CHAPTER 1

INTRODUCTION TO RESEARCH
Instructional Goals
1. To generate interest in research for the students by driving home the point that successful
managerial problem solving is nothing other than understanding and analyzing the situation at
hand, which is what research is all about.
2. To help students differentiate between research-based problem solving and going by gut-
feeling, the latter of which might sometimes help to solve problems in the short term, but
might lead to systemic long-term adverse consequences.
3. To create an appreciation in students that research is useful for solving problems in ALL
areas of business.
4. To help students develop an appreciation of the role of the manager in facilitating the
researcher or the consultants work.
5. To stress the importance of skill development in research, as opposed to mere gathering of
knowledge about research.
6. To emphasize that research and knowledge about research enhance managerial effectiveness.
7. To sensitize students to ethical conduct in business research.
Discussion Questions
1. Why should a manager know about research when the job entails managing people,
products, events, environments and the like?
The manager, while managing people, products, events, and environments, will invariably face
problems, big and small, and will have to seek ways to find long lasting, effective solutions. This can
be achieved only through knowledge of research even if consultants are engaged to solve problems.
2. For what specific purpose is Basic research important?
Basic research is important for generating and building upon the existing knowledge in the areas of
interest. It offers the foundation for applied research by which one can circumvent reinventing the
wheel.
3. When is Applied research, as distinct from Basic research, useful?
Applied research is useful in solving specific problems in particular situations where early action might
be needed to solve problems in organizations.
4. Why is it important to be adept in handling the manager-researcher relationship?
The manager who knows how to relate to researchers facilitates the problem solving process and
benefits the research team as well as the organization. One who is not adept at this will frustrate and be
frustrated during the research process and thereafter.
Being capable of handling the manager-researcher relationship is thus a big advantage and some of the
nuances of handling research teams are:
(i) Knowing how much and what information to give to the team;
(ii) Meaningful and purposeful interactions with the team members;
(iii) Stating from the outset what records of the company will and will not be accessible to the team members
and expressing the core values of the system.
5. Explain, giving reasons, which is more important Applied or Basic research?
Both are equally important. Without basic research, applied research cannot work as well, and if the
results of basic research are not applied, such research would be futile. Whereas basic research is the
foundation of knowledge, applied research is its practical application and helps to provide the
additional information base for theory building and further generation of knowledge.
6. Give two specific instances where an external research team would be useful and two other
scenarios where an internal research team would be deployed, with adequate explanations as to
why each scenario is justified for an external or internal team.
The answers will vary.
For the external team, the suggestions could be:
A. to help non-tech companies to build up sophisticated technology in their environment; (only those
with specialized knowledge of technology can help nontech companies).
B. to evaluate the successful and deficient operations of the company; (to avoid bias of internal team
members).
For the internal team, it could be:
A. to figure out how the companies affected by the September 11th disaster can rebuild themselves;
(internal team would be more knowledgeable about the company and could rebuild faster).
B. to solve the problem of consistent losses of a small division of a large company (only a small pocket
of a large company is involved and the situation can be rectified by the internal team).
7. Describe a situation where research will help you as a manager to make a good decision.
Again, the answers will vary. One scenario is that a work team fails to deliver results time and again.
8. Given the situations below, (a) discuss with reasons, whether they will fall into the category of
Applied or Basic research, and (b) for scenario 1 explain, with reasons, who will conduct the
research.
Scenario 1
Companies are very interested in acquiring other firms even when the latter operate in totally
unrelated realms of business. For example, Coca-Cola has announced that it wants to buy China
Huiyuan Juice Group in an effort to expand its activities in one of the worlds fastest-growing
beverage markets. Such acquisitions are claimed to work miracles. However, given the
volatility of the stock market and the slowing down of business, many companies are
not sure whether such acquisitions involve too much risk. At the same time, they also wonder if
they are missing out on a great business opportunity if they fail to take such risk. Some research
is needed here!
This is a general issue that relates to all or most companies contemplating acquisitions. Of
course, the results of the study are likely to be useful to, and applied by, all the concerned
companies. This could fall into the realm of basic or applied research, depending on who
sponsors the study. If one company or a consortium of companies investigates the issue to find
an answer for immediate application, then it will be applied research On the other hand, if a
Finance professor in a university undertakes the study as a matter of academic interest, it will
be basic research.
Either an individual such as a professor or a finance expert can do this basic research, or a
company or consortium of companies can undertake the applied research.
Scenario 2
Reasons for Absenteeism
A university professor wanted to analyze in depth the reasons for absenteeism of employees in
organizations. Fortunately, a company within 20 miles of the campus employed her as a
consultant to study that very issue.
The basic research aspiration of the professor has taken the form of applied research in this
particular system, where they would apply the findings of her research to solve the problem. No
doubt, the professor would continue her research in a variety of organizations to add to the
existing base of knowledge on absenteeism and continue the topic as a basic research project.
Scenario 3
Effects of Service Recovery on Customer Satisfaction
A research scientist wants to investigate the question: What is the most effective way for an
organization to recover from a service failure? Her objective is to provide guidelines for
establishing the proper "fit" between service failure and service recovery that will generalize
across a variety of service industries.
This will be a case of basic research, the purpose of which was to study the efficacy of different
service recovery strategies and add to the body of existing marketing knowledge.
 CHAPTER 2
SCIENTIFIC INVESTIGATION
Instructional Goals
1. To help participants comprehend that scientific research offers assurance to the manager that the
results of a study can be relied upon and further action can be taken at low risk.
2. To impress on the students that business research, however rigorously conducted, cannot produce
100 percent scientific results in terms of precise solutions.
3. To sensitize participants to being watchful about observing the different cues in the environment
which offer some idea of a gap in the desired and actual state of affairs.
4. To help students understand that applied research, though limited in generalizability, still has to be
scientific.
Discussion Questions
The first two questions are straightforward and the answers may be extracted from the text.
3. One hears the word research being mentioned by several groups such as research
organizations, college and university professors, doctoral students, graduate assistants working
for faculty, graduate and undergraduate students doing their term papers, research departments
in industries, newspaper reporters, journalists, lawyers, doctors, and several other professionals
and nonprofessionals. In the light of what you have learned in this unit, how would you rank the
aforementioned groups of people in terms of the extent to which they might be doing scientific
investigations? Why?
To the extent that any of the above groups conforms to the hallmarks of science, they would be doing
scientific investigation. It is quite possible that poor research is done by research agencies, and
excellent research is conducted by a graduate assistant. The ultimate test is the rigor of the research
which would lend itself to testability, replicability, accuracy and precision, generalizability, objectivity,
and parsimony.
Research organizations and research departments in industries engage themselves in both basic and
applied research and usually have the resources required to conduct scientific investigations using
rigorous data collection methods, sampling designs, and data analysis. Most professors in colleges and
universities are well trained to conduct scientific investigations, though their resources may not, in
most cases, be as plentiful as that made available in research organizations and research departments.
Because of restricted resources, professors may have to compromise somewhat on methodological
rigor (e.g. use a small sample) which might restrict the generalizability of their findings. However,
their research might otherwise be scientific. Applied researchers doing action-oriented research, are
somewhat restricted in even disseminating information about their findings due to the localized nature
of their inquiry which may not pass many of the criteria of the hallmarks of science. Doctoral
dissertations conducted under able guidance and supervision quite frequently make valuable
contributions to the body of existing knowledge. Much of this research is later published as journal
articles, and some get published as books because of their contributions to knowledge.
Students term papers are meant to be exercises in skill development for integrating materials and
communicating ideas in written form. Exceptional research papers, when refined and published, could
qualify for being termed as scientific investigations. Newspaper reporters and journalists may obtain
extensive primary and secondary data but their investigations are confined to a narrow range of current
incidents, events, or individuals, which are of passing interest with little generalizability to other times,
events or individuals. Hence, they cannot ordinarily be termed scientific investigations. Some
newspaper articles, however as for instance, economic and environmental investigations provide
data, analysis of data, and valid conclusions drawn there from, which might later be used as secondary
data by other researchers. These would be categorized as more scientific in contrast to articles or
editorials in the paper.
Academic journals usually publish articles that are scientific and some of the practitioner-oriented
articles are probably somewhat less scientific than the academic articles in terms of rigor and
generalizability. To the extent that lawyers, doctors, professionals and nonprofessionals present their
findings that have wide testability, replicability, generalizability, accuracy and precision, objectivity,
and parsimony, they will be scientific. However, if these investigations are confined to single cases,
incidents, or individuals, they cannot be called scientific investigations despite the fact that they may
be found useful.
4. Explain the processes of deduction and induction, giving an example of each.
The hypothetico-deductive method of research helps the researcher to deduce or infer from the results
of data analysis and hence is the deductive process. For example, if as a result of analysis of data
collected, one infers that the problem of turnover can be minimized by three important factors: (i)
flexible work hours; (ii) recognition of superior performance of workers through suitable merit pay
raises; and (iii) enriching certain types of jobs, this is the deductive approach. Induction is a process of
drawing inferences from observed phenomena which may subsequently be put to the test through
hypothetico-deductive method of research. For instance, if a manager observes that people residing at
distances beyond 50 miles from the workplace remain absent more frequently than those he knows to
reside close by, and infers thereby that distance is a factor in absenteeism, this is an inductive process.
5. If research in the management area cannot be 100 percent scientific, why bother to do it at all?
Comment on this statement.
Research in the management area dealing with human behavior cannot be 100 percent scientific.
However, such research is necessary and useful for detecting problems and coming up with solutions to
ensure that problems do not get out of control. Management research makes a valuable contribution
inasmuch that it can help organizations function smoothly and effectively and help managers and
individuals at all levels in organizations experience and enjoy a better quality of life.
6. Critique the following research done in a service industry as to the extent to which it meets the
hallmarks of scientific investigation discussed in this chapter.
The Friendly Telephone Company
Customer complaints were mounting, and letters of complaint regarding the problems they experienced
with the residential telephone lines were constantly pouring in at the Friendly Telephone Company.
The company wanted to pinpoint the specific problems and take corrective action.
Researchers were called in, and they spoke to a number of customers, noting down the nature of the
specific problems they faced. Since the problem had to be attended to very quickly, they developed a
theoretical base, collected relevant detailed information from a sample of 100 customers, and analyzed
the data. The results are expected to be fairly accurate with at least an 85% chance of success in
problem solving. The researchers will make recommendations to the company based on the
results of data analysis.
The hallmarks of science are purposiveness, rigor, testability, replicability, precision and confidence,
objectivity, generalizability, and parsimony. This study meets the basic criterion of purposiveness. It
cannot be called a rigorous study inasmuch as a theoretical framework seems to have been formulated
merely on the basis of conversation with a number of customers and no scientific data seems to have
been collected thereafter. For this reason, the replicability and generalizability criteria also suffer. With
customer complaints mounting, an 85% confidence level may not suffice. Unless we know the
theoretical base, we cannot be sure that the criterion of parsimony is met. All in all, this is a good
example of a non-scientific investigation.
7. Strictly speaking, would case studies be considered as scientific research? Why or why not?
Case studies cannot be considered scientific since they do not subscribe to most of the hallmarks of
scientific research. Though they may be purposive and parsimonious, they are not rigorous. Testability
and replicability are difficult and generalizability is virtually non-existent since each case situation is
unique.
8. What is Action Research? Describe a specific situation where action research will be
warranted.
Action research is undertaken when incremental planned changes are contemplated in a system. It is a
process of trial and error where tentative solutions are generated to test out how well they work.
Modifications are undertaken as each step in the change process and its consequences are evaluated.
An example would portray that of an organization wanting to attain a certain goal (shooting for a star)
and taking incremental steps to reach the goal, one step at a time. Specifically, a company could be
aiming for near zero turnover of its staff. It could try increasing the perks by first offering day care
facilities and watch its effects. Then it might give more vacation time, and then enhance pay, and so on.
The Dilemmas of Dorothy Dunning
Dorothy Dunning, Chief Production Manager, was on top of the world just two years ago. In her
nontraditional job, she was cited to be the real backbone of the company, and her performance was in
no small measure responsible for the mergers the institution was contemplating with other well-known
global corporations.
Of late though, the products of the company had to be recalled several times owing to safety concerns.
Quality glitches and production delays also plagued the company.
To project a good image to consumers, Dunning developed a very reassuring web site and made
sweeping changes in the manufacturing processes to enhance the quality of the product, minimize
defects, and enhance the efficiency of the workers.
A year after all these changes, the company continues to recall defective products! Creating a web site
and making sweeping changes has not produced the desired results. The real problem is undetected and
can only be identified through research. Maybe, the problem is not in the manufacturing processes, but
the low motivation of employees! A scientific research of the problem situation will help to
pinpoint the problem and solve it.

