ACFN 3111-

Research Methods in Accounting & Finance

Chapter II
Formulation of the Research problem
Contents of the lecture

2.1 What is Research Problem

2.2 Hypothesis Formulation
2.3 Process of Testing Hypothesis
Introduction
 Previous discussions provided general perspectives and
understanding about research.
 Definition of research,
 Its role and purpose in the quest for knowledge
generation and understanding,
 The scientific method and ways of reasoning,
 Ethical considerations, etc.
 But, they did not provide guidance on how to do the
research.
 Some of the critical elements of the research process are
discussed in this part.
 The research process
 Research can be broken down into a series of steps that
are interrelated and are sometimes revisited in an
iterative fashion.

 In other words, the research task is usually a sequential

process involving several clearly defined steps.

 i.e., from the formulation of a general idea to actual

data collection, and interpretation of the results and
conclusions.
 The research process
 There are some conventionally acceptable standards that
should be achieved in order to gain credibility.

 Some researchers portray the steps in a linear form while

others put them in a cyclical form.

 Begin but never ending/Begin and end

The research process
 The conventional steps involved in the research
process are:
 Selecting a research topic
 formulating the research problem with focus on the
main research questions
 Literature survey
 Preparing the research design and determining the
sample design and sample size
 Collecting and analyzing the data
 Generalizations and interpretations of results
 Preparing the report and presentation of the
results
The research process
 In short: once a research idea is identified the research
process involves:

 Review of literature– new research is based on a

huge legacy of previous work.

 Understanding the nature of data –a good

understanding of the nature of data is required in
order to be able to collect and analyze it.
The research process
 Sampling – it is rarely possible to include every body or
everything in your research.
 How you select the sample is crucial to the
credibility of your research.

 Collecting data– a wide choice of collection methods

are available from which you can choose the methods
which are appropriate for particular types of
investigation.
The research process
 Analyzing data– what you do with the data after you
have collected it depends on the analytical methods
you adopt.

 Writing up – and presenting your research and findings

in a way that convinces others.

 Ethics–When doing research you need to take into

account all ethical issues to make sure that you do no
harm.
The research process
 The eight-step model for carrying out research
 PHASE I DECIDING WHAT TO RESEARCH
 Step I Formulating a research problem
 PHASE II PLANNING A RESEARCH STUDY
 Step II Conceptualising a research design
 Step III Constructing an instrument for data collection
 Step IV Selecting a sample
 Step V Writing a research proposal
 PHASE III CONDUCTING A RESEARCH STUDY
 Step VI Collecting data
 Step VII Processing and displaying data
 Step VIII Writing a research report
Defining the research problem and
objectives
 Steps in formulating a research problem
 If you do not know what specific research topic, idea,
questions or issue you want to research (which is not
uncommon among students), first go through the following
steps:
 Step 1 Identify a broad field or subject area of interest to you.
 Step 2 Dissect the broad area into subareas.
 Step 3 Select what is of most interest to you.
 Step 4 Raise research questions.
 Step 5 Formulate objectives.
 Step 6 Assess your objectives.
 Step 7 Double-check.
Defining the research problem and
objectives
 In business research problem-definition process involves
several interrelated steps:
1. Understand the business situation—identify key
symptoms
2. Identify key problem(s) from symptoms
3. Write managerial decision statement and
corresponding research objectives
4. Determine the unit of analysis (i.e. source of data:
individuals, households, organizations, geographical
areas, or objects such as products, advertisements)
5. Determine the relevant variables
6. Write research questions and/or research hypotheses
Identification of a Research Topic/
Problem
 The first step in the research process is to find an idea
for a research study.
 i.e. formulating and clarifying the research topic is
the starting point of your research project

 Capture the essence of the research in a “nutshell”

 Meaning deciding on the topic of the research and

finding a question which may be,
 an unresolved controversy, or
 simply a gap in knowledge within the chosen
subject.
Identification of a Research Topic/
Problem
 This is probably the most difficult, and yet the most
important, part of your research project.

 Without being clear about what you are going to

research it is difficult to plan how you are going to
research it.

 Once you have done this you will need to turn the
idea into research questions and objectives and to
write the research proposal for your project
Identification of a Research Topic/
Problem
 Identifying a research topic typically involves two
steps:

 First, selecting a general topic area,

 The general topic area is simply the starting
point that eventually will evolve into a very
specific research question.

 You need to find an interest in a broad subject area

(problem area).
Identification of a Research Topic/
Problem
 Second, reviewing the literature in that general area to
find a specific research questions.
 This process will enable you to:
 Narrow the idea to a plausible topic.
 Question the topic from several points of view, and
 Define a rationale for your project.
 As you read through the research literature,
 you will become familiar with the current state of
knowledge and can determine what questions are
still unanswered.
Identification of a Research Topic/
Problem
 Generally, there are three types of research titles:

 Indicative title:
 they state the subject of the research rather than
the expected outcomes.

 Example: The role of agricultural credit in

alleviating poverty in a low-potential areas of
Ethiopia.
Identification of a Research Topic/
Problem
 Hanging titles have two parts: a general first part
followed by a more specific second part.

 Example: ‘Alleviation of poverty in low-potential

areas of Ethiopia: the impact of agricultural credit’.

 Question-type titles are used less commonly than

indicative and hanging titles.

 Example: ‘Does agricultural credit alleviate poverty

in low-potential areas of Ethiopia?’
Identification of a Research Topic/
Problem

Where do research topics come from?

Identification of a Research Topic/
Problem
 There is no set formula for the identification of a topic
of research.

 In principle a topic must spring from the researcher’s

mind like a plant springs from its own seed

 i.e. it should be generated by the researcher

Identification of a Research Topic/
Problem
 Ideas for a research topic can come from a variety of
sources including: everyday experiences, books, journal
articles, or class work.

 The best way to identify a topic is to draw up a shortlist of

possible topics that have emerged from your reading or
from your own experience that look potentially interesting.

 A general area of interest or aspect of a subject matter

(accounting, finance, industry, social sector, etc.) may have
to be identified at first.
Identification of a Research Topic/
Problem
 The best guide is to conduct research on something that interest
you.
 Accounting software or systems
 Accountants role
 Risk and risk management
 Social and environmental accounting
 Japanese and lean manufacturing accounting
 MA theories and practices
 Strategic management accounting
 Capital budgeting
 Budgetary control
 Management control systems
 Cost management
 Performance measurement and rewards, etc.
Identification of a Research Topic/
Problem
A) Generated by the researcher.
 Own professional experience is the most important
source of a research problem.
 choose a topic in which if possible, already have
some academic knowledge.

 For instance, some researchers are directly engaged in

program implementation and come up with a topic
based on what they see is happening.
 attending conferences, seminars, and listening to
professional speakers, etc. are all helpful in
identifying research problems.
Identification of a Research Topic/
Problem
B) Examining the literature
 Examining the theoretical or empirical literature in your
specific field.
 Published articles are excellent sources of ideas. They
help to…
 Explore findings discovered in previous research.
 Identify suggestions an author gives for further
research at the end of an article.
 Extend an existing explanation or theory to a new
topic or setting.
 Challenge findings or attempt to refute a relationship.
Identification of a Research Topic/
Problem
C) Provided by a client

 Requests For Proposals (RFPs) are published by

government agencies, NGOs and some companies.
 They describes the problem that needs to be
addressed,
 the contexts in which it operates,
 the approach they would like you to take, and
 the amount they would be willing to pay for such
research - they are virtually handing the
researcher an idea.
Identification of a Research Topic/
Problem
 But, if the topic is something in which you are not
interested you will have to weigh the advantage against
the disadvantage of a potential lack of personal
motivation.

d) Technological and Social Changes

New developments bring forth new development
challenges for research.
E) Looking at Past Project Titles
Scanning your university’s list of past project titles for
anything that captures your imagination
Identification of a Research Topic/
Problem
 F) Scanning the Media
 Keeping up to date with items in the news can be a
rich source of ideas.
 The stories which occur everyday in the newspapers

 G) Discussion and Brainstorming

 Colleagues, friends, practitioners and university
tutors are all good sources of possible project ideas.
Identification of a Research Topic/
Problem
 The most fundamental rule of good research is to
investigate questions that sincerely interest you.

 i.e. research which a researcher honestly enjoys

even if he/she encounters problems frustrating
or discouraging.

 The research process can be a long term, messy and

demanding enterprise.
Identification of a Research Topic/
Problem
 Without motivation, it is very easy for a researcher to
get tired or bored and give up before the research is
completed.

 Subject which is overdone, should be avoided by the

average researcher since it will be difficult to throw
any new light in such cases for the average researcher.
Identification of a Research Topic/
Problem
 So, choose a worthwhile issue which is
 New
 Catchy
 Focused
 Non-obvious conclusion
 You can get the data
 Doable
Identification of a Research Topic/
Problem
 Remember: Keep Track of References
 Any literature cited must be listed properly in a
References section.

 Record the full references as you go!

 Author, title, journal name, volume and date,
page numbers, book publisher & location, date

 Always record page numbers.

 Give page numbers for all information, not just
quotations.
 Identification of a Research Topic/
Problem
 Examples of topics, research problems and related
research questions
Example 1 Example 2
Topic Employee retention Finance
Research Effect of new career-break Access to finance for small
problem scheme in Firm A on the firms
recruitment and retention
of skilled staff
Research How has the new career- How do small firms meet
question break scheme contributed their needs for finance (in
to employment in Firm A? a particular industry,
geographical location, time
period, etc.)? 33
Identification of a Research Topic:
Examples of research problems
 Communication methods – The effectiveness of public service
announcements for communicating with students
 Corporate governance – How corporate governance can be
extended to employee communications
 Environmental issues in manufacturing – Influence of ‘green’
factors on supplier selection in the manufacturing sector
 Financial accounting in the National Health Service – The use of
financial accounting by doctors in general practice
 Financial reporting – The most effective way of communicating
financial information to stakeholders
 Gender issues in employment – The effect of career-break
schemes on the recruitment and retention of skilled staff

34
Attributes of a good research topic/
problem
 Your research topic must be something you are
capable of undertaking it and one that excites your
imagination.

 Capability implies that:

 you feel comfortable that you can develop, the
skills that will be required to do the research.
Attributes of a good research topic/
problem
 Capability also means you must be reasonably certain of
gaining access to any data you might need to collect.

 Many people start with ideas where access to data

will prove difficult.

 It is also important that the issues within the research

are capable of being linked to theory.

 As a consequence you will need to have a knowledge

of the literature and to undertake further reading as
part of defining your research questions and
objectives.
 Attributes of a good research topic/
problem
 Your ability to find the financial and time resources to
undertake research on the topic will also affect your
capability.

 Some topics are unlikely to be possible to complete in the

time allowed by your course of study.

 For example: topics that are likely to require you to

travel widely or need expensive equipment should be
disregarded unless financial resources permit.
 Attributes of a good research topic/
problem
 Another attribute of a good topic is having clearly defined
research questions and objectives.
 These will enable you to assess the extent to which your
research is likely to provide fresh insights into the topic.

 Finally, it is important to consider your career goals.

 If you wish to become an expert in a particular subject

area or industry sector, it is sensible to use the
opportunity to develop this expertise.
 Attributes…research topic/problem:
Summary
 Capability: is it feasible?
 Do you have, or can you develop within the project time
frame, the necessary research skills to undertake the topic?
 Is the research topic achievable within the available time?
 Will the project still be current when you finish your project?
 Is the research topic achievable within the financial
resources that are likely to be available?
 Are you reasonably certain of being able to gain access to
data you are likely to require for this topic?
Attributes…research topic/problem:
Summary
 Appropriateness: is it worthwhile?
 Does the topic fit the specifications and meet the
standards set by the examining institution?
 Does your research topic contain issues that have a clear
link to theory?
 Are you able to state your research question(s) and
objectives clearly?
 Will your proposed research be able to provide fresh
insights into this topic?
 Are the findings for this research topic likely to be
symmetrical: that is, of similar value whatever the
outcome?
Attributes…research topic/problem:
Summary
 Fulfilment
 Does the research topic really interest and motivate you?

 Will the research topic help towards the achievement

of your future aspirations or career goals?
 Research Questions-Turning research ideas
into Research Questions
 The problem of the research, which had been stated in general
terms, is now made specific through Research Questions.
 A research question /s
 is a question that provides an explicit statement of what it is
the researcher wants to know about.
 force you to consider the issue of what it is you want to find
out about precisely and rigorously.
 express the research objectives in terms of questions that
can be addressed by research.
 asking a research question serves to narrow your focus on
the topic of interest.
Research Questions-Turning research ideas
into Research Questions
 Research question/s…
 stem from the aims, purposes and objectives of the
research.
 turn a general purpose or aim into specific questions to
which specific, data-driven, concrete answers can be
given.
 is the process of operationalization of the aims and
purposes into research questions.
 the answers to the research questions can provide
some of the ‘deliverables’.
 must be aligned with the aims and objectives of the
research.
Research Questions-Turning research
ideas into Research Questions
 In terms of specificity, a research question rests in the
middle between a theory, which is very broad, and a
hypothesis, which is very precise.
 Theories are general statements and research
questions are mid- level statements, hypotheses are
specific predictions about what will happen according to
the theory.
Research Questions-Turning research
ideas into Research Questions
 Developing research questions is a matter of narrowing
down and focusing more precisely on what it is that you
want to know about.

 If you do not specify clear research questions,

 there is a great risk that your research will be
unfocused,
 that you will be unsure about what your research is
about, and
 unsure about what data you are collecting data for,
etc.
 Research Questions-Turning research
ideas into Research Questions
 So, research questions will:
 guide your literature search;
 guide your decisions about the kind of research design to
employ;
 guide your decisions about what data to collect and from
whom;
 guide your analysis of your data;
 stop you from going off in unnecessary directions; and
 provide your readers with a clearer sense of what your
research is about
Research Questions-Turning research
ideas into Research Questions
 Many studies may have:
 one research question that asks for descriptive data,
together with
 another that asks for explanations (causal – why –
or ‘how’ questions), together with
 a third that asks for the implications/
recommendations that derive from the answers to
the preceding two research questions, moving from
description to analysis/explanation to evaluation/
implications/recommendations, i.e. three research
questions.
Research Questions-Turning research
ideas into Research Questions
 Or the research questions may comprise:
1. a question that asks for descriptive data (what, who,
where, when); followed by

2. a question that requires comparisons, differences,

relations to be drawn; followed by

3. a question that asks ‘so what?’ (implications and

recommendations).
Defining the research problem and
objectives
 What is a research problem/gap?
 refers to any difficulty, which a researcher
experiences in the context of either a theoretical or
practical situation and wants to obtain a solution for.
 is the first step and the foundation or the heart of
every research process.
 occurs when there is a difference between the
current state of conditions and a more preferable
set of conditions.
Defining the research problem and
objectives
 Statement of the Problem
 Problem definition (problem statement) is a clear and
precise statement of the question or issue to be
investigated.
 Problem statement is:
 a clear statement about an area of concern,
 a condition to be improved upon,
 a difficulty to be eliminated, or
 a troubling question that exists in scholarly literature,
in theory, or within existing practice.
Defining the research problem and objectives
 Defining a problem clearly:
 involves the task of laying down the boundaries within
which a researcher shall study the problem.
 is more important than its solution, i.e. a problem clearly
defined is a problem half solved.
 will help to find answers to questions like:
 What data are to be collected?
 What characteristics of data are relevant and need to
be studied?
 What relations are to be explored?
 What techniques are to be used for the purpose?
Defining the research problem and
objectives

 Hence, in the definition of the problem you are

required to describe:
 the background of the study,
 its theoretical basis and the underlying assumption,
 the specific and workable questions, and
 an explanation of why it is important or significant,
and what advantage (i.e. to society or to other
researchers) the research may deliver.
Defining the research problem and
objectives

 The problem statement should make a convincing

argument that there is insufficient knowledge
available to explain the problem.
 The problem definition should also provide a brief
overview of the literature and research done in the
field related to the problem and of the gaps that
the proposed research intends to fill.
Defining the research problem and objectives

 The problem statement may focus on:

 Identifying a Gap: A research gap is an area where
no or little research has been carried out.
 Raising a question: The research problem is defined
by asking a question to which the answer is
unknown, and which you will explore in your
research.
Defining the research problem and
objectives
 Continuing a previously developed line of enquiry.
Building on work already done, but taking it further (by
using a new sample, extending the area studied,
taking more factors into consideration, taking fewer
factors into consideration, etc.).
 or

