Chapter I

Question Answers
Q1: Define Research? What are the characteristic of Research?
A: Meaning
Research is a systematic investigation to search for new facts in any branch of
knowledge. Research helps to arrive at new conclusions. It enables to find solutions to
certain problems.
Research is often referred to as scientific inquiry into a specific problem or situation.
This is because; the search for facts needs to be undertaken systematically and not
arbitrarily. The systematic approach to research enables the research to search for facts in
a rational manner and to arrive at logical conclusions, whereas, the arbitrary approach
attempts to find solution to problems on ones belief and imagination.

Definitions
Research is any organised inquiry designed and carried out to provide information
for solving a problem

William C. Emory, Business Research Method

Research is a careful critical inquiry or examination in seeking facts or principles;

diligent investigation in order to ascertain something.

The Websters Dictionary

Research is the process of systematically obtaining accurate answers to significant

and pertinent questions by the use of scientific method for gathering and interpreting
information.

V. Clover & H. Balsey

Nature & Characteristics of Research

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1. Scientific Method:
Research uses scientific method to find facts or to provide solutions to specific
problems. The researcher needs to follow a systematic procedure to conduct research.
There is a set of procedures that have been tested over a period of time and are thus
suitable to use in research. This means each step in the research procedure must
follow other.
2. Objective and Logical:
The scientific research is objective and logical in nature. Research is based on valid
procedures and principles.
There is a need to collect relevant, accurate and objective data to investigate into the
research problem. Researchers need to make every possible effort to avoid bias in
data collection. Whenever required, the researcher needs to systematically verify the
findings and conclusions.
3. Applied and Basic Research:
The research can be broadly classified into two broad groups:
Applied Research
Basic Research
Applied research is designed to solve practical problems of the modern world, rather
than to acquire knowledge for knowledges sake. The goal of applied research is to
improve the human condition.
Basic or fundamental research is driven by a scientists curiosity or interest in a
scientific question. The main goal of basic research is to expand mans knowledge.
4. Empirical Nature of Research:
Research can be based on direct experience or observation by the research. Empirical
research is undertaken to study certain situations or events based on experiments,
observation and situations. In empirical research, the researcher develops a
hypothesis and then collects data to prove it or to disprove it.
5. Generalisation:
Research findings can be applied to larger population. A researcher can conduct a
research on a sample of respondents that represent the universe. The sample selection
must be done systematically so that it properly represents the whole population or the
universe. Hence, generalization takes place when research findings are based on
sample responses.
6. Controlled Nature of Basic Research:
In real life experience there are many factors that affect an outcome. When an event
is tested in research, due to the broader nature of factors, some factors are taken as
controlled factors while others are tested for possible effect.
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It is difficult to perform controlled experiments in case of social science research,

although to a limited extent laboratory experiments are possible in social sciences as
well.
7. Development of Principles and Theories:
A systematic research helps to develop new principles and theories. Such principles
and theories can be useful to several organisations to manage and deal with people
and things in a better way. The general laws or theories developed through research
may enable us to make reliable predictions of events, which have not yet occurred.
8. Multipurpose Activity:
Research is a multipurpose activity. It helps to discover new facts or verify old facts.
It helps to predict future events, but also may help to control such events. It also
helps to develop new scientific tools, concepts and theories, which would facilitate
reliable and validate study of human behaviour and other aspects.
The above mentioned points are Characteristics and Nature of Research.

Q2: Explain the need of research in business & social science.

A: Meaning
Research is a systematic investigation to search for new facts in any branch of
knowledge. Research helps to arrive at new conclusions. It enables to find solutions to
certain problems.
Need and Importance of Research in Business
Business organisations can gain significantly with the help of research. The research and
development to develop new products, improve the design and quality of the existing
ones, to reduce costs. The marketing research helps to solve marketing problems relating
to price, promotion, physical distribution, packaging, positioning, and so on.
The need and importance of research in business is stated as follows:
1. Product Development.
Through marketing research, a business firm can identify the customer requirements,
it is possible to design new models or modify existing products to satisfy the
customers. This helps the product to be accordingly designed by the market.
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2. Reduction in costs
Research in business firms helps to reduce costs, the research may indicate the area
where high costs are involved. It may be possible for the firm to cut down the costs in
certain areas which will improve the overall efficiency of the organisation.
3. Marketing mix decisions
Product decisions The first thing you need, if you want to start a business, is a
product. Therefore Product is also the first variable in the marketing mix. Product
decisions are the first decisions you need to take before making any marketing
plan. A product can be divided into three parts. The core product, the augmented

product and the tertiary product.

Pricing decisions Pricing of a product depends on a lot of different variables and
hence it is constantly updated. Major consideration in pricing is the costing of the
product, the advertising and marketing expenses, any price fluctuations in the
market, distribution costs etc. Many of these factors can change separately. Thus
the pricing has to be such that it can bear the brunt of changes for a certain period
of time. However, if all these variables change, then the pricing of a product has to

be increased and decreased accordingly.

Place decisions Place refers to the distribution channel of a product. If a product
is a consumer product, it needs to be available as far and wide as possible. On the
other hand, if the product is a Premium consumer product, it will be available only
in select stores. Similarly, if the product is a business product, you need a team
which interacts with businesses and makes the product available to them. Thus the
place where the product is distributed, depends on the product and pricing

decisions taken by a firm.

Promotions decisions Promotions in the marketing mix includes the complete
integrated marketing communications Promotions are dependent a lot on the
product and pricing decision. What is the budget for marketing and advertising?
What stage is the product in? If the product is completely new in the market, it
needs brand / product awareness promotions, whereas if the product is already

existing then it will need brand recall promotions.

4. Customer relationship.
Marketing research may help the firm to develop good relations. Research can help
the firm to collect valuable inputs. Based on the input, the firm can adopt various
customer relationship techniques such as one to one marketing, effective after sales
services etc.
5. Dealer relationship
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Dealer relationships are virtual for survival and success of business organisation.
Marketing research enables a business firm to maintain good relationship with the
dealers. Through research the firm can get feedback from dealers regarding their
expectations and accordingly take appropriate decisions.
6. Corporate image
Firms need to maintain and enhance corporate image in minds of stake holders,
dealers, customers, employees and others. Consumer research enables the firm to
obtain a feedback on customer requirements and expectations and accordingly the
company will take right efforts to satisfy the customer and maintain good image in
their minds.
7. Competitive advantage
Through research a company can take proactive decisions. These decisions can confer
competitive advantage to the firm.
Also through research the firm can find out strengths of the competitors, based on
which the firm can improve the market offering.
8. Human resource plans and policies.
Research many be undertaken to frame effective HR plans and policies in respect of
Recruitment and selection
Training to employees
Performance appraisal
Promotion and transfers
Compensation plans, etc.
9. Financial management.
Research may be undertaken for efficient management of finance. Financial
management covers two broad areas
Sources of funds
Application of funds
10. Market expansion
With the help of marketing research inputs, the company can identify the market
which has good potential. Entry in new markets can be undertaken with the help of
appropriate marketing activities such as promotional activities publicity, advertising,
sales promotion etc.
Need and Importance of Research in Social Sciences.
Social sciences refer to business, commerce, demography, psychology, sociology, etc.
Research in social sciences arena deals with the behaviour of people in their different
roles, such consumers, competitors, producers, executives, salespersons, leaders,
workers, followers, teachers, students, opinion-makers, etc. The importance that social
5

science research wields today is immeasurable and enlarging. As social, business and
economic problems abound, the significance of social research gets enhanced as it
provides workable solutions. The following points bring out the significance of research
in social sciences
1. Modifies social behaviour
Social behaviour which is studied, analysed and steps needed to modify the same to
achieve certain broad goals. All our social problems could be attributed to certain
societal behaviour. So, by modifying the same in the right lines, social good is
achieved. Social research collects relevant data on social behaviour, analyses it and
recommendations are listed. Based on recommendations of social researchers, steps
can be taken by concerned authorities to modify societal behaviour
2. Development of methodology
Development of methodology to deal with social issues is one of the contributions of
social research. Executive stress, worker ethics, leadership style, child labour, women
illiteracy, drug addiction, labour absenteeism, etc. are social issues related to
organisations, labour units, and, such other social groups. To deal with these issues
appropriate methodology is needed. Social research provides the same. With reference
to above context the methodology would involve following steps:

