Business Research- I

Module-2 Basic Research Methods

Chapter Tour
Secondary Data Analysis with example (Self

Study)
Survey Research - Errors and Methods of

Communication
Observational Research- Nature and Types

Experimental Research- Issues and types of

Designs

Topics Covered
Observation Methods- Nature and Types Experimental Research- Issues and Types of

Designs

OBSERVATIONAL RESEARCH

OBSERVATION RESEARCH
Observation becomes a tool for scientific inquiry when it Serves a formulated research purpose. Is planned systematically. Is recorded systematically and related to general propositions rather than being presented as reflecting a set of interesting curiosities. Is subjected to checks or controls on validity and reliability. Scientific observation is the systematic process of recording the behavioral patterns of people, objects, and occurrences as they are witnessed.

What can be observed?

Phenomenon
1) Human Behavior

Example
Work patterns or television viewing

2) Verbal Behavior

Office conversations, statements made by airline travelers waiting in line

Tone of the voice or facial expressions, other forms of body language Physical distance between workers or traffic patterns Amount of time spent shopping or time required to perform a work task Finished goods inventory, how much paper office workers recycle?

3) Expressive behavior

4) Spatial relations 5) Temporal patterns

6) Physical objects

The Nature Of Observation Studies

Human observers are commonly used when the

situation or behavior to be recorded is not easily predictable in advance of the research. Mechanical observation can be very accurate when the situation or behavior to be recorded is routine, repetitive, or programmatic. Visible observation is a situation in which the observers presence is known to the subject. Hidden observation is a situation in which the subject is unaware that observation is taking place.

The Nature Of Observation Studies

Observation of Human Behavior Surveys emphasize verbal responses, while observation studies emphasize and allow for the systematic recording of nonverbal behavior. Behavior scientists have recognized that nonverbal behavior can be a communication process by which meanings are exchanged between individuals. Nonverbal Communication Symbols: head nods, smiles, raised eyebrows, and other facial expressions or body movements. Observation of nonverbal communication has considerable promise for the business researcher. Of course, verbal behavior is not ignored, and in certain cases verbal responses are very important in

The Nature Of Observation Studies

Supplementary Evidence The results of observation studies may amplify the results of other forms of research by providing complementary evidence concerning individuals true feelings. Role-playing sessions and focus group interviews are often conducted behind one-way mirrors, so that researchers can observe as well as listen to what is occurring. This allows for the interpretation of such nonverbal behavior as facial expressions or head nods to supplement information from interviews.

DIRECT OBSERVATION
Researcher using the direct observation method

compile data by recording events as they occur.

Direct observation is often used to help keep the

observations consistent and to ensure that all relevant information is recorded.

The recording of the observation is instantaneous.

It is the straightforward attempt to observe and record

what naturally occurs; the investigator does not create

an artificial situation.

Errors associated with direct observation

Observer bias: A distortion of measurement resulting

from the cognitive behavior or actions of the witnessing observer.

Interpretation of observation data is another major

source of potential error.

Response Latency: it is a measure of strength of the

preference between alternatives. It is hypothesized that the longer a decision maker takes to make a choice between two alternatives, the closer the two alternatives are in terms of preference.

CONTRIVED OBSERVATION
Observing subjects in an artificial environment in

order to test the hypothesis is called contrived observation.

If situations werent contrived, the research time

spent waiting and observing situations would expand considerably.

Mystery Shopper: the term is used by a number of

retailers to describe this type of research, in which an observer posing as a shopper comes into a store and pretends to be interested in a particular product or service. After leaving the store, the unknown

OBSERVING SOCIAL SETTINGS

In many situations the purpose

of observation is to summarize, systematize, and simplify the activities, meaning, and relationships in a social settings. Often, unstructured methods provide the observer with the greatest flexibility. Elements of interest in most social settings: 1) The participants 2) The settings 3) The purpose 4) The social behavior 5) Frequency and duration

PARTICIPANT OBSERVATION
It refers to an observation situation in which an

observer gains firsthand knowledge by being in or around the social settings that is being investigated. The participant observer must develop a system for recoeding his or her observations. The observer takes mental notes and jots down field notes where possible. More detailed field notes are recorded to summarize and synthesize the events and activities of the day.