 Counter-claiming: here a conflicting claim, theory or

method is put forward.
The research objectives
Objectives of the study:
 is the researcher’s version of the research problem
 is the step of rephrasing the problem into operational
or analytical terms, i.e. to put the problem in as specific
terms as possible.
 are generally taken as evidence of the researcher’s
clear sense of purpose and direction.
The research objectives
Objectives of the study:…
 These research objectives are the deliverables of the
research project.
 Should be written as a statement regarding an action
to undertake, using the word “to” (e.g. “to discover…,”
“to determine…,” “to ascertain…,” “to establish…” etc.)
The research objectives
 Objectives should be listed under two headings:
 Main/general objectives;
 sub objectives.
 The general objective
 provides a short statement of the specific goals pursued
by the research.
 Using the general focus of your research question you
will develop a set of research objectives.
 is the purpose of the research, expressed in measurable
terms; the definition of what the research should
accomplish.
The research objectives
 The specific objectives
 are the objectives against which the success of the
whole research will be judged.
 are the basis for the research design.
 list of the specific activities to be performed.
 are operational and indicate the type of knowledge
to be produced, audiences to be reached, etc.
The research objectives
The research objectives
 Example:
 General objective/problem: To explain the determinants of
audit fees in the public and private sectors of Ethiopia.
 Specific objective/Sub-problem 1. To provide evidence on
the determinants of audit fees paid by public sector
organizations to their external auditors.
 Specific objective/Sub-problem 2. To provide evidence on
the determinants of audit fees paid by private sector
organizations to their external auditors.
 Specific objective/Sub-problem 3. To compare the
determinants of audit fees in the public and private sector
organizations to discern any pattern of variation/
association in audit pricing and explain why.
The research objectives
 Following are four key characteristics of subproblems.
1. Each subproblem should be a completely researchable unit.
 A subproblem should constitute a logical subarea of the larger
research undertaking.
2. Each subproblem must be clearly tied to the interpretation of the
data.
 Just as is true for the main problem, each subproblem should
involve interpretation as well as collection of data.
3. The subproblems must add up to the totality of the problem.
 The old axiom that the sum of the parts equals the whole
applies here.
4. Subproblems should be small in number.
 If the main problem is carefully stated and properly limited to
a feasible research effort, the researcher will find that it
usually contains two to six subproblems.
The research objectives
 The objectives must be SMART:
 Specific. What precisely do you hope to achieve
from undertaking the research?
 Measurable. What indicators will you use to
determine whether you have achieved your
objectives?
 Achievable. Are the targets you have set for
yourself achievable given all the possible
constraints?
 Realistic. will you have the energy to complete the
research on time?
 Timely. Will you have time to accomplish all your
objectives in the time frame you have set
The Literature Review
 Scientific research is a collective effort of many
researchers who share their results.
 So, a literature review is based on the assumption that
knowledge accumulates and that we learn from and build
on what others have done. Hence, the researcher should
undertake an extensive survey of the literature related to
the problem.
 Its function is to review—to “look again” at (re +
view)—what others have done in areas that are similar,
though not necessarily identical to, one’s own topic of
investigation.
The Literature Review
 You should remember that others have also conducted
research that is related to the topic.
 i.e. current studies build on previous studies.

 By fully acknowledging the research of others you will

avoid charges of plagiarism and the associated
penalties.

 Reviewing the literature critically will provide the

foundation on which your research is built.
The Literature Review
 The purpose of the literature survey is:
 to provide the researcher with an understanding of
the literature as it relates to the current project;
 to enable the researcher to learn from the efforts
of others;
 to help refine further the research question(s) and
objectives;
 to highlight research possibilities that have been
overlooked in research to date;
The Literature Review
 to summarize the results of previous research and
lay the foundation of your own research;
 to help you to avoid simply repeating work that has
been done already;
 to provide insight into research approaches,
strategies and techniques that may be appropriate
to your own research question(s) and objectives.
The Literature Review
 The purpose is not to provide a summary of everything
that has been written on your research topic.

 But to review the most relevant and significant

research on your topic.

 You will need to demonstrate that you are familiar with

what is already known about your research topic.
The Literature Review
 Where to find the Research Literature
 The literature sources can be divided into three
categories: primary (published and unpublished),
secondary, and tertiary.

 Primary sources for instance, include:

 published sources such as reports and government
publications such as planning documents –
unpublished sources such as letters, memos and
committee minutes, proceedings, etc.
The Literature Review: summary
 As a researcher, you should ultimately know the literature related
to your topic very, very well. An extensive literature review has
many benefits:
 It can help you ascertain whether other researchers have
already addressed and answered your research problem or at
least some of its sub problems.
 It can offer new ideas, perspectives, and approaches that may
not have occurred to you.
 It can inform you about other individuals who conduct work in
this area—individuals whom you may wish to contact for advice
or feedback.
 It can alert you to controversial issues and gaps in
understanding that have not yet been resolved—issues and
gaps you might address in your own work.
The Literature Review: summary
 It can show you how others have handled methodological and
design issues in studies similar to your own.
 It can reveal sources of data you may not have known existed.
 It can introduce you to measurement tools that other
researchers have developed and effectively used.
 It can help you interpret and make sense of your findings and,
ultimately, help you tie your results to the work of those who
have preceded you.
 It can bolster your confidence that your topic is one worth
studying, because you will find that others have invested
considerable time, effort, and resources in studying it.
 Defines the field of the research.
The Literature Review: summary
 indicates the ‘state of the art’ in the field chosen;
 sets out the context – temporal, spatial, political etc. – of the
research;
 identifies seminal and landmark ideas and research in the field;
 establishes and justifies the need for the research to be
conducted, and establishes its significance and originality;
 sets out a rationale for the direction in which the study will go;
 establishes and justifies the methodology to be adopted in the
research;
 establishes and justifies the focus of the research;
 sets out and justifies the warrants to be used in the research
design.
The Literature Review
 Secondary literature sources such as books and
journals.
 They are easier to locate than primary literature as
they are better covered by the tertiary literature.

 Tertiary literature sources, are designed either to help

to locate primary and secondary literature or to
introduce a topic - ‘search tools’
 They include indexes and abstracts as well as
encyclopedias and bibliographies.
The Literature Review
 In general, the following are the main sources:
 Computer: online and internet based sources-
Google, Web Pages, JSTOR, Econlit, etc.
 Books and Bibliographic indexes,
 Dissertations and theses,
 Government documents,
 Policy reports and presented papers,
 conference proceedings, magazines, etc.

 Usually one source leads to the next.

Types of Literature Reviews
 1. Context reviews is a background review and places a
specific project in the big picture.

 It introduces the rest of a research and establishes

the significance and relevance of a research
question.

 The review can summarize how the current research

continues a developing line of thought, or it can point
to a question or unresolved conflict.
Types of Literature Reviews
 2. Historical review traces the development of an
issue over time.

 It traces the development of an idea or shows how

a particular issue or theory has evolved over time.
 3. Theoretical reviews compare how different theories
address an issue.
 It present different theories and compare them for
the soundness of their assumptions, logical
consistency, and scope of explanation.
Types of Literature Reviews
 4. Methodological reviews point out how methodology
varies by study.

 In it researcher evaluates the methodological

strength of past studies.

 It describes conflicting results and shows how

different research designs, samples, measures, etc.,
account for different results.
Structuring the review
 The precise structure of the critical review is usually
your choice.

 Three common structures are:

 a single chapter;
 a series of chapters;
 throughout the project report as you tackle various
issues.
Structuring the review
 Summarize every article briefly; a sentence or two will
do
 Interpret the article in light of its relevance to your
own study
 Critique it, if necessary

 Show the stock of knowledge building up over the

course of the literature and show how your research
topic adds to this stock of knowledge
Structuring the review
 Several articles can be summarized in one mention

 Example: There have been numerous studies

attempting to measure the return to education (see
Becker (1963); Mincer (1968); Angrist and Krueger
(1988); Bound et al. (1991)).”

 How long should the literature review be?

 a useful guide is that your review is likely to be in
the region of 25–30% of your overall word count.
So far in this part we have discussed …
 The research process- research is broken down into a series
of steps.
 Steps involved in the research process
 Identification of a Research Topic
 The research questions
 Attributes of a good research topic
 Capabilities
 Appropriateness- worthwhile

 Defining the research problem and setting

objectives
 The literature review
Development of working hypothesis
 After an extensive survey of the literature, researchers
should state in clear terms the working hypotheses.
 A hypothesis is a statement, which predicts the
relationship between two or more variables.
 It provides an anticipation of what will be found out
 It is a link between theory and the investigation.
 It provides a logical framework that guides a
researcher while designing a research study and
collecting data.
 Formulating hypothesis is particularly useful for causal
relationships.
Development of working hypothesis
 Hypothesis
 an unproven proposition (that is empirically testable),
logical supposition, a reasonable guess, an educated
conjecture that provides a tentative explanation for a
certain fact or phenomenon under investigation;
 are a set of suggested tentative solution of a
research problem, which can be or may not be a real
solution.
 it may direct your thinking to possible sources of
information that will aid in resolving one or more
subproblems and, as a result, may also help you
resolve the principal research problem.
Development of working hypothesis
 Hypothesis
 The word Hypothesis is composition of two words,
“Hypo” and “Thesis”. Hypo means “under or below”
and thesis means “a reasoned theory or a rational
viewpoint”.
 means a theory which is not fully reasoned.
 is a proposition that can be tested for association or
causality against empirical evidence (data based on
observation or experience, e.g. survey data)
 Each hypothesis is formulated as a statement about
a relationship between two variables and can be
expressed in the null or the alternative form
Development of working hypothesis
 Testing Hypothesis (the null hypothesis)
 Is the process of comparing observed data with the
results we would expect from chance alone:
1. State the hypothesis (null and alternative)
2. Determine the appropriate test statistics
3. Specify the significance level (i.e. namely, “giving a
signal” that certain dynamics are operating within
the data and merit attention).
4. Determine the decision rule
5. Collect data & perform the needed conclusion
6. Decide to reject or not reject and produce conclusion
Characteristics of useable hypotheses
 There are some important criteria for judging the
goodness of a hypothesis.

 The hypothesis must be conceptually clear.

 This involves two things
 the concept should be clearly defined
 the hypothesis should be commonly accepted
ones. i.e. the hypothesis should be stated in
simple terms.

 The hypothesis must be specific.

 assure that research is practicable and significance.
Characteristics of useable hypotheses
 The hypothesis should be related to available techniques.

 The hypothesis should be related to a body of theory.

 It should poses theoretical relevance.

 The hypothesis should be testable.

 hypothesis should be formulated in such a way that it
is possible to verify it.
Characteristics of useable hypotheses
 Null and Alternative hypothesis
 Null hypothesis (Statistical hypothesis) –Ho
 a proposition that states a definitive, exact relationship between
two variables
 States that the population correlation between two variables is
equal to zero or that the difference in the means of two groups in the
population is equal to zero (or some definite number)
 Expressed as no (significant) relationship between two variables or
no (significant) difference between two groups
 Alternative hypotheses (Research hypothesis) –Ha/
H1
 the opposite of the null
 Statement expressing a relationship between two variables or
indicating differences between groups
The null and the alternative
hypothesis
 The null hypothesis (H0) states that the variables are independent of

one another (ie there is no association)

 The alternative hypothesis (H1) states that the variables are

associated (ie there is an association)

 H0 is the default

 H1 is accepted only if the test result provides significant

evidence to reject H0

If you predict the IV has an effect on the DV in a particular direction,


it is known as a one-tailed hypothesis
A two-tailed hypothesis is where you cannot predict the
 89

direction
 Example: Hypotheses to be tested
H1 Voluntary audit is positively associated with turnover
H2 Voluntary audit is positively associated with agreement that the audit provides a check on
accounting records and systems
H3 Voluntary audit is positively associated with agreement that it improves the quality of the
financial information
H4 Voluntary audit is positively associated with agreement that it improves the credibility of
the financial information
H5 Voluntary audit is positively associated with agreement that it has a positive effect on the
credit rating score
H6 Voluntary audit is negatively associated with the company being family-owned
H7 Voluntary audit is positively associated with the company having shareholders without
access to internal financial information
H8 Voluntary audit is positively associated with demand from the bank/lenders
H9 Voluntary audit is positively associated with the directors having qualifications or training
in business or management
90
Possible Sources of Hypothesis
 Hypothesis may be developed/formulated from a variety of
sources, including the following:
 Hypothesis originates in the science itself or in the
scientist:
Analogies (comparisons or analogies between social and
natural systems).
 Hypothesis may rest also on the findings of other studies
(e.g. exploratory)
 A hypothesis may stem from a body of theory
 value orientation of the culture in which a science
develops
may furnish many of its basic hypotheses
 To conclude the ideal source of fruitful and relevant
hypothesis is a fusion of past experience and
imagination of the researcher.
 Hypotheses to be tested
H1 Voluntary audit is positively associated with turnover

H2 Voluntary audit is positively associated with agreement that the audit

provides a check on accounting records and systems
H3 Voluntary audit is positively associated with agreement that it improves
the quality of the financial information
H4 Voluntary audit is positively associated with agreement that it improves
the credibility of the financial information
H5 Voluntary audit is positively associated with agreement that it has a
positive effect on the credit rating score
H6 Voluntary audit is negatively associated with the company being family-
owned
H7 Voluntary audit is positively associated with the company having
shareholders without access to internal financial information

H8 Voluntary audit is positively associated with demand from the bank/ 92

lenders
H9 Voluntary audit is positively associated with the directors having
END OF CH02 – NEXT CH03

Compiled by Andualem (2015/2023) 93

 ACFN 3111-
Research Methods in Accounting & Finance

Chapter III
Developing a Research Proposal
A schematic view Functionalistic research process
Developing a Research proposal

3.1 The purpose of a research proposal

3.2 Structure of a research proposal
3.2.1 Background of the study
3.2.2 Statement of the problem
3.2.3 Research Objectives
3.2.3 Research Hypothesis
3.2.4 Significance of the Research
3.2.5 Literature Review & Reference citation
3.2.6 Research methodology
3.2.7 Work plan and Budget / Logistics
3.2.8 Other sections of the proposal (cover page, abstract)
3.2.9 Proposal writing (Hand in Written Assignment )
Chapter III…

3.2.6 Research methodology

Planning and Preparing the Research Design
 Once the research problem has been formulated in clear terms
a research design is prepared.
 Having a good research design enables a researcher to collect
sufficient information with smaller bias and reasonable costs.
 There are numerous types of research design that are
appropriate for different types of research projects.
 E.g. experimental, quasi experimental, cross-sectional,
longitudinal and case studies.
 The choice of which design to apply depends on the nature of
the problem posed by the research.
Example: Relevance tree for the topic: Corporate
financial disclosure practices

6
Example

 Topic: Gender issues in employment

 Research problem: Effect of the new career-break
scheme in Firm A on the recruitment and retention of
skilled staff
 Research question: How has the new career-break
scheme contributed to employment in Firm A?
 What is the nature of the scheme? (descriptive)
 What effect has it had on recruitment of male and female staff?
(analytical)
 What effect has it had on the retention of male and female staff?
(analytical)

7
Planning and Preparing the Research
Design

 The selection of an appropriate research design involves

factors like,
 the research objective,

 the costs involved in conducting the research,

 the availability of data sources.