Identification of problems
Preparation of research design.
Collection of data
Processing of data
Analysis for interpretation of data
Recommendations
Reporting to higher authorities for suitable actions

3. Social Development.
Social research contributes to societal development. The research develops scientific
temper. Creativity and innovation are developed Basic and applied new knowledge is
developed. All this adds to up-gradation of society. Knowledge is power. And that
power is powered by research.
1. Social Welfare

Social research is generally normative emphasizing what is good for the society. By
stating, what is and what is not good for the economy, for the industry, for the
consumers, for the students, for the stock-market and the like, social research helps to
contribute to social welfare.
5. Formulation of New Theories
Formulation of new theories and revaluation of already accepted theories are
attempted by social research. There are several theories on leadership, motivation,
human attitude and behaviour and so on. All these theories help designing suitable
packages for societal behavioural up-liftment.
6. Social Planning and Control.
Social research is a tool for social planning, prediction and control. Any constructive
action need to be planned, outcome predicted and deviation of actual from the
desirable predicted outcome need to be controlled. Social research aids in designing
appropriate models of social planning, prediction and control.
7. Economic Planning.
Social science research can be of immense use in economic planning in given society.
It requires basic data on aspects of our society and economy, resource endowment and
the needs, hopes and problems of people etc. Economic planning is undertaken to
achieve certain objectives such as

To bring about regional development

To make optimum use of available resources.
To bring out self-reliance.
To generate employment, etc.

8. Prediction of Events in Society.

Research can be undertaken to predict future events in society and their impact. For
example, to find out the incidence of poverty and its impact on society. Such research
may make the concerned authorities, to take appropriate measures and reduce negative
consequences to the society.

Q3: Discuss in detail different types of Research?

A: Meaning
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Research is a systematic investigation to search for new facts in any branch of

knowledge. Research helps to arrive at new conclusions. It enables to find solutions to
certain problems.

Types of Research
The research activity can be classified into different categories. Some of the main types
of research are as follows.
1. Basic Research:
Basic research is also called as pure or fundamental research. It is undertaken to
develop a theory or a body of knowledge. The main goal is to expand mans
knowledge. In basic research, there is no commercial angle. Basic research lays
down the foundation of the applied science that follows.
Basic research advances fundamental knowledge about the world. It focuses on
refuting or supporting theories that explain observed phenomena. Pure research is the
source of most new scientific ideas and ways of thinking about the world. It can be
exploratory, descriptive, or explanatory; however, explanatory research is the most
common.
2. Applied Research
Applied research is a scientific study designed to solve practical problems, rather
than merely acquiring knowledge. Applied research is used to find solutions to
everyday problems, and develop innovative technologies.
Psychologists working in human factors or organisations undertake applied research.
The goal is to improve human condition. It is generally used to handle a particular
situation or to solve a particular problem.
3. Descriptive Research
Descriptive research or statistical research provide data about the population or
universe being studied. But it can only describe the who, what, when, where and
how of a situation. It does not describe what caused a particular situation. Therefore,
descriptive research is used when the objective is to provide a systematic description
that is as factual and accurate as possible.
One of its limitations is that it cannot help determine what causes a specific
behaviour, motivation or occurrence. It cannot establish a cause-effect relationship
between variables.
4. Analytical Research
Analytical research is undertaken to collect facts or data, or the facts or data may be
readily available. The researcher attempts to critically evaluate such facts and date so
as to arrive at conclusions. This type of research may establish the cause and effect
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relationship. The researcher may provide necessary recommendations to improve or

solve the problem or to handle certain situation or event.
This research helps to understand the cause-effect relationship between variables. It
also helps to focus on those variables that have greater positive effect, and to
eliminate certain variables that have negative effect on the situation.
5. Empirical Research:
Empirical research can be defined as research based on experimentation or
observation. Empirical research is a way of gaining knowledge by means of direct
and indirect observation or experience or experiment. Such research is conducted to
test a hypothesis.
Empirical evidence (based on ones direct observations or experiences) can be
analysed quantitatively or qualitatively. Many researchers combine qualitative and
quantitative forms of analysis to better answer questions which cannot be studied in
laboratory settings, particularly in social sciences.
6. Qualitative Research:
Qualitative research is a method of inquiry employed in many disciplines, especially
in social sciences. Qualitative researchers aim to gather an in-depth understanding of
human behaviour and the reasons that govern such behaviour. The qualitative method
investigates the why and how of decision making, not just what, where, and when.
Hence, smaller but focused samples are more often used than large samples.
The motivational research is an important type of qualitative research. It is especially
important in the behavioural sciences where the main aim is to find out the
underlying motives of human behaviour.
7. Quantitative Research:
Quantitative research is Explaining phenomena by collecting numerical data that are
analysed using mathematically based methods. The objective of quantitative research
is to develop and employ mathematical models, theories and/or hypotheses pertaining
to phenomena. The process of measurement is central to quantitative research
because it provides the fundamental connection between empirical observation and
mathematical expression of quantitative relationships.
More generally, quantitative research is widely used in social sciences such as
psychology, economics, sociology, marketing, community health, gender and
political science, etc.
8. Other Types of Research:
Research can be classified into various other types such as:
Field research or laboratory research.
One-time research or multi-period research.
Conclusion-oriented research or decision-oriented research.
Historical research or current-situation research.
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The above mentioned types are various types of research.

