DDU

Research Methodology

Instructor :- Abebayehu H.
 Course Contents
1 Introduction to Business Research 5. Sampling Design
– What is research and business research? – Why sampling?
– How scientific is business research? – What is a good sample
– Types of sampling: Probability vs Non-
– What is good research? probability
2. The Research Process 6. Measurement
– Major components of the research – Levels of measurement: Nominal, Ordinal,
process Interval, Ratio
3. The Research Proposal – Sources of errors in measurement
– What is Research Proposal? – Characteristics of good measurement: Validity,
reliability and practicality
– Structure of Research Proposal
7. Business Research Case Studies
4. Research Design and the Research Report Writing
– What is Research Design?
– Types of Research Designs
• Exploratory
• Descriptive
• Causal

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 Chapter 1
Introduction to Business Research

1.What is research and business

research?
2.How scientific is business
research?
3. Types of Research
1.1 What Is Research And Business
Research?
 Research – the systematic and
scientific investigation of
materials and sources in order to
establish facts and reach new
conclusions for the advancement of
knowledge.
1.1 What Is Research And Business
Research?...
 Business Research can be defined as
“ The systematic and objective process
of Gathering, Recording and Analyzing
data for aid in making business
decisions” (Zikmund, 2002)
• Business Research is hence aimed at
Improving the Quality of Decision-Making
which, in turn, benefits the organization
and helps ensure its continuity and
efficiency

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1.2 How Scientific Is Business Research?...
Fields Where Business Research is Often Used
General Business Conditions and
Corporate Research
• Short- & Long-Range Forecasting,
• Business and Industry Trends
• Global Environments
• Inflation and Pricing
• Plant and Warehouse Location
• Acquisitions
• Transportation

Management and Organizational

Behaviour Research
• Total Quality Management
• Morale and Job Satisfaction
• Leadership Style
• Employee Productivity
• Organizational Effectiveness
• Structural Issues
• Absenteeism and turnover
• Organizational Climate
1.2 How Scientific Is Business Research?...
Fields Where Business Research is Often Used
Information Systems
Research
Sales and Marketing  Knowledge and information needs
Research assessment
 Computer information system use
 Market Potentials and
 Market Share evaluation
 Market segmentation  Technical suppot satisfaction
 Database analysis
 Market characteristics  Data mining
 Sales Analysis  Enterprise resource planning
 Establishment of sales quotas systems
 Distribution channels Corporate
 Customer Responsibility
relationship
 New product concepts Research
management systems
 Test markets  Ecological Impact
 Advertising research  Legal Constraints on advertising and
promotion
 Buyer behaviour  Sex, age and racial discrimination /
 Customer satisfaction worker
 Website visitation rates equity
 Social values and ethics

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 1.2. How Scientific Is Business
Research?...
Scientific Method in Business Research

• The Scientific Method - is a

systematic method of investigation,
evaluation, experimentation,
interpretation and theorizing.

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 1.3 Types of Research
Research can be Classified on
different basis in to FIVE
Categories.
1. Basis on Outcome of the Research
2. Basis on the Purpose
3.Basis on the Process of Research: (on the basis
of data used)
4. Basis on the Environment
5.Basis on the Time Required to complete the
research
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Types of Research…
1) Basis on the Outcome of the Research:
1. Fundamental Research/ Basic,
or Academic or Pure Research -only for the
attainment of knowledge and truth
2. Applied Research :-A research aimed at
finding a solution for an immediate problem
facing a society, a group or industry (business
organization).
Types of Research…
1) Basis on the Outcome of the Research…

 Fundamental/Basic Research aims to expand the

frontiers of science and knowledge by verifying or disproving the
acceptability of a given theory or attempting to discover more about a certain
concept (non-specificity)
Example: How does motivation affect employee performance?

 Applied Research focuses on a real-life problem or

situation with a view to helping reach a decision how to deal with it
(Specificity)
Example: Should Corporation X adopt a paperless office
environment?

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 . Types of Research…
1) Basis on the Outcome of the Research…
Types of Applied Researches:
1. Social impact Analysis:
– • Community service (School enrolment, speed of policy respond)
– • Social conditions (crime rate etc)
– • Economic impact (change in income level)
– • Demographic consequences (change in the mix of old and young people,
population movement in or out of the area)
– • Environment impact
– • Health outcomes

2. Evaluation Research: Formative and Summative

Addresses the question,“did it work?
Some example of evaluation research questions is,
•Does the new incentive scheme improve workers job performance?
•Does the environmental policy improve the environmental problem of the
city?
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 Types of Research…
2. Basis on the Purpose ( They are 4)
1) Exploratory Research
(preliminary research): aimed at discovering,
identifying and formulating a research problem
and hypothesis- few or no studies
2) Descriptive Research:- the state of nature or
affairs, as it exists at present. In social science and business
research we often use the term ex-post facto research for
descriptive research. The main characteristic of such research
is that the researcher has no control over the variables; he can
only report what has happened or what is happening.