 The design that gives the smallest experimental error is

the best design.
Planning and Preparing the Research
Design
 The following elements are critical when making design
decisions
 What is the study about (purpose of the study)
 Why is the study being made (reasons for undertaking the
study)
 What type of data is required (data required)
 Where can the required data be found (source of data)
 What will be the sampling design
 What techniques of data collection will be used
 How will the data be analyzed (method of data analysis)
 In what style will the report be prepared (method of
reporting)
Research Design

 A research design:
 is a plan, structure and strategy of investigation within
which research is conducted.
 constitutes the blue print or framework for the collection,
measurement, and analysis of data.
 indicates the appropriate research methods.
 is a plan that directs the collection, estimation and
analysis of data.
 is a plan that specifies the sources and types of
information relevant to the research question.
Research Design
 Research Methodology vs. Method
 Methodology - is an approach to the process of the research,
encompassing a body of methods
 Method - is a technique for collecting and/or analysing data
 Primary data are data generated from an original source
(e.g. your own experiments, surveys, interviews or focus
groups)
 Secondary data are data collected from an existing source
(e.g. publications, databases or internal records)
Research Design
 Research paradigm
 the starting point in research design is to determine the
research paradigm.
 basic belief systems or worldview based on ontological,
epistemological and methodological assumptions.
 guide the research or inquiry, the choice of methodology
and methods;
 the term paradigm comes from the Greek word paradeigma
which means pattern.
 is essentially a way of thinking about or viewing the world.
 frameworks that researchers use as a basis for everything
else that they do.
 is like the lens on a pair of glasses.
Research Design
Research Design

 Ontology
 Refers to the researcher’s beliefs about the nature of reality.
 Beliefs about what is real or true determine what can be
known about reality.
 Ontological questions include:
 What exists? What is true? How can we sort existing
things?
 Does the researcher believe in: a)one reality that is
context-free and can be discovered? Or b) multiple
mental constructions of reality that are bound by context?
Research Design
 Epistemology
 Refers to how we come to know what we know.
 Epistemology and methodology are driven by ontological
beliefs.
 Examines the relationship between knowledge and the
researcher during discovery.
 Does the researcher believe that the relationship with
participants should be Objective OR Subjective?
 What is the nature of knowledge and the relationship
between the knower and the would-be known?
 In epistemology, researchers consider:
 How is knowledge acquired?
 How do we know what we know?
Research Design

 Methodology
 Refers to the way we go about discovering knowledge in a
systematic way.
 It is more specific and practice-based than epistemology.
 Driven by the researcher’s ontological and
epistemological beliefs.
 How can the knower go about obtaining the knowledge
and understanding he/she desires?
Research Design
 Axiology
 Refers to what the researcher believes is valuable and
ethical.
 Axiology is a term that deals with ethics, aesthetics, and
religion.
 Is also recognized as an integral consideration in relation
to a paradigm.
 Different types of research are based on different set of
beliefs; to understand research, one must examine the
philosophy behind it.
Research Design

 Realist ontology - Realism

 is a belief that reality exists which:
 is driven by natural laws.
 is objective, independent of any theories or human
beliefs or human behavior and exists even if it is not
yet known.
 is context free.
 is the ontological perspective within the quantitative
or positivist paradigm of research.
Research Design

 Realism…
 Realists believe in
 “the truth” that is objective, static and measurable.
 Context-free generalizations
 Cause and effect laws
 Research that converges on the truth
 Reductionist and deterministic approaches
Research Design

 Relativist ontology - Relativism

 The strongest contrasting ontological perspective to
realism
 Research founded on relativism searches for meaning in
the experiences of individuals
 Is the belief that reality can not exist without context
 Is the ontological perspective within the qualitative or
constructivist paradigm of research.
Research Design
 Relativism…
 Relativists believe in
 Searching for meaning rather than truth
 “Truths” are subjective, dynamic, and contextual
 Knowledge that is contextual
 Multiple truths that may conflict but are still true
 Perceptions or truths that may change with time
 We do not find knowledge, we construct it.
 that there are multiple mental constructions of reality.
 these realities are influenced by experiences and social
interactions.
 each person therefore has their own reality that is
considered “correct”.
Research Design

 Relationships: Ontology, epistemology, methodology

 The ontological, epistemological, and methodological
assumptions within inquiry paradigms are so interrelated
that answering one question shapes how others can be
answered.
 For example, if a researcher beliefs that reality can be
measured, he/she will want an objective relationship
with subjects. Simply put, it is a matter of congruence.
Research Design
 Positivism – Positivist paradigm
 Axiology: Honesty, Integrity, & Truth
 Ontology: Realism – Realities are objective
 Epistemology: Dualist & Objective
 Methodology: Experimental & Manipulative
 Constructivism – Constructivist/ Interpretivist paradigm
 Axiology:
 Ontology: Relativism: Realities are constructed/subjective.
 Epistemology: Interactive/ transactional and subjective with co-
created findings
 Methodology: Qualitative, interpretative, and logical with a well
described context.
Research Design
 Methodologies associated with positivism
 Experimental studies are used to investigate the
relationship between variables where the independent
variable (IV) is deliberately manipulated to observe the
effect on the dependent variable (DV) – E.g. The relationship
between capital structure (IV) and stock price (DV) in an
artificial or natural setting
 Surveys are designed to collect primary or secondary data
from a sample, with a view to generalizing the results to a
population – E.g. An analytical survey to investigate
investor’s views on value relevance of accounting
information for investment decisions.

24
Research Design
 Methodologies associated with interpretivism
 Ethnography – The researcher uses socially acquired and shared
knowledge to understand the observed patterns of human
activity
 Involves direct participation in the activities taking place and
normally takes place over a long period of time
 Provides a full or partial description of a group of people,
generally through participant observation in a natural setting
 Action research is used to find an effective way of bringing about
a conscious change in a partly controlled environment
 The main aim is for the researcher to enter into a situation,
attempt to bring about change and to monitor the results
 E.g. A study aimed at improving communications between
management and staff in an particular firm

25
Research Design
 Example - influence of paradigm on the research design
 Topic: Adoption of IFRS
 Research problem: Effect of adoption of IFRS on financial
reporting practices (transparency –info asymmetry,
accountability, efficiency)
 Research question: How has the IFRS (new accounting/
reporting system) contributed to the quality of financial
reporting practices?
 Methodology: Case study
 Positivist – Statistical analysis of secondary data (internal
records) and primary data (staff questionnaire)
 Interpretivist – Thematic analysis of primary data (semi-
structured interviews with staff)
26
Chapter III…

3.2.9 Proposal writing

Preparing the research proposal
 Every activity needs thorough planning.
 When you have thought out a research problem, you
must plan how the research will be carried out.

 This plan, which is like the building plan or blueprint to a

builder, is called Research Proposal.

 The research proposal is the main vehicle for the planning

of your research.
 The research proposals constitute the evidence of the
research plan.
Preparing the research proposal
 The proposal provides a basis for the evaluation of the
work and demonstrates clearly that the researcher know
what he/she wants to do.

 the proposal is the means though which evaluators

determine the intent of the research and its feasibility.

 It assures that the parties understand the project’s

purpose and the proposed method of investigation.

 It provides an inventory of what must be done and

which materials have to be collected
The purposes of the research proposal

1. It has a planning function

 It describes what will be done, how it will be done and
in what time-frame.

2. Organizing your ideas

 The proposal will help you to organize your ideas into
a coherent statement of your research intent.
 Your reader will be looking for this-objectives.
 It helps you to identify flaws or inadequacies.
The purposes of the research proposal
3. Convincing your audience
It serves as a basis for determining the feasibility of the
project and provides a systematic plan of procedure for the
researcher to follow.
 the proposal is used as the basis for vetting the quality
of the proposed research.

 However coherent and exciting your ideas, the

research plan is useless, if the proposal reveals that
what you are planning to do is simply not possible.
The purposes of the research proposal
4. Contracting with your ‘client’
 If you were asked to carry out a research project for a
commercial client you need to submit a clear proposal
for approval.

Through the proposal you will specify what will be

delivered and how this will be achieved and would serve as a
contract.
The purposes of the research proposal
5. Educational function.
 the research proposal can act as an end-product in its
own right rather than serve as a prelude to an empirical
research project.
 Research proposals provide a useful learning exercise
for students.

 So, a research proposal is a pre requisite in the research

process.
Contents of a research proposal
 There are various formats for the research proposal and it
varies from Institution to Institution.
 However, most formats include the following:
 Introduction
 Background
 Statement of the problem
 Purpose of the study
 Significance of the study (Implications and Application)
 Operational definition of terms
 Assumptions of the study
 Scope and limitations of the study
Contents of a research proposal
 Theoretical Framework of the Study
 Review of the Related Literature
 Literature Review
 Appraisal/Summary of Literature review.
 Research Questions and Hypothesis
Contents of a research proposal
 Research Methodology
 Research Design
 Subjects (Population and sample; sampling
Technique)
 Instruments (construction and administration)
 Method of data analysis
 Statistical of Procedure to be used

 Budget and Time Schedule

 References
Contents of a research proposal
I. Introductory section – this part should include the
following information

a) The title – the title should closely mirror the content
of your proposal.

 the title should be long enough to be explicit but

not too long so that it is tedious.

 It should contain the key words – the important

words that indicate the subject.
Contents of a research proposal
b) Statement of the Problem
 is a clear and precise statement of the question or issue
that is to be investigated.
 There is need to give convincing reasons for deciding to
work in this area.
 You should advance adequate reasons for choosing the
topic.
 i.e. you should tell the reader why you feel the research
is worth the effort.
 Example: out of the shortcomings of previous work, to
further knowledge in the area, etc.
Contents of a research proposal
 You will be expected to show a clear link between the
previous work that has been done in your field of research
and the content of your proposal.

 This is the largest section of the proposal.

 It introduces the research by giving the background,
presenting the research problem and indicating how
and why this problem will be “solved.”
Contents of a research proposal
c) Objectives of the study:

 The objectives of a particular research project delineate

the intentions of the researchers and the nature and
purpose of the investigations.

 The objectives list down the specific activities to

performed.

 It is rather brief.
Contents of a research proposal
 Be careful to ensure that your objectives are precisely
written and will lead to observable outcomes
 Should be written as a statement regarding an action to
be undertaken.

 The range of possible objectives can be listed as:

 to describe
 to explain and evaluate
 to compare
 to correlate
 to act, intervene and change……..
Contents of a research proposal
d) Significance of the Study – this section justifies the need for the
study.

 It describes the type of knowledge expected to be obtained and

the intended purpose of its application.
 You should be able to justify the importance of your study in
terms of its implications or possible applications.
 Theoretical implications constitute new additions to existing
theories or form the basis for new theories.
 Practical implications are potential ramifications of this study
for practice.
 Basic research: inform future research
 Applied research: inform policy and planning
 Does your study increase knowledge, solve problems and
answer some thorny questions in the field?
Contents of a research proposal

 e) Scope and limitations of the study:

 The research is often confronted with a number of

constraints during the course of an investigation.
 These are often beyond his/her control.

 They may place restrictions on the conclusions of the

work or their applications in other situations.

 Ranging from physical, human, financial, administrative

policies to invalidated data gathering instruments, time
and sampling technique, etc.
Contents of a research proposal
 These limitations should be clearly and concisely stated
as they affect your study- remedies

 boundaries of the study should be made clear with

reference to
 the areas to which the conclusions will be confined
 the sampling procedures, the techniques of data
collection and analysis, etc.
Contents of a research proposal
f) Review of the Literature:
 Both conceptual and empirical literature need to be
reviewed.
 The researcher has to make it clear that his problem
has roots in the existing literature but it needs
further research and exploration.

 The review of literature is a valuable guide to defining

the problem, recognizing its significance, suggesting
promising data-gathering devices, appropriate study
design and sources of data.
Contents of a research proposal
g) Definition of terms and concepts:

 Technical terms or words and phrases need to be

defined operationally.

h) Basic assumptions - statements of ideas that are

accepted as true.
 They serve as the foundation upon which the
research study is based.
Contents of a research proposal
II) Methodology section

This will be the longest sections of the proposal.

 The methodology will explain how each specific

objective will be achieved.

 It will also justify your choice of method in the light

of those objectives.
Contents of a research proposal

 It shows how you are going to look for answers to the

research questions (including materials and methods to
be used).

 It will detail precisely how you intend to go about

achieving your research objectives.

 It must include enough details to demonstrate that you

are competent and the project is feasible.
 The proposed methods must be appropriate to the
type of research.
Contents of a research proposal

Procedures for collecting data – the details about the

sampling procedures and the data collecting tools are
described.

(i) Sampling – how the samples would be selected

from a large population need to be described.

(ii) Selecting the Sample

Contents of a research proposal

 How big should a sample be?

 The bigger the sample size the greater will be its precision.
 But for practical reasons, it is not feasible to select large
samples.
 A sample can be selected in two ways from a population
 through probability sampling, or
 through non-probability sampling.
Contents of a research proposal

 With probability samples each element has a known

probability of being included in the sample.

 Probability samples are those samples based on

 Simple random sampling
 Systematic sampling
 Stratified sampling
 Cluster sampling
Contents of a research proposal

 But, non-probability samples do not allow the researcher

to determine this probability.

 Non-probability samples are those based on

 Convenience sampling
 Judgment sampling
 Quota sampling

 Several of the methods of sampling procedures may be

used in combination.
Contents of a research proposal
 (ii) Tools (instruments) – which data gathering tools
such as observations, interviews, questionnaires, etc.
will be used.

 Will your research be based, for example, on a

questionnaire, interviews, examination of secondary
data or use a combination of data collection techniques?

 The proposal should explain the reasons for selecting a

particular tool or tools for collecting the data.
Contents of a research proposal
 Data Sources
 Involves primary and secondary data sources
 Primary data is collected directly from respondents
while secondary data is collected from
documented data sources.

 Sampling Techniques
 Describe the population from which the sample will
be drawn
 State the sample size and sample selection methods
Contents of a research proposal
 Data Collection Methods

 Give an outline of how research data will be collected

and administered

 The data collection instruments is/are identified,

defined and its/their relevance discussed.

 Sometimes pre testing of the instruments may be

necessary.
Contents of a research proposal
 In short, you should demonstrate to your reader that
you have thought carefully about all the issues
regarding your method and their relationship to your
research objectives.
 So, be sure to mention:
 Who your interview subjects are
 How you will interview them (if primary data)
 How the data were collected (if secondary data)

 You also need to include a statement about how you are

going to adhere to any ethical guidelines.
Contents of a research proposal

 Data Collection and Analysis

 There are several research techniques and a number of
data collection methods as well. For instance ..
 in the survey method-the data are collected by asking
the respondents to fill out a questionnaire.
 in the observation technique- the respondents are just
observed without their direct participation in the
research.

 Whatever the method used to collect the data, it is very

important that the data are collected without any errors.
Contents of a research proposal
Procedures for treating data (method of analysis)

 In this section, the researcher describes how he/she

organizes, analyses and interpret the data.

 The details of the statistical techniques and the

rationale for using such techniques should be
described in the research proposal.
Contents of a research proposal
 Data analysis
 Justify data analysis tools and methods you intend to
use

 Explain how you intend to analyze and interpret your

results

 The methods of data analysis chosen depends on the

type of research

 The methods can range from simple descriptive

analyses to complex multivariate analysis.
Contents of a research proposal
 It is necessary for you to demonstrate that you have
either the necessary skills to perform the analysis or can
learn the skills in an appropriate time, or you have access
to help.

 (i) Statistical inference models

 Regression analysis is a good analytical tool, providing

a method to test various hypotheses relating to the
classical economic theory.

 A range of regression models.

Contents of a research proposal
Mathematical programming models
 An example of a mathematical programming model is
the linear programming model.

 There are also non-linear and dynamic mathematical

programming models that address a range of
economic and policy analysis questions and
hypotheses.

 The central theme is to optimize an objective function

subject to a set of constraints.
Contents of a research proposal
Simulation models
 Simulation is the operation of an abstract prototype of a
real system designed to trace out dynamic interactions.
 Simulation models have acquired substantial appeal
among policy analysts because of their ability to
explore the consequences of a wide range of alternative
sets of policies, plans and even management strategies.
Contents of a research proposal
iii) Budgeting and Scheduling the Research -Research
costs money.
 This may be for travel, subsistence, help with data
analysis, or preparation of questionnaires.

 Resource considerations may be categorized as finance,

data access and equipment.
 A proposal should include a budget estimating the
funds required for travel, printing, purchase of
equipment, tools, books, etc.
Contents of a research proposal
 The budget is a list of items that will be required to
carry out the research and their approximate cost

 It would include all or some of the following items:

 Management time
 Data collection
 Data analysis cost – software and hardware
 Transport cost
 Respondent’s incentives

 Think through the expenses involved and ensure that

you can meet these expenses.
Contents of a research proposal
 Time Schedule: Research must be scheduled
appropriately.

 Researcher should prepare a realistic time schedule

for completing the study.

 Dividing a study into phases and assigning dates for

the completion of each phase helps the researcher to
use is time systematically.

 Use time scheduling tools such as the Gantt or Pert

Charts
Gantt chart for a research project
Contents of a research proposal
 Produce a schedule for your research using a Gantt
chart.
 provides a simple visual representation of the
activities that make up your research project, each
being plotted against a time line

 The time schedule enables the researcher to asses the

feasibility of conducting a study within the given time
limits
 It helps the researcher to stay on schedule.
Contents of a research proposal
IV. Citations and references
 Citations in the text
 Citations in a reference list
 Every academic document should have a list of all cited
references, including those in tables and figures captions.
 It is important that you correctly cite all consulted published
and unpublished documents that you refer to in the proposal.
 This allows the reader to know the sources of your
information.
Contents of a research proposal
 Be sure to include every work that was referred to in the
proposal

 Formats vary slightly by journals and publishers, etc.

