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Chapter 1

Introduction to Research

Research
Methods

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Research Methods for


Business
Chapter 1

Research
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Definition of Business Research


Business research: an organized and
systematic inquiry or investigation
into a specific problem, undertaken
with the purpose of finding answers
or solutions to it.

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Applied versus Basic Research


Basic research: generates a body
of
knowledge
by
trying
to
comprehend how certain problems
that occur in organizations can be
solved.
Applied research: solves a current
problem faced by the manager in the
work setting, demanding a timely
solution.
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Examples Applied Research

Apples iPod fueled the companys success in recent


years, helping to increase sales from $5 billion in 2001
to $32 billion in the fiscal year 2008. Growth for the
music player averaged more than 200% in 2006 and
2007, before falling to 6% in 2008. Some analysts
believe that the number of iPods sold will drop 12% in
2009. The reality is theres a limited group of people
who want an iPod or any other portable media player,
one analyst says. So the question becomes, what will
Apple do about it?

The existing machinery in the production department


has had so many breakdowns that production has
suffered. Machinery has to be replaced. Because of
heavy investment costs, a careful recommendation as
to whether it is more beneficial to buy the equipment
Research or to lease it is needed.
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Methods

More Examples of Research Areas in


Business

Absenteeism
Communication
Motivation
Consumer decision making
Customer satisfaction
Budget allocations
Accounting procedures

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Why managers should know about


research
Being knowledgeable about research and
research methods helps professional managers
to:
Identify and effectively solve minor problems in the work
setting.
Know how to discriminate good from bad research.
Appreciate the multiple influences and effects of factors
impinging on a situation.
Take calculated risks in decision making.
Prevent possible vested interests from exercising their
influence in a situation.
Relate to hired researchers and consultants more
effectively.
Combine experience with scientific knowledge while
Research making decisions.
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Methods

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The ManagerResearcher
Relationship

Each should know his/her role


Trust levels
Value system
Acceptance of findings and
implementation
Issues of inside versus outside
researchers/consultants
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Internal Researchers
Advantages:
Better acceptance from staff
Knowledge about organization
Would be an integral part of implementation
and evaluation of the research
recommendations.

Disadvantages
Less fresh ideas
Power politics could prevail
Possibly not valued as expert by staff
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External Researchers
Advantages
Divergent and convergent thinking
Experience from several situations in different
organizations
Better technical training, usually

Disadvantages
Takes time to know and understand the
organization
Rapport and cooperation from staff not easy
Not available for evaluation and implementation
Costs
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Chapter 2
Scientific Investigation

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Hallmarks of scientific
research:
Hallmarks or main distinguishing
characteristics of scientific research:
Purposiveness
Rigor
Testability
Replicability
Precision and Confidence
Objectivity
Generalizability
Parsimony
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Hypothetico-Deductive
Research
The Seven-Step Process in the
Hypothetico-Deductive Method
Identify a broad problem area
Define the problem statement
Develop hypotheses
Determine measures
Data collection
Data analysis
Interpretation of data
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Deduction and Induction


Deductive reasoning: application of a
general theory to a specific case.
Hypothesis testing

Inductive reasoning: a process where


we observe specific phenomena and on
this basis arrive at general conclusions.
Counting white swans

Both inductive and deductive processes


are often used in research.
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Chapter 3
Introduction to Research
The Research Process - The Broad
Problem Area and Defining the
Problem Statement
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The Broad Problem Area


Examples of broad problem areas that a
manager could observe at the workplace :

Training programs are not as effective as


anticipated.
The sales volume of a product is not picking up.
Minority group members are not advancing in
their careers.
The newly installed information system is not
being used by the managers for whom it was
primarily designed.
The introduction of flexible work hours has
created more problems than it has solved in
many companies.

Research
Methods

16

Preliminary Information
Gathering
Nature of information to be
gathered:
Background information of the
organization.
Prevailing knowledge on the topic.

