Research Methods

for Business

CHAPTER 6
ELEMENTS OF RESEARCH DESIGN
Instructional Goals
1. To clarify the various components of research design as indicated in
Figure 5.1 of the book;
2. To highlight obvious combinations in research design choices; for
example, a lab or field experiment is invariably conducted to establish
cause and effect relationships; a lab experiment is always done in a
contrived setting with maximal researcher interference and in a
longitudinal fashion.;
3. To stress the importance of making optimal research design choices
aimed at balancing scientific rigor and research costs (and feasibility).

Discussion Questions
1. What are the basic research design issues? Describe them in some
detail.
Basic research design issues are primarily a function of the purpose
of the study (whether it is exploratory, descriptive, or hypothesis-
testing), and relate to such aspects as the type of study to be done (causal
or correlational), the setting in which it will be done (natural or
contrived), how much of researcher control will have to be exercised
(very little in the case of field studies, to very much in the case of
experimental designs), how many times data will have to be collected
(one shot versus longitudinal), and the unit of analysis – i.e. the level at
which data will be aggregated. For most correlational studies, the field
setting with minimal researcher influence will be the choice. Most field
studies are generally cross-sectional, though some could be longitudinal.

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Research Methods
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Longitudinal studies, though better for understanding the dynamics of
the situation fully, also consume more time and resources. Thus, the
costs of a study also determine some of the design choices. The unit of
analysis depends on whether the research question focuses on
individuals, dyads, groups, or entire systems.
2. Why is it important to consider basic research design issues before
conducting the study and even as early as at the time of formulating
the research question?
The research design ensures that the purpose for which a study is
conducted, is effectively addressed. Some studies are focused on finding
results which will be highly reliable, whereas some others, might be
interested in “getting some idea” of what is going on, rather than
wanting to know the “absolute truth”. If the rigor needed can be
achieved at only high cost (e.g. more manipulation and control,
conducting the study over an extended period of time with a big sample,
etc), and if this cost is considered too much, then the goals of research
might have to be revised or even completely changed. Thus, thinking
through the research design issues at the early stages helps in averting
several problematic issues later.
3. Is a field study totally out of the question if one is trying to establish
cause and effect relationships?
Generally, lab and field experiments rather than field studies, are
useful for establishing greater internal validity, or faith in cause and
effect relationships. However, when longitudinal data are collected from
field studies, or when particular types of statistical analyses are done on
cross sectional data gathered from field studies, it is sometimes possible
to establish the existence of causal relationships. More specifically,
cross-lagged correlation analysis (not discussed in the book) using data
collected at more than one point in time, can indicate causal
relationships.
Even using cross-sectional data (i.e. with data collected at one time
only), statistical techniques such as path analysis, can identify cause and
effect relationships. However, in such cases, the data and the theory will
have to lend themselves to certain assumptions which are not always
easily met.
4. “An exploratory study is just as useful as a predictive study”.

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Research Methods
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Discuss this statement.
Without exploratory studies, new areas of knowledge cannot be
developed. Every theory we now have must at one time have started as
an exploratory research study. Exploratory research lays the
groundwork for understanding new phenomena, and developing new
measures to test these. The exploratory studies of today blossom into the
predictive studies of tomorrow, and in that sense both types of studies
are useful and essential to generate knowledge, understanding, and
prediction of business phenomena.
5. Why is the unit of analysis an integral part of the research design?
The unit of analysis is an important issue to be considered to find the
right answers to the research questions posed. The unit of analysis also
determines the sample size. For example, if one is interested in
researching the factors that influence the stock market in three different
European countries, it is the behavior of stock markets in those three
countries that are of central interest to the study, and not the individual
stock market within each country. At the time of data analysis, the data
gathered from each of the stock markets within each country will
somehow have to be meaningfully aggregated, and only those three data
points, which will form the three samples, have to be taken into
consideration. Thus, the unit of analysis is a function of the research
question posed, and is an integral part of the research design. As will be
seen later, research design decisions relating to sampling also depend on
the unit of analysis. Let us say a researcher decides to have a sample
size of 30 for a study. Sampling 30 individuals in an organization when
the unit of analysis is individuals, is not as problematic as sampling 30
organizations when the unit of analysis is organizations, or sampling 30
countries when the unit of analysis is countries. Thus, the unit of
analysis influences other decisions such as the sampling design, the
sample size, data collection methods, etc.
6. Discuss the inter-relationships among: non-contrived setting, the
purpose of the study, type of investigation, researcher interference,
and time horizon of the study.
A non-contrived setting simply indicates that the research is
conducted where the flow of events normally takes place – i.e. in the
natural system. Such research could be either field studies or field
experiments. The purpose of the field study could be for exploration and

