333861951-Research-Method-Slides-chap-1-13-complete.pptx

Research Methods
for Business
Research Methods
for Business
Chapter 1
Introduction to Research
Dr. Muhammad Iftikhar Ali

Research Methods
for Business
Research Methods
for Business
Research Methods for Business
Chapter 1

Research Methods
for Business
Definition of Business Research
• Business research: an organized and
systematic inquiry or investigation into a
specific problem, undertaken with the
purpose of finding answers or solutions to it.

Research Methods
for Business
Applied versus Basic Research
• Basic research: generates a body of
knowledge by trying to comprehend how
certain problems that occur in organizations
can be solved.
• Applied research: solves a current problem
faced by the manager in the work setting,
demanding a timely solution.

Research Methods
for Business
Examples Applied Research
• Apple’s iPod fueled the company’s success in recent years, helping
to increase sales from $5 billion in 2001 to $32 billion in the fiscal
year 2008. Growth for the music player averaged more than 200% in
2006 and 2007, before falling to 6% in 2008. Some analysts believe
that the number of iPods sold will drop 12% in 2009. “The reality is
there’s a limited group of people who want an iPod or any other
portable media player,” one analyst says. “So the question becomes,
what will Apple do about it?”
• The existing machinery in the production department has had so
many breakdowns that production has suffered. Machinery has to
be replaced. Because of heavy investment costs, a careful
recommendation as to whether it is more beneficial to buy the
equipment or to lease it is needed.

Research Methods
for Business
More Examples of Research Areas in
Business
• Absenteeism
• Communication
• Motivation
• Consumer decision making
• Customer satisfaction
• Budget allocations
• Accounting procedures
© 2012 John Wiley & Sons Ltd.
www.wiley.com/college/sekaran

Research Methods
for Business
Why managers should know about
research
• Being knowledgeable about research and research methods
helps professional managers to:
– Identify and effectively solve minor problems in the work setting.
– Know how to discriminate good from bad research.
– Appreciate the multiple influences and effects of factors impinging on
a situation.
– Take calculated risks in decision making.
– Prevent possible vested interests from exercising their influence in a
situation.
– Relate to hired researchers and consultants more effectively.
– Combine experience with scientific knowledge while making decisions.

Research Methods
for Business
The Manager–Researcher Relationship
• Each should know his/her role
• Trust levels
• Value system
• Acceptance of findings and implementation
• Issues of inside versus outside
researchers/consultants

Research Methods
for Business
Internal Researchers
• Advantages:
– Better acceptance from staff
– Knowledge about organization
– Would be an integral part of implementation and
evaluation of the research recommendations.
• Disadvantages
– Less fresh ideas
– Power politics could prevail
– Possibly not valued as “expert” by staff

Research Methods
for Business
External Researchers
• Advantages
– Divergent and convergent thinking
– Experience from several situations in different
organizations
– Better technical training, usually
• Disadvantages
– Takes time to know and understand the organization
– Rapport and cooperation from staff not easy
– Not available for evaluation and implementation
– Costs

Research Methods
for Business
Research Methods
for Business
Chapter 2
Scientific Investigation

Research Methods
for Business
Hallmarks of scientific research:
• Hallmarks or main distinguishing
characteristics of scientific research:
– Purposiveness
– Rigor
– Testability
– Replicability
– Precision and Conﬁdence
– Objectivity
– Generalizability
– Parsimony

Research Methods
for Business
Hypothetico-Deductive Research
• The Seven-Step Process in the Hypothetico-
Deductive Method
– Identify a broad problem area
– Define the problem statement
– Develop hypotheses
– Determine measures
– Data collection
– Data analysis
– Interpretation of data

Research Methods
for Business
Deduction and Induction
• Deductive reasoning: application of a general
theory to a specific case.
– Hypothesis testing
• Inductive reasoning: a process where we
observe specific phenomena and on this basis
arrive at general conclusions.
– Counting white swans
• Both inductive and deductive processes are
often used in research.

Research Methods
for Business
Research Methods
for Business
Chapter 3
Introduction to Research
The Research Process - The Broad Problem
Area and Defining the Problem Statement

Research Methods
for Business
The Broad Problem Area
• Examples of broad problem areas that a
manager could observe at the workplace:
– Training programs are not as effective as
anticipated.
– The sales volume of a product is not picking up.
– Minority group members are not advancing in
their careers.
– The newly installed information system is not
being used by the managers for whom it was
primarily designed.
– The introduction of flexible work hours has
created more problems than it has solved in many
companies.
16

Research Methods
for Business
Preliminary Information Gathering
• Nature of information to be gathered:
– Background information of the organization.
– Prevailing knowledge on the topic.
17

Research Methods
for Business
First Review of the Literature
• Helps the researcher to:
– Structure research on work already done
– Develop problem statement with precision and
clarity
• Is beneficial in both basic and applied research
projects

Research Methods
for Business
Critical Literature Review
• A literature review is “the selection of
available documents (both published and
unpublished) on the topic, which contain
information, ideas, data and evidence written
from a particular standpoint to fulfill certain
aims or express certain views on the nature of
the topic and how it is to be investigated, and
the effective evaluation of these documents in
relation to the research being proposed”
(Hart, 1998, p. 13).

