Business Research Methods

Steps in Research Design

Following are the steps in research design:

1. The Problem The first step involves the proper selection and then carefully defining the
problem. By this researcher will be enabled to know about what he has to search, but it should
be kept in mind that the problems selected should not be unmanageable in nature and also
should not be based on the desires.

2. Objective of the study The objective should be very clear in the mind of the researcher as
this will lead to the clarity of the design and proper response from the respondents.

3. Nature of the study The research design should be very much in relation with the nature of
the study, which is to be carried out.

4. Data sources The various sources of the data or the information should be very clearly
stated by the researcher.

5. Techniques of data collection For the collection of the required information, it sometimes
becomes very necessary to use some especial techniques.

6. Social cultural context Research design based on the social cultural concept is prepared in
order to avoid the various study variations.

7. Geographical limit This step becomes a necessity at this point of time as with the help of
this step, research linked to the hypothesis applies only to certain number of social groups.

8.Basis of selection Selecting a proper sample acts as a very important and critical step and
this is done with the help of some mechanics like drawing a random stratified, deliberate, double
cluster or quota sample etc.

DATA COLLECTION
Data collection is the process of gathering and measuring information on variables of interest, in
an established systematic fashion that enables one to answer stated research questions, test
hypotheses, and evaluate outcomes.
Types of data
Primary Data
Primary data means original data that has been collected specially for the purpose in mind. It
means someone collected the data from the original source first hand. Data collected this way is
called primary data.
Secondary Data
Secondary data refers to data that was collected by someone other than the user. Common
sources of secondary data for social science include censuses, information collected by

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government departments, organisational records and data that was originally collected for other
research purposes.
Collection of Primary Data
Statistical data as we have seen can be either primary or secondary. Primary data are those
which are collected for the first time and so are in crude form. But secondary data are those
which have already been collected.
Primary data are always collected from the source. It is collected either by the investigator
himself or through his agents. There are different methods of collecting primary data. Each
method has its relative merits and demerits. The investigator has to choose a particular method
to collect the information. The choice to a large extent depends on the preliminaries to data
collection some of the commonly used methods are discussed below.

I. Observation Method
Observation means viewing or seeing. We go on observing something or other while we are
awake. Most of such observations are just casual and have no specific purpose. But observation
in a method of data collection is different from such casual viewing.
The most common method used for getting information about the various things around us, is to
observe those things and also the various processes related to those things. Hence, it can be said
that observation acts as a fundamental and the basic method of getting information about
anything. But it must be kept in mind that observation is not just seeing things but it is carefully
watching the things and trying to understand them in depth, in order to get some information
about them.
Observation may be defined as a systematic viewing of a specific phenomenon in its proper
setting for the specific purpose of gathering data for a particular study.

Observations sometimes act scientifically, when used by the researchers in various research
works but it should be noted that all observations are not scientific in nature.

phenomenon by which they occur in the nature with regard to the cause and effect of mutual

Science begins with observation and at the end also uses observation for the final validation so it
can be said that Observation acts as very elegant method in case of scientific investigation.

