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RESEARCH
METHODOLOGY
METHODS AND TECHNIQUES

C R KOTHARI • GAURAV GARG

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 RESEARCH
METHODOLOGY
METHODS AND TECHNIQUES
FIFTH
EDITION

C R KOTHARI
Former Principal, College of Commerce
University of Rajasthan, Jaipur
Rajasthan (India)

GAURAV GARG
Associate Professor
Indian Institute of Management
Lucknow, Uttar Pradesh (India)

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Copyright © 2024, 2019, 2014, 2004, 1990, 1985, New Age International (P) Ltd., Publishers
Published by New Age International (P) Ltd., Publishers
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 PREFACE TO THE FIFTH EDITION

The warm reception to this book by academicians and students since its inception (1985) leading to
publication of editions in quick succession (4th edition in 2019). The 39 years’ journey of this book is
a long life for any book. The book has been recommended and considered as a standard and popular
textbook on this subject at undergraduate and postgraduate levels at Indian Universities and other
educational institutions. It is well-equipped to meet the challenging requirements for students as well
as teachers.
In this edition, we corrected some mistakes and added some new problems along with the
datasets. Scan the QR code for the datasets used in the solved and unsolved problems.
Also an appendix B (using R for Statistical Methods) has been added in this edition that will help
the students in their self study and understanding the subject in a better way.
Updates in the text have been made wherever necessary.
It has been great working with New Age International Publishers. It is good to see that they
believe in continuous improvement of this popular textbook. I look forward for your feedback based
on which we may think of improving this text further.

GAURAV GARG

QR Code

(vii)

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 CONTENTS

Preface to the Fifth Edition (vii)

Preface to the Second Edition (viii)
Preface to the First Edition (ix)

1. Research Methodology: An Introduction 1

1.1 Meaning of Research 1
1.2 Objectives of Research 2
1.3 Types of Research 2
1.4 Research Approaches 4
1.5 Significance of Research 5
1.6 Research Methods versus Methodology 6
1.7 Research and Scientific Method 8
1.8 Research Process 9
1.9 Criteria of Good Research 19
1.10 Problems Encountered by Researchers in India 20
l Problems 21

2. Defining the Research Problem 22

2.1 What is a Research Problem? 22
2.2 Selecting the Problem 23
2.3 Necessity of Defining the Problem 24
2.4 Technique Involved in Defining a Problem 25
2.5 An Illustration 27
2.6 Conclusion 28
l Problems 28

(xi)
xii Contents

3. Research Design 29
3.1 Meaning of Research Design 29
3.2 Need for Research Design 30
3.3 Features of a Good Design 31
3.4 Important Concepts Relating to Research Design 31
3.4.1 Dependent and Independent Variables 32
3.4.2 Extraneous Variable 32
3.4.3 Control 32
3.4.4 Confounded Relationship 32
3.4.5 Research Hypothesis 33
3.4.6 Experimental and Non-Experimental Hypothesis-Testing Research 33
3.4.7 Experimental and Control Groups 33
3.4.8 Treatments 33
3.4.9 Experiment 34
3.4.10 Experimental Unit(s) 34
3.5 Different Research Designs 34
3.5.1 Research Design in Case of Exploratory Research Studies 34
3.5.2 Research Design in Case of Descriptive and Diagnostic Research Studies 35
3.5.3 Research Design in Case of Hypothesis-Testing Research Studies 38
3.6 Basic Principles of Experimental Designs 38
3.7 Important Experimental Designs 39
3.7.1 Before-and-After Without Control Design 40
3.7.2 After-Only with Control Design 40
3.7.3 Before-and-After with Control Design 41
3.7.4 Completely Randomized Design (C.R. Design) 41
3.7.5 Randomized Block Design (R.B. Design) 44
3.7.6 Latin Square Design (L.S. Design) 45
3.7.7 Factorial Designs 46
3.8 Conclusion 51
l Problems 51

4. Design of Sample Surveys 52

4.1 Introduction 52
4.2 Sample Design 52
4.3 Sampling and Non-sampling Errors 54
4.3.1 Sampling Errors 54
4.3.2 Non-sampling Errors 55
Contents xiii

4.4 Sample Survey Vs. Census Survey 55

4.5 Types of Sampling Designs 55
4.5.1 Non-probability Sampling 55
4.5.2 Probability Sampling 56
4.5.3 Complex Random Sampling Designs 58
l Problems 64