Ethical Issues in Human Observation

Hidden observation: Raise the issue of the subjects

right to privacy. Contrived observation: raise the possibility of deception of subjects. Some people might see contrived observation as entrapment. To entrap means to deceive or trick into difficulty, which clearly is an abusive action. The problem is one of balancing values.

OBSERVATION OF PHYSICAL OBJECTS

Physical-trace evidence is a visible mark of some

past event or occurrence. It provides comparison between the results of surveys and observation. The results are so specific that they can show what brand of soft drink was consumed with a certain meal. An observer can record physical-trace data to discover things that a respondent could not recall accurately. The problem of untruthfulness or some other form of response bias is avoided.

CONTENT ANALYSIS
Content Analysis obtains data by observing and

analyzing the content or message of advertisements, union contracts, reports, letters, and the like. It involves systematic analysis as well as observation, to identify the specific information content and characteristics of the messages. This technique measures the extent of emphasis, or omission of emphasis, on any analytical category. Study of the content of communications is more sophisticated than simply counting the items; it requires a system of analysis to secure relevant data.

MECHANICAL OBSERVATION
In many situations the primary means of observation

is mechanical rather than human. In mechanical observation, videotape, cameras, traffic counters, and other machines record behavior. Some unusual observation studies have used a motion picture camera and time-lapse photography. Mechanical observational techniques may be used in research to help design store layouts and to resolve problems in moving people or objects through various spaces over time.

 The

various

mechanical

observational

techniques are
1) Television Monitoring 2) Monitoring Web Site Traffic 3) Optical Scanners and Bar Codes 4) Measuring Physiological Reactions

1) Television Monitoring
A.C. Nielsens System is the best-known business

research project involving mechanical observation and computerized data collection for estimating national television audiences. Nielsen uses a consumer panel and a sophisticated monitoring device called a PeopleMeter to obtain ratings for television programs in 18 countries. Electronic boxes are hooked up to television sets to capture important information on program choices, the length of viewing time, and the identity of the viewer. Nielsen is working on more sophisticated digital cable technology that uses a set-top box decoding system.

2) Monitoring Web Site Traffic

Hit: it occurs when a user clicks on a single page of a

website Page view: it indicates how many users visit each individual page on the website, and they may also be used to track the path or sequence of pages that each visitor follows. Jupiter Media Metrix and Nielsen//Net Ratings are companies that specialize in monitoring internet activity. The typical internet monitoring company installs a special tracking program on the personal computers of a sample of internet users who agree to participate in the research effort. For Ex: Nielsen//Net Ratings has its software installed on 225,000 computers, in homes and workplaces, in 26

3) Optical Scanners and Bar Codes

Mechanical observation can also be based on optical

character recognition or bar code systems such as the Universal Product Code (UPC). Systems based on the UPC bar-code technology have been implemented in factories, warehouses, and transportation companies to research inventory levels, shipments, and the like. Optical scanners in supermarkets provide a wealth of product and brand sales information.

4) Measuring Physiological Reactions

EYE TRACKING The gaze movements of the

eye are measured with an MONITORS eye camera or eye view monitor. Pupilometers It measures unconscious eye movements. Psychogalvanometers These devices track television viewers eye Voice Pitch Analyzers movements and focal points through an invisible infrared light beam that locks onto subjects eyes. Modern eye-tracking systems do not require keeping a

 Eye Tracking by SMI Bee Swarm TV

Commercial.mp4

4) Measuring Physiological Reactions

Eye Tracking Monitors A Pupilometer observes and

record changes in the PUPILOMETERS diameter of the pupils of the eyes. Psychogalvanometers Subjects are instructed to look at a screen on which an Voice Pitch Analyzers advertisements is projected. This research is based on the assumption that increased pupil size reflects positive attitudes toward and interest in the stimulus.