Q4: What is Research Methodology? What are the requisite of good

scientific methods?
A: Meaning
Methodology is a systematic analysis of methods applied to a field of study. It
compromises the theoretical analysis of the body of methods and principles associated
with a branch of knowledge.
A methodology does not set out to provide solutions. Therefore, it is not the same thing
method. Instead, it offers the theoretical base for understanding which method, set of
methods or so called best practices can be applied to specific case.
Definitions
Merriam-Webster Dictionary provides two definition on research methodology as
follows: The analysis of the principles of methods, rules, and postulates employed by a
discipline.
The systematic study of methods that are, can be, or have been applied within
a discipline.
Requisite of Good Scientific Methods
Requisites of good scientific methods or features of research methodology are as
follows:
1. Systematic Process
Research methodology is a systematic process of analysing and selecting the best
method to conduct research. The research methodology process consist of the
following main stages:
Identification of research problem.
Formulation of research design.
Designing the sample.
Collection of data.
Processing of data.
Analysing and interpretation.
Drawing conclusions and providing recommendations.
Preparation of Research Report.
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2. Purpose of Research Methodology:

The main purpose of research methodology is to select the best method to
conduct the research. After selecting the research methodology, the researcher
proceeds to collect the data, analyse it, and draws conclusions and
recommendations in order to solve the research problem. In the final analysis, the
research methodology helps to solve the research problem in a systematic
manner.
3. Reliance on Empirical Evidence:
Research methodology involves a systematic process to find a solution to the
research problem. The solution to a problem is found not on the basis of intuition
or imagination. The research methodology involves collection of data through
survey, observation or experimentation. The conclusion are based on empirical
evidence.
4. Commitment to Objectivity:
Research methodology is objective in nature because it makes use of scientific
methods to collect and analyse data. Objectivity involves forming a judgement
based on accurate facts. The researcher examines the facts in a scientific manner.
Objectivity also ensures that the conclusions drawn do not vary from one person
to another.
5. Verifiability:
Research methodology ensures that the conclusions drawn by the researcher are
verifiable. With the help of research methodology, the researcher is in a position
to justify the conclusions. When others verify the researchers conclusions under
the same conditions, then they are accepted as correct. The researcher must
expose the methods and conclusions to critical scrutiny.
6. Ethical Neutrality:
Research methodology is based on ethical neutrality. It aims at making correct
statements about facts. The researcher should not be biased and distort the facts.
For a researcher, truth should be the primary objective. Distortion of facts will not
help the researcher to solve the problem and may even aggravate the research
problem especially in case of commercial research.
7. Development of Principles and Theories:
Systematic research methodology helps to develop new principles and theories.
The principles and theories can have universal application. This means, the
research findings can be used by several organisation to manage and deal with
people and things in a better way.
8. Multipurpose Activity:

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Research methodology is a multipurpose activity. It helps to discover new facts or

verify old facts. It helps not only to predict future events, but also helps to control
such events. It establishes causal relationship between two or more variables. It
also helps to develop new scientific tools, concepts and theories, which would
facilitate reliable and valid study of human behaviour and other aspects.
9. Limitations or Constraints:
The effectiveness of research methodology in social sciences in affected due to
certain constraints. Some of the constraints are:
Social sciences deal with human beings- their behaviour and social life.

The human behaviour cannot be predicted with accuracy.

The research methodology in social sciences is affected by the problem of
bias of researcher and the respondents. Some researcher may draw biased
conclusions depending upon their likes, dislikes, feelings and emotions.

The respondents may also give biased responses.

There are also problems relating to sampling. The selected sample may be
small in size and may not represent the universe, and therefore, the data
collected from the sample respondents may be inadequate to solve the
research problem.

The above mentioned points are required for good scientific method.

Q5: Explain steps or process in Scientific Research?

A: Scientific Research is a systematic process undertaken to study the research problem and
to arrive at conclusions.
Each research problem is unique and requires a special emphasis and approach. One way
to face the uniqueness of every problem is to tailor the research work according to needs
of each problem.
The scientific research process consists of a sequence of steps that have to be followed
while undertaking a research project:
1. Identifying and Selection of Research Problems:
Identification and formulation of research problem is the first and most important step
of research process. The problem formulation is like an identification of a destination
before undertaking a journey. It is often said that a well-defined problem is half
solved.

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Before formulating the research problem, the research must always think- what the
problem is, why it is a problem, and for whom the problem is.
The following are some of the essentials of a good problem formulation:
a. Researchable: the problem can be investigated through the collection and analysis
of data.
b. Interesting: the problem keeps the researcher involved it throughout the research
process.
c. Purposeful: the findings of which must be useful to solve the problem or situation.
d. Understandable: well formulated and logically structured with main question and
sub-questions.
e. Manageable: fits the researchers skills, resources, and time restrictions.
f. Ethical: does not embarrass or harm the researcher, respondents and the society.
2. Review of Literature:
The researcher should undertake extensive literature survey relating to the problem. He
may consider various publications such as journals, books, research reports, and other
published matter. Particularly, the researcher should go through the similar research
studies that were conducted previously. Some review of literature would provide a
good insight into the problem.
3. Formulation of Hypothesis:
The researcher should formulate the hypothesis. The hypothesis is a tentative
assumption made to test its logical or empirical consequences.
The hypothesis should be formulated on the basis of insight and knowledge about the
problem. The hypothesis may prove to be either wrong or right.
4. Research Design:
The researcher must prepare a research design. It is a logical and systematic plan
prepared for conducting a research study. It can be called as a blue print for collection,
measurement and analysis of data. The research design provides guidelines to
researcher regarding the time period within which research is to be conducted, the type
of data to be collected, the techniques of data collection and data analysis, and so on.
The research design must include the following aspects:
a. A clear statement of the research problem.
b. The sources of data collection.
c. The time period of research study.
d. The area or place where research is to be conducted.
e. The resources required to conduct the research.
f. The techniques of data collection.
g. The techniques of data analysis.
h. The universe of research.
i. The sample size of respondents, if any.
j. The aims or objectives of the research.
5. Designing the Questionnaire:
If the researcher cannot solve the problem with the help of secondary data, observation
and experimentation, then he should make efforts to collect the primary data from the
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field for which he requires a questionnaire. While designing the questionnaire, the
following points must be kept in mind:
What types of information is required?
What type of technique will be used for conducting the research, i.e., whether
telephone interview, personal interview, or mail?
There should be proper wording and proper sequence of questions.
6. Sample Design:
Generally, it is not possible to collect data from each members of the universe or
population under study due to limitations of time, effort, and money. Therefore, the
researcher needs to select a sample of respondents that represent the universe.
Sampling design is a plan to select the appropriate sample to collect the right data so as
to achieve the research objectives. A sample represents those individuals chosen from
the population of interest as subjects in an experiment or to be respondents to a
survey.
7. Collection of Data:
Problem solving is essentially a process of collecting information. The data can be
collected from various sources primary and secondary. While collecting data care
should be taken of:
Information is up-to date and free from bias.
It is objective and relevant to the needs of problem.
It is complete in all respects.
8. Processing of Data:
The collected data is mostly available in a raw form and therefore, it needs to be
processed. Processing of data involves:
(a) Editing: it helps to weed out unwanted and irrelevant data. It also helps to check
errors and omissions in data collection.
(b) Coding: it involves assigning codes (numerical, alphabetical, and alpha-numerical)
to the categories or responses. It is required especially when the sample size is
large and when there is large number of responses.
(c) Classifications: it refers to grouping of data under different categories or classes
such as age, gender, education, area, etc. it facilitates tabulation of data.
(d) Tabulation: it involves transferring of classified data in a tabular form. Tabulation
of data facilitates and interpretation of data.
9. Data Analysis:
Organisation of data is generally followed by its analysis and interpretation. The
purpose of analysing data is to establish a relation between the information and
problem. Analysis reviews the data in the light of hypothesis or research problem. It is
difficult to demarcate a line between analysis and interpretation. They quite often

14

overlap and so it is difficult to find out the end of analysis and the beginning of
interpretation.
10. Hypothesis Testing:
After analysis and interpretation of data, the researcher must be in a position to test the
hypothesis (if framed earlier). The researcher should find out whether or not the
research findings support the hypothesis or prove to be contrary. Various tests, such as
Chi-square test, F-test, etc., have been developed for such testing. The testing of
hypothesis will result in either accepting it or rejecting it.
11. Preparation of Research Report:
The research finding and conclusion are presented with the help of research report. The
research report is divided into three parts:
(a) Preliminary Contents: which includes title of the report, letter of authorization,
letter of transmittal, and table of contents (index).
(b) Main Body: which includes introduction, methodology, findings, limitations of
any, conclusions and recommendations.
(c) Concluding Part: which includes appendix and bibliography.
12. Follow-up of Report:
The researcher should submit the report to concerned authorities. The researcher
should find out whether his report is accepted. If accepted, whether his
recommendations are accepted and implemented. If implemented, whether the
recommendations are successful in solving the problem.

