UM2102

ACCOUNTING RESEARCH
METHODOLOGY
CHAPTER 7
Data Collection Methods (Interviews,
Observation & Questionnaires)

ACCOUNTING PROGRAM
Learning Objective
After completing Chapter 7 students should be able to:
• Define observation and discuss how observation may
help to solve business problems.
• Demonstrate the ability to make an informed
decision on an appropriate type of observational
method for a specific study.
• Explain the issues related to participant observation
and structured observation.
• Discuss the advantage and disadvantages of
observation.
Learning Objective (continued...)

• Compare and contrast different types of questionnaires.

• Design questionnaires to tap different variables.
• Discuss the issues related ro cross-cultural research.
• Discuss the advantages and disadvantages of various data
collection methods in survey reasearch.
• Discuss the advantages of multisources and multimethods
of data collection.
• Demonstrate awareness of the role of the manager in
primary data collection.
• Demonstrate awareness of the role of ethics in primary data
collection.
Subject
1. Data Collection Methods
2. Definition and Purpose of Observation
3. Four Key Dimensions That Characterize The Type of
Observation
4. Two Important Approaches to Observation
5. Advantages and Disadvantages of Observation
6. Types of Questionnaires
7. Guidelines for Questionnaires Design
8. International Dimension od Survey
9. Review of The Advantages and Disadvantages of Different
Data Collection Methods and When to Use Each
10.Multimethods of Data Collection
11.Managerial Implication
12.Ethics in Data Collection
Data Collection Mehtods
Since business is largely social phenomenon, much of
the information needed to make decisions in the work
setting has to come from people – for instance form
employees, consumers, managers, investors, and/or
suppliers.
For this reason, interviews, observations, and
questionnaires are very popular in business research.
These methods allow the researcher to collect a wide
variety of different sorts of data from human
respondents.
Data Collection Mehtods
Interviews
An interview is a guided, purposeful conservation
between two or more people.
There are many different types of interviews:
• Individual or group
• Unstructured or structured
• Conducted face to face
• By telephone
• Online
Data Collection Mehtods
Unstructured and Structured Interviews
Unstructured Interview are so lebeled because the
interviewer does not enter the interview setting with
a planned sequence of questions to be asked of the
respondent. A possible objective of an unstructured
interview is to bring some preliminary issues to the
surface so that the researcher can determine what
factors need furhter in-depth investigation.
Data Collection Mehtods
Unstructured and Structured Interviews
Structured Interviews are those condected when it is
known at the outset what information is needed. The
content of a structured interview can be prepared in
advance, an usually cosists of:
• An introduction: the interviewer introduces him-or
herself, the purpose of the interview, assures
confidentiality, asks permission to record the
interview;
• A set of topics (usually questions) in a logical order:
first “warm-up” questions (which are easy to answer
and non-threatening) and then the main questions
covering the purpose of the interview; (continued...)
 Data Collection Mehtods
Unstructured and Structured Interviews
Structured Interviews are those condected when it is
known at the outset what information is needed. The
content of a structured interview can be prepared in
advance, an usually cosists of: (...continued)
• Suggestions for probing questions: follow-up
questions that are used when the first answer in
unclear or incomplete, the interviewer does not fully
understand the answer, or in any other case where
the interviewer requires more specific or in-depth
information.
Definition and Purpose of Observation
• Observation concerns the planned watching,
recording, analysis, and interpretation of behavior,
actions, or events.
• Various approaches of observation have been used in
business research.
• This may be distinguished by four key dimensions that
characterize the way observation conducted.
1. Control
2. Whether the observer is a member of the group that
is observed or not
3. Structure
4. Concealmentof observation
Four Key Dimensions That
Characterize the Type of Observation
1. Controlled versus uncontrolled observational
studies.
2. Participant versus nonparcipant observation.
3. Structured versus unstructures observational
studies.
4. Concealed versus unconcealed observation.
Four Key Dimensions That
Characterize the Type of Observation
Controlled versus uncontrolled observational studies.
• Controlled observation may be carried out in a
laboratory (for intance, a simulated store
environment or trading room) or in the field (for
instance, a store). Controlled Observation occurs
when observational research is carried out under
carefully arranged condition.
• Uncontrolled Observation is an observational
technique that makes no attempt to control,
manipulate, or influence the situation. Events are
running their natural course and the researcher
observes these events without interfering in the real-
life setting.
Four Key Dimensions That
Characterize the Type of Observation
Participant versus nonparticipant observation.
• Participant Observation is an approach that has
frequently been used in case studies, ethnographic
