its operations.
It can also help in the recruitment of employees. Its through proper research that human resource
managers are able to determine and recruit qualified manpower. Recruitment of workers with the
right skills and attitudes aids the company to improve its productivity levels. Research for the
right staff members can be done via the internet, consultancy firms and institutions of higher
A proper knowledge of the employees and healthy conversation would be important factors for a
manager to boost performance of the individuals in the team. A good approach, winning attitude
and behaviour of the manager with proper systems set up would certainly call for sound research
to understand and improve the system
Q. Explain the need and importance of research in social sciences.
A. While identifying order in the complexity of social life is the most fundamental goal of social
research; there are many other, more specific goals that contribute to this larger goal. They are
quite diverse. For example, the goal of testing theories about social life contributes to the larger
goal of identifying order in complexity; so does the goal of collecting in-depth information on
the diverse social groups that make up society. Another factor that contributes to the diversity of
the goals of social research is the simple fact that social research reflects society, and society
itself is diverse, multifaceted, and composed of many antagonistic groups. It follows that the
goals of social research are multiple and sometimes contradictory. Today, no single goal
dominates social research.
Page | 4

1. Identifying general patterns and relationships

2. Testing and refining theories
3. Making Predictions
4. Interpreting culturally or historically significant phenomena
5. Exploring Diversity
6. Giving Voice
7. Advancing New Theories
1. Identifying general patterns and relationship
Significant social phenomena may be significant because they are common or general; they
affect many people, either directly or indirectly. This quality of generality makes knowledge of
such phenomena valuable. Thus, one of the major goals of social research is to identify general
patterns and relationships. In some corners, this objective is considered the primary goal because
social research that is directed toward this end resembles research in the hard sciences. This
resemblance gives social research more legitimacy, making it seem more like social physics and
less like social philosophy or political ideology.
2. Testing and Refining Theories
A primary goal of social research is to improve and expand the pool of ideas known as theories
by testing their implications and to refine their power to explain. Testing is carried by deriving
hypotheses from theories and the implications of these theories are then tested with data that bear
directly on the hypotheses. Ideas and hypotheses that fail to receive support gradually lose their
appeal, while those that are supported more consistently gain greater stature in the pool. Testing
theories can also serve to refine them. By working through the implications of a theory and then
testing this refinement, it is possible to progressively improve and elaborate a set of ideas.
3. Making Predictions

Page | 5

While social researchers use theories to derive "predications" about what they expect to find in a
set of data, they also use accumulated social scientific knowledge to make predictions about the
future. Consider the following example: Research indicates that ethnic conflict tends to increase
when the supply of economic rewards and resources decreases. Thus, a social scientist would
predict increased ethnic tension in an ethnically diverse country that has just experienced a
serious economic downturn. Prediction is often considered the highest goal of science. We
accumulate knowledge so that we can anticipate things to come.
4. Interpreting Culturally or Historically Significant Phenomena
Knowledge of general patterns is not the only kind of valuable knowledge, however, especially
when it comes to understanding social life. In the social sciences, knowledge of specific
situations and events, even if they are atypical is also highly valued. The significance of most
historical phenomena derives from their atypically, the fact that he are dramatically non-routine,
and form their impact on who we are today.
5. Exploring Diversity
Another major goal of social research is to explore and comprehend the social diversity that
surrounds us. While this goal may seem similar to the goal of identifying general patterns, and
does complement it in some respects, it is quite different. For example, one general pattern is that
education and economic development tend to go together; countries with better schools and
higher literacy rates tend to be richer. However, the fact that a general pattern exists doesn't mean
that there aren't important and interesting exceptions. Some poor countries have well-developed
educational systems and very high literacy rates and some rich countries have poorly developed
schools and surprisingly low levels of literacy.

6. Giving Voice
Sometimes the goal of exploring diversity is taken one step further, and the researcher studies a
group not simply to learn more about it, but also to contribute to its having an expressed voice in
Page | 6

society. In research of this type, the objective is not only to increase the stock of knowledge
about different types, forms, and processes of social life, but to tell the story of specific groups,
usually in a way that enhances its visibility in society.
Very often the groups studies in this way are marginal groups, outside the social mainstream.
This approach to social research asserts that every group in society has a "story to tell".
7. Advancing New Theories
Many different kinds of social research advance theory, even research that seeks to interpret
historical or cultural significance. The testing of theories (goal 2) also advances theory in the
limited sense that these tests indicate which theoretical ideas have more support as explanations
of social life. The goal of advancing theory as it used here, however, involves more than
assessing and refining existing ideas. When theory is advanced, ideas are elaborated in some new
way. To advance theory it is not necessary to come up with a complete model of society or even
some part of it. The development of new ideas and new concepts is the most that research
seeking to advance theory usually accomplishes.
While the deduction-versus-induction distinction is a simple and appealing way to differentiate
kinds of social research, most research includes elements of both. For this reason some
philosophers of science argue that all research involves retroduction - the interplay of induction
and deduction. It is impossible to do research without some initial ideas, even if the goal is to
give voice to research subjects. Thus, almost all research has at least an element of deduction.
Similarly, almost all research can be used to advance theory in some way. After all, social
theories are vague and imprecise. Every test of a theory refines it, whether or not the test is
supportive. Research involves retroduction because there is typically a dialogue of ideas and
evidence in social research.