4) Measuring Physiological Reactions

Eye Tracking Monitors It measures Galvanic Skin

Response (GSR), or involuntary changes in the Pupilometers electric resistance of the skin. PSYCHOGALVANOMETE Use of this device is RS based on the assumption that physiological Voice Pitch Analyzers changes, such as increased perspiration, accompany emotional reactions to advertisements,

4) Measuring Physiological Reactions

measures emotional Eye Tracking Monitors reactions as reflected in physiological changes in a Pupilometers persons voice. Psychogalvanometers Abnormal frequencies in the voice, cause by changes in VOICE PITCH the autonomic nervous system, are measured with ANALYZERS sophisticated audio-adapted computer equipment. This technique does not require subjects to be surrounded by mazes of
It

EXPERIMENTAL RESEARCH

Independent Variables (IV) In an experiment, the independent variable is the variable that is varied or manipulated by the researcher. It is the variable that is controlled and manipulated by the experimenter. An independent variable is measured, manipulated, or selected by the experimenter to determine its relationship to an observed phenomenon. For example, an experiment to test the effects of a certain fertilizer, upon plant growth, could measure height, number of fruits and the average weight of the fruit produced. All of these are valid analyzable factors, arising from the manipulation of one independent variable, the amount of fertilizer.

Dependent Variables (DV)

In an experiment, a dependent variable is the factor

which is observed and measured to determine the effect of the independent variable, that is, that factor that appears, disappears, or varies as the experimenter introduces, removes, or varies the independent variable.
The DV is the criterion or standard by which the

results are judged. The factor manipulated by the researcher, and it produces one or more results, known as dependent variables. It is the variable that is measured by the

Independent Variables (IV)

Dependent Variables (DV)

1) It is the variable that is varied 1) It is the response that is or manipulated by the measured. researcher. 2) It is the presumed cause. 3) It is the antecedent. 4) It is the variable that is controlled and manipulated by the experimenter. 2) It is the presumed effect. 3) It is the consequent. 4) It is not manipulated, instead the dependent variable is observed or measured for variation as a presumed result of the variation in the dependent variable. Dependent variables can be influence by controlled variables.

Extraneous Variables This type of variable is one that may have an impact on the relationship between the independent and dependent variables. The two types of extraneous variables. Participant Variables: These extraneous variables are related to individual characteristics of each participant that may impact how he or she responds. These factors can include background differences, mood, anxiety, intelligence, awareness and other characteristics that are unique to each person. Situational Variables: These extraneous variables are related to things in the environment that may impact how each participant responds. For example, if a participant is taking a test in a chilly room, the temperature would be considered an extraneous variable. Some participants may not be affected by the cold, but others might be distracted or annoyed by the temperature of the room.

EXPERIMENTAL RESEARCH
A research method in which conditions are controlled

so that one or more variables can be manipulated in order to test a hypothesis. Experimentation is a research method that allows evaluation of causal relationships among variables. Purpose: To allow the researcher to control the research situation so that causal relationships among variables may be evaluated. The experimenter therefore manipulates a single variable in an investigation and holds constant all other relevant, extraneous variables.

 Experiments differ from other research methods in

terms of degree of control over the research situation. In typical experiment one variable (Independent Variable) is manipulated and its effect on another variable (Dependent Variable) is measured, while all other variables that may confound such a relationship are eliminated or controlled. The experimenter either creates an artificial situation or deliberately manipulates a situation. Once the experimenter manipulates the independent variable, changes in the dependent variable are measured. The essence of a behavioral experiment is to do something to an individual and observe his or her

Basic Issues in Experimental Design

Decisions must be made about several basic elements of an experiments:

1) Manipulation of the IV. 2) Selection and Measurement of the DV. 3) Selection and Assignment of test units. 4) Control over extraneous variables.

1) Manipulation of the Independent Variable

The experimenter has some degree of control over

the IV. Experimental Treatments are the manipulations of the IV being investigated. In business research, IV is often a categorical or classificatory variable, representing some classifiable or qualitative aspects of management strategy. IV can be Continuous Variable. A continuous variable is one for which, within the limits the variable ranges, any value is possible. The researcher must select the appropriate levels of IV for experimental treatments.