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Research Methods
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understanding of phenomena, for describing phenomena, or for
hypothesis-testing. The field study is a correlational study, and not
usually initiated to explore cause and effect relationships. Researcher
interference in field studies is minimal. Field studies could be either
cross sectional or longitudinal. Field experiments, on the other hand, are
undertaken to establish cause and effect relationships, are longitudinal
in nature, and researcher interference in field experiments is much more
than in field studies, since the independent variable will have to be
manipulated. These are mostly hypothesis-testing studies, though they
could be exploratory in nature, as well.
7. Below are three scenarios. For each, indicate how the researcher
should proceed with the following, giving reasons:
a. The purpose of the study
b. The type of investigation
c. The extent of researcher interference
d. The study setting
e. The time horizon for the study
f. The unit of analysis.
Scenario A
Ms. Joyce Lynn, the owner of a small business (a woman’s dress boutique),
has invited a consultant to tell her how she is different from similar small business
within a 60-mile radius, in regard to her usage of the most modern computer
technology, sales volume, profit margin, and staff training.

Answer
This will be a descriptive study (describing how she compares with the
others). Data will be collected from small businesses on the use of computers,
sales volume, profit margin, and training programs and comparisons made. Some
of these descriptions might be qualitative, as for example, in describing training
methods. This will be a field study (using many similar small businesses), and
researcher interference will be minimal. It will be a one-shot study, and the unit of
analysis will be small business systems.

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Research Methods
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Scenario B
Mr. Paul Hodge, the owner of several restaurants is concerned about the
wide differences in the profit margins of the various restaurants. He would like to
try some incentive plans for increasing the efficiency levels of those restaurants
that are lagging behind. But, before he introduces this, he would like to be sure
that the idea will work. He asks a researcher to help him on this issue.

Answer
This would be a causal, hypothesis-testing study. It will be a field
experiment, using one or two restaurants to manipulate incentive plans and see if
this causes an increase in profit margins in those restaurants. Because of the
manipulation, there will be some researcher interference with the natural flow of
events. The time horizon for the study would be longitudinal since data will be
obtained on sales, profits, etc., both before and after the manipulation. The unit of
analysis would be the restaurant.
Scenario C
A manager is intrigued why some people seem to derive joy from work and
get energized by it, while others find it troublesome and frustrating.
This would be a correlational, hypotheses-testing, field study with minimal
researcher interference. It will be a one-shot study and the unit of analysis will be
individuals.

Exercises
Doing the exercises in the chapter will help the students to apply the basic
elements of research design to different scenarios. More in-class exercises are
offered at the end of this chapter (with answers), that can be used either in the
classroom or as exam questions.

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Research Methods
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Answers to Exercises in the Book

Exercise 6.1
A foreman thinks that the low efficiency of the machine tool operators is
directly linked to the high level of fumes emitted in the workshop. He would like
to prove this to his supervisor through a research study.
1. Would this be a causal or a correlational study? Why?
2. Is this an exploratory, descriptive, or hypothesis-testing (analytical or
predictive) study? Why?
3. What kind of a study would this be : field study, lab experiment, or field
experiment? Why?
4. What would be the unit of analysis? Why?
5. Would this be a cross-sectional or a longitudinal study? Why?
1. This would be a causal study because the operator wants to prove to the
supervisor that the fumes are causing operators to be low in their
efficiency. In other words, the machine tool operator is trying to
establish the fact that fumes cause low efficiency in workers.
2. This is an analytical study because the machine tool operator wants to
establish that fumes cause low efficiency and convince her workshop
supervisor through such analysis (i.e. establish cause and effect
relationship).
3. This would be a field experiment. Though the study would be set up in
the natural environment of the workers where the work is normally
done, the amount of fumes will have to be manipulated while other
factors such as atmospheric pressure may have to be controlled. Because
of the location of the study, it will be a field experiment.
4. The unit of analysis would be the individual operators. The data will be
collected with respect to each operator and then the conclusion will be
made as to whether the operators are less efficient because of the fumes
emitted in the workshop.
5. This would be a longitudinal study because data will be gathered at
more than one point in time. First, the efficiency of the operators would
be assessed at a given rate of fume emission. Then the fumes emitted

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Research Methods
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would be manipulated to varying degrees, and at each manipulation the
efficiency of the workers would again be assessed to confirm that the
high rate of fume emission causes a drop in operators’ efficiency.