Q6: Write a note on Review of Literature?

A: Review of literature is an important stage in research activity. Review of literature refers
to extensive review of literature relating to research problem which the researcher
intends to undertake. The researcher reviews previous research studies, relevant
reference books, articles in specific journals and other published sources. Such review of
literature provides a good insight into the research problem.
Specifically, the researcher gets familiar with all the previous research studies undertaken
by other researchers which are relevant to the research project. The research scholar
reviews he findings of the previous research studies. He evaluates the conclusions drawn
from the research findings. He also analysis the impact of the recommendations made by
the researchers.
When to undertake Literature Review?

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The literature review can be conducted throughout the research activity. It starts with the
identification and selection of the research problem. It continues throughout the various
stages of research process and ends with the writing of research report.
At the stages of research project, the review of literature serves specific purpose:

At the pre-research stage, the literature review helps in identification and selection
of the research problem. It enables the research scholar to get familiar with the upto-date knowledge in the area of research problem. It also helps to formulate the

research hypothesis.
At the outset of the research stage, the review of literature enables the researcher to
become familiar with the methodology, research design and sample adopted by other

researcher.
At the post-research stage, the review of literature enables the researcher to arrive at
research findings and conclusions. It also helps the researcher to structure the
research report.

Steps in Review of Literature:

1. Identify and select the research problem.
2. Determine the sources of literature relevant to the research problem which may
include doctoral theses, articles in journals, reference books, and other published and
3.
4.
5.
6.
7.
8.

unpublished sources.
Read and understand the relevant literature relating to the research problem.
Note and record the relevant information.
Analyse the relevant information.
Take required permission from the source to use the literature in the research report.
Use the relevant information for the research project.
Cite the source of relevant literature in the research report wherever applicable.

Purpose of Review of Literature:

1. To get background knowledge of the research topic.
2. To formulate research hypothesis.
3. To get familiar with the methodology adapted by other researchers in a particular
4.
5.
6.
7.

field.
To prepare research design to undertake the research problem.
To prepare sample design including decision on sample size to collect research data.
To get familiar with data collection sources and techniques used by other researchers.
To understand the findings of other researchers, which are relevant to the research

problem.
8. To get familiar with data analysis techniques, which are adopted by other researchers.
9. To compile bibliography.
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10. To understand the latest developments in the area of research problem.

11. To understand the structure of research report.

Q7: What is research design? Explain the essentials of Research Design?

A: Meaning
A research design is the plan of a research study. The design of a study defines the study
type (descriptive, correlational, semi-experimental, experimental, review, meta-analytic)
and

sub-type

(e.g.,

descriptive-longitudinal case

study), research

question, hypotheses, independent and dependent variables, experimental design, and, if

applicable, data collection methods and a statistical analysis plan. Research design is the
framework that has been created to seek answers to research questions.
The research design shows that the researcher is able to tackle the research problem in a
coherent and explicit way.
DEFINITION
A research design is defines as,
A logical and systematic plan prepared for directing a research study. It
specifies the objectives of the study; the methodologies and techniques to be
adopted for achieving the objectives.

Philips Bernad
Research design actually constitutes the blue print for the collection,
measurement and analysis of the data.

David & Nachmias

Essentials of a Good Research Design

To make research design more effective, the researcher must consider certain guidelines
or essentials:
1. Focus on Objectives: The research design must focus on the research objectives.
The research objectives must be very clear to the researcher as well as to the research
staff. The research objectives differ depending upon the type of research.
2. Flexibility: The research design should not be rigid. The research design must be
flexible depending upon the situation.
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3. Pilot Study: It is always advisable to conduct a pilot study for finalizing the research
design. Pilot study is a research activity undertaken in a small segment of the
research universe. The pilot study is conducted to find out whether or not the
researcher would be in a position to collect relevant data from the sources or areas so
selected, and whether or not the collected data would be relevant to solve the
problem.
4. Acceptance: The research design must be acceptable to the persons concerned. For
instance:
In the case of commercial research, the research design must be acceptable to the
higher authorities. This is because; the higher authorities are required to approve

it and accordingly sanction the resources to conduct the research activity.

In the case of academic research, the research design must be acceptable to the
research guide, as he needs to approve the research design before the research

activity starts.
In case of social research, the research design must be acceptable to the social or

other organisations that are going to finance or sponsor the research activity.
5. Suitability: The research design must be suitable to achieve research objectives.
Certain factors to be considered while finalizing the research design as follows:
The availability of funds.
The availability of time.
The availability of manpower.
The methods of data collection and analysis, etc.
Depending upon the funds and other resources, the research may take suitable
action.
6. Simplicity: The research design should be simple and easy to understand. The
language used in the research design must be clear and simple. Wherever required,
research design must be supported by footnotes. Technically jargons must be
avoided. The use of simple language would enable the approving sanction the funds,
especially in the case of commercial research. Simplicity of research design would
also enable the research staff to collect the relevant information, and also to analyse
the data properly.
7. Cost-Effective: The research design should be cost effective. In a commercial
research, the research work based on research design must bring benefits to the
organisation. The research design should enable proper collection and analysis of

18

data, which in turn should facilitate proper decision-making. The benefits on account
of sound decision-making must be more than the cost incurred on research activity.
In case of social research, cost effectiveness must be seen from the long term point of
view and not just short term point of view. The money spent on social research must
generate social development benefits from long-term perspective.
8. Ease in Implementation: The research design should facilitate

proper

implementation of the research activity. As far as possible, the research design should
avoid complicated procedures and techniques which are difficult to adopt/follow. The
research work should not overburden the research staff, as the quality of research
work may get adversely affected. Also sufficient time must be given to the staff for
collecting and analysing the data.
9. Training to the Research Staff: To conduct effective research proper training must
be given to the research staff. Training helps to improve: knowledge, attitude, skills
and social behaviour. The research staff not only requires knowledge and skills to
conduct proper research but also the right attitude towards the research work, and
good social behaviour when they interact with team mates and with the respondents.
10. Selection of Right Techniques/Methods: There are various methods of collecting
data such as:
Survey/Interview
Observation
Experimentation
There are also various methods of data analysis such as:

Measures of Central Tendency (Mean, Median and Mode)

Time series, such as moving averages
Correlation Techniques, etc.

Depending upon the type of research, the researcher should select the appropriate
methods for data collection and analysis.
The following points were the Essentials of Good Research Design.

Q8: Explain different types of Research Design?

A: Meaning
A research design is the plan of a research study. The design of a study defines the study
type (descriptive, correlational, semi-experimental, experimental, review, meta-analytic)
and

sub-type

(e.g.,

descriptive-longitudinal case
19

study), research

question, hypotheses, independent and dependent variables, experimental design, and, if

applicable, data collection methods and a statistical analysis plan. Research design is the
framework that has been created to seek answers to research questions.
The research design shows that the researcher is able to tackle the research problem in a
coherent and explicit way.
Types of Research Design

Types of Research Design

Exploratory Research

Conclusive Research

Descriptive Research

I.