Research
Methods

17

First Review of the


Literature
Helps the researcher to:
Structure research on work already done
Develop problem statement with
precision and clarity

Is beneficial in both basic and applied


research projects

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Critical Literature Review


A literature review is the selection of
available documents (both published and
unpublished) on the topic, which contain
information, ideas, data and evidence
written from a particular standpoint to fulfill
certain aims or express certain views on the
nature of the topic and how it is to be
investigated, and the effective evaluation of
these documents in relation to the research
being proposed (Hart, 1998, p. 13).
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Functions Literature Review

Research builds on existing knowledge


One does reinvent the wheel
Look at a problem from a specific angle
Find out what variables are important to consider
Introduce relevant terminology/provide
definitions
Provide arguments for the relationships variables
Testability and replicability are enhanced.
Research findings are related to findings of
others.
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Data sources

Textbooks
Academic and professional journals
Theses
Conference proceedings
Unpublished manuscripts
Reports of government departments and
corporations
Newspapers
The Internet
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Searching for literature


Most libraries have the following
electronic resources at their disposal:
Electronic journals
Full-text databases
Bibliographic databases
Abstract databases

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Evaluating the literature

Titles
Abstract
Table of contents/first chapter book
Number of citations

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Documenting the Literature


Review
Literature review introduces
Subject study
Highlights the problem
Summarizes work done so far

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A good problem statement


Research objective: why of the research
Research objective applied research:

to solve a specific problem in a work setting;


to change something.

Example:

To determine factors that increase employee commitment


to the organization;

Allows manager to increase commitment and hence to


decrease turnover, absenteeism and increase
performance levels.
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Example
The purpose of this study is twofold:
1. to identify the factors that influence
the passengers waiting experience
and
2. to investigate the possible impact of
waiting on customer satisfaction and
service evaluations.
Research
Methods

A good problem statement

Research questions:

what of the research (what do you want to learn?)


Translates problem into a specific need for information

Research questions:

Are related to the objective


If objective is unclear we will not be able to formulate research
questions

Example:

What are the factors that affect the perceived waiting experience of
airline passengers
To what extent do these factors affect the perception of waiting times?
What are the affective consequences of waiting
How does affect mediate the relationship between waiting and service
evaluations?
How do situational variables (such as filled time) influence customer
reactions to the waiting experience?

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Good problem statement


Relevant
for the organization

Feasible
you are able to answer the research
questions within the restrictions of the
research project.

Interesting
to you!
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The research proposal


The research proposal drawn up by
the investigator is the result of a
planned, organized, and careful
effort.

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Research Proposal contains


(1)
Working title.
Background of the study.
The problem statement.
- The purpose of the study.
- Research questions.
The scope of the study.
The relevance of the study.
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Research Proposal
contains (2)
The research design offering details on:
a. Type of study
b. Data collection methods
c. The sampling design.
d. Data analysis.
Time frame of the study
Budget
Selected bibliography.
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Chapter 4
Theoretical
Framework &
Hypothesis
Development
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32

Theoretical framework
Foundation deductive research project!
Deductive research: moving from the general (a
theory) to the specific (observations).

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Theoretical Framework
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).

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Theoretical framework

Basic steps:
Identify and label the variables
correctly
State the relationships among the
variables: formulate hypotheses
Explain how or why you expect
these relationships

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Variable

Any concept or construct that


varies or changes in value

Main types of variables:

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Methods

Dependent variable
Independent variable
Moderating variable
Mediating variable
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(In)dependent variables
Dependent variable (DV)
Is of primary interest to the researcher.
The goal of the research project is to
understand, predict or explain the
variability of this variable.

Independent variable (IV)


Influences the DV in either positive or
negative way. The variance in the DV is
accounted for by the IV.

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Example

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Moderators
Moderating variable
Moderator is qualitative (e.g., gender,
race, class) or quantitative (e.g., level of
reward) variable that affects the direction
and/or strength of relation between
independent and dependent variable.

Research
Methods

Mediating variable

Mediating variable
surfaces between the time the
independent variables start operating
to influence the dependent variable and
the time their impact is felt on it.

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Hypothesis

A proposition that is empirically testable. It


is an empirical statement concerned with
the relationship among variables.

Good hypothesis:

Must be adequate for its purpose


Must be testable
Must be better than its rivals

Can be:

Directional
Non-directional
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Exercise
Give the hypotheses for the following framework:

Customer
switching

Service
quality
Switching
cost

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Exercise
Give the hypotheses for the following framework:

Service
quality

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Methods

Customer
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Customer
switching

Argumentation

The expected relationships /


hypotheses are an integration of:
Exploratory research
Common sense and logical reasoning

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Chapter 5
Elements of Research
Design
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45

Research Design

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Purpose of the Study


Exploratory
Descriptive
Causal

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Purpose of the Study


Exploratory study:
is undertaken when not much is known
about the situation at hand, or no
information is available on how similar
problems or research issues have been
solved in the past.

Example:
A service provider wants to know why
his customers are switching to other
service providers?

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Purpose of the Study


Descriptive study:
is undertaken in order to ascertain and be able to
describe the characteristics of the variables of interest in
a situation.