CHAPTER 3
 THE RESEARCH PROCESS: THE BROAD PROBLEM AREA AND
DEFINING THE PROBLEM STATEMENT
Instructional Goals
1. To clarify to the students that though the Research Process has distinct phases, some of the steps
follow an iterative, rather than a linear process. For example, the problem statement could be redefined
after the theoretical framework is conceptualized, after data analysis, and in fact, at any of the stages in
the process.
2. To illustrate that identifying the Broad Problem Area sets the stage for focusing on literature search
and subsequently clearly defining the problem.
3. To emphasize that preliminary data collection through interviews offers a great opportunity to
narrow down the problem and identify the prospective variables influencing it.
4. To develop interviewing and problem identification skills in students.
5. To create a mindset in students of viewing a problem as a gap between desired and actual state of
things in a system, and a solution as narrowing this gap.
6. To encourage students to develop bibliographies by accessing available on-line data bases.
7. To require students to write a good literature review in the areas of their research interests and to
make them aware that most class term papers could use this type of introduction to enhance their value.
Discussion Questions
1. How would you describe the research process?
The research process includes a series of steps in identifying the variables to be studied and the method
for conducting the study. The problem statement is a critical aspect. Though it is generated by having a
good feel for where the gap between a desired state and the actual state exists in the system, the
problem statement can be repeatedly honed and made more precise at various stages in the research
process.
The theoretical framework and hypotheses are important parts of the research process since these focus
on finding the answers to the research question. Good research design helps in finding reliable answers
to the problem that is investigated.
2. Explain the preliminary data collection methods.
Preliminary data can be obtained through interviews and/or through literature search. These processes
help to define the problem statement precisely and to formulate the theoretical framework. Interviews
conducted at various levels are aimed at obtaining background information on the system that is
investigated, the structure and processes that operate in the system, the perceptions, attitudes, and
behaviors of the people in the institution, and other related matters. The literature search will be based
on the factors that seem pertinent to the problem that is investigated. After locating all the references in
the area, the work relevant to the problem at hand will be studied and a literature review written up.
3. Why is it important to gather information on the background of the organization?
The background information of the company is likely to offer the researcher several clues on when the
problems that are currently experienced by the company could have started and how they could have
originated. One can also assess how the other companies operating in similar types of environment in
the industry might be different and in what way. Since multiple factors can influence the problem, the
possibility that some of the background features of the company are influencing the situational problem
cannot be ruled out. Additionally, the background factors offer the researcher a good idea of how the
philosophy and culture of the company are shaped, and to what extent they can be changed, if
necessary.
Collecting background information also helps to focus on critical issues and raise appropriate questions
during the interview process. Examples of this are provided in the book.
4. Should a researcher always find information on structural and job characteristics from those
interviewed? Give reasons for your answer with examples.
It is almost always advisable for the researcher to gather some information on the structure and job
characteristics even though it may appear that the problem may not be related to either of these factors.
For example, the problem of not meeting the production deadlines may be directly related to the
delayed deliveries of the raw materials by the suppliers. In such a case, the tendency might be to focus
the data collection mainly as it relates to suppliers. However, interviewing the employees and
ascertaining their reactions to their job, work-flow interdependencies, structure, and the like, might
offer the solution that deadlines can be met even with delayed raw material supplies by changing the
workflow patterns, or other structural aspects. It is for such reasons that some time should be spent on
finding the job and structurerelated information.
There is also another way of looking at this. Human beings operating in organizations face a multitude
of factors surrounding them, many of which, directly or indirectly, influence their operating
effectiveness. The structural factors such as policies and procedures, reward systems and job factors do
play a critical part in how outcomes for the organization are achieved. Because of this, it certainly
helps to get a feel for these factors. Of course, there is no need to spend a great deal of time on these
unless there is some indication that there could be problems in these areas.
As an example, it is possible that the age of the machinery could be blamed for low production, and
sophisticated machinery might be installed without any appreciable difference in the results. Further
investigation might throw light on the fact that the current incentive system does not encourage high
levels of production, and this fact, rather than the type of machinery used, is the problem. Not finding
this before investing heavily on new equipment would be a costly mistake!
5. How would you go about doing a literature survey in the area of business ethics?
I would first obtain all the references and abstracts relating to the area of business ethics through on-
line systems, then organize the studies based on the particular aspects they address, and finally, write
up a review of the available literature.
6. What is the purpose of the literature survey?
Basically to make sure that none of the important variables are left out in the study and to generate a
parsimonious set of factors which would help to explain or predict the phenomenon under
investigation.
7. Why is appropriate citation important? What are the consequences of not giving credit to the
source from which materials are extracted?
Most published articles are copyrighted. There are rules as to how much can be quoted from the
original text without obtaining the journals and the authors permission. If permission is not obtained
for quotes exceeding the authorized limit, the individual quoting the material is liable to be sued for
plagiarism and can even be expelled from the professional society to which he or she belongs.
8. The problem definition stage is perhaps more critical in the research process than the
problem solution stage. Discuss this statement.
Finding the right solution to an incorrectly identified problem helps no one because the original
concerns will still continue to exist. Hence, pinpointing where exactly the gap lies, for which a solution
is needed, is critical.
9. Why should one get hung up on problem definition if one already knows the broad problem
area to be studied?
Since a problem statement is a clear, precise, and concise statement of the issue to be researched, it
offers a focus and direction to the research. In other words, it sets out the exact purpose of the research
and clearly states the question to which we are trying to find an answer. The broad problem area,
however, due to its vagueness and wide scope of the issues that could be involved, leaves the focus of
the research undetermined, and hence offers no sense of purpose or direction to the research. To put it
differently, a broad problem area does not highlight the specific problem that exists. Unless the precise
problem is identified, a solution to it cannot be found.
This is akin to an individual going to a doctor saying he is losing weight (broad problem). Unless the
physician can locate the reason for this weight loss (define the problem), the situation cannot be
rectified.
10. Offer a clearly focused problem statement in the broad area of corporate culture.
What constitutes corporate culture? Or, How does corporate culture influence employee performance?
11. After studying and extracting information from all the relevant work done previously, how
does the researcher know which references, articles, and information should be given
prominence in the literature survey?
The mass of information extracted from the various published research and technical and other reports,
will indicate to the researcher the key variables that need to be considered in the particular situation
where the problem has been identified.
The choice of the variables for inclusion in the study will be a function of the frequency with which
they are repeatedly found to be significant in the various research studies, the relevance of the variables
to the current research context, and considerations of parsimony. Having decided on the key variables
for inclusion in the study, the researcher can then integrate the information found in the studies that
discuss these variables. Other studies which had equally relevant variables but which had to be
excluded from the current research for certain valid reasons should also be briefly discussed. The
reasons for their exclusion should be explicitly stated in the literature survey section.
12. Below is the gist of an article from Business Week. After reading it, (a) identify the broad problem
area, (b) define the problem, and (c) explain how you would proceed further.
While Chryslers minivans, pickups, and sports utilities take a big share of the truck market, its cars
trail behind those of GM, Ford, Honda, and Toyota. Quality problems include, among other things,
water leaks and defective parts.
a. The broad problem is that the Chrysler cars are lagging behind in market share.
b. Problem statement: How can the market share of Chrysler cars be improved?
c. It is best to interview the users of GM, Ford, Honda, and Toyota car users and obtain from them their
reactions both positive and negative - to the cars they use and why they prefer them. Similar
reactions from the users of Chrysler cars should also be gathered. One should proceed further based on
the analysis of these responses.
13. Comment on the following:
From 1932 to 1972, a research study was conducted in Tuskegee, Alabama, to chart the effects of
withholding treatment to African American men with syphilis.
This research smacks of a totally unacceptable and unethical approach to the investigation.
14. What is the problem statement in the following situation?
Employee Loyalty
Companies benefit through employee loyalty. Crude downsizing in organizations during the recession
crushed the loyalty of millions. The economic benefits of loyalty embrace lower recruitment and
training costs, higher productivity of workers, customer satisfaction, and boost the morale of fresh
recruits. In order that these benefits may not be lost, some companies, while downsizing, try various
gimmicks.
Flex leave, for instance, is one. This helps employees receive 20% of their salary, plus employer-
provided benefits while they take a 6-12 month sabbatical, with a call option on their services. Others
try alternatives like more communication, handholding, and the like.
Problem statement. How can employee loyalty be maintained during periods of downsizing?
15. How would you define the problem in the following case?
Accounting Gets Radical
The GAAP (Generally Accepted Accounting Principles) do an unacceptable job of accounting for the
principal activities of the Information Age companies. Today, investors are in the dark because the
accounting is irrelevant. The basic purpose of accounting is to provide useful information to help
investors make rational investment, credit, and similar decisions, but todays most important assets and
activities intellectual capital and knowledge work are totally ignored. Professor Robert A. Howell
wants to reform the accounting system with the goal of making clear the measurement of how
companies produce cash and create value.
Problem Definition: What is the best way to improve the accounting system in the Information Age
that would furnish useful data and information to investors to make rational decisions?
Practice Projects
Answers will vary.

