MGT-491 QUANTITATIVE ANALYSIS AND RESEARCH FOR MANAGEMENT

MGT-491QUANTITATIVE ANALYSIS AND RESEARCH FOR

MANAGEMENT

OSMAN BIN SAIF

Session 4

Summary of Last Session

• Defining a research question• Formulating a research problem– Importance– Sources– Considerations while selection– Steps involved

• Formulating an objective

Summary of Last Session (Contd.)

• Establishing operational definitions• Framing Hypothesis• Functions of Hypothesis• Characteristics of Hypothesis

Research DESIGN

• It is a framework or blue print for conducting the research project.

• It details the procedures necessary for obtaining the information needed to structure or solve research problems.

Research DESIGN (Contd.)

• Although a broad approach to the problem has already been developed, the research design specifies the details, the nuts and bolts of implementing the approach.

• A research design lays the foundation for conducting the project.

Research DESIGN (Contd.)

• Typically a research design involves the following tasks;– Define the information needed– Design the exploratory, descriptive, and / or causal

phases of the research.– Specify the measurement and scaling procedures.

Research DESIGN (Contd.)

– Construct and pre test a questionnaire for data collection.

– Specify the sampling process and sample size– Develop a plan of data analysis.

Classification

Research design

Exploratory Conclusive

Classification (Contd.)

• Primary objective of exploratory research is to provide insights into, and an understanding of the problem confronting the researcher.

Classification (Contd.)

Conclusive Research

design

Descriptive Research

Cross sectional research

Single cross sectional

design

Multiple cross sectional

design

Longitudinal research

Causal research

Classification (Contd.)

• Conclusive research is more formal and structured.

• It is based on large, representative samples, and the data obtained are subject to quantitative analysis.

Classification (Contd.)

• The findings from conclusive research design are used as inputs into managerial decision making.

Classification (Contd.)Difference between exploratory and conclusive research

Exploratory Conclusive

Objective: To provide insights and understanding

To test specific hypothesis and examine relationships

Characteristics: Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small. Analysis of primary data is qualitative.

Information needed is clearly defined. Research process is formal and structured. Sample is large. Data analysis is quantitative.

Findings/ Result: Tentative Conclusive

Outcome: Generally followed by further exploratory or conclusive research

Findings used as input into decision making.

Research Design (Contd.) A comparison of basic research designs

Exploratory Descriptive Causal

Objective Discovery of ideas and insights

Describe market characteristics or functions

Determine cause and effect relationships

Characteristics Flexible, versatile Marked by prior formulation of specific hypothesis

Manipulation of one or more independent variables

Often the front end of total research design

Preplanned and structured design

Measure the effect on dependent variables

Methods Expert surveys, Pilot surveys, case studies, qualitative analysis

Secondary data: qualitative analysis, Surveys, Panels, Observation and other data

Experiments

Exploratory Research

• The objective of exploratory research is to explore or search through a problem or situation to provide insights and understanding.

Exploratory Research (Contd.)

• Can be used for the following purposes;– Formulate a problem or define a problem more

precisely.– Identify alternative course of action.– Develop Hypothesis.– Isolate key variables and relationships for further

examination.– Gain insights for developing an approach to the

problem– Establish priorities for further research.

Exploratory Research (Contd.)

• It can greatly benefit from the use of the following methods;– Expert Surveys– Pilot surveys– Case studies– Secondary data analyzed in a qualitative way– Qualitative research

Exploratory Research (Contd.)

• Example; CASE of a Departmental store (Application of exploratory research);– A review of academic and trade literature to identify

the relevant store characteristics, demographic and psychographic factors that influence consumers.

– Interviews with retailing experts to determine trends.

– A comparative analysis of five best and five worst stores of the same chain.

Descriptive Research

• Major objective is to describe something usually market characteristics or functions.

• It is conducted for the following reasons;– To describe characteristics of relevant groups,

such as consumers, sales people, organizations, or market areas.

Descriptive Research (Contd.)

– To estimate the percentage of units in a specified population exhibiting a certain behavior.

– To determine the perception of product characteristics.

– To determine the degree to which marketing variables are associated.

– To make specific predictions.

Descriptive Research (Contd.)

• Examples;– Market studies, which describe the size of market,

buying power of consumer, availability of distributers and consumer profiles.

– Market share studies, which determine the proportion of total sales received by a company and its competitors.

Descriptive Research (Contd.)