 A common format:
 For a book: Smith, Adam (1776). An Inquiry into the
Nature and Causes of the Wealth of Nations. London:
Dent and Sons

 For an article: Coase, Ronald (1937). “The Nature of

the Firm.” Economica 4, 386-405.
Contents of a research proposal

Appendix - Appendices such as questionnaires, maps

sample data or mathematical derivations should be
included at the end.
 Supporting documentation and evidence-
 letter from owner of data, etc.
 permission from any necessary authorities
 Evidence of material support
 Evidence of researcher qualifications, etc.
Key attributes of a research design
 Reliability and Validity
 are central issues in all measurement.
 Both concern how to connect concrete measures to abstract
constructs.
 Reliability
 means dependability or consistency.
 How to Improve Reliability?
 clearly conceptualize constructs - avoid noise/distracting info.
 use a precise level of measurement –detail than specific (e.g.
Likert measurement scale - 2,3,5,7,10)
 use multiple indicators, and
 use pilot-tests.
Key attributes of a research design
 Reliability and Validity…
 Validity
 suggests truthfulness.
 refers to matching a construct, or conceptual definition,
with a specific measure.
 The quality of research designs can be defined in terms of four
key design attributes:
 internal validity,
 external validity,
 construct validity, and
 statistical conclusion validity.
Key attributes of a research design
 Validity …
Key attributes of a research design
 internal validity or causality
 examines whether the observed change in a DV is indeed
caused by a corresponding change in hypothesized IV, and
not by variables extraneous to the research context
(confounding variables)
 external validity or generalizability
 refers to whether the observed associations can be
generalized from the sample to the population
(population validity), or to other people, organizations,
contexts, or time (ecological validity).
Key attributes of a research design
 internal validity or causality
 examines whether the observed change in a DV is indeed
caused by a corresponding change in hypothesized IV, and
not by variables extraneous to the research context
(confounding variables)
 external validity or generalizability
 refers to whether the observed associations can be
generalized from the sample to the population
(population validity), or to other people, organizations,
contexts, or time (ecological validity).
Key attributes of a research design
 construct validity
 examines how well a given measurement scale is
measuring the theoretical construct that it is expected to
measure.
 statistical conclusion validity.
 examines the extent to which conclusions derived using a
statistical procedure is valid. For example, it examines
whether the right statistical method was used for
hypotheses testing, whether the variables used meet the
assumptions of that statistical test (such as sample size
or distributional requirements), and so forth.
Key attributes of a research design
 Construct validity
 examines how well a given measurement scale is
measuring the theoretical construct that it is expected to
measure.
 Face—in the judgment of others
 It is a judgment by the scientific community that the
indicator really measures the construct.
 On the face of it, do most people believe that the
definition and method of measurement fit?
 E.g. - few people would accept a measure of college
student math ability using a question that asked students: 2
+2=?
Key attributes of a research design
 Construct validity…
 Content—captures the entire meaning
 Measures should represent all ideas or areas in the
conceptual space.
 Content validity involves three steps.
 Specify fully the entire content in a construct’s
definition.
 Sample from all areas of the definition.
 Develop an indicator that taps all of the parts of the
definition.
 E.g. measure feminism (defn a person’s commitment to a set of
beliefs creating full equality between men and women in different
areas) asking only two questions: pay and household tasks leaving
out other items such as intellectual pursuits, politics, authority
relations, etc. – low content validity.
Key attributes of a research design
 Construct validity…
 Criterion—agrees with an external source
 uses some standard or criterion to indicate a construct
accurately.
 verify the validity of an indicator by comparing it with another
measure of the same construct that is widely accepted
 Concurrent—agrees with a preexisting measure
 E.g. association of a new test to measure
intelligence with existing IQ tests (yield similar results).
 Predictive—agrees with future behavior
 the Scholastic Assessment Test (SAT) that many U.S.
high school students take measures scholastic
aptitude—the ability of a student to perform in college.
Chapter III…

3.2.5 Literature review & Reference

citation
Literature review & Reference citation

 Once you have identified a research topic, you need to start

collecting and analysing the literature in order to identify a
specific research problem to investigate
 The literature is ‘all sources of published data on a
particular topic’
 A literature search is ‘a systemic process with a view to
identifying the existing body of knowledge on a particular
topic’ (Collis and Hussey, 2014, p. 76)
 It may be sufficient for undergraduates to refer to
textbooks, but Master’s and doctoral students must study
the original sources of knowledge
 Only search authoritative sources

81
Reviewing the literature

 ‘A literature review is a critical evaluation of the existing

body of knowledge on a topic, which guides the
research and demonstrates that the relevant literature
has been located and analysed’ (Collis and Hussey, 2014,
p. 87).
 It provides a context for your research question(s)
 In a deductive study you will identify a theoretical framework
(theories and models from the literature that explain how
things function and why events occur)
 The preliminary literature review you write for your
proposal will focus on the most influential previous
studies (the seminal studies)

82
Identifying a research problem and research
question(s)
 From the literature on your topic, choose a research
problem or issue that is interesting or important
 Look for gaps and deficiencies in the literature and then
formulate a research question you can investigate
 Most researchers highlight limitations of their work and
suggest areas for further research
 Consider replicating a study in a different sector/setting to
update/extend the findings
 Consider making a new analysis of existing data
 Adopt a systematic and methodical approach to your literature
search
 Allow approximately 20% of your research time for this important
stage in the research process

83
Writing your literature review
 Select only material that is relevant to the topic, industry,
methodology, etc.
 Identify themes and group the material
 Define key terms and draw out the important features
 Compare results and methods of previous studies
 Be critical and demonstrate relevance to your research
 Set the context for your study (a deductive approach suggests
you will identify a theoretical framework and hypotheses)
 Identify gaps or deficiencies in the literature that your study
will address
 Conclude with your research question(s)
 Acknowledge other people’s contribution to knowledge using
the Harvard system of referencing

84
Exercise 1 Potential sources of literature

 In the context of your research, what types of published

data will you be looking for and in what way do you
expect this literature to be useful?

85
Solution 1 Potential sources of literature

 Academic journal articles, research reports, conference

papers, etc.
 Main source of information on theory, previous studies,
methodologies and methods
 Dictionaries, encyclopaedias and specialist books
 Useful for definitions (always use an authoritative source),
background information and references to other sources
 Annual statistics and reports, newspapers, business
journals, internal documents/records of a business
 Useful for background information, identifying current issues,
potential source of secondary research data

86
Procedure for a systematic literature search

 Draw up a list of sources

 Eg Specific journal databases, subject-related websites,
bibliographic catalogues
 Define the scope of the research
 Eg sector, geography, period of time
 Determine keywords
 Include alternative spellings and synonyms
 Search each source, keeping a record of your progress
 Describe your methods in your methodology chapter
 Only collect literature that is relevant

87
Managing the process

 Start with most recent publications and work back

 Look at the references at the end of relevant publications to lead
you to previous studies
 If a publication is cited often, it is likely to be a seminal work

 Keep a list of the full references in alphabetical order

 File relevant material in the same order
 Your search is nearly over when you start to recognise the
references, but to continue throughout the project to keep
up to date

88
Importance of keeping records

 Highlight key points

 E.g. Research questions, characteristics of the sample/cases,
methods used, theoretical framework, contribution and
limitations, potential quotations

 Summarise key themes, findings, conclusions and

limitations in your own words
 Paraphrasing or changing the odd word is plagiarism

 Record any quotations accurately

 Reproduce the original spelling, punctuation and emphasis and
record the number of the page from which it was taken
89
Recording references

 You can set up your own system for recording your

references or use reference management software
 Eg Reference Manager, ProCite and RefWorks

 The Harvard system of referencing is one of the most

widely used referencing systems in business and
management research

90
Citations under the Harvard system

 A citation is ‘an acknowledgement in the text of the

original source from which information was obtained’
(Collis and Hussey, 2014, p. 84)
 Acknowledgement is made by citing the surname of the author(s)
and the date of the publication in brackets

 If the author’s words are quoted or you reproduce a table, chart or

figure, you must also include the page number from which it was
taken)

 If you are supporting your point with two or more citations in the
same brackets, order them chronologically, separated by a semi-
colon 91
Citing the original source – An example

Although Saunders, Lewis and Thornhill (2009) warn of the

associated penalties, some students ignore the fact that
universities treat plagiarism as academic misconduct.
Plagiarism has been referred to as a ‘slippery concept’
(Bryman and Bell, 2011, p. 116), but Collis and Hussey (2014, p.
92) define it as ‘the act of taking someone’s words, ideas or
other information and passing them off as your own because
you fail to acknowledge the original source’. They describe it
as a form of intellectual theft.

92
Using citations for emphasis

 To emphasize the information

 Access to data is a key factor in the success of a student’s
research project (Collis and Hussey, 2014).

 To emphasize the authority

 Collis and Hussey (2014) argue that access to data is a key factor
in the success of a student’s research project.

 ‘The availability of data is crucial to the successful outcome of

your research’ (Collis and Hussey, 2014, p. 100).

93
Importance of citations

 Citations are important because

 They provide evidence of your literature searching
and the range of your reading
 They help you support your arguments using the
authority of the source you have cited
 They help the reader to distinguish between your
work and the existing body of knowledge, thus
avoiding accusations of plagiarism

94
References under the Harvard system

 References are ‘a list containing bibliographic details of

the sources cited in the text’ (Collis and Hussey, 2014, p.
84).
 They are shown in alphabetical order by author’s surname at the
end of the document (do not use bullet points or numbering)

 We distinguish between a ‘bibliography’ and

‘references’ because a bibliography can be a catalogue
of publications, not a specific list of sources cited in the
text
95
Listing the references

References
Bryman, A. and Bell, E. (2011) Business Research Methods, 3rd
edn. Oxford: Oxford University Press.

Collis, J. and Hussey, R. (2014) Business Research, 4th edn.

Basingstoke: Palgrave Macmillan.

Saunders, M., Lewis, P. and Thornhill, A. (2009) Research

Methods for Business Students, 5th edn. Harlow: Pearson
Education.

96
Importance of references

 References are important because they

 Provide full bibliographic details that support the
citations
 Allow supervisors, examiners and other researchers
to locate the source of the works you have cited

97
END OF CH03 – NEXT CH04

Compiled by Andualem (2015/2023) 98

Introduction

 A research proposal is a document that sets out the

research design for a proposed study
 Before you can start writing it, you need to
 Identify the research problem or issue
 Determine the purpose of the research (must be feasible)
 Identify the main research question
 Choose the methodology and methods
 Determine the outcomes and set a timetable
 Acceptance of your research proposal is a major
milestone and forms a ‘contract’ with your supervisor

99
Exercise 1
Classifying your proposed study

1. Purpose of the study

 Exploratory, descriptive, analytical or predictive?
2. Process of the study
 Quantitative or qualitative?
3. Outcome of the study
 Applied or basic research?
4. Logic of the study
 Deductive or inductive?

100
Getting started
 Read the requirements for your course
 Note the date for submitting the proposal
 Draft a working title for your research
 Keep it short and simple (finalise it when you’ve finished writing
the proposal)
 For the proposal, use the future tense and reflect the
rhetorical assumptions of your paradigm
 Positivists use the passive voice (eg ‘Opinions will be collected
from ...’)
 Interpretivists use the personal voice (eg ‘I will collect opinions
from …’)

101
Indicative structure of a research proposal
% of report

Preliminary pages
Chapter 1. Introduction 15
Chapter 2. Preliminary review of the literature 40

Chapter 3. Methodology 40
Chapter 4. Outcomes and timetable 5
100
References

102
Chapter 1. Introduction

 This is an overview of your proposed study

 Explain the purpose of the study and the research
problem or issue it will address, defining key terms
where appropriate
 Describe the background to the study and explain
why it is important and/or of interest and to whom
 State the aims and objectives of the proposed study
 Briefly describe the structure of the remainder of the
proposal

103
Chapter 2. Preliminary review of the literature

 Your preliminary literature review should be an

evaluation of the main studies and other items
that are relevant to the research problem
 Cite the key authors and develop a conceptual
framework or theoretical framework by referring to
the concepts/ theories in the literature
 Students using grounded theory still need to provide
a context for their study
 Conclude by explaining where your research fits
into the gaps or deficiencies in the literature and
state your main research question(s)

104
Chapter 3. Methodology

 This is where you describe and justify your research

design
 Identify your paradigm
 Explain your choice of methodology and methods for selecting a
sample or cases, and for collecting and analysing your research
data – justify your choice by compare the strengths and
weaknesses of with alternative methods
 Explain the scope/delimitations of the research (eg the
particular group of people, organizations, industry, geographical
sector, period of time)
 Discuss any limitations and how you will address ethical issues
 Demonstrate that the study is feasible (eg you will have access
to data, skills, any funding necessary and sufficient time)

105
Ensuring a cohesive approach

 If you are an undergraduate and taught Master’s

student, it is unlikely that you will be expected to
discuss research paradigms in your proposal or your
dissertation
 All students need to take a cohesive approach when
designing the research
 The research problem should dictate the focus of your
preliminary literature review and this in turn should lead to your
research question(s)
 Your methodology should be chosen to enable you to
investigate your research question(s) and your methods should
be selected from those associated with your research paradigm

106
Examples of a cohesive research design

• Choose a methodology and methods that reflect your

paradigm and enable you to answer your research
questions
Research design Positivism Interpretivism

Methodology: Survey Case study

Sampling method: Stratified random sample Convenience sample

Method of data Self-completion questionnaire Semi-structured, face-

collection: or content analysis to-face interviews

Method of data Statistics to test hypotheses Thematic analysis of

analysis: interview transcripts

107
Chapter 4. Outcomes and timetable

 At the proposal stage you cannot describe your findings, so this

chapter will be brief, and focus on the expected contribution of
your study
 One way to do this is to refer to the purpose of the research and
what you intend to achieve
 Eg If the purpose is to investigate the impact of a new career-break
scheme in Firm A, your expected outcome is a description of the new
scheme and an analysis of the impact on the recruitment and retention
of staff
 You need to provide a timetable that takes account of the
constraint placed by the submission date
 Consider using a monthly Gantt chart showing the duration of each
(overlapping) stage in the process of the research

108
Example of a Gantt chart

Task Sep Oct Nov Dec Jan Feb Mar Apr

Search the literature

Design research, write proposal

Collect research data

Analyse research data

Write draft chapters for comment

Revise, proofread, print, submit

109
Approximate time for main stages of research

% of time
Stage

Choose a topic and search the literature 10

Review the literature and define the research problem 20

and research questions
Design the research and write the proposal 10
Collect the research data 20

Analyse and interpret the research data 20

Write the dissertation or thesis 20

100

110
 Exercise 2
Developing your proposal

 In pairs, help each other answer these questions

1. What is the purpose of your research?
2. What is your main research question?
3. What research data are you going to collect and from where?
4. How will you collect the data and how will you analyse it?
5. What is the working title for your proposed study?

 Do these choices suggest you are a positivist or an

interpretivist?
 The notes you make during this exercise will help you
develop your research proposal

111
Conclusions

 Your research proposal is a plan

 It cannot be written before you have studied research methods
and read the literature on your topic
 Don’t be too ambitious – the research must be feasible
 Your proposal must be well structured, clearly written
and fully referenced
 Discuss your proposal with your supervisor, friends and family –
they may ask an awkward question about something you have not
spotted
 Allow time to reflect and improve before submission

112
Research design

 Research question
 What are the factors that have a significant influence on the
directors’ decision to have a voluntary audit?

 Methodology
 Survey

 Method of data collection

 Postal questionnaire with one reminder

 Method of data analysis

 Descriptive and inferential statistics

113
Research design

 Sampling method
 Sampling frame
 AABE database, which contains data from the annual report and
accounts of 2.8m companies in Ethiopia
 Population
 2,633 companies which had registered accounts for 2002 and did not
exceed Birr4.8m turnover, Birr2.4m balance sheet total and 50
employees (proposed higher thresholds)
 Sample
 790 companies = 30% response rate (high rate due to permission to use
government logo)

114
 ACFN 3111-
Research Methods in Accounting & Finance

Chapter V
Sampling Design

1
The Concept of Sampling

2
Content of the lecture
 Sampling Design
 Census and sample survey
 The Need for sampling
 Steps in sampling Design
 Criteria for selecting a sampling procedures
 Types of sample Design
 Probability sampling Design
 Non probability sampling Design

3
 What is Sampling?
 Some studies involve only small number of people and thus
all of them can be included.
 But when the population is large, it is usually not possible
to undertake a census.

 Therefore, we will be forced to work with a smaller, more

manageable number of people to take part in their research.

 The selection of some cases from a larger group of potential

cases is called sampling.
 It aims at obtaining consistent and unbiased estimates of
the population parameters.

4
What is Sampling?
 The best sample is a representative sample, or is a model
of the population.

 A sample is a portion of a larger whole.

 Of course, no sample is perfect, as it usually has some

degree of bias or error.
 But, if this sample is chosen carefully using the correct
procedure, it is possible to generalize the results to the
whole of the population.

5
What is Sampling?

6
 Reasons for Sampling
 Reduced cost: since data are secured from a small fraction of
the population, cost will be reduced.

 Greater speed: for the same reasons as above, sample surveys

can be reported faster than that of census.

 Greater scope and accuracy: since samples deal with fewer

units than complete census, it is possible to attain greater
accuracy.
 highly trained personnel, careful supervision, specialized
equipment, etc.

7
 Reasons for Sampling
 Feasibility: some investigations could only be addressed by
sample surveys: for example

 when studying infinite populations,

 laboratory testing of one’s blood,

 when conducting quality assurance tests (especially

when the test involves the destruction of the product),
etc.

8
 Reasons for Sampling
 Representativeness
 There are two principles in representativeness:
 The need to avoid bias and the need to gain maximum
precision.

 Bias can arise for instance:

 if the selection of the sample is done by some non-
random method

 if the sampling frame (i.e. list, index, population record)

does not adequately cover the target population.

9
 Reasons for Sampling
 Representativeness is important particularly if you want to
make generalization about the population.

 So, for Quantitative Studies:

 Samples should be drawn in such a way that it is
representative of the population.

 For Qualitative Studies:

 representativeness of the sample is NOT a primary concern.
 In qualitative studies we select study units which give you
the richest possible information.
 you go for INFORMATION-RICH cases!

