Deepak Chawla, Neena Sondhi - Research Methodology Concepts and Cases-Vikas Publishing House (2015).pdf.pdf

Research Methodology
Concepts and Cases
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Research Methodology
Concepts and Cases
VIKAS® PUBLISHING HOUSE PVT LTD
Dr Deepak Chawla
Distinguished Professor, Dean (Research & Fellow Programme)
International Management Institute (IMI)
New Delhi
Dr Neena Sondhi
Professor
International Management Institute (IMI)
New Delhi
Second Edition
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Research Methodology: Concepts and Cases
ISBN: 978-93259-8239-0
Second Edition 2015
First Published 2011
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is the registered trademark of Vikas Publishing House Pvt Ltd
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Printed in India.
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To the memory of my
Parents
(Late) Shrimati Sushila Devi Chawla and (Late) Shri Lila Dhar Chawla
Brothers
(Late) Prof. R C Chawla
Retd Principal, Govt Bikram College of Commerce, Patiala
(Late) Dr Dinkar Chawla, MBBS, MS
Senior Surgeon
and
Sister and Brother-in-law
(Late) Mrs Kiran Makhija and (Late) Mr Vinay Makhija
Deepak Chawla
To my parents
Sudershan & Shashi Ghai
for their unselfish love and nurturance
To my husband
Anil,
my inspiration and strength
To my children
Kanika & Kartik
for their everlasting belief in me
To all my Gurus and teachers
who taught me all that I know….
Neena Sondhi
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chawla.indb 6 27-08-2015 16:25:23