Example:
A bank manager wants to have a profile of the
individuals who have loan payments outstanding for 6
months and more. It would include details of their
average age, earnings, nature of occupation, fulltime/part-time employment status, and the like. This
might help him to elicit further information or decide
right away on the types of individuals who should be
made ineligible for loans in the future.
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Purpose of the Study


Causal study:
Delineating one or more factors that are
causing the problem.

Example:
A marketing manager wants to know if
the sales of the company will increase if
he increases the advertising budget.

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Extent of Researcher
Interference
Minimal interference
Moderate interference
Excessive interference

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Study Setting
Contrived: artificial setting
Non-contrived: the natural
environment where work proceeds
normally

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Research Strategies

Experiments
Survey Research
Observation
Case studies
Grounded theory
Action research
Mixed Methods

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Population to be studied
Unit of analysis:
Individuals
Dyads
Groups
Organizations
Cultures

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Time Horizon
Cross-sectional studies
Snapshot of constructs at a single point in time
Use of representative sample

Multiple cross-sectional studies


Constructs measured at multiple points in time
Use of different sample

Longitudinal studies
Constructs measured at multiple points in time
Use of same sample = a true panel

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Chapter 6
Measurement of
Variables: Operational
Definition
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Measurement
Measurement: the assignment of
numbers or other symbols to
characteristics (or attributes) of
objects according to a pre-specified
set of rules.

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(Characteristics of) Objects


Objects include persons, strategic
business units, companies, countries,
kitchen appliances, restaurants, shampoo,
yogurt and so on.
Examples of characteristics of objects are
arousal seeking tendency, achievement
motivation, organizational effectiveness,
shopping enjoyment, length, weight,
ethnic diversity, service quality,
conditioning effects and taste.
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Types of Variables
Two types of variables:
One lends itself to objective and precise
measurement;
The other is more nebulous and does
not lend itself to accurate measurement
because of its abstract and subjective
nature.

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Operationalizing Concepts
Operationalizing concepts: reduction
of abstract concepts to render them
measurable in a tangible way.
Operationalizing is done by looking
at the behavioral dimensions, facets,
or properties denoted by the
concept.

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Example

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Chapter 7
Measurement of
Variables: Scaling,
Reliability, Validity
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62

Scale
Scale: tool or mechanism by which
individuals are distinguished as to
how they differ from one another on
the variables of interest to our study.

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Nominal Scale

A nominal scale is one that allows the researcher to assign


subjects to certain categories or groups.

What is your department?


O Marketing
O Maintenance
O Production
O Servicing
O Sales
O Public Relations

O Finance
O Personnel
O Accounting

What is your gender?


O Male
O Female

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Nominal Scale

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Ordinal Scale
Ordinal scale: not only categorizes variables in
such a way as to denote differences among
various categories, it also rank-orders categories
in some meaningful way.
What is the highest level of education you have
completed?
O Less than High School
O High School/GED Equivalent
O College Degree
O Masters Degree
O Doctoral Degree
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Ordinal Scale

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Interval Scale
Interval scale: whereas the nominal
scale allows us only to qualitatively
distinguish groups by categorizing
them into mutually exclusive and
collectively exhaustive sets, and the
ordinal scale to rank-order the
preferences, the interval scale lets us
measure the distance between any
two points on the scale.
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Interval scale

Circle the number that represents your feelings at this particular


moment best. There are no right or wrong answers. Please answer
every question.

1. I invest more in my work than I get out of it


I disagree completely

I agree completely

2. I exert myself too much considering what I get back in return


I disagree completely

I agree completely

3. For the efforts I put into the organization, I get much in return
I disagree completely
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I agree completely

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Interval scale

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Ratio Scale
Ratio scale: overcomes the
disadvantage of the arbitrary origin
point of the interval scale, in that it
has an absolute (in contrast to an
arbitrary) zero point, which is a
meaningful measurement point.
What is your age?
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Ratio Scale

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Properties of the Four Scales


Insert Table 12.1 here

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Goodness of Measures

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Validity

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Reliability
Reliability of measure indicates
extent to which it is without bias and
hence ensures consistent
measurement across time (stability)
and across the various items in the
instrument (internal consistency).

