Core: Business Research

(UNIT 4)
BMS 4th Sem

Sugandha Jain
SAMPLING DESIGN &
DATA ANALYSIS
Measures of Relationship
 Measures of Relationship
1. Univariate population: The population consisting of measurement of only
one variable.
2. Bivariate population: If for every measurement of a variable, X, we have
corresponding value of a second variable, Y, the resulting pairs of values
are called a bivariate population.
3. Multivariate population: We may also have a corresponding value of a
third variable, Z, or forth variable W, and so on, the resulting pairs of
values are called a multivariate population.
• In case of bivariate/multivariate population, we want to know the relation of the two or more
variables to one another. There are many methods of determining the relationship, but no
method can tell for certain that a correlation is indicative of causal relationship.

• We want to answer two questions in regard to bivariate/multivariate populations:

(i) Is there association or correlation between the two (or more) variables? If yes, of what
degree?
(ii) Is there any cause-effect relationship between the two variables (bivariate) or between one
variable on one side and two or more variables on the other side (multivariate)? If yes, what
degree and which direction?
The first question is answered by using correlation and the second by using regression.
Factor Analysis
 What is factor analysis?
• Multivariate statistical technique
• Interdependence technique: no distinction between dependent and
independent variables.
• All variables are analysed together to extract the underlying factors.
• Data reduction method: reduces a large number of variables to a few
manageable factors.
• These factors explain most part of the variations of the original set of data.
• It helps in identifying the underlying structure of the data.
 What is the purpose of factor analysis?
To estimate a model which explains variance/covariance
between a set of observed variables (in a population) by a set
of (fewer) unobserved factors and weightings.
Visual
Representation
of Factor Analysis

15 balls of different
colors
Visual
Representation of
Factor Analysis

Grouped into Red,

Blue and Green balls
 Uses of factor analysis
•Explain variance/covariance in terms of a simpler structure
•Testing a theory
•Dimensionality reduction (helps to improve predictive power
of a model and makes computation easy)
 Applications of factor analysis
• Scale construction: Used to develop concise multi-item scales to measure a construct. It
can reduce a set of statements as well as ensure that retained statements adequately
represent the critical aspects of the construct. Eg. to prepare a 15-item scale measuring job
satisfaction we would generate a large number of statements, say 100 through exploratory
research. Factor analysis can help us get 3 factors out of it. Now, we can separate five items
in each of the factors having the highest factor loading.
• Establish antecedents: Reduces multiple input variables or IVs into grouped factors.
• Psychographic profiling: Different IVs are grouped to measure independent factors, which
are then used for identifying personality types.
• Segmentation analysis: Eg. there can be different sets of 2-wheelers customers who own
2-wheelers because of different importance they give to factors like prestige, price and
functionality.
• Marketing studies: New product development; product acceptance, pricing, branding
studies.
✔ identify the attributes of brands that influence consumers’ choice
 Conditions for factor analysis
• Metric data (either interval or ratio scale)
• The size of the sample should be at least 4-5 times the number of variables (or statements).
• Initial set of variables should be highly correlated. If correlation coefficients between all the
variables are small, factor analysis may not be appropriate. A correlation matrix of the variables can
be computed and tested for its statistical significance with hypothesis:

H0 : Correlation matrix is insignificant. HA : Correlation matrix is significant.

• Bartlett sphericity test: Tests the hypothesis that the variables are uncorrelated in the population,
by calculating a chi-square statistic. Significance of result ensures that factor analysis is appropriate.
• Kaiser-Meyer-Olkin (KMO) statistics: Measures the proportion of variance among variables that
might be common variance. Value between 0 and 1. To apply factor analysis, KMO should be > 0.5. A
low KMO shows that correlation between variables cannot be explained by other variables.
 Correlation Matrix
Q1 Q2 Q3 Q4 Q5 Q6
Q1 1
Q2 0.987 1
Q3 0.801 0.765 1
Q4 -0.003 -0.088 0 1
Q5 -0.051 0.044 0.213 0.968 1
Q6 -0.190 -0.111 0.102 0.789 0.864 1