Research Methods
for Business
Functions Literature Review
• Research builds on existing knowledge
• One does “reinvent the wheel”
• Look at a problem from a specific angle
• Find out what variables are important to consider
• Introduce relevant terminology/provide
definitions
• Provide arguments for the relationships variables
• Testability and replicability are enhanced.
• Research findings are related to findings of
others.

Research Methods
for Business
Data sources
• Textbooks
• Academic and professional journals
• Theses
• Conference proceedings
• Unpublished manuscripts
• Reports of government departments and
corporations
• Newspapers
• The Internet

Research Methods
for Business
Searching for literature
• Most libraries have the following electronic
resources at their disposal:
– Electronic journals
– Full-text databases
– Bibliographic databases
– Abstract databases

Research Methods
for Business
Evaluating the literature
• Titles
• Abstract
• Table of contents/first chapter book
• Number of citations

Research Methods
for Business
Documenting the Literature Review
• Literature review introduces
– Subject study
– Highlights the problem
– Summarizes work done so far

Research Methods
for Business
A good problem statement
• Research objective: why of the research
• Research objective applied research:
– to solve a specific problem in a work setting;
– to change something.
• Example:
– To determine factors that increase employee commitment to the
organization;
• Allows manager to increase commitment and hence to decrease
turnover, absenteeism and increase performance levels.

Research Methods
for Business
Example
The purpose of this study is twofold:
1. to identify the factors that influence the
passenger’s waiting experience and
2. to investigate the possible impact of waiting
on customer satisfaction and service
evaluations.

Research Methods
for Business
A good problem statement
• Research questions:
– what of the research (what do you want to learn?)
– Translates problem into a specific need for information
• Research questions:
– Are related to the objective
– If objective is unclear we will not be able to formulate research questions
• Example:
– What are the factors that affect the perceived waiting experience of airline
passengers
– To what extent do these factors affect the perception of waiting times?
– What are the affective consequences of waiting
– How does affect mediate the relationship between waiting and service
evaluations?
– How do situational variables (such as filled time) influence customer reactions to
the waiting experience?

Research Methods
for Business
Good problem statement
• Relevant
– for the organization
• Feasible
– you are able to answer the research questions
within the restrictions of the research project.
• Interesting
– to you!

Research Methods
for Business
The research proposal
• The research proposal drawn up by the
investigator is the result of a planned,
organized, and careful effort.

Research Methods
for Business
Research Proposal contains (1)
• Working title.
• Background of the study.
• The problem statement.
- The purpose of the study.
- Research questions.
• The scope of the study.
• The relevance of the study.

Research Methods
for Business
Research Proposal contains (2)
• The research design offering details on:
a. Type of study
b. Data collection methods
c. The sampling design.
d. Data analysis.
• Time frame of the study
• Budget
• Selected bibliography.

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for Business
32
Chapter 4
Theoretical Framework & Hypothesis
Development

Research Methods
for Business
Theoretical framework
• Foundation deductive research project!
• Deductive research: moving from the general (a theory) to the
specific (observations).

Research Methods
for Business
Theoretical Framework
• A theoretical framework represents your
beliefs on how certain phenomena (or
variables or concepts) are related to each
other (a model) and an explanation on why
you believe that these variables are associated
to each other (a theory).

Research Methods
for Business
Theoretical framework
• Basic steps:
– Identify and label the variables correctly
– State the relationships among the
variables: formulate hypotheses
– Explain how or why you expect these
relationships

Research Methods
for Business
Variable
• Any concept or construct that varies or
changes in value
• Main types of variables:
– Dependent variable
– Independent variable
– Moderating variable
– Mediating variable

Research Methods
for Business
(In)dependent variables
• Dependent variable (DV)
– Is of primary interest to the researcher. The goal
of the research project is to understand, predict or
explain the variability of this variable.
• Independent variable (IV)
– Influences the DV in either positive or negative
way. The variance in the DV is accounted for by
the IV.

Research Methods
for Business
Example

Research Methods
for Business
Moderators
• Moderating variable
– Moderator is qualitative (e.g., gender, race, class)
or quantitative (e.g., level of reward) variable that
affects the direction and/or strength of relation
between independent and dependent variable.

Research Methods
for Business
Mediating variable
• Mediating variable
– surfaces between the time the independent
variables start operating to influence the
dependent variable and the time their impact is
felt on it.

