MGT-491 QUANTITATIVE ANALYSIS AND RESEARCH FOR MANAGEMENT OSMAN BIN SAIF Session 5

Summary of Last Session Research design Classifications of Research design Discussed and compared; – Exploratory research designs – Descriptive research designs – Causal research designs

Potential sources of error Several sources of error can affect a research design. A good research design attempts to control the various sources of errors.

Total error It is the variation between the true mean value in the population of the variable of interest and the observed mean value obtained in the research study.

Total error (Contd.) Total Error Random Sampling Error Non Sampling Error

Random Sampling Error It occurs because the particular sample selected is an imperfect representation of the population of interest. Random sampling error is the variation between the true mean value of the population and the true mean value of the original sample.

Non Sampling Error They can be attributed to sources other than sampling and they may be random or non random. They result from a variety of reasons, including errors in problem definitions, approaches, scales, questionnaires design, interviewing method, and data preparation and analysis.

Non Sampling Error (Contd.) Non Sampling Error Response Error Non Response Error

Arises when some of the respondents included in the sample do not respond. The primary causes of response are refusals and not at homes. Non response error will cause the net or resulting sample to be different in size or composition from original sample.

Non Response Error (Contd.) It is defined as the variation between the true mean value of the variable in the original sample and the true mean value in the net sample.

Response Error Arises when respondents give inaccurate answers or their answers are misreported or misanalysed. It is defined as the variation between the true mean value of the variable in the net sample and the observed mean value obtained in the research study.

Response Error (Contd.) Response Error Researcher Error Interviewer Error Respondent Error

Researcher Error Surrogate Information Error Measurement Error Population Definition Error Sampling Frame Error Data Analysis Error

Surrogate Information Error Variation between the information needed for the marketing research problem and the information sought by the researcher. Consumer choice or perception

Measurement Error The variation between the information sought and the information generated by the measurement process employed by the researcher. For consumer preferences, employed a scale of perception.

Population Definition Error Variation between the actual population relevant to the problem at hand and the population as defined by the researcher.

Sampling Frame Error Variation between the population defined by the researcher and the population as implied by the sampling frame used. Telephone directory sample

Data Analysis Error Errors that occurs while raw data from questionnaires are transformed into research findings

Interviewers Errors Respondents Selection Error Questioning Error Recording Error Cheating Error

Respondent Selection Error Occurs when interviewers select respondents other than those specified by the sampling design or in a manner inconsistent with the sampling design.

Questioning Error Denotes errors made in asking questions of the respondents or in not probing when more information is needed.

Recording Error Arises due to errors in hearing, interpreting, and recording the answers given by the respondents.

Cheating Error Arises when the interviewer fabricates answers to a part or all of the interview.

Respondents Error Inability Error Unwillingness Error

Inability Error Results from the respondent’s inability to provide accurate answers. Respondents may provide inaccurate information because of; – Unfamiliarity – Fatigue – Boredom – Faulty recall – Question format and content

Unwillingness Error Arises from the respondent’s unwillingness to provide accurate information. Respondent’s may intentionally misreport their answers because of a desire to provide socially acceptable answers, avoid embarrassment or please the interviewer.

Budgeting and Scheduling the Project Budgeting and scheduling helps to ensure that the marketing research project is completed within the available resources in terms of; – Time, – Financial – Personal and other

Budgeting and Scheduling the Project (Contd.) By specifying the time parameters within which each task should be completed and the cost of each task. Management tools needed to help ensure that the research project is completed within the available resources.

Budgeting and Scheduling the Project (Contd.) Approaches for Budgeting and Scheduling; – Critical Path Method (CPM) – Program Evaluation and Review Technique (PERT) – Graphical Evaluation and Review Technique (GERT)

Critical Path Method (CPM) Management technique of dividing a research project into component activities, determining the sequence of these components and the time each activity will require.

Program Evaluation and Review Technique (PERT) A more sophisticated critical path method that accounts for the uncertainty in project completion times.

Graphical Evaluation and Review Technique (GERT) A sophisticated critical path method that accounts for both the completion probabilities and the activity costs.

Marketing Research proposal It contains the essence of the project and serves as a contract between researcher and management. It covers all phases of the marketing research process.

Marketing Research proposal (Contd.) It describes the research problem, the approach, the research design, data collection methods, data analysis methods, and reporting methods.

Marketing Research proposal (Contd.) Its official design contains; 1.Executive Summary; Summary of the major points from each section, presenting an overview of the entire proposal. 2.Background; The background to the problem including environmental context

Marketing Research proposal (Contd.) 3.Problem Definition/ Objective; A statement of problem including specific components. The objectives of the marketing research project should be clearly specified. 4.Approach to the problem; Review of the relevant academic and trade literature, with some kind of an analytical model. If research question and hypothesis developed, include them.

Marketing Research proposal (Contd.) 5.Research design; Which research design adopted? Information on; – Kind of information to be obtained – Method of administrating the questionnaire – Scaling techniques – Nature of questionnaire – Sampling plan and sampling size

Marketing Research proposal (Contd.) 6.Fieldwork/ Data collection; Discussion on how data will be collected and who will collect it? 7.Data Analysis; What kind of data analysis will be conducted and how the results will be interpreted?

Marketing Research proposal (Contd.) 8.Reporting; Specify whether intermediate reports will be presented and at what stages. What will be the form of final report and presentation 9.Cost and Time; The cost of project and time schedule, broken by phases In large projects a payment schedule should also be worked out in advance.

Marketing Research proposal (Contd.) 10.Appendices; Any statistical or other information that is of interest only to a few people should be contained in appendices.

Summary of This Session Potential Sources of Errors Total Error Budgeting and Scheduling the Project Marketing Research Proposal

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