ASSIGNMENTS

MB0034
Set 1

Research Methodology

Q-1. What are the advantages & disadvantages of primary data?

Ans: Primary sources are original sources from which the researcher directly collects
data that have not been previously collected e.g., collection of data directly by the
researcher on brand awareness, brand preference, brand loyalty & other aspects of
consumer behavior from a sample of consumers by interviewing them. Primary data are
first hand information collected through various methods such as observation,
interviewing, mailing etc.

Advantages of Primary Data.

• It is original source of data

• It is possible to capture the changes occurring in the course of time
• It is flexible to the advantages of researcher
• Extensive research study is based of primary data

Disadvantages of Primary Data.

• Primary data is expensive to obtain

• It is time consuming
• It requires extensive research personnel who are skilled.
• It is difficult to administer.

Q-2. In processing data, what is the difference between Median & Mode? What
are the advantages & disadvantages of Median?

Ans: Data in the real world often comes with a large quantum & in a variety of formats
that any meaningful interpretation of data cannot be achieved straightway. Social Science
researches, to be very specific, draw conclusions using both primary & secondary data.
To arrive at a meaningful interpretation on the research hypothesis, the researcher has to
prepare his data for this purpose. This preparation involves the identification for research
analysis is teamed as processing of data. Further selections of tools for analysis would to
a large extent on the results of this data processing.

Median:

Median is the middlemost item of a given series. In individual series, we arrange the
given data according to ascending or descending order & take the middlemost item as the
median. When two values occur in the middle, we take the average of these two values as
median. Since median is the central value of an ordered distribution, there occur equal
number of values to the left & right of the median.

Individual series:

Median = (N+1/2)th item

Mode:

Mode is the most repeating value of a distribution. When one item repeats more number
of times than other or when two items repeat equal number of times, mode is ill defined.
Under such case, mode is calculated by the formula (3 median – 2 mean).

Mode is widely used measure of central tendency in business. We speak of model wage
which is the wage earned by mot of the workers. Model shoe is the mostly demanded
shoe.

Merits of Median:

• Median is easy to calculate & simple to understand.

• When the data is very large median is the most convenient measure of central
tendency.

• Median is useful finding average for the data with open ended classes.

• The median distributes the values of the data equally to either side of the median.

• Median is not influenced by the extreme values present in the data.

• Values of the median can be graphically determined.

Demerits of Median:

• To calculate median, data should be arranged according to ascending order. This

is tedious when the number of items in a series is numerous.

• Since the value of median is determined by observation, it is not a true

representation of all the values.

• Median is not amenable to further algebraic treatment

• The value of median is affected by sampling fluctuation.

Q-3. What is the difference between a casual relationship & correlation? What
are the possible reasons for a correlation between two variables?

Ans: Economic & business variables are related. For instance, demand & supply of a
commodity is related to its price. Demand for a commodity increases as price falls.
Demand for a commodity decreases as its price rises. We say demand & price are
inversely related or negatively correlated. But sellers supply more of a commodity when
its price rises. Supply of the commodity decreases when its price falls. We say supply &
price are directly related or positively co-related. Thus, correlation indicates the
relationship between two such variables in which changes in the value of one variable is
accompanies with a change in the value of other variable.

According to L.R.Connor, “ if two or more quantities vary in sympathy so that

movements in the one tend to be accompanied by corresponding movements in the
others(s) they are said to be correlated.

W.I.King defined “Correlation means that between two series or groups of data, there
exists some casual connection.”

The definitions make it clear that the term correlation refers to the study of relationship
between two or more variables. Correlation is a statistical device, which studies the
relationship between two variables. If two variables are said to be correlated, change in
the value of one variable results in a corresponding change in the value of the other
variable. Heights & weights of a group of people, age of husbands & wives etc., are
examples of bi-variant data that change together.

Correlation and Causation

Although, the term correlation is sued in the sense of mutual dependence of two or more
variable, it is not always necessary that they have cause & effect relation. Even a high
degree of correlation between two variables does not necessarily indicate a cause & effect
relationship between them.

Correlation between two variables can be due to following reasons:

• Cause & effect relationship: Heat & temperature are cause & effect variable. Heat
is the cause of temperature. Higher the heat, higher will be the temperature.

• Both the correlated variables are being affected by a third variable. For instance,
price of rice & price of sugar are affected by rainfall. Here there may not be any
cause & effect relation between price of rice & price of sugar.