Research Methods
for Business
Hypothesis
• A proposition that is empirically testable. It is an
empirical statement concerned with the
relationship among variables.
• Good hypothesis:
– Must be adequate for its purpose
– Must be testable
– Must be better than its rivals
• Can be:
– Directional
– Non-directional

Research Methods
for Business
Exercise
Give the hypotheses for the following framework:
Service
quality
Customer
switching
Switching
cost

Research Methods
for Business
Exercise
Give the hypotheses for the following framework:
Customer
satisfaction
Service
quality
Customer
switching

Research Methods
for Business
Argumentation
• The expected relationships / hypotheses are
an integration of:
– Exploratory research
– Common sense and logical reasoning

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for Business
45
Chapter 5
Elements of Research Design

Research Methods
for Business
Research Design

Research Methods
for Business
Purpose of the Study
• Exploratory
• Descriptive
• Causal

Research Methods
for Business
• Exploratory study:
– is undertaken when not much is known about the
situation at hand, or no information is available on
how similar problems or research issues have
been solved in the past.
• Example:
– A service provider wants to know why his
customers are switching to other service
providers?

Research Methods
for Business
• Descriptive study:
– is undertaken in order to ascertain and be able to describe the
characteristics of the variables of interest in a situation.
• Example:
– A bank manager wants to have a profile of the individuals who have
loan payments outstanding for 6 months and more. It would include
details of their average age, earnings, nature of occupation, full-
time/part-time employment status, and the like. This might help him
to elicit further information or decide right away on the types of
individuals who should be made ineligible for loans in the future.

Research Methods
for Business
• Causal study:
– Delineating one or more factors that are causing
the problem.
• Example:
– A marketing manager wants to know if the sales of
the company will increase if he increases the
advertising budget.

Research Methods
for Business
Extent of Researcher Interference
• Minimal interference
• Moderate interference
• Excessive interference

Research Methods
for Business
Study Setting
• Contrived: artificial setting
• Non-contrived: the natural environment
where work proceeds normally

Research Methods
for Business
Research Strategies
• Experiments
• Survey Research
• Observation
• Case studies
• Grounded theory
• Action research
• Mixed Methods

Research Methods
for Business
Population to be studied
• Unit of analysis:
– Individuals
– Dyads
– Groups
– Organizations
– Cultures

Research Methods
for Business
Time Horizon
• Cross-sectional studies
– Snapshot of constructs at a single point in time
– Use of representative sample
• Multiple cross-sectional studies
– Constructs measured at multiple points in time
– Use of different sample
• Longitudinal studies
– Constructs measured at multiple points in time
– Use of same sample = a true panel

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for Business
56
Chapter 6
Measurement of Variables:
Operational Definition

Research Methods
for Business
Measurement
• Measurement: the assignment of numbers or
other symbols to characteristics (or attributes)
of objects according to a pre-specified set of
rules.

Research Methods
for Business
(Characteristics of) Objects
• Objects include persons, strategic business units,
companies, countries, kitchen appliances,
restaurants, shampoo, yogurt and so on.
• Examples of characteristics of objects are arousal
seeking tendency, achievement motivation,
organizational effectiveness, shopping
enjoyment, length, weight, ethnic diversity,
service quality, conditioning effects and taste.

Research Methods
for Business
Types of Variables
• Two types of variables:
– One lends itself to objective and precise
measurement;
– The other is more nebulous and does not lend
itself to accurate measurement because of its
abstract and subjective nature.

Research Methods
for Business
Operationalizing Concepts
• Operationalizing concepts: reduction of
abstract concepts to render them measurable
in a tangible way.
• Operationalizing is done by looking at the
behavioral dimensions, facets, or properties
denoted by the concept.

Research Methods
for Business
Research Methods
for Business
62
Chapter 7
Measurement of Variables: Scaling,
Reliability, Validity

Research Methods
for Business
Scale
• Scale: tool or mechanism by which individuals
are distinguished as to how they differ from
one another on the variables of interest to our
study.

Research Methods
for Business
Nominal Scale
• A nominal scale is one that allows the researcher to assign subjects to
certain categories or groups.
• What is your department?
O Marketing O Maintenance O Finance
O Production O Servicing O Personnel
O Sales O Public Relations O Accounting
• What is your gender?
O Male
O Female

Research Methods
for Business
Nominal Scale

Research Methods
for Business
Ordinal Scale
• Ordinal scale: not only categorizes variables in such a way as
to denote differences among various categories, it also rank-
orders categories in some meaningful way.
• What is the highest level of education you have completed?
O Less than High School
O High School/GED Equivalent
O College Degree
O Masters Degree
O Doctoral Degree

Research Methods
for Business
Ordinal Scale

Research Methods
for Business
Interval Scale
• Interval scale: whereas the nominal scale
allows us only to qualitatively distinguish
groups by categorizing them into mutually
exclusive and collectively exhaustive sets, and
the ordinal scale to rank-order the
preferences, the interval scale lets us measure
the distance between any two points on the
scale.

Research Methods
for Business
Interval scale
• Circle the number that represents your feelings at this particular moment best.
There are no right or wrong answers. Please answer every question.
1. I invest more in my work than I get out of it
I disagree completely 1 2 3 4 5 I agree completely
2. I exert myself too much considering what I get back in return
3. For the efforts I put into the organization, I get much in return

Research Methods
for Business
Interval scale

Research Methods
for Business
Ratio Scale
• Ratio scale: overcomes the disadvantage of
the arbitrary origin point of the interval scale,
in that it has an absolute (in contrast to an
arbitrary) zero point, which is a meaningful
measurement point.
• What is your age?

