Assignment on

SUBMITTED TO:
MR. SAJID

SUBMITTED BY:
MUHAMMAD AKEEL MOHSEN MBS-08-04
 THE HYPOTHETICO-DEDUCTIVE METHOD
The seven steps involved in the hypothetico-deductive method of research
are as follows.

1. Observation
2. Preliminary information gathering
3. Theory formulation
4. Hypothesizing
5. Further scientific data collection
6. Data analysis
7. Deduction

Application Of The Hypothetico-Deductive Method In Organization

Problem or Dilemma
A firm runs a promotional campaign but sales do not increase.

Observation:

The marketing manager of a firm observes that firm runs a promotional

campaign but sales do not increase. The firm spent $1 million on a
promotional campaign for the purpose of increasing its sales but actually the
promotional campaign did not increase the sales. The marketing manager
wants to know that why the sales of the firm did no increases. “There is
surely a problem here” the marketing manager exclaims.

Preliminary information gathering:

The marketing manager collects the information through different sources.

He can collect the information from following sources.
• Information gathering through informal interviews
• Information gathering through formal interviews

Information gathering through informal interviews:

The marketing manager talks with some salespersons to get awareness of

this problem. He informally interviews them. Some says that the prices are
so the sales are not increased. Some says that there might be some problem
in quality. The marketing manager collected opinions of members of sales
force.

Information gathering through formal interviews:

After getting some awareness about the problem the marketing manager
formally conducted the interview of some stakeholders for the purpose of
collecting more information. These interviews disclosed some more views
about the problem. These are as follows;

• Promotional campaign was poorly executed.

• Retailers have insufficient stock to meet the demand of the customers.
• There may be some problem in distribution of product.
This information is collected primarily.

Formulating a theory:

Based on all this information, the marketing manager develops a theory

incorporating all relevant factors due to them the sales do not increase. The
marketing manager integrates all information in a logical manner. He
considered the effect of price, quality, distribution, on the sales. He also
considered the effect of ineffective promotional campaign. With the help of
this theory all the variables are tested.

Hypothesizing:

Hypothesizing is the logical step after theory formulation. From such theory,
the marketing manager generates the hypothesis for testing. One among of
them may be;
The promotion was poorly executed.
The effective promotion will increase the sales.
Promotion has great effect on sales.

Further scientific data collection:

The marketing manager develops a short questionnaire on the various

factors theorized due to them the sales does not increased. The
questionnaire includes these types of questions;

• Is the price of the product is appropriate?

• Is the quality of the product is up to the mark?
• Is the product is easily available at retail stores?
 • Is the promotional campaign was properly executed?

This questionnaire is used for collection of data.

Data analysis:

The marketing manager analyzes the data obtained through questionnaire to

see that due to which factors the sales do not increases in spite of heavy
promotional expenses. In data analysis the marketing manager uses both
quantitative and qualitative tools. Here he checks hypothesis that was
generated. Careful data analysis is necessary for valid conclusion.

Deduction:

Deduction is the process of arriving at the conclusion. Based on data analysis

the marketing manager deduces or concludes that promotional campaign
was poorly executed because data analysis shows that everything was right.
The price was reasonable, retailers have enough stock, and the quality was
also up to the mark. So, the conclusion is that the promotional campaign was
poorly executed. For the purpose of increasing the sales the promotional
campaign must be effective and it should attract the customers to buy
product.

In summary, these seven steps helps in;

• Identifying a problem.
• Resolving a problem.