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 Types of Research…
2. Basis on the Purpose ( They are 4)…
3) Analytic Research
• Analytical Research uses facts or information already
available, and analyzes them to make a critical evaluation of the
material. Not only describe the characteristics, but also it
analyzes and explains why and how it happened or is happening.
The information or facts used here can be either Qualitative or
Quantitative.
Case studies
Goals of Analytical Research
Tracer Study
– To determine the accuracy of a principle or a theory
– To find out which competing explanation is better
– To advance knowledge about an underling process
– To link different issues or topics under a common general statement
– To build and elaborate a theory so it becomes more completes
– To extend a theory or principle into new areas or issues
– To provide evidence to support or refute an explanation or prediction

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 Types of Research…
2. Basis on the Purpose ( They are 4)…

4) Predictive Research
• Such research goes beyond explaining why and how things
happened.
• It predicts (forecast) the possible (probability) of happening
similar situation in other places.
• It tries to explain about the probability of happening similar
thing in the future.
E.g.
– How would an increase in interest rate affect our
profit margin?
– What type of packaging will improve the sales
of our products?
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 Types of Research…
3.Basis on the Process of Research: (on the
basis of data used):
1) Qualitative Research:
– Such research is applicable for phenomenon that cannot be expressed in
terms of quantity. Things related to quality and kind. Research designed to
find out how people feel or what they think about a particular subject or
institution is an example of such research.
2) Quantitative Research
– It is based on the measurement of quantity or
amount. It is applicable for phenomenon that can be
expressed in term of quantity.

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 Types of Research…
4. Basis on the Environment in which the
research is carried out:
1) Field Research
• It is a research carried out in the field. Such research is common in Social
science, Agricultural science, History and Archeology.

2) Laboratory Research / Experimental Research

– It involves comparing two groups on one outcome measure to test some
hypothesis regarding causation
– Such researches are common in Medical Science, Agriculture and in general
in
Natural Sciences

3) Simulation Research / Correlation Research

• Such research uses models to represent the real world. Simulation is
common
in Physical science, Economics and Mathematics. :
The goal is to determine whether two or more variables
are related.
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 Types of Research…
5.Basis on the Time Required to complete the
research:

1) One -time research- It is a research

limited to a single time period
2) Longitudinal research
• Such research is also called on-going research. It
is a research carried out over several time
periods.

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Research Methodology vs. Research Method

Research method refer to the methods the

researchers use in performing research operations.
Research methodology is a way to systematically
solve the research problem. It may be understood
as a science of studying how research is done
scientifically.
Theoretical and Empirical research

Conceptual vs. Empirical: Conceptual research is

that related to some abstract idea(s) or theory. It is
generally used by philosophers and thinkers to
develop new concepts or to reinterpret existing
ones. On the other hand, empirical research relies
on experience or observation alone, often without
due regard for system and theory.
 Chapter 2
The Research Process

Major Components Of The

Research Process

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 Chapter 2 -The Research Process…
• 1. Selection of Research Problem
• 2. Literature Reviews
• 3. Research Questions(Making
Hypothesis)
• 4. Preparing the Research
Design
• 5. Selecting Sampling
methods
• 6. Set Data collection
Instruments
• 7. Data Analysis
• 8. (Hypothesis Testing)
• 9. Generalization and
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 Chapter 2 -The Research Process…
1. Selection of Research Problem
• The selection of topic for research is a
difficult job.
• When we select a title or research
statement, then other activities would
be easy to perform.
• So, for the understanding thoroughly the
problem it must have to discuss with
colleagues, friend, experts and
teachers.
• The research topic or problem should
be
practical, relatively important, feasible,
ethically and politically acceptable.

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 Chapter 2 -The Research Process…
2. Literature Reviews

In this part the following three

key areas have to covered:

1. Theoretical Reviews
2. Empirical Reviews
3. Conceptual Framework

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 Chapter 2 -The Research Process…

3. Making Hypothesis
• The development of hypothesis is a
technical work depends on the
researcher experience.
• The hypothesis is to draw the
positive & negative cause
and effect aspects of a
problem.
• Hypothesis narrows down the area
of a research and keep a
researcher on the right path.
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 Chapter 2 -The Research Process…
4. Preparing the Research Design
• After the formulation of the problem and
creating hypothesis for it, research
Design is to prepare by the researcher.
• It may draw the conceptual structure of
the problem.
• Any type of research design may be
made, depend on the nature and purpose
of the study.
• During Research Design, the
information about sources, skill, time
and finance is taken into consideration.