Q1, Q2, Q3: Palpitation, Dry mouth, Sweating 🡪 Somatic component of anxiety
Q4, Q5, Q6: Worry, Apprehension, Nervousness 🡪 Affective component of anxiety
 What is a factor?
• A construct that is not directly observable but that needs to be inferred from the input
variables.
• An underlying dimension that accounts for several observed variables.
• A linear combination of variables. Mathematical representation of a factor:
Fi = Wi1X*1 + Wi2X*2 + Wi3X*3 + ... + WikX*k
where,
X*i = ith standardized variable
Fi = Estimate of ith factor
Wi = Weight or factor score coefficient for ith standardized variable.
k = Number of variables
• There can be one or more factors, depending upon the nature of the study and the number of
variables involved in it.
• The factors are statistically independent.
 Two types of factors
Reflective: Eg. symptoms Formative: Eg. Causes/ sources
 Factor loading
• Those values which explain how closely the variables are related to each one of the
factors discovered.
• It is the correlation coefficient of the extracted factor score with a variable. Also
known as factor-variable correlations.
• Factor-loadings work as key to understanding what the factors mean.
• It is the absolute size (rather than the signs, plus or minus) of the loadings that is
important in the interpretation of a factor.
• A factor matrix contains the factor loadings of all the variables on the factors.
 2
Communality (h )
• Amount of variance a variable shares with all the other variables. This is the proportion
of variance explained by the common factors.
• Shows how much of a variable is accounted for by the underlying factors taken together.
• A high value of communality means that not much of the variable is left over after
whatever the factors represent is taken into consideration.
• It is worked out in respect of each variable as under:
h2 of the ith variable = (ith factor loading of factor A)2 + (ith factor loading of factor B)2 + …
 Eigen value (Latent root)
• When we take the sum of squared values of factor loadings relating to a factor,
then such sum is called eigen value or latent root.
• Eigen value is the total amount of variance explained by a factor.
• It indicates the relative importance of each factor in accounting for the particular
set of variables being analysed.
• Factors with eigen value higher than a specific value can be selected. This value is
generally taken as 1. The rationale is that a worthwhile component should explain
at least one variable's worth of the variability.
 Total sum of squares
• When eigen values of all factors are totaled, the resulting value is termed as the
total sum of squares.
• This value, when divided by the number of variables (involved in a study),
results in an index that shows how the particular solution accounts for what all
the variables taken together represent.
• If the variables are all very different from each other, this index will be low. If
they fall into one or more highly redundant groups, and if the extracted factors
account for all the groups, the index will then approach unity.
 Rotation
• Just as different stains on a microscope slide reveal different structures in the tissue,
different rotations in factor analysis reveal different structures in the data.
• Though different rotations give results that appear to be entirely different, but from
a statistical POV, all results are taken as equal, none superior or inferior to others.
• However, from the standpoint of making sense of the results of factor analysis, one
must select the right rotation.
• Independent factors: orthogonal rotation; Correlated factors: oblique rotation.
• Communality for each variable will remain undisturbed regardless of rotation but
the eigen values will change accordingly.
 Factor Scores
• Composite scores estimated for each respondent on the derived factors.
• Factor score represents the degree to which each respondent gets high
scores on the group of items that load high on each factor.
• Factor scores can help explain what the factors mean.
 Procedure of conducting factor analysis
1. Problem formulation and design
2. Checking appropriateness of data matrix
a. Sample size
b. Composition of data matrix
c. Independence of measures
3. Construction of correlation matrix
a. Measures of association
b. Significance of correlation matrix
4. Choosing method of factor analysis
5. Determining number of factors (Apriori analysis)
6. Rotation of factors
7. Interpretation of factors
8. Validation of factor structure
 Problem formulation & Design
• Stating objectives of the FA based research (For eg. Sources of well-being)
Data summarization (understanding the relationship)
Data reduction (dimension reduction and identifying variables linked with each
dimension)
• The theory behind the hypothesis
• Selecting the measures and measurement levels (metric scales are always
preferred)
 Checking appropriateness of data matrix
• Sample size: larger the better, or 5-10x the number of variables
• Composition: Data matrices should not comprise of submatrices from
different data sources
• Independence: Any dependence in the measurement of the variable
may artificially increase their correlations, thus causing them to
appear together on the same factor.
 Construction of correlation matrix
• Association: Correlation coefficient is the most commonly used
measure of association, but it underestimates the strength of
curvilinear relations. Other measures of association are: distance
measures, cross-product indexes, covariance.
• Significance of the matrix: To calculate Bartlett and KMO
 Methods of factor analysis
Type Descriptive Inferential

