Name: ________________________________ Roll No.

:________________

T. A. Pai Management Institute, Manipal

PGDM, Batch: 2021 – 2023, Term 3
End-Term Examination
BUSINESS RESEARCH METHODS (OPS 5003)
(Open Book)
Duration: 120 Minutes Total Marks: 80
Date: 06/04/2022 Weightage: 40%

This exam evaluates the CLO1 and CLO 2.

Question 1 will be used for assessment of rubrics for PLG2 (CLO 1).
Question 2 will be used for assessment of rubrics for PLG3 (CLO 2).

General Instructions:
The Question Paper has 6 Questions.
Also, only the Textbook, notes and PPTs are allowed as part of the Open-book exam.

Q1. (a) Translate the following management problems into research problems and formulate two
research objectives for each
i. Introduce a new healthcare service
ii. Increase the sales of a product

(b) What research design (Exploratory / Descriptive / Causal) seems appropriate for each of the
following? How will you collect data in each scenario?
i. The company likes to know whether the people recognize their brand of cold drink.
ii. The company likes to know whether the people are aware of their brand.
iii. The company likes to know whether their employees are serving their customers
effectively.

(c) Which are the scales used here in each of these examples?
i. Respondents are asked to allocate 100 points to attributes of a brand as per the importance
they think, the attribute has.
ii. Brand A is Trustworthy --:--:--:--:--:--:-- Not at all Trustworthy.

(d) What is the problem in this Question? Identify and correct.

Please respond on a Likert scale of 1 (Strongly Disagree) to 7 (Strongly Agree) – The Customer service
people of my mobile service provider are helpful and knowledgeable.

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(e) What is the sampling technique used here, in each case?

i. You are standing in front of a shopping mall and collecting data from any person, who is willing
to respond to your questionnaire.
ii. From a group of 500 people, you selected the 4 th person first and then every 20th person (i.e.
24th, 44th and so on) to collect data.
(6 + 6 + 2 + 2 + 2 = 18 Marks)

Q2. An ayurvedic hospital wants to launch a new health drink in the market. The company has
conducted market research to understand the key factors consumers keep in mind while purchasing
health drink. The research team has conducted three FGDs with a sample of 24 consumers. Thereafter,
they have conducted a survey in which they administered a questionnaire that included some items
related to health drink attributes. The results (statistical outputs) of the factor analysis, is provided
below. Answer the following questions based on these results.
a. Comment on the KMO and Bartlett’s Test of Sphericity?
b. Calculate the missing communalities. Comment on the communalities.
c. What is the total variance explained?
d. Identify the factors formed and the variables included within it.
e. What names would you give to those factors?
f. What will you use to judge the reliabilities of the 2 factors?
(2 + 3 + 1 + 2 + 2 + 2 = 12 Marks)

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .728
Approx. Chi-Square 1002.84
Bartlett's Test of Sphericity df 15
Sig. .002

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Communalities
Initial Extraction
Style statement 1.000 .904
Energy booster 1.000 .782
Social uplift 1.000 .804
Improves Stamina 1.000 *********
Prevent disease 1.000 .798
Increase immunity 1.000 *********

Rotated Component Matrixa

Component

1 2

Style statement .942 -.040

Energy booster -.038 .864

Social uplift .880 -.158

Improves Stamina .112 .888

Prevent disease .088 .936

Increase immunity .068 .796

Q3. Which of the t-Tests, ANOVA or Chi-square will be used in the following situations? Write out the
hypothesis for each situation also?
(i) A telecom company wants to know if there is any association between age group and amount of
data usage.
(ii) The same telecom company wants to know whether the satisfaction level is up to the mark.
(iii) The telecom company wants to know whether a discount offer is making them recharge with
higher amount.
(iv) A FMCG company wants to find out whether the males or females are more loyal to a particular
juice brand.