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Features of observation
1. Eye Observation
In an accurate sense, observation involves the use of the eyes rather than the use of the ears and
the voice. An experienced worker never believes in hearsay he only trusts if he has observed that
with his own eyes or if the report is a first hand evidence of his eyes. So it can be said that
observation done with the help of the eyes acts as a most trustworthy medium for making an
observation.
2. Aim
Observations which act on scientific grounds are brought in use by the scientists or the
researchers with some or the other aim to achieve something. Such scientists make their
observations in a very minute and a detailed manner which helps them in achieving specific
goals. These goals can include discovery of something, verification of the hypothesis etc.
3. Planning
The value of an observation in an operation is only if it is done properly in a planned manner
as, if it is done in a careless sense then the chance of making such an observation again may
come or not. Hence, observation should be carried out in a very phased and a planned manner in
order to get in depth understanding of an activity.
4. Recording
The various operations that we perform and the results that we obtain should be remembered but
a known fact is that memory is very deceptive in nature. With the passage of time things tend to
get out of mind, so it is very important to keep a record of such activities. One very common
method to keep a track of these activities is to write down the various impressions, but now a
days a tape or in some cases a video camera is used for the recording purposes.
One of the major advantages of the recording done by a tape or a video camera is that the
chances of going wrong i.e. committing any mistake are very less or almost negative. In tape,
actual words can be recorded which results in zero chance of committing an error.
5. Physical and mental activity
Sense organs have a very critical role to play in the observation process. During the observation
researcher or an investigator has to use his sense organs for seeing and hearing things and then
has to keep in mind the whole set of observations for an in depth analysis of the matter later on.
6. Exactness
Observation should be based on standardized tools of research which makes an observation
exact in its nature of working.

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7. Direct study
Observation is a very vital scientific method that helps a lot in the collection of the primary
information that is reliable in nature in which direct study of the situation is involved.

Types of Observation
1. Casual and Scientific observation An observation can be sometimes casual in nature or
sometimes it may act scientifically. An observation with a casual approach involves observing
the right thing at the right place and also at the right time by a matter of chance or by luck
whereas a scientific observation involves the use of the tools of the measurement, but a very
important point to be kept in mind here is that all the observations are not scientific in nature.

2. Natural Observation Natural observation involves observing the behaviour in a normal

setting and in this type of observation, no efforts are made to bring any type of change in the
behavior of the observed. Improvement in the collection of the information and improvement in
the environment of making an observation can be done with the help of natural observations.

3. Subjective and Objective observation All the observations consist of the two main
components, the subject and the object. The subject refers to the observer whereas the object
refers to the activity or any type of operation that is being observed. Subjective observation

involving observer as an entity apart from the thing being observed, are referred to as the
objective observation. Objective observation is also called as the retrospection.

4. Direct and Indirect observation With the help of the direct method of observation, one
comes to know how the observer is physically present in which type of situation is he present
and then this type of observation monitors what takes place. Indirect method of observation
involves studies of mechanical recording or the recording by some of the other means like
photographic or electronic. Direct observation is relatively more straight forward as compared to
the indirect observation.

5. Participant and Non Participant observation Participation by the observers with the
various types of operations of the group under study refers to the participant type of observation.
In participant observation, the degree of the participation is largely affected by the nature of the
study and it also depends on the type of the situation and also on its demands.But in the non

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participant type of observation, no participation of the observer in the activities of the group
takes place and also there occurs no relationship between the researcher and the group.

6. Structured and Unstructured observation Structured observation works according to a

plan and involves specific information of the units that are to be observed and also about the
information that is to be recorded. The operations that are to be observed and the various
features that are to be noted or recorded are decided well in advance. Such observations involve
the use of especial instruments for the purpose of data collection that are also structured in
nature. But in the case of the unstructured observation, its basics are diametrically against the
structured observation. In such observation, observer has the freedom to note down what he or
she feels is correct and relevant to the point of study and also this approach of observation is
very suitable in the case of exploratory research.

7. Controlled and Non Controlled observation: Controlled observations are the observations
made under the influence of some of the external forces and such observations rarely lead to
improvement in the precision of the research results. But these observations can be very
effective in the working if these are made to work in the coordination with mechanical
synchronizing devices, film recording etc. Non controlled observations are made in the natural
environment and reverse to the controlled observation these observations involve no influence or
guidance of any type of external force.

Advantages of Observation
1. Very direct method for collecting data or information best for the study of human
behavior.
2. Data collected is very accurate in nature and also very reliable.
3. Improves precision of the research results.
4. Problem of depending on respondents is decreased.
5. Helps in understanding the verbal response more efficiently.
6. By using good and modern gadgets observations can be made continuously and also
for a larger duration of time period.
7. Observation is less demanding in nature, which makes it less bias in working abilities.
8. By observation, one can identify a problem by making an in depth analysis of the
problems.