Diagnostic Research

Exploratory Research
It is conducted to explore information about the nature or causes of research
problem. It is conducted when the causes of the research problem are not known to
the researcher.
Features of Exploratory Research:
1. Unstructured: Generally, exploratory research does not have a formalized set
of objectives, sample plan or questionnaire. It is conducted when a researcher
does not know much about the problem and needs additional information. The
researcher may collect the data from any sources- Primary or Secondary
sources.
2. Flexible: Exploratory research is systematic but it is very flexible. It allows
researcher to investigate the problem from whatever sources he/she desires.
The extent of information also depends upon the researcher.
3. Informal: Often exploratory research is conducted at the outset of a research
project. Exploratory research is aimed at gaining additional information about a
II.

topic and generating possible hypotheses. Therefore, it is described as informal.

Descriptive Research:

20

It is conducted to obtain descriptive information about certain aspects of a

problem.
Through descriptive research, it would be difficult to answer the question
Why. To answer the question Why- people buy certain items- casual
research is required.
Types of Descriptive Research
1. Cross-Sectional Studies: measure population aspects at inly one point of
time. For example, sample survey by a magazine publisher of magazine
readers.
2. Longitudinal Studies: measure repeatedly the same population over a
III.

period of time. For example, a marketer may undertake panel surveys.

Casual (Diagnostic) Research:
Casual research investigates cause/effect relationship between two or more
variables. For instance, a research may be conducted to find out the relationship
between advertising and sales.
Objectives of Casual Research
1. To understand the cause-effect relationship between two or more variables.
2. To focus on those variables or elements having greater positive effect.
3. To eliminate certain variables or elements having negative effect.
4. To develop action plans.

Q9: What is Sampling? Explain essentials of Sampling?

A: Meaning
Sampling design is a plan designed to select the appropriate sample in order to collect the
right data so as to achieve research objectives.
A sample is a part of the universe that can be used as respondents to a survey or for the
purpose of experimentation, in order to collect relevant information to solve a particular
problem.
Definition
Those individuals chosen from the popularity of interest as subjects in an
experiment or to be the respondents to a survey.

Donald Tull & Dell Hawkins

Essentials of Sampling Design

In sampling, a part of the universe is selected for obtaining information. Therefore,
sampling offers several advantages to the researcher, as follows:
21

1. Time Saving: Sampling helps to save time in respect of collection and analysis of
data. For instance, if 1000 respondents are selected out of total universe of 10 lakhs,
then data collection can be done at faster rate, and so also data analysis. Therefore the
researcher can get quick research results, and accordingly can take timely action.
2. Overcomes Complexities: Sampling helps to reduce complexities in research work.
If a limited sample is used, then fewer respondents are required to collect data. As a
result, the researcher may require less time for editing, coding, and interpretation of
data. Therefore, the analysis can be done quickly and without complexities. However,
in the case of census, the response are obtained from the entire universe or
households, and therefore, lot of time is required for data collection and analysis.
Complexities increase due to huge amount of data.
3. Motivation to Research Staff: Limited sample size brings relief to the research staff.
They get motivated to collect the right information. This is because; they get sufficient
time for collection and analysis of data. Secondly, they may get higher rewards due to
good quality research work. In case of census, thousands of surveyors are required for
data collection, and rewards or remuneration given to them must be low or not
justified. Therefore, they do not get motivated to conduct the research effectively.
4. Detailed Information: Due to sampling, the researcher can collect detailed
information from the sample respondents. For instance, in the case of commercial
research relating to the study of consumer behaviour, the researcher can obtain

detailed information in respect of:

What the consumers buy?
When they buy?
Where they buy?
How often they buy?
What are the buying motives?
But in the case of census, detailed information from each and every household may
not be possible due to limitations of time, funds, and so on. Therefore, the quality of
research work may get affected.

5. Offers Convenience to the Researcher: Sampling offers convenience to the

researcher to collect the data. In case of convenience sampling, the researcher may
conveniently select the respondents, and accordingly collect the data.
6. Economical: Sampling generates economy on conducting research. For any research,
availability of funds is a constraint. A smaller sample requires less funds not only for
data collection but also for processing and interpretation of data. Especially, in the
22

case of academic research, money is a big problem. Therefore, the researcher will
select a limited sample size to conduct the research activity.
7. Suitability: The sampling technique is suitable in the case of commercial and
academic research. But the sampling technique is not suitable in the case of census
survey. This is because; in census survey, relevant data must be collected from every
household or every element of the universe.
8. Optimum Use of Resources: Sampling helps to make optimum use of resources.
Depending upon the resources, the researcher selects the appropriate sample size.
Therefore, proper sample size will help to make best use of physical, human and
financial resources.
9. Performance Improvement: Sampling can help to improve performance of the
organisation. Due to sampling, the researcher can undertake quality research work.
This will help the researcher to arrive at sound decision making, which in turn will
help to improve the performance of the organisation.
10. Quality of Research Work: The quality of research work may be improved due to
sampling. The field staff will get sufficient time to collect the data from sample
respondents. They need not rush through the collection of data. Also, data analysis
staff gets sufficient time for data analysis. Therefore, the overall quality of the
research work improves.

Q10: Explain different methods or techniques of sampling.

A: Sampling Methods/Techniques
The methods of sampling can be divided into two groups:

23

Methods of Sampling

Probablity Methods

Non-Probablity Methods

Simple Random Sampling

Systematic Sampling
Clsuter Sampling
Starified Sampling

I.

Convinience Sampling
Accidental Sampling
Judgement Sampling
Quota Sampling

Probability Method:
Probability sampling is also known as random sampling. Probability means
possible chance. Therefore, each element of the population has known chance or
opportunity of being selected or included in the sample. For example, if a sample
of 100 students is to be selected from a population of 1000 students, then each
student has a 10% chance of being selected.
Types of Probability Methods
1. Simple Random Sampling:
This is the most popular method which is normally followed to collect
research data. This technique provides every element or unit (such as
household) an equal chance of being selected in the sample. It is suitable for
selecting from a small homogeneous group.
There are two sub-methods:
(a) Lottery Method
(b) Random Tables
2. Systematic Sampling:
It is a variation of simple random method. This technique is superior to simple
random method. In this case, a sampling fraction is calculated based on the
total population under study. After the sampling fraction is calculated, a
certain number is selected at random and the process continues to select the
sample size.

24

Formula: Skip Interval =

Sample
Population

3. Cluster Sampling:
Cluster sampling is also called as Area Sampling. Under this method,
instead of selecting individual units, the researcher divides the population into
clusters or groups and accordingly sample is selected.
4. Stratified Sampling:
The population is divided into various strata or segments based on income,
occupation, age, gender, etc. after dividing the population into different
segments, certain number of sample members is selected from each stratum or
segment. There are two types of stratified sampling:
Proportionate Stratified Sampling
Disproportionate Stratified Sampling
In the case of proportionate sampling, certain fixed percentage is taken of
each stratum to represent the sample. In case of disproportionate, there is no
such percentage considered to represent the sample.
II.