Q. State and explain the objectives of research?

Page | 7

A. The ultimate aim of research is to generate measurable and testable data, gradually adding to
the accumulation of human knowledge. Ancient philosophers believed that all answers could be
achieved through deduction and reasoning rather than measurement. Science now uses
established research methods and standard protocols to test theories thoroughly. It is important to
remember that science and philosophy are intertwined and are essential elements of human
advancement, both contributing to the way we view the world. Scientific research, however,
allows us to test hypotheses and lay solid foundations for future research and study.
No theory or hypothesis can ever be completely proved or disproved, but research enables us to
make valid assumptions about the universe.

1. Observation and Description

The first stage of any research is to observe the world around us and to ask questions about why
things are happening. Every phenomenon in the universe has a reason behind it, and the aims of
research are to understand and evaluate what is happening. However simple the phenomenon or
however easy it appears to be to generate logical and intuitive answers, scientific
research demands rigorous testing for a truth to be accepted. Describing the overall behavior of

Page | 8

the subject is the first stage of any research, whether it is a case study or a full-blown 'true
experimental design'.

2. Predict
This stage is where you must make a statement of intent and develop a strong hypothesis. This
must be testable, with aims of research being to prove or disprove this statement. At this stage,
you may express your personal opinion, favoring one side or the other. You must make a
statement predicting what you expect the final answer to be. You must, however, keep an open
mind and understand that there is a chance that you may be wrong. Research is never about right
or wrong but about arriving at an answer, which improves our knowledge of natural processes.

3. Determination of the Causes

This is often the 'business end' for many areas of scientific research and is where one of
the predictions is tested, usually by manipulating and controlling variables. The idea is to
generate numerical data that can determine the cause with one of the many statistical tests. For
example, a small-scale global warming study might study Antarctic ice cores to determine the
historical levels of carbon dioxide throughout history. In this experiment, time would be the
manipulated variable, showing how levels of the greenhouse gas have changed over time.
Statistical procedures are then utilized to either prove or disprove the hypothesis and prediction.
Of course, very little research gives such a black and white answer, but opens up new areas of
potential study and allows scientists to focus on a specific direction.
4. Explanation
After determining the causes, the next layer of the research process is to try to find possible
explanations of 'Why?' and 'How?' things are happening. For most areas, this stage involves
sifting through and reviewing earlier studies about similar phenomena. Most research is built
upon the work of previous researchers, so there should be a wealth of literature resources
Page | 9

available. If we look at a topical example, Global Warming is an area with which most of us are
familiar and has been the subject of thousands of studies. Intuitively, most of us would state that
humanity pumping carbon dioxide into the atmosphere is responsible for a worldwide rise in
The aims of research may be to establish 'What are the underlying causes and relationships
between the different processes fueling this trend?' In most cases, it is necessary to review earlier
research and try to separate the better quality sources from the inaccurate or poorly designed
studies. It is equally important to take into account any opposing points of view and accept that
they may be equally valid. Explanation is about coming up with viable reasons and you must try
to be as objective and unbiased as possible.

Q. What are the types of research?

A. Research can be classified in many different ways on the basis of the methodology of
research- the knowledge it creates, the user group, the research problem it investigates etc.

The research is done for knowledge enhancement and does not have immediate commercial
potential- for human welfare, animal welfare and plant kingdom welfare. It is called basic, pure
and fundamental research. The main motivation is to expand man's knowledge, not to create or
invent something. There is no obvious commercial value to the discoveries that result from basic
research. Basic research lay down the foundation for the applied research. Dr.G.Smoot says
people cannot foresee the future well enough to predict what is going to develop from the basic
research Eg:-how did the universe begin?

Page | 10

Applied research is designed to solve practical problem of the modern world, rather than to
acquire knowledge for knowledges sake. The goal of applied research is to improve the human
condition. It focuses on analysis and solving social and real life problems. This research is
generally conducted on large scale basis, it is expensive. As such, it often conducted with the
support of some financing agency like government, public corporation, world bank, UNICEF,
UGC, Etc, According to hunt, applied research is an investigation for ways of using scientific
knowledge to solve practical problems for example:- improve agriculture crop production, treat
or cure a specific disease, improve the energy efficiency homes, offices, how can communication
among workers in large companies be improved? Applied research can be further classified as
problem oriented and problem solving research.
Problem oriented research:Research is done by industry apex body for sorting out problems faced by all the companies.
Eg:- WTO does problem oriented research for developing countries, in India agriculture and
processed food export development authority (APEDA) conduct regular research for the benefit
of agri-industry.
Problem solving:This type of research is done by an individual company for the problem faced by it. Marketing
research and market research are the applied research. For eg:- Videocon international conducts
research to study customer satisfaction level, it will be problem solving research. In short, the
main aim of applied research is to discover some solution for some pressing practical problem.

This research is based on numeric figures or numbers. Quantitative research aim to measure the
quantity or amount and compares it with past records and tries to project for future period. In
social sciences, quantitative research refers to the systematic empirical investigation of
Page | 11