Research Methods
for Business
Ratio Scale

Research Methods
for Business
Properties of the Four Scales
• Insert Table 12.1 here

Research Methods
for Business
Goodness of Measures

Research Methods
for Business
Validity

Research Methods
for Business
Reliability
• Reliability of measure indicates extent to
which it is without bias and hence ensures
consistent measurement across time (stability)
and across the various items in the instrument
(internal consistency).

Research Methods
for Business
Stability
• Stability: ability of a measure to remain the
same over time, despite uncontrollable testing
conditions or the state of the respondents
themselves.
– Test–Retest Reliability: The reliability coefﬁcient
obtained with a repetition of the same measure
on a second occasion.
– Parallel-Form Reliability: Responses on two
comparable sets of measures tapping the same
construct are highly correlated.

Research Methods
for Business
Internal Consistency
• Internal Consistency of Measures is indicative of
the homogeneity of the items in the measure
that tap the construct.
– Interitem Consistency Reliability: This is a test of the
consistency of respondents’ answers to all the items in
a measure. The most popular test of interitem
consistency reliability is the Cronbach’s coefﬁcient
alpha.
– Split-Half Reliability: Split-half reliability reflects the
correlations between two halves of an instrument.

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for Business
79
Chapter 8
Data Collection Methods:
Introduction and Interviews

Research Methods
for Business
Sources of Data
• Primary data: information obtained ﬁrsthand by the
researcher on the variables of interest for the specific purpose
of the study.
• Examples: individuals, focus groups, panels
• Secondary data: information gathered from sources already
existing.
• Examples: company records or archives, government
publications, industry analyses offered by the media, web
sites, the Internet, and so on.

Research Methods
for Business
Interviews
• Unstructured interviews:
– the interviewer does not enter the interview setting
with a planned sequence of questions to be asked of
the respondent.
• Structured interviews:
– Conducted when it is known at the outset what
information is needed.
– The interviewer has a list of predetermined questions
to be asked of the respondents either personally,
through the telephone, or via the computer.

Research Methods
for Business
Personal interview
• Advantages
– Can clarify doubts about questionnaire
– Can pick up non-verbal cues
– Relatively high response/cooperation
– Special visual aids and scoring devises can be used
• Disadvantages
– High costs and time intensive
– Geographical limitations
– Response bias / Confidentiality difficult to be assured
– Some respondents are unwilling to talk to strangers
– Trained interviewers

Research Methods
for Business
Telephone interview
• Advantages
– Discomfort of face to face is avoided
– Faster / Number of calls per day could be high
– Lower cost
• Disadvantages
– Interview length must be limited
– Low response rate
– No facial expressions

Research Methods
for Business
Self-administered
• Advantages
– Lowest cost option
– Expanded geographical coverage
– Requires minimal staff
– Perceived as more anonymous
• Disadvantages
– Low response rate in some modes
– No interviewer intervention possible for clarification
– Cannot be too long or complex
– Incomplete surveys

Research Methods
for Business
Projective Methods
• Word association techniques:
– Asking the respondent to quickly associate a word with
the first thing that comes to mind.
– Often used to get at true attitudes and feelings.
• Thematic apperception tests (TAT):
– Call for respondent to weave a story around a picture
that is shown.
– To trace patterns and personality characteristics of
respondents.
• Inkblot tests:
– Form of motivational research, uses colored inkblots
that are interpreted by respondents.

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Observation

Research Methods
for Business
Observation
• Observation involves going into ‘the field’, -
the factory, the supermarket, the waiting
room, the office, or the trading room -
watching what workers, consumers, or day
traders do, and describing, analyzing, and
interpreting what one has seen.

Research Methods
for Business
Examples
• Shadowing a Wall Street broker engaged in his
daily routine.
• Observing in-store shopping behavior of
consumers via a camera.
• Sitting in the corner of an office to observe
how a merchant bank trader operates.
• Working in a plant to study factory life.
• Studying the approach skills of sales people
disguised as a shopper.

Research Methods
for Business
Key dimensions characterizing type of
observation
• Controlled versus Uncontrolled Observational
Studies
• Participant versus Non-Participant
Observation
• Structured versus Unstructured Observational
Studies
• Concealed versus Unconcealed observation

Research Methods
for Business
Participant Observation
• The participatory aspect:
– Complete participation
– Moderate participation
– Active participation
• To what extent should I participate?