Additional Topics For Bibliography &

Literature Survey
Absenteeism Financial Markets
Alienation Interpersonal Communication
Appraisal Systems Leverage Buyout
Conflict Price Wars
Control Systems in Organizations Role Ambiguity
Communication Role Conflict
Competence Sense of Competence
Drug Abuse and Alcoholism in Industry Stress
Executive Stress Tax Reforms
 CHAPTER 4
THE RESEARCH PROCESS: THEORETICAL FRAMEWORK
AND HYPOTHESES DEVELOPMENT
Instructional Goals
1. To clarify the differences in the four types of variables dependent, independent, mediating, and
moderating. Students find it particularly difficult to differentiate between mediating and moderating
variables.
2. To elucidate the five basic components of the theoretical framework emphasized in the book and to
explain that paying attention to these, at this stage, enables students to generate well-developed,
testable hypotheses at the subsequent step.
3. To stress the importance of formulating directional alternate hypotheses whenever it is possible.
4. To require students to work on the 14 small exercises interspersed in the chapter, at the appropriate
times, and to discuss these in class as the lectures and discussions on the different types of variables
progress.

Discussion Questions
1. Because literature survey is a time-consuming exercise, a good, in-depth interview should
suffice to develop a theoretical framework. Discuss this statement.
Literature survey is an important though time-consuming exercise and has to be done for several
reasons. Even an in-depth interview may not surface some important factors that may be relevant for
finding answers to the problems. In other words, certain critical factors may be overlooked both by the
interviewee and the researcher, in which case no solution to the problem will emerge even after the
research findings are implemented. A literature review will sensitize and make the researcher aware of
all the important factors that have been found to be related to the problem in past studies. It will also
help the researcher eliminate trivial factors or variables from the investigation, thus ensuring
parsimony and increasing effectiveness. Secondly, a good documentation of the previous work done in
the area not only lends credibility to the results found, but also adds to the scientific quality of the
research by increasing replicability, generalizability, and parsimony. Finally, good literature surveys,
and a theoretical framework formulated on the basis of past studies, contribute to the growth of
scientific knowledge, rather than research becoming a futile exercise in reinventing the wheel.
2.Good models are complex. Whats more, a good model should include both moderating and
mediating variables. Discuss this statement.
There is no relationship between the quality of a model and the complexity of a model. Recall that
parsimony is one of the hallmarks of scientific research: Simplicity in explaining the phenomena or
problems that occur, and in generating solutions for the problems, is always preferred to complex
research frameworks that consider an unmanageable number of factors.
A good theoretical framework identifies and defines the important variables in the situation that are
relevant to the problem. Moderating and mediating variables may or may not be important to the
problem. A good model does not necessarily include moderating and mediating variables.
3. Academic researchers usually develop more complex and elaborate models than applied
researchers. Discuss this statement.
No. The complexity of a model is not related to type of research in terms of basic versus applied
research. Again, parsimony is one of the hallmarks of scientific research. The term scientific research
applies to both basic and applied research.
4. In an applied research context you do not need to explain the relationships between the
variables in your conceptual model. Discuss this statement.
A theoretical framework is the foundation of hypothetico- deductive research as it is the basis of the
hypotheses that you will develop. A theoretical framework represents your beliefs on how certain
phenomena (or variables or concepts) are related to each other (a model) and an explanation on why
you believe that these variables are associated to each other (a theory). Both the model and the theory
flow logically from the documentation of previous research in the problem area. Integrating your
logical beliefs with published research, taking into consideration the boundaries and constraints
governing the situation, is pivotal in developing a scientific basis for investigating the research
problem.
A good theoretical base thus adds rigor to a purposive study. Rigor connotes carefulness,
scrupulousness, and the degree of exactitude in research investigations.
Rigor is one of the hallmarks of scientific research which pertains to both basic and applied research.
5. There is an advantage to stating the hypothesis both in the null and the alternate; it adds
clarity to our thinking about what we are testing. Explain.
The null hypothesis is set so that the alternate hypothesis becomes testable. When the observed Z value
is greater than or equal to the critical Z value for a given confidence level (usually 95 percent), then we
know that we ought to accept the alternate hypothesis. If, however, the critical Z value is more than the
observed Z value for a given level of confidence, we would be inclined not to reject the null but to
reject the alternate. Setting up the null thus helps us to understand that though the null hypothesis itself
is not testable, it helps to decide whether we should accept or reject the alternate.
6. It is advantageous to develop a directional hypothesis whenever we are sure of the predicted
direction. How will you justify this statement?
In a directional hypothesis we might conjecture, on some sound and logical basis, that variable X is
greater than variable Y. In the non-directional hypothesis we merely conjecture that X and Y will not be
equal, meaning that either can be greater than the other. The directional hypothesis involves a one-
tailed significance test, and the non-directional involves a two-tailed test. To reach a level of
significance p=.05, the critical value of the observed Z should be 1.64 for a one-tailed test, and 1.96 for
a two-tailed test. Supposing the true observed Z value in a particular case is 1.72, then we would accept
the hypothesis if it was stated directionally, and reject it if it was stated nondirectionally.
In a sense, the two-tailed test is more conservative but a hypothesis that is logically derived as a one-
tailed test would be rejected if it is non-directionally stated, and we would be incorrectly rejecting a
hypothesis that is true, thus committing a Type II error. It is for this reason that we should state a
directional hypothesis when we are sure of the predicted direction based on good theory and logic.
7. In recent decades, many service markets have been liberalized. For this reason, incumbent
service firms are facing new competitors and must address customer switching. You are
discussing the determinants of customer switching with a service firm manager. She believes that
product quality, relationship quality, and switching costs are important determinants of
customer switching.
You agree with the contention that product quality and relationship quality are important
determinants of switching. However, you believe that switching costs moderates the relationships
between product quality, relationship quality and customer switching.
Provide arguments for this contention.
Switching costs include the time, money and effort the customer perceives when changing from one
provider to another. We expect that switching costs do not directly affect customer switching. That is,
we posit that a customer will not switch service providers because the switching costs are low or high.
Instead, we propose that the negative relationship between product and relationship quality and
customer switching is stronger in situations with low switching costs. When switching costs are low
customers switch service providers when the relationship quality and product quality is low. However,
when switching costs are substantial, customers are likely to maintain business relationships with
existing service providers even when the relationship and product quality is low.
8. For the following case titled Sleepless Nights at Holiday Inn (published in Business Week and
adapted here):
a. Identify the problem
b. Develop a theoretical framework
c. Develop at least four hypotheses.
Sleepless Nights at Holiday Inn
Just a few years ago, Tom Oliver, the Chief Executive of Holiday Hospitality Corp., was struggling to
differentiate among the variety of facilities offered to clients under the Holiday flagship the Holiday
Inn Select designed for business travelers, the Holiday Inn Express used by penny pinchers, and the
Crowne Plaza Hotels, the luxurious hotels meant for the big spenders. Oliver felt that revenues could
be quadrupled if only clients could differentiate among these.
Keen on developing a viable strategy for Holiday Hospitality which suffered from brand confusion,
Tom Oliver conducted a customer survey of those who had used each type of facility, and found the
following. The consumers didnt have a clue as to the differences among the three different types.
Many complained that the buildings were old and not properly maintained, and the quality ratings of
service and other factors were also poor. Furthermore, when word spread that one of the contemplated
strategies of Oliver was a name change to differentiate the three facilities, irate franchises balked. Their
mixed messages did not help consumers to understand the differences either.
Oliver thought that he first needed to understand how the different classifications would be important
to the several classes of clients, and then he could market the heck out of them and greatly enhance the
revenues. Simultaneously, he recognized that unless the franchise owners fully cooperated with him in
all his plans, mere face lifting and improvement of customer service would not bring added revenues.
Problem Statement:
How can brand awareness be brought about to increase the revenues of Holiday Inn?
Theoretical Framework
Only after Oliver has understood how the different classifications would be important to the three
classes of intended clients through survey data, can a meaningful theoretical framework be developed.
But, based on what information is currently available, the following framework can be attempted.
The nature of the building facilities, how the buildings are maintained, and the quality of service
provided the three independent variables would differentiate the three distinct types of Holiday Inn
facilities and increase brand awareness among the users. The better the buildings, the better their
maintenance, and the more differentiated the services provided, the greater will be the perceived
differences in the three types of Holiday Inn facilities by clients. However, if the Franchise owners do
not cooperate in highlighting these differences to clients, no amount of the improvements made in the
independent variables will help to increase the brand awareness. It is only when the Franchise owners
actively promote the idea of differentiated facilities- the moderating variable can the brand awareness
be increased, and as a consequence, the revenues.
Hypotheses
1. The more differentiated the building facilities, the more the brand awareness.
2. The more differentiated the maintenance of the facilities, the more the brand awareness.
3. The more differentiated the services to the clients, the more the brand awareness.
4. Differentiated building facilities, maintenance, and service will influence brand awareness only if
the Franchise owners cooperate and actively promote the idea of differentiation. If they dont, no
amount of differentiation of the three independent variables will help clients to understand the
differentiation (increase brand awareness).
9. Develop a conceptual model for the scenario below.
Incidence of smoking in movies has started to increase again, after having declined for several
decades. According to the National Cancer Institute smoking is seen in at least three out of four
contemporary box-office hits. Whats more, identifiable cigarette brands appeared in about one-
third of all movies in 2008. Exposure to smoking in movies is an important predictor of
adolescent smoking initiation:
smoking in movies has been shown to affect adolescents intentions to start smoking. In turn, the
intentions to start smoking are determined by a more positive attitude toward smoking after
seeing a film character smoke. Recent research has revealed that the relationship between seeing
a film character smoke and the attitude toward smoking is stronger when a persons
identification with a film character increases. These findings are consistent with social learning
theory, which predicts that attitudes and behaviors are modeled by observing the behaviors of
others.
Exposure to smoking in movies Attitude toward smoking Smoking intentions Identification
with a film character
10. Develop a theoretical framework for the following case.
Once given, perks are extraordinarily hard to take away without sapping employee morale. The adverse
effects of these cuts far outweigh the anticipated savings in dollars. Research has shown that when the
reason behind the cuts is explained to employees, morale does not drop.
Perks (IV) boost the morale of employees (DV) while, understandably, withdrawing the same saps it.
However, if the reasons for the cuts in perks (MV) are explained to the employees, they see the logic
behind the cuts and their morale is not affected. Thus, only when the reason for the cut in perks is
explained to employees, does their morale not sag.
11. Product placement is a form of advertising in which a companys products and name are
intentionally positioned in motion pictures, television programs, radio broadcasts, and the like.
Product placement can take many forms: verbal mentions in dialogue, actual use by a character,
or visual displays (for instance a company logo on a vehicle or billboard). Develop a theoretical
framework on this issue, based on a review of the current literature. This framework should
include:
- a specification and definition of an appropriate dependent variable;
- a conceptual model that describes the relationships between the dependent variable, at least one
independent variable, and either a moderating or a mediating variable;
- a theory on why you would expect these relationships to exist;
- an appropriate number of testable hypotheses.
Answers will vary.
Answers to Exercises 4.1 To 4.14 in the Text Book
Exercise 4.1
The dependent variable is organizational performance because it is the primary variable of interest to
the applied researcher, who wants to increase the commitment of the members in the bank.

Exercise 4.2
The dependent variable is product desirability.

Exercise 4.3
VARIABLE LABEL REASON
Production Dependent variable Main variable of interest Supervision Independent variable Help
to explain the variance in production Training Independent variable
Explanation
Production is the dependent variable because the manager seems to be interested in raising the level of
production of workers. The manager wants to explain the variance in production levels through the two
independent variables supervision and training.

