Chapter 11 Business Research Process Step-7 Primary Data

Chapter 11 Business Research Process (Step-7): Primary Data Collection References: • Research Methods For Business (Uma Sekaran) • VU Book of BRM • Business Research Methods (William G. Zikmund) • Internet Resource Person: Furqan-ul-haq Siddiqui

The Business Research Process Observation 1 Broad problem area Preliminary Data Gathering 2 Problem definition 3 Theoretical Framework 4 Variables Identification and labelling Generation of Hypothesis 5 Scientific 6 Research Design Data 7 Collection, analysis & interpretation NO Decision Making Report Presentation Report Writing Yes Deduction Research Question Answered?

Three Broad Approaches to Obtain Primary Data 1. Communicate with people (Survey) Human Interactive Media (Interviews) Ø Electronic Interactive Media Ø Non-Interactive Media (Self-Administered Questionnaires) Ø 2. Observation- Conditions, behavior, events, people, or processes 3. Experiments- (Chapter 7)

Communicate with people (Survey) n Human Interactive Media (Personal Interviews) Ø A personal interview (i. e. face to face communication) is a two way conversation to obtain information from a respondent. Personal interviews may take place in a factory, in a homeowner’s doorway, in an executive’s office, in a shopping mall, or in other settings. Scheduled vs. Unscheduled interviews Good Afternoon, my name is ___________. I am from _______. We are conducting a survey on_____ to determine………….

Forms of Personal Interviews n Door to Door Interviews conducted at respondent’s home or place of work. It is likely to provide more representative sample of the population than questionnaire. Some people may prefer to give a verbal response rather than in writing. Ø People who do not have telephones, who have unlisted numbers, or who are otherwise difficult to contact may be reached through door to door interviews. Ø

Intercept Interviews in Malls and Other High. Traffic Areas Unscheduled interviews conducted at a points where respondents are likely to be. Ø Low cost. Ø The incidence of refusal is high because individuals may be in a hurry or not interested. Ø May not be a representative sample of the population. Ø Each mall will have its own characteristics. Ø Hi traffic areas – some fast food center n

Electronic Interactive Media n Telephone Interviewing Ø Respondents may even be more willing to provide detailed and reliable information on a variety of personal topics over the telephone than in personal interviews. Telephone surveys can provide representative samples of general population in most industrialized countries. Ø q Automated Computer Telephone Interviewing (ACTI) is a telephone surveying technique by which a computer with speaker independent voice recognition capabilities asks respondents a series of questions, recognizes then stores the answers,

q q Central Location Interviewing Research agencies and interviewing services typically conduct all telephone interviews from central location. WATS (Wide. Area Telecommunications Service) lines, provided by long distance telephone service at fixed rates, allow interviewers to make unlimited telephone calls throughout the entire country or within a specific geographic area. Such central location interviewing allows firms to hire staffs of professional interviewers and to supervise and control the quality of interviewing more effectively. Computer-Assisted Telephone Interviewing (CATI) Telephone interviewers are seated at computer terminals. A monitor displays the questionnaire, one question at a time, along with pre-coded possible responses to each question. The interviewer reads each question as it is shown on the screen. When the respondent answers, the interviewer enters the response into the computer, and it is automatically stored in the computer’s memory when the computer displays the next question on the screen.

Non-Interactive Media (Self-Administered Questionnaires- ) Service evaluations of hotels, restaurants, car dealerships, and transportation providersare examples of non-interactive media Ø Often a short questionnaire is left to be completed by thee participants in a convenient location or is packed with thee product. Ø Self-administered mail questionnaires are delivered not only through postal services, but also via fax and courier service. Other modalities include computerdelivered and intercept studies.

Mail Questionnaire- A mail survey is a self administered questionnaire sent to respondents through the mail q E-Mail Surveys- Questionnaires can be distributed via email. The benefits of an e-mail include speed of distribution, lower distribution and processing cost, faster turnaround time, more flexibility, and less handling of paper questionnaires. q Internet Surveys- An internet survey is a self-administered questionnaire posted on a Web site. Respondents provide answers to questions displayed on screen by highlighting a phrase, clicking an icon, or keying in an answer. Like any other survey, q Drop-off Survey. This is a more flexible method combining the advantages of the mail survey and the face-to-face interview. In this approach, a researcher goes to the respondent's home or workplace, give them questioners and get it filled by respondents on the spot or else. q

There is no best form of survey; each has advantages and disadvantages.

