Research Methods Notes

Unit – 1
Introduction to Academic and Applied researches
1. What is business research (pg 03) - A process of determining, acquiring, analysing,
synthesizing, and disseminating relevant business data, information, and insights to
decision makers in ways that mobilize the organization to take appropriate business
actions that, in turn, maximize business performance
2. Characteristics – Purpose, Detailed process, planned design, maintaining standards,
Limitations defining, Analysis, Gathering insights and presentation, Conclusion, End
credentials.
3. Types of external research suppliers
a. Business research firms - A business research firm is an organization that
provides consulting services and data analysis to help businesses make decisions
b. Communication agencies - The term "Communication Agency"
includes advertising agencies, media agencies, communication consulting
agencies, agencies specializing in a communication discipline.
c. Consultants - Consulting firms are businesses that help organizations solve
problems, seize opportunities, and transform their businesses.
d. Trade associations - Trade organizations are groups that regulate and facilitate
international trade.
4. Proprietary research - Proprietary research is research that is kept confidential and is
only shared with a specific group or organization. It can be technical, professional, or a
general survey.
a. To gain special information that competitors don't have
b. To differentiate a business from its competitors
c. To attract clients by providing useful information
d. To benefit a specific community
Types of Research
5. Types of research (pg no 11) (A-C-I-O)
a. Application
i. Fundamental - research conducted primarily to expand the understanding
of underlying business principles and theories, focusing on gaining new
knowledge about how businesses operate without a direct, immediate
goal of solving a specific business problem.
ii. Applied - Applied research is a type of research that attempts to find
practical solutions to existing problems
b. Concept
i. Conceptual - Conceptual research in business" refers to a type of
research that focuses on analyzing and interpreting abstract concepts and
ideas related to business, without conducting practical experiments.
ii. Empirical - Empirical research is a type of applied research that you can
perform to gather observable, measurable data. When conducting
empirical research, a researcher may make an observation and identify a
 problem. Then they develop a hypothesis, which is a prediction of the
results of the study.
c. Information sought
i. Quantitative - Quantitative research is all about numbers. It uses
mathematical analysis and data to shed light on important statistics about
your business and market.
ii. Qualitative - Qualitative research is defined as a market research method
that focuses on obtaining data through open-ended and conversational
communication
d. Objective
i. Descriptive - a research method that aims to detail and characterize a
specific phenomenon, behavior, or population within a business context,
without attempting to manipulate variables
ii. Correlation - Correlation research in business" refers to a type of non-
experimental research method where businesses analyze the relationship
between two or more variables without manipulating them
iii. Explanatory - A research method used to understand the "why" behind a
particular phenomenon or business trend
iv. Exploratory - Exploratory business research is a methodology used to
investigate undefined or poorly understood problems
Types of approaching the problem
Research process

Languages in research (Our VP – CCC’s real name is TOM)

• Concept: A general idea or understanding of something. In business research, it refers to the

main idea or theme you're studying. For example, "customer satisfaction" is a concept.

• Construct: A concept that is specifically defined for research purposes. It’s measurable and
can be used to develop theories or hypotheses. For example, "brand loyalty" can be a construct
if it’s measured through specific questions or behaviors.
• Conceptual Scheme: A framework that connects different concepts to show relationships
between them. It helps organize thoughts and understand how various ideas relate to each
other.

• Variable: Something that can change or vary in the research. Variables are things you
measure, control, or manipulate. For example, "sales revenue" could be a variable.

• Proposition/Hypothesis: A statement that predicts a relationship between variables. A

hypothesis is a specific, testable prediction. For example, "Increasing employee training will
lead to higher customer satisfaction."

• Theory: A set of ideas that explain how and why certain things happen. In business research,
a theory provides a way to understand patterns and relationships in the business world. For
example, "Maslow’s Hierarchy of Needs" is a theory about motivation.

• Operational Definition: A clear, detailed description of how a concept or construct will be

measured or defined in the research. For example, defining "customer satisfaction" as a score
on a survey question.