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Stability
Stability: ability of a measure to
remain the same over time, despite
uncontrollable testing conditions or
the state of the respondents
themselves.
TestRetest Reliability: The reliability
coefficient obtained with a repetition of
the same measure on a second
occasion.
Parallel-Form Reliability: Responses on
two comparable sets of measures
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tapping
the
same construct are highly
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Methods

Internal Consistency
Internal Consistency of Measures is
indicative of the homogeneity of the items
in the measure that tap the construct.
Interitem Consistency Reliability: This is a test
of the consistency of respondents answers to
all the items in a measure. The most popular
test of interitem consistency reliability is the
Cronbachs coefficient alpha.
Split-Half Reliability: Split-half reliability
reflects the correlations between two halves of
an instrument.
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Chapter 8
Data Collection
Methods: Introduction
and Interviews
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79

Sources of Data
Primary data: information obtained firsthand by
the researcher on the variables of interest for the
specific purpose of the study.
Examples: individuals, focus groups, panels
Secondary data: information gathered from
sources already existing.
Examples: company records or archives,
government publications, industry analyses
offered by the media, web sites, the Internet, and
so on.
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Interviews
Unstructured interviews:
the interviewer does not enter the interview
setting with a planned sequence of questions to
be asked of the respondent.

Structured interviews:
Conducted when it is known at the outset what
information is needed.
The interviewer has a list of predetermined
questions to be asked of the respondents either
personally, through the telephone, or via the
computer.
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Personal interview
Advantages

Can clarify doubts about questionnaire


Can pick up non-verbal cues
Relatively high response/cooperation
Special visual aids and scoring devises can be used

Disadvantages

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Methods

High costs and time intensive


Geographical limitations
Response bias / Confidentiality difficult to be assured
Some respondents are unwilling to talk to strangers
Trained interviewers

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Telephone interview
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

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Self-administered
Advantages

Lowest cost option


Expanded geographical coverage
Requires minimal staff
Perceived as more anonymous

Disadvantages

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Methods

Low response rate in some modes


No interviewer intervention possible for clarification
Cannot be too long or complex
Incomplete surveys

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Projective Methods
Word association techniques:
Asking the respondent to quickly associate a word
with the first thing that comes to mind.
Often used to get at true attitudes and feelings.

Thematic apperception tests (TAT):


Call for respondent to weave a story around a
picture that is shown.
To trace patterns and personality characteristics of
respondents.

Inkblot tests:
Form of motivational research, uses colored inkblots
that are interpreted by respondents.
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Data Collection
Methods: Observation
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86

Observation
Observation involves going into the
field, - the factory, the supermarket,
the waiting room, the office, or the
trading room - watching what
workers, consumers, or day traders
do, and describing, analyzing, and
interpreting what one has seen.

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Examples
Shadowing a Wall Street broker engaged
in his daily routine.
Observing in-store shopping behavior of
consumers via a camera.
Sitting in the corner of an office to observe
how a merchant bank trader operates.
Working in a plant to study factory life.
Studying the approach skills of sales
people disguised as a shopper.
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Key dimensions characterizing type


of observation
Controlled versus Uncontrolled
Observational Studies
Participant versus Non-Participant
Observation
Structured versus Unstructured
Observational Studies
Concealed versus Unconcealed
observation

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Participant Observation
The participatory aspect:
Complete participation
Moderate participation
Active participation

To what extent should I participate?

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Participant Observation
The observation aspect
Obtaining permission
Finding a sponsor
Establishing rapport

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What to observe?
Descriptive observation stage:
Space
Objects
Actors
Feelings
Events
Spradly, 1980

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What to observe?
Focused and selective observation stage:
Look for a story line
Sort out regular from irregular activities
Look for variation in the storyline
Look for negative cases or exceptions
Develop a plan for systematic observation if
needed
DeWalt and DeWalt, 2002
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Structured observation
Looks selectively at predetermined
phenomena
Different levels of structure

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Coding schemes
Focus
Objective
Ease of use
Mutually exclusive and collectively
exhaustive
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Standard Coding Schemes


Simple checklist
Sequence record
Sequence record on time scale

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Data Collection
Methods:
Questionnaires
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97

Questionnaire Design

Definition
A questionnaire is a pre-formulated, written set of
questions to which the respondent records his
answers

Research
Methods

Steps
1. Determine the content of the
questionnaire
2. Determine the form of response
3. Determine the wording of the questions
4. Determine the question sequence
5. Write cover letter
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1. Questionnaire content
Framework
Need information for all constructs in
framework

Measurement: Operationalizing
Objective construct:
1 element/items
=> 1 question

Subjective construct:
multiple elements/items
=> multiple questions
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2. Response format
Closed vs. Open-ended questions
Closed questions
Helps respondents to make quick
decisions
Helps researchers to code

Open-ended question
First: unbiased point of view
Final: additional insights
Complementary to closed question: for
interpretation purpose