Animportantpillarofthebridgethatconnects‘ManagementasArt’to‘ManagementasScience’isafoundation
course in Research Methodology, which MBA students are required to take. It is a basis for inculcating ‘research
as a value’ for effective decision-making, a value which is difficult to imbibe when the course is seen merely as
an academic one, where theoretical foundations and concepts have to be learnt more as necessary obstacles to
be overcome in the journey to acquire an MBA, but with little prospect of utilizing the knowledge in practical
situations they would encounter later in their professional lives. This is precisely the challenge that the authors
have sought to address in this book.
Professor Deepak Chawla is a reputed teacher of Statistics, Research Methodology, Marketing Research
and Business Forecasting, having long years of experience in teaching these subjects to MBA students. He
is a seasoned researcher and scholar, with contributions in various functional areas of management like
Marketing, Finance, Economics and, most recently, in Knowledge Management. Professor Neena Sondhi is a
distinguished academic in the area of Marketing, Research Methodology and Marketing Research. She brings
extensive experience of teaching and applying research methodology to management problems. The two have
produced a book that can be read at two levels simultaneously—at one level for the exposition of the discipline
of statistics and for its intrinsic beauty and concepts, and at another, for the techniques and methodology
of research for their power and sweep of applications. The authors, through a carefully chartered path into
Research Methodologies, systematically ease the student’s journey into researching a whole spectrum of
management problems, analysing them, and then drawing meaningful and utilizable conclusions.
A noteworthy and invaluable feature of this book is the large number of cases drawn from a variety of
situations that help the students understand the concepts and applications of different techniques. Two cases
run throughout the book and provide a constant backdrop for learning the concepts and methodologies that
are discussed as one progresses through the book. Thirty-five end-of-chapter cases help show how in different
real contexts the statistical concepts and research methodologies are indeed applied. Another noteworthy
feature is the extensive SPSS applications on problems and cases. Indeed, many problems have been worked
out and discussed using both conventional methods and SPSS software. Furthermore, in order to anchor the
treatment to reality, real-life data have been used for the cases.
‘This is a book by teachers who understand what difficulties the students face, what conceptual cul-de-sac
they can get into, the difference between knowing a technique and applying it successfully. Therefore, they
have kept the students’ needs directly in view while deciding on the style and treatment of the subject and its
scope. This is a book that students will enjoy learning from. It is also a book that other teachers of Research
Methodology to management students will find useful.
I commend the authors for bringing out a truly valuable textbook.
Professor Ashoka Chandra
Former Special Secretary, Education, Ministry of Human Resource Development, Government of India
Currently, Principal Adviser to International Management Institute (IMI),
Chairman, Centre for Management of Innovation and Technology, IMI, and
Chairman, Centre for Social Sector Governance, IMI.
Foreword
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We have received an overwhelming response for Research Methodology: Concepts and Cases from faculty
members, research scholars and students of educational institutions across the country. Alongside,
appreciation and praise for our efforts to bring out such a useful book, we have received valuable feedback and
suggestions to further improve the contents of the book. We thank them for the same and accordingly have
made the following additions in the second edition of the book.
Addition and updating: There were chapters and section where we have clarified the process or construct in
some cases; we have added new sections and additional analysis to enhance the learning and interpretation of
the research topic/technique. Some of these are as follows:
1. In the second chapter on Formulations of the business research problem & development of research
hypotheses, the concept of moderator and mediator variable is described in detail – both as text and
diagrammatically.
2. ThechapteronAnalysisofvariancetechniqueshasbeenrevisedandpost-hocanalysishasbeendiscussed
under one way analysis of variance.
3. In chapter 5 that is Secondary data collection methods, the section on syndicate research has been further
expanded with the help of examples.
4. The chapter 18 on Cluster analysis has been rearranged so as to make the reading smooth for the readers.
The cases of continuous and discrete data have been explained separately.
5. The chapter 19 on Multidimensional scaling and perceptual mapping has been explained at length by
giving all possible measurement questions and conditions under which multi-dimensional scaling can
be carried out. Further it also discusses attribute based perceptual mapping using Factor analysis.
6. The Conjoint analysis appeared as an addendum in the previous edition of the book. It appears as a
separate chapter 20 as per the suggestions of our readers.
7. A number of new examples have been added in various chapters to illustrate the concepts that are
discussed.
8. The data set for Cases and problems that have been added in this edition are also available in the form of
EXCEL and SPSS format on a CD that is provided with the book.
New to the addition: The greatest benefit of the book, for which scholars and academicians and practitioners
haveappreciatedourbookhasbeenitshandsonandapplicationbasedapproach.Hencewehavestrengthened
the application aspect considerably in this edition in the following way.
1. There are new conceptual and application questions in majority of the chapters. This offers the learner
ample opportunity to apply the chapter learning on decision problems.
2. The chapters’ questions have also been complemented by adding 15 new cases in the second edition of
the book. This edition thus has a total of 52 cases.The new cases that have been added in this edition are
as follows:
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Preface to the Second Edition
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x Research Methodology
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3. In the digital age, researchers across the world have made active use of the internet to carry out research.
Thus a new addendum on online research has been added in the book. This deals with the unique aspects
and indices that are of exclusive use when conducting and measuring on the virtual platform.
The revised instructor manual is available with the publisher and Faculty members adopting the book may
contact them for a copy of the same. We would be delighted to receive the comments and suggestions on the
second edition of the boo.
Dr Deepak Chawla Dr Neena Sondhi
Distinguished Professor Professor
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Every truth has four corners: as a teacher I give you one corner, and it is for you to find the other three.
…Confucius
Research Methodology: Concepts and Cases is like Confucius’ corner, a tool, an ever-evolving and changing
process that will always take on different nuances based on the unique philosophy of every reader and
researcher who uses it. But it is our staunch belief that once you have reached the last page of this volume,
the other three corners—which might vary, based on a researcher’s area of interest—will not seem to be such
a daunting task. Research would then become a simplified, practical and necessary path that you would
confidently undertake.
ThesignificanceofbusinessresearchintheIndiancontextgainedincreasingimpetusintheearly1990s,with
the major economic reforms implemented post liberalization by the Indian government. India was a growing
and lucrative market, with a huge exodus towards urban living. Thus, a number of multinationals decided to
set up their business here. However, they needed to understand the Indian consumer, the marketplace, the
operating systems and most significantly, the competition; and one of the ways which could make this possible
was through research. On the other hand, since the market was spoiled for choice and the buyer rather than
the seller was dictating the terms, Indian companies had to revisit the way they would need to conduct their
business. Hence, the value of business research to seek specific answers became important. Research in
marketing was an existing reality but the scope had widened and from simple consumer studies, organizations
had started looking at advertising research and new product research in a big way. Simple percentages and
pie charts were no longer sufficient; more accurate and focused findings that could be effectively built into
business strategies were required.
This increasing significance and usage of research tools were not isolated just to the marketing domain.
Other areas of business like finance and human resources were also relying on and greatly benefitting from
research undertaken for specific purposes. With a number of BPOs and KPOs being set up by organizations
from developed countries, job opportunities for the Indian working population were increasing by leaps and
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dissatisfied employees. As a measure to retain and nurture human capital, a number of studies were carried
out on employee satisfaction, career planning, work-life balance, organizational climate surveys, training need
analysis and other related areas.
Behavioural finance was an area that even financial analysts who were earlier skeptical about structured
research study, now recognized as an important emerging area of research. Investment decisions were an area of
concern not only for the Indian investor but also for companies offering the financial instrument. Thus, financial
research took on a new meaning in this panorama. Competition from domestic and international players forced
even the existing market leaders into improving business efficiency through operations research and real-time
analysis.
Research, which was once an academic exercise carried out mostly by research scholars and doctoral
students, was fast becoming an important technique that was a critical part of any business school curriculum.
It was no longer regarded as a theoretical, insignificant course; both the learner and the recruiter had
understood that this was going to be an extremely important modus operandi, which could add tremendous
value to any job role. At the workplace too, managers who outsource research must also be able to understand
and evaluate the merit of research findings.
However, despite the present need and significance of business research, we, as teachers of this course
on Business Research, have, for some time now, been aware that though business managers require to equip
themselves to handle the unique needs of the fiercely competitive Indian industrial realm, the material
and books available on the subject are not adequate enough to handle the complexity and technological
advancements that have taken place in the area. Either the text is too mathematical for those who do not
Preface
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xii Research Methodology
have a mathematical background, or if the statistical techniques have been addressed in detail, the business
interpretation is missing, leaving the readers clueless on how to make any sense of the obtained numbers by
converting them into business decisions. There are good books on qualitative research but they lean more
towards the abstract; readers then find it difficult to understand and apply to them for their specific needs.
Of the books that are being used actively for the university system, most are too theoretical and just provide
definitions with practically no illustrations. Numerous methods and techniques explained have become
obsolete and redundant in the current scenario. The resulting outcome is that either the field of research is a
one-eyed monster to be avoided at all costs; or a bitter pill that one swallows by rote and forgets later.
Looking at the above scenario, both of us realized that it was time to pick up our pens and turn scribes. Our
effort would be to instill a comprehensive and step-wise understanding of the research process with a balanced
blend of theory, techniques and Indian illustrations—from all business areas that might be of relevance to the
reader. We were also aware that the text had to be simple, interesting and succinct.
Reader and Learner
This book makes no presumptions and can be used with confidence and conviction by both students and
experienced managers who need to make business sense of the data and information that is culled out through
research groups. The conceptual base has been provided in comprehensive, yet simplistic detail, addressing
even the minutest explanations required by the reader. The language maintains a careful balance between
technical know-how and business jargon. Every chapter is profusely illustrated with business problems related
to all domains—marketing, finance, human resource and operations. Thus, no matter what the interest area
may be, the universal and adaptable nature of the research process is concisely demonstrated.
At all stages in the compilation we have been careful in ensuring that the usefulness and comprehension
is broad based. Every chapter includes simple and direct end-of-the-chapter questions which serve to
recapitulate the learning at the first level, while the application questions and cases take the learner to the next
level—beyond concepts to be able to crystallize and apply the learning in real time. The volume also has the
potential to be an excellent learning guide both for the business manager and research scholars as it provides
both rigorous, yet simplified understanding of the step-wise progression of the research process.
Organization of Content
The book has been essentially divided into six sections and covers the entire research process. There are also
two topics which have been added as an addendum to cover the entire syllabi of all national and international
universities and business schools in the country.
Section I consists of four chapters. Chapter 1 covers the research process in its totality. Chapter 2 is devoted
to conceptualizing and designing of the problem to be investigated. Depending on the need of the researcher
this may then be converted into a working hypothesis, to be tested in the later stages. Chapters 3 and 4 cover
all the three basic research designs—exploratory, descriptive and experimental. The sub-divisions of each one
are dealt with in detail in the two chapters.
Section II also consists of four chapters. This section is devoted to the data collection techniques available
to the researcher. It covers in complete depth the secondary and primary data collection methods. Chapter
6 provides details on all the qualitative techniques available to the researcher. Chapters 7 and 8 deal with the
quantitative scales and questionnaire.
Section III focuses on the fieldwork once the measuring scale/questionnaire is ready. The respondent’s
selection or sampling plan for collecting the primary data is discussed in Chapter 9. Chapter 10 is an extremely
critical chapter as the information collected now needs to be processed for analysis. Thus this chapter talks
about coding, tabulating and editing of the data collected from the primary methods.
Section IV consists of the analysis done for testing the research hypotheses. This covers a wide range of
methods beginning with univariate and bivariate analysis in Chapters 11 and 12. An entire chapter is devoted
to the analysis of variance methods and the last chapter in this section discusses the non-parametric methods
actively used by the business researcher.
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xiii
Preface
Section V comprises five important advanced data analysis methods used for research. Individual chapters
are devoted to correlation and regression analysis; factor analysis; discriminant analysis; cluster analysis and
multidimensional scaling.
Section VI comprises only one chapter devoted to the writing and presentation of research results. This is very
important and often handled superficially by most researchers as part of the research study. Thus, illustrations
and stepwise guidelines of compiling and disseminating the study results are presented here.
Addendum to the book: Two topics that we felt would make this a complete volume were conjoint analysis
and research ethics. We have formulated short, comprehensive guides on the two.
Key Features of the Book
Some specific advantages and highlights of the book you are about to be read and learn from are:
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data analysis.
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and application in every chapter.
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a single chapter that gives a brief introduction to every technique.
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illustrations in every data analysis chapter.
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data analysis technique.
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analysis technique.
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end of every chapter.
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as psychology and sociology. It can also serve as a research project guide for M Phil. and PhD scholars.
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enhanced value in terms of its utility for business managers, regardless of the sector.
Final Word ….
As we near the completion of the Herculean task of compiling this book on Research Methodology: Concepts
and Cases, we are exhilarated at the magnitude of the task accomplished and yet humbled at the journey of
learning this book took us on. There were times we formalized what we knew and others when we learnt anew
and transcended new boundaries. It seems like only yesterday that Research Methodology was a subject that
was so tedious and difficult to comprehend. All the problems, gaps in understanding and the monotony of the
subject that we had experienced at the learner stage ourselves stood us in good stead as we were able to put
ourselves in the shoes of learners as they who would unravel the intricate and complex research process.
Research for both of us is a passion and an endless journey that takes us in diverse directions to traverse
new grounds and validate old theories. The quest for knowledge and learning never ends and we are but
humble learners in this ever-evolving field of research. And you, our readers, can facilitate our new voyage of
research through your valuable feedback in the form of comments and advice as you set forth on your research
path by using this book as a learning tool.
Deepak Chawla
dchawla@imi.edu
Neena Sondhi
neenasondhi@imi.edu
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The conceptualization and publication of this book was a rigorous and voluminous task and it would not have
been accomplished without the encouragement and support of many of our associates and well-wishers. We
would like to take this opportunity to express our gratitude to all of them in their various capacities.
We would like to thank Dr Pritam Singh, the Director General of International Management Institute
(IMI), New Delhi, for his inspirational support in the publishing of this book. This work was initiated when
late Dr C. S. Venkataratnam was the Director of the institute. We are grateful to the management of IMI for the
infrastructural facilities and support provided to us in developing this comprehensive volume. Prof. Ashoka
Chandra had been a constant source of inspiration and encouragement from the very beginning of the project.
We gratefully thank him for sparing his valuable time from his busy schedule to write the foreword for the book.
We appreciate the encouragement and support of our faculty and colleagues, with a special word of gratitude
for Prof. Himanshu Joshi for his invaluable help and advice in the SPSS section of Chapter 10. Appreciation is
also due to the experts, friends and professional colleagues from other reputed business schools, who were
our sternest critics and staunchest supporters in believing the significance and magnitude of contribution in
the compilation of this book. At every stage, we are grateful for the critical and valuable reviewing of the text in
order to improve the readability and coverage of the book.
The success of a publication is not possible without the unstinting faith of a publisher and a team that
staunchly believes that the document under preparation is a winning product. This faith was also one of the
constant driving forces that provided us the encouragement to move forward. We would like to thank you
enitre editorial team of Vikas Publishing House.
No effort made by either one of us would have been possible without the patient and consistent support of
each of our individual families, whose faith and love for us was a constant source of inspiration and reassurance
for us. A special word of thanks to the corporates, where some of the illustrative cases reported in the book were
carried out. All students and research investigators who contributed in various ways in providing valuable data
and inputs are also acknowledged here.
We would also like to record our gratitude and appreciation to Ms Vandana Sehgal and Ms Jaspreet Kaur
for their tireless and patient typing and in carrying out various computer runs on SPSS and EXCEL in the
preparation of the manuscript. And last, but not the least, we would like to express our gratitude to the Almighty
without whose benevolence nothing in this world would see the light of the day.
Deepak Chawla
Neena Sondhi
Acknowledgements
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chawla.indb 16 27-08-2015 16:25:24

