Research design brm-chap-2..

RESEARCH DESIGN
& Hypothesis
BRM :Unit :3 ( Part 1 & 2)
Dr. Shriram S. Dawkhar
M. Sc.(B.I.), MBA(Mktg.), M. Com. (Bus. Admin),
FDPM (IIM Ahmadabad)
Sinhgad Institute of Business Administration &
Research, Kondhwa, Pune.
ssdawkhar@gmail.com
© Shriram Dawkhar, May- 2010
(Updated - Nov-2019)

PREPARING RESEARCH
DESIGN
STEP-4

➢ The following order concerning various steps
provides a useful procedural guideline regarding
the research process.
1. Formulating the research problem
2. Literature survey (use of Library)
3. Formulation of hypothesis
4.Preparing the research design
5. Determining sample design

6. Collecting the data.(The evidence collected by
research process)
7. Analysis of data
8. Hypothesis Testing
9. Generalization and interpretation &
10. Preparation of the report or presentation of the result.
(i.e. formal write up or conclusions.)

Meaning
• Research design is overall plan or scheme
prepared by researcher for executing the research
study.
• It is an important stage in the process of
conducting research as it facilitates systematic &
smooth conduct of the research project.
• Acts as a guide to researcher for step by step
study.
• It is a roadmap : you can see where you are,
where you want to be at the completion of your
journey and can determine the best route to take to
get destination.

What Is Research Design?
Blueprint
Plan
Guide
Framework

What Tools Are Used in
Designing Research?

MindWriter
Project Plan
in Gantt chart
format
What Tools Are Used in
Designing Research?

RESEARCH DESIGN : Definitions
Research Design is the “framework” or “blueprint” for
collecting the information needed for your project in the
best possible way (Malhotra et al., 2002).
Research Design is the conceptual structure within which
research is conducted; it constitutes the blueprint for the
collection, measurement and analysis of data.

Research Design
• The research design is the master plan
specifying the methods and procedures for
collecting and analyzing the needed
information.
• The function of research design is to provide
frame work for the collection of relevant
evidence with minimal expenditure of effort,
time and money.

FUNCTIONS OF RESEARCH DESIGN
According to Black and Champion (1976-77), the
three important functions of research design are:
❖It provides blueprint.
❖It limits boundaries of research activity.
❖It enables investigation to anticipate potential
problems.

FEATURES / CHARACTERISTICS OF A
GOOD (robust ) RESEARCH DESIGN
✓It should be flexible.
✓It should be appropriate.
✓It should be efficient.
✓It should be economical.
✓It should minimize bias.
✓It should maximize the reliability of data collected.
✓It should give the smallest experimental error.

FEATURES OF A RESEARCH DESIGN
✓ It should yield maximum information.
✓It should provide the opportunity for considering different
aspects of the problem.
✓It should provide the means of obtaining information.
✓It should be appropriate with respect to the availability and
skills of the researcher and his staff.
✓It should be related to :
▪ the objective of the problem,
▪ the nature of the problem being studied,
▪ the availability of time and money for the research
work.

Types of Research Design
• Three traditional categories of research design:
• Exploratory
• Descriptive
• Causal
• The choice of the most appropriate design
depends largely on the objectives of the research
and how much is known about the problem and
these objectives.

Preparing the Research Design
Basic Research Objectives and Research Design
Research Objective Appropriate Design
To gain background information, to define terms, to clarify Exploratory
problems and develop hypotheses, to establish
research priorities, to develop questions to be
answered
To describe and measure marketing phenomena at a point Descriptive
in time
To determine causality, test hypotheses, to make “if-then” Causal
statements, to answer questions

Exploratory
Research
Causal
Research
Descriptive
Research
•Formulate problems more precisely
•Develop Hypotheses
•Establish priorities for research
•Eliminate impractical ideas
•Clarify concepts
•Literature search
•Experience survey
•Analysis of select cases
•Interviews
•Ethnographies
•Focus groups
•Describe segment characteristics
•Estimate proportion of people
who behave in a certain way
•Make specific predictions
•Longitudinal study
•Panels
•Sample Survey
•Provide evidence regarding causal
•Rule out all other explanations •Laboratory experiment
•Field experiment
Uses Types
Overview of Research Design

Research Design: 1) Exploratory Research
• Exploratory research design may be
defined as
• “ Flexible design which must provide
opportunity for considering different
aspect of the problems.”
• The name itself gives a vision of
exploring i.e. to discover new ideas, to
have insight into the problem and to
achieve clarity.