10
Steps in Sampling Design
 The sampling Process
 Representative samples are generally obtained by
following a set of well-defined procedures:
1. Defining the target population
2. Choosing the sampling frame
3. Selecting the sampling method
4. Determining the sample size
5. Implementing the sampling plan

11
 Steps in Sampling Design
a) Identifying the relevant population:
 Determine the relevant population from which the
sample is going to be drawn.
 Example: if the study concerns income, then the definition
of the population as individuals or households can make a
difference.

b) Determining the method of sampling:

 Whether a probability sampling procedure or a non-
probability sampling procedure has to be used.

12
 Steps in Sampling Design
c) Securing a sampling frame:
 A list of elements from which the sample is actually
drawn is important and necessary.
d) Identifying parameters of interest:
 what specific population characteristics (variables and
attributes) may be of interest.

e) Determining the sample size

 The determination of the sample size deepens on several
factors.
 Obviously, the bigger, the better

13
 Determining the sample size
 One of the questions researchers tend to ask is ‘how many
people should I speak to?’
 This is not an easy question.

 The decision on the sample size hinges on how large an error

one is willing to tolerate in estimating population parameters.

 The issue sample size is a very important thing in

quantitative research.

14
 Determining the sample size
 This obviously depends on the type of research.
 But in the final decision, statistical precision must be
balanced against time, cost, and other practical
considerations.

 Research designs with too small of a sample size are unethical

because they waste resources since they can only provide
anecdotal evidence.

 If the sample size is too small, it will not be possible to

make valid generalizations.

15
 Determining the sample size
 Research studies that use too large sample i.e., larger than
needed also are unethical because
 time and financial resources wasted,

 human subjects undergo experimental procedures that

could be distressful, painful.

 So, it is unethical to start work on a research project, which

burdens research subjects and consumes resources.

 The sample size will also depend on what you want to do with
your results.

16
 Determining the sample size
 The general rule in quantitative research is that the larger
the sample the better it is.

 However, you have to remember that you are probably

restricted by time and money

 Therefore, you have to make sure that you construct a

sample which will be manageable.

17
Determining the sample size
 Also, you have to account for non-responses and you may
need to choose a larger sample size to overcome this
problem.

 There will be some non-responders – people who do not

agree to take part in your research – and some whom
you may not be able to contact.

 select at least 10% more than you hope to gain

responses from.

18
 Determining the sample size
In general, the sample size depends on several factors.
i) Degree of homogeneity: The size of the population variance is
the most important parameter.
 The greater the dispersion in the population the larger the
sample must be to provide a given estimation precession.

ii) Degree of confidence required: you must determine how much

precision you need.
 Precision is measured in terms of
 An interval range.
 The degree of confidence
 i.e. the sample size is determined by the level accuracy
required in the study.
19
 Determining the sample size
iii) Number of sub groups to be studied:
 When the researcher is interested in making estimates
concerning various subgroups of the population then the
sample must be large enough for each of these subgroups
to meet the desired quality level.

iv) Cost: All studies have some budgetary constraint and hence
cost dictates the size of the sample.

 The level of precision obviously increases with increase in the

size of the sample thus researchers are usually challenged by
the interest of balancing accuracy and cost.

20
 Determining the sample size
v) Practicality: Of course the sample size you select must make
sense.
 Therefore the sample size is usually a compromise between
what is DESIRABLE and what is FEASIBLE.

 For researchers with limited time and resources, the sample

size is more likely to be influenced by the resources available
and the ease of access to the sampled cases.

 But the limitations of a smaller sample need to be

reported in the research report or dissertation.

21
 Determining the sample size
VI) Other Considerations:
 (i)Prior information: If our process has been studied before,
we can use that prior information to determine our sample
size.
 This can be done by using prior mean and variance
estimates and by stratifying the population to reduce
variation within groups.

 Note: If you know the mean and variance statistical methods

can be used to determine the size of the sample required for
a given level of accuracy.

22
 Determining the sample size
 (VII) Rule of Thumb: is based on past experience with samples
that have met the requirements of the statistical methods.
 For small populations (under 1000 a large sampling ratio
(about 30%). Hence, a sample size of about 300 is required.

 For moderately large population (10,000), a smaller

sampling ratio (about 10%) is needed – a sample size
around 1,000.
 To sample from very large population (over 10 million),
one can achieve accuracy using tiny sampling ratios
(.025%) or samples of about 2,500.

23
 Determining the sample size
 (VIII) Using Cochran’s Formula: You need to determine a few
things about the sample you need.

 Margin of Error (Confidence Interval) — No sample will be

perfect, so you need to decide how much error to allow.
 The confidence interval determines how much higher or
lower than the population mean you are willing to let your
sample mean fall.

 It will look something like this: “68% of voters said yes to

proposition Z, with a margin of error of +/- 5%.”

24
 Determining the sample size
 Confidence Level — How confident do you want to be that the
actual mean falls within your confidence interval?
 The most common confidence intervals are 90% confident,
95% confident, and 99% confident.

 Standard of Deviation — How much variance do you expect in

your responses?

 The safe decision is to use 0.5 – this is the most commonly

used number and ensures that your sample will be large
enough.

25
 Determining the sample size
 Cochran (1963) has developed the following formula to
determined sample size - infinite population when we are to
estimate the proportion in the universe.

 where n represents sample size, Z is z-score which is

confidence level of 95%, p represents standard deviation
which commonly takes a value of 0.5, q= 1-p, e represents the
level of precision (margin of error commonly used is +/- 5%
with confidence interval of 95%).
 for finite population:……………….
26
Determining the sample size
Example 1: What should be the size of the sample if a simple random
sample from a population of 4000 items is to be drawn to estimate the
per cent defective within 2 per cent of the true value with 95.5 per
cent
probability? What would be the size of the sample if the population is
assumed to be infinite in the given case?
Solution: In the given question we have the following:
N = 4000;
e = .02 (since the estimate should be within 2% of true value);
z = 2.005 (as per table of area under normal curve for the given
confidence level of 95.5%).
As we have not been given the p value being the proportion of
defectives in the universe, let us assume it to be p = .02 (This may be
on the basis of our experience or on the basis of past data or may be
the result of a pilot study). 27
Determining the sample size

28
Determining the sample size
Example 2 Suppose a certain hotel management is interested in
determining the percentage of the hotel’s guests who stay for more
than 3 days. The reservation manager wants to be 95 per cent
confident that the percentage has been estimated to be within ± 3%
of the true value. What is the most conservative sample size needed
for this problem?
Solution: We have been given the following: Population is infinite;
e = .03 (since the estimate should be within 3% of the true value);
z = 1.96 (as per table of area under normal curve for the given
confidence level of 95%). As we want the most conservative sample
size we shall take the value of p = .5 and q = .5. Using all this
information, we can determine the sample size for the given problem
as under:

29
 Determining the sample size
Sample Size in Qualitative Studies
 Sample size is not big issue in qualitative research since the
emphasis is obtaining new information to have deep
understanding of a phenomenon.

 i.e., no fixed rules for sample size in qualitative research.

 The sample size depends on WHAT you try to find out, and
from what different informants or perspectives you try to
find that out.

 the sample size is therefore estimated, but not

determined.

30
Types of sampling

31
Probability and non-probability sampling
 We can arrange the different approaches to the sampling
process in a spectrum.

 At one end of the spectrum are the sampling approaches

that are based on statistical theory.

 They aim to produce a sample that can be highly

representative of the whole population

 These are called probability samples.

32
Probability and non-probability sampling
 At the other end of the spectrum are approaches to
sampling that are concerned with selecting cases that will
enable the researcher to explore the research questions in
depth,

 These are called purposive or non probability samples

33
 Probability sampling
 Probability sampling is based on the concept of random
selection that assures that each population element is given
a known non zero chance of being selected.

 i.e., a sample drawn in such a way that the probability of being

chosen is known – for example, a random sample.

 A randomization process is used in order to reduce or

eliminate sampling bias so that the sample is
representative of the population from which it is drawn.

 In other words, random selection minimizes human

bias

34
 Probability sampling
 Probability sampling requires a sampling frame (a listing of
all study units).

 Only probability sampling provides a statistical basis for

saying that a sample is representative of the target
population.

 And a sample will be representative of the population from

which it is drawn, if all members of the population have an
equal chance of being included in the sample.

35
 Probability sampling
 In summary:
 probability samples are more representative than any
other type of sample.
 sampling errors can be calculated only for probability
samples.
 probability samples rely on random process, i.e. the
selection process operates in a truly random method.
 since each element has an equal chance or probability of
being selected it is possible to get consistent and unbiased
estimate of the population parameter.

36
 Probability sampling
 Several types of probability sampling methods could be
identified:
 Simple Random Sampling Technique
 Systematic sampling Technique
 Stratified Sampling Technique
 Cluster Sampling Technique.
 Hybrid Sampling

37
 Probability sampling
1. Simple Random Sampling (SRS): each person in a population
has the same chance of being included in a sample as every
other person.
 each element of the population has an equal chance of being
selected into the sample.

 This is the simplest and easiest method of probability

sampling.
 It assumes that an accurate sampling frame exists.

 Selection could be done either by using table of random

numbers or by the lottery method.
38
 Probability sampling
 E.g., simple random sampling for household surveys
 Population = all households in the country
 Sampling frame = the list of all households (20 million in
Ethiopia?)
 Sample size = say we have resources to cover only 20,000
households
 Sampling fraction 20,000/20,000,000 or 0.1%
 Select randomly 20,000 households from the long list of
20,000,000 households

39
 Probability sampling
 Merits of SRS
 No investigator bias or discretion
 Help us to obtain a more representative sample
 Can produce better estimates for the population
 Limitations
 It needs up-to date list of the population units
 Units selected might be scattered geographically, hence,
high cost of data collection

40
 Probability sampling
2. Systematic Sampling Technique
 In systematic sampling individuals are chosen at regular
intervals (for example every kth) from the sampling frame.

 The first item is selected randomly and then the

remaining units will automatically be selected with some
predetermined pattern.

 A sampling interval (the standard distance between the

elements selected in the sample) identified.

 Simplicity and flexibility are its major advantages.

41
 Probability sampling
 Steps to draw a systematic sample:
 Calculate K (the sampling interval).
 Select a number between 1 and K at random, say that
number is r.
 Then this means we select the rth element at random.
 Then the rth, (r+K) th, (r+2K) th, …, [r+(n-1)K] th elements of
the population will be selected in our sample.

42
 Probability sampling
 E.g., a systematic sample is to be selected from 1200
students of a school.
 The sample size to be selected is 100.
 The sampling fraction is: 100/1200= sample size/study
population = 1/12
 The sampling interval is therefore 12.
 The first student in the sample is chosen randomly, for
example by blindly picking one out of twelve pieces of paper,
numbered 1 to 12.
 If number 6 is picked - every twelfth student will be
included –i.e. 6, 18, 30, 42, etc.

43
 Probability sampling
3. Stratified Sampling
 Useful when we have heterogeneous populations.

 One disadvantage of the SRS is that small groups in which the

researcher is interested may not appear in the sample
 Stratified sampling divides a population into the
appropriate strata and a simple random sample taken
using either SRS or SS techniques from each stratum.

 The elements in a stratum are supposed to be homogeneous

with respect to the given characteristics.

44
45
 Probability sampling
The reasons for stratifying
1. To increase a sample’s statistical efficiency (smaller
standard errors-less variation).
2. To provide adequate data for analyzing the various
subpopulation.
3. To enable different research methods and procedures to
be used in different strata.
4. The absence or poor quality of a sampling frame makes it
necessary to first select a sample of geographical units,
and then to construct a sampling frame only within those
selected units.

46
 Probability sampling
 multiple stage stratified random sampling could also be
considered.
 E.g., in the household survey we may be interested to have
sufficient number of households from each region of
Ethiopia;
 So stratify by region!

How to Stratify
 Three major decisions must be made in order to stratify
the given population into some mutually exclusive groups.

47
 Probability sampling
 (1) What stratification base to use: stratification would be
based on the principal variable under study such as income,
age, education, sex, location, religion, etc.

 (2) How many strata to use: there is no precise answer as to

how many strata to use.
 The more strata the closer one would be to come to
maximizing inter-strata differences and minimizing intra-
strata variances.

48
 Probability sampling
(3) What strata sample size to draw: different approaches could
be used:
 One could adopt a proportionate sampling procedure.

 If the number of units selected from the different

strata are proportional to the total number of units of
the strata then we have proportionate sampling.

 Or non-proportional sampling where the number of

items studied in each stratum is disproportionate to
the respective proportion of the stratum in the
population.

49
 Probability sampling
4. Cluster Sampling:
 It may be difficult or impossible to take a simple random
sample because a complete sampling frame does not exist, or
 Due to logistical difficulties
 E.G: interviewing people who are scattered over a
large area may be too time-consuming.
 The selection of groups of study units (clusters) instead of the
selection of study units individually is called CLUSTER
SAMPLING.
 It is cost effective (High economic efficiency)

 Similar to stratified sampling- you need to divide the

population into discrete groups.
50
 Probability sampling
 For instance, if the total area of interest is a big one it can be
divided into a number of smaller non –overlapping areas
(clusters) and some of the clusters are selected randomly.

 Clusters are often geographic units (e.g., districts,

villages) or organizational units (e.g., clinics, etc.).

 The primary sampling unit is not units of the population but

groups within the population (clusters)

51
 Probability sampling

 E.g., sampling for household survey in Addis Ababa

 Probably no complete sampling frame and costly to cover
through simple random sampling Procedures

 Randomly select sub-cities (clusters)

 Randomly select kebeles from selected sub-cities

(clusters)

 Then randomly select households from the selected

kebeles

52
 Non-probability sampling
Non-Probability Sampling: selection is non random i.e.,
sampling units/elements have unequal chance of being
selected

 Non-probability samples are chosen based on judgment

regarding the characteristics of the target population and
the needs of the survey.

 Sometimes a probability sample is infeasible.

 Example: If we want to conduct a lengthy experiment
using human subjects we use whoever is willing to
participate.
 E.g. a study of drug users (hearsay, criminal records)53
 Non-probability sampling
 Three conditions to use non-probability sampling.
 First, if there is no desire to generalize to a population
parameter.

 Secondly, because of cost and time requirements.

 probability sampling could be prohibitively expensive
since it requires more planning and repeated callbacks.

 Thirdly, probability sampling may break down in its

applications.
 The total population may not be available.

54
 Non-probability sampling
(1) Convenience or accidental sampling: The method selects
anyone who is convenient.
 Units that are convenient for the investigator are selected
(e.g. volunteers)
 It can produce highly un-representative samples.

 Such samples are cheap, however, biased and full of

systematic errors.
 E.G: the person on the street interview conducted by
television programs.
 Drop by the cafeteria and ask questions of whoever is there.

55
 Non-probability sampling
(2) Quota Sampling: subgroups are identified and a specified
number of individuals from each group are included in the
research – based on certain criteria.

 Identify categories of people (e.g., male, female) then

decides how many to get from each category.
 Example: In a school, find 10 elementary teachers, 10
middle school and 10 high school teachers.
 is used in opinion pollsters, marketing research and
other similar research areas.

 No randomization – difficult to know the sampling error.

56
 Non-probability sampling
(3) Purposive or Judgment sampling
 When we select a limited number of informants,
strategically so that their in-depth information will give
optimal insight into an issue is known as purposeful
sampling.

 It uses the judgment of the expert in selecting cases.

 participants are selected because of some desirable
characteristics, like expertise in the area.

 Could be useful when used by skilled investigator

57
 Non-probability sampling
(4) Snowball (Network) Sampling – chain sampling
 This is a method for identifying and selecting the cases in a
network.
 You start with one or two information-rich key
informants and ask them if they know persons who
know a lot about your topic of interest.
 Contact the first few and ask them for names of others, and so on.

 Useful when there is no sampling frame

 E.g., Becker’s (1963) study of marijuana users
 Illegal migrants, sex workers, drug users, etc.

58
 Problems in Sampling

Sampling errors occur randomly and are equally likely to be in either direction.
The magnitude of the sampling error depends upon the nature of the universe;
the more homogeneous the universe, the smaller the sampling error. Sampling
error is inversely related to the size of the sample i.e., sampling error decreases
as the sample size increases and vice-versa.
59
 Problems in Sampling
 Survey errors: The discrepancy between statements from
survey estimates and the reality (the true value) is called
survey errors.

 There are two types of survey errors.

 sampling errors and non-sampling errors.
 and survey error is the sum of the two.

60
 Problems in Sampling
 Sampling errors are errors which are attributable to sampling,
and which therefore, are not present in information gathered
in a census.
 It is not a mistake
 Can be controlled by well developed sampling theory

 This error arises because it is unlikely that one will end up with a
truly representative sample, even when probability sampling is
employed

 Sampling errors can be calculated only for probability

samples.