• Related variable may be mutually affecting each other so that none of them is
either a cause or an effect. Demand may be the result of price. There are cases
when price rise due to increased demand.
 • The correlation may be due to chance. For instance, a small sample may show
correlation between wages & productivity. That is higher wage leading to lower
productivity. In real life it need not be true. Such correlation is due to chance.

• There might be a situation of nonsense or spurious correlation between and two

variables. For instance, relationship between number of divorces & television
exports may be correlated. There cannot be any relationship between divorce &
exports of television.

The above points make it clear that correlation is only a statistical relationship & it does
not necessarily signify a cause & effect relationship between the variable.

Q-4. What are the types of correlation analysis? Explain each.

Ans: Types of correlation

Correlation can be:

• Positive or negative
• Linear or non-linear
• Simple, multiple or partial

Positive & Negative Correlation:

When values of two variables move in the same direction, correlation is said to be
positive. When prices rise, supply increases and when prices fall supply decreases. In this
case, an increase in the value of one variable on an average, results in an increase in the
value of other variable or decrease in the value of on one variable on an average results in
the decrease in the value of other variable.

If on the other hand, values of two variables move in the opposite direction, correlation is
said to be negative. When prices rise, demand decreases & when prices fall demand
increases. In this case, an increase in the value of one variable on an average results in a
decrease in the value of other variable.

Linear & Non-linear Correlation:

When the change in one variable leads to a constant ratio of change in the other variable,
correlation is said to be linear. In case on linear correlation, points of correlation plotted
on a graph will give a straight line. Correlation is said to be non-linear when the change
in one variable is not accompanied by a constant ratio of change in the other variable. In
case of non linear correlation, points of correlation plotted on a graph do not give a
straight line. It is called curvilinear correlation because graph of such correlation results
in a curve.
Simple, Partial & Multiple Correlations:

Simple correlation studies relationship between two variables only. For instance,
correlation between price & demand is simple as only two variables are studied in tjis
case. Multiple correlation studies relationship of one variable with many variables. For
instance correlation of agriculture production with rainfall, fertilizer use & seed quality is
a multiple correlation. Partial correlation studies the relationship of a variable with one of
the many variables with which it is related. For instance, seed quality, temperature &
rainfall are three variables, which determine yield of a crop. In this case, yield & rainfall
is a partial correlation.

Utility of Correlation:

Study of correlation is of immense practical use in business & economics.

• Correlation analysis enables us to measure the magnitude of relationship existing

between variables under study.

• Once we establish correlation, we can estimate the value of one variable on the
basis of the other. This is done with the help of regression equations.

• The correlation study is useful for formulation of economic policies. In

economics, we are interested in finding the important dependant variables on the
basis of independent variable.

• Correlation study helps us to make relatively more dependable forecasts.

Q-5. What is a scatter diagram and how does it help to read the correlation
between two variables?

Ans: Methods of studying correlation

Scatter Diagram:

This is a graphical method of studying correlation between two variables. In scatter

diagram , one variable is measured on the x-axis & the other is measured on the y-axis of
the graph. Each pair of values is plotted on the graph by means of dot marks. If plotted
points do not show any trend, two variables are not correlated. If the trend shows upward
rising movement, correlation is positive. If the trend is downward sloping, correlation is
negative.

Q-6. You are engaged to carry out a market survey on behalf of a leading Newspaper
that is keen to increase its circulation in Bangalore city, in order to ascertain reader habits
& interest. Formulate an outline of the Research report that you would submit at the
Research & briefly explain how you would present it.
 ASSIGNMENTS
MB0034
Set 2

Research Methodology

Q-1. What are the advantages & disadvantages of Secondary data?

Ans: These are sources containing data which have been collected and compiled for
another purpose. The secondary sources consists of readily compendia & already
compiled statistical statements & reports whose data may be used by researchers for their
studies. E.g., census reports, annual reports & financial statements of companies,
statistical statements, reports of Govt departments, annual reports of currency & finance
published by the Reserve Bank of India, statistical statements relating to Co operative &
regional banks, published by the NABARD, reports of the national sample survey
organization, reports of trade associations, publications of international organizations
such as UNO, IMF, World bank, ILO, WHO, etc., Trade & financial journals etc.

Advantages of Secondary data

Secondary data sources have some advantages:

• Secondary data, if available can be secured quickly & cheaply. Once their source
of documents & reports are located, collection of data is just matter of desk work.
Even the tediousness of copying the data from the sources can now be avoided,
thanks to Xeroxing facilities.

• Wider geographical area & longer reference period may be covered without much
cost. Thus, the use of secondary data extends the researchers space & time reach.