• Exploratory research is most commonly
unstructured, “informal” research that is
undertaken to gain background information
about the general nature of the research
problem.
• Exploratory research is usually conducted when
the researcher does not know much about the
problem and needs additional information or
desires new or more recent information.

• Exploratory research is used in a number of
situations: (Uses/Objectives of exploratory research)
❖Gain background information
❖Define concepts more clearly
❖Develop operational definitions
❖Clarify and formulate a more precise research
problem and hypotheses
❖Achieve new insights or ideas into a phenomenon
❖Establish research priorities

• A variety of methods are available to conduct exploratory
research:
• Secondary Data Analysis
• Experience Surveys
• Case Analysis
• Focus Groups
• Projective Techniques

• Secondary Data Analysis:
• The initial process of exploratory research to
look for availability of secondary data .
• The rationale behind searching secondary data
is that is does not make any sense to collect a
primary data on the subject, when data is
already available.
• It provides adequate information about the
problems in hand.
• Helps to identify the methods that have proved
successful or unsuccessful.

• Experience Surveys :
• Survey of people who have practical experience
with the problem to be studied.
• Usually conducted to gain additional
knowledge on a particular subject area from
the experts in that field.
• This surveys are conducted because a lot of
vital information about a research area will not
be freely available.
• When adequate secondary data is difficult to
obtain.

• Experience Surveys:
• What is being done?
• What has been tried in the past without success?
With success?
• What are the change producing elements ?
• What problem areas & barriers can be seen?
• What are the priority areas?

• Focus Groups:
• Every individual has different perceptive
values & ideas. If we gather all these ideas
together, a new insight or new idea will
emerge from them. It would be accepted
universally.
• Focus group is the group of people or
participants led by an expert monitor.
• Usually used in the a new product
concept, a programme for improving new
production process, an employee
motivation programme.© Shriram Dawkhar, May- 2010

• Focus Groups:
• The group is usually homogeneous, such
as a group of students, an athletic team,
etc.
• This method can also be used to find out
what people think about a product or an
advertisement.

Focus Groups
Group discussion
6-10 participants
led by Moderator
90 minutes-2
hours

• Projective techniques:
• is the psychological testing of a group or
individual, through a thematic
appreciation test, role plays by showing
video clips, providing case studies etc.

Research Design: 1)Exploratory Research
• Exploratory Research:
• Focus on discovery of ideas & generally based
on secondary data.
• Typically little prior knowledge of the subject.
• E.g.: 1) What new products should be
developed?
2) How our service Can be improved?
3) What product appeal will be effective in
advertising?

• Descriptive research: “Research design In
Which the major emphasis is on determining
the frequency with which something occurs or
the extent to which two variables covary”
• Unlike exploratory studies, descriptive studies
comes under formal research, where the objectives
are clearly established.
• It tries to understand or determine the
characteristics associated with subject population
such as age, sex, occupation, educational level,
income etc.
Research Design: 2)Descriptive research

• Descriptive research provides answers to
the questions of:
– Who
– What
– Where
– When
– How
• We cannot answer the question Why?
conclusively
Research Design: 2)Descriptive research

When to use ?
• Descriptive research is an appropriate
choice when the research aim is to identify
characteristics, frequencies, trends,
correlations, and categories.

Research Design: Descriptive Research
• Descriptive Research:
• Well structured study.
• Researcher has no control.
• The purpose is to provide an accurate snapshot of
some aspect of market environment.
• E.g.: 1) How should a new product be distributed ?
(How do people now buy similar products ?)
2) What should be the target segment ?
(What kind of people now buy the products?)

Descriptive Research is designed to provide further
insight into the research problem by describing the
variables of interest.
The major purpose of descriptive research is the
description of the state of affairs as it exist at present.