quantitative properties and phenomena and their relationships. The objective of quantitative
research is to develop and employ mathematical models, theories or hypothesis pertaining to
The process of measurement is central to quantitative research because it provides fundamental
connection between empirical observation and mathematical expression of quantitative
relationships. Statistics is the most widely used branch of mathematics in quantitative research.
Statistical methods are used extensively with in fields such as economics and commerce.
Quantitative research involving the use of structured questions, where the response options have
been Pre-determined and large number of respondents is involved. e.g.:-total sales of soap
industry in terms of rupees cores and or quantity in terms of lakhs tones for particular year, say
2008,could be researched, compared with past 5 years and then projection for 2009 could be
Qualitative research presents non-quantitative type of analysis. Qualitative research is collecting,
analyzing and interpreting data by observing what people do and say. Qualitative research refers
to the meanings, definitions, characteristics, symbols, metaphors, and description of things.
Qualitative research is much more subjective and uses very different methods of collecting
information, mainly individual, in-depth interviews and focus groups.
The nature of this type of research is exploratory and open ended. Small numbers of people are
interviewed in depth and or a relatively small number of focus groups are conducted. Qualitative
research can be further classified in the following type.
I. Phenomenology:-a form of research in which the researcher attempts to understand how one or
more individuals experience a phenomenon. E.g.:-we might interview 20 victims of Bhopal
II. Ethnography: - this type of research focuses on describing the culture of a group of people. A
culture is the shared attributes, values, norms, practices, language, and material things of a group
Page | 12

of people. E.g.:-the researcher might decide to go and live with the tribal in Andaman island and
study the culture and the educational practices.
III. Case study:-is a form of qualitative research that is focused on providing a detailed account
of one or more cases. E.g.:-we may study a classroom that was given a new curriculum for
technology use.
IV. Grounded theory: - it is an inductive type of research, based or grounded in the observations
of data from which it was developed; it uses a variety of data sources, including quantitative
data, review of records, interviews, observation and surveys
V. Historical research:-it allows one to discuss past and present events in the context of the
present condition, and allows one to reflect and provide possible answers to current issues and
problems. E.g.:-the lending pattern of business in the 19th century.
In addition to the above, we also have the descriptive research. Fundamental research, of which
this is based on establishing various theories
Also the research is classified in to 1. Descriptive research 2. Analytical research 3. Fundamental
research 4. Conceptual research 5. Empirical research 6. One time research or longitudinal
research 7. Field-setting research or laboratory research or simulation research 8. Clinical or
diagnostic research 9. Exploratory research 10.Historical research 11.Conclusion oriented
Q. What are the issues and problems in research?
A. Research plans depend on what you need to find out, what data you need to collect and what
will affect your decisions, for example, if you are researching a Customer Care issue, you may
already have a topic chosen for you, i.e. 'How do we improve our Customer Care?', whereas if
you are undertaking research for academic purposes, you may have a host of issues or topics you
are interested in researching.
Some of the important problems are as follows:

Page | 13

1. The lack of a scientific training in the methodology of research is a great impediment for
researchers in our country. There is paucity of competent researchers. Many researchers take a
leap in the dark without knowing research methods. Most of the work, which goes in the name of
research, is not methodologically sound. Research too many researchers and even to their guides,
is mostly a scissor and paste job without any insight shed on the collated materials. The
consequence is obvious, viz., the research results, quite often, do not reflect the reality or
realities. Thus, a systematic study of research methodology is an urgent necessity. Before
undertaking research projects, researchers should be well equipped with all the methodological
aspects. As such, efforts should be made to provide short duration intensive courses for meeting
this requirement.
2. There is insufficient interaction between the university research departments on one side and
business establishments, government departments and research institutions on the other side. A
great deal of primary data of non-confidential nature remains untouched/untreated by the
researchers for want of proper contacts. Efforts should be made to develop satisfactory liaison
among all concerned for better and realistic researches. There is need for developing some
mechanisms of a universityindustry interaction programme so that academics can get ideas
from practitioners on what needs to be researched and practitioners can apply the research done
by the academics.
3. Most of the business units in our country do not have the confidence that the material supplied
by them to researchers will not be misused and as such they are often reluctant in supplying the
needed information to researchers. The concept of secrecy seems to be sacrosanct to business
organisations in the country so much so that it proves an impermeable barrier to researchers.
Thus, there is the need for generating the confidence that the information/data obtained from a
business unit will not be misused.
4. Research studies overlapping one another are undertaken quite often for want of adequate
information. This results in duplication and fritters away resources. This problem can be solved
by proper compilation and revision, at regular intervals, of a list of subjects on which and the
places where the research is going on. Due attention should be given toward identification of

Page | 14

research problems in various disciplines of applied science which are of immediate concern to
the industries.
5. There does not exist a code of conduct for researchers and inter-university and
interdepartmental rivalries are also quite common. Hence, there is need for developing a code of
conduct for researchers which, if adhered sincerely, can win over this problem.
6. Many researchers in our country also face the difficulty of adequate and timely secretarial
assistance, including computerial assistance. This causes unnecessary delays in the completion of
research studies. All possible efforts be made in this direction so that efficient secretarial
assistance is made available to researchers and that too well in time. University Grants
Commission must play a dynamic role in solving this difficulty.
7. Library management and functioning is not satisfactory at many places and much of the time
and energy of researchers are spent in tracing out the books, journals, reports, etc., rather than in
tracing out relevant material from them.
8. There is also the difficulty of timely availability of published data from various government
and other agencies doing this job in our country. Researcher also faces the problem on account of
the fact that the published data vary quite significantly because of differences in coverage by the
concerning agencies.