Exercise 6.2
You want to examine how exposure to thin or heavy models in advertisements
influences a person’s self-esteem. You believe that the effect of exposure to
models in advertisements depends on the extremity of the model's thinness or
heaviness.

Discuss the design decisions that you as a researcher will make to investigate
this issue, giving reasons for your choices.

An experimental study (causal study) will be needed since the goal of the study is to test a
cause-and-effect relationship.

A pretest will help you to select advertisements containing female models for the
following four conditions: moderately thin, extremely thin, moderately heavy, and
extremely heavy;
- participants view an advertisement booklet containing ads with female models.
- participants rate each model in terms of size (-5 =extremely overweight, +5 =
extremely thin) and attractiveness (-5 = extremely unattractive, + 5 = extremely
attractive).

Based on these scores, you will be able to select advertising models in each condition.
Note that models should differ from each other in terms of size but not in terms of
attractiveness (you have to perform post hoc comparisons to test for this).

In the actual experiment, participants must be randomly assigned to one of the four
conditions of the 2 (model size: thin vs. heavy) * 2 (extremity of model size: moderate vs.
extreme) between-subjects design. Participants are then provided with a booklet
containing ads: ads with models, pertaining to their condition, and filler ads with no
models (randomize the order of the ads). Eventually (after one or more filler tasks)
participants complete a self-esteem scale such as for instance the Appearance Self-
Esteem Scale (Heatherton and Polivy 1991).

Exercise 6.3

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Research Methods
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You want to investigate the specific effects of specific emotions on customers'

behavioral responses to failed service encounters across industries.

Discuss the design decisions that you as a researcher will make to investigate this
issue, giving reasons for your choices.

Because it is difficult (and probably unethical) to induce specific emotions in an

experiment a field study seems to be the more logical choice. Note however, that when

you use a field study, that it is very important to control for variables that might

potentially bias your results such as complaint success likelihood and switching costs.

The critical incident technique is a method that may help you to collect a wide variety of

negative experiences with service organizations.

Exercise 6.4
War on Cancer
Dr. Larry Norton of Memorial Sloan-Kettering Cancer Center predicts that
cancer treatment will undergo major changes. Several drugs are being
developed to battle cancer without harming healthy tissues. It is a question of
discovering which of these drugs does the job best.
Design a study that would help find which drug would do the trick.
An experimental study (causal study) of the Solomon Four-Group design
will be needed. A count of the healthy tissues in cancer patients at more or less the
same stage of cancer progress will first be taken, with about 20 patients in each
group. Each group, but the control group, will be treated with the different new
drugs. The cancer cell count will be taken both before and after treatment for a
period of time (say, 3 to 6 months) to see which has the most beneficial effect.

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Research Methods
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Thus it would be a longitudinal study with some manipulation (drug variation) and
control (matched or randomized groups). The unit of analysis will be groups.

More in-Class Exercises on Research

Design (with Answers)
Several situations are given below. For each situation, respond to the
following research design questions.
a. What would be the nature of the study that would be designed -
Exploratory, descriptive, or hypothesis-testing?
b. Give reasons for your answer to (a) above.
c. Would it be a Field study, Comparative study, Lab experiment or Field
experiment?
d. Would it be a causal or correlational study?
e. Justify the reasons for your answer to (d).
f. Would it be a longitudinal or cross-sectional study?
g. How would you explain your answer to (f) above? h. What would be the
unit of analysis?
i. Defend your answer to (h) above.
1. A researcher wants to test the theory that low levels of oxygen in the
mines is the single most important factor that tires the miners
easily.
ANSWER:
a & b: Hypothesis-testing, because the researcher wants to analyze
and test if the low levels of oxygen would, in fact, cause tiredness in
miners.
c: Will be a Field Experiment, because there would be manipulation
of the levels of oxygen in the natural environment of the workers.
d & e: Causal study, because the researcher wants to see if low
levels of oxygen cause tiredness in miners. He wants to establish a cause