61
 Problems in Sampling
 Sampling error is related to confidence intervals.

 A narrower confidence interval means more precise

estimates of the population for a given level of confidence.

 The confidence interval for the true population mean is

given by: 
Mean z
n
 The sampling error is given by:

z

n

62
 Problems in Sampling
 Non-sampling error: Such errors are present whether it is
sampling or census survey that we are dealing with.
 these include all errors apart from sampling error and are
mostly mistakes by one party or another.

Non-Sampling Error includes:

 Non-coverage error
 Wrong population is being sampled
 Non response error
 Instrument error
 Interviewer’s error

63
 Problems in Sampling
Non-Coverage sampling error: This refers to sample frame
defect.
 Omission of part of the target population (e.g., soldiers,
students living on campus, people in hospitals, prisoners,
households without a telephone in telephone surveys, etc.)
.

The wrong population is sampled

 Researchers must always be sure that the group being
sampled is drawn from the population they want to
generalize about or the intended population.

64
 Problems in Sampling
Non response error – Common in self-administered surveys
 This error occurs when you are not able to find those
whom you were supposed to study.

 Some people refuse to be interviewed because they are ill,

are too busy, or simply do not trust the interviewer.
 When one is forced to interview substitutes, an unknown
bias is introduced.

65
 Problems in Sampling
Instrument error
 The instrument in sampling survey is the device in which
we collect data- usually a questionnaire.
 When a question is badly asked or worded, the resulting
error is called instrument error.

 Example: leading questions or carelessly worded

questions may be misinterpreted by some researchers.

66
 Problems in Sampling
Interviewer Error :
 Enumerators can distort the results of a survey by in-
appropriate suggestions, word emphasis, tone of voice and
question rephrasing.
 Cheating by enumerators -with only limited training and
under little direct supervision.
 Perceived social distance between enumerator and
respondent also has a distorting effect.

 E.G: questions about sexual behavior might be

differently answered depending on the gender of the
interviewer.
67
Characteristics of a Good Sample Design: Summary

 Sample design must result in a truly representative sample.

 Sample design must be such which results in a small
sampling error.
 Sample design must be viable in the context of funds
available for the research study.
 Sample design must be such so that systematic bias can be
controlled in a better way.
 Sample should be such that the results of the sample study
can be applied, in general, for the universe with a
reasonable level of confidence.

68
The Concept of Sampling

69
 ACFN 3111-
Research Methods in Accounting & Finance

Chapter V
The Sources and Collection of Data
Content of the Lecture

1. Introduction
2. Data Collection methods
 Types and sources of Data
 Methods of primary Data collection
 Methods of secondary Data collection
3. Data management issues
4. Sources and Techniques of Data Collection
5. Questionnaire Design
Introduction
 Data are the foundations of research.

 The quality of any investigation heavily depends on the

quality of information or data used.
 So, proper data collection, retention, and sharing are
vital to the research enterprise.

 What is Data?
 Data refers to any group of facts, measurements, or
observations used to make inference about the problem of
investigation.
Introduction
 It can range from material created in a laboratory, to
information obtained in economic research, such as a
filled-out questionnaire, video and audio recordings, or
photographs, etc.

 We need to design strategies that would enable us to

create meaningful and unbiased data,
 that will not waste resources, and
 that will appropriately protect human and animal
subjects.
Introduction
 When selecting data we need to be clear on:
 The data type (e.g., nominal, ordinal, interval or
ratio measures).
 Samples ("frames") and sample size, instruments.
 Methodologies for collecting data, etc.

 And, to ensure high quality output, data gathering

should be well planned.
Introduction
 Hence, we need to plan and define properly:
 The objective of the data collection exercise
 The kind of data (information) to be collected
 The source of the data
 The methods to be used to collect data

 This helps us to determine the statistical techniques to be

employed.
 It also helps us to avoid gathering of irrelevant
information.
Data Collection Methods
 Data collection is the process of gathering and
measuring information on the variables of interest.

 The data source could be:

 an area from where we can collect the data (i.e.
geographic location),
 persons to be interviewed,
 An entity or organization,
 discussions to be observed, etc.).
Data Collection Methods
 Although data collection methods may vary by discipline
and data types, the emphasis on ensuring accurate
collection remains the same.

 Some of the consequences from improperly collected

data may include:
 Inability to repeat and validate the study.
 Distorted and inaccurate findings.
 Wasted resources.
 Misleading other researchers.
 Harm to human participants and animal subjects.
Data Collection Methods
 More importantly, poor data collection may cause harm
to society when the results of the flawed research are
used to support public policy recommendations.
Data management issues
 Storage and Protection
 Data must be stored securely both during a research
project and after it ends.

 Risks like fire, water or other environmental damage,

or common technical failures like hard disk crashes,
must be considered.

 So, make backup copies of the data periodically

and store the copies in a secure location.
Data management issues
 Confidentiality
 refers to limiting information access and disclosure to
authorized users- preventing access by or disclosures
to unauthorized persons.

 So you need to decide

 who can handle which portion of data,
 at what point during the project,
 for what purpose, and so on
Data management issues
 Integrity
 Integrity refers to the trustworthiness of the
information.

 Researchers need to have sufficient skills to ensure the

integrity of their data collection efforts.
 For instance, data collection requires a rigorous and
detailed recruitment and training plan for data
collectors.

 So, data should not be modified inappropriately,

whether accidentally or deliberately.
Sources and Techniques of Data collection
 Sources of data can be grouped into primary and
secondary sources of data

Secondary Sources of data

 Secondary sources are those, which have been collected
by other individuals or agencies.

 i.e. refers to already existing information which have

previously been collected and reported by some
individual or organization for their own purposes.
Sources and Techniques of Data collection

 As much as possible secondary data should always be

considered first, if available.

 WHY REINVENT THE WHEEL IF THE DATA ALREADY

EXISTS!
Sources and Techniques of Data Collection
 But, when dealing with secondary data you should ask:

 Is the owner of the data making them available to

you?
 Is it free of charge? If not, how will you pay?
 Are the data in a format that you can work with?
etc.

 A description of the sampling technique, i.e., how the

sample was collected is also necessary, etc.
Sources and Techniques of Data Collection
Sources of Secondary Data
 Secondary data may be acquired from various sources:

 Documents (reports of various kinds, books,

periodicals, reference books (encyclopedia),
university publications (thesis, dissertations, etc.),
policy documents, statistical compilations,
proceedings, personal documents (historical
documents, Data archives, etc.
 The Internet
Sources and Techniques of Data Collection
Advantages of Secondary data
 Can be found more quickly and cheaply.
 Most researches on past events or distant places have
to rely on secondary data sources.

Limitations
 Authenticity:
 genuine?
 credible?
 representative?
Sources and techniques of Data Collection
 Completeness???
 The information often does not meet one’s specific
needs.
 Definitions might differ, units of measurements
may be different and different time periods may
be involved.

 Data could also be out of date.

Sources and Techniques of Data Collection
Primary Sources of Data
 These are data collected by the investigator (immediate
user) for the 1st time.

 Two approaches to primary data collection:

 the qualitative approach and

 the quantitative approach
Sources and techniques of Data Collection
Qualitative data collection approaches
 Qualitative data can be acquired from:
 case studies,
 Participant Observation
 Rapid appraisal methods,
 focus group discussions and
 key informant interviews, etc.

i) Case studies: involves a detailed investigation of a

particular case.
Sources and techniques of Data Collection
 (ii) Participant Observation: this is when a researcher
attempts to observe in some way.

 It can be a good way of getting below the surface

information and help to reveal complex social processes.
 The researcher can play an overt or covert role.
 Example: the observation of consumer behaviour in
supermarkets.
Sources and Techniques of Data Collection
iii) Participatory Rapid Appraisal (PRA)
 PRA is a systematic expert observation usually by a
multidisciplinary team.

 The PRA method:

 takes only a short time to complete,
 tends to be relatively cheap, and
 make use of more 'informal' data collection
procedures.
Sources and Techniques of Data Collection
iv) Focus group discussions
 A FGD is a group discussion guided by a facilitator, during
which group members talk freely.

 The researcher creates a relaxed atmosphere and records in

some way what is being said (e.g. by use of a tape-recorder,
video, note-taker, etc.).
 Sources and Techniques of Data Collection
 Mostly used to gather opinions, from a selected group of
people on a particular and pre-determined topic, e.g.
consumer topic; political topic etc.

 About 10 people would be engaged in a discussion on the

topic in an informal setting.

 The researcher encourages free discussion, but is ready to

intervene if necessary to resolve group problems.
 The group of individuals are expected to have experience
or opinion on the topic.
Sources and Techniques of Data Collection
 Its purpose is to obtain in-depth information on concepts,
perceptions and ideas of a group.

 Focus groups can be a useful way of finding out what

the main issues and concerns of any group are.

 It is more than a question-answer interaction.

 group members discuss the topic and interact among
themselves with guidance from the facilitator.
Sources and Techniques of Data Collection
Why use focus groups?
 The main purpose of a focus group research is to draw upon
group’s attitudes, feelings, beliefs, experiences and
reactions.

 attitudes, feelings and beliefs may likely be revealed via

interaction in social gatherings.

 Compared to individual interviews, which aim to obtain

individual attitudes, beliefs and feelings, focus groups elicit
a multiplicity of views.
Sources and Techniques of Data Collection
Strengths and weakness of FGDs

 It provides valuable information in a short period of time

and at relatively low cost if the groups have been well
chosen, in terms of composition and number.

 But, their use as a research tool is limited when it

comes to measuring the results objectively.
Sources and Techniques of Data Collection
 FGD should not be used for quantitative purposes, such
as the testing of hypotheses or the generalization of
findings for larger areas

 Which require more elaborate surveys.

 In addition, the logistical complexity of focus group

research is frequently cited as a deterrent.
 Sources and Techniques of Data Collection
 In addition, it may be risky to use FGDs as a single tool
because in:

 group discussions, people tend to center their opinions

on the most common ones.
 In case of very sensitive topics group members may
hesitate to express their feelings and experiences freely.

 Therefore, it is advisable to combine FGDs with other

methods (in-depth interviews).
Sources and Techniques of Data Collection
v)Key Informant Interview
 An interviewing process with opinion leaders such as
elected officials, government officials, and business
leaders, etc.

 This technique is particularly useful for:

 Raising community awareness about socio-economic
issues
 Learning minority viewpoints
 Gaining a deeper understanding of opinions and
perceptions, etc.
 Sources and Techniques of Data Collection
v)Triangulation
 refers to the use of more than one approach to the
investigation of a research question in order to enhance
confidence in the findings.

 Why use triangulation

 The purpose of triangulation is to obtain confirmation
of findings through convergence of different
perspectives.

 By combining multiple methods, and empirical

materials, researchers can overcome the weakness or
biases and problems that are associated with a single
method.
Sources and Techniques of Data collection
Taxonomy of triangulation
1. Data triangulation: Involves gathering data at different
times and situations, from different subjects using
different sampling techniques.
 Example: Using time series data.

2. Investigator triangulation: involves using more than one

researcher to collect and analyze the data.
 Example: organizing scientific experiments to replicate
each other’s work.
Sources and Techniques of Data Collection
3. Theoretical triangulation: making explicit references to more
than one theoretical tradition to analyze data.
4. Methodological triangulation: combination of different
research methods or different varieties of the same method.

 Within method triangulation involves making use of

different varieties of the same method.
 Example: making use of alternative econometric
estimators
 Between method triangulation involves making use of
different methods.
 Example: Using ‘quantitative’ and ‘qualitative’ methods.
Sources and Techniques of Data Collection
Quantitative Primary Data Collection Methods

 This method involves the collection of quantified data that

can be subjected to statistical treatment.

 Primary data may be collected through:

 Direct personal observation method, or
 Survey or questioning other persons,
 From a literature search, or
 by combining them.
Sources and Techniques of Data Collection
The Observation Method
 Observation includes all kinds of monitoring behavioral and
non-behavioral activities.

 The investigator will make the observation personally

by being guided by some outlined questions.

 i.e. the investigator does not make inquiries but notes down
the observation himself/herself
 (e.g. evaluation of the class room teaching-learning
process by investigators).
Sources and Techniques of Data Collection
 Advantages
 It is less demanding and has less bias.

 One can collect data at the time it occurs and need

not depend on reports by others.

 with this method one can capture the whole event as

it occurs.
Sources and techniques of Data Collection
Weakness of the Method
 The observer normally must be at the scene of the event
when it takes place.
 But it is often difficult or impossible to predict when
and where an event might occur.

 It is also a slow and expensive process.

 Its most reliable results are restricted to data that can be
determined by an open or surface indicator.
 Difficult to learn about past events and to gather
information on intensions, attitudes, opinions and
preferences.
Sources and Techniques of Data Collection
The Survey Method: the most commonly used method in
economics.
 To survey is to ask people questions in a questionnaire.

 In a survey, a trained interviewer asks the questions and

records responses on a specially designed form.

 The form contains all the questions which would extract

information from a respondent.
Sources and Techniques of Data Collection
Strength of the Survey Method
 It is a versatile or flexible method - capable of many
different uses.

 More efficient and economical than observations -

surveying using telephone or mail is less expensive.

 If planned correctly, a survey makes it easy for people to

participate.

 Same questions can be asked in several ways to double-

check for accuracy and consistency.
Sources and Techniques of Data Collection
Weakness of the Method
 The quality of information depends heavily on the ability
and willingness of the respondents.

 A respondent may interpret questions or concept

differently from what was intended by the researcher.

 A respondent may deliberately mislead the researcher

by giving false information.
Sources and Techniques of Data Collection
 People surveyed may not answer all questions.

 Low response rate is common.

 People can and do lie.

 Can’t test knowledge with mailed surveys.

Main modes of administration of a survey
Sources and Techniques of Data Collection
 Surveys could be carried out through:
 face to face personal interview
 telephone interview
 mail or e-mail, or by a combination.

 a) Personal Face to face Interview

 It is a two-way conversion where one person
interviews another person.

 interviewers ask the questions and mark the

answers, either on paper or by typing them onto a
computer.
 Sources and Techniques of Data Collection
 Advantages of face to face Interview:
 enhances respondent participation,
 guiding the questioning process,
 answering the respondent’s questions,
 clarifying the meaning of questions and
responses,
 probing, clarifying and motivating the
respondent to complete the questionnaire,
 making sure that the questionnaire is answered in the
pre-defined sequence and by the respondent himself or
herself.
 In addition, visual aids are possible in face-to-face
interviews but not in telephone surveys.
Sources and Techniques of Data Collection
 The depth and detail of the information that can be secured
far exceeds the information secured from telephone or mail
surveys.

 Interviewers can probe additional questions, gather

supplemental information.

 Interviewers can make adjustments to the language of the

interview because they can observe the problems and
effects with which the interviewer is faced.
Sources and Techniques of Data Collection
Limitations of the Method
 The method is an expensive enterprise – (e.g., locating
respondents) – US$50-80.
 Hence, personal interviews are generally used only
when subjects are not likely to respond to other
methods.

 susceptible to interviewers’ bias/mistakes

 Interviewer may also be reluctant to visit unfamiliar

places.
Sources and Techniques of Data Collection
b) Telephone Interview
 Telephone can be a helpful medium of communication in
setting up interviews.
 telephone numbers are picked, using some sampling
technique, from a telephone directory.
 Then the survey will be administered by calling and
interviewing those who are selected in the sample via
telephone.
 Telephone surveys are the fastest method of gathering
information from a relatively large sample - generally
last less than ten minutes.
Sources and Techniques of Data Collection
Strengths of this method
 Moderate travel and administrative costs
 Faster completion of study
 Responses can be directly entered on to the computer

 Speed of administration; no geographic limitations; etc.

Sources and Techniques of Data Collection
Limitations of this method
 Respondents must be available by phone.

 The length of the interview period is short.

 limited in length and scope.

 those interviewed by phone find the experience to be

less rewarding than a personal interview.
Sources and Techniques of Data Collection
C) Interviewing by mail (Solicited responses)
 Self-administrated questionnaires may be used in surveys.

 Questionnaires will be sent to respondents through their

email or postal address.

 Respondents are expected to fill out the questionnaires and

send them back the same way.

 Self-administered surveys do not need interviewers.

 Respondents mark, write or type the answers
themselves.
 Sources and Techniques of Data Collection
 They are ideal for large sample sizes, or when the sample
comes from a wide geographic area.
 Questionnaires must be easily understandable since there is
no possibility for respondents to ask how to mark answers
or what a question might mean.
Advantages
 Lower cost than personal interview
 Persons who might otherwise be inaccessible can be
contacted (major corporate executives)
 Less interviewer bias
 better protects privacy/anonymity
Sources and Techniques of Data Collection
Disadvantages
 Non response error is high
 Large amount of information may not be acquired
 Literacy of the respondents is necessary, and the language
of the respondents must be known in advance.
 We have no control who responds or whom the respondent
consults.
 We have no control for the bias originating from the self-
selection process (respondents choose freely whether they
respond or not).
Sources and Techniques of Data Collection
d) Online Surveys (E-mail / Internet)
 Internet surveys allow researchers to reach a large sample
more quickly.
 Sample size requirements can be met easily.