Strengths & weaknesses of Contact Methods Mail Telephone Personal Online Flexibility Poor Good Excellent Fair Quantity of data collected Control of sample Good Fair Excellent Fair Poor Speed of data collection Response rate Poor Excellent Good Excellent Poor Good Moderate Cost Good Fair High Excellent Possibility of misunderstanding Interviewer Influence high Lower Lowest Moderate None Moderate High None

Selected Questions To Determine The Appropriate Technique: Is the assistance of an interviewer necessary? Ø Are respondents interested in the issues being investigated? Ø Will cooperation be easily attained? Ø How quickly is the information needed? Ø Will the study require a long and complex questionnaire? Ø How large is the budget? Ø

Guidelines for Questionnaire Design n A survey is only as good as the questions it asks. Questionnaire design is one of the most critical stages in the survey research process. Ø Common sense and good grammar are important in question writing, more is required in the art of questionnaire design. To assume that people will understand the questions is common error. Proper wording the questionnaire is crucial, as some problems may be minimized or avoided altogether if a skilled researcher composes the questions. A good questionnaire forms an integrated whole. The researcher weaves questions together so they flow smoothly. He or she includes introductory remarks and instructions for clarification and measures each variable with one or more survey questions. Ø Ø Ø

What should be asked? n 1. 2. Ø The problem definition will indicate which type of information must be collected to answer the research question; different types of questions may be better at obtaining certain type of information than others. Questionnaire Relevancy A questionnaire is relevant if no unnecessary information is collected and if the information that is needed to solve the problem is obtained. The researcher must be specific about data needs, and there should be a rationale for each item of information. Questionnaire Accuracy Once the researcher has decided what should be asked, the criterion of accuracy becomes of primary concern. Accuracy means that the information is reliable and valid. While experienced researchers believe that one should use simple, understandable, unbiased, unambiguous, and nonirritating words. Avoid jargon, slang, and abbreviations. Respondents can probably tell thee interviewer whether they are married, single, divorced, separated, or widowed, but providing their “marital status” may present a problem. Words used in the questionnaire should be readily understandable to all respondents.

3. 4. 5. Avoid Double-Barreled Questions Make each question about one and only one. A double barreled question consists of two or more questions joined together. It makes the respondent’s answer ambiguous. For example, if asked, “Does this company have pension and health insurance benefits? ” Avoid Leading Questions A leading question is the one that leads the respondent to choose one response over another by its wording. For example, the question, “you don’t smoke, do you? ” leads respondents to state that they do not smoke. “Don’t you think that women should be empowered? ” In most the cases the respondent is likely to agree with the statement. Avoid Loaded Questions Loaded questions suggest a socially desirable answer or are emotionally charged. “Should the city government repair all the broken streets? ” Most of the people are going to agree with this question simply because this is highly socially desirable. A question which may be challenging the traditionally set patterns of behavior may be considered as emotionally charged i. e. Let us ask a husband “Have you ever been beaten up by your wife? ”

6. Avoid Burdensome Questions that may Tax the Respondent’s Memory- A simple fact of human life is that people forget. Certain questions may make serious demand on the respondent’s memory. “How did you feel about your brother when you were 6 years old? ” It may very difficult to recall something from the childhood. 7. Arrange Questions in a Proper Sequence The order of question, or the question sequence, may serve several functions for the researcher. If the opening questions are interesting, simple to comprehend, and easy to answer, respondent’s cooperation and involvement can be maintained throughout the questionnaire. In some situations it may be advisable to ask general question before specific question to obtain the freest opinion of the respondent. This procedure, known as funnel technique.

8. 9. Use Filter Question, if Needed Asking a question that doesn’t apply to the respondent or that the respondent is not qualified to answer may be irritating or may cause a biased response. Including filter question minimizes the chance of asking questions that are inapplicable. Filter question is that question which screens out respondents not qualified to answer a second question. For example the researcher wants to know about the bringing up of one’s children. “How much time do you spend playing games with your oldest child? ” What if the respondent is unmarried? Even if the respondent is married but does not have the child. Layout of the questionnaire Good lay out and physical attractiveness is crucial in mail, Internet, and other self-administered questionnaires. Make a cover sheet or face sheet for each, for administrative use. Put the time and date of the interview, the interviewer, the respondent identification number, and interviewer’s comments and observations on it. Give interviewers and respondents instructions on the questionnaire. In mail surveys, include a polite, professional cover letter on letterhead stationery, identifying the researcher and offering a telephone number for any questions. Always end with “Thank you for your participation. ”

Observation It is possible to collect data with out asking questions to respondent. n Observation consists of collecting data through the senses, or the recording of data using scientific instrument. q Types of observational studies • Non- Participative • Participative Ø

WHAT CAN BE OBSERVED Phenomena Example Human behavior or physical action Shoppers movement pattern in a store Verbal behavior Statements made by airline travelers who wait in line Expressive behavior Facial expressions, tone of voice, and other form of body language

Temporal patterns How long fast-food customers wait for their order to be served Physical objects How many papers office works use daily. Verbal and Pictorial Records Bar codes on product packages How many illustrations appear in a training booklet.