5. Measurement and Scaling 66

5.1 Quantitative and Qualitative Data 66
5.2 Classifications of Measurement Scales 67
5.3 Goodness of Measurement Scales 70
5.4 Sources of Error in Measurement 72
5.5 Techniques of Developing Measurement Tools 72
5.6 Scaling 73
5.7 Scale Classification Bases 74
5.8 Scaling Techniques 75
5.8.1 Comparative Scaling Techniques 76
5.8.2 Non-comparative Scaling Techniques 79
5.9 Multidimensional Scaling 86
5.10 Deciding the Scale 87
l Summary 87
l Problems 87

6. Data Collection 89
6.1 Introduction 89
6.2 Experiments and Surveys 89
6.3 Collection of Primary Data 91
6.3.1 Difference between Questionnaire and Schedule 100
6.3.2 Guidelines for Constructing Questionnaire/Schedule 101
6.3.3 Some Other Methods of Data Collection 102
6.4 Collection of Secondary Data 107
6.5 Selection of Appropriate Method for Data Collection 108
6.6 Case Study Method 109
l Problems 113
xiv Contents

7. Data Preparation 114

7.1 Data Preparation Process 114
7.1.1 Questionnaire Checking 114
7.1.2 Editing 115
7.1.3 Coding 115
7.1.4 Classification 116
7.1.5 Tabulation 119
7.1.6 Graphical Representation 121
7.1.7 Data Cleaning 124
7.1.8 Data Adjusting 124
7.2 Some Problems in Preparation Process 125
7.3 Missing Values and Outliers 126
7.4 Types of Analysis 126
7.5 Statistics in Research 127
l Problems 128

8. Descriptive Statistics 129

8.1 Measures of Central Tendency 129
8.1.1 Mean 129
8.1.2 Median 130
8.1.3 Mode 131
8.1.4 Other Averages 131
8.2 Measures of Dispersion 132
8.2.1 Range 132
8.2.2 Mean Deviation 132
8.2.3 Standard Deviation 133
8.3 Measures of Skewness 134
8.4 Kurtosis 136
8.5 Measures of Relationship 136
8.5.1 Covariance 138
8.5.2 Karl Pearson's Coefficient of Correlation 139
8.5.3 Rank Correlation 140
8.6 Association in Case of Attributes 140
8.7 Other Measures 143
8.7.1 Index Numbers 143
8.7.2 Time Series 144
l Problems 146
Contents xv

9. Sampling and Statistical Inference 147

9.1 Parameter and Statistic 148
9.2 Sampling and Non-sampling Errors 148
9.3 Sampling Distribution 149
9.3.1 Sampling Distribution of Mean 150
9.3.2 Sampling Distribution of Proportion 150
9.3.3 Student’s t-Distribution 151
9.3.4 Chi-square ( χ2) Distribution 151
9.3.5 Snedecor’s F-Distribution 152
9.4 Degree of Freedom 152
9.5 Standard Error 152
9.6 Central Limit Theorem 153
9.7 Finite Population Correction 154
9.8 Statistical Inference 154
9.8.1 Point Estimation 154
9.8.2 Interval Estimation 156
9.8.3 Sample Size and its Determination 162
9.8.4 Tests of Significance (Hypothesis Testing) 170
l Problems 175

10. Testing of Hypothesis 179

10.1 What is a Hypothesis? 179
10.2 Basic Concepts Concerning Testing of Hypothesis 180
10.2.1 Null Hypothesis and Alternative Hypothesis 180
10.2.2 Type I and Type II Errors 181
10.2.3 Level of Significance 182
10.2.4 Two-Tailed and One-Tailed Tests 182
10.3 Testing the Hypothesis 183
10.4 Test Statistic and Critical Region 183
10.5 Critical Value and Decision Rule 184
10.6 Procedure for Hypothesis Testing 185
10.7 Hypothesis Testing for Mean 187
10.8 Hypothesis Testing for Proportion 190
10.9 Hypothesis Testing for Variance 191
10.10 Hypothesis Testing for Difference of Two Mean 194
10.11 Hypothesis Testing for Difference of Two Proportions 198
xvi Contents

10.12Hypothesis Testing for Difference of Two Variances 199

10.13p-Value Approach 202
10.14Power of the Test 204
10.15Limitations of the Tests of Hypotheses 206
l Problems 230

11. Chi-Square Tests 235

11.1 Test of Difference of more than Two Proportions 235
11.2 Test of Independence of Attributes 237
11.2.1 Alternative Formula 242
11.2.2 Yates' Correction 242
11.2.3 Magnitude of Association 243
11.2.4 Coefficient of Contingency 243
11.3 Test of Goodness of Fit 244
11.3.1 Goodness of Fit Test for Normal Distribution 245
11.4 Caution in Using Chi Square Tests 247
l Problems 256