• Model: A simplified representation of a real-world situation or process. It’s often used to

show how different variables interact or to predict outcomes. For example, a "supply and
demand model" shows how price affects the quantity of goods sold.
Variable

A variable in business research is a

characteristic, number, or quantity that can
be measured or counted

Dichotomous Variable:
• Definition: A dichotomous variable (also called
a binary variable) takes only two distinct values
or categories.
Discrete Variable:
• Definition: A discrete variable is one that takes
on a finite or countable number of values. These
variables represent distinct, separate quantities
and cannot take fractional values.
Continuous Variable:
• Definition: A continuous variable can take any
value within a given range and is not limited to
whole numbers. These variables are measured
rather than counted and can have fractional or
decimal values.

Dependent and Independent Variable

Types of Variables
Intervening Variable:

• Definition: An intervening variable (also called a mediating variable) explains the

relationship between the independent and dependent variables. It is the variable that
mediates the effect of the independent variable on the dependent variable.

Employee Training (Independent Variable) → Job Performance (Dependent Variable):

• Intervening Variable: Employee skill development. Training improves skills, which in

turn enhances performance.

Extraneous Variable:

• Definition: An extraneous variable is any variable that is not the independent variable
but could influence the outcome (dependent variable) of the study if not controlled.
These variables can introduce bias or errors in the research if they are not accounted for
properly.
• In studying the effect of leadership style (Independent Variable) on employee
productivity (Dependent Variable), potential extraneous variables could include:
o Employee morale, work environment, or economic conditions. These could
affect productivity independently of leadership style.

Moderating Variable:

• Definition: A moderating variable affects the strength or direction of the relationship

between the independent and dependent variables. It influences how the independent
variable impacts the dependent variable, essentially acting as a condition or context for
that relationship.

Workload (Independent Variable) → Job Satisfaction (Dependent Variable):

• Moderating Variable: Organizational support. High levels of support may buffer the
negative effect of workload on satisfaction.

Proposition and Hypothesis

Proposition:

• Definition: A proposition is a general statement or assertion that expresses a potential

relationship or pattern between concepts or variables. It is more theoretical in nature
and is usually derived from the broader theory or existing knowledge.

Examples in business research:

• "Increased customer satisfaction leads to higher customer retention."

• "Organizations with a strong culture of innovation are more successful in the long
term."
Hypothesis:

• Definition: A hypothesis is a specific, testable prediction about the relationship

between two or more variables. It is often derived from a proposition and is formulated
in a way that it can be empirically tested through data collection and analysis.

• Null Hypothesis (H₀): States that there is no relationship between the variables, or no effect.
It serves as the default position to be tested and possibly rejected.

• Example: "There is no relationship between customer satisfaction and customer

retention."

• Alternative Hypothesis (H₁): States that there is a relationship between the variables, or
that the independent variable has an effect on the dependent variable.

• Example: "Higher customer satisfaction leads to higher customer retention."

Relational Hypothesis
A relational hypothesis in business research proposes that there is a relationship or
association between two or more variables. Unlike a causal hypothesis, which suggests that
one variable cause another, a relational hypothesis only states that the variables are related in
some way, but it does not necessarily imply a cause-and-effect relationship.

1. Correlational (Relational) Hypothesis:

• Definition: A correlational or relational hypothesis predicts that two or more variables

are associated with each other, but it does not suggest that one variable causes the
other.
• Nature: Focuses on the relationship between variables without claiming that changes
in one lead to changes in the other.
• Types of relationships:
o Positive correlation: Both variables increase or decrease together.
o Negative correlation: As one variable increases, the other decreases.
• Example: "There is a positive relationship between customer satisfaction and customer
loyalty."
o This means as satisfaction increases, loyalty tends to increase, but it doesn’t
claim that satisfaction causes loyalty.

2. Causal Hypothesis:

• Definition: A causal hypothesis suggests that one variable (the independent variable)
directly causes a change in another variable (the dependent variable).
• Nature: It assumes a cause-and-effect relationship where changes in one variable lead
to changes in the other.
• Testing: Requires experimental or longitudinal studies to establish causality.
• Example: "Increased advertising spending causes higher sales."
o This implies that raising the amount spent on advertising will directly lead to an
increase in sales.
Reasoning type