Exploratory Principal Components Analysis (PCA) Canonical Factor Analysis

(EFA) Principal Axis Factor Analysis Maximum Likelihood Analysis

Image Analysis Alpha Factor Analysis

Minimum Residual Analysis

Confirmatory Multiple Group Confirmatory Maximum Likelihood

(CFA) LISREL LISREL
 Choosing a factor analysis method
Two main approaches (differ in estimating communalities):
i. Principal components analysis
Simplest computationally
Assumes all variance is common variance (implausible) but gives similar
results to more sophisticated methods
i. Principal axis factor analysis
Estimates communalities first
 How many factors?
• Initially unknown. Needs to be specified by researcher through preliminary
analysis.
• No 100% foolproof statistical test to determine no. of factors. Several methods:
Latent root variance
% variance
Scree plot
Parallel analysis
Other methods
 Rotation
• The initial solution is ‘unrotated’ which hides groupings in the data.
• Two undesirable features make it hard to interpret:
Designed to maximise the loadings of all items on the first factor.
Most items have large loadings on more than one factor.
• Rotation of factors helps to address the said problems by providing a simple structure
that can be easily interpreted.
• Types of rotation:
Orthogonal (independent factors): Varimax, Quartimax, Equimax
Oblique (correlated factors): Promax, Direct Oblimin
 Interpreting factors
• Done on the basis of ‘large’ loadings: often taken to be above 0.3.
• But the definition of large depends on sample size, so cannot say for
sure.
• Well defined factor should have at least three high-loading variables.
• Assigning meaning to factors (factor/construct naming)
 Validation of factor structure
• Cross-validation on another sample
• Split half validation
• Validation using Confirmatory factor analysis (CFA)
Discriminant Analysis
 What is discriminant analysis?
●Multivariate analysis technique; dependence method
●There is one DV (categorical) and multiple IVs (metric)
●Used to determine the variables that discriminate between two or more groups
●Therefore, it is used when there is a single dependent non-metric variable that is to be
classified into two or more categories, based on its relationship with multiple
independent metric variables.
●Used to predict group membership, i.e. to classify individuals/objects into one of the
alternative groups on the basis of a set of predictor variables. This technique helps in
predicting a DV’s likelihood of belonging to a particular group.
●Two-group discriminant analysis: two categories of DV; one discriminant function
Multiple discriminant analysis: more than two categories; number of functions is one
less than the number of groups
 The problem (eg.)
● We have a diabetes drug.
- It works great for some people
- But for others it makes them feel worse

● How do we decide who to give it to?

- Maybe gene expression can help us decide..
Using one gene to decide who gets the drug
• For the most part, the drug works in people with low transcription of
gene X. And vice versa for high transcriptions of gene X.
• However, there is no obvious cutoff point for who to give the drug to.
• In summary, gene X does an OK job telling us who should take the
drug and who shouldn’t.
• Can we do better? What if we used more than one gene?
Using two genes to decide
Two genes do a better job separating the two categories than just using
one gene. However, it is still not perfect. Would using 3 genes be even
better?
Using three genes to decide
Using three genes to decide

But it is difficult to visualise

how well the plane is
separating the two
categories.
 What if we need four or more genes?
• It is not possible to draw a 4D graph.
• So, herein using linear discriminant analysis (LDA) helps
maximising the separability among the known categories.
• Let us first take a simple example to understand
 Reducing a 2D graph into a 1D graph
We want to do this in such a way that maximises the separability of the
two categories. So, what’s the best way to reduce the dimensions?
 Bad way to reduce