Research Methods
for Business
Participant Observation
• The observation aspect
– Obtaining permission
– Finding a ‘sponsor’
– Establishing rapport

Research Methods
for Business
What to observe?
• Descriptive observation stage:
– Space
– Objects
– Actors
– Feelings
– Events
Spradly, 1980

Research Methods
for Business
What to observe?
• Focused and selective observation stage:
– Look for a story line
– Sort out regular from irregular activities
– Look for variation in the storyline
– Look for negative cases or exceptions
– Develop a plan for systematic observation if
needed
DeWalt and DeWalt, 2002

Research Methods
for Business
Structured observation
• Looks selectively at predetermined
phenomena
• Different levels of structure

Research Methods
for Business
Coding schemes
• Focus
• Objective
• Ease of use
• Mutually exclusive and collectively exhaustive

Research Methods
for Business
Standard Coding Schemes
• Simple checklist
• Sequence record
• Sequence record on time scale

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97
Questionnaires

Research Methods
for Business
Questionnaire Design
• Definition
A questionnaire is a pre-formulated, written set of questions to
which the respondent records his answers
• Steps
1. Determine the content of the questionnaire
2. Determine the form of response
3. Determine the wording of the questions
4. Determine the question sequence
5. Write cover letter

Research Methods
for Business
1. Questionnaire content
• Framework
Need information for all constructs in
framework
• Measurement: Operationalizing
– Objective construct:
• 1 element/items
=> 1 question
– Subjective construct:
• multiple elements/items
=> multiple questions

Research Methods
for Business
2. Response format
• Closed vs. Open-ended questions
– Closed questions
• Helps respondents to make quick decisions
• Helps researchers to code
– Open-ended question
• First: unbiased point of view
• Final: additional insights
• Complementary to closed question: for
interpretation purpose
• Cfr. Measurement: Response scales

Research Methods
for Business
• Avoid double-barreled questions
• Avoid ambiguous questions and words
• Use of ordinary words
• Avoid leading or biasing questions
• Social desirability
• Avoid recall depended questions
3. Question wording

Research Methods
for Business
• Use positive and negative statements
– Dresdner delivers high quality banking service
Dresdner has poor customer operational support
– Avoid double negatives
• Limit the length of the questions
Rules of thumb:
– < 20 words
– < one full line in print
Question wording

Research Methods
for Business
4. Question sequence
Personal and sensitive data at the end

Research Methods
for Business
• The cover letter is the introductory page of
the questionnaire
• It includes:
– Identification of the researcher
– Motivation for respondents to fill it in
– Confidentiality
– Thanking of the respondent
5. Cover letter

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Chapter 9
Sampling

Research Methods
for Business
Sampling
• Sampling: the process of selecting a sufficient number of
elements from the population, so that results from
analyzing the sample are generalizable to the population.

Research Methods
for Business
Relevant Terms - 1
• Population refers to the entire group of
people, events, or things of interest that the
researcher wishes to investigate.
• An element is a single member of the
population.
• A sample is a subset of the population. It
comprises some members selected from it.

Research Methods
for Business
Relevant Terms - 2
• Sampling unit: the element or set of elements
that is available for selection in some stage of
the sampling process.
• A subject is a single member of the sample,
just as an element is a single member of the
population.

Research Methods
for Business
Relevant Terms - 3
• The characteristics of the population such as µ (the
population mean), σ (the population standard
deviation), and σ2 (the population variance) are
referred to as its parameters. The central tendencies,
the dispersions, and other statistics in the sample of
interest to the research are treated as
approximations of the central tendencies,
dispersions, and other parameters of the population.

Research Methods
for Business
Statistics versus Parameters

Research Methods
for Business
Advantages of Sampling
• Less costs
• Less errors due to less fatigue
• Less time
• Destruction of elements avoided

Research Methods
for Business
The Sampling Process
• Major steps in sampling:
– Define the population.
– Determine the sample frame
– Determine the sampling design
– Determine the appropriate sample size
– Execute the sampling process

Research Methods
for Business
Sampling Techniques
• Probability versus nonprobability sampling
• Probability sampling: elements in the
population have a known and non-zero
chance of being chosen

Research Methods
for Business
Sampling Techniques
• Probability Sampling
– Simple Random Sampling
– Systematic Sampling
– Stratified Random Sampling
– Cluster Sampling
• Nonprobability Sampling
– Convenience Sampling
– Judgment Sampling
– Quota Sampling

Research Methods
for Business
Simple Random Sampling
• Procedure
– Each element has a known and equal chance of being selected
• Characteristics
– Highly generalizable
– Easily understood
– Reliable population frame necessary

Research Methods
for Business
Systematic sampling
• Procedure
– Each nth element, starting with random choice of an element
between 1 and n
• Characteristics
– Idem simple random sampling
– Easier than simple random sampling
– Systematic biases when elements are not randomly listed

Research Methods
for Business
Cluster sampling
• Procedure
– Divide of population in clusters
– Random selection of clusters
– Include all elements from selected clusters
• Characteristics
– Intercluster homogeneity
– Intracluster heterogeneity
– Easy and cost efficient
– Low correspondence with reality

Research Methods
for Business
Stratified sampling
• Procedure
– Divide of population in strata
– Include all strata
– Random selection of elements from strata
• Proportionate
• Disproportionate
• Characteristics
– Interstrata heterogeneity
– Intrastratum homogeneity
– Includes all relevant subpopulations