1. Inductive Reasoning

• Definition: Inductive reasoning is a bottom-up approach that starts with specific

observations or data and then develops broader generalizations or theories. It moves
from the particular to the general.
• Process:
1. Begin with specific observations or data collection.
2. Identify patterns or regularities.
3. Formulate hypotheses or potential explanations.
4. Develop a theory based on the observed patterns.
• Example in Business Research: Suppose a company conducts interviews with
customers and observes that many of them express dissatisfaction with the company's
customer service. Based on these specific observations, the company might induce that
poor customer service is a widespread issue affecting overall customer satisfaction.
This observation could lead to the development of a theory on the impact of customer
service on retention and loyalty.
• Advantages:
o Can lead to the discovery of new theories.
o Useful when little is known about the research problem.
o Flexibility allows for open-ended exploration.
• Limitations:
o The conclusions are probabilistic, meaning the theory might not hold in all
cases.
o Risk of bias in the selection of observations.

2. Deductive Reasoning

• Definition: Deductive reasoning is a top-down approach that begins with a general

theory or hypothesis and then tests it through specific observations or data collection. It
moves from the general to the particular.
• Process:
1. Start with an existing theory or general premise.
 2. Develop specific hypotheses or predictions based on the theory.
3. Collect data to test the hypotheses.
4. Analyze the data to confirm or refute the original theory.
• Example in Business Research: If a business has a theory that "employee satisfaction
leads to higher productivity," the researcher would begin by forming a hypothesis like
"employees who report high job satisfaction will have higher output than those with
low satisfaction." Then, the company would collect specific data (e.g., employee
surveys and productivity metrics) to test this hypothesis.
• Advantages:
o Clear structure for testing established theories.
o Results can be used to confirm or refine existing knowledge.
o Higher certainty if the hypothesis is supported by data.
• Limitations:
o Less flexible as it tests existing theories rather than exploring new ideas.
o Might overlook important factors if the theory is too rigid or narrowly focused.

Comparison of Inductive and Deductive Reasoning in Business Research:

Aspect Inductive Reasoning Deductive Reasoning

Starting Point Specific observations or data General theory or premise
Direction of Bottom-up (from specific to
Top-down (from general to specific)
Reasoning general)
Hypothesis testing or theory
Outcome Theory or generalization
validation
Flexibility More open-ended, exploratory Structured and focused
Purpose Generate new theories or ideas Test existing theories or hypotheses
More certain if hypotheses are
Certainty Probabilistic conclusions
supported

Application in Business Research:

1. Inductive Reasoning is often used in exploratory research, where the goal is to

generate new insights or theories based on data from the field. For example, when
studying customer behavior, inductive reasoning might be used to identify emerging
trends or patterns without preconceived theories.
2. Deductive Reasoning is more common in confirmatory research, where the goal is to
test established theories or predictions. For instance, if a company wants to test whether
a new marketing strategy will increase sales, it would use deductive reasoning to collect
data and evaluate the effectiveness of the strategy against the expected outcomes.
 Unit 2
Problem identification

In business research, problem identification is a crucial first step in conducting effective

research and finding solutions to business challenges. It involves recognizing, defining, and
understanding the issues or opportunities that need to be addressed. Without proper problem
identification, research efforts may be misguided or wasteful, leading to ineffective or
irrelevant solutions.

Here’s a detailed exploration of problem identification in business research:

Importance of Problem Identification

In business, decision-makers are often faced with a variety of challenges, ranging from
declining profits to changing customer preferences or operational inefficiencies. Problem
identification helps pinpoint which specific issue or opportunity the business needs to address.
It is important for several reasons:

• Focus and Direction: It provides clarity and focus for the research process, helping
businesses concentrate their resources on the most pressing issues.
• Effective Solutions: Proper problem identification ensures that the right problem is
being addressed, leading to more effective and relevant solutions.
• Avoiding Wasted Resources: Misidentifying the problem can lead to wasted time,
effort, and money on researching irrelevant or minor issues.

