Research Design

Business Research Methods

By Dr Vipin Khurana IBS Noida

May 5, 2012

Topic & Structure of the lesson

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Topic Outline Nature of, Overview and Classification of Design Developing an appropriate research design Experimental research design: Basic Designs & Statistical Designs Types & validity of experimental design external & internal

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Learning Outcomes
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On completion of this chapter you should be able to understand: Understand the major descriptors of research design Understand the major types of research designs Understand the relationships that exist between variables in causal designs and the steps for evaluating those relationships

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RESEARCH DESIGNS:OVERVIEW
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After the initial phase of research process, the

researcher designs the formal research project and identifying the appropriate sources of data for the study. The noun `design' has various meanings, but suitable for our purpose is a pattern/ an outline of a research project. It is a statement of only the essential elements of a study, those that provide the basic guidelines for details of the project. A research design is like a description of a `model'
May 5, 2012

RESEARCH DESIGN: DEFINITION

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Research design constitute the blueprint for the collection,

measurement and analysis of data. Research design is the plan and structure of the investigation so conceived as to obtain answers to research question. It includes an outline of what the investigator will do from writing the hypothesis and their operational indicators to the final analysis of the data. These definitions differ in detail, but together they give the essentials of research design: An activity- and time based plan. A plan always based on the research question. A guide for selecting sources and types of information. A framework for specifying the relationship among the studys variables. A procedural outline for every research activity.

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Why Research Design is needed?

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Clarity: Without RD the researcher does not know what to do. It

is extremely desirable that the design be put in writing because this will prevent a study to go astray. Relevance: When the researcher is deciding specially what data are needed. Ease in Analysis and Interpretation: Keep the computations and thinking on the path to solutions and recommendations. Economy: Just as the house built without a blue print is likely to cost more because of midstream alterations in constructions, a study is likely to cost more without formal design. In a nutshell a research design ensures that the study 1) will be relevant to the problem, and 2) will use economic procedures. However, one should not conclude that a design should have a very rigid framework. There should be some room for flexibility.

May 5, 2012

Classification of Research Designs:

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RDs are classified according to the research objectives. One classification: exploratory, descriptive & causal. Katz suggested

two types, exploratory and hypothesis testing. RDs may be broadly classified as exploratory or conclusive Exploratory research (ER) is used to define the problem precisely, identify courses of action, or gain additional insights. It is flexible and unstructured. Sample selected is small & non-representative. The primary data are qualitative. Findings are tentative.
Conclusive research is more formal and structured than ER. It is

based on large, representative samples, and the data are subjected to quantitative analysis. Findings are conclusive. Used in managerial decisions. These may be either descriptive or causal.
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DIFFERENCES BETWEEN EXPLORATORY AND CONCLUSIVE RESEARCH

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Exploratory

Conclusive

Objective:

To provide insights and understanding. Information needed is defined only loosely Research process is flexible and unstructured Sample is small and nonrepresentative Analysis of primary data is qualitative. Tentative

To test specific hypotheses and examine relationships Information needed is clearly defined. Research process is formal and structured Sample is large and representative. Data analysis is quantitative. Conclusive

Characteristic s:

Findings/Resu lts:

Outcome:

Generally followed by further exploratory or conclusive research

Findings used as input into decision making

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Descriptors of Research Design

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Category
The degree to which the research question has been crystallized The method of data collection The power of the researcher to produce effects in the variables under study The purpose of the study The time dimension The topical scopebreadth and depthof the study The research environment

Options
Exploratory study Formal study Monitoring Communication Study Experimental Ex post facto Descriptive

Causal
Cross-sectional Longitudinal Case Statistical study Field setting Laboratory research Simulation

The participants perceptions of the research activity

Actual routine Modified routine

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The Degree of Structure

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Exploratory Study Loose structure Expand understanding Provide insight Develop hypotheses

Formal Study Precise procedures Begins with hypotheses Answers research questions

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Methods of Data Collection

Monitoring

Communication

Causal Studies
Experiment Study involving the manipulation or control of one or more variables to determine the effect on another variable Ex Post Facto study After-the-fact report on what happened to the measured variable

Descriptive Studies

Descriptions of population characteristics

Estimates of frequency of characteristics Discovery of associations among variables

Causal Studies

Symmetrical Reciprocal

Asymmetrical

The Time Dimension

Cross-sectional

Longitudinal

The Topical Scope

Statistical Study

Breadth
Population inferences Quantitative Generalizable findings

Case Study Depth Detail Qualitative Multiple sources of information

The Research Environment

Field conditions Lab conditions

Simulations

Participants Perceptions

No deviation perceived Deviations perceived as unrelated Deviations perceived as researcher-induced