12. Analysis of Variance 261

12.1 The ANOVA Technique 261
12.2 The Basic Principle of ANOVA 262
12.3 One Way ANOVA 263
12.3.1 Analysis of Variance Table 264
12.3.2 Short-cut Method for One-way ANOVA 265
12.3.3 Critical Difference 269
12.4 Two Way ANOVA 271
12.4.1 One Observation per Cell 271
12.4.2 More than One Observations Per Cell 274
12.5 Latin-square Design 277
12.6 Analysis of Co-variance (ANOCOVA) 281
12.7 Assumptions in ANOCOVA 282
l Problems 286

13. Other Nonparametric Methods 290

13.1 Sign Tests 291
13.1.1 One Sample Sign Test 291
13.1.2 Two Samples Sign Test (Paired Sign Test) 292
Contents xvii
13.2 Wilcoxon Signed Rank Sum Test for Single Population 294
13.2.1 Wilcoxon Signed Rank Sum Test (Single Sample) 294
13.2.2 Wilcoxon Signed Rank Sum Test (Paired Samples)
or Wilcoxon Matched Pairs Test 295
13.3 Mann Whitney U Test 297
13.4 Run Test 301
13.5 Kruskal Wallis Test 302
13.6 Spearman’s Rank Correlation 304
13.7 Some Features of Non-parametric Tests 309
l Problems 310

14. Linear Regression Analysis 312

14.1 Dependent and Independent Variables 312
14.2 Simple Linear Regression Model 313
14.2.1 Least Squares Estimation 313
14.2.2 Coefficient of Determination 316
14.2.3 Standard Error 319
14.2.4 Assumptions or Conditions Required 319
14.2.5 Testing the Hypothesis about the Slope and Correlation Coefficient 323
14.2.6 Confidence Interval Estimate of the Slope 325
14.2.7 Confidence Interval 326
14.2.8 Prediction Interval 326
14.2.9 Using Excel 327
14.3 Multiple Linear Regression Model 328
14.3.1 Least Squares Estimation 329
14.3.2 R2 and Adjusted R2 Coefficients 331
14.3.3 Standard Error 331
14.3.4 Assumptions 332
14.3.5 t-Test for the Slopes 333
14.3.6 F-Test (ANOVA) 334
14.3.7 Confidence Interval Estimates of the Regression Coefficients 335
14.3.8 Confidence Interval of Mean Response and Prediction Interval of
Individual Response 336
14.4 Problem of Multicolinearity 336
14.4.1 Variance Inflationary Factor 339
14.4.2 Variable Elimination 340
14.5 Qualitative Explanatory Variables 341
14.6 Using SPSS 344
l Problems 355
xviii Contents

15. Factor Analysis 357

15.1 The Mathematical Basis 357

15.2 Important Methods of Factor Analysis 358
15.2.1 Centroid Method 359
15.2.2 Principal Components Method 365
15.2.3 Maximum Likelihood Method 370
15.3 Rotation in Factor Analysis 371
15.4 R-Type and Q-Type Factor Analysis 371
15.5 Merits and Demerits of Factor Analysis 371
15.6 Using SPSS 372
l Problems 381

16. Discriminant Analysis 382

16.1 Introduction 382
16.2 Two Group Discriminant Analysis 385
16.2.1 Methodology 386
16.2.2 Assumptions 387
16.2.3 Using SPSS 387
16.2.4 Predicting Group Membership 391
16.3 Multiple Discriminant Analysis 392
16.3.1 Methodology 392
16.3.2 Using SPSS 392
l Problems 395

17. Cluster Analysis 396

17.1 Introduction 396

17.2 Distance Measures 397
17.3 Clustering Algorithms 398
17.3.1 Non-hierarchical Clustering 398
17.3.2 Hierarchical Clustering 403
17.4 Agglomerative Clustering 403
17.4.1 Combining Clusters 403
17.4.2 Using SPSS 404
l Problems 408
Contents xix

18. Other Multivariate Techniques 409

18.1 Characteristics and Applications 410
18.2 Classification of Multivariate Techniques 410
18.3 Some Multivariate Techniques 411
18.3.1 Path Analysis 412
18.3.2 Canonical Correlation 413
18.3.3 Multidimensional Scaling 414
18.3.4 Multivariate ANOVA 414
18.3.5 Latent Structure Analysis 415
18.4 Conclusions 415
l Problems 415