Exercise 4.4
VARIABLE LABEL REASON
Gains Dependent variable Variable of primary interest Buying at right time Independent
variable Explain the variance in gains Selling at right time Independent variable (i.e. benefit)
Explanation
Gains or benefit from stock trading is the dependent variable. Buying stocks at the opportune time and
selling them likewise, are the two independent variables because these two are expected to influence
the gains (benefits) derived from stock trading. That is, when stocks are bought and sold at the right
times, there will be gains or benefits derived.
Exercise 4.5
VARIABLE LABEL
Productivity Dependent variable Off-the-job classroom training Independent variable Age
Moderating variable
Explanation
The main variable of interest to the manager is productivity - the dependent variable - the variance in
which is expected to be explained by the independent variable, off-the-job classroom training. The
more off-the-job training given to the workers, the greater their productivity. However, only those who
are under fifty years of age would increase their productivity with increased off-the-job training. This
will not be true for those who are over fifty years of age since their interest in classroom training and
the like will not be high. Thus age is the moderating variable.

Exercise 4.6
VARIABLE LABEL
Sales performance Dependent variable
Intensity of E-Business adoption Independent variable
Market uncertainty Moderating variable

Exercise 4.7
Situation 1
Motivation to Work as an Independent Variable
The performance of employees is influenced by their motivation to work.
Situation 2
Motivation to Work as an Intervening Variable
Employees perform better when they are given challenging jobs, because such jobs tend to motivate
them to work.
Situation 3
Motivation to Work as a Moderating Variable
The performance of employees with low levels of motivation to work will not improve despite
increases in job challenge.

Exercise 4.8
VARIABLE LABEL
Problems Dependent variable
Following Accounting Principles Independent variable
Confusion Intervening variable
Experience in Book Keeping Moderating variable
Explanation
The extent to which accounting principles are followed the independent variable explains the
variance in the dependent variable problems for the organization. If individuals do not follow the
accounting principles, confusion ensues (intervening variable that results as a consequence of the
independent variable at time T2). But the failure to follow the principles will result in confusion and
problems only for those individuals who have no experience in book keeping. Those who have
knowledge of book keeping will figure out ways to deal with the situation. Hence, experience is the
moderating variable.
Exercise 4.9
VARIABLE LABEL
Morale Dependent variable
Working conditions Independent variable
Pay scale Independent variable
Vacation benefits Independent variable
Side income Moderating variable
Happiness Intervening variable
Explanation
The independent variables of improved working conditions, better pay, and vacation benefits influence
the dependent variable, morale. When these three independent variables are high in a work situation,
then morale is also high. However, increased pay will not increase the morale of all workers. Only
those who do not have good side incomes will experience greater happiness (the intervening variable)
when their pay is increased, and their morale also increases. For others, the relationships between pay
and morale will not hold good. The intervening variable, happiness, is a function of high pay (for those
without side incomes). It clarifies the relationship between pay and morale.
Exercise 4.10
Problem Statement
What are the benefits of using avatars as company representatives on commercial Web sites?
Conceptual Model
Involvement
Informative Site Satisfaction with
Avatar Presence the Company
Entertaining Site Purchase Intentions
Exercise 4.11
Problem Statement
Can cancer patients successful recovery be improved through quick and correct diagnosis, carefully
following the doctors instructions, and keeping the patients in peaceful and quiet surroundings?
Theoretical Framework for Exercise 4.11
Cancer patients successful recovery is of main interest to the study, and successful recovery is
expected to be predicted by three independent variables. Thus, recovery is the dependent variable in the
study and the three independent variables are:
(1) quick and correct diagnosis by the doctor; (2) careful following of instructions
by the nurses; and, (3) peace and quiet in the vicinity. An intervening variable in the situation is rest,
and a moderating variable is the stage of cancer.
When the disease is quickly and correctly diagnosed by the doctor as soon as the patient comes in for
the initial check-up, the chances of the patient being successfully cured of cancer are greater, since the
cancerous growth would then be arrested in time. Also, when the nurses carefully follow the
instructions of the doctor and administer to the patient the proper medicines at the right time, give them
the diet as prescribed by the doctor, etc., the patients will recover without relapses. The human system
needs certain medical, dietary and other aids to recover, which need to be administered at the right time
and in the right quantities, and when this is done, the patients recovery is almost assured. Peace and
quiet in the vicinity of the patients will allow the patient to rest properly, without any disturbances,
which in turn, would help the successful recovery of the cancer patient since the body would now have
a chance to build new healthy cells through the rest created by the peaceful surroundings. Thus, rest is
an intervening variable, which is facilitated by the peaceful and quiet surroundings.
While the three independent variables of diagnosis, following instructions, and peace and quiet would
help the patients to successfully recover from cancer, these three will not influence the recovery for
those patients who come for treatment at advanced stages. In other words, only those cancer victims
who come for treatment at the early stages of the disease would be helped to recover successfully when
the doctor diagnoses the disease correctly and quickly, the nurses follow the doctors instructions
carefully, and the patients are kept in quiet and peaceful surroundings.
Those coming for treatment while in the advanced stages will not be helped.
Exercise 4.12
1. Ho: There is no relationship between working conditions and the morale of employees.
HA: If working conditions are improved, then the morale of the employees will also improve.
2. Ho: There is no relationship between vacation benefits and employees morale.
HA: Better vacation benefits will improve employees morale.
3. Ho: There is no difference in the relationship between pay and happiness among those who have side
incomes and those who do not.
HA: Only those who do not have side incomes will become happier if their pay is increased.
4. Ho: There is no relationship between happiness and morale.
HA: Happiness and morale are positively correlated.
5. Ho: Working conditions, vacation benefits, and pay have no influence on the morale of employees.
HA: Working conditions, vacation benefits, and pay all have a positive influence on morale.
Exercise 4.13
Problem Statement
How can the job performance (output) of the employees be increased through enriched jobs and
rewards?
Theoretical Framework
Job performance is the main variable of interest since the production manager is interested in
increasing the output levels of employees. Job performance is, thus, the dependent variable. Job
enrichment and rewards are the two independent variables which directly influence performance
through the intervening variables of motivation and satisfaction. However, the valence of rewards to
the recipient moderates the relationship among rewards, motivation, satisfaction and performance.
When the jobs done by the workers are such that they are more challenging and utilize all the skills that
the workers have, then the workers will be both satisfied that they are able to use the skills they
possess, and be motivated to engage in work behavior. When employees are thus motivated and
satisfied, their performance levels will be high. Also, motivation and satisfaction will mutually
influence each other. That is, when satisfaction is high, motivation will be high, and the higher level of
motivation will, in turn, increase satisfaction. Thus, the two will mutually influence each other, and
both together will influence performance. If, on the other hand, the job is dull and repetitive,
employees will not derive any satisfaction at the workplace since they will be bored, and their
inclination to engage in work behaviors (motivation) will be low.
When employee satisfaction and motivation are low, their levels of output (performance) will also be
low.
Increased rewards will also offer employees both satisfaction and motivation, because employees will
know that the effort put in by them is recognized and rewarded. This increased satisfaction and
motivation will spur them on to perform even better since they will now have more zeal and
enthusiasm. However, the relationship between increased rewards and the intervening variables of
motivation and satisfaction will hold good only for those who desire and value the rewards dispensed
by the organization. Those recipients who do not find the rewards valuable or desirous will not be
turned on by the rewards, and their levels of satisfaction, motivation, and performance will not be
enhanced. The valence of rewards thus moderates the relationship between rewards and the intervening
and dependent variables.
Hypotheses
HA1: If the job is enriched and utilizes all the skills possessed by the employee, then employee
satisfaction will be high.
HA2: If the job is enriched and utilizes all the skills possessed by the employee, then employee
motivation will also be high.
HA3: There will be a positive correlation between satisfaction and motivation.
HA4: Greater rewards will influence motivation and satisfaction only for those employees who find the
rewards valent; not for the others.
HA5: Satisfaction and motivation will positively influence performance.
HA6: The more enriched the job and the greater the skills utilized by the job, the higher the level of
employee performance.
Exercise 4.14
Problem Statement
How can minority women be retained in organizations?
Theoretical Framework
Retention of minority women is the main variable of interest to the study, and hence, is the dependent
variable. The independent variables that are likely to explain the variance in the retention of minority
women are: (a) influential mentors willing to help, (b) informal networking with influential colleagues,
(c) role models, and (d) high visibility projects. The intervening variable is satisfaction.
When influential officials in the system are willing to serve as formal or informal mentors minority
women can learn the ropes for progressing in the organization.
When women can network with influential colleagues, they will learn a lot about the political system
of the organization and know where and when there are opportunities to advance. Role models help
women to emulate the characteristics necessary to climb the ladder of success in the system. When
women work on high visibility projects, they attract the attention of those in power and are likely to be
promoted to higher level positions.
When the above four factors are absent in the work environment, dissatisfaction results due to the
frustration of not having avenues for advancement.
Dissatisfaction, which surfaces as a function of the absence of the four independent variables, is then
the intervening variable which enables us to see why women quit the organization. It should, however,
be noted that not all dissatisfied minority women leave the organization. Only those who have the
resources and confidence to start their own business leave the institution. The others remain trapped in
the system.
Thus, wherewithal to start own business becomes the moderating variable.
More Exercises on Theoretical Framework (with Answers)
Note: These can also be used as exam questions.
I. Develop a theoretical framework for the following situation and state one testable hypothesis in
the null and the alternate.
A school administrator is interested in finding how the threatened teachers strike can be averted. He
knows that pay demands and the classrooms physical environment are the two main issues in the
situation. He, however, feels that these two are not major concerns for the teachers who are extremely
dedicated to teaching.
Answer
Theoretical Framework
Since the administrators main concern is about the strike, teachers strike is the dependent variable,
and an interest is evinced in averting it. Pay and the physical environment of the classroom are the two
independent variables, which influence the strike situation. The greater the pay demands made by the
teachers, the greater the possibility of a strike, since the school administration will not easily give in to
a high pay hike which would bring any current negotiations between the two parties to an impasse and
would precipitate a strike. The more uncongenial the classroom physical environment, the more
difficult it will be for teachers to do an effective job in the classroom, and hence the greater the
possibility of teachers going on strike to have the situation rectified. Thus, both pay demand and
classroom physical environment would explain the variance in the probability of teachers going on
strike. However, this relationship between the independent variables and the dependent variable will be
true only for those teachers who are not dedicated to teaching for its own sake. The truly dedicated
teachers would be more concerned about doing a good job despite the hardships faced by them, and
hence for them, the pay demands and the classroom environment will not be factors influencing their
decision to join the strike.