 Experimental

Groups: The group of subjects exposed to an experiment treatment. Control Groups: A group of subjects who are exposed to the control condition in an experiment that is, they are subjects not exposed to the experimental treatment. Several Experimental Treatment Levels: If the researcher wished to understand the functional nature of the relationship between several treatment levels, additional experimental groups might be studied. This type of design would allow the experiment to get a better idea of the impact. More than one Independent Variable: It is possible to assess the effects of more than one independent

2) Selection and Measurement of Dependent Variable

The dependent variable is so named because its value

is expected to be dependent on the experimenters manipulation of the independent variable. It is assumed that changes in the dependent variable are a consequence of changes in the independent variable. The experimenters choice of a dependent variable determines what type of answer is given to the research question. In some experiments the amount of time required for the effects to become evident should be considered in choosing a dependent variable. Productivity may be measured several months after

3) Selection and Assignment of Test Units

Test Units: Test Units are the subjects or entities whose responses to the experimental treatments are measured or observed. People and departments within organizations are the most common test units in most business behavioral experiments. Sample Selection Error and Random Sampling Error Sample Selection Error is an administrative procedural error caused by improper selection of a sample, thus introducing bias. Random Sampling error is a statistical fluctuation that

Randomization It is a procedure in which the assignment of subjects and treatments of groups is based on chance. Random assignment of subjects and treatments is one device for equally distributing, or scattering, the effects of extraneous variables. Randomization assures the researcher that repetitions of an experiment- under the same conditions- will show the true effects, if they exist. Random assignment of subjects allows the researcher to assume that the groups are identical with respect to all variables except for the experimental treatment.

Matching It is a procedure for the assignment of subjects to groups; it ensures each group of respondents is matched on the basis of pertinent characteristics. If the experimenter believes that certain extraneous variables may effect the dependent variable, he or she can make sure that the subjects in each group are matched on these characteristics.
Repeated Measures It is the experimental technique in which the same subjects are exposed to all experimental treatments in order to eliminate any problems due to subject differences.

4) Control Over Extraneous Variables

Establishing Control The major difference between experimental research and other research is the experimenters ability to hold certain conditions constant and to manipulate the treatment. When extraneous variables cannot be eliminated, experimenters may strive for constancy of conditions, A procedure in which subjects in experimental groups are exposed to situations identical except for differing conditions of the independent variable. If the experimenter method requires that the same subjects to be exposed to two or more experimental treatments, there is a possibility of order of

 Order

of presentation bias is an error in an experiment caused by subjects accumulating experience in the course of responding to multiple experimental treatments. Counterbalancing is a technique to reduce error caused by order of presentation by varying the order of experimental treatments for different groups. Blinding is a technique used to control subjects knowledge of whether o r not they have been given a particular experimental treatment. Double-blind Design is a technique in which neither the subjects nor the experimenter knows which are the experimental and which are the controlled conditions.

Problems Controlling Extraneous Variables In business experiments it is not always possible to control everything that should be controlled in order to have the perfect experiment. Business researchers may also be constrained by managements greater concern with efficiency than with research. Constant Experimental Error Constant error is an error that occurs in the same experimental condition every time the basic experiment is repeated. It occurs when the extraneous variables or the conditions of administering the experiment are allowed to have an influence on the dependent variables every time the experiment is repeated.

Demand Characteristics It refers to experimental design procedures that unintentionally hint to subjects about the experimenters hypothesis; situational aspects of an experiment that demand that the participant respond in a particular way. If participant recognize the experimenters expectation or demand, they are likely to act in a manner consistent with the experimental treatment. If an experimenters presence, actions, or comments influence subjects behavior or influence subjects to slant their answers to cooperate with an experimenter, the experiment has experimenters bias. Guinea Pig Effect is an effect on the results of an experiment caused by subjects changing their normal behavior or attitudes in order to cooperate

 Hawthorne Effect is an unintended effect on the

results of a research experiment caused by the subjects knowing that they are participants. To reduce demand characteristics, steps are taken to make it difficult for subjects to know what the researcher is trying to find out in the experiment. Experimenters are trained and experimental situations are designed to reduce cues that might serve as demand characteristics.

Ethical Issues in Experimentation

Experimental

research must address privacy, confidentiality, deception, accuracy of reporting, and other ethical issues. The question of subjects right to be informed, however, tends to be very prominent in experimentation. Debriefing is the process of providing subjects with all the pertinent facts about the nature and purpose of the experiment after the experiment has been completed. Another issue that may arise in business experiments is the subjects right to safety from physical and mental harm.

Fundamental Experimentation Designs

1) Basic Versus Factorial Experimental Designs

2) Laboratory and Field Experiments.