Foreword vii
Prefface to the Second Edition ix
Preface xi
Acknowledgements xv
List of Cases xxix
SECTION 1
RESEARCH PROCESS: PROBLEM DEFINITION,
HYPOTHESIS FORMULATION AND RESEARCH DESIGNS
CHAPTER 1. Introduction to Business Research 3
What is Research? 4
Types of Research 5
Exploratory Research 6
Conclusive Research 7
The Process of Research 9
The Management Dilemma 9
Defining the Research Problem 9
Formulating the Research Hypotheses 10
Developing the Research Proposal 10
Research Design Formulation 10
Sampling Design 11
Planning and Collecting the Data for Research 11
Data Refining and Preparation for Analysis 12
Data Analysis and Interpretation of Findings 12
The Research Report and Implications for the Manager’s Dilemma 12
Research Applications in Business Decisions 14
Marketing Function 14
Personnel and Human Resource Management 15
Financial and Accounting Research 16
Production and Operation Management 16
Cross-Functional Research 17
Features of a Good Research Study 18
Summary 19
Key Terms 20
Chapter Review Questions 20
Appendix – 1.1: How to Formulate the Business Research Proposal 21
Appendix – 1.2: Sample Research Proposal 23
References 27
Bibliography 28
Contents
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xviii Research Methodology
CHAPTER 2. Formulation of the Research Problem and Development of the Research
Hypotheses 29
The Scientific Thought 30
Defining the Research Problem 31
Problem Identification Process 32
Theoretical Foundation and Model Building 38
The Turnover Intention Model 38
Statement of Research Objectives 39
Formulation of the Research Hypotheses 40
Summary 42
Key Terms 42
References 49
Bibliography 50
CHAPTER 3. Research Designs: Exploratory and Descriptive 51
The Nature of Research Designs 52
Formulation of the Research Design: Process 53
Classification of Research Designs 54
Exploratory Research Design 54
Secondary Resource Analysis 56
Two-tiered Research Design 58
Descriptive Research Designs 59
Summary 64
Key Terms 64
References 67
Bibliography 68
CHAPTER 4. Experimental Research Designs 69
What is an Experiment? 70
Causality 70
Necessary Conditions for Making Causal Inferences 70
Concepts used in Experiments 72
Validity in Experimentation 72
Definition of Symbols 73
Factors Affecting Internal Validity of the Experiment 74
Factors Affecting External Validity 75
Methods to Control Extraneous Variables 76
Environments of Conducting Experiments 77
A Classification of Experimental Designs 77
Pre-experimental Designs 78
Quasi-experimental Designs 80
True Experimental Designs 82
Statistical Designs 84
Summary 87
Key Terms 88
Bibliography 91
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xix
Contents
SECTION 2
DATA COLLECTION, MEASUREMENT AND SCALING
CHAPTER 5. Secondary Data Collection Methods 95
Classification of Data 96
Research Applications of Secondary Data 97
Benefits and Drawbacks of Secondary Data 97
Benefits 97
Drawbacks 98
Evaluation of Secondary Data—Research Authentication 99
Methodology Check 99
Accuracy Check 100
Topical Check 101
Cost-benefit Analysis 101
Classification of Secondary Data 102
Internal Sources of Data 102
External Data Sources 104
Summary 115
Key Terms 116
References 119
Bibliography 119
CHAPTER 6. Qualitative Methods of Data Collection 120
Premise for Using Qualitative Research Methods 122
Distinguishing Qualitative from Quantitative Data Methods 123
Research Objective 123
Research Design 123
Sampling Plan 123
Data Collection 124
Data Analysis 124
Research Deliverables 124
Methods of Qualitative Research 124
Observation Method 125
Content Analysis 130
Focus Group Method 132
Key Elements of a Focus Group 132
Steps in Planning and Conducting Focus Groups 134
Types of Focus Groups 137
Evaluating Focus Group as a Method 139
Personal Interview Method 140
Categorization of Interviews 142
Projective Techniques 144
Evaluating Projective Techniques 148
Sociometric Analysis 149
Afterthoughts on Qualitative Research 151
Summary 151
Key Terms 152
Appendix 161
References 165
Bibliography 166
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xx Research Methodology
CHAPTER 7. Attitude Measurement and Scaling 167
Introduction 168
Types of Measurement Scale 168
Attitude 172
Classification of Scales 174
Single Item vs Multiple Item Scale 174
Comparative vs Non-comparative Scales 175
Comparative Scales 175
Non-comparative Scales 179
Measurement Error 187
Criteria for Good Measurement 188
Summary 190
Key Terms 190
Bibliography 199
CHAPTER 8. Questionnaire Designing 200
Criteria for Questionnaire Designing 201
Types of Questionnaire 202
Questionnaire Design Procedure 206
Determining the Type of Questions 215
Open-ended Questions 215
Closed-ended Questions 217
Criteria for Question Designing 220
Questionnaire Structure 225
Physical Characteristics of the Questionnaire 228
Pilot Testing of the Questionnaire 229
Administering the Questionnaire 230
Summary 232
Key Terms 232
Appendix 8.1 244
References 244
Bibliography 244
SECTION 3
RESPONDENTS SELECTION AND DATA PREPARATION
CHAPTER 9. Sampling Considerations 249
Sampling Concepts 250
Uses of Sampling in Real Life 251
Sample vs Census 251
Sampling vs Non-Sampling Error 252
Sampling Design 253
Probability Sampling Design 253
Simple Random Sampling with Replacement 254
Simple Random Sampling without Replacement 255
Systematic Sampling 255
Stratified Random Sampling 257
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xxi
Contents
Cluster Sampling 258
Non-probability Sampling Designs 259
Convenience Sampling 259
Judgemental Sampling 260
Snowball Sampling 261
Quota Sampling 261
Determination of Sample Size 262
Sample Size for Estimating Population Mean 263
Summary 268
Key Terms 268
Bibliography 272
CHAPTER 10. Data Processing 274
Fieldwork Validation 276
Data Editing 277
Field Editing 277
Centralized In-house Editing 278
Coding 279
Coding Closed-ended Structured Questions 281
Coding Open-ended Structured Questions 284
Classification and Tabulation of Data 285
Exploratory Data Analysis 287
Statistical Software Packages 290
Summary 290
Key Terms 291
Appendix – 10.1: SPSS – An Introduction 297
Bibliography 301
SECTION 4
PRELIMINARY DATA ANALYSIS AND INTERPRETATION
CHAPTER 11. Univariate and Bivariate Analysis of Data 305
Univariate, Bivariate and Multivariate Analysis of Data 305
Descriptive vs Inferential Analysis 306
Descriptive Analysis 306
Inferential Analysis 307
Descriptive Analysis of Univariate Data 323
Missing Data 323
Analysis of Multiple Responses 325
Analysis of Ordinal Scaled Questions 326
Grouping Large Data Sets 328
Descriptive Analysis of Bivariate Data 338
Cross-tabulation 339
Elaboration of Cross-tables 344
Spearman’s Rank Order Correlation Coefficient 347
More on Analysis of Data 349
Calculating Rank Order 349
Data Transformation 349
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xxii Research Methodology
Summary 350
Key Terms 351
Appendix – 11.1: SPSS Commands for Preparing Frequency Distribution Tables 362
Appendix – 11.2: SPSS Commands for Recoding Value of a Variable into a
New Variable 362
Appendix – 11.3: SPSS Commands for Cross-tables 363
Reference 363
Bibliography 363
CHAPTER 12. Testing of Hypotheses 364
Concepts in Testing of Hypothesis 365
Steps in Testing of Hypothesis Exercise 366
Test Statistic for Testing Hypothesis about Population Mean 368
Test Concerning Means—Case of Single Population 368
Case of Large Sample 368
Alternative Approach to the Test of Hypothesis 370
Case of Small Sample 372
Tests for Difference between Two Population Means 377
Case of Large Sample 377
Case of Small Sample 379
Case of Paired Sample (Dependent Sample) 382
Use of SPSS in Testing Hypothesis Concerning Means 384
Tests Concerning Population Proportion 387
The case of Single Population Proportion 388
Two Population Proportions 390
Summary 393
Key Terms 394
Appendix – 12.1: SPSS Commands for Data Inputs and t-Test 411
Bibliography 412
CHAPTER 13. Analysis of Variance Techniques 413
What is ANOVA? 413
Completely Randomized Design in a One-way ANOVA 415
Numericals 415
Strength of Association 417
Use of SPSS in Conducting One-way ANOVA 420
Randomized Block Design in Two-way ANOVA 424
Use of SPSS in Conducting Two-way ANOVA 428
Factorial Design 431
Use of SPSS in a Factorial Design 433
Latin Square Design 435
Summary 438
Key Terms 439
Appendix – 13.1: SPSS Commands for One-Way ANOVA 450
Appendix – 13.2: SPSS Commands for Two-Way ANOVA 451
Appendix – 13.3: SPSS Commands for Factorial Design 451
Bibliography 451
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xxiii
Contents
CHAPTER 14. Non-Parametric Tests 453
Advantages and Disadvantages of Non-Parametric Tests 454
Chi-square Tests 455
Application of Chi-square 456
Use of SPSS in the Chi-square Analysis 466
Run Test for Randomness 471
Use of SPSS in Conducting a Run Test 474
One-Sample Sign Test 475
Two-Sample Sign Test 477
Mann-Whitney U Test for Independent Samples 479
Use of SPSS in Conducting a Mann-Whitney U test 483
Wilcoxon Signed-Rank Test for Paired Samples 486
Use of SPSS in Conducting a Wilcoxon Signed-rank Test for Paired Sam-
ples 488
The Kruskal-Wallis Test 490
Use of SPSS in Conducting the Kruskal-Wallis Test 491
Summary 493
Key Terms 493
Appendix – 14.1: SPSS Commands for Cross-tabs and Chi-squared Test 511
Appendix – 14.2: SPSS Commands for Testing the Equality of
Various Population Proportions 511
Appendix – 14.3: SPSS Commands for Run Test The Case of Interval or Ratio Scale
Measurement 511
Appendix – 14.4: SPSS Commands for a Run Test The Case of Nominal Scale
Measurement 511
Appendix – 14.5: SPSS Commands for the Mann-Whitney U Test 512
Appendix – 14.6: SPSS Commands for the Wilcoxon Matched Pair Rank Sum Test 512
Appendix – 14.7: SPSS Commands for the Kruskal-Wallis Test 512
References 513
Bibliography 513
SECTION 5
ADVANCED DATA ANALYSIS TECHNIQUES
CHAPTER 15. Correlation and Regression Analysis 517
Introduction 517
Correlation 518
QuantitativeEstimateofaLinearCorrelation 519
Testing the Significance of the Correlation Coefficient 520
Regression Analysis 520
Test of Significance of Regression Parameters 523
Goodness of Fit of Regression Equation 524
Uses of Regression Analysis in Prediction 524
Alternative Way of Testing the Significance of r2
529
Use of SPSS in the Simple Linear Regression Model 530
Multiple Regression Model 531
Dummy Variables in Regression Analysis 535
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xxiv Research Methodology
Applications of Regression Analysis in Research in Various Functional Areas
of Management 540
Regression Equation of Work Exhaustion for School Teachers 541
Regression Equation of the Turnover Intention for School Teachers 542
Regression Equation of the Turnover Intention for the Combined Sample of BPO
Executives and School Teachers 542
Summary 545
Key Terms 546
Appendix – 15.1: SPSS Commands for Correlation 557
Appendix – 15.2: SPSS Commands for Regression 557
References 558
Bibliography 558
CHAPTER 16. Factor Analysis 559
Uses of Factor Analysis 560
Conditions for a Factor Analysis Exercise 561
Steps in a Factor Analysis Exercise 561
Illustration of Factor Analysis Exercise 563
Establishing the Strength of the Factor Analysis Solution 565
The Factor Score Coefficient Matrix 565
Factor Loadings and Computation of Eigenvalues 567
Total Variance Accounted by the Extracted Factors 567
Communality: Explanation of the Original Variable’s Variance 568
Establishing the Statistical Independence of Extracted Factors 568
Rotation of Factors 569
Labelling or Naming the Factors 569
Applications of Factor Analysis in Other Multivariate Techniques 571
Summary 580
Key Terms 581
Appendix – 16.1: SPSS Commands for Factor Analysis 592
Bibliography 592
CHAPTER 17. Discriminant Analysis 593
Objectives and Uses of Discriminant Analysis 594
Discriminant Analysis Model 594
Illustration of Discriminant Analysis 595
Descriptive Statistics 596
Tests for Differences in Group Means 597
Correlation Matrix 597
Unstandardized Discriminant Function 598
Classification of Cases Using the Discriminant Function 599
Significance of Discriminant Function Model 600
Standardized Discriminant Function Coefficient 600
Structural Coefficients 601
Assessing Classification Accuracy 602
Out-of-Sample Performance 603
Summary 604
Key Terms 605
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xxv
Contents
Appendix – 17.1: SPSS Commands for Discriminant Analysis 613
References 613
Bibliography 614
CHAPTER 18. Cluster Analysis 615
Cluster Analysis—A Classification Technique 616
Differentiating Cluster Analysis 617
Usage of Cluster Analysis 617
Statistics Associated with Cluster Analysis 619
Cluster Analysis: A Simplified Illustration of the Technique 620
Mixed (Metric And Non-metric) Data Analysis 623
Key Concepts in Cluster Analysis 624
Process of Clustering 625
Cluster Analysis: Metric Data 627
Establishing the Clustering Algorithm 628
Hierarchical Methods 628
Non-hierarchical Methods 630
Two-step Clustering 630
Combination Method 631
Cluster Analysis: Non-metric Data 642
Stablishing the Cluster Assumptions 643
Statistical Software 649
Summary 649
Key Terms 650
Appendix – 18.1: Cluster Analysis Commands for SPSS 657
References 658
Bibliography 658
CHAPTER 19. Multidimensional Scaling and Perceptual Mapping 660
Multidimensional Scaling—A Mapping Technique 661
Multidimensional Map: An Illustration 663
Usage of Multidimensional Scaling 666
Creating Spatial Maps Using Multidimensional Scaling 667
Formulating the Research Objectives 667
Establishing Individual or Grouped Data Decision 668
Selecting the Objects for Comparison 669
Conducting MDS with Similarity Data 670
Similarity Measured on Interval Scale Data 670
Obtaining the Data Output for Conducting MDS 671
Obtaining the MDS Solution 671
Identifying the Number of Dimensions 672
Interpreting the MDS Solution 673
Similarity Measured on Ranked Scale 675
Obtaining the Data Output for Conducting MDS 675
Conducting MDS with Preference Data 678
Preference Illustration (Simple Ranking Scale) 678
Obtaining the Data Output for Conducting the MDS 679
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xxvi Research Methodology
Preference Illustration (Paired Comparison Scale) 681
Interpreting the MDS solution 684
Preference Illustration (Interval Scale) 684
Establishing the Strength of the MDS Solution 686
Multidimensional Scaling and Perceptual Mapping 687
Attribute-based Perceptual Mapping: Factor Analysis 687
Obtaining Data from the Interval Question 689
Obtaining a Factor Analysis of Brands and Attributes 690
Obtaining the Factor Generated Perceptual Map 691
Interpretation of the Perceptual Map 691
Summary 692
Key Terms 693
Appendix – 19.1: Multidimensional Scaling Commands for SPSS 699
Appendix – 19.2: Factor Analysis Perceptual map from SPSS 699
References 700
Bibliography 700
CHAPTER 20. Conjoint Analysis 701
Concept of Conjoint Analysis 701
Steps in Conjoint Analysis 702
Identification of Attributes 702
Determination of Attribute Levels 703
Determination of Attribute Combinations 703
Nature of Judgment on Stimuli 703
Aggregation of Judgments 703
Choice of Technique of Analysis 704
Illustration of Conjoint Analysis with an Example 704
Uses of Conjoint Analysis 708
Issues in Using Conjoint Analysis 708
Summary 709
Key Terms 709
References 713
SECTION 6
REPORTING RESEARCH RESULTS
CHAPTER 21. Report Writing and Presentation of Results 717
Need for Effective Documentation: Importance of Report Writing 718
Types of Research Reports 718
Brief Reports 718
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xxvii
Contents
Detailed Reports 719
Technical Reports 719
Business Reports 719
Report Preparation and Presentation 719
Report Structure 721
Preliminary Section 721
Main Report 723
Interpretations of Results and Suggested Recommendations 725
Limitations of the Study 726
End Notes 726
Report Writing: Report Formulation 727
Guidelines for Effective Documentation 727
Guidelines for Presenting Tabular Data 729
Guidelines for Visual Representations: Graphs 731
Research Briefings: Oral Presentation 737
Summary 738
Key Terms 739
Appendix – 21.1: Sample Report (Brief Version) 740
Appendix – 21.2: Sample from the Questionnaire 743
References 744
Bibliography 744
Comprehensive Cases 745
Case 1: Managing Balance in Work and Life 745
Case 2: Tupperware: Servicing the Indian Housewife 754
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Addendum 1: Online Research: New Age Techniques 765
Addendum 2: Ethical Issues in Business Research 773
Annexures 1–4 778
Annexure 1: Area Under Standard Normal Distribution between The Mean and
Successive Value of Z 778
Annexure 2: Some Critical Values of ‘t ’ 779
Annexure 3: Some Critical Values of χ2
for Specified Degrees of Freedom 780
Annexure 4a: Significance Points of the Variance-ratio ‘F’ 5 per cent Points of F 781
Annexure 4b: Significance Points of the Variance-ratio ‘F’1 per cent Points of F 782
Subject Index 783
Author Index 790
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chawla.indb 28 27-08-2015 16:25:25