Symptoms

Symptoms in business research refer to the observable signs or indicators that suggest the
presence of a deeper problem within a business. They are often the first clues that
something is wrong, but they do not provide direct insight into the root cause of the issue.
Symptoms are usually the manifestation of underlying problems, and in business research,
identifying and interpreting these symptoms is critical for diagnosing and solving the actual
problem.
Here’s a detailed explanation of symptoms in the context of business research:
1. Characteristics of Symptoms
Symptoms have certain key characteristics that distinguish them from the actual problem:
• Observable and Measurable: Symptoms are visible or detectable phenomena within
the business. They might manifest in the form of declining sales, customer complaints,
high employee turnover, or inefficiencies in operations.
• Indications of a Problem: Symptoms suggest that something is wrong or that an
opportunity is being missed, but they don’t directly explain why the problem exists.
• Not the Problem Itself: It’s essential to understand that symptoms are effects, not
causes. Treating symptoms without addressing the underlying cause often leads to
short-term fixes rather than long-term solutions
What is the Root Cause of a Problem?
The root cause is the primary factor or combination of factors that directly lead to the
manifestation of a business issue. It is the core of the problem, and once identified and
addressed, it can prevent the problem from recurring. In contrast to symptoms (which are the
visible indicators of a problem), the root cause is often less obvious and requires deeper
analysis to uncover.
For example:
• Symptom: A retail store notices that sales have been declining.
• Root Cause: The root cause might be poor customer service, an outdated product line,
or ineffective marketing strategies.
Addressing only the symptom (e.g., by offering discounts to increase sales) might lead to a
temporary improvement, but the underlying root cause (e.g., poor customer service) needs to be
fixed to achieve lasting results.
Importance of Identifying the Root Cause in Business Research
In business research, identifying the root cause of a problem is vital because:
• Long-Term Solutions: Solving the root cause leads to more effective, long-term
solutions, rather than temporary fixes.
• Prevents Recurrence: Addressing the root cause prevents the problem from recurring
and helps maintain business efficiency.
• Optimal Resource Allocation: It ensures that time, money, and other resources are
directed toward resolving the actual issue, not just mitigating the symptoms.
• Strategic Decision-Making: Business leaders can make informed, data-driven
decisions that improve overall performance when they understand the root cause of
their challenges.

Management Dilemma
A management dilemma in the business context refers to a situation or challenge faced by
managers or decision-makers that requires a choice to be made between various courses of
action. It often arises when a business encounters a problem, inefficiency, or an opportunity,
and the management must determine the best way to address the issue or capitalize on the
opportunity. The dilemma typically involves uncertainty, trade-offs, risks, and potential
outcomes that need careful consideration.
Key Aspects of a Management Dilemma
1. Uncertainty: Managers often face dilemmas because they do not have perfect
information about the outcomes of their choices. They must make decisions with
limited data or in unpredictable environments, which adds complexity to the decision-
making process.
 2. Trade-offs: A management dilemma typically involves a situation where choosing one
option results in the loss of another, requiring managers to prioritize certain goals over
others. For example, a decision might involve balancing short-term profits against long-
term growth or choosing between cutting costs and maintaining employee satisfaction.
3. Multiple Alternatives: Management dilemmas generally involve more than one
possible solution, and each option may have different implications for the business. The
challenge lies in evaluating which alternative will yield the most favorable outcome.
4. Potential Consequences: Decisions in a management dilemma have consequences that
affect various aspects of the business, such as financial performance, employee morale,
customer satisfaction, or competitive positioning. The dilemma forces managers to
weigh the potential positive and negative impacts of each option.