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 Chapter 2 -The Research Process…

5. Sampling
• The researcher must design
a sample.
• It is a plan for taking its
respondents from a specific
areas or universe.
• The sample may be of two types:
– 1. Probability Sampling
– 2. Non-probability Sampling

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 Chapter 2 -The Research Process…
6. Data collection
• Data collection is the most important
work, in researcher.
• The collection of information must be
containing on facts which is from
the following two types of
researcher.
• Primary Data Collection: Primary data
may be from the following.
– 1. Experiment
– 2. Questionnaire
– 3. Observation
– 4. Interview
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 Chapter 2 -The Research Process…

6. Data collection…
• Secondary data collection: it has
the following categories:
– 1. Review of literature
– 2. Official and non-official reports
– 3. Library approach
– 4. Data Analysis

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 Chapter 2 -The Research Process…
6. Data collection…
• When data is collected, it is forwarded for
analysis which is the most technical job.
• Data analysis may be divided into two
main
categories:-
1. Data Processing: it is sub-divided into the
following.
• Data editing, Data coding, Data classification,
Data
tabulation, Data presentation, Data measurement
2. Data Exposition: Data Exposition has the
following sub-categories.
• Description, Explanation, Narration,
Conclusion/Findings, Recommendations/Suggestions
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 Chapter 2 -The Research Process…

8. Hypothesis Testing
• Research data is then forwarded
to test the hypothesis.
• Do the hypothesis are related
to the facts or not?
• To find the answer the process of
testing hypothesis is undertaken
which may result in accepting or
rejecting the hypothesis.

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 Chapter 2 -The Research Process…

9. Generalization and Interpretation

• The acceptable hypothesis is
possible for researcher to arrival
at the process of generalization or
to make theory.
• Some types of research has no
hypothesis for which researcher
depends upon on theory which is
known as interpretation.

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 Chapter 2 -The Research Process…

10. Preparation of Report

• Report Design in Primary Stages
– The report should carry a title,
– brief introduction of the problem and
background followed by
acknowledgement.
• There should be a table of contents,
graphs and charts.

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 Chapter 2 -The Research Process…
10. Preparation of Report…
• Main Text of the Report
– It should contain objectives, hypothesis,
explanations and methodology of the
research.
– It must be divided into chapters and every
chapter explains separate title in which
summary of the Findings, Conclusion And
Recommendations should be enlisted.
• Closing the Report
– After the preparation of report, the last step in
business research process contains of
bibliography, references, appendices, index
and maps or charts for illustration.

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 Chapter 3
The Research Proposal

1. What is Research Proposal?

2. Structure of Research Proposal

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 3.1 What is Research Proposal?...

• Research Proposal:-
– Is a document proposing a research project,
generally in the sciences or academia
– (and sometimes constitutes a request
for sponsorship of that research)

– Proposals are evaluated on

– the Cost And Potential Impact Of The Proposed
research, and
– on The Soundness Of The Proposed Plan for
carrying it out.

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 3.1 What is Research Proposal?...

Types of Research Proposal:-

1. Solicit - meaning they are

submitted in response to a
request with specified prior
requirements
2. Unsolicited - meaning they are
submitted without prior request

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3.2 Structure of Research Proposal
A Structure of Research Proposal - is a
concise and coherent summary of your
proposed research.
It Primary Consists of three Parts:-
1. Chapter 1- INTRODUCTION

2. Chapter 2- LITERATURE REVIEW

3. Chapter 3- RESEARCH METHODOLOGY

Pulse:-
– TIME TABLE
– REFERENCES
– ANNEXES
• Research Questionnaires
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 3.2 Structure of Research Proposal…

CHAPTER ONE – INTRODUCTION

1. Background of the Study
– What is known about the broad topic?
– What are the gaps or missing links that
need to be addressed?
– What are the rationale and hypothesis
of your study?
– What motivated to do survey in such
title?
– What is the purpose of your
research
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 3.2 Structure of Research Proposal…

1.2 Statement of the Problem

– Here…Discuss what other studies have said about your research
topic and how your research relates to that of other scholars who
have written on the topic.
– Provide a statement of the question, issue or general problem that
you are examining.
• Part A (The ideal): Describes a desired goal or ideal situation; explains
how things should be.
• Part B (The reality): Describes a condition that prevents the goal, state,
or value in Part A from being achieved or realized at this time; explains how
the current situation falls short of the goal or ideal. ( Show the gaps observed)
• What do other Researchers do in the area and what kinds of Gap/s you
observed?
• Part C (The consequences): Identifies the way you propose to
improve the current situation and move it closer to the goal or ideal. ( Show
the importance of your research to fill such gaps)

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 3.2 Structure of Research Proposal…

1.3 Research Question

• Make sure the research question is fully
stated in one place.