✓Descriptive research studies are aimed at
describing or portraying the characteristics of a
particular individual, group or a situation.
e.g. users of a product with different age, sex, education, etc.
✓It is also concerned with specific predictions, with
narration of facts and characteristics concerning
individual, group or situation.
e.g. sales of a company's product in each of the next five
years
(Objectives)

✓The study offers the researcher a profile or
description of relevant aspects of the phenomenon.
✓To estimate the proportion of people in a specified
population who behave in a certain way
e.g.: shopping persons who buy from a particular shop.
✓To determine whether certain variables are associated
e.g.. income and usage of a product.
(Objectives)

Major Types of Descriptive Studies
Descriptive
Studies
Consumer
Perception
And Behavior
Studies
Image
Product Usage
Advertising
Pricing
Market Characteristic
Studies
Distribution
Competitive
Analysis
Market
Potential
Market
Share
Sales
Analysis
Sales Studies

Sample
Surveyed at T1
Sample
Surveyed at
time T1
Same Sample
also Surveyed
at time T2
T1 T2
Cross Sectional
Design
Longitudinal Design
Time
Cross Sectional vs. Longitudinal
Designs

❑Classification of descriptive research studies:
– Cross sectional studies: they measure the
population at only one point of time.
– Longitudinal studies: they repeatedly measure the
same population over a period of time.
DESCRIPTIVE RESEARCH DESIGN

Cross-Sectional Descriptive Studies
Most common and most familiar.
Uses a representative sample of elements from a
population, often a sample survey.
Characteristics of the elements are measured once, i.e. it
provides a snapshot of the variables under investigation.

Longitudinal Descriptive Studies
 Involves panel, i.e. a fixed sample of elements or respondents,
which are repeatedly measured over time, i.e. it provides a movie
of the variables under investigation.
Panel members are relatively constant over time.
Continuous panel : A fixed sample of respondents who are
measured repeatedly over time with respect to the same
variables.
Discontinuous panel :A fixed sample of respondents who
are measured repeatedly over time, but on variables that
change from measurement to measurement

3) Causal Research
(Experimental)

Research Design: Causal Research(Experimental)
• Research that attempts to explain the relationship
between two variables (if A causes B to occur).
• Causality may be thought of as understanding a
phenomenon in terms of conditional statements
of the form “If x, then y.”
• Causal relationships are typically determined by
the use of experiments, but other methods are
also used.
• The causal study is made to investigate the cause
and effect relationship between the variables.

Causality
• Everyone is familiar with the general notion
of causality,
• the idea is that one thing leads to the
occurrence of another.
• Does Factor X cause factor Y to happen?
• E.g. Does strong motivation leads to / cause
effective teamwork.

EXPERIMENTAL RESEARCH DESIGN
Experimental research design is concerned with making
experiments to find out the cause-effect relationship of
variables under study.
The main purpose of exp. design is to test a causal
hypothesis. Causal hypothesis is a statement that states
the cause and effect relationship between two or more
variables.
Thus experimental research design is also known as
hypothesis-testing or causal research design.
The premise of the design is that something (an
independent variable) directly influences the behavior of
something else ( the dependent variable).

Causal Research:Experiments
• An experiment is defined as manipulating (changing
values/situations) one or more independent variables to see
how the dependent variable(s) is/are affected, while also
controlling the affects of additional extraneous variables.
• Independent variables: those over which the researcher has
control and wishes to manipulate i.e. package size, ad copy,
price.
• Dependent variables: those over which the researcher has
little to no direct control, but has a strong interest in testing
i.e. sales, profit, market share.
• Extraneous variables: those that may effect a dependent
variable but are not independent variables / not under study.

concomitant variation
• extent to which X and Y occur together or
vary together in a way predicted by the
hypothesis under consideration.
• internal validity: measure of accuracy of an
experiment; measures whether manipulation
of independent variables actually caused
effects.
• External validity: determines whether cause-
and-effect relationships found in experiment
can be generalized.

A control group
• A control group is used as a baseline measure.
• The control group is identical to all other items or
subjects that you are examining with the exception
that it does not receive the treatment or the
experimental manipulation that the treatment group
receives.
• For example, when examining test tubes for
catalytic reactions of enzymes when added to a
specific substrate, the control test tube would be
identical to all other test tubes with the exception of
lacking the enzyme.