Page | 15

Chapter 2: Research methodology

Q. Explain Research methodology, research methods and techniques.
A. Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by a researcher in studying his research problem along with the
logic behind them. It is necessary for the researcher to know not only the research
methods/techniques but also the methodology. Researchers not only need to know how to
develop certain indices or tests, how to calculate the mean, the mode, the median or the standard
deviation or chi-square, how to apply particular research techniques, but they also need to know
which of these methods or techniques, are relevant and which are not, and what would they mean
and indicate and why. Researchers also need to understand the assumptions underlying various
techniques and they need to know the criteria by which they can decide that certain techniques
and procedures will be applicable to certain problems and others will not. All this means that it is
necessary for the researcher to design his methodology for his problem as the same may differ
from problem to problem. For example, an architect, who designs a building, has to consciously
evaluate the basis of his decisions, i.e., he has to evaluate why and on what basis he selects
particular size, number and location of doors, windows and ventilators, uses particular materials
and not others and the like. Similarly, in research the scientist has to expose the research
decisions to evaluation before they are implemented. He has to specify very clearly and precisely
what decisions he selects and why he selects them so that they can be evaluated by others also.
Page | 16

Research methods or techniques, thus, refer to the methods the researchers use in performing
research operations. In other words, all those methods which are used by the researcher during
the course of studying his research problem are termed as research methods. Since the object of
research, particularly the applied research, it to arrive at a solution for a given problem, the
available data and the unknown aspects of the problem have to be related to each other to make a
solution possible. Keeping this in view, research methods can be put into the following three

In the first group we include those methods which are concerned with the collection of
data. These methods will be used where the data already available are not sufficient to

arrive at the required solution;

The second group consists of those statistical techniques which are used for establishing

relationships between the data and the unknowns; 3.

The third group consists of those methods which are used to evaluate the accuracy of the
results obtained.

Research techniques refer to the behaviour and instruments we use in performing research
operations such as making observations, recording data, techniques of processing data and the
Q. What is scientific method of research and its requisites?
A. The scientific method is a body of techniques for investigating phenomena, acquiring new
knowledge, or correcting and integrating previous knowledge. To be termed scientific, a method
of inquiry is commonly based on empirical or measurable evidence subject to specific principles
of reasoning. The Oxford English Dictionary defines the scientific method as "a method or
procedure that has characterized natural science since the 17th century, consisting in systematic
observation, measurement, and experiment, and the formulation, testing, and modification
of hypotheses."

Page | 17

The scientific method is an ongoing process, which usually begins with observations about the
natural world. Human beings are naturally inquisitive, so they often come up with questions
about things they see or hear and often develop ideas (hypotheses) about why things are the way
they are. The best hypotheses lead to predictions that can be tested in various ways, including
making further observations about nature. In general, the strongest tests of hypotheses come
from carefully controlled and replicated experiments that gather empirical data. Depending on
how well the tests match the predictions, the original hypothesis may require refinement,
alteration, expansion or even rejection. If a particular hypothesis becomes very well supported a
general theory may be developed.
Whatever may be the types of research works and 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 criteria:
1. The purpose of the research should be clearly defined and common concepts be used.
2. 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. The procedural design of the research should be carefully planned to yield results that are as
objective as possible.
4. The researcher should report with complete frankness, flaws in procedural design and estimate
their effects upon the findings.
5. The analysis of data should be sufficiently adequate to reveal its significance and the methods
of analysis used should be appropriate. The validity and reliability of the data should be checked
6. Conclusions should be confined to those justified by the data of the research and limited to
those for which the data provide an adequate basis.
7. Greater confidence in research is warranted if the researcher is experienced, has a good
reputation in research and is a person of integrity.
In other words, we can state the requisites of a good research as under:

Page | 18

1. Good research is systematic: It means that research is structured with specified steps to be
taken in a specified sequence in accordance with the well defined set of rules. Systematic
characteristic of the research does not rule out creative thinking but it certainly does reject the
use of guessing and intuition in arriving at conclusions.
2. Good research is logical: This implies that research is guided by the rules of logical reasoning
and the logical process of induction and deduction are of great value in carrying out research.
Induction is the process of reasoning from a part to the whole whereas deduction is the process
of reasoning from some premise to a conclusion which follows from that very premise. In fact,
logical reasoning makes research more meaningful in the context of decision making.
3. Good research is empirical: It implies that research is related basically to one or more
aspects of a real situation and deals with concrete data that provides a basis for external validity
to research results.
4. Good research is replicable: This characteristic allows research results to be verified by
replicating the study and thereby building a sound basis for decisions
Q. Describe the steps in scientific research process.
A. The overall process involves making conjectures (hypotheses), deriving predictions from
them as logical consequences, and then carrying out experiments based on those predictions to
determine whether the original conjecture was correct. There are difficulties in a formulaic
statement of method, however. Though the scientific method is often presented as a fixed
sequence of steps, they are better considered as general principles. Not all steps take place in
every scientific inquiry (or to the same degree), and are not always in the same order. As noted
by William Whewell (17941866), "invention, sagacity, [and] genius" are required at every step.

Page | 19

Formulation of a question
The question can refer to the explanation of a specific observation, as in "Why is the sky blue?",
but can also be open-ended, as in "How can I design a drug to cure this particular disease?" This
stage frequently involves looking up and evaluating evidence from previous experiments,
personal scientific observations or assertions, and/or the work of other scientists. If the answer is
already known, a different question that builds on the previous evidence can be posed. When
applying the scientific method to scientific research, determining a good question can be very
difficult and affects the final outcome of the investigation.
A hypothesis is a conjecture, based on knowledge obtained while formulating the question, that
may explain the observed behavior of a part of our universe. The hypothesis might be very
specific, e.g., Einstein's equivalence principle or Francis Crick's "DNA makes RNA makes
protein", or it might be broad, e.g., unknown species of life dwell in the unexplored depths of the
oceans. A statistical hypothesis is a conjecture about some population. For example, the
population might be people with a particular disease. The conjecture might be that a new drug
Page | 20