4. Objectives of the
Study
1. General Objectives
2. Specific Objectives
5. Scope and Limitation
6. Significance of the
Study
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 3.2 Structure of Research Proposal…

CHAPTER TWO: REVIEW OF LITERATURE

• 2.1 Theoretical Reviews
– 2.1.1 Term Definition
– 2.1.2 Concept Briefing
– 2.1.3 e.t.c ( This list depends up on your research title and focus area)
• 2.2 Empirical Reviews
– Here do critical reviews of related researches in your topic area.
– Try to summarize it in Table form in brief and put summary to link with
your Title
• 2.3 Conceptual Framework
– Prepare your Research frame work here- talk about your Dependent and
independent Variables. Also if you can, give briefing about your research
model here.

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 3.2 Structure of Research Proposal…
CHAPTER THREE - RESEARCH METHODOLOGY
• 3.1 Research Area
• 3.2 Research Design
• 3.3 Data Type and Source
– 3.3.1 Data Type
– 3.3.2 Data Source
• 3.4. Sample Size Determination
• 3.5. Sampling Methods
• 3.6 Data Collection Methods and Instruments
• 3.7 Data Processing and Presentation
• 3.8. Methods of Data Analysis
• 3.9. Ethical Consideration

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 3.2 Structure of Research Proposal…

Others Like:-
– TIME TABLE
– REFERENCES (Bibliographies) -(Also
known as “Works Cited,” “References,” or “Literature
Cited”) - Generally this is done in alphabetical order
by the last name of the author. Citation styles:
Vancouver and Harvard systems
– ANNEXES
– Research Questionnaires

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 3.2 Structure of Research Proposal…
EDITING YOUR RESEARCH PROPOSAL
• The quality of the writing in the proposal (and the research
paper) is important.
• Check for the following common errors:
– (a) Are the sentences too long? You can improve your writing
immensely by using shorter sentences.
– (b) Are the paragraphs too long? This is a common problem
that makes it harder to read a paper.
– (c) Is any of the writing awkward, vague, long-winded, or too
informal? The best writing is concise, to the point, and without
a unnecessary word.
– (d) Avoid unintentional plagiarism: have you cited your sources
each time you express an idea that is not you own?
– (e) Have you utilized the correct style for citing articles or
books? Adopt the citation style of the major journals in your
field or the one your mentor prefers.

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 Chapter 4
Research Design
1. What is Research Design?
2. Types of Research Designs
 Exploratory Research Design
 Causal or (Experimental) Research Design
 Descriptive Research Design
 4.1 What is Research Design?...

What is a Research Design?

• Research Design- It is
just a Road Map or a Plan of
Action
• Research Design is a broad
framework that states the
total pattern of
conducting research
project.
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 4.1 What is Research Design?...

• A Research Design
–It is the set of methods and
procedures used in collecting,
analyzing and measures of
the variables specified in the
problem research.
– It specifies data collection and analysis
methods, time, costs, responsibility,
probable outcomes, and actions.

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 4.2 Types of Research Design

Types Of Research Designs (3)

1) Exploratory Research Design

2) Causal or Experimental Research

Design

3) Descriptive Research design

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 4.2 Types of Research Design…
Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal/Experimental
Research Des. Research Des.
Distinguish
Cause & Effect

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Sectional
Design Design
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1

Business Research Methods

 4.2 Types of Research Design…
1. Exploratory Research Design
• Exploratory Research is defined as a
research used to investigate a problem
which is not clearly defined.
• It is conducted to have a better understanding
of the existing problem, but will not provide
conclusive results.
• For such a research, a researcher starts with a general
idea and uses this research as a medium to
identify issues, that can be the focus for
future research.

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 4.2 Types of Research Design…
1. Exploratory Research Design…

• Exploratory research design is characterized by flexibility

to gain insights and develop hypotheses.
• It does not follow a planned questionnaire or sampling.
• It is based on literature survey, experimental survey, and
analysis of selected cases.
• Unstructured interviews are used to offer respondents a
great deal of freedom.
• No research project is purely and solely based on this
design.
• It is used as complementary to descriptive design
and causal design.