• This is bad because it ignores the useful information that gene Y provides. Same goes for
projecting the genes onto the Y-axis and ignoring information from the X-axis.
• LDA provides a better way…
 Reducing a 2D graph to 1D graph with LDA
LDA uses information from both genes to create a new axis and projects the
data onto this new axis in away to maximise the separation of the 2 categories.
 How LDA creates a new axis?
The new axis is created according to two criteria (considered simultaneously):
Why both distance and scatter are important
What if we have more than 2 genes? LDA with 3 genes:
The process is the same. LDA creates an axis that maximises the distance
between the means for the two categories while minimising the scatter.

This axis was chosen to maximise the

distance between the 2 means of the 2
categories, while minimising the scatter.
 What if we have 3 categories?
Two things change, but very slightly…
 LDA for 3 categories (Basically, Multiple DA)
The first difference is how we measure the ‘distances’ among the means.
 LDA for 3 categories (Basically, Multiple DA)
The second difference is LDA creates 2 axes to separate the data.

● When we use only 2 genes, this is no

big deal. The data started on an X-Y
plot and is still on a new X-Y plot.
● But what if we had data for 1000
genes? We would need 1000
dimensions to draw the data for these
3 categories.
● Now, even a 2D graph (X-Y axes) to
separate 3 categories seems amazing.
 Two-group discriminant analysis model
The mathematical form of the two-group discriminant analysis model is:
D = b0 + b1 X1 + b2 X2 + b3 X3 + ... + bK XK
where,
D = Discriminant score
bj = Coefficients of independent variables
Xi = Predictor or independent variables
k = Number of independent variables

Based on the score, the DV is allotted the “most likely” category.

• In case of two-group DA, the categorisation is done on the basis of a
Dcritical score.

• If for an individual, D > Dcritical, he is classified as belonging to Group 1,

otherwise to Group 2.

• The b value indicates which variables are important for discriminating

between particular pairs of groups.
 Multiple discriminant analysis model
• When there are n groups, a discriminant function is formed for each pair of
groups, so, n(n-1)/2 functions.
• The b values for each function tells which of those 2 groups the individual is
more likely to belong.
• After this categorisation, transitivity is used.
• Eg. if group 2 is ‘more likely’ than group 1 and group 3 is ‘more likely’ than group
2, then group 3 is also ‘more likely’ than group 1. Thus the individual will be
assigned to group 3.
Mahalanobis Statistic (D2): Calculated for testing whether the two
groups are statistically different from each other.

Wilks’ Lambda Test: Done to identify which variables contribute

significantly in the discriminant function. If Wilks’ lambda is closer to 0,
the variable contributes more to the discriminant function.
 Objectives of LDA
• To find a linear combination of variables that discriminate between categories of DV
in the best possible manner.
• To find out which IVs are relatively better in discriminating between groups.
• To determine the statistical significance of the discriminant function and whether
any statistical difference exists among groups in terms of predictor variables.
• To develop the procedure for assigning new objects, firms or individuals whose
profile but not the group identity are known to one of the two groups.
• To evaluate the accuracy of classification, i.e., the percentage of customers that it is
able to classify correctly.
 Applications of LDA
• Scale construction: DA is used to identify the variables that are discriminating (on which
people with diverse views respond differently). Eg. to assess whether people believe
policy-makers or firms are responsible for good CG, one may generate several statements,
conduct a pilot study and select those on which the 2 groups differ significantly.
• Segment discrimination: A population under consideration is never totally homogeneous.
So, to know the key variables on which 2 or more groups differ, we use LDA. We can ask
questions like: What are the variables on which…successful/unsuccessful salesmen
differ? users/non-users of a product differ? price-sensitive/non-price sensitive customers
differ?
• Perceptual mapping: LDA is also used to create attribute-based spatial maps of the
respondent’s mental positioning of brands. The advantage is that LDA can present brands
and the attributes on the same map. Therefore, the businesses can determine what
attribute is the unique selling proposition (USP) of which brand and which are the
attributes that are valued by the respondent but there is no brand that currently satisfies
Conjoint Analysis
 What is conjoint analysis?
• Uses nominal-scale data
• Attempts to identify the most desirable attributes that could be offered in a
product or service by determining the relative importance that consumers
attach to the attributes and the utilities that they attach to the levels of
attributes.
• The values assumed by the attributes are called levels.
• The utilities describe the importance that consumer attach to the levels of each
attribute.
• Here, the respondents are told about the various combinations of the attribute
levels and are asked to evaluate the combinations in terms of their desirability.
This evaluation can be done either using ordinal or interval-scale data.
• Subjective evaluation of the combinations to identify the most desirable
combinations of the levels of attributes to be included in the new product.
• The major business domain where the technique is used is Marketing, though it is
also applied in the area of HR, Finance and Operations.
 Uses of conjoint analysis