Case 2.1 Online Booking—Has the Time Come? 44
Case 2.2 Danish International (A) 45
Case 2.3 Bharat Sports Daily (A) 46
Case 2.4 Fortune at the Last Frontier (A) 48
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Case 3.2 Danish International (B) 66
Case 3.3 Fortune at the Last Frontier (B) 67
Case 4.1 Keshav Furniture Pvt. Ltd. 90
Case 5.1 The Pink Dilemma 118
Case 6.1 Danish International (C) 154
Case 6.2 What’s in a Car? 155
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Case 6.4 Fortune at the Last Frontier (C) 158
Case 6.5 Career in Service Sector vs Manufacturing Sector – The Case of MBA Aspirants 160
Case 7.1 Tupperware India Pvt. Ltd. 194
Case 8.1 Malls for All 234
Case 8.2 Outlook of OUTLOOK 237
Case 8.3 What Does an Employee Want? 240
Case 9.1 Mehta Garment Company 270
Case 9.2 Herbal Tooth Powder 271
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Case 10.2 Branded Jewellery – Is there a Demand? 295
Case 11.1 Eating-out Habits of Individuals 353
Case 11.2 Second-Hand Classified Websites in India: Usage and Trust among Consumers 357
Case 12.1 Comparative Perception of Mess food vis-à-vis Dhabas – A Case of IIFT 398
Case 12.2 Perception of People About Ban on Plastic Bags in Delhi 401
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Case 13.1 Paid Kids’ Care Unit in a Mall 442
Case 13.2 Malhotra Spices Company Pvt. Ltd. 444
Case 13.3 Kumar Soft Drink Bottling Company 445
Case 13.4 Perception of Delhiites about Delhi Metro 446
Case 14.1 Comparative Consumer Perception of Jet Airways vis-à-vis Indian Airlines 498
Case 14.2 Choice of Specialization in a Management Programme 509
Case 15.1 MRP Biscuit Company Pvt. Ltd. 552
Case 15.2 Shyam Foods Pvt. Ltd. 554
Case 16.1 Purchase of B-Segment Cars in India 583
Case 16.2 Direct Selling of Cosmetics 587
Case 16.3 B-Segment Car Rating Study 590
Case 17.1 Predicting High/Low User of Social Networking Sites among Students 607
Case 17.2 Buying Behaviour of Ready-to-Eat Food Consumers 610
Case 18.1 Milk for Health 652
Case 18.2 ‘Sundarta Mane….’ 654
Case 18.3 Danish International (D) 656
Case 19.1 Malls, Malls, Everywhere… 695
List of Cases
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xxx Research Methodology
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Case 19.3 A Shirt on My Back 697
Case 20.1 Burman Tea Company Pvt. Ltd. 711
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Chapter 1 Introduction to Business Research
Chapter 1 provides a broad overview of the essential process of research. It starts with problem formulation and
statement of hypotheses and covers research designs, data collection and respondent sampling, followed by
data refining, analysis and interpretation in brief. The chapter goes on to discuss different types of research—an
orientation ranging from basic to applied studies is discussed at length with their sub-classifications into exploratory
and conclusive studies as well. Insight is also provided into research applications in the field of marketing, finance,
human resources and operations. Clear elucidation of criteria of a robust research study is also provided. The chapter
also has a detailed appendix, devoted to preparation and compilation of a research proposal.
Chapter 2 Formulation of the Research Problem and Development of the Research Hypotheses
Chapter 2 traces the path of converting a management dilemma into a research question that lends itself to
scientific enquiry. The process of problem formulation requires a comprehensive collation of facts. This is done
through inputs from industry and topic experts, organizational analysis, review of existing and problem-specific
literature and sometimes loosely structured group discussions with respondents. Every problem must be broken
down into specific components, i.e., the units of analysis and the study variables—independent and dependent.
The chapter concludes by discussing in detail the process of hypotheses generation and elucidating the types of
hypotheses available to a researcher.
Chapter 3 Research Designs: Exploratory and Descriptive
Chapter 3 provides the classification of different types of research designs available to the researcher. Once the
researcher has crystallized the research problem and objectives, the next step is to design the study execution plan.
This stage is known as the research design stage. The first step, which is generally a precursor to most research
studies, is an exploratory design based on a mix of secondary and loosely structured qualitative methods. The more
structured descriptive designs, with the sub-classification into cross-sectional and longitudinal designs, are discussed
at length with appropriate illustrations from different business domains.
Chapter 4 Experimental Research Designs
Chapter 4 starts by defining an experiment and explains the concept of causality and the necessary conditions
required for making causal inferences. The concepts of internal and external validity of the experiments are
explained and the factors affecting them are detailed. The experimental designs could be classified into (1) pre-
experimental design (2) quasi-experimental designs (3) true experimental designs and (4) statistical designs. Under
each of the four heads, various designs are covered. The true experimental designs enable the researchers to
eliminate the effect of extraneous variables from both control and experimental group. The statistical designs help to
study the effect of more than one independent variable on the dependent variable and also help to control the effect
of extraneous variables.
Section
1
This section introduces the reader to the scientific and structured process of research,
which distinguishes it from a simplistic method of business enquiry.
RESEARCH PROCESS: PROBLEM DEFINITION,
HYPOTHESIS FORMULATION AND
RESEARCH DESIGNS
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chawla.indb 2 27-08-2015 16:25:28