Research question hierarchy

1. Management Dilemma
The management dilemma is the starting point in the hierarchy. It refers to the broader issue
or challenge that management is facing. This could be related to declining sales, inefficiencies,
customer dissatisfaction, or competitive threats. The dilemma is usually vague and requires
further investigation to identify the root causes.
• Example: "Why are sales declining in our company?"
2. Management Question
The management question is a more refined version of the management dilemma. It involves
identifying what decision or action management must take to address the problem. This
question is still broad but focuses on the decision-making aspect.
• Example: "What actions can we take to reverse the decline in sales?"
3. Research Questions
The research questions are developed based on the management question and are more
specific. They focus on what information is needed to make a decision. Research questions
guide the study by identifying the data that needs to be collected, analyzed, and interpreted.
Research questions typically address the following:
• What is happening?
• Why is it happening?
• What factors are influencing the issue?
These questions are often broken down into two types:
• Descriptive Research Questions: Focus on understanding the current situation or the
characteristics of the problem.
o Example: "What is the trend in customer purchasing behavior over the last 12
months?"
 • Causal or Explanatory Research Questions: Aim to identify causes or reasons behind
the problem.
o Example: "What factors are causing the decline in sales in Region X?"
4. Investigative Questions
The investigative questions are even more specific than the research questions. They break
down the research questions into smaller, detailed inquiries that help gather the necessary data.
These questions direct the researcher toward the exact information needed and ensure all
aspects of the research question are covered.
• Example:
o "Which products have experienced the largest sales decline?"
o "How do customer demographics in Region X compare to those in other
regions?"
Investigative questions help researchers design surveys, interviews, or data collection methods
to gather relevant information. They are typically associated with different aspects of the
problem, such as customer behavior, product performance, or competitor activity.
5. Measurement Questions
The measurement questions are the final level in the hierarchy and deal with how the data
will be collected. These questions are highly specific and relate to the actual metrics, survey
questions, or observations used to measure the variables identified in the investigative
questions.
• Example:
o "On a scale of 1 to 5, how satisfied are customers with our product quality?"
o "What was the exact sales figure for Product A in the last quarter?"
Measurement questions guide the data collection process and ensure that researchers gather
precise, quantifiable information that can be analyzed statistically or qualitatively.

Data collection method

Types of Data Collection Methods
1. Surveys/Questionnaires
o What it is: A survey or questionnaire involves asking a group of people
(respondents) a set of structured questions. Surveys can be conducted online, in
person, by phone, or by mail.
o When to use: When you need to gather opinions, preferences, or feedback from
a large group of people.
o Example: A company might survey customers to ask about their satisfaction
with a product or service.
2. Interviews
o What it is: Interviews involve asking people questions directly in a one-on-one
setting. These can be structured (with pre-determined questions) or unstructured
(more open-ended conversations).
o When to use: When you need in-depth, detailed information or when the topic
is complex.
o Example: A manager might interview employees to understand their views on
workplace policies.
3. Focus Groups
o What it is: A focus group is a small group discussion led by a moderator, where
participants talk about a specific topic or product. This method is used to gather
qualitative data (opinions, feelings, attitudes).
o When to use: When you want to explore ideas or opinions from a group of
people in more detail.
o Example: A business might use a focus group to understand how customers feel
about a new advertising campaign.
4. Observation
o What it is: Observation involves watching how people behave in real-life
situations without directly interacting with them. It can be done in person or
through cameras.
o When to use: When you want to study actual behavior, rather than relying on
what people say they do.
o Example: A retailer might observe how customers navigate a store to improve
layout design.
5. Experiments
o What it is: Experiments involve creating controlled situations to test how
changes in one factor (like price or packaging) affect outcomes (like sales or
customer behavior).
o When to use: When you want to test cause-and-effect relationships.
o Example: A business might run an A/B test by showing two different website
designs to see which one results in more purchases.
6. Secondary Data Analysis
o What it is: This method involves using existing data that has already been
collected by other sources (such as government reports, industry studies, or
company records).
o When to use: When you need data quickly and don’t need to collect it yourself.
o Example: A business might analyze industry reports to understand market
trends without conducting its own research.
Exploratory research tools
1. Literature Review
• What it is: Reviewing existing research, articles, books, and reports on a particular
topic to gather insights and understand previous findings.
• How it helps: It helps identify gaps in existing knowledge, discover patterns, and
generate new ideas for further research.
• Example: A business researcher might review market trends and previous studies to
understand consumer behavior before launching a new product.
2. Surveys/Questionnaires (Open-Ended)
• What it is: Using surveys with open-ended questions to allow respondents to provide
detailed, free-form answers.
• How it helps: It provides a wide range of opinions, ideas, and information from
respondents without limiting their responses.
• Example: A company might ask customers what features they would like to see in a
new product, allowing for creative feedback.
3. Interviews
• What it is: Conducting in-depth, one-on-one conversations with individuals (like
customers, experts, or stakeholders) to explore their opinions, experiences, and insights.
• How it helps: Interviews allow researchers to dig deep into a subject, ask follow-up
questions, and understand nuances.
• Example: A company might interview industry experts to explore new opportunities or
trends in the market.
4. Focus Groups
• What it is: Group discussions led by a moderator, where participants talk about a
specific topic or product to explore their attitudes and opinions.
• How it helps: It helps businesses gather diverse viewpoints and uncover new insights
from group dynamics.
• Example: A business might conduct a focus group to explore how customers feel about
a new branding concept or marketing campaign.
5. Observations
• What it is: Watching how people behave in real-life situations without influencing
them. This could be done in natural environments like stores or workplaces.
• How it helps: It allows researchers to explore natural behaviors, patterns, and problems
that people might not express directly.
• Example: A retailer might observe how customers move through a store to explore
shopping habits and improve store layout.
6. Case Studies
• What it is: Analyzing specific cases or situations in detail to explore complex issues
and generate insights.
• How it helps: Case studies provide real-world examples that can help businesses
understand how certain strategies or solutions worked in similar situations.
• Example: A company might study how a competitor successfully entered a new market
to learn lessons and strategies.
7. Pilot Studies
• What it is: A small-scale, preliminary study conducted before a full-scale research
project.
• How it helps: It helps test the feasibility of research methods, identify potential
problems, and refine research questions.
• Example: A company might run a small pilot study to test customer interest in a new
product before a major product launch.
8. Expert Opinion
• What it is: Consulting experts in a field to gain insights and explore potential solutions
to a business problem.
• How it helps: Experts can provide deep, specialized knowledge and help clarify
complex issues.
• Example: A startup might consult marketing experts to explore effective advertising
strategies for a new app.