Categories of Observation q Human versus Mechanical Ø • • wear and tear of a book indicates how often it has been read • • Traffic counters Scanners Physiological measures Camera q Visible versus Hidden q Natural q Contrived • Mystery shopping or a mystery consumer is a tool to measure quality of retail service or gather specific information about products and services. Mystery shoppers pose as normal customers perform specific tasks—such as purchasing a product, asking questions, registering complaints or behaving in a certain way – and then provide detailed reports or feedback about their experiences.

Questionnaire Design Types of Questions n Rating Scales – Questions having several response categories and are used to elicit responses with regard to the object, events or person studied. The rating scale is one of the oldest and most versatile of assessment techniques. Rating scales present users with an item and ask them to select from a number of choices. The rating scales are somehow similar in some respects to multiple choice tests.

q i. ii. iii. The following rating scales are often used in Business research: Dichotomous Questions- question having two possible responses e. g. true/false or yes/no (Nominal Scale) Category Scales- offering multiple answers to elicit single response (Nominal Scale). Likert scale- Designed to examine that how strongly subjects agrees or disagrees with statements. 5 point Scale (Interval Scale with the same differences between any two points on the scale)

iv. Semantic differential is a type of a rating scale designed that offers a bipolar pair of adjectives between which the respondent must choose along some form of scaling. Its used to assess attitudes towards a brand, object or individual. Usually, the position marked 0 is labeled "neutral, " the 1 positions are labeled "slightly, " the 2 positions "quite, " and the 3 positions "extremely. "

Interval Scale is used in Semantic Differential

v. Cumulative or Guttman scale- the respondent checks each item with which they agree. The items themselves are constructed so that they are cumulative -- if you agree to one, you probably agree to all of the ones above it in the list: Interval Scale

vi. Constant sum scale – a respondent is given a constant sum of money, script, credits, or points and asked to allocate these to various items (example : If you had 100 Yen to spend on food products, how much would you spend on product A, on product B, on product C, etc. ). This is an ordinal level technique.

vii. Stapel Scales Modern versions of the Staple scale place a single adjective as a substitute for the semantic differential when it is difficult to create pairs of bipolar adjectives. Ø The advantage and disadvantages of a Stapel scale, as well as the results, are very similar to those for a semantic differential. However, the stapel scale tends to be easier to conduct and administer. Ø Since this scale doesnot have a absolute zero, therefore interval scale is used in it. Ø

A Stapel Scale for Measuring a Store’s Image

viii. Graphic Rating Scales n A graphic rating scale presents respondents with a graphic continuum.

Summary of Advantages and Disadvantages of Rating Scales

n Ranking scales These scales are used to tap preferences between two or more objects.

i. Paired comparisons- In paired comparisons the respondents are presented with two or more objects at a time and asked to pick the one they prefer. Ranking objects with respect to one attribute is not difficult if only a few products are compared, but as the number of items increases, the number of comparisons increases geometrically (n*(n -1)/2). If the number of comparisons is too great, respondents may fatigue and no longer carefully discriminate among them. (ordinal Scale) Example - Which brand do you prefer? ___ Coca-Cola ___ Pepsi ___ Sprite ___ Pepsi ___ Coca-Cola ___ Seven-Up ___ Fanta ___ Seven-Up

ii. The forced choice- It enables respondents to rank objects relative to one another, among the alternatives provided. This is easier for the respondents, particularly if the number of choices to be ranked is limited in number.

iii. The comparative scale- The comparative scale provides a benchmark or a point of reference to assess attitudes toward the current object, event, or situation under study. An example of the use of comparative scale follows.

n i. ii. Open ended questions - The respondent supplies their own answer without being constrained by a fixed set of possible responses. Examples of types of open ended questions include: Completely unstructured - For example, “What do you think about……. . ? ” Word association - Words are presented and the respondent mentions the first word that comes to mind. It is believed by some that this game can reveal something of a person's subconscious mind (as it shows what things they associate together)

iii. iv. v. vi. Sentence completion - Respondents complete an incomplete sentence. For example, “The most important consideration in my decision to buy a new house is. . . ” Story completion - Respondents complete an incomplete story. Picture completion - Respondents fill in an empty conversation balloon. Thematic apperception test - Respondents explain a picture or make up a story about what they think is happening in the picture.