• Determine the relative importance of the attributes in the

choice process of the consumers
• Determine the market share of brands that differ in attribute
levels
• Segment the market based on similarity of preference for
attribute levels
For conducting the conjoint analysis, the researcher is required to
identify the attributes and the levels of the attributes that
could be used in constructing the stimuli for presentation to the
respondents. The attributes and its various levels could be
identified using exploratory research which could be conducted
by discussion with management and industry experts;
informal interviews with prospective customers, analysis of
secondary data and case studies. Once the attributes and its
various levels are identified, the respondents are presented with
combinations of attributes with levels to show their preference
for various combinations.
Suppose we ask a set of respondents to express their preference among movies that varied
on three attributes, each with two levels as shown below:
Hero of the Movie Shahrukh Khan Akshay Kumar
Genre Action Comedy
Ticket Price Rs. 150 Rs. 200
There are 2×2×2=8 movie combinations, in total. Each of them is presented to, say,
respondent 1 and asked to give his preferences in terms of desirability, either on an interval
or ordinal scale.
Feature 1 SRK Action Rs. 150
Feature 2 SRK Action Rs. 200
Feature 3 AK Action Rs. 150
Feature 4 AK Action Rs. 200
Feature 5 SRK Comedy Rs. 150
Feature 6 SRK Comedy Rs. 200
Feature 7 AK Comedy Rs. 150
Feature 8 AK Comedy Rs. 200
 Steps in conjoint analysis
1. Identification of Attributes: From the consumer POV, only those attributes that influence the
consumers’ choice will be selected. This is determined through exploratory research. From the POV
of the company, it has to see whether it has the technological or other resources which could be
used to incorporate consumer preferences. One has to be careful in selecting the attributes since
only a limited number could be used in a conjoint study.
2. Determination of Attribute Levels: The number of levels of each attribute has a direct bearing
on the number of stimuli which the respondents could have to evaluate. To ensure quality of data,
have as small number of levels for each attribute as possible. The goal is to end up with good
estimates of the utility of each attribute level. While creating stimuli for conjoint judgment, the
researcher has to keep in mind that there is a relationship between the number of levels used to
measure an attribute and the inferred importance of the attribute. The more the levels used for an
attribute, the more important that attribute is going to be inferred in the analysis. The choice of
attribute levels depends upon their effect on consumer choice. If the chosen attribute levels lie
outside the range that is usually encountered, it decreases the believability by respondents but
could increase the accuracy by which parameters can be estimated. A combination such as very
low price and high quality is unbelievable, but it could result in increase in accuracy by which
parameters can be estimated.
 Steps in conjoint analysis
3. Determination of Attribute Combinations: 3 attributes each with 3 levels, the total
number of stimuli: 3 × 3 × 3 = 27. If each attribute has 5 levels: 5 × 5 × 5 = 125 stimuli. It
will be very difficult for respondents to provide meaningful judgments on their
preference of such a large number of stimuli. The analyst, instead of using the full
factorial design where the respondent is to indicate preference for all stimuli, uses a
fractional factorial design where only select stimuli are selected.
4. Nature of Judgment on Stimuli: This can be done in 2 ways. One is to ask the
respondents to rank the stimuli according to their preference/intention to buy
(advantages: ease of use, ease of administration). The second way is to use a rating scale.
The respondent may be asked to rate their preference on a 5 or 7-point rating scale
(advantages: less time consuming, more convenient to use, easier to analyse). In the
rank-order approach, relative judgments are sought, whereas in rating scale,
respondents are asked to indicate their degree of preference for each stimuli.
 Steps in conjoint analysis
5. Aggregation of Judgments: Decision about how the responses from various individual
consumers are aggregated. One option is to estimate the utility function for each
individual (problem: individual-level functions cannot be used for formulating marketing