Experimental Design
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Obtaining the proper information within an acceptable accuracy range for a cost that does not exceed the value of the information
Tull and Hawkins: Experimentation is one that involves the

manipulation of one or more variables by the experimenter in such a way that its effect on one or more other variables can be measured".
Fed N. Kerlinger: "An experiment is taken to mean a scientific investigation in which

an investigator manipulates and controls one or more independent variables and observes the dependent variable or variables for variation concomitant. An experimental design, then is one in which the investigator has direct control over at least one independent variable and manipulates at least one independent variable".
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Experimental Designs
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Types: Basic Designs & Statistical Designs Basic Designs: Considers the impact of only one independent variable at a time 1. After-Only Design; 2. Before-After Design 3. Before-After With Control Design 4. Simulated Before-After Design 5. After-Only with Control 6. Solmon Four-Group Design
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Types of Experimental Design

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Statistical Design: Allows the evaluation of the effect of

more than one independent variable 1. Block design

2. Randomized Block Design

3. Latin Square design 4. Factorial Design

Various Symbols in Experimental designs:

MB = pre-measurement of the dependent variable i.e. before the introduction/manipulation of the independent variable. MA = post-measurement of the dependent variable i.e. during the introduction/manipulation of the independent variable. X = treatment; the actual introduction or manipulation of the independent variable May 5, 2012 R = designation/notation that the group is selected randomly

Basics Experimental Designs

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After-Only design: involves manipulating the

independent variable and following this with a postmeasurement, or symbolically: X MA Ex. Ford Motors company spent $500,000 on such exp. In Dallas & in
San Deiego. Sent engraved invitations to women to attend dealer showroom parties and served wine & cheese. Latest Clothing Fashions displayed by models & Ford automobiles were shown in no pressure situation. Subsequent purchase by those who attended the party was one measure to measure the success of the experiment. Advantages/Disadvantages: Typical most new-products test markets example. Results difficult to interpret & subject to numerous errors. Requires substantial market knowledge & subjective judgment. Should be used with care.

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Basics Experimental Designs

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Before After Design: It involves a pre-measurement in

addition: MB X MA The result of interest: (MA MB) i.e. considerable advantage over After-Only. Ex. To estimate the effect of price increase on market share. Researcher must be alert to the possibility that extraneous variable caused the result than the independent variable. Hence unless the researcher is confident that extraneous variables are not operating or that he/she can control their effect, before after design should be avoided. Above two tests Quasi-experimental Design
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Before-After with Control Design

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Involves the addition of a control Group to the Before-After

Design:

R R

MB1 MB2

MA1 MA2

Can control all potential errors except mortality & interaction.

Measure of interest: (MB1 MA1) (MB2 MA2)

Ex. A Firm wishes to test the impact of a P-O-P display. Ten retail stores
selected for inclusion in the treatment group, another ten for the control group. Sales measured in each group of stores, before and after the new P-O-P display. The change in sales of the two group is compared. Controls any initial inequalities between the sales group. In cases where the interaction is unlikely and control for history and selection errors is important, the before-after with control group design is the best design in terms of cost and error control.
May 5, 2012

Simulated Before After Design

Controls pre-measurement & interaction errors in
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experiments dealing with attitude and knowledge of human subjects. Uses separate groups for the pre & post measurement: R MB R X MA Measure of interest= (MA MB) Different individuals receives the pre- & post measurements, there can be no pre-measurement or interaction effect.

Ex. Advertising Research. Large sample-Questionnaire- attitude towards

the product (pre-measurement) Advertisement (Change in the independent variable) second sample of respondents, same questionnaire (post-measurement). Thus difference in the two scores can contribute to the effect of advertising campaign.
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After-Only with Control design

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If it is likely that the groups are initial equal on the

variable of interest then there is no reason to go to the expense of pre-measurement. Instead an afteronly with control design can be used. R X1 MA1 R MA2 Measure of interest: (MA2 MA1)

May 5, 2012

Solomon Four-Group Design

27 Consists of Four Groups, two treatment + two control and six measurements: two premeasurements + Four post-measurements: R MB1 X MA1 R MB2 MA2 R X MA3 R MA4 It controls all sources of experimental errors except measurement timing & reactive error which is not subject to control by designs. No single method of analysis makes use of all six measurement methods simultaneously The four-group six-study design may be taken as a model for marketing experiments, has little practical value. The expense of selecting four groups randomly and making six studies among these groups make this design impractical for most marketing studies. Despite these practical and theoretical weaknesses the four-group six-study design as useful ideal against which to compare proposed designs.