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Research Methods
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and effect relationship between the independent and the dependent
variables.
f & g: It would be a Longitudinal study because data on tiredness
will be collected from the same batch of workers before and after each
manipulation of the extent of oxygen injected into the environment.
h & i: The unit of analysis will be individual miners because the
data will not be aggregated across groups, but each individual miner’s
level of tiredness will be recorded and used in data analysis.
2. An Auditor is interested in knowing the relationship among the
three variables – depreciation, assets accounting, and taxes paid.
ANSWER:
a & b: Hypothesis testing, because the manager wants to analyze the
correlations among the three variables.
c: Comparative Field study since the data will be gathered from
several firms.
d & e: Will be correlational since the relationship (and not cause and
effect relationships) among the variables is being studied.
f & g: Cross sectional since the data will be gathered only once. h &
i: Unit of analysis will be the firms.
3. The head-nurse in a hospital would like to have a profile of the
patients that come to her ward.
ANSWER:
a & b: Descriptive since the head nurse only wants a profile–a mere
description of the type of patients who come to her ward.
c: Field study, since the people coming to her ward (natural setting)
will be studied.
d & e: It is a descriptive study, using merely frequency distributions
and means and standard deviations. It is thus neither a causal nor a
correlational study.
f & g: Cross sectional, since data will be gathered from each person
just once to get the profile.
h & i: Unit of analysis will be individual patients since individual
profiles will be studied.

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Research Methods
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4. A basic researcher wants to engage in a research project which will
enable her to establish the relationship between certain personality
characteristics and the risk taking tendencies of stock brokers.
ANSWER:
a & b: Hypothesis-testing, since the researcher would have
formulated a conceptual framework of the type of personality
characteristics that would induce stock brokers to take more risks, and
would want to test her hypotheses.
c: Field study since subjects will be studied in the natural
environment in which they usually operate.
d & e: Correlational study since the relationships among the
personality characteristics and risk-taking are studied.
f & g: Cross sectional since data will be gathered at only one point
in time.
h & i: Unit of analysis will be individuals (stock brokers) since the
data analysis will be done on each individual’s responses without any
aggregation across groups.
Note: This can also be set up as a Lab experiment in which Finance
majors are put in a contrived setting and offered some investment
assignments that call for risk taking. Their personality characteristics
can be obtained through a questionnaire survey, and their risk taking
behavioral tendencies assessed by manipulating the level of financial
risks involved in the investments.
5. Bob’s Nissan and Toyota dealership is suffering from a severe
decline in the number of car sales. Bob decides to test two
approaches to sales. He randomly assigns his 12 salesmen to two
groups. He then trains one group to use the “hard sell” approach
and the other to use the “soft sell” approach so that he can
determine which method is more effective.
ANSWER:
a & b: Predictive, hypothesis testing study since Bob wants to be
able to test which one of the two sales approaches will help sell more
cars (i.e. predict which sales approach is effective).
c: Field experiment since the independent variable “sales approach”

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Research Methods
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is manipulated to be either hard or soft sell and tried in the natural
environment in which sales usually take place and not in an artificial lab
setting.
d & e: Causal study, since Bob wants to know which approach
would cause sales to increase.
f & g: Longitudinal, because the sales levels, both before the
manipulation and after, will be measured.
h & i: Unit of analysis will be groups since the sales of each of the
two groups – “soft sell” and “hard sell” salesmen – will be aggregated
and compared.
6. A production manager wants to see if by providing enhanced
automation technology, the productivity of the workers in the plants
can be raised. However, before trying this with all the five plants,
she would like to try this with a group of apprentices who work in
one plant.
ANSWER:
a & b: Hypothesis testing, analytical study, since the manager wants
to be able to analyze the cause and effect relationship between enhanced
automation and worker productivity.
c: Field experiment, since the study will be conducted in the natural
environment where events usually take place.
d & e: Causal study, since causal relationships are trying to be
established.
f & g: Longitudinal, since productivity measures will be taken from
the same workers before and after the introduction of the enhanced
automation.
h & i: Individuals will be the unit of analysis since there will be no
aggregation of data across group members.

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Research Methods
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© 2013 John Wiley & Sons Ltd. [Link]/college/sekaran