strategies). On the other extreme, one could pool the results across all respondents and
estimate one overall utility function (problem: ignores heterogeneity that exists among
respondents). Best option would be to group respondents in segments. The main
question is how to form segments. The segments formed are homogenous with respect
to the benefits that respondents want from product or service.
6. Choice of Technique of Analysis: As our purpose is to estimate the utilities for each
level of each attribute, a dummy variable regression would be quite appropriate.
 Uses of conjoint analysis
• Segmentation: Could be based on the similarities/dissimilarities in the utilities that
are attached to the levels of various attributes. The analysis could group customers
of two-wheelers that care about different attributes—there could be respondents
to whom ‘product features’ are important, some for whom ‘economic
considerations’ are important, while others ‘pride of ownership’.
• Computation of price elasticity: In case price is included in the conjoint analysis,
one of the outputs obtained could be a utility function for price, which could be
used for computation of elasticity. Elasticity information can be obtained at a lower
cost from such data rather than from conjoint analysis.
• Estimating sales for new or improved products: The effect of changes in any
attribute like price, product features, warranty terms in the conjoint procedure can
help in answering “what if” this occurred.
 Issues in using conjoint analysis
• Cost: Collecting face-to-face data involves high cost and may result in a small sample.
• Restricted usage: Because of the high cost, using conjoint analysis may be restricted to product
development or improvement and should not be carried out for the purpose of determining
important attributes of the product or for market segmentation.
• Hypothetical exercise: Respondents are asked to visualize the descriptions and reliably choose
among them, which may not be that easy.
• Assumption of importance: Assumes that the attributes considered are the important ones,
which means some evidence that the considered attributes are the most important ones is
needed. Perhaps a previous factor analysis study that identified the most important features.
• Choosing the levels: Important to remember that the analyst has chosen the appropriate
levels of the attributes. Exclusion of some levels may lead to poor management decision.
• Fractional analysis: Full FD may not be feasible, therefore fractional FD is desired. However, it
is advised to take ask experts before dropping some combinations.
• Role of respondents: It is very important that all respondents must be properly motivated as
the form of ranking or rating various combinations may be taken very seriously.
Innovation-Diffusion Model
(Bass Diffusion Model)
 Introduction to Bass model
Businesses regularly invest large sums of money in new product development. If the product does
not sell well, these investments can reduce the company’s value or share price. It is therefore vital
to predict future sales of a product before it comes to market.
The Bass model (by Frank Bass) has been successfully used to forecast product sales before the
product comes to market. It also gives the analyst an explanation of how knowledge of new
products spreads throughout the market place.
Diffusion of a new product is driven by two types of people:
• Innovators: People who seek new products without caring if other people have adopted the
new product. They are influenced by advertising and are not dependent on the decisions of
others in the social system. This behaviour is more pronounced during the very early stages of
the product life cycle.
• Imitators: People who wait to try a product until other people have successfully used the
product. They are influenced by prior adopters through positive word-of-mouth
The Bass model helps the marketing analysts determine the relative importance of innovators and
imitators in driving the spread of the product (basically, predict new product diffusion patterns).
 How it works
There are 3 key parameters in the Bass model - called m, p, and q.

m p q
(market size: provides (coefficient of innovation: (coefficient of imitation)
scale of the demand probability that an innovator
forecast) will adopt at time t)
External influence Internal influence
Advertising effect Word of mouth, social
contagion effects
The parameters p and q determine the shape of the adoption curve.
p and q specify how fast or slow the adoption of a new product is expected to proceed.