The treatment group
• The treatment group is the item or subject
that is manipulated.
• In our example, all other test tubes
containing enzyme would be part of the
treatment group.

So in conclusion………
• The treatment group consists of participants
who receive the experimental treatment whose
effect is being studied.
• The control group consists of participants who
do not receive the experimental treatment being
studied. Instead, they get a placebo (a fake
treatment; for example, a sugar pill); a
standard, non experimental treatment (such as
vitamin C, in the zinc study); or no treatment at
all, depending on the situation.

EXPERIMENTAL DESIGNS
One of the simplest experimental designs is the ONE
GROUP PRETEST-POSTTEST DESIGN--EXAMPLE?
One way to examine Efficacy of a Drug:
O1 X O2
Measure DRUG Measure
Patients’ Condition Experimental Patients’ Condition
(Pretest) Condition/ (Posttest)
intervention
◆ RESULT: Significant Improvement from O1 to O2
(i.e., sig. O2 - O1 difference)
◆ QUESTION: Did X (the drug) cause the
improvement? © Shriram Dawkhar, May- 2010

David Hume would have been tempted to say “YES.”
He was a positivist and wanted to infer causality
based on high correlations between events.
But such an inference could be seriously flawed. Why?
– Have only shown “X” is a SUFFICIENT condition for
the change “Y” (i.e., presence of X is associated with
a change in Y).
◆ But, is “X” also a NECESSARY condition for Y?
– How do you verify the latter?
◆ By showing that the change would not have
happened in the absence of X—using a CONTROL
GROUP.
EXPERIMENTAL DESIGNS

◆ CONTROL GROUP Simulates Absence of X
Pretest Post-Test Control Group Design--Suppose
random assignment (R) was used to control confounding
variables:
R Exp. Group O1E X O2E
R Ctrl Group O1C O2C
◆ RESULT: O2E > O1E & O2C Not> O1C
QUESTION: Did X cause the improvement in Exp.
Group?

Causality tested through…
Lab experiments – Festinger and Katz (1953) have
defined a laboratory experiment as one in which the
investigator creates an artificial situation with the exact
conditions he wants to have and in which the researcher
controls some variables and manipulates other variables.
• All variables are controlled
• Influence of external variables minimized
• Internal validity maximized
TYPES OF EXPERIMENTS

Examples of Causal Studies in the Lab
• Kenstar home appliance company wishes to
test three campaign approaches.
• Marketers prepare three different T.V. ad
versions for participants to evaluate.
• Participants were invited (and paid) to view a
TV program at the researcher’s offices with
one of the ads inserted into the program.
• Participants rated the ads for attitude and
recall

Field experiments – It is a study carried out in a more or
less realistic situation or field where the researcher
manipulates one or more independent variables under
maximum possible controlled conditions.
• Most credible results
• Influence of ‘real world’ settings taken into account
• External validity maximized
TYPES OF EXPERIMENTS

Examples of Causal Studies in the Field
• P&G wishes to test the germ killing capabilities
of two agents added to bar soap. (The germs
are thought to cause body odor.)
• Two groups of randomly selected people are
assigned to use one of the soap formulations
for two weeks.
• After the test period, participants rate the
deodorant effectiveness of the soap they used
on a scale along with other measures of attitude
and preference relative to their old soaps

Test Marketing
• Test marketing is the phrase commonly used to
indicate an experiment, study, or test that is
conducted in a field setting.
• Two broad classes:
• To test the sales potential for a new product or
service
• To test variations in the marketing mix for a
product or service

☺ The Principle of Replication:
 The term replication has been derived from the fusion of
two words – ‘repetition’ and ‘duplication’.
 Replication refers to the deliberate repetition of an
experiment, using identical procedure, which may
sometimes be with a set of subjects in a different setting and
at different time periods.
BASIC PRINCIPLES OF EXPERIMENTAL
RESEARCH DESIGN

RESEARCH DESIGN
☺ The Principle of Randomization:
 Randomization refers to a technique in which each member
of the population or universe has an equal and independent
chance of being selected as sample.