1
CHAPTER
Learning Objectives
By the end of the chapter, you should be able to:
1. Understandtherelevanceandroleofresearchinmanagementandthesignificanceoftheresearch
tool in all functional areas of management.
2. Cognize and distinguish between the different kinds of research available, based on the purpose
and nature of the management decision.
3. Apprehend the steps that need to be accomplished in order to complete the research study.
4. Formulate a research proposal for a research endeavour.
5. Interpret the basics of quality checks needed to classify research as a meaningful and ‘good’
research.
Introduction to Business
Research
16 September 2008: Ravi Mathaiyya, CEO of EEE—a KPO set up as an ancillary of a US-based credit card company,
operating from Noida—read the story of the Lehmann Brothers, Merrill Lynch and the other financial disasters in the
US. He reeled under the shocking story of the 158-year-old conglomerate which had just collapsed like a pack of cards.
Of late, when the business was not doing well, it seemed that this sub-prime crisis would eventually hit the banking,
credit and related sectors in a big way. What would be the impact on the KPOs catering to the US market? On the human
front, the company was not doing as well as it should have considering the fact that it was voted amongst ‘the top ten
companies to work for in India’ by a popular business magazine. The attrition figures were as high as 67 per cent in the
last six months. Why didn’t his employees want to stay? What was the magic ingredient that would provide a conducive
work environment for employees to work in and enjoy themselves? Could the answer be compensation, flexible work
policies, job enrichment or rotation exercises?
Ravi was an optimistic and futuristic kind of person. He was always looking at exploring and expanding his business.
Had the time come for him to look for and evaluate new pastures? Food retailing seemed to be an interesting business
proposition that Ramesh Kumar, his batchmate, was expanding into. How big was this market? Was it an organized or
an unorganized sector? How did the consumer carry out his or her grocery shopping? What was the nature of operations
in terms of supply chain and distribution? How could he develop an effective marketing strategy?
Alternatively, he could venture into syndicate market research. He could train and absorb his existing employees into
a new venture. Would the employees be willing to take this opportunity? How would the organizational goals match
his/her personal career goals? There were so many questions in his mind but no single magic formula that could help
him arrive at the answers that he wanted. It seemed to Ravi that the answer might lie in the annals of the subject in his
B-School, that he often kept as last on his study list—research. He was certain that research would help and provide
him with the information required to arrive at a viable answer/solution to his dilemma. He had big plans and a revo-
lutionary vision of what the future might hold. But how did one carry out a research for realizing them? How did one
communicate and convert and then measure and evaluate whether the path that he wanted to traverse would really lead
to success? Was there a risk? Could he measure it and what really was the answer?
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4 Research Methodology
Ravi is atypical of most managers and perhaps you, who might, at your individual
or organizational level, face a similar decision dilemma. Effective decisions pave
the way to managerial success and this requires reducing the element of risk and
uncertainty. There are different schools of thought on what could be the magic
mantra for this—some say it is on-the-job experience; others call it ‘a strong gut feel’;
and some say it is the gambler’s luck.
The authors believe that all this is possible but not before you have availed the
scientific method of enquiry, followed a structured approach to collect and analyse
information and then eventually subjected it to the manager’s judgement. This is
no magic mantra but a scientific and structured tool available to every manager,
namely—Research.
WHAT IS RESEARCH?
Research is a tool that is a building block and a sustaining pillar of every discipline—
scientific or otherwise—that one knows of. Before comprehending the true meaning
of the term, we would like to make it clear that this book primarily focuses on the
process of business research. The premise of this decision-oriented enquiry is vast
and may range from the simplistic view, which involves compilation and validation
of information, to an exhaustive theory and model construction. To distinguish
between non-scientific and scientific method, we would like to consider a few
definitions of research.
One of the earliest distinctions was made by Lundberg (1942) who stated
‘Scientific methods consist of systematic observation, classification, and
interpretation of data. Now obviously, this process is one in which nearly all people
engageintheirdailylife.Themaindifferencebetweenourday-to-daygeneralizations
and the conclusions usually recognized as the scientific method lies in the degree of
formality, rigorousness, verifiability, and general validity of the latter.’
Fred Kerlinger (1986) also validated the thought and stated that ‘Scientific
research is a systematic, controlled and critical investigation of propositions about
various phenomena.’ Grinnell (1993) has simplified the debate and stated ‘The
word research is composed of two syllables, re and search. The dictionary defines
the former as a prefix meaning again, anew or over again and the latter as a verb
meaning to examine closely and carefully, to test and try, or to probe. Together they
form a noun describing a careful, systematic, patient study and investigation in some
field of knowledge, undertaken to establish facts or principles.’
Thus, drawing from the common threads of the above definitions, we derive that
management research is an unbiased, structured, and sequential method of enquiry,
directed towards a clear implicit or explicit business objective. This enquiry might lead
to validating existing postulates or arriving at new theories and models.
The most important and difficult task of a researcher is to be as objective and
neutral as possible. The temptation to skew the results in the hypothesized direction
has to be avoided at all costs. Magazine articles and newspaper surveys which want
to prove a point might want to skew the opinion polls in favour of the Capitalists or
the Republicans, or on the need for reservation versus no reservation in educational
institutes but a researcher has to collect and display the findings of the research as
objectively as possible.
Let us look at another example, a domestic hearing-aid company is not able to
keep above the red line and has identified inventory management in the company
LEARNING OBJECTIVE 1
Understand the
relevance and
role of research in
management and
the significance of
the research tool in
all functional areas of
management.
Management research is
an unbiased, structured and
sequential method of enquiry,
directed towards a clear
implicit or explicit business
objective.This enquiry might
lead to validating the existing
postulates or arriving at new
theories and models.
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5
Introduction to Business Research
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existing shipping, storing and delivery operations and find that you are losing out to
a local competitor who is selling hearing aids at a much higher premium, because
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reporting system, where the data about stocks is provided for a cycle of 40 days. A
small impromptu survey with retailers stocking your products and the pathology
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JOWFOUPSZNBOBHFNFOUUFDIOJRVFTBWBJMBCMF:PVJTPMBUFUISFFEJGGFSFOUQSBDUJDFT
and work out the feasibility of implementing each one of them in the company.
The one that seems to be the most cost- and time-effective is the one you choose
and develop an inventory model which you implement for the base hearing aids
(incidentally, these are your largest selling models). At regular intervals you monitor
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winner on hand. So you extrapolate the result to the other two more expensive and
technologically superior models and prepare a report on the proposed inventory
management model with cost implications to the management. What do we observe
here? A structured and sequential method of enquiry was conducted. The method
systematically developed a new model, validated it and at the same time addressed
the immediate management problem faced by the company. In your opinion do you
perceive that some research has been carried out?
The last most important aspect of our definition that needs to be carefully
considered is the decision-assisting nature of business research. Thus, as Easterby-
Smith et al. (2002) state, business research must have some practical consequences,
either immediately, when it is conducted for solving an immediate business problem
or when the theory or model developed can be implemented and tested in a business
setting. The world of business demands that managers and researchers work towards
a goal—whether immediate or futuristic, else the research loses its significance in
the field of management.
TYPES OF RESEARCH
The above discussion seems to be leading to a truly Gestaltian perspective of
business research, which should be theoretically and technically sound and yet have
immediate and topological significance in the world of business. Hodgkinson et al.
(2001) have also supported this argument, which states that business research must
be able to withstand the requirement of both theory and practice.
Within this domain of creating and propagating theories and models and
resolving immediate managerial problems, the purpose and context of your research
project might be conceptualized differently. Sometimes this may be done for a
purely academic reason of a need to know or to investigate some best practices—
inventory management, or a new cause and effect relationship, work-family conflict
and its impact on turnover intentions. The purpose behind the study is wider and
all-encompassing, where the benefits generated would be applicable to the entire
business community. The context is vast and time period flexible. This research is
termed to be fundamental or basic research. On the other end of the continuum,
you have more contextual and restricted studies. For example, your product which
was declared a winner in the test marketing that you conducted is not able to take
off after the product launch and you need to identify the reasons for this, in order to
take corrective action. Thus the study you undertake would have limited relevance
and be able to generate knowledge specific to the problem situation. This would
A researcher should work
towards a goal, whether
immediate or futuristic,
else the research loses its
significance in the field of
management.
Cognize and distinguish
between different kinds
of research available,
based on the purpose
and nature of the
management decision.
chawla.indb 5 27-08-2015 16:25:30