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(v) The same FMCG company wants to know whether the satisfaction and loyalty is same for the juice
brand. (2 + 2 + 2 + 2 + 2 = 10 Marks)

Q4. (a) Following are last 4 stages of the agglomeration schedule. On the basis of these, what will be
the number of clusters? What is the sample size here?
Agglomeration Schedule
Stage Cluster Combined Coefficients Stage Cluster First Appears Next Stage
Cluster 1 Cluster 2 Cluster 1 Cluster 2
252 - - 164.602 - - 255
253 - - 278.222 - - 254
254 - - 684.442 - - 255
255 - - 912.004 - - 0

(b) The number of respondents in 3 Clusters are 25-20-35 from Hierarchical Clustering and 24-22-34
from K-Means Clustering. Is it ok, to go ahead with the Cluster solution?

(c) The following result (Cluster Centroids) is from a K-Means Cluster analysis. Name the clusters or
segments appropriately. All responses were measured in a 5-point Likert Scale. Also do the profiling.

Variables Cluster1 Cluster2 Cluster3

I will buy Insurance from same company again 4.87 1.52 3.02
I am not at all happy with this Insurance company 1.84 4.68 2.96
The call center service of the company is excellent 4.56 1.76 3.22
I will talk positively about the company to others 4.48 1.96 3.12
The employees of Insurance company are not helpful 1.66 4.64 2.88
I am not at all satisfied with the service provided 1.98 4.44 2.90

Cluster 1 – 104 males & 96 females; Service – 86, Business – 88 & Students - 26.
Cluster 2 – 84 males & 36 females; Service – 22, Business – 88 & Students - 10.
Cluster 3 – 54 males & 46 females; Service – 20, Business – 18 & Students - 62.
(2+ 1 + 2 + 9 = 14 Marks)

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Q5. The following regression model has been proposed to predict sales at a computer store.

i. Provide the relevant hypothesis with respect to this model.

ii. Predict sales (in dollars) for a store with the competitor's previous day's sale of $5,000, a
population of 20,000 within 1 mile, and nine radio advertisements.
iii. The t-values of X1, X2 and X3 are -2.56, 1.24 and 3.02. Comment on the significance of the X’s.
iv. What is the effect of the X’s on the Y variable? How will you rank the X’s?
v. Comment on R-square and Adjusted R-square values of 0.348 and 0.308.
(2 + 2 + 3 + 3 + 2 = 12 Marks)

Q6. A bank is trying to find what actually makes the customers recommend their services to the others.
Recommendation (1=yes, 2=no) is used as a dependent variable and Promotions, Price increase,
Product quality, Availability of branches and Customer service are used as independent variables. The
results of a suitable statistical test conducted on the data are presented below:

Tests of Equality of Group Means

Wilks'
Lambda F df1 df2 Sig.

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Promo .607 9.12 1 10 .001

Price .470 5.22 1 10 .026
Product .602 6.80 1 10 .04
Availability .406 8.12 1 10 .002
Service .510 5.14 1 10 .082

Eigenvalues
Canonical
Function Eigenvalue % of Variance Cumulative % Correlation
1 1.896 100.0 100.0 0.864
a. First 1 canonical discriminant functions were used in the analysis.

Wilks' Lambda
Test of Function(s) Wilks' Lambda Chi-square df Sig.
1 .264 18.228 5 .004

Structure Matrix
Function 1
Promo 0.524
Price -0.448
Product 0.422
Availability 0.396
Service 0.188

Canonical Discriminant Function

Coefficients (Unstandardized coefficients)
Function 1
Promo 0.222
Price -0.084
Product 0.424
Availability 0.608
Service 0.082
(Constant) -4.88

Functions at Group Centroids

Function
Recommendation 1
Yes 2.064
No -2.064

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Unstandardized canonical discriminant functions evaluated at

group means

Classification Results
Predicted Group
Membership
Selection yes No Total
Original Count yes 60 0 60
No 10 50 60
% yes 100.0 0.0 100.0
No 16.7 83.3 100.0
Cross-validated Count yes 50 10 60
No 10 50 60
% yes 83.3 16.7 100.0
No 16.7 83.3 100.0

Answer the following questions:

a) Is the model statistically significant? Justify. What is the R-square value?
b) Comment on the quality of the model.
c) Rank the variables in the highest to lowest order.
d) Comment on the significance of independent variables, use =0.05.
e) Write out the discriminant function.
f) Comment on the classification accuracy of the model.
g) Comment on the Group centroids and its use.
(2+2+2+2+2+2+2 = 14 Marks)

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