Hypothesis:
H01: Dedication to teaching will not alter the relationship between the independent variables of pay and
classroom environment and the dependent variable of teachers decision to go on strike.
HA1: Only for those teachers who are not truly dedicated to teaching, will pay considerations and
classroom environment be factors that would influence their decision to go on strike.
2. A factory foreman is concerned about the high rate of absenteeism of his workers every Monday
morning. His hunch is that the workers drink too much during the weekend, have a hangover on
Monday mornings and cannot attend work. He also feels that the high rate of pay they receive allows
them to become lethargic. From an informal talk with his employees, the foreman finds that almost
every single worker drinks during the weekend. However, some said that they could handle drinks very
well and never had hangovers. Ha! Now I know, mused the foreman, only those who do not have an
adequate tolerance level for alcoholic beverages suffer the effects of hangover and remain absent on
Monday mornings. Of course, high pay may also be a reason.
Given the above situation, answer the following:
a. What would be the problem statement?
b. Evolve a Theoretical Framework.
c. Develop three hypotheses for testing.
ANSWER:
a. Problem Statement
Would pay and drinking influence absenteeism?
b. Theoretical Framework
Absenteeism is the dependent variable, the variance in which is to be explained by the two independent
variables, pay and weekend drinking. The more the pay received by workers, the more they tend to be
lethargic (intervening variable), spending their time lazing around in the house, since they have enough
money to take care of their immediate needs without working. They thus tend to remain absent.
Excessive drinking during the weekend also contributes to absenteeism on Monday mornings, since the
hangover from the weekend drinking (the intervening variable) would persist until late on Monday,
which would prevent them from going to work.
However, for those who have a high tolerance for liquor, hangover will not be a problem. In other
words, tolerance for drinks is the moderating variable which has a contingent effect on the relationship
between the extent of drinking and the extent of hangover people have. When people have hangovers,
they will tend to remain absent since they will not be fit to perform their normal duties. In sum, pay
and weekend drinking will have an effect on the absenteeism of workers. However, only for those who
have a low tolerance for liquor, will more drinking during the weekends result in their experiencing
hangovers on Mondays, which would prevent them from attending work. Those who have high
tolerance levels will not experience hangover and will not remain absent from work.
c. Hypotheses:
HA1: The higher the pay of the worker, the higher will be the rate of his absenteeism from work.
HA2: Only for those who have a low tolerance for liquor, will heavy drinking lead to hangover, not for
others.
HA3: Hangover due to heavy weekend drinking and absenteeism will be positively correlated.
3.a. With the following variables, develop a theoretical framework, using one of the variables
(appropriately) as an intervening variable, and one as a moderating variable.
1) Job level (i.e., managerial versus non-managerial levels);
2) Loyalty (extent of loyalty felt for the organization in which the employee works);
3) Age (of employee);
4) Length of service (of employees);
5) Pride in working for the organization;
6) Organizational commitment (involvement with the system);
7) Lust for job hopping.
b. Develop three hypotheses based on the theoretical framework, one of which should include the
intervening variable, and another the moderating variable.
c. What is the problem statement for which you have developed your theoretical framework?
Answer:
a. Theoretical Framework
The four independent variables - job level, age, length of service, and pride in working for the
organization - influence the organizational commitment of the members in work systems. Persons
holding highly responsible positions tend to get committed to the organization since they help shape
the organization through their policies and decision-making. Generally, older persons tend to be more
loyal to the place where they work since opportunities to move on to other organizations become
limited. Those who have served for a long time in the organization would also be more loyal to the
organization (IV) and hence get committed to it. If one is proud of being a member of the organization,
naturally the individuals loyalty to the system (of which he is a part) would increase. We can also
expect to find a correlation between length of service and employees pride in working for the
organization. The longer employees work for the organization, the more they would tend to feel that
they are an integral part of the organizational system and feel they belong to it. These feelings, in turn,
will develop a sense of loyalty and attachment to the system. Once loyalty is developed, commitment
to stay in the organization and doing ones best for the organization would increase. However, high
position, pride in working for the organization, age, and length of service, would not be instrumental in
developing the organizational loyalty of such members as have a great adventurous spirit and a great
desire to move from one job to another in different organizations. Thus, lust for job hopping would be
the moderating variable which influences the relationship between the independent variables and the
intervening variable, and thus, the relationship between the independent and the dependent variables.
b. Hypotheses:
HA1: Only for those employees who do not have a lust for job hopping, would job level, age, length of
service, or pride in working for the organization be correlated to their feelings of loyalty for the
organization.
HA2: The more the employees are loyal to the organization the stronger will be their sense of
commitment to the organization.
HA3: The longer people work for the organization, the more their feelings of pride in working for the
organization are likely to be.
c. Problem Statement:
What factors would account for employees commitment to the organization?
4. Develop a theoretical framework and three hypotheses for the following statement. People high in
their Need for Achievement (N.Ach) and who have high Protestant Work Ethic values, will be highly
motivated to work. When they get motivated, they also slowly become involved in their jobs.
Answer:
Theoretical Framework
N.Achievement and work ethic values are the two independent variables that would account for the
variance in the dependent variable of interestjob involvement.
This relationship could be better understood through the intervening variable motivation. That is,
those who have a high need to achieve and accomplish things in their jobs, would be motivated to
engage in work behavior, which in due course of time will get them so absorbed in doing their jobs that
their egos will be tied to the job. Likewise, those who have high work ethic values, would feel that
unless they work, they are no good, and hence would keep engaging in work behavior. This again is
bound to increase their level of motivation to work. These frequent interactions with work will again
get them ego-involved in their work. Thus, N.Ach and work ethic values will motivate people to work,
which in turn would get them ego-involved in work.
Hypotheses
HA1: The higher the Need for Achievement, the greater will be the level of motivation.
HA2: The greater the Protestant work ethic values people hold, the greater will be their level of
motivation to work.
HA3: The greater the motivation in individuals, the greater their level of job involvement.
5. Here are eight variables:
1) Understanding Student Needs (by teacher);
2) Developing appropriate teaching strategies (by teacher);
3) In-class examples and exercises;
4) Student entry level skills;
5) Student understanding;
6) Student exam performance;
7) Difficulty of exam;
8) Stress.
a. With these eight variables, develop a Theoretical Framework, treating variable #4 as a moderator,
and variable #5 as an intervening variable.
b. Develop four hypotheses.
Answer:
Theoretical Framework
a. The variance in the performance of students in the exam can be accounted for by the four
independent variables teachers understanding of the needs of the students, the different teaching
strategies developed by the teacher, the number of in-class examples and exercises that the teacher
gives, and how difficult the exam itself happens to be. When the teacher understands students
difficulties and needs in terms of coaching and evolves appropriate teaching strategies in order to meet
the needs of the students to understand what is being taught, student understanding will increase. In
addition, if the teacher uses several examples to put across the points and gives exercises in class to test
the extent to which students have understood, then the students level of understanding of what is being
taught will increase. However, the entry-level skills of the students should be sufficiently adequate to
enable them to understand what is being taught. If the students entry level skills and comprehension
are very low, then no amount of the teacher making efforts to understand student needs, evolving
strategies, and giving new examples and exercises, will help the student to understand better, since they
do not have the basic prerequisite knowledge for understanding what is going on in the class. If,
however, the entry level skills are adequate, then the teacher taking all the above steps would help
enhance student learning. When students level of understanding increases, their level of performance
in the exam will also be better. The level of difficulty of the exams is also another factor that would
account for the variance in student performance. The more difficult the exam, the more stressed the
students will feel while answering the exam, and the lower will be their performance level in the exam.
Thus, stress is the intervening variable here.
In sum, the three variables of understanding student needs, teaching strategies, and in-class exercises
and examples will help increase the level of student understanding, which, in turn, will enhance the
level of their exam performance.
However, the more difficult the exam, the more the stress experienced by the students, and the lower
their level of performance in the exam.
b. Hypotheses
HA1: Only for those who have the requisite entry level skills, will more in-class exercises and examples
help increase the students level of understanding of the subject taught.
HA2: The more difficult the exams, the greater the stress experienced by the students.
HA3: The higher the level of stress experienced by the students, the lower their level of performance in
the exam.
HA4: When students understand the subject better, they will perform better in the exam.
Marketing
1. Factors Influencing Decision to Purchase
The four independent variables - quality, price, felt need for the product, and brand name - influence
customers decision to purchase products. When a product is of good quality, consumer confidence in
the product grows (the intervening variable), and the stronger becomes the decision of the consumer to
purchase the product. A reasonable price and a good brand name also induces the consumer to purchase
the product. Of course, the more the consumer needs the product (such as basic needs or essentials),
and the better the price, the quality, and the brand name, the greater the prospect for the consumer
making the decision to buy the product. Usually, the better known the brand name, the greater the
desire to purchase that product. However if a prospective consumer happens to have a strong brand
loyalty for a brand other than the one marketed, then, the brand name of the product will not influence
the purchase decision. Thus, only for those who do not have a strong brand loyalty to a different
product, will the relationship between brand name (IV) and purchasing the product (DV) hold true.
2. Factors Affecting Coupon Redemption Rates
Coupon redemption, a strategy for spurring sales, is the variable of interest to this study. Needless to
say, this sales strategy will be effective when the distribution channels for the product in question are
well planned, when there is sufficient advertising to let the consumers know about the promotion,
when the package clearly indicates the coupon redemption scheme with the expiration date, if any, and
the packaging of the product is of the right size (neither too big nor too small to serve the needs of the
consumer). Of course, all these factors will not help, unless there is an established frequent need for the
product for consumers (Moderating variable).

Accounting
3. Factors Influencing the Selection of Auditors by Companies.
The influence of the reputation of the auditing firm, the fees charged, and the quality of service
rendered, on the selection of the auditor for a firm is quite simple.
The greater the reputation of the auditing firm, the more the likelihood of its being selected, the better
the quality of service rendered, and the more reasonable the fee that is charged, the more likely is a
particular auditing firm going to be chosen.
Interaction is the intervening variable that helps us to see how the proximity of the auditing firm to the
business plays a part in auditor selection. If the auditing firm is proximal to the business, the closeness
encourages frequent interactions between the two parties to have matters clarified at low cost. This, in
turn, influences the business to choose an auditing firm that is proximal. However, the very big
business companies will not choose any but the big eight Accounting firms. Hence, for them, the
choice of auditors from any but the big eight will not be influenced by the independent variables in the
model. Thus, the size of the business firm becomes the moderating variable.
4. Factors that Account for the Variance in Bad Debt.
Bad debt is the variable of interest to this study, the variance in which is theorized to be explained by
the three factors of credit policy, monitoring of receivables, and pay-out period on installment loans. A
sensible credit policy, no doubt, will reduce bad debt. A follow up on accounts receivable will further
reduce bad debts by recovering as much as possible before things get out of control. The pay-out
period will also have an effect on the amount of bad debt. If the pay-out period is too long (stretching
over, say, several years), there is likely to be a tendency to slack off on the installment payments (the
intervening variable), especially if the value of the product depreciates substantially. However,
customers who consider their reputation for creditworthiness as paramount, will still honor their
commitments despite the long drawn out payment periods. Thus, class of customer will moderate the
relationship between the independent variable, pay-out period, and the intervening variable, slacking
off on payments

.Finance

5. What are the most important factors that influence the profits of a firm?
6. Critical Factors that Influence the Value of a Companys Stock.
The value of the companys shares is of interest to the study. If a company sustains its high earnings
year after year, its credibility as a successful company would be enhanced and the public will believe it
has further prospects for growth (intervening variable). This will help to explain how sustained
earnings will increase the stock value of the company. Faith in the managerial competence of the key
people in the company will hold the stock value high, even in times of mild recession. Thus the
perceived managerial competence of the individuals in the company would influence the stock value.
Usually, the higher the dividends, the higher the stock value; however, if the higher dividend declared
is perceived as a stunt to hoodwink the public, the stock value will not go up. Only when the public
expects that the dividend policy will be maintained by management in the future (moderating variable),
will the stock value of the company be influenced by the higher dividends that are declared.