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 4.2 Types of Research Design…
1. Exploratory Research Design…

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 4.2 Types of Research Design…
2. Causal or Experimental Research Design

• Causal Research Design -

deals with determining cause
and effect relationship.

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 4.2 Types of Research Design…
2. Causal or Experimental Research Design…

• It tries to measure impact of manipulation

on
• Independent Variables
– like price, products, advertising and selling
efforts or marketing strategies in general
– Dependent Variables
• like sales volume, profits, and brand image and brand
loyalty

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 4.2 Types of Research Design…
2. Causal or Experimental Research Design…

• It has more practical value in

resolving marketing problems.
• Researcher can set and
test hypotheses by
conducting experiments.

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 4.2 Types of Research Design…
3. Descriptive Research Design

• Descriptive Research Design is typically

concerned with describing problem and
its solution.
• It is more specific and purposive study.
• Before attempts are made for descriptive
study, the well-defined problem must be
on hand.

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 4.2 Types of Research Design…
3. Descriptive Research Design…

• It is more precise and specific.

• Unlike exploratory research, it is not
flexible.
• Descriptive research requires clear
specification of
– who, why, what, when, where, and how of
the research.

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 4.2 Types of Research Design…
3. Descriptive Research Design…

1)Cross-sectional Designs
2)Longitudinal Designs

Business Research Methods

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Course Instructor: Dr. Asfaw Yilma
 4.2 Types of Research Design…
3. Descriptive Research Design…

Types of Descriptive Research Design

I. Cross-sectional Designs
• 1.Single Cross-sectional Designs, there is only one
sample of respondents and information is obtained
from this sample only once.
• 2. Multiple Cross-sectional Designs, there are two
or more samples of respondents, and information
from each sample is obtained only once. Often,
information from different samples is obtained at different
times.
• 3. Cohort Analysis consists of a series of surveys
conducted at appropriate time intervals, where the
cohort serves as the basic unit of analysis. A cohort
is a group of respondents who experience the
same event within the same time interval.
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 4.2 Types of Research Design…
3. Descriptive Research Design…

Types of Descriptive Research Design

II. Longitudinal Designs

• A fixed sample (or samples) of population
elements is measured repeatedly on the
same variables
• A longitudinal design differs from a cross-
sectional design in that the sample or
samples remain the same over time

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 Chapter 5
Sampling Design
1. What is Sampling?
2. Types of Sampling:
Probability Vs Non-probability
3. The Use of Sampling

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 5.1 What is Sampling?
• Sampling- is a the process of
selecting certain members or a
subset of the population to
make statistical inferences
from them and to estimate
characteristics of the whole
population
–Population symbolizes by „N‟
–Sample denotes by „n‟
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 5.2 Types of Sampling
• Any Business Or Market Research
study requires two basic types of
sampling They are:

1) Probability sampling
2) Non-probability
sampling

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 5.2 Types of Sampling…
1. Probability Sampling - is a
sampling method that selects
random members of a population by
setting a few selection criteria.
– It allow every member to have
the equal opportunities to be a
part of various samples.

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 I. Types of Sampling:
Probability Sampling Methods
• Probability Sampling is a sampling
technique in which sample from a larger
population are chosen using a method
based on the theory of probability.
• This sampling method considers every
member of the population and forms
samples on the basis of a fixed process.
– For example, in a population of 1000 members, each
of these members will have 1/1000 chances(0.001) of
being selected to be a part of a sample. It gets rid of bias
in the population and gives a fair chance to all members
to be included in the sample.
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Types of Sampling: Probability Sampling Methods…

• There are 4 types of probability

sampling technique:
1)Simple Random Sampling
2)Cluster Sampling
3)Systematic Sampling
4)Stratified Random Sampling

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Types of Sampling: Probability Sampling Methods…

1. Simple Random Sampling- It is a

trustworthy method of obtaining
information where every single
member of a population is chosen
randomly, merely by chance and each
individual has the exact same
probability of being chosen to be a part
of a sample.
– For example, in an organization of 500 employees, if
the HR team decides on conducting team building activities,
it is highly likely that they would prefer picking chits
out of a bowl. In this case, each of the 500 employees
has an equal opportunity of being selected.
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Types of Sampling: Probability Sampling Methods…

2. Cluster Sampling -
Cluster sampling is a method
where the researchers divide the
entire population into sections or
clusters that represent a
population.
– Clusters are identified and included in a
sample on the basis of defining
demographic parameters such as:
•
Age, Location, Sex etc. which
makes it extremely easy for a survey
creator to derive effective inference from
the feedback.
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Types of Sampling: Probability Sampling Methods…