Research Methods
for Business
(Dis)proportionate stratified
sampling
• Number of subjects in total sample is allocated among the
strata (dis)proportional to the relative number of elements in
each stratum in the population
• Disproportionate case:
– strata exhibiting more variability are sampled more than proportional
to their relative size
– requires more knowledge of the population, not just relative sizes of
strata

Research Methods
for Business
Overview

Research Methods
for Business
Choice Points in Sampling Design

Research Methods
for Business
Tradeoff between precision and
confidence
 We can increase both confidence and precision by
increasing the sample size

Research Methods
for Business
Sample size: guidelines
• In general: 30 < n < 500
• Categories: 30 per subcategory
• Multivariate: 10 x number of var’s
• Experiments: 15 to 20 per condition

Research Methods
for Business
Sample Size for a Given
Population Size

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126
Chapter 10
Quantitative Data Analysis

Research Methods
for Business
Getting the Data Ready for Analysis
• Data coding: assigning a number to the
participants’ responses so they can be entered
into a database.
• Data Entry: after responses have been coded,
they can be entered into a database. Raw data
can be entered through any software program
(e.g., SPSS)

Research Methods
for Business
Editing Data
• An example of an illogical response is an outlier response. An
outlier is an observation that is substantially different from
the other observations.
• Inconsistent responses are responses that are not in harmony
with other information.
• Illegal codes are values that are not specified in the coding
instructions.

Research Methods
for Business
Transforming Data

Research Methods
for Business
Getting a Feel for the Data

Research Methods
for Business
Frequencies

Research Methods
for Business
Descriptive Statistics: Central Tendencies
and Dispersions

Research Methods
for Business
Reliability Analysis

Research Methods
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Research Methods
for Business
134
Chapter 11
Quantitative Data Analysis:
Hypothesis Testing

Research Methods
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Type I Errors, Type II Errors and Statistical
Power
• Type I error (): the probability of rejecting
the null hypothesis when it is actually true.
• Type II error (): the probability of failing to
reject the null hypothesis given that the
alternative hypothesis is actually true.
• Statistical power (1 - ): the probability of
correctly rejecting the null hypothesis.

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Choosing the Appropriate Statistical
Technique

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Testing Hypotheses on a Single Mean
• One sample t-test: statistical technique that is
used to test the hypothesis that the mean of
the population from which a sample is drawn
is equal to a comparison standard.

Research Methods
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Testing Hypotheses about Two Related
Means
• Paired samples t-test: examines differences in
same group before and after a treatment.
• The Wilcoxon signed-rank test: a non-
parametric test for examining significant
differences between two related samples or
repeated measurements on a single sample.
Used as an alternative for a paired samples t-
test when the population cannot be assumed
to be normally distributed.

Research Methods
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Testing Hypotheses about Two Related
Means - 2
• McNemar's test: non-parametric method used
on nominal data. It assesses the significance
of the difference between two dependent
samples when the variable of interest is
dichotomous. It is used primarily in before-
after studies to test for an experimental effect.

Research Methods
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Testing Hypotheses about Two Unrelated
Means
• Independent samples t-test: is done to see if
there are any significant differences in the
means for two groups in the variable of
interest.

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Testing Hypotheses about Several Means
• ANalysis Of VAriance (ANOVA) helps to
examine the signiﬁcant mean differences
among more than two groups on an interval
or ratio-scaled dependent variable.

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Regression Analysis
• Simple regression analysis is used in a
situation where one metric independent
variable is hypothesized to affect one metric
dependent variable.

Research Methods
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Research Methods
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Scatter plot
30 40 50 60 70 80 90
PHYS_ATTR
20
40
60
80
100
LKLHD_DATE

Research Methods
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Research Methods
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Simple Linear Regression
Y
X
0
ˆ
0
ˆ

0
ˆ
0
ˆ
0
ˆ
0
ˆ
 `0
?
0
ˆ

i
i
i X
Y 

 


 1
0
1
̂
1

Research Methods
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Research Methods
for Business
Ordinary Least Squares Estimation
Yi
Xi
Yi
ei


n
1
i
2
i
Minimize e
ˆ

Research Methods
for Business
SPSS
Analyze  Regression  Linear
Model Summary
.841 .707 .704 5.919
Model
1
R R Square
Adjusted
R Square
Std. Error of
the Estimate
ANOVA
8195.319 1 8195.319 233.901 .000
3398.640 97 35.038
11593.960 98
Regression
Residual
Total
Model
1
Sum of
Squares df Mean Square F Sig.

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SPSS cont’d
Coefficients
34.738 2.065 16.822 .000
.520 .034 .841 15.294 .000
(Constant)
PHYS_ATTR
Model
1
B Std. Error
Unstandardized
Coefficients
Beta
Standardized
Coefficients
t Sig.