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Disadvantages of Observation
1. Problems of the past cannot be studied by means of observation.
2. Having no other option one has to depend on the documents available.
3. Observations like the controlled observations require some especial instruments or tools
for effective working, which are very much costly.
4. One cannot study opinions by this means.
5. Attitudes cannot be studied with the help of observations.
6. Sampling cannot be brought into use.
7. Observation involves a lot of time as one has to wait for an event to happen to study that
particular event.
8. The actual presence of the observer himself Vis a Vis the event to occur is almost
unknown, which acts as a major disadvantage of observation.
9. Complete answer to any problem or any issue cannot be obtained by observation alone.

2. Interview Method
This method of collecting data involves presentation of oral verbal stimuli and reply in terms of
oral - verbal responses.

persons, the psychological process involved requiring both the individuals mutually respond
through the social research. The purpose of the interview calls for a varied response from the

This method acts as a very vital tool for the collection of the data in the social research as it is all
about the direct systematic conversation between an interviewer and the respondent. By this the
interviewer is able to get relevant information for a particular research problem.
It can be achieved by two ways :-
(A) Personal Interview - It requires a person known as interviewer to ask questions generally in
a face to face contact to the other person. It can be -
1. Direct personal investigation - The interviewer has to collect the information
personally from the services concerned.
2. Indirect oral examination - The interviewer has to cross examine other persons who are
suppose to have a knowledge about the problem.
3. Structured Interviews - Interviews involving the use of pre- determined questions and
of highly standard techniques of recording.
4. Unstructured interviews - It does not follow a system of pre-determined questions and
is characterized by flexibility of approach to questioning.
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5. Focused interview - It is meant to focus attention on the given experience of the

respondent and its effect. The interviewer may ask questions in any manner or sequence
with the aim to explore reasons and motives of the respondent.
6. Clinical interviews - It is concerned with broad underlying feeling and motives or
perience which are used as method to ellict information under this
method at the interviewer direction.
7. Non directive interview -
talk about the given topic with a bare minimum of direct questioning.

Advantages
More information and in depth can be obtained
Samples can be controlled
There is greater flexibility under this method
Personal information can as well be obtained
Mis-interpretation can be avoided by unstructured interview.
Limitations
It is an expensive method
Possibility of bias interviewer or respondent
More time consuming
Possibility of imaginary info and less frank responses.
High skilled interviewer is required
(B) Telephonic Interviews - It requires the interviewer to collect information by contacting
respondents on telephone and asking questions or opinions orally.

Advantages
It is flexible, fast and cheaper than other methods
Recall is easy and there is a higher rate of response
No field staff is required.
Limitations
Interview period exceed five minutes maximum which is less
Restricted to people with telephone facilities.
Questions have to be short and to the point
Less information can be collected.

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3. Questionnaire

This method acts as a great source or a facility for the collection of the data from the diverse and
scattered group of people. A questionnaire consists of a variety of the questions printed or typed
in a definite order on a form which are mailed further to the respondents. The respondent has to
answer these questions on his own.

The main function or the objective of the questionnaire is to collect data from the respondents,
who are generally scattered in a vast diverse area.

This method also helps in the collection of reliable and dependable data.

Essentials of a good questionnaire

To draft a questionnaire or schedule is an art. The success of statistical investigation depends on
proper drafting of the questionnaire. It is a highly specialized job and following points should be
borne in mind:
1. Brief and Limited Questionnaire:
The number of questions in a schedule should be brief and limited as possible. Only relevant
questions to the problem under investigation should be added.
2. Simple and Clear:
The questions should be simple, clear and precise. Its language should be very simple so that
informants may easily understand.
3. Unambiguous Questions:
All unambiguous questions should be avoided at all, complicated and long-worded questions
irritate the respondents which results in careless; replies.
4. No Personal Questions:
No personal question should be asked from, respondents. Such questions should be avoided.
5. Use of Proper Words:
Questions should be framed with right words. This ensures the validity.
6. Avoidance of Calculations:
Questions should not be based on calculations. Only those questions should be asked which the
respondents may reply immediately. Moreover, questions should avoid memories.
7. Only Objective Questions:
The questions should be objective. It should be based on opinions of the individuals.