May 5, 2012

Statistical designs
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Completely randomized Design:

Treatments are applied to the experimental units entirely by a chance process. Statistical tool used - ANOVA

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Statistical Designs
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Randomized Block Design(Two Way ANOVA): In RBD the experimental units are blocked, that is, grouped or stratified, on the basis of extraneous or blocking variable. Ex. Assume that a total sample of 800 males and 400 females is available. Individuals are assigned to blocks based on their gender, producing one block of 400 females and one block of 800 males. The individuals within each block are randomly assigned to treatment groups. The use of ANOVA then allows the researcher to determine the impact of the commercial on the overall group as well as its impact on the males and females subgroups.

May 5, 2012

Factorial Design
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Used to measure the effect of two or more independent variables at same time and to measure the interaction effect of the variables. Interaction occurs when the simultaneous effect of two or more variables is different from the sum of their effects taken one at a time. Ex. Ones favorite color might be gray & favorite desert might be ice-cream. However it does not follow that he/she would prefer gray ice-cream.

May 5, 2012

Factorial Design
Ex. Consider the problem of determining the proper concentration of sugar & flavor in a soft drink. One approach may be to make a batch of optimum mixture and have a sample consumer taste it and indicate and order of preference. Another approach may be: makeup several batches with different level of sugar content and flavor constant. Consumer may then taste and indicate a preference. Later on sugar could be held constant and flavor varied. Later approach may indicate that heavy sugar and heavy sugar were preferred. May not be valid always. The fact may be when the flavor is strong, the sugar may be less desirable. So its important to test various levels of sugar content combined with various levels of flavor

Factorial Design
Suppose four degrees/levels each were selected as possible

characteristics of the final product. Sixteen combinations can be made as follows & be given to sample of consumers.. With say some preference from 1-10 Hypothetically:
Flavor Intensity 1 2 3 4 Sugar Content

1
A 4.9 E 6.1 I 8.1 M 6.2

2
B- 6.0 F 7.3 J - 9.2 N 6.4

3
C 5.0 G 5.1 K 8.3 O 6.2

4
D 3.6 H 3.8 L 4.6 P 3.2

Second degree of sugar content & third degree of flavor are

preferred over others. The combination of these two is the product formula as per FD.

Latin Square design

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With the Latin Square design one can control variation in two

directions. The design requires that extraneous or blocking variables be divided in to an equal no. of blocks or levels, such as drugstores, supermarkets and discount stores. The independent variables be divided in to the same no. of levels, such as high price, medium price & low price. -Treatments are arranged in rows and columns -Each row contains every treatment. -Each column contains every treatment. -The most common sizes of LS are 5x5 to 8x8 Advantages of the LS Design 1. You can control variation in two directions. 2. Hopefully you increase efficiency as compared to the RBD.
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Latin Square Design

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Disadvantages of the LS Design: 1. The number of treatments must equal the number of replicates. 2. The experimental error is likely to increase with the size of the square.

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Latin Square Design

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Ex. A researcher wishes to evaluate the three alternative shelf

arrangements (A, B & C) by observing the sales generated by each variation by each of the three stores in each of the three periods. He design an experiment:
Time Period Stores 1 2 3

1
2 3

A
C B

C
B A

B
A C

Such a pattern in which each letter is represented once and in each row

and column is called a Latin Square. Comparison among treatment will be free from the difference between rows(here, time period) and between columns (here, stores)
May 5, 2012

Validity
Validity:

The degree of confidence researchers and managers can have in the results of the study. Two Goals: 1. draw valid conclusions about the impact of independent variable on the study group, 2. Should be able to generalize the findings to a larger popn of interest. The first objective is related with what is known as internal validity. The second is related with external validity. Internal Validity: Whether the manipulation of the independent variable(s) actually caused effects on the dependent variable(s). If the experiment is successful in eliminating the effects of other factors which may obscure the relationships one may, conclude that the effect that was observed was due to the manipulation of experimental variable, i.e., the experiment is internally valid. Control of extraneous variables is a necessary condition for establishing internal validity.
May 5, 2012

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Validity

External validity: Degree to which the results can be generalized across populations, setting and other similar conditions. The cause and effect relationship found between the ind. and dep. variable can be generalized in other similar situations? In most of the experiments the data are collected through sampling process and not from population . It is desirable to have an experimental design that has both external and internal validity. Some major classes of variables that may affect validity/generate experimental error: i) History (ii) Maturation (iii) Testing Effects (iv) Instrumentation (v) Selection Bias (vi) Mortality

Business Research Design

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SUMMARY

May 5, 2012

References:
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1. 2.

3.
4.

Business Research Methods Cooper, Schindler; Tata Mc Graw Hills Marketing Research G C Beri; Tata Mc Graw Hills. Business Research Methods William G Zikmund; Thomson. Marketing Research Tull, Hawkin; PHI

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Q&A

May 5, 2012

Thank you!