Cfr.
Measurement:
Response
scales
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3. Question wording
Avoid double-barreled questions
Avoid ambiguous questions and words
Use of ordinary words
Avoid leading or biasing questions
Social desirability
Avoid recall depended questions
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Question wording
Use positive and negative statements
Dresdner delivers high quality banking service
Dresdner has poor customer operational support
Avoid double negatives

Limit the length of the questions


Rules of thumb:
< 20 words
< one full line in print

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4. Question sequence

Personal and sensitive data at the end


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5. Cover letter
The cover letter is the introductory
page of the questionnaire
It includes:
Identification of the researcher
Motivation for respondents to fill it in
Confidentiality
Thanking of the respondent
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Chapter 9
Sampling
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105

Sampling
Sampling: the process of selecting a sufficient
number of elements from the population, so
that results from analyzing the sample are
generalizable to the population.

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Relevant Terms - 1
Population refers to the entire group of
people, events, or things of interest that
the researcher wishes to investigate.
An element is a single member of the
population.
A sample is a subset of the population. It
comprises some members selected from it.
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Relevant Terms - 2
Sampling unit: the element or set of
elements that is available for
selection in some stage of the
sampling process.
A subject is a single member of the
sample, just as an element is a single
member of the population.
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Relevant Terms - 3
The characteristics of the population such
as (the population mean), (the
population standard deviation), and 2
(the population variance) are referred to
as its parameters. The central tendencies,
the dispersions, and other statistics in the
sample of interest to the research are
treated as approximations of the central
tendencies, dispersions, and other
parameters of the population.
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Statistics versus Parameters

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Advantages of Sampling

Less costs
Less errors due to less fatigue
Less time
Destruction of elements avoided

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The Sampling Process


Major steps in sampling:
Define the population.
Determine the sample frame
Determine the sampling design
Determine the appropriate sample
size
Execute the sampling process

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Sampling Techniques
Probability versus nonprobability
sampling
Probability sampling: elements in
the population have a known and
non-zero chance of being chosen

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Sampling Techniques
Probability Sampling
Simple Random Sampling
Systematic Sampling
Stratified Random Sampling
Cluster Sampling

Nonprobability Sampling
Convenience Sampling
Judgment Sampling
Quota Sampling
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Simple Random Sampling

Procedure

Each element has a known and equal chance of being


selected

Characteristics

Research
Methods

Highly generalizable
Easily understood
Reliable population frame necessary

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Systematic sampling

Procedure

Each nth element, starting with random choice of an


element between 1 and n

Characteristics

Research
Methods

Idem simple random sampling


Easier than simple random sampling
Systematic biases when elements are not randomly
listed

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Cluster sampling

Procedure

Divide of population in clusters


Random selection of clusters
Include all elements from selected clusters

Characteristics

Research
Methods

Intercluster homogeneity
Intracluster heterogeneity
Easy and cost efficient
Low correspondence with reality

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Stratified sampling

Procedure

Divide of population in strata


Include all strata
Random selection of elements from strata

Proportionate
Disproportionate

Characteristics

Research
Methods

Interstrata heterogeneity
Intrastratum homogeneity
Includes all relevant subpopulations

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(Dis)proportionate stratified sampling


Number of subjects in total sample is allocated
among the strata (dis)proportional to the relative
number of elements in each stratum in the
population
Disproportionate case:
strata exhibiting more variability are sampled more than
proportional to their relative size
requires more knowledge of the population, not just
relative sizes of strata

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Example

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Overview

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Choice Points in Sampling Design

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Tradeoff between precision and confidence


We can increase both confidence and precision by
increasing the sample size

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Sample size: guidelines


In general:

30 < n < 500

Categories:

30 per subcategory

Multivariate:

10 x number of vars

Experiments:
condition

15 to 20 per

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Sample Size for a Given Population Size

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Chapter 10
Quantitative Data
Analysis
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126

Getting the Data Ready for


Analysis
Data coding: assigning a number to
the participants responses so they
can be entered into a database.
Data Entry: after responses have
been coded, they can be entered into
a database. Raw data can be entered
through any software program (e.g.,
SPSS)
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Editing Data
An example of an illogical response is an outlier
response. An outlier is an observation that is
substantially different from the other
observations.
Inconsistent responses are responses that are not
in harmony with other information.
Illegal codes are values that are not specified in
the coding instructions.
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Transforming Data

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Getting a Feel for the Data

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Frequencies

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Descriptive Statistics: Central


Tendencies and Dispersions

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Reliability Analysis

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Chapter 11
Quantitative Data
Analysis: Hypothesis
Testing
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134

Type I Errors, Type II Errors and


Statistical Power
Type I error (): the probability of
rejecting the null hypothesis when it
is actually true.
Type II error (): the probability of
failing to reject the null hypothesis
given that the alternative hypothesis
is actually true.
Statistical power (1 - ): the
probability of correctly rejecting the

Research
Methods

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Choosing the Appropriate Statistical


Technique

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Testing Hypotheses on a Single


Mean
One sample t-test: statistical
technique that is used to test the
hypothesis that the mean of the
population from which a sample is
drawn is equal to a comparison
standard.