1) Basic versus Factorial Experimental Designs In basic experimental designs a single independent variable is manipulated to observe its effect on a single dependent variable. Factorial experimental designs allow for investigation of the interaction of two or more independent variables. 2) Laboratory and Field Experiments It is an experiment conducted in a laboratory or artificial setting to obtain almost complete control over the research setting. Tachistoscope is a device that controls the amount of time a subject is exposed to a visual image. Field Experiment is conducted in a natural settings, often for a long period of time

Tachistoscope

Issues in Experimental Validity

1) Internal Validity It indicates whether the independent variable was the sole cause of the change in the dependent variable. If the observed results are influenced by the confounding effects of extraneous factors, the researcher has problems making valid conclusions about the relationship between experimental treatment and the dependent variable. The six major types of extraneous variables that may jeopardize internal validity: 1) History 2) Maturation 3) Testing 4) Instrumentation 5) Selection 6) Mortality

2) External Validity It indicates the extent to which the results of the experiment are applicable in the real world. It is to check the ability of the experiment to generalize the results to the external environment. The experimental situation may be artificial and it may not represent the true setting and conditions in which the investigated behavior takes place. If the study lacks external validity, it will be difficult to repeat the experiment using different subjects, settings, or time intervals. Two major issues are: 1) Student Surrogates 2) Trade-offs

Classification of Experimental Designs

1) Basic Experimental Design a) Symbolism for diagramming Experimental Designs b) Pretest-posttest control Group Design c) Posttest-only Control Group Design d) Solomon Four-Group Design e) Compromise Experimental Designs f) Time-series Experimental Designs 2) Complex Experimental Design a) Completely Randomized Design b) Randomized Block Design c) Factorial Designs d) Latin Square Design

1) Basic Experimental Designs

1. 2.

3.
4. 5. 6.

It is an experimental design in which a single independent variable is manipulated in order to observe its effect on a single dependent variable. Symbolism for diagramming experimental designs Pretest-posttest control Group Design Posttest-only Control Group Design Solomon Four-Group Design Compromise Experimental Designs Time-series Experimental Designs

1) Symbolism for diagramming experimental designs

The classic work of Campbell and Stanley has aided many students in understanding the subjects of experimental designs. The following symbols will be used in describing the various experimental designs: X = exposure of a group to an experimental treatment O = observation or measurement of the dependent variable. If more than one observation or measurement is taken, subscripts (that is, O1, O2, R O etc. will be given to indicate temporal order. 3,

= random assignment of test units. It symbolizes that individuals selected as subjects for the experiment are randomly assigned to the experimental groups The diagrams of experimental designs that follow

 Following are the examples of quasi-experimental

designs: Quasi-Experimental designs do not qualify as true experimental designs because they do not adequately control for the problems associated with loss of external or internal validity. 1) One- Shot Design (After-Only Design) It is a quasi-experimental design in which a single measure is recorded after the treatment is administered and there is no control group. The one-shot design is diagrammed as follows: X O1 In this experiment we do not have any kind of comparison

2) One-Group Pretest-Posttest Design (Before-After Design) It is a quasi-experimental design in which the subjects in the experimental group are measured before and after the treatment is administered but in which there is no control group. The One-Group Pretest-Posttest Design is diagrammed as follows: O1 X O2 It offers a comparison of the same individuals before and after experimental treatment. The weaknesses of this experimental design may the time, cost and internal validity.

3) Static Group Design (After-Only Design with Control Group)

In the static group design, subjects are identified as either an

experimental group or a control group. The experimental group is measured after it has been exposed to the experimental treatment, and the control group is measured without having been exposed to the experimental treatment. The Static Group Design is diagrammed as follows: Experimental Group: X O1 Control Group: O2 The results of the static group design are computed by subtracting the observed results in the experimental group from the observed results in the control group. (O2 O1) A major weakness of this design is that it provides no

2) Pretest-Posttest Control-Group Design (Before-After with Control Group)

It is a true experimental design in which the experimental group is tested before and after exposure to the treatment, and the control group is tested at the same two times without being exposed to the experimental treatments. The Pretest-Posttest Control-Group Design is the classic experimental design, diagrammed as follows: R Experimental Group: R O 1 X O2 Control Group: O3 O4 The effect of the experimental treatment is calculated as follows: (O2 O1) (O4 O3) It is assumed that the effect of all extraneous variables will be same on both experimental and control groups.