RESEARCH DESIGN
☺ The Principle of Local Control:
 A design to be statistically and experimentally sound must
possess the property of local control.
 According to this principle, we first divide the field into
several homogeneous parts, known as blocks (blocking) and
then each such block is divided into parts equal to the
number of treatments. Then the treatments are randomly
assigned to these parts.

Following are the areas where
experiments are predominantly:
• Product design: which product a consumer
would buy most.
• Package design: which attractive package a
producer should design based on the available
literature.
• Pricing Policies: the price elasticity of demand
can be better tested with the help of
experiments. Experiments are often used for
measuring this aspect pricing.
• Promotion Policies: the promotional policies
have been very widely explored through
experimentation as compared with the other
areas of marketing.

HYPOTHESIS
➢ A hypothesis is an assumption about relations
between variables.
➢ Hypothesis can be defined as a logically conjectured
(guessed) relationship between two or more variables
expressed in the form of a testable statement.
Relationships are conjectured on the basis of the
network of associations established in the theoretical
framework formulated for the research study.

HYPOTHESIS
➢ Research Hypothesis is a predictive statement that
relates an independent variable to a dependant
variable.
Hypothesis must contain at least one independent
variable and one dependant variable.

Types of Variables
Explanatory vs Extraneous Variable
The variables selected for analysis are
called explanatory variables and all other
variables that are not related to the purpose
of the study but may affect the dependant
variable are extraneous.

Dependant vs Independent
Variable
Dependent Variable:
If a variable depends upon or is a
consequence of other variable, it is termed as
dependent variable.
Eg: If we say Height is depends upon Age,
Then Height is a Dependent Variable &
Age is an independent variable.

Dependant vs Independent
Variable
• Independent Variable:
The variable that is antecedent to the
dependent variable is called as an
independent variable.
Eg: If Height depends upon the individuals
Gender, Then
Height is a Dependent Variable &
Gender is an independent variable.

HYPOTHESIS
➢ Hypothesis are tentative, intelligent guesses as to the
solution of the problem.
➢ Hypothesis is a specific statement of prediction. It
describes in concrete terms what you expect to happen
in the study.
➢ Hypothesis is an assumption about the population of
the study.
➢ It delimits the area of research and keeps the
researcher on the right track.

Characteristics of a Good Hypothesis:
• Simple vs. Complex
• Specific vs. Vague
• Stated In Advance vs. After-the-Fact
• Inductive Vs deductive hypotheses
• Conceptually Clear.
• Related to available technique.

Simple vs. Complex
• Simple hypothesis contains one predictor
and one outcome variable –
• E.g. A sedentary lifestyle is associate with
increased risk of diabetes.
• Complex - more than one predictor
variable.
• E. g. a sedentary lifestyle and alcohol
consumption are associated with an
increased risk of diabetes.

Specific vs. Vague
• Specific hypothesis leaves no confusion about
what the question is
• Can be long but it is clear about what is being
collected, what the variables are and it allowed the
types of statistics that are going to be done.
• Eg. –
– "Eating more makes people fat".
– "Eating more than 3 meals for 3 month, will
increase the weight of individual adult by 8
kilogram.

Stated In Advance vs. After-the-
Fact
• In advance - provides a primary objective
for the research and creates a basis for
interpreting study results.

Characteristics of a Good
Hypothesis
• A good hypothesis is not only testable, that is,
something you can actually test for in your
study, but is must also be falsifiable.
– We want so badly to find great things, and for our study to turn out
exactly as we expect it to, that we tend to ignore the possibility that we
don’t know everything and that no prediction is failsafe when it comes
to humans.

Characteristics of a Good Hypothesis
◼ Hypothesis should be clear and precise.
◼ Hypothesis should be capable of being
tested.
◼ Hypothesis should state relationship
between variables, if it happens to be a
relational hypothesis.
◼ Hypothesis should be limited in scope
and must be specific.
Continued

◼ Hypothesis should be stated as far as
possible in most simple terms.
◼ Hypothesis should be reliable with
most known facts.
◼ Hypothesis should be tested within a
reasonable time.
◼ Hypothesis must explain the facts that
gave rise to the need for explanation.
Characteristics of a Good Hypothesis

Null and Alternate Hypothesis
• Null Hypothesis: states there is no
association between independent and
dependent variables..
• Alternative Hypothesis: states that there is
an association between variables.
• One-sided/Two-sided: one sided states that
there is a direction to the association, two
sided states that there is an association but
does not specify any direction.