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Methods

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Testing Hypotheses about Two


Related Means
Paired samples t-test: examines
differences in same group before and after
a treatment.
The Wilcoxon signed-rank test: a nonparametric test for examining significant
differences between two related samples
or repeated measurements on a single
sample. Used as an alternative for a paired
samples t-test when the population cannot
be assumed to be normally distributed.
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Testing Hypotheses about Two


Related Means - 2
McNemar's test: non-parametric
method used on nominal data. It
assesses the significance of the
difference between two dependent
samples when the variable of interest
is dichotomous. It is used primarily in
before-after studies to test for an
experimental effect.
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Testing Hypotheses about Two


Unrelated Means
Independent samples t-test: is done
to see if there are any significant
differences in the means for two
groups in the variable of interest.

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Testing Hypotheses about Several


Means
ANalysis Of VAriance (ANOVA) helps
to examine the significant mean
differences among more than two
groups on an interval or ratio-scaled
dependent variable.

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Regression Analysis
Simple regression analysis is used in
a situation where one metric
independent variable is hypothesized
to affect one metric dependent
variable.

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Methods

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18
00
6
0
4
0
20304050P
6_
0A
708090
H
Y
S
TR

LKH
D
_A
TE

Scatter plot

Research
Methods

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Simple Linear Regression


Yi 0 1 X i i

Y
0

`0

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Methods

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Ordinary Least Squares Estimation


n

Minimize

2
i

i 1

Yi
Yi

ei

Xi

Research
Methods

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SPSS
Analyze Regression Linear

Model Summary
Model
1

R
.841

R Square
.707

Adjusted
R Square
.704

Std. Error of
the Estimate
5.919

ANOVA
Model
1

Research
Methods

Regression
Residual
Total

Sum of
Squares
8195.319
3398.640
11593.960

df
1
97
98

M ean Square
8195.319
35.038

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F
233.901

Sig.
.000

SPSS

contd

Coefficients

Model
1

Research
Methods

(Constant)
PHYS_ATTR

Unstandardized
Coefficients
B
Std. Error
34.738
2.065
.520
.034

Standardized
Coefficients
Beta
.841

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t
16.822
15.294

Sig.
.000
.000

Model validation
1. Face validity: signs and magnitudes make sense
2. Statistical validity:

Model fit: R2
Model significance: F-test
Parameter significance: t-test
Strength of effects: beta-coefficients
Discussion of multicollinearity: correlation matrix

3. Predictive validity: how well the model predicts

Research
Methods

Out-of-sample forecast errors

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SPSS

Model Summary
Model
1

Research
Methods

R
.841

R Square
.707

Adjusted
R Square
.704

Std. Error of
the Estimate
5.919

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Measure of Overall Fit: R2


R2 measures the proportion of the variation in y that is
explained by the variation in x.
R2 = total variation unexplained variation
total variation
R2 takes on any value between zero and one:
R2 = 1: Perfect match between the line and the data points.
R2 = 0: There is no linear relationship between x and y.

Research
Methods

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SPSS

Model Summary
Model
1

R
.841

R Square
.707

Adjusted
R Square
.704

Std. Error of
the Estimate
5.919

= r(Likelihood to Date, Physical Attractiveness)

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Model Significance

H0: 0 = 1 = ... = m = 0

(all parameters are zero)

H1: Not H0

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Model Significance

H0: 0 = 1 = ... = m = 0

(all parameters are zero)

H1: Not H0

Test statistic
F =

(k = # of variables excl. intercept)

(SSReg/k)

~ Fk, n-1-k

(SSe/(n 1 k)
SSReg = explained variation by regression
SSe = unexplained variation by regression

Research
Methods

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SPSS

ANOVA
Model
1

Research
Methods

Regression
Residual
Total

Sum of
Squares
8195.319
3398.640
11593.960

df
1
97
98

M ean Square
8195.319
35.038

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F
233.901

Sig.
.000

Parameter significance

Testing that a specific parameter is significant


0)

H 0: j = 0
H 1: j 0

Test-statistic: t = bj/SEj ~ tn-k-1


with bj = the estimated coefficient for j
SEj = the standard error of bj

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(i.e., j

SPSS

contd

Coefficients

Model
1

Research
Methods

(Constant)
PHYS_ATTR

Unstandardized
Coefficients
B
Std. Error
34.738
2.065
.520
.034

Standardized
Coefficients
Beta
.841

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t
16.822
15.294

Sig.
.000
.000

Conceptual Model

Physical
Attractivenes
s

Research
Methods

Likelihood
to Date

Multiple Regression
Analysis
We use more than one (metric or
non-metric) independent variable to
explain variance in a (metric)
dependent variable.