will cure the disease in some of those people. Terms commonly associated with statistical
hypotheses are null hypothesis and alternative hypothesis. A null hypothesis is the conjecture that
the statistical hypothesis is false, e.g., that the new drug does nothing and that any cures are due
to chance effects. Researchers normally want to show that the null hypothesis is false. The
alternative hypothesis is the desired outcome, e.g., that the drug does better than chance. A final
point: a scientific hypothesis must be falsifiable, meaning that one can identify a possible
outcome of an experiment that conflicts with predictions deduced from the hypothesis;
otherwise, it cannot be meaningfully tested.
This step involves determining the logical consequences of the hypothesis. One or more
predictions are then selected for further testing. The more unlikely that a prediction would be
correct simply by coincidence, then the more convincing it would be if the prediction were
fulfilled; evidence is also stronger if the answer to the prediction is not already known, due to the
effects of hindsight bias (see also post diction). Ideally, the prediction must also distinguish the
hypothesis from likely alternatives; if two hypotheses make the same prediction, observing the
prediction to be correct is not evidence for either one over the other. (These statements about the
relative strength of evidence can be mathematically derived using Bayes' Theorem).
This is an investigation of whether the real world behaves as predicted by the hypothesis.
Scientists (and other people) test hypotheses by conducting experiments. The purpose of an
experiment is to determine whether observations of the real world agree with or conflict with the
predictions derived from an hypothesis. If they agree, confidence in the hypothesis increases;
otherwise, it decreases. Agreement does not assure that the hypothesis is true; future experiments
may reveal problems. Karl Popper advised scientists to try to falsify hypotheses, i.e., to search
for and test those experiments that seem most doubtful. Large numbers of successful
confirmations are not convincing if they arise from experiments that avoid risk. [8] Experiments
should be designed to minimize possible errors, especially through the use of
appropriate scientific controls. For example, tests of medical treatments are commonly run
Page | 21

as double-blind tests. Test personnel, who might unwittingly reveal to test subjects which
samples are the desired test drugs and which are placebos, are kept ignorant of which are which.
Such hints can bias the responses of the test subjects. Furthermore, failure of an experiment does
not necessarily mean the hypothesis is false. Experiments always depend on several hypotheses,
e.g., that the test equipment is working properly, and a failure may be a failure of one of the
auxiliary hypotheses. (See the Duhem-Quine thesis.) Experiments can be conducted in a college
lab, on a kitchen table, at CERN's Large Hadron Collider, at the bottom of an ocean, on Mars
(using one of the working rovers), and so on. Astronomers do experiments, searching for planets
around distant stars. Finally, most individual experiments address highly specific topics for
reasons of practicality. As a result, evidence about broader topics is usually accumulated
This involves determining what the results of the experiment show and deciding on the next
actions to take. The predictions of the hypothesis are compared to those of the null hypothesis, to
determine which is better able to explain the data. In cases where an experiment is repeated
many times, a statistical analysis such as a chi-squared test may be required. If the evidence has
falsified the hypothesis, a new hypothesis is required; if the experiment supports the hypothesis
but the evidence is not strong enough for high confidence, other predictions from the hypothesis
must be tested. Once a hypothesis is strongly supported by evidence, a new question can be
asked to provide further insight on the same topic. Evidence from other scientists and experience
are frequently incorporated at any stage in the process. Depending on the complexity of the
experiment, many iterations may be required to gather sufficient evidence to answer a question
with confidence, or to build up many answers to highly specific questions in order to answer a
single broader question.

Q. What is hypothesis and mention its importance?

A. A hypothesis is a conjecture, based on knowledge obtained while formulating the question
that may explain the observed behavior of a part of our universe. The hypothesis might be very
Page | 22

specific, e.g., Einstein's equivalence principle or Francis Crick's "DNA makes RNA makes
protein", or it might be broad, e.g., unknown species of life dwell in the unexplored depths of the
oceans. A statistical hypothesis is a conjecture about some population. For example, the
population might be people with a particular disease. The conjecture might be that a new drug
will cure the disease in some of those people. Terms commonly associated with statistical
hypotheses are null hypothesis and alternative hypothesis. A null hypothesis is the conjecture that
the statistical hypothesis is false, e.g., that the new drug does nothing and that any cures are due
to chance effects. Researchers normally want to show that the null hypothesis is false. The
alternative hypothesis is the desired outcome, e.g., that the drug does better than chance. A final
point: a scientific hypothesis must be falsifiable, meaning that one can identify a possible
outcome of an experiment that conflicts with predictions deduced from the hypothesis;
otherwise, it cannot be meaningfully tested.
The research process begins and ends with the hypothesis. It is core to the entire procedure and,
therefore, is of the utmost importance. A hypothesis can be formulated in several ways yet it
always performs the basic function of predicting the final outcome of the investigation. The
hypothesis usually occurs after inductive reasoning, in which the researcher performs a series of
observations in order to form a theory.
Turn your ideas into a research question.
Review the literature.
Design the study and develop your method(s).
Writing your research proposal.
Issues about funding.
Obtain ethical and trust approval.
Collect and collate the data.
Analyze the data and interpret findings.
Implications of your research for clinical practice.
Report on the study and disseminate the findings.