19. Interpretation and Report Writing 416

19.1Meaning of Interpretation 416
19.2Techniques of Interpretation 417
19.3Precautions in Interpretation 417
19.4Significance of Report Writing 418
19.5Different Steps in Writing Report 419
19.6Layout of the Research Report 420
19.7Types of Reports 422
19.8Oral Presentation 425
19.9Mechanics of Writing a Research Report 425
19.10Precautions for Writing Research Reports 430
19.11Conclusion 431
l Problems 431

v Appendix -A : Selected Statistical Tables 433

v Appendix -B : Using R for Statistical Methods (Elementary) 449
v Selected References and Recommended Readings 455
v Index 461
 1
Research Methodology: An Introduction

1.1 MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge. One can also define research as a
scientific and systematic search for pertinent information on a specific topic. In fact, research is an
art of scientific investigation. Dictionary definition of research is a careful investigation or inquiry
specially through search for new facts in any branch of knowledge. Some people consider research
as a movement from the known to the unknown. It is actually a voyage of discovery. We all possess
the vital instinct of inquisitiveness. When the unknown confronts us, more and more our inquisitiveness
makes us probe and attain understanding of the unknown. This inquisitiveness is the mother of all
knowledge and the method, which one employs for obtaining the knowledge of whatever the unknown,
can be termed as research.
Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody, research comprises defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organising and evaluating data; making deductions and
reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis. D. Slesinger and M. Stephenson in the Encyclopaedia of Social Sciences
define research as “the manipulation of things, concepts or symbols for the purpose of generalising to
extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the
practice of an art.” Research is, thus, an original contribution to the existing stock of knowledge
making for its advancement. It is the pursuit of truth with the help of study, observation, comparison
and experiment. In short, the search for knowledge through objective and systematic method of
finding solution to a problem is research. The systematic approach concerning generalisation and the
formulation of a theory is also research. As such the term ‘research’ refers to the systematic method
consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analysing
the facts and reaching certain conclusions either in the form of solution(s) towards the concerned
problem or in certain generalisations for some theoretical formulation.

1
 2 Research Methodology

1.2 OBJECTIVES OF RESEARCH

The purpose of research is to discover answers to questions through the application of scientific
procedures. The main aim of research is to find out the truth which is hidden and which has not been
discovered as yet. Though each research study has its own specific purpose, we mention some
general objectives of research below:
(i) To gain familiarity with a phenomenon or to achieve new insights into it (studies with this
object in view are termed as exploratory or formulative research studies);
(ii) To portray accurately the characteristics of a particular individual, situation or a group
(studies with this object in view are known as descriptive research studies);
(iii) To determine the frequency with which something occurs or with which it is associated
with something else (studies with this object in view are known as diagnostic research
studies);
(iv) To test a hypothesis of a causal relationship between variables (such studies are known as
hypothesis-testing research studies).

1.3 TYPES OF RESEARCH

The basic types of research are as follows:
(i) Descriptive vs. Analytical: Descriptive research includes surveys and fact-finding enquiries
of different kinds. The major purpose of descriptive research is description of the state of
affairs as it exists at present. In social science and business research we quite often use
the term Ex post facto research for descriptive research studies. The main characteristic
of this method is that the researcher has no control over the variables; he can only report
what has happened or what is happening. Most ex post facto research projects are used
for descriptive studies in which the researcher seeks to measure such items as, for example,
frequency of shopping, preferences of people, or similar data. Ex post facto studies also
include attempts by researchers to discover causes even when they cannot control the
variables. The methods of research utilized in descriptive research are survey methods of
all kinds, including comparative and correlational methods. In analytical research, on the
other hand, the researcher has to use facts or information already available, and analyze
these to make a critical evaluation of the material.
(ii) Applied vs. Fundamental: Applied research aims at finding a solution for an immediate
problem facing a society or an industrial/business organisation, whereas fundamental research
is mainly concerned with generalisations and with the formulation of a theory. Gathering
knowledge for knowledge’s sake is termed fundamental research. Research concerning
some natural phenomenon or relating to pure mathematics are examples of fundamental
research. Similarly, research studies, concerning human behaviour carried on with a view
to make generalisations about human behaviour, are also examples of fundamental research.
However, research aimed at certain conclusions facing a concrete social or business problem
is an example of applied research. Research to identify social, economic or political trends
that may affect a particular institution, marketing research, evaluation research are examples
of applied research. Thus, the central aim of applied research is to discover a solution for
Research Methodology: An Introduction 3

some pressing practical problems, whereas basic research is directed towards finding