Research
Methods

Conceptual Model

Perceived
Intelligence

Physical
Attractivenes
s

Research
Methods

+
+

Likelihood
to Date

Model Summary
Model
1

R
.844

R Square
.712

Adjusted
R Square
.706

Std. Error of
the Estimate
5.895

ANOVA
Model
1

Regression
Residual
Total

Sum of
Squares
8257.731
3336.228
11593.960

df
2
96
98

Mean Square
4128.866
34.752

F
118.808

Sig.
.000

Coefficients

Model
1

Research
Methods

(Constant)
PERC_INTGCE
PHYS_ATTR

Unstandardized
Coefficients
B
Std. Error
31.575
3.130
.050
.037
.523
.034

Standardized
Coefficients
Beta
.074
.846

t
10.088
1.340
15.413

Sig.
.000
.183
.000

Conceptual Model

Perceived
Intelligence

Physical
Attractivenes
s

Research
Methods

+
+

Gende
r

Likelihood
to Date

Moderators
Moderator is qualitative (e.g., gender, race, class) or
quantitative (e.g., level of reward) that affects the
direction and/or strength of the relation between
dependent and independent variable
Analytical representation
Y = 0 + 1X1 + 2X2 + 3X1X2
with
Y = DV
X1 = IV
X2 = Moderator

Research
Methods

Model Summary
Model
1

R
.910

R Square
.828

Adjusted
R Square
.821

Std. Error of
the Estimate
4.601

ANOVA
Model
1

Research
Methods

Regression
Residual
Total

Sum of
Squares
9603.938
1990.022
11593.960

df
4
94
98

Mean Square
2400.984
21.170

F
113.412

Sig.
.000

Coefficients

Model
1

(Constant)
PERC_INTGCE
PHYS_ATTR
GENDER
PI_GENDER

Unstandardized
Coefficients
B
Std. Error
32.603
3.163
.000
.043
.496
.027
-.420
3.624
.127
.058

Standardized
Coefficients
Beta
.000
.802
-.019
.369

t
10.306
.004
18.540
-.116
2.177

Sig.
.000
.997
.000
.908
.032

interaction significant effect on dep. var.

Research
Methods

Conceptual Model

Perceived
Intelligence

Gende
r

Physical
Attractivenes
s

Likelihood
to Date

+
Communality
of Interests
Research
Methods

Perceived Fit

Mediating/intervening variable

Accounts for the relation between the independent


and dependent variable

Analytical representation
1.

Y = 0 + 1X
=> 1 is significant

2.

M = 2 + 3X
=> 3 is significant

3.

Y = 4 + 5X + 6M
=> 5 is not significant
=> 6 is significant

Research
Methods

With
Y = DV
X = IV
M = mediator

Step 1
Mode l S umm ary
Model
1

R
.963

R Square
.927

Adjus ted
R Square
.923

St d. E rror of
the E stimate
3. 020

ANOVA
Model
1

Research
Methods

Regression
Residual
Total

Sum of
Squares
10745.603
848.357
11593.960

df
5
93
98

Mean Square
2149.121
9.122

F
235.595

Sig.
.000

Step 1

contd

Coefficients

Model
1

(Cons tant)
PERC_INTGCE
PHYS_ATTR
GENDER
PI_GENDER
COMM_INTER

Unstandardized
Coefficients
B
Std. Error
17.094
2.497
.030
.029
.517
.018
-.783
2.379
.122
.038
.212
.019

Standardized
Coefficients
Beta
.044
.836
-.036
.356
.319

t
6.846
1.039
29.269
-.329
3.201
11.187

Sig.
.000
.301
.000
.743
.002
.000

significant effect on dep. var.