Examples
• Question: Will advertisement attract attention?
• Hypothesis: Advertisement attracts the
attention of customers.
• ( the most likely answer of your problem)
• E.g.1) Illiteracy is the cause of unemployment.
• 2) Children of poor parents are
unemployed.

PROBLEM (VS) HYPOTHESIS
➢ Hypothesis is an assumption, that can be tested
and can be proved to be right or wrong.
➢ A problem is a broad question which cannot be
directly tested. A problem can be scientifically
investigated after converting it into a form of
hypothesis.

Descriptive Hypothesis
These are assumptions that describe the
characteristics (such as size, form or
distribution) of a variable. The variable may
be an object, person, organisation, situation
or event.
Examples:
➢“Public enterprises are more amenable for
centralized planning”.
TYPES OF HYPOTHESIS

 Relational Hypothesis [Explanatory Hypothesis]
These are assumptions that describe the
relationship between two variables. The
relationship suggested may be positive, negative or
causal relationship.
Examples:
➢ “Families with higher incomes spend more for
recreation”.
Causal Hypothesis state that the existence of or
change in one variable causes or leads to an effect
on another variable.
The first variable is called the independent variable
and the latter is the dependant variable.

 Null Hypothesis
❖ When a hypothesis is stated negatively, it is
called null hypothesis. It is a ‘no difference’, ‘no
relationship’ hypothesis.
❖ ie., It states that, no difference exists between the
parameter and statistic being compared to or no
relationship exists between the variables being
compared.
It is usually represented as HO or H0 .
Example:
➢ H0: There is no relationship between a family’s
income and expenditure on recreation.

Alternate Hypothesis
It is the hypothesis that describes the
researcher’s prediction that, there exist a
relationship between two variables or it is the
opposite of null hypothesis. It is represented
as HA or H1.
Example:
HA: There is a definite relationship
between family’s income and expenditure on
recreation.

FORMS OF RELATIONSHIPS
NON-DIRECTIONAL
• There IS a relationship
between
• X & Y
• X….linked….Y
Vs DIRECTIONAL
• If X goes up, Y ….
• or
• As X increases, Y…
• X = Independent
• variable
• Y = Dependent variable

DIRECTIONAL HYPOTHESES-
“X” causes “Y” to change
• If X changes
• (increases
• decreases)
• then
• Y will ______
• (increase or
• decrease)
• a causal link

DIRECTION OF RELATIONSHIP
• If X increases, Y increases
A POSITIVE relationship
• If X increase, Y decreases
A NEGATIVE or INVERSE relationship
• As X changes, Y does NOT change...>
No Change...>NO RELATIONSHIP

NON-DIRECTIONAL HYPOTHESES
- the weakest form
• There Is
• a relationship
• between X & Y
– non-causal
– correlational
statement
– X…..Y

Positive correlation
• When the values of
• TWO variables
• “go together”
• or
• values on X & Y
• change in SAME
• DIRECTION 0
10
20
30
40
50
60
70
Hr
work
Earnin
gs
CORRELATIONAL RELATIONSHIP

Negative Correlation
• When the values of
two variables
• CO-VARY
• in Opposite direction
• (as one goes up,
• the other goes down)

 Discussions with colleagues and experts about the
problem, its origin and objectives in seeking a
solution.
 Examination of data and records for possible trends,
peculiarities.
 Review of similar studies.
 Exploratory personal investigation / Observation.
 Logical deduction from the existing theory.
 Continuity of research.
 Intuition and personal experience.
SOURCES OF HYPOTHESIS

FUNCTIONS OR ROLE OF HYPOTHESIS
 It gives a definite point to the investigation and
provides direction to the study.
 It determines the data needs.
 It specifies the sources of data.
 It suggests which type of research is likely to be more
appropriate.
 It determines the most appropriate technique of
analysis.
 It contributes to the development of theory.

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