3. Systematic Sampling - is a method

where by members of a sample are
chosen at regular intervals of a
population.
– This type of sampling method has a predefined
interval and hence this sampling technique is
the least time-consuming.
– It requires selection of a starting point for the sample
and sample size that can be repeated at regular
intervals.
– For example, a researcher intends to collect a systematic
sample of 500 people in a population of 5000. Each element of
the population will be numbered from 1-5000 and every 10th
individual will be chosen to be a part of the sample
• Total population/ Sample Size = 5000/500 = 10
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Types of Sampling: Probability Sampling Methods…

4. Stratified Random Sampling- is a

method where the population can be
divided into smaller groups, that
don‟t overlap but represent the entire
population together.
• While sampling, these groups can be organized
and then draw a sample from each group
separately.
– For example, a researcher looking to analyze the characteristics of people
belonging to different Annual Income Divisions, will create strata
(groups) according to annual family income such as – Less than $20,000,
$21,000 – $30,000, $31,000 to $40,000, $41,000 to $50,000 etc.
and people belonging to different income groups can be observed to draw
conclusions of which income strata have which characteristics.
– Marketers can analyze which income groups to target and which ones to
eliminate in order to create a roadmap that would definitely bear fruitful
results.

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The Use of the Probability Sampling Method…
The uses of the probability sampling method
can be:-
• Reduce Sample Bias: Using the probability
sampling method, the bias in the sample
derived from a population is negligible to non-
existent.
• Diverse Population: When the population is
large and diverse, it is important to have
adequate representation so that the data
is not skewed towards one demographic
.
• Create an Accurate Sample: Probability
sampling helps the researchers plan and
create an accurate sample.
– This helps to obtain well-defined data.

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 II. Types of Sampling: Non-
probability Sampling Methods
• The Non-probability Sampling
Method is a method that involves a
collection of feedback on the basis of a
researcher‟s or statistician‟s sample
selection capabilities and not on a
fixed selection process.
– We can choose in a situations such as the
preliminary stages of research or where
there are cost constraints for conducting
research, where non-probability sampling
will be much more effective than the other
type.

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 Types of Sampling: Non-probability Sampling Methods….

• There are 4 types of Non-

Probability Sampling:-

1) Convenience sampling
2) Judgmental or Purposive Sampling
3) Snowball sampling
4) Quota sampling

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 Types of Sampling: Non-probability Sampling Methods….

1. Convenience Sampling: This

is dependent on the easiness of
method
access to subjects such as
surveying customers at a mall
or passers-by on a busy street.
– Researchers have nearly no authority
over
selecting elements of the sample and it‟s
purely done on the basis of proximity and not
representativeness.
– We used it when there are time and cost limitations in
collecting feedback.
– In situations where there are resource limitations
such
as the initial stages of research, convenience sampling
is used.
• For example, startups and NGOs usually conduct convenience sampling at a mall to
distribute leaflets of upcoming events or promotion of a cause – they do that by standing
2/7/2021 at the entrance of the mall and giving out pamphlets randomly.
 Types of Sampling: Non-probability Sampling Methods….

2. Judgmental or Purposive Sampling- this is

formed by the carefulness of the judge purely
considering the purpose of study along with the
understanding of target audience.
– Also known as deliberate sampling, the
participants are selected solely on the
basis of research requirements and
elements who do not suffice the purpose
are kept out of the sample.
• For instance, when researchers want to understand the
thought process of people who are interested in studying for
their master’s degree.
– The selection criteria will be: “Are you interested in studying for
Masters in …?” and those who respond with a “No” will be excluded
from the sample.

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 Types of Sampling: Non-probability Sampling Methods….

3. Snowball Sampling - is a
method that is used in studies which
sampling
need to be carried out to
understand subjects which are
difficult to trace.
• For example, it will be extremely challenging to
survey shelter-less people or illegal
immigrants
– In such cases, using the snowball theory,
researchers can track a few of that particular
category to interview and results will be
derived on that basis
• This sampling method is implemented in situations
where the topic is highly sensitive and not openly
discussed such as conducting surveys to gather information about
HIV Aids.
– Not many victims will readily respond to the questions but researchers can
contact people they might know or volunteers associated with the cause to get
in touch with the victims and collect information.
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 Types of Sampling: Non-probability Sampling Methods….

4. Quota Sampling - In Quota sampling,

selection of members in this
sampling technique happens on
basis of a pre-set standard.
– In this case, as a sample is formed on basis
of specific attributes, the created
sample will have the same attributes that
are found in the total population.
– It is an extremely quick method of collecting
samples.