Page | 23

A hypothesis ensures the entire research process remains scientific and reliable, following the
principles of deduction. The hypothetico-deductive model was first proposed by Karl
Popper who suggested that theories about the world should come first and these should be used
to generate hypothesis which can be falsified by the empirical data produced by observations and
Though hypotheses are essential during the research process, it can produce complications with
regards to probability, significance and Type I -Type II errors. A Type I error occurs when p value
is too large and the null hypothesis is falsely rejected and the research hypothesis is falsely
accepted. A Type II error occurs when the researcher falsely accepts the null hypothesis and
falsely rejects the research hypothesis as p value is too small. To confirm, a null hypothesis is
only used with statistics and claims there is no variation or difference between variables
Q. What are the different types of hypothesis?
A. As mentioned previously, a hypothesis is a tool of quantitative studies. It is a tentative and
formal prediction about the relationship between two or more variables in the population
being studied, and the hypothesis translates the research question into a prediction of
expected outcomes. So a hypothesis is a statement about the relationship between two or
more variables that we set out to prove or disprove in our research. study.
A hypothesis should be:

stated clearly using appropriate terminology;


a statement of relationships between variables;

limited in scope (focused).

Types of hypotheses

Page | 24

There are different types of hypotheses:

Simple hypothesis - this predicts the relationship between a single independent variable
(IV) and a single dependent variable (DV) where IV = independent variable and DV =
dependent variable

Complex hypothesis - this predicts the relationship between two or more independent
variables and two or more dependent variables.

Hypotheses can be stated in various ways as long as the researcher specifies or implies the
relationship that will be tested.

Directional hypotheses

These are usually derived from theory. They may imply that the researcher is intellectually
committed to a particular outcome. They specify the expected direction of the relationship
between variables i.e. the researcher predicts not only the existence of a relationship but also its

Non-directional hypotheses

Used when there is little or no theory, or when findings of previous studies are contradictory.
They may imply impartiality. Do not stipulate the direction of the relationship.
Associative and causal hypotheses

Associative hypotheses

Propose relationships between variables - when one variable changes, the other changes. Do not
indicate cause and effect.

Causal hypotheses

Page | 25

Propose a cause and effect interaction between two or more variables. The independent variable
is manipulated to cause effect on the dependent variable. The dependent variable is measured to
examine the effect created by the independent variable.

Null hypotheses

These are used when the researcher believes there is no relationship between two variables or
when there is inadequate theoretical or empirical information to state a research hypothesis Null
hypotheses can be: simple or complex; associative or causal.

Testable hypotheses

Contain variables that are measurable or able to be manipulated. They need to predict a
relationship that can be 'supported' or 'not supported' based on data collection and analysis.

Q. Sources of developing hypothesis?

A. Once you have identified you research question, it is time to formulate your hypothesis. While
the research question is broad and includes all the variables you want your study to consider, the
hypothesis is a statement that specific relationship you expect to find from your examination of
these variables. When formulating the hypothesis(es) for your study, there are a few things you
need to keep in mind. Good hypotheses meet the following criteria:

Identify the independent and dependent variables to be studied.

Specify the nature of the relationship that exists between these variables.
Simple (often referred to as parsimonious). It is better to be concise than to be longwinded. It is also better to have several simple hypotheses than one complicated

Does not include reference to specific measures.
Does not refer to specific statistical procedures that will be used in analysis.
Implies the population that you are going to study.
Is falsifiable and testable.

Page | 26

As indicated above, it is better to have several simple hypotheses than one complex one.
However, it is also a good idea to limit the number of hypotheses you use in a study to six or
fewer. Studies that address more hypotheses than six will often be too time consuming to keep
participants interested, and uninterested participants do not take the importance of their
responses as seriously. Another advantage to limiting the number of formal hypotheses you
formulate is that too many can make the discussion section of your paper very hard to write.
It is important to remember that you do not have to have a formal hypothesis to justify all
comparisons and statistical procedures you might use. For instance, it is only when you start
doing exploratory analysis of your data that you realize that gender is an influencing factor. You
do not have to back up and write a hypothesis that addresses this finding. In fact, it is better in
most cases to not do this. You can report any statistical findings you feel are relevant, whether or
not you have a hypothesis that addressed them.
The final criterion listed above warrants additional mention. A good hypothesis is not only
testable, that is, something you can actually test for in your study, but is must also be falsifiable.
It is tempting to ignore this requirement, especially as a new researcher. We want so badly to find
great things, and for our study to turn out exactly as we expect it to, that we tend to ignore the
possibility that we dont know everything and that no prediction is failsafe when it comes to
humans. Try to keep in mind that all research is relevant. Whether or not your findings are what
you expect, you will find something. Believe it or not, failing to find group differences can be
just as important as finding expected group differences. In fact, studies that return results in
opposition to what we were hoping for, or believed would logically occur, often lead to many
more great studies than we could have hoped for. After all, it could be great for the findings of
your current research to act as a guiding principal to your future research it is likely that this
would require less work in terms of literature review, as you would always be familiar with at
least a portion of the literature that is relevant to your latest study!

Page | 27

Chapter 3: Company survey

Spice Jet is a second largest company who is having a low-cost airline. Earlier it was known as
Royal Airways, and this Royal Airways was known as Modiluft. And this was the first private
company which had kept their step into Indian Aviation Sector. And in the year 2005 it change its
name to Spice Jet. There was a objective for launching of a lower cost fares with a very high
consumer value, with this the company had enjoyed the market share of 8%. (SpiceJet Ltd).