CHAPTER 5
 THE RESEARCH PROCESS: ELEMENTS OF RESEARCH
DESIGN
Instructional Goals
1. To clarify the various components of research design as indicated in Figure 5.1 of the book.
2. To highlight obvious combinations in research design choices; for example, a lab or field experiment
is invariably conducted to establish cause and effect relationships; a lab experiment is always done in a
contrived setting with maximal researcher interference and in a longitudinal fashion.
3. To stress the importance of making optimal research design choices aimed at balancing scientific
rigor and research costs (and feasibility).

Discussion Questions
1. What are the basic research design issues? Describe them in some detail.
Basic research design issues are primarily a function of the purpose of the study (whether it is
exploratory, descriptive, or hypothesis-testing), and relate to such aspects as the type of study to be
done (causal or correlational), the setting in which it will be done (natural or contrived), how much
researcher control will have to be exercised (very little in the case of field studies, to very much in the
case of experimental designs), how many times data will have to be collected (one shot versus
longitudinal), and the unit of analysis i.e. the level at which data will be aggregated. For most
correlational studies, the field setting with minimal researcher influence will be the choice. Most field
stu What are the basic research design issuesdies are generally cross-sectional, though some could be
longitudinal.
Longitudinal studies, though better for understanding the dynamics of the situation fully, also consume
more time and resources. Thus, the costs of a study also determine some of the design choices. The unit
of analysis depends on whether the research question focuses on individuals, dyads, groups, or entire
systems.
2. Why is it important to consider basic research design issues before conducting the study and
even as early as at the time of formulating the research question?
The research design ensures that the purpose for which a study is conducted is effectively addressed.
Some studies are focused on finding results which will be highly reliable, whereas others might be
interested in getting some idea of what is going on, rather than wanting to know the absolute truth.
If the rigor needed can be achieved at only high cost (e.g. more manipulation and control, conducting
the study over an extended period of time with a big sample, etc), and if this cost is considered too
much, then the goals of research might have to be revised or even completely changed. Thus, thinking
through the research design issues at the early stages helps in averting several problematic issues later.
3. Is a field study totally out of the question if one is trying to establish cause and effect
relationships?
Generally lab and field experiments, rather than field studies, are useful for establishing greater internal
validity, or faith in cause and effect relationships.
However, when longitudinal data are collected from field studies, or when particular types of statistical
analyses are done on cross- sectional data gathered from field studies, it is sometimes possible to
establish the existence of causal relationships.
More specifically, cross-lagged correlation analysis (not discussed in the book) using data collected at
more than one point in time, can indicate causal relationships.
Even using cross-sectional data (i.e. with data collected at one time only) statistical techniques, such as
path analysis, can identify cause and effect relationships.
However, in such cases, the data and the theory will have to lend themselves to certain assumptions
which are not always easily met.
4. An exploratory study is just as useful as a predictive study. Discuss this statement.
Without exploratory studies, new areas of knowledge cannot be developed. Every theory we now have
must at one time have started as an exploratory research study. Exploratory research lays the
groundwork for understanding new phenomena, and developing new measures to test these. The
exploratory studies of today blossom into the predictive studies of tomorrow, and in that sense both
types of study are useful and essential to generate knowledge, understanding, and prediction of
business phenomena.
5. Why is the unit of analysis an integral part of the research design?
The unit of analysis is an important issue to be considered to find the right answers to the research
questions posed. The unit of analysis also determines the sample size.
For example, if one is interested in researching the factors that influence the stock market in three
different European countries, it is the behavior of stock markets in those three countries that are of
central interest to the study, and not the individual stock market within each country. At the time of
data analysis, the data gathered from each of the stock markets within each country will somehow have
to be meaningfully aggregated, and only those three data points, which will form the three samples,
have to be taken into consideration. Thus, the unit of analysis is a function of the research question
posed, and is an integral part of the research design. As will be seen later, research design decisions
relating to sampling also depend on the unit of analysis. Let us say a researcher decides to have a
sample size of 30 for a study. Sampling 30 individuals in an organization when the unit of analysis is
individuals, is not as problematic as sampling 30 organizations when the unit of analysis is
organizations, or sampling 30 countries when the unit of analysis is countries. Thus, the unit of analysis
influences other decisions such as the sampling design, the sample size, data
collection methods, etc.
6. Discuss the inter-relationships among: non-contrived setting, purpose of the study, type of
investigation, researcher interference, and time horizon of the study.
A non-contrived setting simply indicates that the research is conducted where the flow of events
normally takes place i.e. in the natural system. Such research could be either field studies or field
experiments. The purpose of the field study could be for exploration and understanding of phenomena,
for describing phenomena, or for hypothesis-testing. The field study is a correlational study, and not
usually initiated to explore cause and effect relationships. Researcher interference in field studies is
minimal. Field studies could be either cross- sectional or longitudinal. Field experiments, on the other
hand, are undertaken to establish cause and effect relationships, are longitudinal in nature, and
researcher interference in field experiments is much more than in field studies, since the independent
variable will have to be manipulated. These are mostly hypothesis-testing studies, though they could be
exploratory in nature, as well.
7. Below are three scenarios. For each, indicate how the researcher should proceed with the
following, giving reasons:
a. The purpose of the study
b. The type of investigation
c. The extent of researcher interference
d. The study setting
e. The time horizon for the study
f. The unit of analysis.
Scenario A
Ms. Joyce Lynn, the owner of a small business (a womans dress boutique), has invited a consultant to
tell her how she is different from similar small businesses within a 60-mile radius, in regard to her
usage of the most modern computer technology, sales volume, profit margin, and staff training.

Answer
This will be a descriptive study (describing how she compares with the others).
Data will be collected from small businesses on the use of computers, sales volume, profit margin, and
training programs and comparisons made. Some of these descriptions might be qualitative, as for
example, in describing training methods. This will be a field study (using many similar small
businesses), and researcher interference will be minimal. It will be a one-shot study, and the unit of
analysis will be small business systems.
Scenario B
Mr. Paul Hodge, the owner of several restaurants is concerned about the wide differences in the profit
margins of the various restaurants. He would like to try some incentive plans for increasing the
efficiency levels of those restaurants that are lagging behind. But, before he introduces this, he would
like to be sure that the idea will work. He asks a researcher to help him on this issue.

Answer
This would be a causal, hypothesis-testing study. It will be a field experiment, using one or two
restaurants to manipulate incentive plans and see if this causes an increase in profit margins in those
restaurants. Because of the manipulation, there will be some researcher interference with the natural
flow of events. The time horizon for the study would be longitudinal since data will be obtained on
sales, profits, etc., both before and after the manipulation. The unit of analysis would be the restaurant.
Scenario C
A manager is intrigued why some people seem to derive joy from work and get energized by it, while
others find it troublesome and frustrating.
This would be a correlational, hypothesis-testing, field study with minimal researcher interference. It
will be a one-shot study and the unit of analysis will be individuals.
Exercises
Doing the exercises in the chapter will help the student to apply the basic elements of research design
to different scenarios. More in-class exercises are offered at the end of this chapter (with answers), that
can be used either in the classroom or as exam questions.
Answers to Exercises in the Book
Exercise 5.1
A foreman thinks that the low efficiency of the machine tool operators is directly linked to the high
level of fumes emitted in the workshop. He would like to prove this to his supervisor through a
research study.
1. Would this be a causal or a correlational study? Why?
2. Is this an exploratory, descriptive, or hypothesis-testing (analytical or predictive) study? Why?
3. What kind of a study would this be: field study, lab experiment, or field experiment? Why?
4. What would be the unit of analysis? Why?
5. Would this be a cross-sectional or a longitudinal study? Why?
1. This would be a causal study because the operator wants to prove to the supervisor
that the fumes are causing operators to be low in their efficiency. In other words, the machine tool
operator is trying to establish the fact that fumes cause low efficiency in workers.
2. This is an analytical study because the machine tool operator wants to establish that fumes cause low
efficiency and convince his workshop supervisor through such analysis (i.e. establish cause and effect
relationship).
3. This would be a field experiment. Though the study would be set up in the natural environment of
the workers where the work is normally done, the amount of fumes will have to be manipulated while
other factors, such as atmospheric pressure, may have to be controlled. Because of the location of the
study, it will be a field experiment.
4. The unit of analysis would be the individual operators. The data will be collected with respect to
each operator and then the conclusion will be made as to whether the operators are less efficient
because of the fumes emitted in the workshop.
5. This would be a longitudinal study because data will be gathered at more than one point in time.
First, the efficiency of the operators would be assessed at a given rate of fume emission. Then the
fumes emitted would be manipulated to varying degrees, and at each manipulation the efficiency of the
workers would again be assessed to confirm that the high rate of fume emission causes a drop in
operators efficiency.

Exercise 5.2
Many were concerned about the operations of the infamous BCCI, the international banking institution.
If the Government had desired to probe into the details, would this investigation have called for:
1. A causal or correlational study? Why?
2. An exploratory, descriptive, or hypothesis-testing study or case analysis? Why?
3. A field study, lab experiment, or field experiment? Why?
4. A cross-sectional or longitudinal study? Why?
1. This would have been a correlational study since the details desired are to be probed into without
trying to establish cause and effect relationships.
2. It would be a descriptive study describing the operations of BCCI.
3. This would be a field study since data will be collected in the natural environment.
4. This will be a cross-sectional study since the data will be collected at only one point in time.

Exercise 5.3
You want to examine how exposure to thin or heavy models in advertisements influences a
persons self-esteem. You believe that the effect of exposure to models in advertisements
depends on the extremity of the model's thinness or heaviness.
Discuss the design decisions that you as a researcher will make to investigate this issue,
giving reasons for your choices.
An experimental study (causal study) will be needed since the goal of the study is to test a cause-and-
effect relationship.
A pretest will help you to select advertisements containing female models for the following four
conditions: moderately thin, extremely thin, moderately heavy, and extremely heavy; - participants
view an advertisement booklet containing ads with female models.
- participants rate each model in terms of size (-5 =extremely overweight, +5 = extremely thin) and
attractiveness (-5 = extremely unattractive, + 5 = extremely attractive).
Based on these scores, you will be able to select advertising models in each condition.
Note that models should differ from each other in terms of size but not in terms of attractiveness (you
have to perform post hoc comparisons to test for this).
In the actual experiment, participants must be randomly assigned to one of the four conditions of the 2
(model size: thin vs. heavy) and (extremity of model size: moderate vs. extreme) between-subjects
design. Participants are then provided with a booklet containing ads: ads with models, pertaining to
their condition, and filler ads with no models (randomize the order of the ads). Eventually (after one or
more filler tasks) participants complete a self-esteem scale such as for instance the Appearance Self
Esteem Scale (Heatherton and Polivy 1991).
Exercise 5.4
You want to investigate the specific effects of specific emotions on customers' behavioral
responses to failed service encounters across industries.
Discuss the design decisions that you as a researcher will make to investigate this issue, giving
reasons for your choices.
Because it is difficult (and probably unethical) to induce specific emotions in an experiment a field
study seems to be the more logical choice. Note however, that when you use a field study, it is very
important to control for variables that might potentially bias your results such as complaint success
likelihood and switching costs.
The critical incident technique is a method that may help you to collect a wide variety of negative
experiences with service organizations.
Exercise 5.5
War on Cancer
Dr. Larry Norton of Memorial Sloan-Kettering Cancer Center predicts that cancer treatment will
undergo major changes. Several drugs are being developed to battle cancer without harming healthy
tissues. It is a question of discovering which of these drugs does the job best.
Design a study that would help find which drug would do the trick.
An experimental study (causal study) of the Solomon Four-Group design will be needed. A count of
the healthy tissues in cancer patients at more or less the same stage of cancer progress will first be
taken, with about 20 patients in each group. Each group, but the control group, will be treated with the
different new drugs. The cancer cell count will be taken both before and after treatment for a period of
time (say, 3 to 6 months) to see which has the most beneficial effect. Thus it would be a longitudinal
study with some manipulation (drug variation) and control (matched or randomized groups). The unit
of analysis will be groups.