• Examples (Contd.);– Sales analysis studies, which describe sales by

geographical region, product line, type and size of the account.

– Image Studies, which determine consumer perceptions of the firm and its products.

Descriptive Research (Contd.)

• Examples (Contd.);– Product usage studies, which describes

consumption patterns– Distribution studies, which determine traffic flow

patterns and the number and location of distributors

Descriptive Research (Contd.)

• Examples (Contd.);– Pricing studies, which describe the range and

frequency of the price changes and probable consumer response to proposed price changes.

– Advertising studies, which describe media consumption habits and audience profiles for specific television programs and magazines.

Descriptive Research (Contd.)

• A vast majority of marketing research studies involve descriptive research, which incorporates the following;– Secondary data analysis– Surveys– Panels– Observational and other data

Cross Sectional Designs

• It involves the collection of information from any given sample of population elements only once.

• This design is also called sample survey research design.

Cross Sectional Designs (Contd.)

• Single Cross sectional design;– in which one sample of respondents is drawn from

the target population and the information is obtained from the sample once.

• Multi cross sectional design;– In which there are two or more samples of

respondents, and information from each sample is obtained only once.

Cohort Analysis

• It consists of a series of surveys conducted at appropriate time intervals, where the cohort serves as the basic unit of analysis.

• A cohort is a group of respondents who experience the same event within the same time interval.

Cohort Analysis (Contd.)

• Example: – A birth (or age) cohort is a group of people who

were born during the same time interval.

• Cohort analysis is also used to predict changes in the voters opinions during a political campaign.

Longitudinal Design

• A type of research design involving a fixed sample of population elements that is measured repeatedly. The sample remains the same over time, thus providing a series of picture that, when viewed together, portray a vivid illustration of the situation and the changes that are taking place over time.

Longitudinal Design (Contd.)

• Sometimes the term panel or true panel is used instead of longitudinal design.

• A panel consists of a sample of respondents, generally households that have agreed to provide information at specified intervals over an extended period.

Longitudinal Design (Contd.)

• Data obtained from panels not only provide information on market shares that are based on an extended period of time but also allow the researchers to examine changes in market share over time.

Relative Advantage or Disadvantage of Longitudinal and cross sectional designs

Evaluation Criteria Cross sectional Design Longitudinal Design

Detecting change - +

Large amount of data collection

- +

Accuracy - +

Representative sampling

+ -

Response Bias + -

Plus sign denotes relative advantage , whereas minus sign denotes relative disadvantage

Advantage and disadvantages of Panel

• Advantages;– Relatively large amount of data can be collected.

Panel members are usually compensated so they are willing for lengthy and demanding interviews.

Advantage and disadvantages of Panel (Contd.)

• Panel data is more accurate than cross sectional data. • Example;

– A typical cross sectional survey requires the respondent to recall past purchases and behavior, these data can be inaccurate because of memory lapses.

– Panel data which rely on continuous recording of purchases in a diary, place less reliance on the respondent’s memory.

Advantage and disadvantages of Panel (Contd.)

• Disadvantages;– Refusal to Cooperate:• Many individuals or households do not wish to be

bothered with the panel operation and refuse to participate. Consumer panels requiring members to keep a record of purchases have a cooperation rate of 60 % or less.

Advantage and disadvantages of Panel (Contd.)

• Disadvantages;– Mortality;• Panel members who agree to participate may

subsequently drop out because they move away or loose interest.

Advantage and disadvantages of Panel (Contd.)

• Disadvantages;– Payment;• Payment may cause certain types of people to be

attracted, making the group unrepresentative of the population.

Advantage and disadvantages of Panel (Contd.)

• Disadvantages;– Response Bias;• New panel members are often biased in their initial

responses. They tend to increase the behaviour being measured.• Seasonal members may also give biased responses

because they believe they are experts or want to look good or give the right answers.

Causal Research

• It is used to obtain evidence of cause and effect relationships.

• Marketing Managers continually make decisions based on assumed causal relationships.

Causal Research (Contd.)

• Example;– A decrease in price will lead to increased sales and

market share.

Causal Research (Contd.)

• Is Appropriate for the following purposes;– To understand which variables are the cause

(independent variables) and which variables are the effect (dependent variables).

– To determine the nature of the relationship between the causal variables and the effects to be predicted.

Summary of This Session

• Research design• Classifications of Research design• Discussed and compared;– Exploratory research designs– Descriptive research designs– Causal research designs

Thanks