Research Methods
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Model validation
1. Face validity: signs and magnitudes make sense
2. Statistical validity:
– Model fit: R2
– Model significance: F-test
– Parameter significance: t-test
– Strength of effects: beta-coefficients
– Discussion of multicollinearity: correlation matrix
3. Predictive validity: how well the model predicts
– Out-of-sample forecast errors

Research Methods
for Business
SPSS
Model Summary
.841 .707 .704 5.919
Model
1
R R Square
Adjusted
R Square
Std. Error of
the Estimate

Research Methods
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Measure of Overall Fit: R2
• R2 measures the proportion of the variation in y that is explained by
the variation in x.
• R2 = total variation – unexplained variation
total variation
• R2 takes on any value between zero and one:
– R2 = 1: Perfect match between the line and the data points.
– R2 = 0: There is no linear relationship between x and y.

Research Methods
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SPSS
Model Summary
.841 .707 .704 5.919
Model
1
R R Square
Adjusted
R Square
Std. Error of
the Estimate
= r(Likelihood to Date, Physical Attractiveness)

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Model Significance
• H0: 0 = 1 = ... = m = 0 (all parameters are zero)
H1: Not H0

Research Methods
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Model Significance
• H0: 0 = 1 = ... = m = 0 (all parameters are zero)
H1: Not H0
• Test statistic (k = # of variables excl. intercept)
F = (SSReg/k) ~ Fk, n-1-k
(SSe/(n – 1 – k)
SSReg = explained variation by regression
SSe = unexplained variation by regression

Research Methods
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SPSS
ANOVA
8195.319 1 8195.319 233.901 .000
3398.640 97 35.038
11593.960 98
Regression
Residual
Total
Model
1
Sum of

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Parameter significance
• Testing that a specific parameter is significant (i.e., j  0)
• H0: j = 0
H1: j  0
• Test-statistic: t = bj/SEj ~ tn-k-1
with bj = the estimated coefficient for j
SEj = the standard error of bj

Research Methods
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Conceptual Model
Physical
Attractiveness
Likelihood
to Date
+

Research Methods
for Business
Multiple Regression Analysis
• We use more than one (metric or non-metric)
independent variable to explain variance in a
(metric) dependent variable.

Research Methods
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Conceptual Model
Perceived
Intelligence
Physical
Attractiveness
+
+
Likelihood
to Date

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Research Methods
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Model Summary
.844 .712 .706 5.895
Model
1
R R Square
Adjusted
R Square
Std. Error of
the Estimate
ANOVA
8257.731 2 4128.866 118.808 .000
3336.228 96 34.752
11593.960 98
Regression
Residual
Total
Model
1
Sum of
Coefficients
31.575 3.130 10.088 .000
.050 .037 .074 1.340 .183
.523 .034 .846 15.413 .000
(Constant)
PERC_INTGCE
PHYS_ATTR
Model
1
B Std. Error
Unstandardized
Coefficients
Beta
Standardized
Coefficients
t Sig.

Research Methods
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Conceptual Model
Perceived
Intelligence
Physical
Attractiveness
Likelihood
to Date
Gender
+ +
+

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Moderators
• Moderator is qualitative (e.g., gender, race, class) or quantitative
(e.g., level of reward) that affects the direction and/or strength of the
relation between dependent and independent variable
• Analytical representation
Y = ß0 + ß1X1 + ß2X2 + ß3X1X2
with Y = DV
X1 = IV
X2 = Moderator

Research Methods
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Research Methods
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Model Summary
.910 .828 .821 4.601
Model
1
R R Square
Adjusted
R Square
Std. Error of
the Estimate
ANOVA
9603.938 4 2400.984 113.412 .000
1990.022 94 21.170
11593.960 98
Regression
Residual
Total
Model
1
Sum of

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Research Methods
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Coefficients
32.603 3.163 10.306 .000
.000 .043 .000 .004 .997
.496 .027 .802 18.540 .000
-.420 3.624 -.019 -.116 .908
.127 .058 .369 2.177 .032
(Constant)
PERC_INTGCE
PHYS_ATTR
GENDER
PI_GENDER
Model
1
B Std. Error
Unstandardized
Coefficients
Beta
Standardized
Coefficients
t Sig.
interaction significant effect on dep. var.

Research Methods
for Business
Conceptual Model
Perceived
Intelligence
Physical
Attractiveness
Communality of
Interests
Likelihood
to Date
Gender
Perceived Fit
+ +
+
+
+

Research Methods
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Mediating/intervening variable
• Accounts for the relation between the independent and
dependent variable
• Analytical representation
1. Y = ß0 + ß1X
=> ß1 is significant
2. M = ß2 + ß3X
3. Y = ß4 + ß5X + ß6M
=> ß5 is not significant
With Y = DV
X = IV
M = mediator

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Step 1
Model Summary
.963 .927 .923 3.020
Model
1
R R Square
Adjusted
R Square
Std. Error of
the Estimate
ANOVA
10745.603 5 2149.121 235.595 .000
848.357 93 9.122
11593.960 98
Regression
Residual
Total
Model
1
Sum of

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Step 1 cont’d
Coefficients
17.094 2.497 6.846 .000
.030 .029 .044 1.039 .301
.517 .018 .836 29.269 .000
-.783 2.379 -.036 -.329 .743
.122 .038 .356 3.201 .002
.212 .019 .319 11.187 .000
(Constant)
PERC_INTGCE
PHYS_ATTR
GENDER
PI_GENDER
COMM_INTER
Model
1
B Std. Error
Unstandardized
Coefficients
Beta
Standardized
Coefficients
t Sig.
significant effect on dep. var.

