Project Name: Business Research Methods ACE Pro India Pvt. Ltd. \\192.168.4.30\project1\Pearson\Business Research Method\MAIN\A01\LAYOUT_A01\A01_NAVA_4481_EN_FM.indd Business Research Methods NAVAL BAJPAI Indian Institute of Management, Raipur Delhi • Chennai • Chandigarh Modifi ed Date: Thu, Apr 14, 2011 11:38:15 AM Output Date: Thu, Apr 14, 2011 11:38:36 AM FPP Page Number: i Project Name: Business Research Methods ACE Pro India Pvt. Ltd. \\192.168.4.30\project1\Pearson\Business Research Method\MAIN\A01\LAYOUT_A01\A01_NAVA_4481_EN_FM.indd Microsoft product screenshots reprinted with permission from Microsoft Corporation. Portions of the input and output contained in this publication/book are printed with permission of Minitab Inc. All material remains the exclusive property and copyright of Minitab Inc. All rights reserved. SPSS product screenshots reprinted by courtesy of International Business Machines Corporation, © 2011 International Business Machines Corporation. Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd Licensees of Pearson Education in South Asia No part of this eBook may be used or reproduced in any manner whatsoever without the publisher’s prior written consent. This eBook may or may not include all assets that were part of the print version. The publisher reserves the right to remove any material present in this eBook at any time. ISBN 9788131754481 eISBN 9789332511750 Head Office: A-8(A), Sector 62, Knowledge Boulevard, 7th Floor, NOIDA 201 309, India Registered Office: 11 Local Shopping Centre, Panchsheel Park, New Delhi 110 017, India Project Name: Business Research Methods ACE Pro India Pvt. Ltd. \\192.168.4.30\project1\Pearson\Business Research Method\MAIN\A01\LAYOUT_A01\A01_NAVA_4481_EN_FM.indd In loving memory of my late grandfather, Professor Ramesh Chandra Agnihotri To my mother, Mrs Chitra Bajpai; my father, Mr P. S. Bajpai; my wife, Mrs Archana Bajpai; and my daughters, Aditi and Swasti Modifi ed Date: Thu, Apr 14, 2011 11:38:15 AM Output Date: Thu, Apr 14, 2011 11:38:36 AM FPP Page Number: iii Project Name: Business Research Methods ACE Pro India Pvt. Ltd. \\192.168.4.30\project1\Pearson\Business Research Method\MAIN\A01\LAYOUT_A01\A01_NAVA_4481_EN_FM.indd This page is intentionally left blank. Modifi ed Date: Thu, Apr 14, 2011 11:38:15 AM Output Date: Thu, Apr 14, 2011 11:38:36 AM FPP Page Number: iv Project Name: Business Research Methods ACE Pro India Pvt. Ltd. \\192.168.4.30\project1\Pearson\Business Research Method\MAIN\A01\LAYOUT_A01\A01_NAVA_4481_EN_FM.indd Brief Contents About the Author xxii Preface xxiii Part I Introduction to Business Research 1 1 Business Research Methods: An Introduction 3 2 Business Research Process Design 19 Part II Research Design Formulation 41 3 Measurement and Scaling 43 4 Questionnaire Design 69 5 Sampling and Sampling Distributions 93 Part III Sources and Collection of Data 123 6 Secondary Data Sources 125 7 Data Collection: Survey and Observation 139 8 Experimentation 161 9 Fieldwork and Data Preparation 185 Part IV Data Analysis and Presentation 207 10 Statistical Inference: Hypothesis Testing for Single Populations 209 11 Statistical Inference: Hypothesis Testing for Two Populations 251 12 Analysis of Variance and Experimental Designs 307 13 Hypothesis Testing for Categorical Data (Chi-Square Test) 363 14 Non-Parametric Statistics 393 15 Correlation and Simple Linear Regression Analysis 457 16 Multivariate Analysis—I: Multiple Regression Analysis 515 17 M ultivariate Analysis—II: Discriminant Analysis and Conjoint Analysis 597 18 M ultivariate Analysis—III: Factor Analysis, Cluster Analysis, Multidimensional Scaling, and Correspondence Analysis 637 Part V Result Presentation 697 19 Presentation of Result: Report Writing 699 Appendices 717 Glossary 739 Name Index 753 Subject Index 757 Modifi ed Date: Thu, Apr 14, 2011 11:38:15 AM Output Date: Thu, Apr 14, 2011 11:38:36 AM FPP Page Number: v Project Name: Business Research Methods ACE Pro India Pvt. Ltd. \\192.168.4.30\project1\Pearson\Business Research Method\MAIN\A01\LAYOUT_A01\A01_NAVA_4481_EN_FM.indd This page is intentionally left blank. Modifi ed Date: Thu, Apr 14, 2011 11:38:15 AM Output Date: Thu, Apr 14, 2011 11:38:36 AM FPP Page Number: iv Project Name: Business Research Methods ACE Pro India Pvt. Ltd. \\192.168.4.30\project1\Pearson\Business Research Method\MAIN\A01\LAYOUT_A01\A01_NAVA_4481_EN_FM.indd Contents About the Author xxii Preface xxiii I Introduction to Business Research 1 1 Business Research Methods: An Introduction 3 1.1 Introduction 4 1.2 Difference Between Basic and