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The Use of the non-Probability Sampling Method…
There are multiple uses of the non-probability sampling method. They are:

1. Create a hypothesis: is used to create a

hypothesis when limited to no prior information
is available. This method helps with
immediate return of
data and helps to build a base for any further
research.
2. Exploratory research: This sampling technique is
widely used when researchers aim at conducting
qualitative research, pilot studies or exploratory research.
3. Budget and time constraints: The non-
probability method when there are budget and time
constraints and some preliminary data has to be collected.
Since the survey design is not rigid, it is easier to pick
respondents at random and have them take
the survey or questionnaire.
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 5.2 Types of Sampling…
Types of Sampling in Summary

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Differen ce between Probability Sampling and
No n-Probability Methods
Sampling
Key Issues Probability Sampling Methods Non-Probability Sampling Methods

Non-probability sampling is a samplin

Probability Sampling is a sampling technique in which sample technique in which the researcher selec
Definition from a larger population are chosen using a method based on samples based on the subjective judgme
the theory of probability. of the researcher rather than random

selection.
Alternatively Known
Random sampling method. Non-random sampling method
as
Population selection The population is selected randomly. The population is selected arbitrarily.
Market Research The research is conclusive in nature. The research is exploratory in nature.

Since the sampling method is arbitrar

Since there is method to deciding the sample, the population
Sample
the population
demographics is conclusively represented.
demographics representation is alm

always skewed.
Take a longer time to conduct since the research design This type of sampling method is quic
Time Taken defines the selection parameters before the market research since neither the sample or selectio

study begins. criteria of the sample is undefined.

This type of sampling is entirely biase
This type of sampling is entirely unbiased and hence the
Results and hence the results are biased to
results are unbiased too and conclusive.
rendering the research speculative.
In probability sampling, there is an underlying hypothesis In non-probability sampling, the
Business Research Methods
Hypothesis
2/7/202 before the study begins and theInstructor:
objectiveDr.
ofAsfaw
this Yilma
method is to hypothesis is derived after conducting t
1 Course
 Chapter 6
Measurement
1. Definition of Measurement in Research
2. Levels of measurement:
Nominal, Ordinal, Interval, Ratio
3. Sources of errors in measurement
4. Characteristics of good measurement:
Validity, reliability and practicality

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6.1 What is Measurement?

• Measurement is the process of

observing and recording the
observations that are
collected as part of a research
effort.

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6.1 What is Measurement?...
• There are two major issues that
will be considered here.
– First researcher should understand the
fundamental ideas involved in
measuring.
– Second, researcher should understand
the different types of measures that
he/she might use in Business research

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6.2 Levels of Measurement
• There are four Levels (Scales)
of measurement:-
1. Nominal
2. Ordinal
3.Interval
4.Ratio

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6.2 Levels of Measurement…

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 6.2 Levels of Measurement…
1. Nominal- Categorical data and
numbers that are simply used
as identifiers or names
represent a nominal scale of
measurement.
– Eg. Our ID number are examples of nominal
data.
– If I conduct a study and I'm including gender as a variable, I will
code Female as 1 and Male as 2 or visa versa when I enter my
data into the SPSS.
– Thus, I am using the numbers 1 and 2 to represent
categories of data.
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6.2 Levels of Measurement…

2.Ordinal - An ordinal scale of

measurement represents an
ordered series of relationships or
rank order.
Individuals competing in a competition may be fortunate to
achieve first, second, or third place.

– E.g. Likert-type scales 1 to 5 with 1 Strongly

Disagree
- 5 Strongly Agree
– Therefore, Likert-type scales only represent a rank
ordering

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 6.2 Levels of Measurement…
3.Interval - A scale which represents
quantity and has equal units but for which
zero represents simply an additional
point of measurement is an interval
scale.
– The Fahrenheit scale is a clear example of the interval scale of
measurement
– Thus, 60 degree Fahrenheit or -10 degrees Fahrenheit are
interval data.
– Measurement of Sea Level is another example of
an interval scale. With each of these scales there is direct,
measurable quantity with equality of units.
– In addition, zero does not represent the absolute lowest value.
Rather, it is point on the scale with numbers both above and
below it (for example, -10 degrees Fahrenheit)
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 6.2 Levels of Measurement…
4.Ratio - The ratio scale of measurement
is similar to the interval scale in that it
also represents quantity and has equality
of units.
– this scale also has an absolute zero (no numbers exist below
the zero).
– Very often, physical measures will represent ratio
data (for example, height and weight).
– If one is measuring the length of a piece of wood in
centimeters, there is quantity, equal units, and that
measure can not go below zero
centimeters. A negative length is not possible.
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 6.2 Levels of Measurement…
• The table below will help clarify
the Fundamental Differences
between the four scales of
Levelmeasurement
of Indications Indicates Indicates Absolute Zero
Measurements Difference Direction of Amount of
Difference Difference