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8. Sequence of the Questions:

The arrangement of the questions should be such so that no question may slip back. It must
involve a logical flow of questions.
9. Pre-testing:
Before sending the questionnaire to the respondents, it must be properly tested.
10. Instructions:
Precise and simple instructions of filling the questionnaire should be added in the foot note.
11. Cross Examination:
The questionnaire should be set in such a way that there may be cross examination of the
information supplied by the informants. In fact, it is a check on false or inaccurate answers.
12. Secret Information:
Every respondent should be ensured that information given by them shall be kept secret.
13. Attractive Questionnaire:
Proper care should be taken to make the questionnaire attractive. A well set questionnaire will
certainly impress the recipient

Advantages
Free from bias of interviewer
Respondents have adequate time to give
Respondents have adequate time to give answers
Respondents are easily and conveniently approachable
Large samples can be used to be more reliable
Limitations
Low rate of return of duly filled questionnaire
Control over questions is lost once it is sent
It is inflexible once sent
Possibility of ambiguous or omission of replies
Time taking and slow process
4. Schedules
In case the informants are largely uneducated and non-responsive data cannot be collected by
the mailed questionnaire method. In such cases, schedule method is used to collect data. Here
the questionnaires are sent through the enumerators to collect information. Enumerators are
persons appointed by the investigator for the purpose. They directly meet the informants with
the questionnaire. They explain the scope and objective of the enquiry to the informants and
solicit their cooperation.
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The enumerators ask the questions to the informants and record their answers in the
questionnaire and compile them. The success of this method depends on the sincerity and
efficiency of the enumerators. So the enumerator should be sweet-tempered, good-natured,
trained and well-behaved.

Schedule method is widely used in extensive studies. It gives fairly correct result as the
enumerators directly collect the information. The accuracy of the information depends upon the
honesty of the enumerators. They should be unbiased. This method is relatively more costly and
time-consuming than the mailed questionnaire method.

Overview of Different Techniques Data Collection Techniques

Technique Key Facts Example

Interviews can be conducted in

person or over the telephone

Interviews can be done formally

(structured), semi-structured, or
One-on-one conversation with parent
informally of at-risk youth who can help you
Interviews
understand the issueto see a sample
Questions should be focused, clear,
and encourage open- ended key informant interview.
responses

Interviews are mainly qualitative in

nature

Responses can be analyzed with

quantitative methods by assigning
numerical values to Likert-type Results of a satisfaction survey or
scales opinion survey to see an example of a
survey created using the
Questionnaires Results are generally easier (than CYFERnetSEARCH Interactive
and Surveys qualitative techniques) to analyze Survey Builder feature.to see a

Pretest/Posttest can be compared sample survey on middle school

and analyzed youth risk behavior.

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Allows for the study of the

dynamics of a situation, frequency
counts of target behaviors, or other
behaviors as indicated by needs of
the evaluation
Site visits to an after-school program
Observations Good source for providing to document the interaction between
additional information about a youth and staff within the program
particular group, can use video to
provide documentation

Can produce qualitative (e.g.,

narrative data) and quantitative data
(e.g., frequency counts, mean length

A facilitated group interview with

individuals that have something in
common A group of parents of teenagers in an
after-school program are invited to
Gathers information about
Focus Groups informally discuss programs that
combined perspectives and opinions
might benefit and help their children
Responses are often coded into succeed
categories and analyzed
thematically