Non-Probability Methods
1. Convenience Sampling:
The sample is selected as per the convenience of the researcher. Under this
method, every element of the population does not get a chance of being
selected. The researcher may consider factors to select the sample of
respondents, such as his contacts, convenient location, and so on.
2. Accidental Sampling:
The researcher may select the sample by chance without following a systematic
procedure. Every element of the universe does not get a chance of being
selected. Accidental sampling method is normally followed when the sample
size is very small.
3. Judgement Sampling:
The sample is selected based on the judgement of researcher or some other
person assisting or advising the researcher.
4. Quota Sampling:
Under this method, the researcher allocates certain quota (relating to
respondents) to certain groups under study. The quotas may differ from each

III.

area depending upon certain factors like age, occupation, income, etc.
Other Non-Probability Methods:
Sequential Sampling Methods:
Sequential sampling is a non-probability sampling technique wherein the
researcher picks a single or a group of subjects in a given time interval,
25

conducts his study, analyses the results then picks another group of subjects if
needed and so on.
Snow ball Sampling / Chain Referral Sampling:
Snowball sampling is a non-probability sampling technique that is used by
researchers to identify potential subjects in studies where subjects are hard to
locate.

Q11: What is secondary data? Explain its limitations.

A: Meaning
The secondary data is readily available from published or printed sources. The secondary
data is generally used in the case of academic research and to a certain extent in the case
of social research. However, commercial research requires more of primary data
compared to secondary data.
Generally the researcher first makes an attempt to obtain information from secondary
sources to solve the problem. However, when the secondary data is insufficient and
outdated, the researcher resorts to primary data.
Limitations of Secondary Data Collection Method
There are certain limitations of secondary data collection method such as:
1. Problem of Accuracy: The quality of secondary data is affected due to the problem
of accuracy. One cannot be certain of the genuineness of data. For instance, the
statistical data provided on the internet from various sources is vastly different and
may be exaggerated.
2. Problem of Reliability: The secondary data lacks reliability. The published data may
be outdated, and therefore, it may not serve the purpose of the current research work
undertaken by the researcher. Also, the reliability of the source that provided the
published data may not be genuine. At times, some sources provide unreliable and
biased data.
3. Problem of Adequacy: At times, the secondary data may be accurate and reliable,
but the data may be insufficient to solve the current research problem. The secondary
data may not provide complete data to solve research problem. A researcher cannot
completely depend on the secondary data to solve the research problem. Therefore,
the researcher needs to collect the data from primary sources as well to solve the
research problem.
26

4. Lack of In-Depth Information: the secondary data not only may lack adequacy, but
it may not provide in-depth information to solve the research problem. For instance,
commercial research requires in-depth knowledge of consumer behaviour which can
be obtained more through in-depth questioning of the target respondents.
5. Problem in Quality Decision Making: The secondary data may affect the quality of
decision-making. This is because; the data may be inaccurate, insufficient and
unreliable. Therefore, the decisions made purely on the basis of secondary data
would bring poor outcomes.
6. Problem of Specific Data: The secondary data may be more general in nature rather
than specific problems. Therefore, the researcher cannot depend merely on secondary
data, but instead collect specific data to resolve the specific problem.
7. Unsuitability: The secondary data may not be suitable in certain cases. Secondary
data may be of less use in the case of commercial research. To solve business related
problems, a researcher may require more of primary data rather than secondary data.
8. Problems of Biased Information: There is possibility of bias in secondary data. The
researcher has no control over the quality of the secondary data. The secondary data
may be badly influenced by the bias of the respondents and also that of the
researcher. At times, the researcher may have casually collected the secondary data
and got it published. Therefore, one should not blindly depend on secondary data.

Q12: Explain different methods of collecting Primary Data.

A: Primary data may be collected either through observation or through direct
communication with respondents in one form or another through personal interviews.
There are several ways of collecting primary data.
These may be:

Observation method,
Interview method,
Questionnaire method, and
Schedule method.
1. Observation Method:
In observation method, the information is sought by way of investigators own direct
observation without asking from the respondent. The main advantage of this method is
that it is free from subjective biasness, as it is free from respondents willingness. It is,
however, an expensive and time consuming method. Moreover, the information

27

provided by this method is very limited and some of the more busy people like
executives may not be accessible to direct observation.
2. Interview Method:
Primary data may be collected either through personal interviews or through
telephonic interviews:
(a) In the personal interviews the interviewer asks questions generally in a face to face
contact. Through interview method more and reliable information may be obtained.
Personal information can be obtained easily under this method. It is, however, a very
expensive and time consuming method, especially when large and widely spread
geographical sample is taken. Certain types of respondents, such as officials, executives
or people of high income groups, may not be easily accessible.
In this method, the respondent may give wrong and imaginary information. For
effective interview there should be a good rapport with respondents which is often very
difficult to develop. For a good result the interviewers approach should be friendly,
courteous, conversational and unbiased for which a proper training is required.
(b) In telephonic interviews contact is made with the respondents through telephone.
The main merits of telephonic interviews are:
(i)
(ii)
(iii)

It is more flexible and faster than other methods.

It is cheaper and less time consuming.
Recall is easy and replies can be recorded without causing embarrassment to

(iv)

respondents.
At times, access can be made to respondents who otherwise cannot be contacted

(v)

for one reason or the other.

No staff is required and wider representation of sample is possible.

This method also has several weaknesses. For example, the surveys are restricted to
respondents who have telephonic facilities and little time is given to respondents for
considered answers. It is not suitable for intensive surveys where comprehensive
answers are required for various questions.
3.

Questionnaire Method:

28

In this method a questionnaire is mailed to the person concerned with a request to

answer the questions and return the questionnaire. This method is most extensively
applied in various researches of human and economic geography.
The main merits of this method are given below:
(i)
(ii)
(iii)

There is low cost even when the universe is large and is widespread geographically.
It is free from bias of interviewer as answers are respondents own words.
Respondents, who are not easily approachable, can also be reached conveniently.
Moreover, respondents are given enough time to give well thought answers.

The main demerits of this method are:

(i)
Low rate of return of the duly filled questionnaires.
(ii)
It can be used only when the respondents are educated and cooperative.
(iii)
The control of the questionnaire may be lost once it is sent.
(iv)
It is difficult to know whether willing respondents are truly representative.
(v)
This method is likely to be the slowest of all.
4. Schedule Method:
This method of data collection is very much like the collection of data through
questionnaires, with little difference that lies in the fact that schedules (proforma
containing a set of questions) are being filled in by the enumerators who are specially
appointed for this purpose. Enumerators explain the aims and objects of the
investigation and also remove the difficulties which any respondent may feel in
understanding the implications of a particular question.This method is very useful in
extensive enquiries and can lead to fairly reliable results.

Introduction to Credit Card

A credit card is a payment card issued to users (cardholders) as a method of payment. It
allows the cardholder to pay for goods and services based on the holder's promise to
pay for them. The issuer of the card (usually a bank) creates a revolving account and
grants a line of credit to the cardholder, from which the cardholder can borrow money
for payment to a merchant or as a cash advance.
A credit card is different from a charge card, where it requires the balance to be repaid
in full each month. In contrast, credit cards allow the consumers a continuing balance
of debt, subject to interest being charged. A credit card also differs from a cash card,
which can be used like currency by the owner of the card. A credit card differs from a
29

charge card also in that a credit card typically involves a third-party entity that pays the
seller and is reimbursed by the buyer, whereas a charge card simply defers payment by
the buyer until a later date.