be of practical value to the specific organization. Secondly, it has implications for
immediate action. This action-oriented research is termed as applied research.
However, at this juncture we would like to advise the reader not to look at the
two as opposites of each other. They, in fact, just lie at two ends of a continuum and
in certain situations, merge or lead to the other. For example, you might need to
study the impact of a merger between two large business corporations on employee
morale and subsequent turnover intention. The findings of the study might reveal
an intricate impact of other individual and organizational correlates which could be
modifyingtherelationship.Therecommendationswouldthuslookatavastspectrum
of amendments required in HR policies. This is direct and applied research. In case
the relationship between the two variables is further investigated in similar and
different organizations, the researchers might be able to develop a broader model
and framework to explain turnover intentions. Thus the research which started
as contextual might lead to some fundamental and basic research which expands
the body of knowledge. The process followed in both basic and applied research is
systematic and scientific; the difference between them could simply be a matter of
context and purpose.
Research studies can also be classified on the basis of the nature of enquiry
or the objective behind the conduction. The orientation of this book—in terms of
research design, methodology and analysis—is based on this distinction, thus at this
stage we would like to clearly distinguish between these.
Exploratory Research
As the name suggests, exploratory researches are conducted to resolve ambiguity.
Differing mainly in design from descriptive research, exploratory research is used
principally to gain a deeper understanding of something. Its role is to provide
direction to subsequent and more structured and rigorous research. A review of
market opportunities available to a prospective entrepreneur; an informal survey
conductedtoidentifytheprobleminthesupplychainofaproduct;differentwaysthat
women professionals adapt to manage work-family conflict are examples of this kind
of research. As can be seen, studies of this nature are less structured, more flexible in
approach and are not conducted to test or validate any preconceived propositions;
in fact exploratory research could lead to some testable hypotheses. Some schools
have also called them pilot or feasibility studies. It is the first step the researcher
takes into the unknown, to explore new frontiers which determine whether a full-
scale investigation is worthwhile. Exploratory studies are also conducted to develop,
refine or test the designed measuring instruments. For example, in designing a
questionnaire to measure the parameters an individual looks at while taking an
investment decision, one needs to first explore the benefits of a financial instrument,
which could be the advantages sought by a consumer while saving. Another case
could be that we identify the selection parameters a person considers while enrolling
for a pilot training institute. After an assessment is made about the importance of the
parameters considered, one can then work out the financial feasibility of setting up
a private pilot training institute.
The nature of the study being loosely structured means the researcher’s skill in
observing and recording all possible information and impressions determines the
accuracy of the findings. Along with the researcher’s versatility, there are other ways
in which findings of the exploratory research can be greatly enhanced. These will be
discussed in detail in the data collection chapters.
Fundamental/basic research
is vast and the time period
involved in it
is flexible.Whereas in applied
research, the goal is action-
oriented and focuses on
immediate results.
Exploratory research allows
the researcher to gain a better
understanding of the concept
and provides direction in order
to initiate a more structured
research.
chawla.indb 6 27-08-2015 16:25:30

7
Conclusive Research
The findings and propositions developed as a consequence of exploratory research
mightbetestedandauthenticatedbyconclusiveresearch.Thiskindofresearchstudy
is especially carried out to test and validate formulated hypotheses and specified
relationships. In contrast to exploratory research, these studies are more structured
and definite. The variables and constructs in the research are clearly defined with
explicit quantifiable indications or simply, the variables can be denoted in the form
of numbers that can be quantified and summarized. The timeframe of the study and
respondent selection is more formal and representative. The emphasis on reliability
and validity of the research findings assume critical significance as the concluded
results might need to be implemented, in case it is an applied research study. For
example, if a research study has to be conducted to test the impact of a new data
monitoring programme on the inventory management system of a hearing aids’
manufacturer, then the impact needs to be clearly discernible for the management
to install the monitoring system.
It is to be noted, however, that it is not always the exploratory that leads to the
conclusive. Sometimes the hypothesized relationship to be tested might be spelled
out by the manager as the problem to be investigated. An example is testing the level
of consumer satisfaction with different insurance policies that an organization has
offered to consumers at large. A simple differentiation between the two broad areas
of research is presented in Table 1.1.
As shown in Figure 1.1, conclusive research can further be divided into
descriptive and causal research. This categorization is basically made based on the
nature of investigation required.
Descriptive research
As the name suggests, descriptive research is undertaken to describe the situation,
community, phenomenon, outcome or programme. The main goal of this type of
research is to describe the data and characteristics about what is being studied. The
annual census carried out by the Government of India is an example of descriptive
research. It is contemporary, topical and time-bound. It addresses the establishment
or exploration of a formulated proposition. For example, the study might want to
distinguish between the characteristics of the customers who buy normal petrol and
those who buy premium petrol. Is the consumption of organic food more in affluent
South Delhi as compared to the other areas in Delhi? What is the level of involvement
Conclusive research
tests and authenticates
the propositions revealed
by exploratory research. It
is usually quantitative in
nature.
Descriptive research aims
at elucidating the data and
primary characteristics about
the object/situation/concept
under study.
TABLE 1.1
Differences between
exploratory and
conclusive research
EXPLORATORY RESEARCH CONCLUSIVE RESEARCH
Findings are significant as they have a
theoretical or applied implication
Findings might be topic-specific and might
not have much relevance outside the
researcher’s domain
Most conclusive researches are carried
out to test the fomulated hypotheses
Has a formal and definitive methodology
that needs to be followed and tested
Is well structured and systematic in design
Is loosely structured in design
Is flexible and investigative
in methodology
Does not involve testing of hypotheses
chawla.indb 7 27-08-2015 16:25:38

of middle-level versus senior-level managers in a company’s stock-related decisions?
Organizational climate studies are conducted in different organizations. A study
of inventory management practices in the best-managed companies is another
example. The commonality between all these research studies is the fact that unlike
the exploratory, these are being conducted to test specific hypotheses and trends.
They are relatively more structured and require a formal, specific and systematic
approach to sampling, collecting information, collating and testing the data to verify
the research assumptions.
The findings of descriptive studies are largely of a diagnostic nature, i.e., the
studies indicate the existing symptoms of a particular situation without establishing
the causality of the relationship.
Causal research
To address the need for establishing causality, there is another kind of conclusive
research study called causal research. These studies establish the why and the how
of a phenomenon. Causal research explores the effect of one thing on another and
more specifically, the effect of one variable on another. They are highly structured
and require a rigid sequential approach to sampling, data collection and data
analysis. The design of the study takes on a critical significance here. To establish
a reliable and testable relationship between two or more constructs or variables,
the other influencing variables must be controlled so that their impact on the effect
can be eliminated or minimized. For example, to study the impact of flexible work
policies on turnover intentions, the other intervening variables, of age, marital
status, organizational commitment and job autonomy would need to be controlled.
Causal research is
concerned with exploring
the effect of one variable
on another. It requires a
rigid sequential approach
to sampling, data collection
and data analysis.
FIGURE 1.1
Types of research
Descriptive Research Causal Research
Business Research
Exploratory Research Research
Conclusive
Basic Research Research
Applied
CONCEPT
CHECK
1. What do you understand by the term ‘research’?
2. Define exploratory research and conclusive research.
3. What is the difference between exploratory research and conclusive research?
chawla.indb 8 27-08-2015 16:25:38