In Depth interview, Focus group and Projective techniques.

1. In-Depth Interview (IDI)
An in-depth interview is a one-on-one, detailed conversation between a researcher and a
respondent. The goal is to deeply explore the respondent's opinions, experiences, and
motivations. Unlike structured surveys, in-depth interviews allow for flexibility, with the
interviewer asking open-ended questions and probing for more insights based on the
respondent's answers.
• When it's used: When a business wants to gain a deep understanding of individual
experiences, behaviors, or perceptions, especially when the topic is complex or
sensitive.
• Example: A company might conduct in-depth interviews with loyal customers to
understand their buying motivations and uncover how they feel about the brand’s new
product line.
Benefits:
• Provides rich, detailed insights.
 • Allows for follow-up questions and exploration of deeper thoughts.
• Great for understanding personal opinions and behaviors.
2. Focus Group
A focus group is a moderated discussion with a small group of people (usually 6-10
participants) who share their opinions and attitudes about a specific topic, product, or idea. The
group interaction often leads to new insights, as participants respond to each other’s comments,
and the moderator encourages discussion.
• When it's used: When a business wants to explore diverse opinions or generate ideas,
especially in the early stages of product development or marketing campaigns.
• Example: A business might organize a focus group with potential customers to get
feedback on a new product design, packaging, or advertisement.
Benefits:
• Provides a variety of viewpoints in a single session.
• Group dynamics can reveal shared values and ideas.
• Encourages discussion that might bring out new insights.
3. Projective Techniques
Projective techniques are methods used in qualitative research to uncover deeper emotions,
attitudes, and motivations that people might find difficult to express directly. These techniques
often use indirect prompts, such as asking respondents to interpret pictures, complete
sentences, or tell stories. The idea is that people "project" their feelings onto the task, revealing
their subconscious thoughts.
• When it's used: When businesses want to explore underlying emotions or hidden
attitudes that people may not express directly, especially in consumer behavior research.
• Example: A company might use a projective technique like word association or picture
interpretation to understand how customers emotionally connect with their brand or
products.