History
The concept of using a card for purchases was described in 1887 by Edward
Bellamy in his utopian novel Looking Backward. Bellamy used the term credit card
eleven times in this novel, although this referred to a card for spending a citizen's
dividend from the government, rather than borrowing.
Charge coins and other similar items were used from the late 19th century to the 1930s.
They came in various shapes and sizes; with materials made out of celluloid (an early
type of plastic), copper, aluminum, steel, and other types of whitish metals.[6] Each
charge coin usually had a little hole, enabling it to be put in a key ring like a key. These
charge coins were usually given to customers who had charge accounts in department
stores, hotels, and so on. A charge coin usually had the charge account number along
with the merchant's name and logo.
The charge coin offered a simple and fast way to copy a charge account number to the
sales slip, by imprinting the coin onto the sales slip. This sped the process of copying,
previously done by handwriting.

CHAPTER II

INTRODUCTION TO RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research methodology is a systematized investigation to gain new knowledge about the
phenomena or problems. But in wider sense methodology includes the philosophy and
practice of the whole research process. It provides standards which the researchers use for
integrating data and reaching conclusion. Research methodology would be beneficial to
appear for the appropriate results.

30

It is a way to systematically solve the research problem. In it we study the various steps that
are generally adopted by a researcher in studying his research problem along with the logic
behind them. Normally a research design includes questions: what is the study about, why is
the study being made, where will be study be carried out, what type of data is required, what
can the data be availed, what period of the time will be study include, what will be the
sample design, what techniques of the data collection will be used, how will the data be
analysed, and what will be the style of research report.

RESEARCH TOPIC
Crafting a well-defined topic is one of the most important parts of doing research.
Defining a topic can be a multi-step process. You need to:

Think about what drew you to the topic in the first place: what areas interest you the
most?

Do some basic research both for background information and to find out what's
already been written on your topic

Focus, focus, focus: be sure you have a manageable amount to cover within the time
and space requirements of your assignment

You'll further refine your topic as you delve deeper into the research. If you jump into doing
research without a well-defined topic, however, you'll eventually find yourself right back
here trying to pick a topic later in the process... and you'll have wasted a lot of time! To
ensure a good start, in this section, you'll first learn how to create a workable research
question. Next, you'll see how to turn that question into the search terms you'll use in your
research.
The topic for my research study is:

Effects of Credit Card on Sale

31

TYPE of RESEARCH
Research are of various types. Various types of research are: Basic Research, Applied
Research, Quantitative Research, Qualitative Research, Descriptive Research, Analytical
Research, and Empirical Research.
The type of research adopted by me is Quantitative Research. The decision to follow a
quantitative research methodology was based on the fact that the results of the survey should
be a representative sample of the total population.

OBJECTIVES OF RESEARCH
A specific result that a person or system aims to achieve within a time frame and with
available resources is known as objective.
In general, objectives are more specific and easier to measure than goals. Objectives are
basic tools that underlie all planning and strategic activities. They serve as the basis for
creating policy and evaluating performance. Some examples of business objectives include
minimizing expenses, expanding internationally, or making a profit.

The objectives for my research are as follows:

To understand working of Credit card.

To understand the Impact of Credit card on sale.
To understand the effects of Credit card on spending pattern.
To understand the Benefits of using Credit card.

HYPOTHESIS
A supposition or explanation (theory) that is provisionally accepted in order to interpret
certain events or phenomena, and to provide guidance for further investigation. A hypothesis
may be proven correct or wrong, and must be capable of refutation. If it remains unrefuted
by facts, it is said to be verified or corroborated.
The hypothesis for my research are as follows:

32

Use of Credit card has significant impact on sale.

Use of Credit card leads to Overspending.

SOURCES OF DATA
Primary Data
The data is collected through survey as survey gives first-hand information. Primary Data is
the data in the form of documents collected from governmental bodies like judiciary,
Legislature and the Administrative agencies and relevant statutes, laws precedents of higher
judiciary. For getting first-hand information ten questions had been prepared and for
answering that questions the respondents are college students and young people. Because
survey is done to get what impact advertising has on sales. The questionnaire method will be
the main tool to collect data from advertisers.
Secondary Source of Data
The secondary source of data shall include commentary of non-governmental bodies,
research report, law journals, treaties and dictionaries.
The source of data for my research are:

Primary data source: Questionnaire Survey.

Secondary data source: 1. General Publications. 2.Internet. 3.Blogs. 4.Tabloid
5.newspapers. 6.Books.

SAMPLE SIZE
The sample size is an important feature of any empirical study in which the goal is to make
inferences about a population from a sample. In practice, the sample size used in a study is
determined based on the expense of data collection, and the need to have sufficient statistical
power. Determining the sample size to be selected is an important step in any research study.
The sample size for my survey is 35-50.

TECHNIQUES of ANALYSIS
33

Analysis of data is a process of inspecting, cleaning, transforming, and modelling data with
the goal of discovering useful information, suggesting conclusions, and supporting decision
making. Data analysis has multiple facets and approaches, encompassing diverse techniques
under a variety of names, in different business, science, and social science domains.
The techniques of analysis used are Basic Mathematical Techniques like ratios, mean,
median, mode, graphical representation, etc.

LIMITATIONS
Limitations are influences that the researcher cannot control. They are the shortcomings,
conditions or influences that cannot be controlled by the researcher that place restrictions on
your methodology and conclusions. Any limitations that might influence the results should
be mentioned.
There were certain limitations, I faced while doing research. Limited information about my
topic was one of them, which affect my research to some extent. Also the lack of time to
conduct the research affected the research. Limited sample size did not provide accurate data
required to get proper outcome.

REVIEW OF LITERATURE
Review literature is an important stage in research activity. Review of literature refers to
extensive review of literature relating to research.
Articles related to my research are as follows:

Article I
8 Hidden Credit Card Benefits Thatll Save You A Lot Of Cash
Most people are either averse to buying a credit card or are aware of only two benefits of
credit cards - earning rewards/miles and second is cashback/deals on online shopping. I
reviewed all the credit cards available in India and can reveal some of the best-kept secrets of
credit cards.

34

All benefits are not available on all cards, every credit card is unique and provides one or
more of following benefits. You should read all the points before choosing the best credit card
in India.
1. Life Insurance
Credit cards provide you free life insurance while you travel by air and book the tickets from
your card. Some cards have special insurance against hijacking.
Thats just an additional benefit of credit card in case of an unfortunate event while you are
traveling by air. It does not mean that you should not have your primary life insurance.
2. Protection against fraud
Online frauds are one of the biggest concerns that prevents most Indians from using credit
cards.. The good news is that credit card companies provide you protection against online
frauds.
All cards have different policies to safeguard your online transactions. All you have to do is
carefully check their terms & conditions.
Some cards protect you from any fraud transaction even before you report loss or misuse of
card, but almost all companies protect you against fraudulent transactions happened after you
call them and report the loss or misuse of card.
3. Low foreign transaction charges
I experimented with different ways of getting cheap forex at my recent travel to Thailand
where we spent almost two months.
Credit cards offer best forex rate if you can get a card with low foreign transaction charges.
The starting level credit cards charge 3.5% transaction charges while some premier credit
cards charge only 2% on foreign transactions.
I also use my premier credit cards when buying software tools from foreign websites to save
money.