studies, and grounded thoery studies. In
participant observation the researcher gathers data
by participating in the daily life of the group or
organization under study.
• In the case of nonparticipant observation, the
researcher is never directly involved in the action
of the actors, but observes them from outside the
actors’ visual horizon, for instance via one-way
mirror or camera.
Four Key Dimensions That
Characterize the Type of Observation
Structured versus unstructures observational studies.
• Structured observation is genereally quantitative in
nature. Usually, matters that pertain to the feature of
interest, such as the duration and frequency of an
event, as weel as certain activities that precede an
follow it, are recorded. Environmental condition and
any chages in setting are also noted, if considered
relevant.
• Unstructured onservation may eventually lead to a set
of tentative hypotheses that are tested in subsequent
research that is deductive in nature. Hence, inductive
discovery via observation can pave the way for
subsequent thery building and hypotheses testing.
Four Key Dimensions That
Characterize the Type of Observation
Concealed versus unconcealed observation.
• Concealment of observation relates to whether the
members of the social group under study are told that
they are being investigated. A primary advantege of
concealed observation is that the research subjects are
not influenced by the awareness that they are being
observed. Indeed, reactivity or the extent to which the
obsercer affects the situation under obsercation could
be a major threat to validity of the results of
observational studies.
• Unconcealed observation is more obstrusive, perhaps
upsetting the authenticity of the behaviour under study.
Two Important Approaches to
Observation
Two important, distinct approaches to observation
are:
1. Participant observation
2. Structured observation
Two Important Approaches to
Observation
Partcipant Observation – The Participatory Aspect
Participant observation should be distinguished from
both pure observation and pure participation.
• Pure observation seeks to remove the researcher
from the observed actions and behavior; the
researcher is never directly involved in the actions
and behavior of the group under study.
• Pure participation has been described as “going
native” ; the researcher becomes so involved with
the group under study that eventually every
objectivity and research interest is lost.
Two Important Approaches to
Observation
Partcipant Observation - The Observation Aspect
• An essential aspect of participant observation is
establishing “rapport”. Establishing rapport involves
establishing a trusting relationship with the social
group under study, by shoeing respect, being
truthful, and showing commitment to the well-
being of the group or the idividual members of the
group, so that they feel secure in sharing (senitive)
information with the researcher.
Two Important Approaches to
Observation
Structured Observation
• Structured is focused in nature, as it looks
selectively at predetermined phenomena. The
focus structured observation is fragmented into
small and manageable pieces of information (such
as information on behavior, actions, interactions, or
events).
Two Important Approaches to
Observation
The Use of Coding Schemes in Structured Observation
• The development of a coding scheme is a crucial
aspect of structured observation. Coding schemes
contain predetermined categories for recording what
is observed.
• The type of coding sheme you will use depends on
the information that you want to collect. Again, the
research question of your study aerve as the starting
point, in this case for development of a coding
scheme.
Two Important Approaches to
Observation
The Use of Coding Schemes in Structured Observation
• The following considerations should be taken into
account with regard to the construction of coding
scheme:
 Focus
 Objective
 Ease to use
 Mutually exclusive and collectively exhaustive
Advantages and Disadvantages of
Observation
• One of the main advantages of observation is its
directness. Another advantage of observation is
that it is possible to observe certain groups of
individuals from whom it may otherwise be difficult
to obtain information.
• Drawbacks of obsercational studies are reactivity,
observer bias, and that it is time comsuming ,
tedious and expensive.
Types of Questionnaires
• A questionnaires is a preformulated written set of
questions to which respondents records their
answers, usually within rather closely defined
alternatives.
• Questionnaires are generally design to collect large
numbers of quantitative data.
• They can be administrated with this following types:
 Personally administered questionnaires
 Mail questionnaires
 Electronic and online questionnaires
Guidelines for Questionnaire Design
Sound questioners design principles should focus on
three areas:
1. Relates to the wording of the questions.
2. Refers to the planningof issues with regard how the
variables will be categorized, scaled, and coded after
receipt of the responses.
3. Pertains to the general appearance of the
questionnaire.
All three are importans issues in questionnaire design
because they can minimize bias in research.
These issues and important aspects are schematically
depicted in figure on the next slide.
Guidelines for Questionnaire Design
Questionnaires Design
• Definition
Relate to how the questions are worded and measured,
and how the entire questionnaires is organized.