• The use of secondary data broadens the data base from which scientific
generalizations can be made.

• Environmental & cultural settings are required for the study.

• The use of secondary data enables a researcher to verify the findings bases on
primary data. It readily meets the need for additional empirical support. The
researcher need not wait the time when additional primary data can be collected.

Secondary data sources have some disadvantages:

The use of a secondary data has its own limitations.

 • The most important limitation is the available data may not meet our specific
needs. The definitions adopted by those who collected those data may be
different; units of measure may not match; & time periods may also be different.

• The available data may not be as accurate as desired. To assess their accuracy we
need to know how the data were collected.

• The secondary data are not up to date & become obsolete when they appear in
print, because of time lag in producing them. For example, population census data
are published two or three years later after compilation & no new figures will be
available for another ten years.

• Finally, information about the whereabouts of sources may not be available to all
social scientists. Even if the location of the source is known, the accessibility
depends primarily on proximity. For example, most of the unpublished official
records & compilations are located in the capital city & they are not within the
easy reach of researchers based in far off places.

Q-2. In processing data, what is the difference between Median & Mode? What
are the advantages & disadvantages of Mode?

Ans: Data in the real world often comes with a large quantum & in a variety of formats
that any meaningful interpretation of data cannot be achieved straightway. Social Science
researches, to be very specific, draw conclusions using both primary & secondary data.
To arrive at a meaningful interpretation on the research hypothesis, the researcher has to
prepare his data for this purpose. This preparation involves the identification for research
analysis is teamed as processing of data. Further selections of tools for analysis would to
a large extent on the results of this data processing.

Median:

Median is the middlemost item of a given series. In individual series, we arrange the
given data according to ascending or descending order & take the middlemost item as the
median. When two values occur in the middle, we take the average of these two values as
median. Since median is the central value of an ordered distribution, there occur equal
number of values to the left & right of the median.

Individual series:

Median = (N+1/2)th item

Mode:

Mode is the most repeating value of a distribution. When one item repeats more number
of times than other or when two items repeat equal number of times, mode is ill defined.
Under such case, mode is calculated by the formula (3 median – 2 mean).
Mode is widely used measure of central tendency in business. We speak of model wage
which is the wage earned by mot of the workers. Model shoe is the mostly demanded
shoe.

Merits of Mode:

• Mode is the most typical & frequented value of the distribution.

• It is not affected by extreme values.
• Mode can be determined even for series with open-ended classes.
• Mode can be graphically determined.

Demerits of Mode:

• It is difficult to calculate mode when one item repeats more number of times than
others.
• Mode is not capable of further algebraic treatment.
• Mode is not based on all the items of the series.
• Mode is not rightly defined. There are several formulae for calculating mode.

Q-3. What are the components & characteristics of a good research design?

Ans: It is important to be familiar with the important concepts relating to research

design. They are:

1. Dependent and Independent variables: A magnitude that varies is known as a

variable. The concept may assume different quantitative values, like height,
weight, income etc. Qualitative variables are not quantifiable in the strictest
sense of objectivity. However, the qualitative phenomena may also be
quantified in terms of the presence or absence of the attribute considered.
Phenomena that assume different values quantitatively even in decimal points
are known as ‘continuous variables’. But, all variables need not be continuous.
Values that can be expresses only in integer values are called ‘non-continuous
variables’. In statistical term, they are also known as ‘discrete variable’. For
eg., age is a continuous variable, whereas the number of children is a non-
continuous variable. When changes in one variable depend upon the changes
in one or more other variables, it is known as a dependent or endogenous
variable, and the variables that cause the changes in the dependent variable are
known as the independent or explanatory or exogenous variables. For eg. If
demand depends upon price, then demand is a dependent variable, while price
is the independent variable. And if, more variables determine demand, like
income and prices of substitute commodity, then demand also depends upon
them in addition to the own price. Then, demand is a dependent variable
which is determined by the independent variables like own price, income and
price of substitute.
2. Extraneous variable: The independent variables which are not directly related to
the purpose of the study but affect the dependent variable are known as
extraneous variables. For eg, if a researcher wants to test the hypothesis that
there is relationship between children’s school performance and their self-
concepts, in which case the latter is an independent variable and the former is
the dependent variable. In this context, intelligence may also influence the
school performance. However, since it is not directly related to the purpose of
the study undertaken by the researcher, it would be known as extraneous
variable. The influence caused by the extraneous variable on the dependent
variable is technically called as an ‘experimental error’. Therefore, a research
study should always be framed in such a manner that the dependent variable
completely influences the change in the independent variable and any other
extraneous variable or variables.