More in-Class Exercises on Research Design (with Answers)

Several situations are given below. For each situation, respond to the following research design
questions.
a. What would be the nature of the study that would be designed - Exploratory, descriptive, or
hypothesis-testing?
b. Give reasons for your answer to (a) above.
c. Would it be a Field study, Comparative study, Lab experiment or Field experiment?
d. Would it be a causal or correlational study?
e. Justify the reasons for your answer to (d).
f. Would it be a longitudinal or cross-sectional study?
g. How would you explain your answer to (f) above?
h. What would be the unit of analysis?
i. Defend your answer to (h) above.
1. A researcher wants to test the theory that low levels of oxygen in the mines is the single most
important factor that tires miners easily.
ANSWER:
a & b: Hypothesis-testing, because the researcher wants to analyze and test if low levels of oxygen
would, in fact, cause tiredness in miners.
c: A Field Experiment, because there would be manipulation of the levels of oxygen in the natural
environment of the workers.
d & e: Causal study, because the researcher wants to see if low levels of oxygen cause tiredness in
miners. He wants to establish a cause and effect relationship between the independent and the
dependent variables.
f & g: It would be a Longitudinal study because data on tiredness will be collected from the same
batch of workers before and after each manipulation of the extent of oxygen injected into the
environment.
h & i: The unit of analysis will be individual miners because the data will not be aggregated across
groups, but each individual miners level of tiredness will be recorded and used in data analysis.
2. An Auditor is interested in knowing the relationship among the three variables depreciation,
assets accounting, and taxes paid.
ANSWER:
a & b: Hypothesis-testing, because the manager wants to analyze the correlations among the three
variables.
c: Comparative Field study since the data will be gathered from several firms.
d & e: It will be correlational since the relationship (and not cause and effect relationships) among the
variables is being studied.
f & g: Cross-sectional since the data will be gathered only once.
h & i: Unit of analysis will be the firms.
3. The head-nurse in a hospital would like to have a profile of the patients that come to her ward.
ANSWER:
a & b: Descriptive since the head nurse only wants a profile a mere description of the type of
patients who come to her ward.
c: Field study, since the people coming to her ward (natural setting) will be studied.
d & e: It is a descriptive study, using merely frequency distributions and means and standard
deviations. It is thus neither a causal nor a correlational study.
f & g: Cross-sectional, since data will be gathered from each person just once to get the profile.
h & i: Unit of analysis will be individual patients since individual profiles will be studied.
4. A basic researcher wants to engage in a research project which will enable her to establish the
relationship between certain personality characteristics and the risk taking tendencies of stock
brokers.
ANSWER:
a & b: Hypothesis-testing, since the researcher would have formulated a conceptual framework of the
type of personality characteristics that would induce stock brokers to take more risks, and would want
to test her hypotheses.
c: Field study since subjects will be studied in the natural environment in which they usually operate.
d & e: Correlational study since the relationships among the personality characteristics and risk-taking
are studied.
f & g: Cross-sectional since data will be gathered at only one point in time.
h & i: Unit of analysis will be individuals (stock brokers) since the data analysis will be done on each
individuals responses without any aggregation across groups.
Note: This can also be set up as a Lab experiment in which Finance majors are put in a contrived
setting and offered some investment assignments that call for risk taking. Their personality
characteristics can be obtained through a questionnaire survey, and their risk taking behavioral
tendencies assessed by manipulating the level of financial risk involved in the investments.
5. Bobs Nissan and Toyota dealership is suffering from a severe decline in the number of car
sales. Bob decides to test two approaches to sales. He randomly assigns his 12 salesmen to two
groups. He then trains one group to use the hard sell approach and the other to use the soft
sell approach so that he can determine which method is more effective.
ANSWER:
a & b: Predictive, hypothesis-testing study since Bob wants to be able to test which one of the two
sales approaches will help sell more cars (i.e. predict which sales approach is effective).
c: Field experiment since the independent variable sales approach is manipulated to be either hard or
soft sell and tried in the natural environment in which sales usually take place and not in an artificial
lab setting.
d & e: Causal study, since Bob wants to know which approach would cause sales to increase.
f & g: Longitudinal, because the sales levels, both before the manipulation and after, will be measured.
h & i: Unit of analysis will be groups since the sales of each of the two groups soft sell and hard
sell salesmen will be aggregated and compared.
6. A production manager wants to see if, by providing enhanced automation technology, the
productivity of the workers in the plants can be raised. However, before trying this with all the
five plants, she would like to try this with a group of apprentices who work in one plant.
ANSWER:
a & b: Hypothesis-testing, analytical study, since the manager wants to be able to analyze the cause
and effect relationship between enhanced automation and worker productivity.
c: Field experiment, since the study will be conducted in the natural environment where events usually
take place.
d & e: Causal study, since causal relationships are trying to be established.
f & g: Longitudinal, since productivity measures will be taken from the same workers before and after
the introduction of the enhanced automation.
h & i: Individuals will be the unit of analysis since there will be no aggregation of data across group
members.

CHAPTER 8
DATA COLLECTION METHODS
Instructional Goals
1. To develop interviewing skills in students;
2. To help students become proficient in designing questionnaires;
3. To introduce students to different methods of data collection including observational surveys,
electronic surveys, and collecting information from unobtrusive sources;
4. To emphasize the advantages of obtaining data from multiple sources, and multiple methods of data
collection;
5. To offer an idea of which data collection method would be appropriate during different stages of
research.