 Internet surveys are relatively new and little is known

about the effect of sampling bias in internet surveys.

Advantages:
 Very inexpensive -saves inputting costs as well
 Respondents feel privacy
Sources and Techniques of Data Collection
Disadvantages:
 A sample of Internet users is representative only of Internet
users, who tend to be younger, better educated, and more
affluent than the general population.
 Very biased toward wealthy and the young.

 The demographic profile of the internet user does not

always represent the general population.
 Therefore, before doing an e-mail or internet survey,
carefully consider the effect that this bias might have
on the results.
Questionnaire Design
 The instrument design begins by drafting specific
measurement questions in the form of a questionnaire.

 A questionnaire is a research instrument consisting of a

set of questions intended to capture responses from
respondents.

 Questionnaires consist of questions.

 A well formed questionnaire is key to good research

Questionnaire Design
 The construction of a questionnaire requires a marriage
of art and science to achieve two primary goals:

 address the survey objectives,

 smooth conversational flow.

 But, why use questionnaires?

Questionnaire Design
 Questionnaires are easy to analyze.
 Data entry and tabulation can be easily done with
many computer software packages.

 Questionnaires are familiar to most people.

 Nearly everyone has had some experience completing
questionnaires and they generally do not make people
apprehensive.

 Questionnaires reduce bias.

 There is uniform question presentation.
Questionnaire Design
 Questions may be unstructured (respondents provide a
response in their own words) or structured (respondents
select an answer from a given set of choices).

 Structured questionnaires can be designed as:

 Dichotomous: having only two alternative responses
E.g. are you married? Yes No
 Multiple choice: having numerous alternative
responses
 E.g. what is your marital status?
 Married Single
 Widowed Divorced
Questionnaire Design
The main Components of a questionnaire
 Identification data: respondent’s name, address, time
and date of interview, code of interviewer, etc.

 Covering letter: brief purpose of the survey, who is

doing it, time involved, ethical statements, etc.

 Instruction: clear and concise instructions on how to

complete the questionnaire.

 Information sought: the actual information needed -

major portion of the questionnaire
Questionnaire Design
 The following can have important implications on the
survey response.
 Question content

 Question wording

 Response form

 Question sequence
Questionnaire Design
1. Question Content
 Responses obtained in survey research are sensitive to
the types of questions asked.

 For each question in your survey, you should ask yourself

how well it addresses the content you are trying to get at.

 So you need to examine each question to see if you

need to ask it at all and,
 if you need to ask it at the level of detail you
currently have.
Questionnaire Design
 Question content usually depends on the respondent’s
 ability, and
 willingness to answer the question accurately.

a) Respondents’ ability: Do respondents have the needed

information?

 Check whether the respondent is likely to have the

necessary information to be able to answer the question.
 Questions that overtax the respondent’s recall
ability may not be appropriate.
Questionnaire Design
b) Willingness of respondent to answer
 Whether the respondent will have any difficulty answering
the question truthfully.

 Respondents may be unwilling to share it because:

 The situation is not appropriate for disclosing the
information – embarrassing or sensitive
 Disclosure of information is a potential threat to the
respondent
 They consider the topic to be irrelevant and
uninteresting
Questionnaire Design
 If there is some reason why they may not, consider
rewording the question to secure more complete and
truthful information.

 For instance: some people are sensitive about answering

questions about their exact age or income.

 In this case, you might give them response brackets to

choose from (e.g., between 30 and 40 years old,
between $50,000 and $100,000 annual income).
Questionnaire Design
 Use indirect statements i.e., “other people”
 You might get reasonable estimates if you ask the
respondent how much money "people with similar
qualification" typically get.

 Apply appropriate questioning sequences that will lead a

respondent from „safe“ question gradually to those that
are more sensitive.

 Begin with non-threatening and interesting questions.

Questionnaire Design
 Provide incentives as a motivation.

 What does the respondent get for completing your

questionnaire?
 Altruism may not be an effective motivator.

 Attaching an incentive to the questionnaire works well.

(of course, you have to consider the ethical implications
of such a practice!).
Questionnaire Design
Different types of questions
 Types of questions depend on the research question.

 Attributes – characteristics of respondents (e.g., age,

sex, etc.)
 Behaviour – what people do
 Beliefs – what people believe
 Knowledge – what people know
 Attitudes – what is desirable
 How much – measurements
Questionnaire Design
 Questions should be
 Relevant (about issues respondents have knowledge
of)

 reliable – same response by same individual and

different people should understand the question the
same way

 discriminating – should capture sufficient variation

 increasing response rates – sensitive questions and

poor survey administration can reduce response rates
 Simple and short
Questionnaire Design
 BUT, Questions should not be
 Double-barrelled – don’t ask two questions in one.

 You can often spot these kinds of problems by

looking for the conjunction "and" in your question.

 Example: are you satisfied with the university

and its computer science department?
Questionnaire Design
 Avoid leading or biased questions– pushing people to
answer in a certain way

 For instance: If you ask a question like: What do you see

as the benefits of a tax cut?
 you're only asking about one side of the issue.
 You might get a very different picture if you also
asked about the disadvantages of tax cuts.

 Words like usually, often, sometimes, occasionally,

seldom, etc., are ambiguous.
Questionnaire Design
2. Question Wording: Using Shared Vocabulary
 Getting the wording right is also a major difficulty in
writing good survey questions.

 Even slight wording differences can confuse the

respondent or lead to incorrect interpretations of the
question.
 In a survey the two parties must understand each other
and this is possible only if the vocabulary used is
common to both parties.

 So, don’t use uncommon words or abbreviations and

make items as brief as possible.
Questionnaire Design
 Don’t use emotionally loaded or vaguely defined words.
 For instance, if you ask a question about the "mass
media," what do you mean? The newspapers? Radio?
Television?

 Avoid technical and slang terms understood only by a small

subset of the population.

 Be specific in the use of terms and concepts (e.g.

government: national, regional, local)
Questionnaire Design
 Be specific when using a time period (“during last week”
instead of “recently”).
 Specify the time frame precisely.

 Make sure that facts within the question are accurate.

 Use correct grammar.

Questionnaire Design
3. Response structure or format -
 the degree of the structure imposed on the responses.
 Structured versus unstructured formats

 Structured Response Formats: The respondent chooses one

of several given responses.

 help the respondent to respond more easily and help the

researcher to accumulate and summarize responses more
efficiently.
 Preferable in large surveys.
Questionnaire Design

 They are more difficult to write than open questions

because the response choices must be known in advance.

 They produce standardized data that can easily be

analyzed statistically.
Questionnaire Design
 The response choices of categorical questions should be
both inclusive (or exhaustive):

 Inclusive: all possible answers should be listed in the

questionnaire;

 Exclusive: no respondent belongs to more than one

category.
 (except in the case of multiple response
categorical questions),
Questionnaire Design
Advantages
 Easier and quicker for respondents to answer
 Easier to compare the answers of different respondents
 Easier to code and statistically analyze
 reduce the variability of responses
 make fewer demands on interviewer skill, etc.

 don’t discriminate against the less talkative

Questionnaire Design
Limitations

 Can suggest ideas that the respondents would not

otherwise have

 too many choices can confuse respondents

Questionnaire Design
 Unstructured Response Formats- These are generally a
written texts.

 If the respondent (or interviewer) writes down text as

the response, you've got an unstructured response
format.

 These can vary from short comment boxes to the

transcript of an interview.
Questionnaire Design
 Respondents can give any answer and there are no given
alternative responses.

 They may express themselves extensively in their

own everyday language

 Responses to open questions are often difficult to compare

and interpret.
Questionnaire Design
Advantage: Permit an unlimited number of answers
 Respondents can qualify and clarify responses
 Permit creativity, self expression, etc.

Limitations: responses may not be consistent.

 Some responses may be irrelevant
 Comparison and statistical analysis difficult.
 Articulate and highly literature respondents have an
advantage
 Requires greater amount of respondent time,
thought and effort.
Questionnaire Design
4) Question Sequence – the order of the questions
 This can also affect the response as well as the overall
data collection activity.

 Which topics should be introduced early in the survey,

and which later?
 If you leave your most important questions until the end,
your respondents may be too tired.

 If you introduce them too early, your respondents may

not yet be ready to address the topic, especially if it is a
difficult or disturbing one.
Questionnaire Design
 There are no easy answers to these problems - you have
to use your judgment.

The Opening Questions: Just as in other aspects of life, first

impressions are important in survey work.

 The first few questions you ask will determine the tone
for the survey, and can help put your respondent at ease.
 So, the opening few questions should, in general, be
easy to answer
Questionnaire Design
 The first questions in a questionnaire must maintain
respondent interest and make responding easy.
 They should be easy to understand and nonthreatening.

 You should never begin your survey with sensitive or

threatening questions.

 Once respondents have been drawn into the interview,

complex or difficult-to-answer questions may follow —
 Of course, before respondent fatigue becomes an issue.
Questionnaire Design

 Sensitive Questions: In much of our social research, we

have to ask respondents about difficult or uncomfortable
subjects.
 Before asking such questions, you should attempt to
develop some trust with the respondent.

 A Checklist of Considerations: There are lots of

conventions or rules-of-thumb in the survey design
business.
Questionnaire Design
 Here's a checklist of some of the most important items you
can use to review your instrument:

 Start with easy, nonthreatening questions put more

difficult, threatening questions near end

 Grouping questions that are similar will make the

questionnaire easier to complete, and the respondent
will feel more comfortable.

 Ask about one topic at a time

 When switching topics, use a transition
Questionnaire Design
 Questions that jump from one unrelated topic to
another are not likely to produce high response rates.

 Transitions between questions should be smooth.

 Each question should follow comfortably from the
previous question.

 present general questions before specific ones in order

to avoid response contamination.

 Reduce response set

Questionnaire Design
 The Golden Rule: Remember that you are imposing in the
life of your respondent.

 You are asking for their time, their attention, their trust,
and often, for personal information.

 Therefore, you should always keep in mind the "golden

rule" of survey research:

 Do unto your respondents as you would have them do unto

you!
Questionnaire Design
 Finally
 Thank the respondent at the beginning for allowing
you to conduct your study

 Be sensitive to the needs of the respondent

 Be alert for any sign that the respondent is

uncomfortable

 Thank the respondent at the end for participating

Questionnaire Design
5) Physical Characteristics of a Questionnaire
 An improperly laid out questionnaire can lead
respondents to miss questions, can confuse them.

 So, take time to design a good layout

 ease to navigate within and between sections

 ease to use the questionnaire in the field; e.g.,

questions on recto and codes on verso sides of the
questionnaire

 leave sufficient space for open-ended questions

Questionnaire Design
 If you put more than one question on a line some
respondents might skip the second question.
 Abbreviating questions will result in misinterpretation of
the question.

Formats for Responses

 A variety of methods are available for presenting a
series of response categories.
 Boxes
 Blank spaces
Questionnaire Design
Providing Instructions
 Every questionnaire whether self administered or
administered by an interviewer should contain clear
instructions.

 General instructions: basic instructions to be followed in

completing it.

 Introduction: If a questionnaire is arranged into

subsections it is useful to introduce each section with a
short statement concerning its content and purpose.
Questionnaire Design
 Specific Instructions: Some questions may require
special instructions.

 Interviewers instruction: It is important to provide clear

complementary instruction where appropriate to the
interviewer.
Questionnaire Design
6) Reproducing the questionnaire - Nowadays less
important
 A neatly reproduced instrument will encourage a
higher response rate, thereby providing better data.

 Pilot Survey: The final test of a questionnaire is to

try it on representatives of the target audience.
Types of Measurement Scales
 Measurement levels (in decreasing order of precision)
1. A ratio variable is measured on a mathematical scale
with equal intervals and a fixed zero point
 Eg Journey time from London to Brussels was 2 hours in 2006,
but 1½ hours in 2009 (so 25% faster)
2. An interval variable is measured on a mathematical
scale with equal intervals and an arbitrary zero point
 Eg It was 5oC yesterday, but 10oC today (so it was warmer by
5oC, but not twice as warm because 0oC does not mean there
is no temperature)
 As they are measured on a mathematical scale, ratio
and interval variables are quantitative variables
95
Types of Measurement Scales
3. An ordinal variable uses numerical codes to identify the
order or rank of each category
 Eg Order of preference (1st , 2nd, 3rd)
 Rating scales (eg where 5 = strongly agree, 4 = agree, 3
= neutral, 2 = disagree and 1 = strongly disagree) can be
treated as ordinal or interval variables
4. A nominal variable uses numerical codes to identify named
categories
 Eg Geographical location where 1 = England, 2 = Wales,
3 = Scotland, 4 = Northern Ireland
 As they are not measured on a mathematical scale, ordinal
and nominal variables are categorical variables

96
Types of Measurement Scales
 We can summarize our description of the four scales
this way: If you can say that:
 One object is different from another, you have a nominal scale;

 One object is bigger or better or more of anything than

another, you have an ordinal scale;

 One object is so many units (degrees, inches) more than

another, you have an interval scale;

 One object is so many times as big or bright or tall or heavy as

another, you have a ratio scale.
Types of Measurement Scales

 Other distinctions
 A quantitative variable (ie all ratio and interval
variables) can be
 A continuous variable where the data can take any value
within a given range (eg time = 7 or 7½ hours)
 Or a discrete variable where the data can take only one
of a range of distinct values (eg Employees = 7 but not
7½)
 A dichotomous variable has two groups and can
be
 A categorical dichotomous variable with two categories
(eg gender might be coded 1 if female and 0 if not)
 Or a quantitative dichotomous variable known as a
dummy variable (coded 1 if characteristic is present and
0 if not)
98
 Types of Measurement Scales
 The measurement level of the variable determines which
descriptive statistics are appropriates
 Your choice depends on your research questions, which may also
require the use of inferential statistics

Exploratory analysis Descriptive statistics Measurement level

Frequency distribution Percentage frequency Ratio, interval, ordinal, nominal

Measures of central Mean Ratio, interval

tendency Median Ratio, interval, ordinal
Mode Ratio, interval, ordinal, nominal
Measures of dispersion Range Ratio, interval
Standard deviation Ratio, interval
Measures of normality Skewness Ratio, interval
Kurtosis Ratio, interval
99
Types of Measurement Scales
Exercise 1
Classifying variables (more than one answer may apply)

 A ratio variable can be

 Categorical / Continuous / Discrete / Interval / Quantitative
 A categorical variable can be
 Continuous / Dichotomous / Discrete / Interval / Nominal
 A dummy variable can be
 Categorical / Continuous / Dichotomous / Quantitative
 A quantitative variable can be
 Categorical / Continuous / Discrete / Interval / Ratio
 A dichotomous variable can be
 Categorical / Continuous / Dummy / Interval / Quantitative

101
Solution 1
Classifying variables

1. A ratio variable can be

 Categorical/ Continuous/ Discrete/ Interval/ Quantitative
2. A categorical variable can be
 Continuous/ Dichotomous/ Discrete/ Interval/ Nominal
3. A dummy variable can be
 Categorical/ Continuous/ Dichotomous/ Quantitative
4. A quantitative variable can be
 Categorical/ Continuous/ Discrete/ Interval/ Ratio
5. A dichotomous variable can be
 Categorical/ Continuous/ Dummy/ Interval/ Quantitative

102
Exercise 2
1. An environmental scientist collects water samples from streams
and rivers near large industrial plants and saves exactly 1 liter
of water from each sample. Then, back at the lab, the researcher
determines the amounts of certain health-jeopardizing bacteria
in each sample. What measurement scale does the
measurement of bacteria content reflect?

2. A market researcher is studying the relationship between (a) a

country’s average annual relative humidity levels and (b) the
number of raincoats sold in the country during the year. What
scales underlie the two variables in this study?
Exercise 2
3. A sports journalist in Spain wants to determine whether a
football club’s fan club membership correlates to the frequency
with which the club has won in the Spanish football league
during the past five years. The researcher can easily obtain
information about fan club membership and wins from the club’s
records. To simplify data collection, the researcher uses the
following coding scheme for the fan club membership: 1 = FC
Barcelona, 2 = Real Madrid, and 3 = Atletico de Madrid. What
measurement scale(s) underlie (a) fan club membership and (b)
frequency of wins?
Exercise 2
4. A new audio system was installed in a theatre that has a seating
capacity of 500 people. The seating area has been divided into
three distinct areas: platinum, gold, and silver. At the end of
every show in one week, the audience was asked to fill out a
questionnaire to determine the effectiveness of the new audio
system. What measurement scale does the researcher’s coding
scheme for the seating area represent?
Exercise 2
5. An advertiser is studying the impact of a chocolate commercial on
different age groups. He puts the age groups in four categories:
Group 1 includes 3- to 12-year-olds, Group 2 includes teenagers
aged 13 to 19, Group 3 includes adults aged 20 to 49, and Group 4
includes people aged 50 and above. What kind of scale is the
classification of age groups in this study?