CHAPTER 1
information that has a broad base of applications and thus, adds to the already existing
organized body of scientific knowledge.
(iii) Quantitative vs. Qualitative: Quantitative research is based on the quantitative
measurements of some characteristics. It is applicable to phenomena that can be expressed
in terms of quantities. Qualitative research, on the other hand, is concerned with qualitative
phenomenon, i.e., phenomena relating to or involving quality or kind. For instance, when we
are interested in investigating the reasons for human behaviour (i.e., why people think or do
certain things), we quite often talk of ‘Motivation Research’, an important type of qualitative
research. This type of research aims at discovering the underlying motives and desires,
using in depth interviews for the purpose. Other techniques of such research are word
association tests, sentence completion tests, story completion tests and similar other projective
techniques. Attitude or opinion research i.e., research designed to find out how people feel
or what they think about a particular subject or institution is also qualitative research.
Qualitative research is specially important in the behavioural sciences where the aim is to
discover the underlying motives of human behaviour. Through such research we can analyse
the various factors which motivate people to behave in a particular manner or which make
people like or dislike a particular thing. It may be stated, however, that to apply for qualitative
research in practice is relatively a difficult job and therefore, while doing such research,
one should seek guidance from experimental psychologists.
(iv) Conceptual vs. Empirical: Conceptual research is that related to some abstract idea(s) or
theory. It is generally used by philosophers and thinkers to develop new concepts or to
reinterpret existing ones. On the other hand, empirical research relies on experience or
observation alone, often without due regard for system and theory. It is data-based research,
coming up with conclusions which are capable of being verified by observation or experiment.
We can also call it as experimental type of research. In such a research it is necessary to
get facts at firsthand, at their source, and actively to go about doing certain things to
stimulate the production of desired information. In such a research, the researcher must
first provide himself with a working hypothesis or guess as to the probable results. He then
works to get enough facts (data) to prove or disprove his hypothesis. He then sets up
experimental designs which he thinks will manipulate the persons or the materials concerned
so as to bring forth the desired information. Such research is thus characterised by the
experimenter’s control over the variables under study and his deliberate manipulation of
one of them to study its effects. Empirical research is appropriate when proof is sought that
certain variables affect other variables in some way. Evidence gathered through experiments
or empirical studies are considered to be the most powerful support possible for testing a
given hypothesis.
(v) Some Other Types of Research: All other types of research are variations of one or more
of the above stated approaches, based on either the purpose of research, or the time
required to accomplish research, on the environment in which research is done, or on the
basis of some other similar factors. Form the point of view of time, we can think of research
either as one-time research or longitudinal research. In the former case the research is
confined to a single time-period, whereas in the latter case the research is carried on over
 4 Research Methodology

several time-periods. Research can be field-setting research or laboratory research or

simulation research, depending upon the environment in which it is to be carried out.
Research can as well be understood as clinical or diagnostic research. Such research
follow case-study methods or indepth approaches to reach the basic casual relations. Such
studies usually go deep into the causes of things or events that interest us, using very small
samples and very deep probing data gathering devices. The research may be exploratory
or it may be formalized. The objective of exploratory research is the development of
hypotheses rather than their testing, whereas formalized research studies are those with
substantial structure and with specific hypotheses to be tested. Historical research is that
which utilizes historical sources like documents, remains, etc. to study events or ideas of
the past, including the philosophy of persons and groups at any remote point of time. Research
can also be classified as conclusion-oriented and decision-oriented. While doing
conclusion-oriented research, a researcher is free to pick up a problem, redesign the enquiry
as he proceeds and is prepared to conceptualize as he wishes. Decision-oriented research
is always for the need of a decision maker and the researcher in this case is not free to
embark upon research according to his own inclination. Operations research is an example
of decision oriented research since it is a scientific method of providing executive departments
with a quantitative basis for decisions regarding operations under their control.

1.4 RESEARCH APPROACHES

The above description of the types of research brings to light the fact that there are two basic
approaches to research, viz., quantitative approach and the qualitative approach. The former
involves the generation of data in quantitative form which can be subjected to rigorous quantitative
analysis in a formal and rigid fashion. This approach can be further sub-classified into inferential,
experimental and simulation approaches to research. The purpose of inferential approach is to
form a data base to infer characteristics or relationships of population. This usually means survey
research where a sample of population is studied (questioned or observed) to determine its
characteristics, and it is then inferred that the population has the same characteristics. Experimental
approach is characterised by much greater control over the research environment and in this case
some variables are manipulated to observe their effect on other variables. Simulation approach
involves the construction of an artificial environment within which relevant information and data can
be generated. This permits an observation of the dynamic behaviour of a system (or its sub-system)
under controlled conditions. The term ‘simulation’ in the context of business and social sciences
applications refers to “the operation of a numerical model that represents the structure of a dynamic
process. Given the values of initial conditions, parameters and exogenous variables, a simulation is
run to represent the behaviour of the process over time.” Simulation approach can also be useful in
building models for understanding future conditions.
Qualitative approach to research is concerned with subjective assessment of attitudes, opinions
and behaviour. Research in such a situation is a function of researcher’s insights and impressions.
Such an approach to research generates results either in non-quantitative form or in the form which
is not subjected to rigorous quantitative and analysis. Generally, the techniques of focus group interviews,
projective techniques and depth interviews are used. All these are explained at length in chapters that
follow.
 Research Methodology: An Introduction 5