35

4. Free lounge access at airports

Do you know that airports have lounges where you can relax while waiting for the connecting
flight? But access to airport lounges is not free. You have to pay around $20 for every visit.
Priority pass is a program that gives you free access to lounges but it comes at an annual cost
of $100.
You can get free priority pass with premier credit cards like visa signature. Enjoy your free
time at some of best lounges at domestic airports.
5. Lost Baggage Claim
Airlines take responsibility of refunding you a certain amount if your baggage is lost. It
happens with people who have connecting flights and had an unlucky day.
If you have booked your flight with a credit card offering lost baggage protection then you
can claim the amount as per their policy.

6. Loan on Credit Card

Banks approve loans against credit cards. They know your credit worthiness based on your
credit limit and your card usage. If you maintain a credit card with excellent payment history,
banks can approve your loans very easily.
However, I dont recommend applying for loans unless absolutely required.
7. Build credit history
Credit score and credit history are new terms for Indian consumers but these are widely used
in developed countries (US, UK, Australia) to evaluate a consumers credit worthiness. Banks
check your credit history from CIBIL before approving your loan.
Indian consumers should note that credit cards are the easiest way of building credit history.
If you have just got your first job and planning to buy a car in two years and house in five
years, you must have excellent credit history before applying for loan. Its the best time to get
36

your first credit card and build relationship with banks & CIBIL.
8. Complimentary membership to clubs
Different credit cards provide different type of luxurious memberships like Golf clubs, Taj
Epicure and Vistara Club.
You may get great discounts at hotel chains like Taj, Marriot, Hyatt, Oberoi and Hilton. Many
airlines get partnerships with credit cards to offer good deals on travel packages, hotels and
air tickets.
Credit cards can support or destroy your financial life, depending upon how you use
them. That is applicable with every powerful thing in our life, from electric appliance to
nuclear power. You should understand the benefit of your credit card, utilize maximum
benefits, and pay your dues on time to avail maximum benefit.

Article II
Shopping in online festive sales? Here is what you should know
The discounts range between 10% and 70% depending on the product and the website you
shop from. Along with this there is an additional cash back offered by banks if you use their
debit or credit cards
If you are an online shopper, you will find yourself in the midst of the annual festival sales
offered by various e-commerce companies. This year, e-commerce companies, such as
Flipkart, Amazon and Snapdeal kicked off their annual sales from the first week of October.
Flipkarts Big Billion Days 2016 began from 2 October and will end on 6 October. Day 1 is
for fashion, home dcor, televisions and home appliances. Day 2 is for mobiles and mobile
accessories. Day 3 is for all other electronic items and days 4 and 5 are for the complete
range of products.
37

Amazons Great Indian Sale ends on 5 October while Snapdeals Unbox Diwali Sale will end
on 6 October. ShopClues offers a 10-day sale which ends on 10 October.

Deals and offers

The discounts range between 10% and 70% depending on the product and the website you
shop from. Along with this there is an additional cash back offered by banks if you use their
debit or credit cards.
For instance, SBIs debit card holders get an additional discount for buying on Flipkart during
the sale period. SBIs credit card holders can avail 10% instant discount of up to Rs5,250
during the offer period. This is in addition to discounts given by the merchant, said Vijay
Jasuja, chief executive officer, SBI Cards.
He further said that merchant-offered equated monthly instalments (EMIs) have been a big
driver of sales. We anticipate EMI purchases to contribute significantly to the overall card
spends this year too, said Jasuja. Banks tied up with e-commerce companies expecting more
spends.
Last year, we saw a growth of over 30% in our total credit card spends during the festive
season. E-commerce spends rose considerably, upwards of 45% during the same period,
Jasuja added.
Similarly, HDFC Bank Ltd has offers for Amazon customers, while American Express has
tied up with Myntra and ShopClues to give additional discounts.

Keep in mind
Experts say that compared to the last 2 years, the discounts are lower this time. If you notice,
the message around discounts and offers has been very subtle and e-commerce companies are
now focusing more on sustainability.
Hence, consumers will, in a way, get less discounts than in the last couple of years, said
Ankur Bisen, senior vice-president, retail and consumer at the retail consultancy Technopak
Advisors.
The retailers know that consumers will buy and sensitivity to discounts is lower during the
festival season. There is a large segment that still buys around the festivals and we are

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seeing overall growth in consumption, said Devangshu Dutta, chief executive officer, Third
Eyesight, a retail consultancy firm.
But to make the most out of what is on offer, shop around. Some companies give additional
discounts if you buy through their app. So, you may get instant deals if you download the app
and then buy.
Check your internet connectivity to avoid any glitches. Also, by registering with the websites,
you can checkout faster.
Using credit cards and debit cards can give you additional discounts. Remember that no ecommerce platform offers additional discount for cash on delivery. Hence, choose the mode
of payment wisely. Clean your browsing history as most of the e-commerce firms use
algorithms to understand what you need and that could impact the prices.
Happy shopping.

Bibliography
1. Michael Vaz, Research Methodology in Commerce (2014), Manan Prakashan
2. http://www.wikipedia.com
3. http://www.businessdictionary.com/definition/research-methodology.html
4. http://teachingcommons.cdl.edu/cdip/facultyresearch/Typesofresearch.html
5. http://www.businessdictionary.com/definition/research-methodology.html
6. http://www.lifehacker.co.in/jugaad/8-Hidden-Credit-Card-Benefits-Thatll-Save-Youa-Lot-of-Cash/articleshow/54671337.cms

39

7. http://www.livemint.com/Money/AWHDYY8yxtONzy0wPVlOtJ/Shopping-in-onlinefestive-sales-Here-is-what-you-should-kn.html

40

SAMPLE QUESTIONNAIRE
QUESTIONNAIRE ON VIEWS OF CREDIT CARD ON SALE
The purpose of this study is to know the personal views of common man on current government. This
questionnaire asks about your PERSONAL beliefs of how the current government is. Your responses
will be anonymous and will never be linked to you personally. Your participation is entirely
voluntary. If there are items you do not feel comfortable answering, please skip them. Thank you for
your cooperation.

1. Name: _________________________________________________________________
2. Gender: Male Female Others
3. Qualifications: S.S.C.

H.S.C.

Graduate

Post Graduate

Others____________
4. Occupation: Service Business Professional Student Home Maker
Others
5. Age (in years): 18-25 26-35 36-45 46-55 55 & above
6. Income (per annum): 1L-2L 2L-3L 3L-5L 5L & above
7. Experience (in years): 0-5 6-10 10-15 15 & above
8. Do you use Credit card?: Yes No
9. Do you understand how Credit card works? Yes No
10. Do you think Credit Card helps in fast Transaction? Yes No
11. Do you think Credit Card helps in safe Transaction? Yes No
12. Which Banks Credit Card do you Use? HDFC ICICI CITY SBI AXIS
BOB KOTAK OTHERS_________________

41

Sr. Statement
No
.
13. Credit Card increases Sale.

Strongly Agree Neutra Disagree Strongly

Disagree
Agree
l

14. Credit Card Benefits the Users.

15. Credit Card increases Spending power.
16. Credit Card leads to Overspending.
17. Credit Card helps in fast transaction.
18. Credit Card is Used by lower income
people.
19. Credit Card is Used by Middle/ Higher
income people.
20. Indian mentality accepts Credit card as
Debt.
21. Suggestions, if Any:___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
THANK YOU.

42