23rd May 2005

Head office:

New Delhi


Mr. Ajay Singh


Airlines / Aviation



Page | 28

Spice jet had its own 11 Boeing 737 to 800 aircraft. And currently it is operating 83 flights daily
which are connected to the 14 destination and it is highest in India for the utilization of aircraft.
In the year 2008 the Spice jet is awarded as emerging company of the year. It is ranked among
the top 10 airlines in Asia. (SpiceJet Ltd).
This project is on how strategies are important to face the competition in global market. I have
done this project on Indias low cost airlines Spice jet. The strategies which are in use by Spice
jet because spice jet is providing lowest air fares to people. I have done External analysis with
help of EFE matrix, Industry life cycle and Internal Analysis with help of VRHN Resources,
Profit Resources, Supply Chain Management and IFE matrix. After analyzing internal and
external factors I gave a look to vision and mission of company and saw the current strategies to
achieve this mission and vision. Company is doing very well and some strategies are very good
like, flying at 38,000 feet at place of 34,000 for savings of fuel and tie ups with Star Navigation,
Russell Adams and Tech Log. These tie-ups are providing technology benefits to company.
Company can also go and expand their business to Nepal, Burma and Bhutan. So that company
can give benefits to more customers and do progress.

The External Environment

The External Factor Estimation Matrix (EFE)
This sector is largely affected by the tourism sector as well as the policies of Indian
government. I have counted some key factors like the growth of tourism sector; number of
passenger is anticipated to increase and increasing wealth and lifestyle of Indian middle
class as key opportunities. I marked these opportunities and given them more weight age
because the growth rate of tourism increase the number of passenger and increase in the
wealth of Indian middle class ultimately help this sector because increase purchasing power
allows them to travel frequently through airlines.
While I have counted overregulation of industry by government, international terrorism and
attrition rate of industry as major threats. I have included these as major threat because
overregulation of the industry is not good for sector, attrition rate is very high and trained
pilots are scarce. International terrorism has come up as a very big threat for the industry in
Page | 29

the recent years (India's struggling airlines, 2009) (Indian aviation industry to suffer $1.5b
loss, says IATA, 2010) (Sulaimani, 2010)
Analysis of External factor Estimation (EFE)

As I already pointed out some key opportunities and threats for the airline industry. After
this I have put them weight age and rank as per the understanding. At the end I counted the
whole score for Spice Jet and it comes up as 2.1. The ideal score is said about 2.5 and more.
It indicates me that SpiceJet is not utilizing the external environment properly but this score
is also not too far from the ideal so I can say that if it tries a little more it can match to idea.
The Internal Assessment
The Internal Factor Estimation (IFE)
The Internal factor analysis is done to analyze how well the company is using its resources.
The objective behind this analysis is to find out what is the companys key strength which it
can convert in competitive advantage and what are the companys weaknesses where it has
to improve. I have identified some key strength which Spice Jet has in present. The foremost
strength of this company is its promise for the lowest fare at any route where it exists. It is
also important from this prospective that it has grown up its image in the mindset of
customers as the cheapest airline. This company also has the tie-up with Indias leading
bank State Bank of India (SBI) for ticketing. Its management team is also proving as
strength for them as they have international experience of managing low cost airlines
(Spicejet and Galileo sign Agreement for Exclusive Access to Low Fares, 2006), (Singhal,
2008), (SpiceJet is the most preferred airline in India, 2009), (SpiceJet appoints Senior
Managers , 2009), (SpiceJet wins National Award for Cost Management, 2009)
The main weakness of the company is their aircrafts; due to this they are unable to give
good service to customers. They are not concentrating on advertising and we can say that
there advertising is inadequate. Also they have to come with some new idea of cost
efficiency to increase revenue because company is not making sufficient profit from existing

Page | 30

Analysis of Internal Factor Analysis Matrix (IFE)

After pointing out all the strengths and weaknesses of the company I have given them
appropriate weight age and ranking. At the end I got the whole score as 2.5. The ideal score
for this matrix is also 2.5 and more. It means that company is exploiting its strengths and
trying to improve its weaknesses. But it still can improve because the ideal is more than 2.5
and companys score is 2.5 so there is a scope for improvement and it is done by utilizing
the strengths properly.

The Organizational Purpose

Spice Jet's vision is to ensure that flying is not only restricted to CEO's and business
To become Indias preferred low-cost airline, delivering the lowest air fares with the highest
consumer value, to price sensitive consumers.

Strategy Analysis and Choice

Internal-External Matrix (IE)
The IE matrix is an important strategic tool which is use to explain the working situation
and the strategic position of the company. It includes both the external as well as the internal
aspects which affect the company; based on the scores IFE and EFE we decide the
companys spot in the Matrix. The matrix is divided into nine grids and the position of the
company in the grid will devote their strategy. The X-axis denotes IFE matrix score while
the Y indicates EFE matrix score.
Spice Jet with the score 2.50 in IFE matrix and 2.10 in EFE matrix, falls in 5 th grid which
shows that it needs to hold, sustain and maintain their position in the competitive market.
They should gradually look for opportunities for growth and market enhancement. Hence
the company should give attention to more on product development and market penetration
for in market profit maximization. As we already mentioned that in Indian market, there is a
huge competition and very low margins available. So they can concentrate over few new