1.5 SIGNIFICANCE OF RESEARCH

CHAPTER 1
“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry, and
inquiry leads to invention” is a famous Hudson Maxim in context of which the significance of research
can well be understood. Increased amounts of research make progress possible. Research inculcates
scientific and inductive thinking and it promotes the development of logical habits of thinking
and organisation.
The role of research in several fields of applied economics, whether related to business or
to the economy as a whole, has greatly increased in modern times. The increasingly complex
nature of business and governance has focussed attention on the use of research in solving operational
problems. Research, as an aid to economic policy, has gained added importance, both for governance
and business.
Research provides the basis for nearly all government policies in our economic system.
For instance, government’s budgets rest in part on an analysis of the needs and desires of the people
and on the availability of revenues to meet those needs. The cost of needs has to be equated to
probable revenues and this is a field where research is most needed. Through research we can
devise alternative policies and can as well examine the consequences of each of these alternatives.
Decision-making may not be a part of research, but research certainly facilitates the decisions of the
policy maker. Government has to chalk out programmes for dealing with all facets of the country’s
various operations and most of these are related directly or indirectly to economic conditions. The
plight of cultivators, the problems of big and small business and industry, working conditions, trade
union activities, the problems of distribution, even the size and nature of defence services are matters
requiring research. Thus, research is considered necessary with regard to the allocation of nation’s
resources. Another area in government, where research is necessary, is collecting information on the
economic and social structure of the nation. Such information indicates what is happening in the
economy and what changes are taking place. Collecting such statistical information is by no means a
routine task, but it involves a variety of research problems. These days nearly all governments
maintain large staff of research technicians or experts to carry on this work. Thus, in the context of
government, research as a tool to economic policy has three distinct phases of operation, viz.,
(i) investigation of economic structure through continual compilation of facts; (ii) diagnosis of events
that are taking place and the analysis of the forces underlying them; and (iii) the prognosis, i.e., the
prediction of future developments.
Research has its special significance in solving various operational and planning problems
of business and industry. Operations research and market research, along with motivational research,
are considered crucial and their results assist, in more than one way, in taking business decisions.
Market research is the investigation of the structure and development of a market for the purpose of
formulating efficient policies for purchasing, production and sales. Operations research refers to the
application of mathematical, logical and analytical techniques to the solution of business problems of
cost minimisation or of profit maximisation or what can be termed as optimisation problems. Motivational
research of determining why people behave as they do is mainly concerned with market characteristics.
In other words, it is concerned with the determination of motivations underlying the consumer (market)
behaviour. All these are of great help to people in business and industry who are responsible for
taking business decisions. Research with regard to demand and market factors has great utility in
business. Given knowledge of future demand, it is generally not difficult for a firm, or for an industry
 6 Research Methodology

to adjust its supply schedule within the limits of its projected capacity. Market analysis has become
an integral tool of business policy these days. Business budgeting, which ultimately results in a
projected profit and loss account, is based mainly on sales estimates which in turn depends on
business research. Once sales forecasting is done, efficient production and investment programmes
can be set up around which are grouped as the purchasing and financing plans. Research, thus,
replaces intuitive business decisions by more logical and scientific decisions.
Research is equally important for social scientists in studying social relationships and in
seeking answers to various social problems. It provides the intellectual satisfaction of knowing a
few things just for the sake of knowledge and also has practical utility for the social scientist to know
for the sake of being able to do something better or in a more efficient manner. Research in social
sciences is concerned with (i) the development of a body of principles that helps in understanding
the whole range of human interactions, and (ii) the practical guidance in solving immediate problems
of human relations.
In addition to what has been stated above, the significance of research can also be understood
keeping in view the following points:
(a) To those students who are to write a master’s or Ph.D. thesis, research may mean a
careerism or a way to attain a high position in the social structure;
(b) To professionals in research methodology, research may mean a source of livelihood;
(c) To philosophers and thinkers, research may mean the outlet for new ideas and insights;
(d) To literary men and women, research may mean the development of new styles and creative
work; and
(e) To analysts and intellectuals, research may mean the development of new theories.
Thus, research is the fountain of knowledge for the sake of knowledge and an important source
of providing guidelines for solving different business, governmental and social problems. It is a sort of
formal training which enables one to understand the new developments in one’s field in a better way.