Nominal X

Ordinal X X

Interval X X X

Ratio X X X X

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6.3 Sources of errors in measurement

Definition of Measurement Error

• A measurement error is defined as "a
deviation" of the observed survey value
from the true value (Groves 1991, p. 2) or as "a
difference" (Hansen, Hurwitz, Marks and Mauldin
1951, p. 152) or "a discrepancy" (Sukhatme and
Sukhatme 1970, p. 381) between them.
– Lessler and Kalsbeek (1992, pp. 242-243) noted that the term
"difference" might not be the most suitable one because of its
allusion to mathematical difference which is not applicable to
variables measuring properties on nominal and ordinal scales

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6.3 Sources of errors in measurement…

• Measurement Errors are generally

ascribed to four principal design features
of the measurement process (e.g. Groves
1989, p. 11):
1) The Interviewer
2) The Respondent
3) The Instrument
 the survey questionnaire
4) The Mode Of Data Collection

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6.3 Sources of errors in measurement…

• Interviewers - may cause

measurement errors in the
administration of the questionnaire by
rewording questions, emphasizing
certain words, skipping questions,
recording wrong answers or using
different investigates but they may
also affect the respondent's
behavior with their own demographic and
socioeconomic characteristics (Groves 1989, p. 359).

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6.3 Sources of Errors in Measurement…

• Respondents - make measurement

errors during the response
process.
– They may not have the necessary information; they
may misinterpret the question, fail to recall the
relevant information, make erroneous inferences,
choose an inappropriate response option, edit the
response, etc. (Tourangeau, Rips and Rasinski, 2000, p. 8).

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6.3 Sources of errors in measurement…
• Survey Questionnaires - depend on the
words making up the questions, the
structure of the questions, and the order
or context of the questions (Groves 1989, p.
449).
– In addition, the questionnaire design along with
its nonverbal language may contribute to
the occurrence of measurement errors
(Jenkins and Dillman 1997).
– Therefore, it is possible to list specialists for questionnaire
content and design as sources of measurement errors as far
as they are involved in the questionnaire design and
evaluation processes (Esposito 2003).
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6.3 Sources of errors in measurement…

• The Mode Of Data Collection -

influences the interactions between
the interviewers, respondents, and
instruments.
– e.g. face-to-face and telephone methods of applying
the survey instrument differ considerably from self-
administration.
– Different modes may use different channels of
communication as well as survey procedures such as
refusal conversion rules, and interviewer selection
and training procedures (Groves 1989, p. 503).
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 6.4 Characteristics Of Good Measurement

1. RELIBILITY
• It is the consistency of your measurement, or the
degree to which an instrument measures the
same way each time it is used under the same
condition with the same subjects.
– In short, it is the repeatability of your measurement.
• A measure is considered reliable if a person's
score on the same test given twice is similar.
• A good instrument will produce consistent
scores.
• An instrument’s reliability is estimated using a
correlation
coefficient of one type or another
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6.4 Characteristics Of Good Measurement…

2. VALIDITY
• Validity is the extent to which a test
measures what it claims to measure.
• It is vital for a test to be valid in order for the results
to be accurately applied and interpreted.
• Validity isn‟t determined by a single statistic, but by a body
of research that demonstrates the relationship between the test
and the behavior it is intended to measure.
• There are three types of validity:
– It is the strength of our conclusions,
inferences or propositions.
– More formally, Cook and Campbell (1979) define it as the "best
available approximation to the truth or falsity of a
given inference, proposition or conclusion."

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6.4 Characteristics Of Good Measurement…

3. PRACTICIBILITY
• It should be feasible & usable.
• Quality of being usable in context to the
objective to be achieved.
4. USABILITY
• USABILITY(practicality) ease in administration,
scoring, interpretation and application, low cost,
proper mechanical make – up
5. MEASUREABILITY
• It should measure the objective to be achieved.

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6.5 Methods of Data Collection
The methods of collecting primary and secondary
data differ since primary data are to be originally
collected while collection of the secondary
involves compilation.
Methods of Data Collection

Primary Data Secondary Data

Observation Interviewing Questionnaire Documents

Semi-Structured
Non-Participant

Govt.
Un-structured
Participant

Structured

Electronic
publica
Mailed

Direct
tions
Earlier
Researc
By: Fekadu Y. hes
(PhD) Census
 Chapter 7
Business Research
Case Studies and the
Research Report
Writing

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