Page | 31

routes where no or low competition exist like north-east India and neighbor countries of
TOWS Matrix
In the TOWS matrix we use companys internal strength, weakness and external opportunities,
threats to make strategy. As we already mentioned strength, weakness, opportunities and threats
under IFE and EFE matrix so now we directly move to make strategy and don not mention these
We have made some strategies for company to use opportunities and strength to eliminate
weakness and threats. The complete strategy formulation by TOWS is given in Annexure 3.
SO strategies:
This strategy is made by using companys strength and opportunities for him. In this strategic
state the company should give attention to take advantage of both the strength and opportunities.
The company can go ahead from strengths, operating resources to become market leader of the
market for its products and services.
As company is known among customer as the cheapest airline of India as well as India has a
huge market potential so we like to give advice that Spice Jet should act aggressively and start
services on some more route, it can also enhance its market by starting in Bangladesh, Nepal and
Burma.. By doing this they can take first mover advantage because there is no low cost airline
existing on this route.
WO strategies:
This strategy is made by using weakness and opportunities for company. Strategy under this
section more emphasize over minimizing and eliminating the weaknesses through opportunities.
This is important because a company can categorize opportunities in the external environment
but its own weaknesses which avert the firm from taking benefit.
Spice Jets major weakness is its cargo efficiency and its carriers which are on lease. Spice Jet
can do one thing is that there are FDI investors available to give financial aid so it can return its
Page | 32

low efficient leased carrier and purchase new high efficient carrier. It will also help it in cost

ST strategies:
This strategy is made by combining strengths of the organization which can deal with threats.
The objective is to make best use of the strength while curtailing the threats. This still does not
indicate that a company can meet or eliminate threats in the external environment directly. A
company can only try to lessen the threats by through its strengths.
There are many threats where we cannot do much but for few we can make strategy. There is a
shortage of pilots in India so they can make a contract with pilot training institutes for pilots. To
stop attrition rate they can sign a long term contract with pilots so they became legally bound and
cannot leave company. Because of high competition in the segment there are a very little
margins, for more margins they can start giving added services like showing movie in flight or
describing the outer scenario as on where we are flying etc. These services can be charged or
given for free but these services can give Spice Jet a competitive advantage.
WT strategies:
These strategies are made up by combining weakness and threats. In broad sense, the aim is to
minimize both weaknesses and threats. A company must have to eliminate a big disaster
It is very difficult to make strategy with weaknesses and threats in account. But we tried to come
up with some possible solutions. As we already mentioned that this is airport infrastructure is not
good and it is affecting service of Spice Jet. Spice Jet can highlight this in its advertising that
despite the poor infrastructure and facilities we are providing cheaper and good services. It can
be helpful to get customers attention and sympathy. The biggest threat is the intense competition
and price war so the best way to eliminate this is horizontal integration. They should act
aggressively and acquire Go Air
Grand Matrix

Page | 33

The Grand strategy is used as a instrument to produce the strategies based on two parameters i.e.
competitive position and the market share. From the IFE and EFE matrix analysis we found that
Spice Jet is not competitively well positioned in the high growth market. Spice Jet does not
utilizing its competitive advantage properly. So they lie in the 2 nd quadrant of growth matrix. It
consists of many strategies like market development, market penetration, product development,
horizontal integration, divestiture and liquidation.
Among these we will like to suggest market development and horizontal integration. As we
already mentioned that how they can develop their market by moving into Indias neighbour
countries. They can also concentrate on mergers and acquisitions. They can think to merge with
Go Air. Because it is a small developing low cost airline. Merger with this company can
benefit Spice Jet because it will reduce competition as well as it will increase their market share
which lead to strong financial position.

Quantitative Strategy Planning Matrix (QSPM)

The QSPM is a high level strategic planning approach for estimating the feasible set of
strategies. This is an analytical way of strategy formulation where we compare our strategies on
various factors. After analyzing the whole we came to 2 possible strategies for Spice Jet: 1. They should go international by launching services in Bangladesh, Srilanka, Nepal and
2. They should acquire some new players in market like Go Air.

Current Strategies
In this time period where economy is slowly recovering from economic slowdown Spice Jet
has some strategy which they are using now. Spice Jet is a low cost airline in an intense
competition industry where profit margins are low. To survive in this scenario they are using
some strategies, which are as followsThey flight at a height of 38000 feet which increase their fuel efficiency by 10%. (Outlook
business, n.d.)
Page | 34

Spice jet is paying to oil companies and flight operators before due date, so that they can
avail discount and minimize their cost. (Outlook business, n.d.)
It has a tie-up with KLM Royal Dutch airlines for the maintenance support of its fleet. KLM
is the oldest airline in the world and is well-known for the maintenance of fleets. Through
this Spice Jet is getting fuel efficiency which further allows them to offer lowest fares
(SkyTeam partners and alliances).
Spice Jet has launched its own Cadet Pilot Program to save itself from the shortage of
Pilots. But this strategy is not working up to expectation (United Aviation to train SpiceJet
pilots, 2006).
It has tie-up with Star Navigation, Russell Adams and Tech Log for state of the art
technology (corporate overview).
It also announces some promotional schemes to recognize itself in customers such as it
announced that on the occasion of 60 th Republic Day it will give a 100% discount to defense
personnel from 26 January 2010 to 26 March 2010 (SpiceJet offers 100% discount for Army
men , 2010)

Page | 35
SpiceJet posts profit of Rs 109 cr. (2010, 01 22). Retrieved 02 05, 2010, from

SpiceJet wins National Award for Cost Management. (2009, 03 17). Retrieved 01 05, 2010,


Sulaimani, K. (2008, 11 12). Aviation industry no more a hot career. Retrieved 12 11, 2009,

Tourism to open up in Sri Lanka's north after LTTE's defeat . (2009, 07 22). Retrieved 02 05,
2010, from
United Aviation to train SpiceJet pilots. (2006, 11 20). Retrieved 02 05, 2010, from


Page | 36