9
This method of controlling the intervening variables will be discussed in detail in the
subsequent chapter. This kind of research, like research in pure sciences, requires
experimentation to establish causality. In majority of the situations, it is quantitative
in nature and requires statistical testing of the information collected.
THE PROCESS OF RESEARCH
Business research, no matter what the objective and thrust behind it, essentially
needs to follow a sequential and structured path. The stages might overlap and
sometimes be bypassed or eliminated in some research studies. While conducting
research, information is gathered through a sound and scientific research process.
Each year organizations spend enormous amounts of money for research and
development in order to maintain their competitive edge. Some authors might call
the interlinked and systematic progression as an oversimplification of the process, as
every research has a unique orientation and methodology. While we do not disagree
with the notion, we would nevertheless like to propose a broad framework that is
often used as a blueprint or map and is usually followed in most researches. The
process of research according to us is cyclic in nature and is interlinked at every
stage (Figure 1.2). In the following paragraphs we will briefly discuss the steps that,
in general, any research study might follow:
The Management Dilemma
Any research needs to be triggered by the need and desire to know more. This need
might be merely because we want to discover and reinstate some relationships,
the orientation might be purely academic with the purpose of uncovering some
new perspectives to existing phenomena (basic or fundamental research) or there
might be an immediate business decision that requires additional information
acquisitions and analysis in order to arrive at any effective and workable solution
(applied research). For example, an HR consultant or professor might wish to study
some aspect of the work-life balance phenomenon or a soft drinks manufacturer
might want to test the acceptability of fruit-based juices to his product portfolio.
Defining the Research Problem
This is the first and the most critical step of the research journey. Some authors
might object to the word problem as it indicates a negative nuance to the process.
We would like to clarify the reason for this usage. It is because the entire sequence
of the discovery is oriented towards looking for a solution(s) to the researcher’s
dilemma. It is a prelude to the end result that we hope to achieve, which is why
this step itself may require considerable thought and analysis; as unless there is
a clear definition of what one is seeking and for what purpose, it is not possible
to begin. For example, in the area of work-life balance, the researcher might be
looking at the impact of work-family conflict on turnover intentions. It might be
felt that when it comes to women professionals, we might perceive that rather
than role (job role) conflict, it could be her work-family conflict that might impact
her job commitment, which, in turn, could impact her intention to quit (turnover
intention). A clear definition of what is meant by work-family conflict, job
commitment, and turnover intentions needs to be made so that there is complete
clarity in the mind of the researcher regarding the elements of the constructs that
he/she would need to collect information on.
The process of research
is cyclic in nature and is
interlinked at every stage.
Defining a research
problem is a kind of prelude
to the end result one hopes
to achieve and therefore
it requires considerable
thought and analysis.
Apprehend the
steps that need to
be accomplished in
order to complete the
research study.
chawla.indb 9 27-08-2015 16:25:38

Formulating the Research Hypotheses
In this given model, we have made broken lines to link the research problem
definition stage and the hypotheses formulation stage. The reason behind a
research study might not always begin with a hypothesis; in fact, the task of the
study might be to collect rich, in-depth and detailed data that might lead to, at the
end of the study, some indicative propositions that can be construed as hypotheses
to be tested in subsequent research. This is most often the case with descriptive
research. For example, in a research that is studying the economic indicators
of human development in a country, the study is directed towards indicating the
standing of the country on the defined variables and is not an authentication of the
relationship between the concepts. The outcome may give an indication of the
probablerelationshipbetweenlongevity,literacyandpurchasingpowerparity(PPP),
and the outcome of which might be constructed into a hypothesized formulation of
the Human Development Index.
Hypothesis is, in fact, the presupposition of the expected direction of the results
of the research. For example, it might be hypothesized that the research might be
oriented towards testing a direct relationship between work-family conflict and
turnover intentions. Higher the conflict, higher is the intention to leave. Conversion
of the defined problem into a working hypotheses will be discussed in Chapter 2.
Developing the Research Proposal
Once the management dilemma has been converted into a defined problem
and a working hypothesis, the next step is to develop a framework of the plan of
investigation. Sometimes this step is carried out simultaneously with the research
design formulation and sometimes after the data collection and sampling plan
have been crystallized. The reason for its placement before the other stages is that a
proposal is most often a time- and objective-bound commitment that a researcher
needs to make to himself or the manager for whom the study is being carried out. It
needs to spell out the research problem, the scope and the objectives of the study and
the operational plan for achieving the same. The proposal is a flexible contract about
the proposed methodology and once it is formalized and accepted, the research is
ready for initiation.
Research Design Formulation
Based on the orientation of the research, i.e., exploratory, descriptive or causal,
the researcher has a number of techniques for testing the stated objectives. These
methods have a clear indication of the process of systematically controlling the
variables under study in order to be able to establish the association or causality of
the relationship under the study. Since critical managerial decisions are dependent
on research outputs, the strength and accuracy of the findings can be ensured only
through rigorous experimentation. Since the main task of the design is to explain
how the research problem will be investigated, the logic or justification for the
selected design needs to be explicit, accurate and measurable. For example, an
exploratory study investigating the kind of hearing disorders prevalent in India
might require a loosely designed framework of secondary information through
historical hospital data, or discussions with some experts—like doctors and
pathologists—to arrive at conclusions. However, the acceptability of some price
points of a digital hearing aid might require a controlled and empirical study in
the field (depending on time and cost resources) or under simulated conditions to
measure the price and acceptability relationship.
Hypothesis is the presuppo-
sition of the expected
direction of the results of a
research.
chawla.indb 10 27-08-2015 16:25:38

11
Sampling Design
This section refers to how one goes about making an investigation of the respondent
population to be studied. It is not always possible to study the entire population.
Thus,onegoesaboutstudyingasmallandrepresentativesub-groupofthesame.This
sub-group is referred to as the sample of the study. There are different techniques
available for selecting the group based on certain assumptions. For example,
would you conduct your price sensitivity study on ENT doctors or consumers using
hearing aids? Is the acceptability of the fruit-based beverage by the consumer to be
measured based on retailers of beverage products, consumers of juices, consumers
of water or consumer of the manufacturer’s brand? These are questions which, once
selected, will indicate the direction of the results and the group and determine the
accuracy of the decision based on the findings. The most important criteria for this
selection would be the representativeness of the sample selected from the population
under study. The second rule to avoid a probability of error in prediction is that the
selected sample should be free from researcher’s bias and the degree of precision/
error should be measurable and small enough to be deducted from the results.
Two categories of sampling designs available to the researcher are probability
and non-probability. The selection of one or the other depends on the nature of
the research, degree of accuracy required (the probability sampling techniques
reveal more accurate results) and the time and financial resources available for the
research.
Another critical decision the researcher needs to take is to determine the
optimal sample size to be selected in order to obtain results that can be considered
as representative of the population under study. This is a structured and scientific
procedure and the researcher can take informed decisions based on certain
mathematical computations. This would be studied in subsequent chapters.
Planning and Collecting the Data for Research
In the model (Figure 1.2), we have placed planning and collecting data for research as
simultaneoustothesamplingplan.Thisisbecausethesetwo—basedontheresearch
design—need to be developed concurrently. The reason for this is that the sampling
plan helps in identifying the population under study and the data collection plan
helps in working out ways of obtaining information from the specified population.
There are a huge variety and number of data collection instruments available to
the researcher. Broadly, these may be classified into secondary and primary data
methods. Each has multiple sub-divisions available. Primary, as the name suggests,
is original and collected first hand for the problem under study. There are a variety
of primary data methods available to the researcher ranging from subjective, non-
quantifiable interviews, focus group discussions, personal/telephonic interviews/
mail survey to the well-structured and quantifiable questionnaires. Secondary data
is information that has been collected and compiled earlier. For example, company
records, magazine articles, expert opinion surveys, sales records, customer feedback,
government data and previous researches done on the topic of interest. For example,
a study that measures the acceptability of orange-flavoured drink versus natural
orangejuicebyconsumersrequiresempiricalandprimaryinformation.Ontheother
hand, a descriptive financial investment behaviour study of consumers might be able
to make use of secondary data. There are sub-steps involved at this stage—primary
data instrument design and pilot testing. For example, if we want to measure the
work-family conflict experienced by women in the health care sector and the steps
that women professionals take to balance this, the study requires empirical data
A researcher should avoid
probability of error by
selecting a sample that
is free from every bias
and ensuring that the
degree of precision/error is
measurable.
Primary data is original
and is collected first hand
for a study. Secondary
data, on the other hand,
is the information that has
been collected and compiled
earlier.
chawla.indb 11 27-08-2015 16:25:38