Research
Methods

Step 2
Mode l S umm ary
Model
1

R
.977

Adjus ted
R Square
.955

R Square
.955

St d. E rror of
the E stimate
2. 927

ANOVA
Model
1

Research
Methods

Regression
Residual
Total

Sum of
Squares
17720.881
831.079
18551.960

df
1
97
98

Mean Square
17720.881
8.568

F
2068.307

Sig.
.000

Step 2

contd

Coefficients

Model
1

(Cons tant)
COMM_INTER

Unstandardized
Coefficients
B
Std. Error
8.474
1.132
.820
.018

Standardized
Coefficients
Beta
.977

t
7.484
45.479

Sig.
.000
.000

significant effect on mediator

Research
Methods

Step 3
Mode l S umm ary
Model
1

R
.966

R Square
.934

Adjus ted
R Square
.930

St d. E rror of
the E stimate
2. 885

ANOVA
Model
1

Research
Methods

Regression
Residual
Total

Sum of
Squares
10828.336
765.624
11593.960

df
6
92
98

Mean Square
1804.723
8.322

F
216.862

Sig.
.000

Step 3

contd

Coefficients

Model
1

(Cons tant)
PERC_INTGCE
PHYS_ATTR
GENDER
PI_GENDER
COMM_INTER
PERC_FIT

Unstandardized
Coefficients
B
Std. Error
14.969
2.478
.019
.028
.518
.017
-2.040
2.307
.142
.037
-.051
.085
.320
.102

Standardized
Coefficients
Beta
.028
.839
-.094
.412
-.077
.405

t
6.041
.688
30.733
-.884
3.825
-.596
3.153

Sig.
.000
.493
.000
.379
.000
.553
.002

insignificant effect of indep. var on dep. Var.


significant effect of mediator on dep. var.
Research
Methods

Chapter 12
Qualitative Data
Analysis
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173

Qualitative Data
Qualitative data: data in the form of
words.
Examples: interview notes,
transcripts of focus groups, answers
to open-ended questions,
transcription of video recordings,
accounts of experiences with a
product on the internet, news
Research
articles,
and
the
like.
Methods
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Analysis of Qualitative Data


The analysis of qualitative data is
aimed at making valid inferences
from the often overwhelming amount
of collected data.
Steps:
data reduction
data display
drawing and verifying conclusions
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Data Reduction
Coding: the analytic process through
which the qualitative data that you
have gathered are reduced,
rearranged, and integrated to form
theory.
Categorization: is the process of
organizing, arranging, and classifying
coding units.
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Data Display
Data display: taking your reduced
data and displaying them in an
organized, condensed manner.
Examples: charts, matrices,
diagrams, graphs, frequently
mentioned phrases, and/or drawings.

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Drawing Conclusions
At this point where you answer your
research questions by determining
what identified themes stand for, by
thinking about explanations for
observed patterns and relationships,
or by making contrasts and
comparisons.

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Reliability in Qualitative
Research
Category reliability depends on the
analysts ability to formulate categories
and present to competent judges
definitions of the categories so they will
agree on which items of a certain
population belong in a category and which
do not. (Kassarjian, 1977, p. 14).
Interjudge reliability can be defined degree
of consistency between coders processing
the same data (Kassarjian 1977).
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Validity in Qualitative Research


Validity refers to the extent to which
the qualitative research results:
accurately represent the collected data
(internal validity)
can be generalized or transferred to
other contexts or settings (external
validity).

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Chapter 13
The Research Report
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181

The Written Report


The key purpose of any research report is to
offer a clear description of what has been done
in the various stages of the research process.
Important to identify the specific purpose of the
report, so that it can be tailored accordingly.
Examples
Simple descriptive report
Comprehensive report, offering alternative solutions
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Presentation of Results
Results of the study and recommendations
to solve the problem have to be effectively
communicated to the sponsor, so that
suggestions made are accepted and
implemented.
Contents and organization of written report
and oral presentation depend on the
purpose of the research study, and the
audience to which it is targeted.
Research
Methods

2012 John Wiley & Sons Ltd.


www.wiley.com/college/sekaran

Characteristics of a Well-Written
Report

Clarity
Conciseness
Coherence
The right emphasis on important aspects
Meaningful organization of paragraphs
Smooth transition from one topic to the
next
Apt choice of words
Specificity
Research
Methods

2012 John Wiley & Sons Ltd.


www.wiley.com/college/sekaran

Contents of Research Report

Title
Executive summary or abstract
Table of contents
List of Tables, Figures, and Other Materials
Preface
Authorization Letter
The introductory section
The body of the report
The final part of the report
References
Appendix

Research
Methods

2012 John Wiley & Sons Ltd.


www.wiley.com/college/sekaran

Oral Presentation
Deciding on the Content
Visual Aids
For instance graphs, charts, tables

The presenter
The presentation
Handling questions

Research
Methods

2012 John Wiley & Sons Ltd.


www.wiley.com/college/sekaran