Applied Research 5 1.3 Defining Business Research 6 1.4 Roadmap to Learn Business Research Methods 7 1.5 Business Research Methods: A Decision Making Tool in the Hands of Management 9 1.5.1 Problem or Opportunity Identification 9 1.5.2 Diagnosing the Problem or Opportunity 10 1.5.3 Executing Business Research to Explore the Solution 10 1.5.4 Implement Presented Solution 10 1.5.5 Evaluate the Effectiveness of Decision Making 10 1.6 Use of Software in Data Preparation and Analysis 11 1.6.1 Introduction to MS Excel 2007 11 1.6.2 Introduction to Minitab® 13 1.6.3 Introduction to SPSS 13 Summary 16 • Key Terms 16 Discussion Questions 17 • Case 1 17 2 Business Research Process Design 19 2.1 Introduction 20 2.2 Business Research Process Design 20 2.2.1 Step 1: Problem or Opportunity Identification 21 2.2.2 Step 2: Decision Maker and Business Researcher Meeting to Discuss the Problem or Opportunity Dimensions 22 2.2.3 Step 3: Defining the Management Problem and Subsequently the Research Problem 22 2.2.4 Step 4: Formal Research Proposal and Introducing the Dimensions to the Problem 23 2.2.5 Step 5: Approaches to Research 24 2.2.6 Step 6: Fieldwork and Data Collection 35 2.2.7 Step 7: Data Preparation and Data Entry 36 2.2.8 Step 8: Data Analysis 36 Modifi ed Date: Thu, Apr 14, 2011 11:38:15 AM Output Date: Thu, Apr 14, 2011 11:38:36 AM FPP Page Number: vii Project Name: Business Research Methods ACE Pro India Pvt. Ltd. \\192.168.4.30\project1\Pearson\Business Research Method\MAIN\A01\LAYOUT_A01\A01_NAVA_4481_EN_FM.indd 2.2.9 Step 9: Interpretation of Result and Presentation of Findings 36 2.2.10 Step 10: Management Decision and Its Implementation 36 Summary 37 • Key Terms 38 Discussion Questions 38 • Case 2 39 II Research Design Formulation 41 3 Measurement and Scaling 43 3.1 Introduction 44 3.2 What Should be Measured? 44 3.3 Scales of Measurement 45 3.3.1 Nominal Scale 45 3.3.2 Ordinal Scale 46 3.3.3 Interval Scale 46 3.3.4 Ratio Scale 46 3.4 Four Levels of Data Measurement 47 3.5 The Criteria for Good Measurement 48 3.5.1 Validity 48 3.5.2 Reliability 50 3.5.3 Sensitivity 51 3.6 Measurement Scales 52 3.6.1 Single-Item Scales 52 3.6.2 Multi-Item Scales 56 3.6.3 Continuous Rating Scales 60 3.7 Factors in Selecting an Appropriate Measurement Scale 61 3.7.1 Decision on the Basis of Objective of Conducting a Research 61 3.7.2 Decision Based on the Response Data Type Generated by Using a Scale 62 3.7.3 Decision Based on Using Single- or Multi-Item Scale 62 3.7.4 Decision Based on Forced or Non-Forced Choice 62 3.7.5 Decision Based on Using Balanced or Unbalanced Scale 62 3.7.6 Decision Based on the Number of Scale Points and Its Verbal Description 63 Summary 64 • Key Terms 65 Discussion Questions 65 • Case 3 66 4 Questionnaire Design 69 4.1 Introduction 70 4.2 What is a Questionnaire? 71 viii Contents Modifi ed Date: Thu, Apr 14, 2011 11:38:15 AM Output Date: Thu, Apr 14, 2011 11:38:36 AM FPP Page Number: viii Project Name: Business Research Methods ACE Pro India Pvt. Ltd. \\192.168.4.30\project1\Pearson\Business Research Method\MAIN\A01\LAYOUT_A01\A01_NAVA_4481_EN_FM.indd 4.3 Questionnaire Design Process 71 4.3.1 Phase I: Pre-Construction Phase 71 4.3.2 Phase II: Construction Phase 73 4.3.3 Phase III: Post-Construction Phase 86 Summary 89 • Key Terms 89 Discussion Questions 90 • Case 4 90 5 Sampling and Sampling Distributions 93 5.1 Introduction 94 5.2 Sampling 94 5.3 Why Is Sampling Essential? 95 5.4 The Sampling Design Process 95 5.5 Random versus Non-Random Sampling 97 5.6 Random Sampling Methods 97 5.6.1 Simple Random Sampling 97 5.6.2 Using MS Excel for Random Number Generation 100 5.6.3 Using Minitab for Random Number Generation 100 5.6.4 Stratified Random Sampling 100 5.6.5 Cluster (or Area) Sampling 102 5.6.6 Systematic (or Quasi-Random) Sampling 103 5.6.7 Multi-Stage Sampling 104 5.7 Non-random Sampling 105 5.7.1 Quota Sampling 105 5.7.2 Convenience Sampling 105 5.7.3 Judgement Sampling 105 5.7.4 Snowball Sampling 106 5.8 Sampling and Non-Sampling Errors 106 5.8.1 Sampling Errors 106 5.8.2 Non-Sampling Errors 106 5.9 Sampling Distribution 108 5.10 Central Limit Theorem 110 5.10.1 Case of Sampling from a Finite Population 112 5.11 Sample Distribution of Sample Proportion p 113 Summary 118 • Key Terms 119 Discussion Questions 119 • Numerical Problems 119 Case 5 120 III Sources and Collection of Data 123 6 Secondary Data Sources 125 6.1 Introduction 126 6.2 Meaning of Primary and Secondary Data 126 Contents ix Modifi ed Date: Thu, Apr 14, 2011 11:38:15 AM Output Date: Thu, Apr 14, 2011 11:38:36 AM FPP Page Number: ix