3. Control: One of the most important features of a good research design is to

minimize the effect of extraneous variable. Technically, the term control is
used when a researcher designs the study in such a manner that it minimizes
the effects of extraneous independent variables. The term control is used in
experimental research to reflect the restrain in experimental conditions.

4. Confounded relationship: The relationship between dependent and independent

variable is said to be confounded by an extraneous variable, when the
dependent variable is not free from its effects.

• Research hypothesis: When a prediction or a hypothesized relationship is tested

by adopting scientific methods, it is known as research hypothesis. The research
hypothesis is a predictive statement which relates a dependant variable & an
independent variable. Generally, a research hypothesis must consist of at least one
dependant variable & one independent variable. Whereas the relationship that are
not to be objectively verified are not classified as research hypothesis.

• Experimental & control groups: When a group is exposed to usual conditions

in an experimental hypothesis- testing research, it is known as ‘control group’. On
the other hand, when the group is exposed to certain new or special condition, it is
known as an ‘experimental group’. In the afore-mentioned example, the group A
can be called a control group & the group B an experimental one. If both the
groups may be called as’ experimental groups’. A research design may include
only the experimental group or the both experimental & control groups together.

• Treatments: Treatments are referred to the different conditions to which the

experimental & control groups are subject to. In the example considered, the two
treatments are parents with regular earnings & those with no regular earnings.
Likewise, if a research study attempts to examine through an experiment
regarding the comparative impacts of three different types of fertilizers on the
 yield of rice crop, then the three types of fertilizers would be treated as the three
treatments.

• Experiments: An experiment refers to the process of verifying the truth of a

statistical hypothesis relating to a given research problem. For instance,
experiment may be conducted to examine the yield of a certain new variety of rice
crop developed. Further, experiments may be categorized into two types namely,
absolute experiment & comparative experiment. If a researcher wishes to
determine the impact of a chemical fertilizer on the yield of a particular variety of
rice crop. Then it is known as absolute experiment. Meanwhile, if the researcher
wishes to determine the impact of chemical fertilizer as compared to the impact of
bio-fertilizer, then the experiment is known as a comparative experiment.

• Experiment Unit: Experimental units refer to the predetermined plots,

characteristics or the blocks, to which the different treatments are applied. It is
worth mentioning here that such experimental units must be selected with great
caution.

Q-4. What is the role of research in a successful business? On what aspects &
stages of the business is research useful?

Ans.

Q-5. To what extent can marketing related research be carried out for a consumer
product in- house through the field staff? What are the advantages & disadvantages
of such in-house studies?

Q-6. What is the significance of Sampling in research & what are the
characteristics of a good sample?

Ans: Meaning of Sampling.

A part of the population is known as sample. The method consisting of the selecting for
study, a portion of the ‘universe’ with a view to draw conclusions about the ‘universe’ or
‘population’ is known as sampling. A statistical sample ideally purports to be a miniature
model or replica of the collectivity or the population constituted of all the items that the
study should principally encompass, that is, the items which potentially hold promise of
affording information relevant to the purpose of a given research.

Sampling helps in time & cost saving. It also helps in checking their accuracy. But on the
other hand it demands exercise of great care caution; otherwise the results obtained may
be incorrect or misleading.

Advantages / Significance of Sampling:

Sampling has the following advantages.

• The size of the population:

If the population to be studies is quite large, sampling is warranted. However, the
size is a relative matter. Whether a population is large or small depends upon the
nature of the study, the purpose for which it is undertaken, & the time & other
resources available for it.

• Amounts of funds budgeted for the study:

Sampling is opted when the amounts of money budgeted is smaller than the
anticipated cost of census survey.

• Facilities:
The extent of facilities available – staff, access to computer facility &
accessibility to population elements- in another factor to be considered in
deciding to sample or not. When the availability of these facilities is limited,
sampling is preferable.

• Time:
The time limit within the study should be completed in another important factor to
be considered in deciding the question of sample survey. This, in fact, is a
primary reason for using sampling by academic & marketing researchers.

Characteristics of a good sample

The characteristics of a good sample are described below:

• Representative ness: A sample must be representative of the population.

Probability sampling technique yield representative sample.

• Accuracy: Accuracy is defined as the degree to which bias is absent from the
sample. An accurate sample is the one which exactly represents the population.

• Precision: The sample must yield precise estimate. Precision is measured by

standard error.

• Size: A good sample must be adequate in size in order to be reliable.