Research Methods
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Step 2
Model Summary
.977 .955 .955 2.927
Model
1
R R Square
Adjusted
R Square
Std. Error of
the Estimate
ANOVA
17720.881 1 17720.881 2068.307 .000
831.079 97 8.568
18551.960 98
Regression
Residual
Total
Model
1
Sum of

Research Methods
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Step 2 cont’d
Coefficients
8.474 1.132 7.484 .000
.820 .018 .977 45.479 .000
(Constant)
COMM_INTER
Model
1
B Std. Error
Unstandardized
Coefficients
Beta
Standardized
Coefficients
t Sig.
significant effect on mediator

Research Methods
for Business
Research Methods
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Step 3
Model Summary
.966 .934 .930 2.885
Model
1
R R Square
Adjusted
R Square
Std. Error of
the Estimate
ANOVA
10828.336 6 1804.723 216.862 .000
765.624 92 8.322
11593.960 98
Regression
Residual
Total
Model
1
Sum of

Research Methods
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Research Methods
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Step 3 cont’d
Coefficients
14.969 2.478 6.041 .000
.019 .028 .028 .688 .493
.518 .017 .839 30.733 .000
-2.040 2.307 -.094 -.884 .379
.142 .037 .412 3.825 .000
-.051 .085 -.077 -.596 .553
.320 .102 .405 3.153 .002
(Constant)
PERC_INTGCE
PHYS_ATTR
GENDER
PI_GENDER
COMM_INTER
PERC_FIT
Model
1
B Std. Error
Unstandardized
Coefficients
Beta
Standardized
Coefficients
t Sig.
significant effect of mediator on dep. var.
insignificant effect of indep. var on dep. Var.

Research Methods
for Business
173
Chapter 12
Qualitative Data Analysis

Research Methods
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Qualitative Data
• Qualitative data: data in the form of words.
• Examples: interview notes, transcripts of focus
groups, answers to open-ended questions,
transcription of video recordings, accounts of
experiences with a product on the internet,
news articles, and the like.

Research Methods
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Analysis of Qualitative Data
• The analysis of qualitative data is aimed at
making valid inferences from the often
overwhelming amount of collected data.
• Steps:
– data reduction
– data display
– drawing and verifying conclusions

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Data Reduction
• Coding: the analytic process through which
the qualitative data that you have gathered
are reduced, rearranged, and integrated to
form theory.
• Categorization: is the process of organizing,
arranging, and classifying coding units.

Research Methods
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Data Display
• Data display: taking your reduced data and
displaying them in an organized, condensed
manner.
• Examples: charts, matrices, diagrams, graphs,
frequently mentioned phrases, and/or
drawings.

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Drawing Conclusions
• At this point where you answer your research
questions by determining what identified
themes stand for, by thinking about
explanations for observed patterns and
relationships, or by making contrasts and
comparisons.

Research Methods
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Reliability in Qualitative Research
• Category reliability “depends on the analyst’s
ability to formulate categories and present to
competent judges definitions of the categories
so they will agree on which items of a certain
population belong in a category and which do
not.” (Kassarjian, 1977, p. 14).
• Interjudge reliability can be defined degree of
consistency between coders processing the
same data (Kassarjian 1977).

Research Methods
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Validity in Qualitative Research
• Validity refers to the extent to which the
qualitative research results:
– accurately represent the collected data (internal
validity)
– can be generalized or transferred to other
contexts or settings (external validity).

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181
Chapter 13
The Research Report

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The Written Report
• The key purpose of any research report is to offer
a clear description of what has been done in the
various stages of the research process.
• Important to identify the specific purpose of the
report, so that it can be tailored accordingly.
• Examples
– Simple descriptive report
– Comprehensive report, offering alternative solutions

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Presentation of Results
• Results of the study and recommendations to
solve the problem have to be effectively
communicated to the sponsor, so that
suggestions made are accepted and
implemented.
• Contents and organization of written report and
oral presentation depend on the purpose of the
research study, and the audience to which it is
targeted.

Research Methods
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Characteristics of a Well-Written Report
• Clarity
• Conciseness
• Coherence
• The right emphasis on important aspects
• Meaningful organization of paragraphs
• Smooth transition from one topic to the next
• Apt choice of words
• Specificity

Research Methods
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Contents of Research Report
• Title
• Executive summary or abstract
• Table of contents
• List of Tables, Figures, and Other Materials
• Preface
• Authorization Letter
• The introductory section
• The body of the report
• The final part of the report
• References
• Appendix

Research Methods
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Oral Presentation
• Deciding on the Content
• Visual Aids
– For instance graphs, charts, tables
• The presenter
• The presentation
• Handling questions

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