3) Posttest-Only Control Group Design (After-Only with Control Group)

The Posttest-Only Control Group Design diagrammed as follows: R Experimental Group: R X O1 Control Group: O2 The effect of the experimental treatment is calculated as follows: O2 O1 It is assumed that the effect of all extraneous variables will be same on both experimental and control groups.

4) Solomon Four-Group Design

Combining the before-after with control group design and the after-only with control group design, the Solomon four-Group design provides a means for controlling the testing effect, as well as other sources of extraneous variation. The Pretest-Posttest Control-Group Design is the classic experimental design, diagrammed as follows: R Experimental Group1 : R O 1 X O2 Control Group 1 : O3 O4 R Experimental Group 2 : R X O5 Control Group 2 : O6

5) Compromise Experimental Designs

An approximation of an experimental design, which

may fall short of the requirements of random assignment of subjects or treatments to groups. There is no assurance that these naturally occurring groups are equivalent; the researcher has compromised because of the nature of the situation. When the experiment involves a longitudinal study, circumstances usually dictate a compromise with true experimentation.

6) Time-Series Experimental Designs

It is an experimental design utilized when experiments

are conducted over long periods of time. It allows researchers to distinguish between temporary and permanent changes in dependent variables. It is quasi-experimental design, because they generally do not allow the researcher full control over the treatment exposure or the influence of extraneous variables. The simple time-series design can be diagrammed as follows: O1 O2 O3 X O 4 O5 O6 The time-series design cannot give the researcher complete assurance that the treatment caused the

 One unique advantage of the time-series design is its

ability to distinguish temporary from permanent changes. An improvement on the basic time-series design is a time-series with control group design. For ex: many test markets utilize different geographic areas, which are similar demographically, as a basis for experimental control.

2) Complex Experimental Designs

1. 2. 3. 4.

It is an experimental design that uses statistical methods to isolate the effects of extraneous variables or to allow for manipulation of multiple independent variables. Completely Randomized Design Randomized Block Design Factorial Designs Latin Square Design

1) Completely Randomized Design (CRD)

It is an experimental design that uses a random process to

assign experimental units to treatments in order to investigate the effects of a single independent variable. Randomization of experimental units is the researchers attempt to control all extraneous variables while manipulating a single independent variable, the treatment variable. A pretest-posttest with control groups that replicates, or repeats, the same treatment on different experimental units is one of the example of CRD. Analysis of Variances (ANOVA) involves investigating the effects of one treatment variable on an interval-scaled or ratio-scaled dependent variable. In CRD designs, ANOVA is the appropriate form of statistical analysis when the

2) Randomized Block Design (RBD)

It is an extension of the CRD. The term RBD is derived from agricultural research,

where different levels of a treatment variable are applied to each of several blocks of land. Systematic differences in agricultural yields, due to the quality of the blocks of land, may be controlled in the RBD. In RBD, a single extraneous variable that might affect test units response to the treatment has been identified and the effects of this variable are isolated by being blocked out.

3) Factorial Designs
It is an experimental design that investigates the

interaction of two or more independent variables. It allows for testing the effects of two or more treatments at various levels. A Main effect is the influence on dependent variable by each independent variable The Interaction effect is the effect of combining these job characteristic variables. A major advantage of the factorial design is its ability to measure the interaction effect, which may be greater than the total of the main effects.

4) Latin Square Design

It is a Balanced, two-way classification scheme that

attempts to control or block out the effect of two or more extraneous factors by restricting randomization with respect to row and column effects. This design is named so because of the layout of the table that represents the design. In the 3 X 3 matrix below, each letter occurs only once in each row and only once in each column.
Order 1 1 Subject 2 3 A B C of 2 B C A Usag e 3 C A B

 The capital letters A, B, and C identify the three

treatments. The rows and columns of the table identify the confounding factors. The Latin square design manipulates one independent variable and controls for two additional sources of extraneous variation by restricting randomization with respect to row and column effects. A major assumption of the Latin square design is that interaction effects are expected to be minimal or nonexistent. Having an unequal number of levels for each factor may be a drawback that will eliminate the Latin square design as a possibility. A second limitation is the assumption that there is no interaction effect.