To sum up, the adoption of a new product can proceed either by small scale or a large
scale (specified by m) or at a fast or slow pace (specified by p and q).
Bass Models with various levels of innovation (p) and imitation
(q)

A product with a high p is

adopted very quickly by a
market even though it has
a low q. A product with a
low p is adopted very
slowly at first by the
market, even though it has
a high q.
 Managerial implication of Bass model
Helps management to
• forecast the adoption of a new product and to predict the sales since it
determines the shape of the curve of a model that represents the cumulative
adoption of a new product. Also, it does not require previous unit sales data to
predict a demand forecast of the product of interest, unlike other majority demand
forecasting methods.
• address pre-launch, launch, and post-launch strategic decisions of the new
product.
Report Writing and Presentation of
Results
 Importance of effective documentation
• Fulfills the historical task of serving as concrete proof of the study that was undertaken.
It is the complete detailed report of the research undertaken, thus needs to be presented
in a comprehensive and objective manner.

• Provides a framework for other work in the same/related areas.

• For academic purpose, the recorded document presents a knowledge base on the topic
and for the manager seeking help in taking more informed decisions, the report provides
the necessary guidance for taking appropriate action.

• As the report documents all the steps and analysis undertaken, it serves to authenticate
the quality of the work carried out and establishes the strength of the findings obtained.
 Types of research reports (based on size)
1. Brief Reports: Not formally structured and are generally short, not running more than
4-5 pages. Information provided has limited scope and is prepared either for
immediate consumption or as a prelude to the formal structured report that would
subsequently follow. These reports could be designed in several ways.
a) Working papers/ Basic reports: Focus is on present study. Purpose is to collate the
process carried out in terms of the scope, framework, methodology and instrument,
result and findings of the study. However, interpretation of findings and study
background might be missing, as focus is not on past literature. These reports serve as
a reference point when writing the final report or when the researcher wants to revisit
the detailed steps followed in collecting the study-related information.
b) Survey reports: Focus here is to present findings in easy-to-comprehend format that
includes figures and tables. The reader can then study the patterns in findings to arrive
at appropriate conclusions, essential for resolving the business dilemma.. Advantage:
simple and easy to understand and present findings in a clear and usable format
 Types of research reports (based on size)
2. Detailed Reports: More formal and pedantic in their structure and are
essentially either academic, technical or business reports.
3. Technical Reports: Major documents and include all elements of the basic
report, as well as the interpretations and conclusions, as related to the
obtained results. Has complete problem background and any additional past
data/records that are essential for comprehending and interpreting the present
study output. All sources of data, sampling plan, data collection instrument(s),
data analysis outputs would be formally and sequentially documented.
4. Business Reports: Absence of technical rigour and details of the technical
report. Would be in the language and include conclusions as understood and
required by the business manager. The tables, figures and numbers of the first
report would now be pictorially shown as bars and graphs and the reporting
tone would be more in business terms rather than in conceptual or theoretical
terms. If needed, the tabular data might be attached in the appendix.
Preliminary Section
• Title page
• Letter of Transmittal
• Letter of Authorization
Appendices
• Table of Contents Bibliography
• Executive Summary Glossary
• Acknowledgements