• The setting of the questionnaire design is divided into 3

major sections:
 Principles of Wording
 Principles of Measurement
 General Get-up
Principles of Wording
The principles of wording refer to such factors as:
1. The appropriateness of the content of the
questions.
2. How questions are worded and the level of
sophistication of the language used.
3. The type and form of questions asked.
4. The sequencing of the questions.
5. The personal data sought from the respondents.
Principles of Wording
1.Content and purpose of the questions.
The nature of the variable tapped - subjective feelings or
objective fact – will determine what kinds of questions are
asked.
If the variables tapped are of a subjective nature (e.g.,
satisfaction, involvement), where respondent’s beliefes,
perceptions, and attitudes are to be measured, the
questions should tap the dimensions and elements of the
concept.
Where objective variables, such as age and educational
levels of respondents, are tapped, a single direct question
– preferably one that has an ordinal scaled set of
categories – is appropriate.
Principles of Wording
2.Language and Wording of the Questionnaire.
The language of the questionnaire should approximate the
level of understanding of the respondents.
The choice of words will depend on their educational level,
the usage of terms and idioms in the culture, and the
frames of reference of the respondents.
Is it essential to word the questions in a way that can be
understood by the respondent.
If some questions are either not understood or are
interpreted differently by the respondent, the researcher
will obtain the wrong answer to the questions, and
responses will thus biased.
Hence, the questions asked, the language used, and the
wording should be appropriate to tap respondent’ attitidus,
perceptions, and feelings.
Principles of Wording
3.Type and form of questions.
The type of question refers to whether the question is
open-ended or closed. The form of the question refers to
whether it is positively or negatively worded.
• Open-ended versus closed questions
• Positively and negatively worded questions
• Double-barreled questions
• Ambiguous questions
• Recall-dependent questions
• Leading questions
• Loaded questions
• Social desirability
• Length of the questions
Principles of Wording
4.Sequencing of Questions.
The sequence of questions in the questionnaire should be
such that the respondent is led from questions of a general
nature to those that are more specific, and from questions
that are relatively easy to answer to those that are
progressively more difficult.
The language and wording of the questionnaire focus on
such issues as the type and form of questions asked, as well
as avoiding double-barreled questions, ambiguous
questions, leading questions, loaded questions, questions
prone to tap socially desirable answers, and those involving
distant recall.
Questions should also not be unduly long. Using the funnel
approach helps respondent to progress through the
questionnaire with ease and comfort.
Principles of Wording
5.Classification data or personal information.
Classification data, also known as personal information or
demographic questions, elicit such information as age,
educational level, marital status, and income.
Unless absolutely necessary, it is best not to ask for the
name of the respondent.
If, however, the questionnaire has to be identified with the
respondent for any reason, then the questionnaire can be
numbered and connected by the researcher to the
respondent’s name, in a separately maintained, private
document.
The procedures should be clearly explained to the
respondent.
The reason for using the numerical system in questionnaires
is to ensure the anonymity of the respondent.
Principles of Measurement
Just as there are guidelines to be followed to ensure that
the wording of the questionnaire is appropriate to
minimize bias, so also are there some principles of
measurement to be followed to ensure that the data
collected are appropriate to test our hypotheses.
These refer to the scales and scaling techniques used in
measuring concepts, as well as the assessment of
reliability and validity of the measures used.
Appropriate scales have to be used depending on the
type of data that need to be obtained.
The different scaling mechanisms that help us to anchor
our scales appropriately should be properly used.
Principles of Measurement
Wherever possible, the interval and ratio scales should be
used in preference to nominal or ordinal scales. Once
data are obtained, the “goodness of data” should be
assessed through tests of validity and reliability.
Validity establishes how well a technique, instrument, or
process measures a particular concept, and reliability
indicates how stably and consistently the instrument taps
the variable.
Finally, the data have to be obtained in a manner that
makes for easy categorization and coding, both of which
are discussed later.
General Appearance or “getup” of the
questionnaire
Not only is it important to address issues of wording and
measurement in questionnaire design, but it is also
necessary to pay attention to how the questionnaire
looks.
An attractive and neat questionnaire with appropriate
introduction, instructions, and well-arrayed set of
questions and response alternatives will make it easier
for the respondents to answer them.
A good introduction, well-organized instructions, and
neat alignment of the questions are all important.
Organizing questions, giving instructions and
guidance, and good alignment
Organizing the questions logically and neatly in
appropriate sections and providing instructions on how
to complete the items in each section will help the
respondents to answer them without difficulty.
Questions should also be neatly aligned in a way that
allows the respondent to complete the task of reading
and answering the questionnaire by expending the
least time and effort and without straining the eyes.
Information on income and other sensitive
personal data
Although demographic information can be sought either
at the beginning or at the end of the questionnaire,
information of a very private and personal nature such as
income, state of health, and so on, if considered at all
necessary for the survey, should be asked at the end of
the questionnaire, rather than the beginning.
Also, such questions should be justified by explaining how
this information might contribute to knowledge and
problem solving, so that respondents do not perceive
them to be of an intrusive or prying nature (see example
below).
Postponing such questions to the end will help reduce
respondent bias if the individual is vexed by the personal
nature of the question.
Open-ended question at the end
The questionnaire could include an open-ended
question at the end, allowing respondents to
comment on any aspect they choose. It should end
with an expression of sincere thanks to respondents.
International Dimensions of Surveys
• With the globalization of business operations,
managers often need to compare the business
effectiveness of their subsidiaries in different
contries.
 Special issues in intrumentation for cross-
cultural research
 Issues in cross-cultural data collection.
Review of The Advantages and Disadvantages of
Different Data Collection Methods and When to Use
Each
Personal Interview (face to face interview)
• Advantages
• Can clarify doubts about questionnaire
• Can pick up non-verbal clues
• Relatively high response/cooperation
• Special visual aids and scoring devises can be used