Discussion Questions
1. Describe different data sources, explaining their usefulness and disadvantages.
Secondary sources of data constitute all available sources from which existing information can be
extracted. This could be published or unpublished information in the Library, in Government or
Company records, in data tapes, on the internet, etc. Primary sources of data can be any source which
provides information elicited directly for the first time. This could be organizations, individuals, trash
cans, or whatever source from which the desired information can be obtained.
Secondary data sources are useful because they offer a base on which to build further research without
having to reinvent the wheel. Past findings can spur new research; past data can also offer
opportunities to analyze them from a different perspective or angle. Under certain circumstances,
however, secondary data might be misleading if one does not take the changed circumstances into
consideration. For example, if old archives of national data are utilized to examine and draw
conclusions about gender differences at the workplace, this might become an exercise in futility.
The workplace has changed much now compared to 20 years ago there are more educated career
women, their aspirations are different, their current expectations of life are in contrast to what they
were two decades ago, etc. As such, one has to be cautious while using secondary data sources.
Primary data will offer more correct and up-to-date information when phenomena are investigated.
However, it costs more to collect fresh data, access to organizations is not always readily obtained, and
people knowledgeable in research have to be coopted.
Generally, data collected through unobtrusive methods are more reliable than data gathered through
surveys.
2. As a manager, you have invited a research team to come in, study, and offer suggestions on
how to improve the performance of your staff. What steps would you take to allay their
apprehensions even before the research team sets foot in your department?
As the manager, I would inform the employees of the Department, in a meeting called for the purpose,
that unless we can turn around and make some profits, the organization may have to lay off people.
Since management does not see laying off personnel as an acceptable solution, at least at this stage, we
are inviting outside experts to examine our operations and give us some ideas on how we may be able
to increase our profits. If we all cooperate with the research team that will be coming in shortly, and
provide them with whatever information they might need, it would help the company to implement the
steps and processes necessary to increase output, make a profit, and retain the current employees.
3. What is bias and how can it be reduced while interviewing?
Bias is any error that creeps into the information gathered. Biases occur whenever incorrect
information is provided to the researcher by whoever offers the information.
Sometimes, genuine mistakes might be made and hence incorrect information could be provided.
However, biases frequently occur because the researcher phrases the question in a particular way,
inflects the voice in a particular manner, or simply because the respondent, zealous of pleasing the
researcher, provides an answer that the individual believes is what the researcher would like to hear,
even though it is not factual.
Bias can be reduced in interviewing by choosing the appropriate environment in which the interview is
conducted, by establishing trust with the respondent, by phrasing questions so that they do not lead the
interviewee to respond in a particular manner, by clarifying issues when the respondent seems
confused, by not coming across as evaluative or judgmental, and by not placing special emphasis on
specific words.
4. Explain the principles of wording, stating how these are important in questionnaire design,
citing examples not in the book.
a. The wording of the question and the level of sophistication of the language used are important.
These are important because, if the respondent does not understand the words, obviously, he or she is
not going to be able to respond to the questions. An underground coal miner and a top business
executive may need to be asked some of the same issues differently. Thus, using words that fit the level
of sophistication of understanding of the respondent is necessary. To take an extreme example, to
assess the experienced quality of family life, a poorly educated farm hand may be first asked to list the
activities he normally engages in when he gets home from work, and then asked to rate the extent of
satisfaction gained from each of these activities. An index of quality of family life might then be
calculated by examining the family-related activities listed by the respondent. With a business
executive, on the other hand, the same concept can be tapped by asking the individual to rate his or her
satisfaction to questions such as: Balance between work and family life; the impact of travelling on
experiencing quality time with the family, and the like.
b. Both positively and negatively worded questions need to be asked in the questionnaire so that the
respondent does not mechanically answer the items without much mental engagement. For example, if
one question asks for the level of excitement that a particular advertisement evoked, another could ask
the extent to which that same advertisement seemed irrelevant. Obviously, when both are tapped on the
same scale, the response to both cannot be the same. This break in the way the questions are worded,
both positively and negatively, helps to enhance the attention span of the respondents who might
otherwise respond mechanically.
c. Double-barreled questions should be avoided. If one asks the question, Do you value and manage a
diverse workforce well? there may be no clear response given to the question because one may value
a diverse workforce, but hardly know how to manage it! In such cases, it would be better to ask two
separate questions rather than one.
d. Ambiguous questions should also be avoided. Questions such as Do you discuss your work with the
president regularly? or Do you go to the movies frequently? are ambiguous, because the terms
regularly and frequently are left open to the interpretation of each respondent. One individual might
discuss work with the president on a daily basis, and another every six months. Both are regularly (or
at regular intervals) discussing work! But is this what the researcher is looking for?
Similarly, frequently going to the movies might mean one movie every week to one person, one movie
every month to another, and three times a week to a third person! Since these terms are not defined,
biased data will be procured from the respondents.
e. Recall-dependent questions will also introduce biases. For example, not many people remember
when exactly they started smoking, or why they quit a particular school and joined another when they
were 10 years old.
f. Leading questions also result in biased responses because the interviewee might be led to believe that
a particular type of answer is sought and might try to oblige the interviewer, even if the response is not
what the individual believes to be true. An example of a leading question is: Dont you think that more
women should be promoted to decision-making line positions in organizations? Such a question is
likely to elicit the obvious response, Surely, Yes!
g. Loaded questions should also be avoided because of the emotionality it invokes, thus eliciting biased
responses. As an example: Dont you think that the L.A.P.D. is biased against blacks? is a question
with racial overtones which will bring forth emotional, rather than objective responses to the question.
h. Questions invoking social desirability will also produce biased responses. An example would be to
ask if anyone felt that workforce diversity is bad for the system. In the context of the changing
demographics of the workforce, even if some felt that diversity at the workplace is disastrous, they
would tend not to disagree because it is not a socially acceptable response.
i. It is also important to avoid lengthy questions which might confuse the respondent and introduce
several types of bias. An example of a long question is: To what extent would asking for responses
from different groups of employees, such as for instance, production, marketing, R & D, advertising,
and sales, on such issues as the policy governing the organization, the organizational culture, staff
discipline and other related matters, provide valid data to the president, to enable him to make some
critical decisions on how to run the company effectively and efficiently?
5. What are projective techniques and how can they be profitably used?
Projective techniques help the respondent to offer answers to questions which might otherwise be
rather difficult or cumbersome to respond to. Projective methods which include such techniques as
word association, sentence completion, thematic apperception, and ink-blot tests, usually tap the deep-
seated motivations of the respondent and provide relevant answers to difficult questions. However, the
responses have to be analyzed by individuals well trained in interpreting the answers if they are to be
meaningfully utilized for research purposes. Marketing research can benefit substantially by using
projective techniques, as for example, in developing products, designing ads, and selecting appropriate
media.
6. How are multiple methods of data collection from multiple sources related to reliability and
validity of the measures?
If there is convergence or strong correlation among the data obtained from different data collection
methods on the same variable, then one can establish convergent validity because the data converge
even when collected by different methods. The same holds true when there is a strong and significant
correlation between the data obtained on the same variable from different sources. Though reliability
cannot be directly assessed from multi-methods or multi-sources of data collection, usually, since a
valid instrument is reliable (though the converse may not necessarily be true), one can presume
reliability if validity is established through the multi-trait, multi-matrix method.
7. Every data collection method has its own built-in biases. Therefore, resorting to multi-methods
of data collection is only going to compound the biases. Critique this statement.
It is true that most data collection methods in the social sciences have their own built-in biases. For
instance, interviews are susceptible to interviewer and respondent biases, observational data will have
observer and actor biases, and so on. But when data are collected through multiple methods and
compared, if the correlations among the several types of responses received through the different data
collection methods are high, we can be fairly confident that the data have good validity and reliability
i.e. they are good. If the correlations are low, however, we would start wondering about the goodness
of our data. We would then pay closer attention to the methods used. For instance, if respondents say
that they experience a high level of meaningfulness in their jobs when they are interviewed, and when
the concept is measured through several items in the questionnaire, we would be inclined to treat these
as acceptable data even though both may have a low correlation to data obtained from a sentence
completion motivational research. If, however, there is no correlation at all among any of the methods,
the goodness of the data collected will be highly suspect.
Thus, multi-methods of data collection help us to make certain judgments about the goodness of our
data and serves to make decisions on which sets of data may perhaps be more acceptable than others.
8. One way to deal with discrepancies found in the data obtained from multiple sources is to
average the figures and take the mean as the value on the variable. What is your reaction to this?
Wherever possible objective data, through unobtrusive methods, need to be obtained. For instance, if
an employees performance is to be measured, it is better to go through the persons records and
evaluation forms of the superiors (in case more objective measures of output are not available).
However, such records are usually confidential in nature and are not likely to be made accessible to the
researcher.
Hence data will be sought from multiple sourcesfor example, from the subject, the co-workers, the
immediate supervisor, other superiors, and perhaps even the subordinates. If there is not much
consistency in the data obtained through these various sources, there is no option left but to average
these. However, the researcher should point out the biases inherent in this and acknowledge this
limitation in the report.
9. How has the advancement of technology helped data gathering?
Hand-held computers used in field interviews are very useful for collecting and recording information
from many individuals. The recorded information can be checked for accuracy the same day.
Electronic surveys by way of interviews or questionnaires, have the advantage of self correction in
data, in the sense that out of range responses etc., are automatically corrected on the spot, and skip
patterns can be conveniently applied (e.g. if answer is No to question # 5, proceed to question # 19).
The only drawback is that people might ignore and not respond to electronic surveys, and some may
not have the requisite facilities.
10. How will you use the data from observational study to reach scientific conclusions?
Observational studies have been profitably used for providing descriptive information. However, by
categorizing the responses in a meaningful way, and also developing ordinal or Likert-type scales
therefrom, (e.g. High Frequency to Low Frequency, etc.), scientific conclusions can be reached
applying parametric or nonparametric statistics, as appropriate.
11. The fewer the biases in measurement and in the data collection procedures, the more
scientific the research. Comment on this statement.
This observation is correct. When reliable and valid measures are used to tap concepts, and when the
data collection methods have less built-in biases, we would have good data, provided that, of course,
the sample is representative. Thus, replicability, accuracy and precision, and generalizability, become
possible. The research then becomes more scientific.
Exercises
Exercise 8.1
A production manager wants to assess the reactions of the blue-collar workers in his department
(including foremen) to the introduction of computerintegrated manufacturing (CIM) systems. He
is particularly interested to know how they would perceive the effects of CIM on:
a. their future jobs
b. additional training that they will have to receive
c. future job advancement.
Design a questionnaire for the production manager.
Questionnaire
Cria Software Enterprises
4571 Southwood Ave
Cupertino, California 94024
Date
Dear Employee,
As we had discussed in our meetings, Computer Integrated Manufacturing (CIM) will form a part of
our operations in the future. We would like to know how you visualize certain aspects of the future
environment as we introduce the changes.
Please take a few minutes to complete this short questionnaire and return it to the locked box with the
slit on the top, in the front office. Thank you for responding within the next five days.
sd
George Coelho
Production Manager
1. Personal Information (place a mark on the appropriate box)
JOB STATUS NUMBER OF YEARS WORKED IN THE
DEPARTMENT
SHIFT CURRENTLY
WORKING IN
Machinist Less than 1 Day
Fitter 1-3 Evening
Loader 3-5 Night
Inspector 5-10
Foreman Over 10 years
Surveyor
Other
2. Your Opinions regarding the following.
Please circle the appropriate number for each of the following items using the scale below.
STRONGLY AGREE 1 AGREE 2 NEITHER
AGREE NOR
DISAGREE 3
DISAGREE 4 STRONGLY
DISAGREE 5
1. I will need additional training to work in the changed environment.
12345
2. The new system will offer me better opportunities for advancement.
12345
3. The opportunities for training will have to be enhanced with CIM.
12345
4. I am not sure if CIM will need all the people we now have in this department.
12345
5. I feel that most of us may not have better opportunities for future promotions in the new manufacturing environment.
12345
6. Most of us will need special training to work with CIM.
12345
7. I am sure the future looks bright for most of us here.
12345
Items 4 and 7 measure opinion about their future jobs
1, 3, and 6 measure perceived training needs
2 and 5 measure job advancement
Exercise 8.2
Answers may vary.
Exercise 8.3
Answers may vary.
Exercise 8.4
Answers may vary. The questionnaire should include valid and reliable scales
measuring service quality,
customer satisfaction, and customer loyalty.
Exercise 8.5
Design an interview schedule to assess the Intellectual capital, as perceived by employees, in an
organization after identifying the dimensions and elements.
The dimensions of intellectual capital would primarily comprise, among other things, the following:
The knowledge-base of the employees; Their know-how
The patents owned by the organization; The secret formulas utilized by the company (special
formulas / manufacturing process, and the like).
The extent to which the company has an edge over others, in terms of specialized knowledge and
skills.
The Unstructured Interview Schedule would basically ask for the employees ideas as to what the term
means and what they consider are the essentials of intellectual capital.
The Structured Interview Schedule will be on the following lines:
1. Department:
2. Nature of job:
3. Age:
4. Designation:
5. To what extent do you think your organization depends on the knowledge of operations of workers
for its success?
6. To what extent do you think the success of this organization is due to the specialized knowledge and
skills possessed by employees?
7. Should some of the employees leave this organization, how difficult will it be to recruit others with
the same or similar knowledge?
8. To what extent is the know-how relating to certain operations confined to particular individuals who
alone know how to do their job?
9. How many patents have been owned by your company in the last 5 years?
10. To what extent would you say your company has far more valuable patents than your competitors
in the industry?
Additional Exercises in Questionnaire Design
Two simple exercises on Questionnaire Design follow, and these can be used for class discussion after
the students have individually worked on them as homework assignments. Different students can then
be asked to write on the chalk board different parts of the questionnaire for example, the
introduction, instructions to respondents, measures for different concepts with scaling, and the end part
of the questionnaire. The class as a whole can then critique the exercise on the board. See also
Exercises 10.1 to 10.5 in the Book. These can also be used for class discussions including discussions
on possible ways of establishing reliability and validity for the measures.
1. The Marketing Director of a pharmaceutical company wants to examine the effects of number of
sales personnel, population density, the average sales calls made to the doctors in the region, and the
average monthly sales calls made on the chemists in the region, on the sales of the pharmaceutical
products of the company. She has six particular regions in mind. Design a questionnaire to do the
study. Also discuss what sources of data you will gather information from.
Population density can be obtained directly from the Census Bureaus Directory. All the other
information should be readily available from the Regional Sales Headquarter Records, or from the
local offices. If necessary, a simple questionnaire asking direct questions of the Regional Director to
tap the variables could be used.
2. An R&D Project Manager wants to elicit the reactions of the machine operators in the Production
Department to three different types of machines currently in use Type A, Type B, and Type C. If he
knows how the machinists experience these three types in terms of ease of handling, sturdiness,
flexibility for different adaptations, and maintenance, he would be able to decide whether or not to
develop a new prototype he has in mind. Design a questionnaire for the purpose.
This is also a relatively simple questionnaire that will be administered to the machinists, asking for
their views on the three types of machines, aiming the questions to particular aspects of ease of
handling, sturdiness, flexibility for different adaptations, and maintenance.
Next to Chapter 3, this Chapter is perhaps the one which would demand more in-class exercises and
discussions to ensure that students have understood and can incorporate the learnings into their
research project work. When the group puts together a draft of the questionnaire for administering it to
the organization when they do their class project, the instructor can play a key role in offering
constructive criticisms and suggestions, and all in all, help students to understand how to design
reasonably good questionnaires.