Background Conclusion
• Problem Statement • Conclusions and
• Study Introduction and Background
• Scope and Objectives of the Study
Recommendations
• Limitations of the Study Process of
• Review of Literature
Report
Methodology Findings Writing
• Research Design • Results
• Sampling Design • Interpretation of Results
• Data Collection
• Data Analysis
 Features of good report writing
• Clear report mandate: While writing the research problem statement and study
background, the writer needs to be focused, lucid , precise and explicit regarding what the
problem is, the background that provided the impetus to conduct the research and the
study domain. This is prepared in such a way that the writer wouldn’t need to be physically
present in to clarify the research mandate, and that the reader has no earlier insights into
the problem situation.
• Clearly designed methodology: Writer needs to be explicit in terms of the logical
justification for using the study methods and techniques. Language should be
non-technical and reader friendly and any technical explanations or details must be
provided in the appendix. Transparency regarding procedures used evokes confidence in
the findings and resulting conclusions.
• Clear representation of findings: The sample size for each analysis, any special
conditions or data treatment must be clearly mentioned either as a footnote/endnote, so
that the reader takes this into account while interpreting and understanding the study
results. Complete honesty and transparency in stating the treatment and editing of missing
or contrary data is extremely critical.
• Representativeness of study finding: A good research report is also explicit in terms of
extent and scope of the results obtained, and in terms of the applicability of findings. This is
 Guidelines for effective documentation
• Command over medium (correct and effective language of
communication)
• Phrasing protocol (no personal pronouns; neutral tone; avoid long
sentences, slangs; proper citation, quotations, italics; maintain
sanctity of formal documentation)
• Simplicity of approach (avoid technical jargon)
• Report formatting and presentation (paper quality, margins, font
style, size, professional and uniform, graphs and figures for variation
and relief)
 Guidelines for presenting tabular data
• Table identification details (number and title, short, no verbs or
articles)
• Data arrays (arrangement of data; ascending: either chronologically or
alphabetically, sub-categorization)
• Measurement unit
• Spaces, leaders….. and rulings
• Assumptions, details and comments (special definition or formula
needed to understand the data)
• Data sources (if data is secondary)
• Special mention (special figures can be bold, highlighted or
star-marked)
 Guidelines for visual data
1. Line and curve graphs: To demonstrate trends and pattern in the data, a line
chart is the best option available. Can show growth patterns of different
sectors/industries in the same time period.
• The time units or the causal variable being studied are to be put on the X-axis
• To compare different series on the same chart, the lines should be of different
colours
• Too many lines not advisable on the same chart as data becomes cluttered;
ideal number would be 5 or less.
• The researcher also must take care to formulate the zero baseline in the chart
as otherwise, the data would seem to be misleading.
2. Area or stratum charts: Similar to line charts. However, here there are
multiple lines that are essentially components of the original composite data.
What is done is that the change in each of the components is individually shown
on the same chart and each of them is stacked one on top of the other. The
areas between the various lines indicate the scale or volume of the relevant
 Guidelines for visual data
3. Pie charts: Another way of demonstrating the area or stratum or sectional
representation. The difference between a line and pie chart is that the pie chart cannot
show changes over time. Simply shows the cross-section of a single time period. The
sections or slices of the pie indicate the ratio of that section to the total area of the
parameter being displayed.
• The complete data must be shown as a 100 per cent area of the subject being
graphed.
• Display percentages within or above the pie rather than in the legend as then it is
easier to understand the magnitude of the section in comparison to the total.
• Showing changes over time is difficult through a pie chart, as stated earlier. However,
the change in the components at different time periods could be demonstrated.
 Guidelines for visual data
4. Bar charts and histograms: Representation of magnitude of different objects on the
same parameter. The comparative position of objects becomes very clear.
• The usual practice is to formulate vertical bars; however, it is possible to use
horizontal bars as well if none of the variable is time related. Horizontal bars are
especially useful when one is showing both positive and negative patterns on the
same graph (bilateral bar charts).
• Another variation of the bar chart is the histogram here the bars are vertical and the
height of each bar reflects the relative or cumulative frequency of that particular
variable.
 Guidelines for visual data
5. Pictogram: Shows graphical representation of data. Most often used in magazines
and newspapers, as they are eye-catching and easy to comprehend by one and all.
They are not a very accurate or scientific representation of the actual data and, thus,
should be used with caution in an academic or technical report.
6. Geographic representation: Geographic or regional maps related to countries,
states, districts, territories can be used as a base to show occurrence of the studied
variable in various regions or to show comparative analysis about major brands or
industries or minerals. In case of comparative data, the researcher must provide the
legend in the displayed map, for example any map of the location may be given.
 Oral presentation: Research briefings
• Not go over 20 mins
• Time for questioning
• Know your audience
• Purpose of the briefing
• Study background, findings, implications and recommendations
• Handouts/ brochures
• Visual aids: slides (more graphical/visual data as compared to textual,
chalkboard/ flipcharts, video/ audio tapes)