1.6 RESEARCH METHODS VERSUS METHODOLOGY

It seems appropriate at this juncture to explain the difference between research methods and research
methodology. Research methods may be understood as all those methods/techniques that are used
for conduction of research. Research methods or techniques, thus, refer to the methods the researchers
use in performing research operations. In other words, all those methods which are used by the
researcher during the course of studying his research problem are termed as research methods.
Since the object of research, particularly the applied research, it to arrive at a solution for a given
problem, the available data and the unknown aspects of the problem have to be related to each other
to make a solution possible. Keeping this in view, research methods can be put into the following
three groups:
1. In the first group we include those methods which are concerned with the collection of
data. These methods will be used where the data already available is not sufficient to arrive
at the required solution;
 Research Methodology: An Introduction 7

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

CHAPTER 1
relationships between the data and the unknowns;
3. The third group consists of those methods which are used to evaluate the accuracy of the
results obtained.
Research methods falling in the above stated last two groups are generally taken as the analytical
tools of research.
At times, a distinction is also made between research techniques and research methods. Research
techniques refer to the behaviour and instruments we use in performing research operations such as
making observations, recording data, techniques of processing data and the like. Research methods
refer to the behaviour and instruments used in selecting and constructing research technique. For
instance, the difference between methods and techniques of data collection can better be understood
from the details given in the following chart:
Type Methods Techniques
1. Library (i) Analysis of historical Recording of notes, Content analysis, Tape and Film listening and
Research records analysis.
(ii) Analysis of documents Statistical compilations and manipulations, reference and abstract
guides, contents analysis.
2. Field (i) Non-participant direct Observational behavioural scales, use of score cards, etc.
Research observation
(ii) Participant observation Interactional recording, possible use of tape recorders, photographic
techniques.
(iii) Mass observation Recording mass behaviour, interview using independent observers in
public places.
(iv) Mail questionnaire Identification of social and economic background of respondents.
(v) Opinionnaire Use of attitude scales, projective techniques, use of sociometric scales.
(vi) Personal interview Interviewer uses a detailed schedule with open and closed questions.
(vii) Focussed interview Interviewer focuses attention upon a given experience and its effects.
(viii) Group interview Small groups of respondents are interviewed simultaneously.
(ix) Telephone survey Used as a survey technique for information and for discerning
opinion; may also be used as a follow up of questionnaire.
(x) Case study and life history Cross-sectional collection of data for intensive analysis, longitudinal
collection of data of intensive character.
3. Laboratory Small group study of random Use of audio-visual recording devices, use of observers, etc.
Research behaviour, play and role analysis

From what has been stated above, we can say that methods are more general. It is the method
that generate techniques. However, in practice, the two terms are taken as interchangeable and
when we talk of research methods we do, by implication, include research techniques within their
compass.
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by a researcher in studying his research problem along with the logic
behind them. It is necessary for the researcher to know not only the research methods/techniques
but also the methodology. Researchers not only need to know how to develop certain indices or tests,
how to calculate the mean, the mode, the median or the standard deviation or chi-square, how to
apply particular research techniques, but they also need to know which of these methods or techniques,
are relevant and which are not, and what would they mean and indicate. Researchers also need to
 8 Research Methodology

understand the assumptions underlying various techniques and they need to know the criteria by
which they can decide that certain techniques and procedures will be applicable to certain problems
and others will not. All this means that it is necessary for the researcher to design a methodology for
his problem as the same may differ from problem to problem. For example, an architect, who designs
a building, has to consciously evaluate the basis of his decisions, i.e., he has to evaluate why and on
what basis he selects particular size, number and location of doors, windows and ventilators, uses
particular materials and not others and the like. Similarly, in research the scientist has to expose the
research decisions to evaluation before they are implemented. He has to specify very clearly and
precisely what decisions he selects and why he selects them so that they can be evaluated by others also.
From what has been stated above, we can say that research methodology has many dimensions
and research methods do constitute a part of the research methodology. The scope of research
methodology is wider than that of research methods. Thus, when we talk of research methodology
we not only talk of the research methods but also consider the logic behind the methods we use
in the context of our research study and explain why we are using a particular method or
technique and why we are not using others so that research results are capable of being
evaluated either by the researcher himself or by others. Why a research study has been undertaken,
how the research problem has been defined, in what way and why the hypothesis has been formulated,
what data have been collected and what particular method has been adopted, why particular technique
of analysing data has been used and a host of similar other questions are usually answered when we
talk about research methodology concerning a research problem or study.