collection and instrument design. Once the instrument has been designed, it has to
be tested and refined (pilot testing) before actual data collection can take place. In
case a pre-constructed instrument is available and has been developed to measure
the specific construct, the two steps of instrument design and testing can be done
away with (indicated by the broken lines for these steps in the model in Figure 1.2).
This step in the research process requires careful and rigorous quality checks
to ensure the reliability and validity of the data collected. There are measurement
options available to establish these criteria for the data collection instrument, which
have been discussed in the subsequent chapter. Once the instrument is ready, the
field work begins and the data is collected from the respondent population based on
the devised sampling plan.
Data Refining and Preparation for Analysis
Once the data is collected, it must be refined and processed in the format required
for evaluating the information in order to answer the research question(s) and test
the formulated hypotheses (if any). This stage requires editing of the data for any
omissions and irregularities. Then it is coded and tabulated in a manner in which it
can be subjected to statistical testing.
In case of data which is subjective and qualitative, the information collected
has to be post coded into broad categories to be able to arrive at any inference and
conclusion. For example, in-depth exit interviews will have to be carefully filtered
and categorized after the conduction rather than before the conduction.
Data Analysis and Interpretation of Findings
This is actually the crux of the researcher’s contribution to the study. This stage
requires, firstly, the selection of analytical tools for assessing the information
collected to realize the research objectives. There are a number of statistical
techniques available to the researcher—parametric and non-parametric
techniques—these are selected based on the type of study, degree of accuracy
required, the sampling plan used and the nature of the questions asked. In case
the analysis requires testing a single variable under study, univariate data analysis
method is used. In case one is testing or measuring the relationship between two
variables, then one makes use of bivariate analysis methods; and if the variables
being investigated are more than two, then one uses multivariate analysis of data.
For analysing subjective and qualitative data, there are various other methods
available which will be discussed in Chapter 6.
The technique chosen must be carefully decided upon and justified, as a wrong
test or criterion selection can have hazardous effects on the study results. The
selection criteria for the tests, the assumptions and the preconditions for each, are
discussed in detail in later chapters.
Once the data has been analysed and summarized, the skill of the researcher in
linking the results with the research objectives, stating clearly the implications of the
findings and doing all this with an objective and rational approach, is the ultimate test.
The Research Report and Implications for the Manager’s Dilemma
Thereportcompilationthatstartsfromtheproblemformulationtotheinterpretation
is the final part of the process. As we stated earlier, business research is ultimately
always directed towards answering the question ‘so what are the implications for
The collected data should be
edited and refined for any
omissions and irregularities.
It should be then coded and
tabulated for statistical
analysis.
Univariate, bivariate
and multivariate
analysis can be done to
examine a single variable,
two variables or more
than two variables given
under a specific study.
chawla.indb 12 27-08-2015 16:25:38

13
FIGURE 1.2
The process of research Management Dilemma
(Basic vs Applied)
Defining the Research Problem
Formulating the Research Hypothesis
Developing the Research Proposal
The Research Framework
Research Design
Instrument Design
Pilot Testing
Data Collection Plan Sampling Plan
Data Collection
Data Refining and Preparation
Data Analysis and Interpretation
Research Reporting
Management/Research Decision
chawla.indb 13 27-08-2015 16:25:39

the corporate world?’ Thus, in this step, the researcher’s expertise in analysing,
interpreting and recommending, is of prime importance. The manager is not going
to be as enthusiastic about the study unless he is able to clearly foresee the solution
to his problem, topical (juice launch) or otherwise (work-life balance).
At this instance, it might happen that the entire process is carried out without
any concrete and significant results. This is no reason for being disheartened, as
this indicates other possibilities that need to be subjected to research and the loop
begins all over again with a new research problem and a different perspective.
RESEARCH APPLICATIONS IN BUSINESS DECISIONS
The discussion so far points out the role and significance of research in aiding
business decisions. The question one might ask here is about the critical importance
of research in different areas of management. Is it most relevant in marketing?
Do financial and production decisions really need research assistance? Does the
method or process of research change with the functional area?
The answer to all the above questions is NO. Business managers in each field—
whether human resources or production, marketing or finance—are constantly
being confronted by problem situations that require effective and actionable
decision making. Most of these decisions require additional information or
information evaluation, which can be best addressed by research. While the nature
of the decision problem might be singularly unique to the manager, organization
and situation, broadly for the sake of understanding, it is possible to categorize them
under different heads.
Marketing Function
This is one area of business where research is the lifeline and is carried out on a
vast array of topics and is conducted both in-house by the organization itself and
outsourced to external agencies. Broader industry- or product-category-specific
studies are also carried out by market research agencies and sold as reports for
assisting in business decisions. Studies like these could be:
r Market potential analysis; market segmentation analysis and demand estimation
r Market structure analysis which includes market size, players and market share of
the key players
r Sales and retail audits of product categories by players and regions as well as
national sales; consumer and business trend analysis—sometimes including
short-/long-term forecasting
However, it is to be understood that the above-mentioned areas need not
always be outsourced; sometimes they might be handled by a dedicated research
or new product development department in the organizations. Other than these, an
organization also carries out researches related to all four Ps of marketing such as:
1. Product research: This would include new product research; product testing and
development; product differentiation and positioning; testing and evaluating new
products and packaging research; brand research—including equity to tracks and
imaging studies.
Problem situations require
effective and actionable
decision-making which can
be assisted by information
evaluation.
Four Ps of marketing
research are product
research, pricing research,
promotional research and
place research.
CONCEPT
CHECK
1. What are the steps in a typical research?
2. Does research always lead to solutions?
Formulate a research
proposal for a research
endeavour.
chawla.indb 14 27-08-2015 16:25:39

15
2. Pricing research: Price determination research; evaluating customer value;
competitor pricing strategies; alternative pricing models and implications.
3. Promotional Research: Includes everything from designing of the communi-
cation mix to design of advertisements, copy testing, measuring the impact of
alternative media vehicles, impact of competitors’ strategy.
4. Place research: Includes locational analysis, design and planning of distribution
channels and measuring the effectiveness of the distribution network.
These days, with the onset of increased competition and the need to convert
customers into committed customers, customer relationship management (CRM),
customer satisfaction, loyalty studies and lead user analysis are also areas in which
significant research is being carried out.
Personnel and Human Resource Management
Human resources (HR) and organizational behaviour is an area which involves basic
or fundamental research as a lot of academic, macro-level research may be adapted
and implemented by organizations into their policies and programmes. Applied HR
research by contrast is more predictive and solution-oriented. Though there are a
number of academic and organizational areas in which research is conducted, yet
some key contemporary areas which seem to attract more research are as follows:
r Performance management: Leadership analysis development and evaluation;
organizational climate and work environment studies; talent and aptitude analysis
and management; organizational change implementation, management and
effectiveness analysis.
r Employee selection and staffing: This includes pre- and on-the-job employee
assessment and analysis; staffing studies.
r Organizational planning and development: Culture assessment—either
organization-specific or the study of individual and merged culture analysis for
mergers and acquisitions; manpower planning and development.
r Incentive and benefit studies: These include job analysis and performance
appraisal studies; recognition and reward studies, hierarchical compensation
analysis; employee benefits and reward analysis, both within the organization and
industry best practices.
r Training and development: These include training need gap analysis; training
development modules; monitoring and assessing impact and effectiveness of
training.
r Other areas: These include employee relationship analysis; labour studies;
negotiation and wage settlement studies; absenteeism and accident analysis;
turnover and attrition studies and work-life balance analysis.
Critical success factor analysis and employer branding are some emerging
areas in which HR research is being carried out. The first is a participative form of
management technique, developed by Rockart (1981) in which the employees of
an organization identify their critical success factors and help in customizing and
incorporating them in developing the mission and vision of their organization.
The idea is that a synchronized objective will benefit both the individual and the
organization, and which will lead to a commitment and ownership on the part of the
employees. Employer branding is another area which is being actively investigated
as the customer perception (in this case it is the internal customer, i.e., the employee)
about the employer or the employing organization has a strong and direct impact on
his intentions to stay or leave. Thus, this is a subjective qualitative construct which
can have hazardous effect on organizational effectiveness and efficiency.
Critical success factor
analysis is done both at
individual and organizational
level.
chawla.indb 15 27-08-2015 16:25:39

Financial and Accounting Research
The area of financial and accounting research is so vast that it is difficult to provide a
pen sketch of the research areas. In this section, we are providing just a brief overview
of some research topics:
r Asset pricing, corporate finance and capital markets: The focus here is on stock
market response to corporate actions (IPOs, takeovers and mergers), financial
reporting (earnings and firm-specific announcements) and the impact of factors
on returns, e.g., liquidity and volume.
r Financial derivatives and interest rate and credit risk modeling: This includes
analysing interest rate derivatives, development and validation of corporate credit
rating models and associated derivatives; analysing corporate decision making
and investment risk appraisal.
r Market-based accounting research: Analysis of corporate financial reporting
behaviour; accounting-based valuations; evaluation and usage of accounting
information by investors and evaluation of management compensation schemes.
r Auditing and accountability: This includes both private and public sector
accounting studies, analysis of audit regulations; analysis of different audit
methodologies; governance and accountability of audit committees.
r Financial econometrics: This includes modelling and forecasting in volatility,
risk estimation and analysis.
r Other related areas of investigation: These are in merchant banking and
insurance sector and business policy and economics areas.
Considering the nature of the decision required in this area, the research is a mix
of historical and empirical research. Behavioural finance is a new and contemporary
area in which, probably, for the first time subjective and perceptual variables are
being studied for their predictive value in determining consumer sentiments.
Production and Operation Management
This area of management is one in which quantifiable implementation of the
research results takes on huge cost and process implications. Research in this area is
highly focused and problem-specific. The decision areas in which research studies
are carried out are as follows:
r Operation planning: These include product/service design and development,
and resource allocation and capacity planning.
r Demand forecasting and decision analysis
r Process planning: Production scheduling and material requirement manage-
ment; work design planning and monitoring.
r Project management and maintenance management studies
r Logistics and supply chain and inventory management analysis
r Quality estimation and assurance studies: These include total quality manage-
ment (TQM) and quality certification analysis.
This area of management also invites academic research which might be
macro and general but helps in developing technologies such as JIT (just-in-time
technology) and EOQ (economy order quantity—an inventory management model)
which are then adapted by organizations for optimizing operations.
Financial and accounting
research is a mix of
historical and empirical
research.
chawla.indb 16 27-08-2015 16:25:39

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