Research Methods

Fall 2020
BAB4

Knar KHACHATRYAN, PhD

kkhachatryan@aua.am
 Session 2: Agenda

Formulating and identifying

research topic: objectives and
research question
 Problem solving – Group 1
• You are lazy but you like money.
• A kind man comes and tells you: “if you want to make money, you
just need to cross that bridge and you’ll get the double the amount
you have in your pocket”.

• Then, the man smiles and adds: “Of course, you have to pay me for
my effort: you will give me 24 euros after each journey”.

• You accept the deal, cross the bridge and are happy to realize that
the magic works. As soon as you have crossed the bridge, you have
doubled your pocket money! Of course you pay the man and try
again. Fantastic !!! it works again.
• You pay the man for the 2nd time and you cross the bridge again.
Then, you pay the man for the third time and then….. you realize
that there is no money left in your pocket. The KIND Man can’t stop
laughing.
• What happened?
Solution
 Problem solving – Group 2
• A particular treatment, let's call it treatment A, has a
history of success, is routinely used and is widely
accepted by health practitioners as the most appropriate
for the given condition.
• Unfortunately, patients tend to disagree. For them the
treatment takes too long, can often have unpleasant
side-effects, and the procedure itself can cause
embarrassment.
• A new treatment is developed, treatment B, which
preliminary trials suggest has the potential to benefit
patients with fewer sideeffects and which is administered
using a more patient-friendly procedure; unfortunately it
is more expensive than treatment A.
• Should the new treatment be adopted?
 Situation types

• The conclusion is that learning is context specific

both at individual and collective levels.
• We propose a typology of contextual situations
that affect the nature of the cognitive process.
• The situation type depends on the familiarity with
the question to be answered, the problem to be
solved.
• It depends on the capability to interpret a
situation and to define an intentional purpose
regarding the past experience in a similar
context.
 Language of Research

Conceptual
Concepts Constructs
schemes

Operational
Models
definitions
Terms used
in research
Theory Variables

Hypotheses
 Language of research
• A concept is generally accepted collection of
meanings associated with certain events,
objects, conditions, or situations or behaviors.
• A construct is a definition specifically
invented to represent an abstract phenomena
for a given research project.
• A conceptual scheme is the interrelationship
between concepts and constructs.
• An operational definition defines a variable
in terms of specific measurement and testing
criteria.
 Language of research
• A variable is used as a synonym for the
construct being studied.
• A hypothesis is a proposition formulated for
empirical testing.
• A theory is a set of systematically interrelated
concepts, definitions, and propositions that
are advanced to explain or predict
phenomena.
• A model is a representation of a system
constructed to study some aspect of that
system.
Job
Redesign
Constructs
and
Concepts
Operational Definitions

How can we define the variable

“class level of students”?
 Operational Definitions

How can we define the variable

“class level of students”?

 Freshman  <30 credit hours

 Sophomore  30-50 credit hours
 Junior  60-89 credit hours
 Senior  >90 credit hours
Variable: The Property Studied

Event Act

Variable

Characteristic Trait

Attribute
 Types of Variables

Expected to be affected by
Dependent the independent variable

Expected to affect the

Independent dependent variable
Independent and Dependent Variables ?

• We use the PSM approach to establish if in the ECA

region savings collection by MFIs improves financial
performance and social outreach, and thus strengthens
the case for continuing the trend toward
commercialization that is taking place across the
industry.
• Another major contribution is our ability to control for
the role of subsidy, which has not been previously
considered.
• Our detailed capital structure data allows us to control
for the source of capital that the MFIs use (subsidized
or not) and thus we are able to incorporate concerns
not addressed explicitly in previous work.
 Types of Variables (cont.)

A second independent
Moderating variable; significant affect on
IV-DV relationship

Might affect the IV-DV

Extraneous/control relationship.

May affect IV-DV relationship

Intervening but can’t be observed.
Relationships Among Variable Types
Moderating Variables (MV)

• The introduction of a four-day week (IV) will lead to

higher productivity (DV), especially among younger
workers (MV)

• The switch to commission from a salary compensation

system (IV) will lead to increased sales (DV) per worker,
especially more experienced workers (MV).

• The loss of mining jobs (IV) leads to acceptance of

higher-risk behaviors to earn a family-supporting income
(DV) – particularly among those with a limited education
(MV).
Relationships Among Variable Types
Intervening Variables (IVV)

• The switch to a commission compensation

system (IV) will lead to higher sales (DV) by
increasing overall compensation (IVV).

• A promotion campaign (IV) will increase savings

activity (DV), especially when free prizes are
offered (MV), but chiefly among smaller savers
(EV-control). The results come from enhancing
the motivation to save (IVV).
Relationships Among Variable Types
Extraneous Variables (EV)

With new customers (EV-control), a switch to

commission from a salary compensation system (IV)
will lead to increased sales productivity (DV) per
worker, especially among younger workers (MV).

Among residents with less than a high school

education (EV-control), the loss of jobs (IV) leads to
high-risk behaviors (DV), especially due to the
proximity a high violence neighborhood (MV).
Hypotheses

• Brand Manager Jones (case) has a

higher-than-average achievement
motivation (variable).

Generalization

• Brand managers in Company Z (cases)

have a higher-than-average achievement
motivation (variable).
Hypothesis Formats

Descriptive Format Question format

•American cities are •Are American cities
experiencing budget experiencing budget
difficulties due to a difficulties due to a
decline in decline in
manufacturing. manufacturing?
 Types of Hypotheses

The life expectancy of airplane

Descriptive model 707 exceeds 16 years.

An increase in price causes

Causal sales to decrease.

People who eat dessert weigh

Correlational more than those who don’t.
Why Didn’t Sales Increase?
Checklist for a Strong Hypothesis

Adequate

A
Strong Testable
Hypothesis
Better
than rivals
Theory

Defines systematically integrated

concepts/constructs/hypotheses

Complex, abstract, multiple variables

Develops over time

Used to explain or predict

 Example
Asymmetric information between the seller and buyer
Akerlof’s lemon
• Vehicle that has many problems and defects that affects
negatively its utility
• The lemon theory posits that in the used car market, the
seller has more information regarding the true value of
the vehicle than the buyer.
• This results in the buyer not wanting to pay more than
the average price of the car, even if it is of premium
quality. This benefits the seller if the car is a lemon but is
a disadvantage if the car is of good quality.

Agency problem?
Theory Example: Product Life Cycle

Sales

Primary
Innovation
Demand
Product
Life
Cycle

Profits Adopters
Example: PLC Model