Interview schedule & questionnaire - Measurement Scales —

Nominal, Ordinal, Interval and Ratio – Characteristics of Good
Measurement, Rating Scales – Ranking Scales – Designing
Questionnaire
1. Interview Schedule & Questionnaire
• Interview Schedule: An interview schedule is a structured list of questions that an
interviewer uses during a face-to-face interview. It ensures that all interviewees are
asked the same questions in the same order, helping researchers collect consistent
information.
 o Business Example: A company conducting market research might use an
interview schedule to ask customers about their experiences with a product.
• Questionnaire: A questionnaire is a set of written questions designed to gather
information from a group of people. It can be distributed online, in print, or in person.
o Business Example: A company might send out a questionnaire to its customers
asking them to rate their satisfaction with the service.
2. Measurement Scales: In business research, measurement scales help categorize and
quantify responses.
• Nominal Scale: This is the simplest scale that categorizes data without any order or
value. The categories are mutually exclusive and can’t be ranked.
o Business Example: Asking customers which product category they prefer: "A)
Electronics, B) Furniture, C) Clothing". The answers are just labels, with no
inherent order.
• Ordinal Scale: This scale categorizes data and also ranks the options. However, the
differences between the ranks are not necessarily equal.
o Business Example: Asking customers to rank their satisfaction with a product:
"Very satisfied, Satisfied, Neutral, Unsatisfied, Very Unsatisfied". Here, the
order matters (e.g., "Very Satisfied" is better than "Neutral"), but we can’t
assume the difference between "Very Satisfied" and "Neutral" is the same as
between "Neutral" and "Unsatisfied."
• Interval Scale: This scale not only ranks data but also ensures that the intervals
between values are equal. However, it doesn’t have a true zero point.
o Business Example: Rating customer satisfaction on a scale of 1 to 10. The
difference between 1 and 2 is the same as between 8 and 9, but the scale doesn’t
have an absolute zero (i.e., it doesn't mean "no satisfaction").
• Ratio Scale: The ratio scale is the most advanced scale, with all the properties of the
interval scale but with a true zero point. It allows for the comparison of absolute
magnitudes.
o Business Example: Measuring sales figures. If a company made $0 in sales,
that represents an absolute zero, and the difference between $10,000 and
$20,000 is meaningful.
3. Characteristics of Good Measurement
A good measurement in business research ensures that the data collected is valid, reliable, and
consistent. These are the key characteristics:
• Validity: Ensures that the measurement tool actually measures what it is supposed to
measure.
o Business Example: A satisfaction survey is valid if it actually measures
customer satisfaction, not something else like customer loyalty.
 • Reliability: Ensures that the measurement produces consistent results if repeated under
similar conditions.
o Business Example: If you survey the same group of customers on the same
topic multiple times, the results should be similar each time (if nothing
changes).
• Sensitivity: Measures the ability to detect differences in data. A good scale should be
sensitive enough to detect subtle differences in responses.
o Business Example: A company might use a satisfaction scale that can capture
small differences in customer experiences rather than just broad categories like
“satisfied” or “unsatisfied.”
4. Rating Scales
Rating scales are used to measure attitudes, opinions, or behaviors on a continuum.
Respondents rate something on a specific scale, often from low to high.
• Business Example: Asking customers to rate their experience with a product on a scale
of 1 to 5, where 1 = Poor, 5 = Excellent.
Common types of rating scales:
• Likert Scale: Measures the level of agreement or disagreement with statements.
o Example: "I am satisfied with the product." (Strongly Disagree, Disagree,
Neutral, Agree, Strongly Agree).
• Semantic Differential Scale: Measures attitudes between two opposite adjectives (e.g.,
"Good" vs. "Bad").
o Example: "How would you rate the product?" (Good — — — — — Bad).
5. Ranking Scales
Ranking scales ask respondents to arrange items in order based on preference or importance.
• Business Example: Asking customers to rank the following product features in terms
of importance: Price, Quality, Design, Brand Reputation. The respondent ranks them
from most important to least important.
6. Designing a Questionnaire
Designing a good questionnaire involves several steps to ensure you get the information you
need in an efficient and clear way:
1. Define the Objectives: Understand what you want to learn from the survey.
o Example: You want to understand customer satisfaction with a new product.
2. Question Types: Choose the right question types (e.g., multiple choice, open-ended,
rating scales, etc.).
o Example: You might use a Likert scale to understand customer satisfaction.
3. Question Clarity: Make sure questions are clear, concise, and easy to understand.
 o Example: Avoid ambiguous language like "What do you think about our
product?" and use "How satisfied are you with the quality of our product?"
4. Order of Questions: Arrange questions logically so they flow well.
o Example: Start with easier, general questions (e.g., "How often do you use our
product?") and move to more specific ones (e.g., "What features of the product
do you find most useful?").
5. Pilot Testing: Test the questionnaire on a small group before the full rollout.
o Example: Try the survey with a few employees or a small customer group to
catch issues with wording or flow.