Involves studying a single

phenomenon

Examines people in their natural

settings Shadowing a family while recording
extensive field notes to study the
Ethnographies ,
Uses a combination of techniques experience and issues associated with
Oral History,
such as observation, interviews, and youth who have a parent or guardian
and Case
surveys that has been deployed for an
Studies
example of an oral history. for an
Ethnography is a more holistic additional example of an oral history.
approach to evaluation

Researcher can become a

confounding variable

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Pilot Study
The term 'pilot studies' refers to mini versions of a full-scale study (also called 'feasibility'
studies), as well as the specific pre-testing of a particular research instrument such as a
questionnaire or interview schedule.
Pilot studies are a crucial element of a good study design. Conducting a pilot study does not
guarantee success in the main study, but it does increase the likelihood.
Pilot studies fulfil a range of important functions and can provide valuable insights for other
researchers. There is a need for more discussion amongst researchers of both the process and
outcomes of pilot studies.

Thus, a pilot study must answer a simple question: the full-scale study be conducted in
the way that has been planned or should some component(s) be
The reporting of pilot studies must be of high quality to allow readers to interpret the results and
implications correctly. This blog will highlight some key things for readers to consider when
they are appraising a pilot study.

The need for Pilot Study

It is difficult to plan a major study or project without adequate knowledge of its subject matter,
the population it is to cover, their level of knowledge and understanding and the like. What are
the issues involved? What are the concepts associated with the subject matter? How can they be
operationalised? What method of study is appropriate? How long the study will take? How
much money it will cost? These and other related questions call for a good deal of knowledge of
the subject matter of the study and its dimensions. In order to gain such pre-knowledge of the
subject matter of an extensive study, a preliminary investigation is con-ducted. This is called a
pilot study.
What are the main reasons to conduct a pilot study?
Pilot studies are conducted to evaluate the feasibility of some crucial component(s) of the full-
scale study. Typically, these can be divided into 4 main aspects:
Process: where the feasibility of the key steps in the main study is assessed (e.g.
recruitment rate; retention levels and eligibility criteria)
Resources: assessing problems with time and resources that may occur during the main
study (e.g. how much time the main study will take to be completed; whether use of some
equipment will be feasible or whether the form(s) of evaluation selected for the main
study are as good as possible)

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Management: problems with data management and with the team involved in the study
(e.g. whether there were problems with collecting all the data needed for future analysis;
whether the collected data are highly variable and whether data from different institutions
can be analyzed together).
How to interpret a pilot study
Readers must interpret pilot studies carefully. Below are some key things to consider when
assessing a pilot study:
The objectives of pilot studies must always be linked with feasibility and the crucial
component that will be tested must always be stated.
n study

vary in pilot studies (different articles present different sample size calculations) but the
pilot study population, from which the sample is formed, must be the same as the main
study. However, the participants in the pilot study should not be entered into the full-
scale study. This is because participants may change their later behaviour if they had
previously been involved in the research.
The pilot study may or may not be a randomized trial (depending on the nature of the
study). If the researchers do randomize the sample in the pilot study, it is important that
the process for randomization is kept the same in the full-scale project. If the authors
decide to test the randomization feasibility through a pilot study, different kinds of
randomization procedures could be used.
As well as the method section, the results of the pilot studies should be read carefully.
Although pilot studies often present results related to the effectiveness of the

in the results of pilot studies should always be on feasibility, rather than statistical
significance. However, results of the pilot studies should nonetheless be provided with
measures of variability (such as confidence intervals), particularly as the sample size of
these studies is usually relatively small, and this might produce biased results.

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Principles of Sampling

Theory of sampling is based on the following laws

a) Law of Statistical Regularity This law comes from the mathematical theory of probability.

items chosen at random from the large group are almost sure on the average to possess the
features o
random.

b. Law of Inertia of Large Numbers This law states that the other things being equal the
larger the size of the sample; the more accurate the results are likely to be.