• Disadvantages
• High costs and time intensive
• Geographical limitations
• Response bias / Confidentiality difficult to be assured
• Some respondents are unwilling to talk to strangers
• Trained interviewers
Review of The Advantages and Disadvantages of
Different Data Collection Methods and When to Use
Each
Telephone interviews
• Advantages
• Discomfort of face to face is avoided
• Faster / Number of calls per day could be high
• Lower cost

• Disadvantages
• Interview length must be limited
• Low response rate
• No facial expressions
Review of The Advantages and Disadvantages of
Different Data Collection Methods and When to Use
Each
Self-administered (personally administering
questionnaires)
• Advantages
• Lowest cost option
• Expanded geographical coverage
• Requires minimal staff
• Perceived as more anonymous

• Disadvantages
• Low response rate in some modes
• No interviewer intervention possible for clarification
• Cannot be too long or complex
• Incomplete surveys
Multimethods od Data Collection
• Because almost all data collection methods have some
bias associated with them, collecting data through
multimethods and from multiple source lends rigor to
research.
• For instance, if the responses collected through
interviews, questionnaires, and observation are strongly
correlated with one another, then will have more
confidence about goodness of the collected data.
• Good research entails collection of data from multiple
source and through multiple data collection methods.
• Such research, though, is more costly and time
consuming.
Managerial Implications
• Basic knowledge of the characteristics and the
advantages and disadvantages of primary methods
to data collection will help you to evaluate
alternative approaches to primary data collection
and to understand why a consultant has opted for a
certain method or for a combination of methods.
• Based on the complexity and gravity of the
situation, manager will able tno decide at what
level of sophistication you want data to be
collected.
Ethics in Data Collection
Ethics and the researcher
1. Treating the information given by the respondent
as stricly confidential and guarding his or her
privacy is one of the primary responsibilities of
the researcher.
2. Personal of seemingly intrusive information
should not be solicited, and if it is absolutely
necessary for the project, it should be tapped
with high sensitivity to the respondent, offering
specific reasons. (...continued)
Ethics in Data Collection
Ethics and the researcher (...continued)
3. Whatever the nature of the data collection
method, the self-esteem and self-respect of the
subjects should never violated.
4. No one should be forced to respond to the survey
and if someone does not want to avail
themselves of the opportunity to participate, the
individual’s desire be respected. Informed
consent of the subject should be the goal of the
researcher. (...continued)
Ethics in Data Collection
Ethics and the researcher (...continued)
5. Nonparticipant observes should be as unintrusive
as possible. In qualitative studies, personal values
could easily bias the data. It is necessary for the
researcher to make explisit his or her
assumptions, expectations, and biases, so that
informed decisions regarding the quality if the
data can be made by the manager. (...continued)
Ethics in Data Collection
Ethics and the researcher (...continued)
6. Posting invitations to participate in a survey social
networks, discussion groups, and chat rooms is
often perceived as a “spam”. Make sure thar you
are familiar with, and that you act in accordance
with, anti-spam legislation and guidelines.
7. There should be absolutely no misrepresentation
or distortion in reporting the data collected
during the study.
Ethics in Data Collection
Ethics behaviour of the respondents
1. The subject, once having exercised the choice to
participate in a study, should cooperate fully in
the task ahead, such as responding to a survey.
2. The respondent also has an obligation to be
truthful and honest in the reponses.
Misrepresentation or giving information, knowing
it to be untrue, should be avoided.
Questions and Answers