1.7 RESEARCH AND SCIENTIFIC METHOD

For a clear perception of the term research, one should know the meaning of scientific method. The
two terms, research and scientific method, are closely related. In research, we study the nature,
reasons, and the consequences of a set of circumstances which are controlled experimentally or
observed as they appear. Researcher is usually interested in particular results, the repetitions of
those results, and generalizations. On the other hand, the philosophy common to all research methods
and techniques, although they may vary considerably from one science to another, is usually given
the name of scientific method. In this context, Karl Pearson writes, “The scientific method is one and
same in the branches (of science) and that method is the method of all logically trained minds the
unity of all sciences consists alone in its methods, not its material; the man who classifies facts of any
kind whatever, who sees their mutual relation and describes their sequences, is applying the scientific
method and is a man of science.” Scientific method is the pursuit of truth as determined by logical
considerations. The ideal of science is to achieve a systematic interrelation of facts. Scientific method
attempts to achieve this ideal by experimentation, observation, logical arguments from accepted
postulates and a combination of these three in varying proportions. In scientific method, logic aids in
formulating propositions explicitly and accurately so that their possible alternatives become clear.
Further, logic develops the consequences of such alternatives, and when these are compared with
observable phenomena, it becomes possible for the researcher or the scientist to state which alternative
is the most in harmony with the observed facts. All this is done through experimentation and survey
investigations which constitute the integral parts of scientific method.

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 Research Methodology: An Introduction 9

Experimentation is done to test hypotheses and to discover new relationships, if any, among

CHAPTER 1
variables. However, sometimes the conclusions drawn on the basis of experimental data may be
misleading for either faulty assumptions, poorly designed experiments, badly executed experiments
or faulty interpretations. As such the researcher must pay all possible attention while developing the
experimental design and drawing inferences. The purpose of survey investigations may also be to
provide scientifically gathered information to work as a basis for the researchers for their conclusions.
The scientific method is, thus, based on certain basic postulates which can be stated as under:
1. It relies on empirical evidence;
2. It utilizes relevant concepts;
3. It is committed to only objective considerations;
4. It aims at nothing but making only adequate and correct statements about population objects;
5. It results into probabilistic predictions;
6. Its methodology is made known to all concerned for critical scrutiny and are for use in
testing the conclusions through replication;
7. It aims at formulating most general axioms or what can be termed as scientific theories.
Thus, the scientific method encourages a rigorous, method wherein the researcher is guided by
the rules of logical reasoning, a method wherein the investigation proceeds in an orderly manner and
a method that implies internal consistency.

1.8 RESEARCH PROCESS

Before embarking on the details of research methodology and techniques, it seems appropriate to
present a brief overview of the research process. Research process consists of series of actions or
steps necessary to effectively carry out research. The chart shown in Figure 1.1 illustrates a research
process.
The chart indicates that the research process consists of a number of closely related activities,
as shown through I to VII. But such activities overlap continuously rather than following a strictly
prescribed sequence. At times, the first step determines the nature of the last step to be undertaken.
If subsequent procedures have not been taken into account in the early stages, serious difficulties
may arise which may even prevent the completion of the study. One should remember that neither
various steps involved in a research process are mutually exclusive; nor they are separate and
distinct. They do not necessarily follow each other in any specific order and the researcher has to be
constantly anticipating at each step in the research process the requirements of the subsequent
steps. However, the following order concerning various steps provides a useful procedural guideline
regarding the research process: (i) formulating the research problem; (ii) extensive literature survey;
(iii) developing the hypothesis; (iv) preparing the research design; (v) determining sample design;
(vi) collecting the data; (vii) execution of the project; (viii) analysis of data; (ix) hypothesis testing;
(x) generalisations and interpretation; and (xi) preparation of the report or presentation of the results,
i.e., formal write-up of conclusions reached.
A brief description of the above stated steps will be helpful.

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 10

RESEARCH PROCESS IN FLOW CHART

FF

FF

Review the literature

Review concepts
Define and theories Design research Analyse data
research Formulate (including Collect data Interpret
(Test hypothesis
problem hypothesis sample design) (Execution) F and report
Review previous F if any)
research finding V VII
I III IV VI
II

Where F = feedback (Helps in controlling the sub-system

to which it is transmitted)
FF = feed forward (Serves the vital function of
providing criteria for evaluation)

Fig. 1.1

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