6. A car manufacturer is studying sales patterns over five years of

four different types of car that vary in size and available utilities:
hatchbacks (small cars with no trunk space), midsized sedans (cars
with limited trunk space and more utilities compared to
hatchbacks), sedans (proper trunk space and all utilities), and
luxury sedans (big trunk space and luxurious interiors). Based on
size and available utilities, which measurement scale does the type
of car reflect?
Exercise 2
7. A child psychologist is developing an instrument designed to
measure the social etiquette of small children. The instrument
includes 25 statements; for example, “wishes elders when they
meet them,” “courteous to their sibling,” and “says please when
asking for something or thank you when someone has helped.”
Parents must rate each of these statements on a 5-point scale as
follows:
0 never; 1 rarely; 2 sometimes; 3 often; 4 always
Parents who answer “never” to each of the 25 questions get the
lowest possible score of 0 on the instrument. Parents who answer
“always” to each of the 25 questions get the highest possible score
of 100 on the instrument. Thus, scores on the instrument range
from 0 to 100. What kind of scale do the scores represent?
 ACFN 3111-
Research Methods in Accounting & Finance

Chapter V
The Sources and Collection of Data

Highly recommended text :

Zikmund. Business Research Methods
Content of the Lecture

1. Introduction
2. Data Collection methods
 Types and sources of Data
 Methods of primary Data collection
 Methods of secondary Data collection
3. Data management issues
4. Sources and Techniques of Data Collection
5. Questionnaire Design
Introduction
 Data are the foundations of research.

 The quality of any investigation heavily depends on the

quality of information or data used.
 So, proper data collection, retention, and sharing are
vital to the research enterprise.

 What is Data?
 Data refers to any group of facts, measurements, or
observations used to make inference about the problem of
investigation.
Introduction
 It can range from material created in a laboratory, to
information obtained in economic research, such as a
filled-out questionnaire, video and audio recordings, or
photographs, etc.

 We need to design strategies that would enable us to

create meaningful and unbiased data,
 that will not waste resources, and
 that will appropriately protect human and animal
subjects.
Introduction
 When selecting data we need to be clear on:
 The data type (e.g., nominal, ordinal, interval or
ratio measures).
 Samples ("frames") and sample size, instruments.
 Methodologies for collecting data, etc.

 And, to ensure high quality output, data gathering

should be well planned.
Introduction
 Hence, we need to plan and define properly:
 The objective of the data collection exercise
 The kind of data (information) to be collected
 The source of the data
 The methods to be used to collect data

 This helps us to determine the statistical techniques to be

employed.
 It also helps us to avoid gathering of irrelevant
information.
Data Collection Methods
 Data collection is the process of gathering and
measuring information on the variables of interest.

 The data source could be:

 an area from where we can collect the data (i.e.
geographic location),
 persons to be interviewed,
 an entity or organization,
 discussions to be observed, etc.).
Data Collection Methods
 Although data collection methods may vary by discipline
and data types, the emphasis on ensuring accurate
collection remains the same.

 Some of the consequences from improperly collected

data may include:
 Inability to repeat and validate the study.
 Distorted and inaccurate findings.
 Wasted resources.
 Misleading other researchers.
 Harm to human participants and animal subjects.
Data Collection Methods
 More importantly, poor data collection may cause harm
to society when the results of the flawed research are
used to support public policy recommendations.
Data management issues
 Storage and Protection
 Data must be stored securely both during a research
project and after it ends.

 Risks like fire, water or other environmental damage,

or common technical failures like hard disk crashes,
must be considered.

 So, make backup copies of the data periodically

and store the copies in a secure location.
Data management issues…
 Confidentiality
 refers to limiting information access and disclosure to
authorized users- preventing access by or disclosures
to unauthorized persons.

 So you need to decide

 who can handle which portion of data,
 at what point during the project,
 for what purpose, and so on
Data management issues…
 Integrity
 Integrity refers to the trustworthiness of the
information.

 Researchers need to have sufficient skills to ensure the

integrity of their data collection efforts.
 For instance, data collection requires a rigorous and
detailed recruitment and training plan for data
collectors.

 So, data should not be modified inappropriately,

whether accidentally or deliberately.
Sources and Techniques of Data
collection
Sources and Techniques of Data collection
 Sources of data can be grouped into
 primary and
 secondary sources of data

Secondary Sources of data

 Secondary sources are those, which have been collected
by other individuals or agencies.

 i.e. refers to already existing information which have

previously been collected and reported by some
individual or organization for their own purposes.
Sources and Techniques of Data collection…

 As much as possible secondary data should always be

considered first, if available.

 WHY REINVENT THE WHEEL IF THE DATA ALREADY

EXISTS!
Sources and Techniques of Data Collection…
 But, when dealing with secondary data you should ask:

 Is the owner of the data making them available to

you?
 Is it free of charge? If not, how will you pay?
 Are the data in a format that you can work with?
etc.

 A description of the sampling technique, i.e., how the

sample was collected is also necessary, etc.
Sources and Techniques of Data Collection…
Sources of Secondary Data
 Secondary data may be acquired from various sources:

 Documents (reports of various kinds, books,

periodicals, reference books (encyclopedia),
university publications (thesis, dissertations, etc.),
policy documents, statistical compilations,
proceedings, personal documents (historical
documents, Data archives, etc.
 The Internet
Sources and Techniques of Data Collection…
Advantages of Secondary data
 Can be found more quickly and cheaply.
 Most researches on past events or distant places have
to rely on secondary data sources.

Limitations
 Authenticity:
 genuine?
 credible?
 representative?
Sources and techniques of Data Collection…
 Completeness???
 The information often does not meet one’s specific
needs.
 Definitions might differ, units of measurements
may be different and different time periods may
be involved.

 Data could also be out of date.

Sources and Techniques of Data Collection…
Primary Sources of Data
 These are data collected by the investigator (immediate
user) for the 1st time.

 Two approaches to primary data collection:

 the qualitative approach and

 the quantitative approach
Primary Data Collection

• Qualitative vs. Quantitative

I. Qualitative Data Collection
Qualitative data collection approaches
 Qualitative data can be acquired from:
 case studies,
 Participant Observation
 Rapid appraisal methods,
 focus group discussions and
 key informant interviews, etc.

i) Case studies: involves a detailed investigation of a

particular case.
Qualitative Data Collection…
 (ii) Participant Observation: this is when a researcher
attempts to observe in some way.

 It can be a good way of getting below the surface

information and help to reveal complex social processes.
 The researcher can play an overt or covert role.
 Example: the observation of consumer behaviour in
supermarkets.
Qualitative Data Collection…
iii) Participatory Rapid Appraisal (PRA)
 PRA is a systematic expert observation usually by a
multidisciplinary team.

 The PRA method:

 takes only a short time to complete,
 tends to be relatively cheap, and
 make use of more 'informal' data collection
procedures.
Qualitative Data Collection…
iv) Focus group discussions
 A FGD is a group discussion guided by a facilitator, during
which group members talk freely.

 The researcher creates a relaxed atmosphere and records in

some way what is being said (e.g. by use of a tape-recorder,
video, note-taker, etc.).
 Qualitative Data Collection…
 Mostly used to gather opinions, from a selected group of
people on a particular and pre-determined topic, e.g.
consumer topic; political topic etc.

 About 10 people would be engaged in a discussion on the

topic in an informal setting.

 The researcher encourages free discussion, but is ready to

intervene if necessary to resolve group problems.
 The group of individuals are expected to have experience
or opinion on the topic.
Qualitative Data Collection…
 Its purpose is to obtain in-depth information on concepts,
perceptions and ideas of a group.

 Focus groups can be a useful way of finding out what

the main issues and concerns of any group are.

 It is more than a question-answer interaction.

 group members discuss the topic and interact among
themselves with guidance from the facilitator.
Qualitative Data Collection…
Why use focus groups?
 The main purpose of a focus group research is to draw upon
group’s attitudes, feelings, beliefs, experiences and
reactions.

 attitudes, feelings and beliefs may likely be revealed via

interaction in social gatherings.

 Compared to individual interviews, which aim to obtain

individual attitudes, beliefs and feelings, focus groups elicit
a multiplicity of views.
Qualitative Data Collection…
Strengths and weakness of FGDs

 It provides valuable information in a short period of time

and at relatively low cost if the groups have been well
chosen, in terms of composition and number.

 But, their use as a research tool is limited when it

comes to measuring the results objectively.
Qualitative Data Collection…
 FGD should not be used for quantitative purposes, such
as the testing of hypotheses or the generalization of
findings for larger areas

 Which require more elaborate surveys.

 In addition, the logistical complexity of focus group

research is frequently cited as a deterrent.
 Qualitative Data Collection…
 In addition, it may be risky to use FGDs as a single tool
because in:

 group discussions, people tend to center their opinions

on the most common ones.
 In case of very sensitive topics group members may
hesitate to express their feelings and experiences freely.

 Therefore, it is advisable to combine FGDs with other

methods (in-depth interviews).
Qualitative Data Collection…
v)Key Informant Interview
 An interviewing process with opinion leaders such as
elected officials, government officials, and business
leaders, etc.

 This technique is particularly useful for:

 Raising community awareness about socio-economic
issues
 Learning minority viewpoints
 Gaining a deeper understanding of opinions and
perceptions, etc.
 Qualitative Data Collection…
v)Triangulation
 refers to the use of more than one approach to the
investigation of a research question in order to enhance
confidence in the findings.

 Why use triangulation

 The purpose of triangulation is to obtain confirmation
of findings through convergence of different
perspectives.

 By combining multiple methods, and empirical

materials, researchers can overcome the weakness or
biases and problems that are associated with a single
method.
Qualitative Data Collection…
Taxonomy of triangulation
1. Data triangulation: Involves gathering data at different
times and situations, from different subjects using
different sampling techniques.
 Example: Using time series data.

2. Investigator triangulation: involves using more than one

researcher to collect and analyze the data.
 Example: organizing scientific experiments to replicate
each other’s work.
Qualitative Data Collection…
3. Theoretical triangulation: making explicit references to more
than one theoretical tradition to analyze data.
4. Methodological triangulation: combination of different
research methods or different varieties of the same method.

 Within method triangulation involves making use of

different varieties of the same method.
 Example: making use of alternative econometric
estimators
 Between method triangulation involves making use of
different methods.
 Example: Using ‘quantitative’ and ‘qualitative’ methods.
II. Quantitative Data Collection
Quantitative Primary Data Collection Methods

 This method involves the collection of quantified data that

can be subjected to statistical treatment.

 Primary data may be collected through:

 Direct personal observation method, or
 Survey or questioning other persons,
 From a literature search, or
 by combining them.
Quantitative Data Collection…
The Observation Method
 Observation includes all kinds of monitoring behavioral and
non-behavioral activities.

 The investigator will make the observation personally

by being guided by some outlined questions.

 i.e. the investigator does not make inquiries but notes down
the observation himself/herself
 (e.g. evaluation of the class room teaching-learning
process by investigators).
Quantitative Data Collection…
 Advantages
 It is less demanding and has less bias.

 One can collect data at the time it occurs and need

not depend on reports by others.

 with this method one can capture the whole event as

it occurs.
Quantitative Data Collection…
Weakness of the Method
 The observer normally must be at the scene of the event
when it takes place.
 But it is often difficult or impossible to predict when
and where an event might occur.

 It is also a slow and expensive process.

 Its most reliable results are restricted to data that can be
determined by an open or surface indicator.
 Difficult to learn about past events and to gather
information on intensions, attitudes, opinions and
preferences.
Quantitative Data Collection…
The Survey Method: the most commonly used method in
economics.
 To survey is to ask people questions in a questionnaire.

 In a survey, a trained interviewer asks the questions and

records responses on a specially designed form.

 The form contains all the questions which would extract

information from a respondent.
Quantitative Data Collection…
Strength of the Survey Method
 It is a versatile or flexible method - capable of many
different uses.

 More efficient and economical than observations -

surveying using telephone or mail is less expensive.

 If planned correctly, a survey makes it easy for people to

participate.

 Same questions can be asked in several ways to double-

check for accuracy and consistency.
Quantitative Data Collection…
Weakness of the Method
 The quality of information depends heavily on the ability
and willingness of the respondents.

 A respondent may interpret questions or concept

differently from what was intended by the researcher.

 A respondent may deliberately mislead the researcher

by giving false information.
Quantitative Data Collection…
 People surveyed may not answer all questions.

 Low response rate is common.

 People can and do lie.

 Can’t test knowledge with mailed surveys.

Quantitative … Survey admin

 Main modes of administration of a survey

Quantitative … Survey admin

 Main modes of administration of a survey

Quantitative … Survey admin
 Surveys could be carried out through:
 face to face personal interview
 telephone interview
 mail or e-mail, or by a combination.

 a) Personal Face to face Interview

 It is a two-way conversion where one person
interviews another person.

 interviewers ask the questions and mark the

answers, either on paper or by typing them onto a
computer.
 Quantitative … Survey admin
 Advantages of face to face Interview:
 enhances respondent participation,
 guiding the questioning process,
 answering the respondent’s questions,
 clarifying the meaning of questions and
responses,
 probing, clarifying and motivating the
respondent to complete the questionnaire,
 making sure that the questionnaire is answered in the
pre-defined sequence and by the respondent himself or
herself.
 In addition, visual aids are possible in face-to-face
interviews but not in telephone surveys.
Quantitative … Survey admin
 The depth and detail of the information that can be secured
far exceeds the information secured from telephone or mail
surveys.

 Interviewers can probe additional questions, gather

supplemental information.

 Interviewers can make adjustments to the language of the

interview because they can observe the problems and
effects with which the interviewer is faced.
Quantitative … Survey admin
Limitations of the Method
 The method is an expensive enterprise – (e.g., locating
respondents) – US$50-80.
 Hence, personal interviews are generally used only
when subjects are not likely to respond to other
methods.

 susceptible to interviewers’ bias/mistakes

 Interviewer may also be reluctant to visit unfamiliar

places.
Quantitative … Survey admin
b) Telephone Interview
 Telephone can be a helpful medium of communication in
setting up interviews.
 telephone numbers are picked, using some sampling
technique, from a telephone directory.
 Then the survey will be administered by calling and
interviewing those who are selected in the sample via
telephone.
 Telephone surveys are the fastest method of gathering
information from a relatively large sample - generally
last less than ten minutes.
Quantitative … Survey admin
Strengths of this method
 Moderate travel and administrative costs
 Faster completion of study
 Responses can be directly entered on to the computer

 Speed of administration; no geographic limitations; etc.

Quantitative … Survey admin
Limitations of this method
 Respondents must be available by phone.

 The length of the interview period is short.

 limited in length and scope.

 those interviewed by phone find the experience to be

less rewarding than a personal interview.
Quantitative … Survey admin
C) Interviewing by mail (Solicited responses)
 Self-administrated questionnaires may be used in surveys.

 Questionnaires will be sent to respondents through their

email or postal address.

 Respondents are expected to fill out the questionnaires and

send them back the same way.

 Self-administered surveys do not need interviewers.

 Respondents mark, write or type the answers
themselves.
 Quantitative … Survey admin
 They are ideal for large sample sizes, or when the sample
comes from a wide geographic area.
 Questionnaires must be easily understandable since there is
no possibility for respondents to ask how to mark answers
or what a question might mean.
Advantages
 Lower cost than personal interview
 Persons who might otherwise be inaccessible can be
contacted (major corporate executives)
 Less interviewer bias
 better protects privacy/anonymity
Quantitative … Survey admin
Disadvantages
 Non response error is high
 Large amount of information may not be acquired
 Literacy of the respondents is necessary, and the language
of the respondents must be known in advance.
 We have no control who responds or whom the respondent
consults.
 We have no control for the bias originating from the self-
selection process (respondents choose freely whether they
respond or not).
Quantitative … Survey admin
d) Online Surveys (E-mail / Internet)
 Internet surveys allow researchers to reach a large sample
more quickly.
 Sample size requirements can be met easily.

 Internet surveys are relatively new and little is known

about the effect of sampling bias in internet surveys.

Advantages:
 Very inexpensive -saves inputting costs as well
 Respondents feel privacy
Quantitative … Survey admin
Disadvantages:
 A sample of Internet users is representative only of Internet
users, who tend to be younger, better educated, and more
affluent than the general population.
 Very biased toward wealthy and the young.

 The demographic profile of the internet user does not

always represent the general population.
 Therefore, before doing an e-mail or internet survey,
carefully consider the effect that this bias might have
on the results.
Survey - Questionnaire Design
Questionnaire Design
 The instrument design begins by drafting specific
measurement questions in the form of a questionnaire.

 A questionnaire is a research instrument consisting of a

set of questions intended to capture responses from
respondents.

 Questionnaires consist of questions.

 A list of questions each with a range of answers.

 A well formed questionnaire is key to good research

Questionnaire Design…

 The construction of a questionnaire requires a marriage

of art and science to achieve two primary goals:

 address the survey objectives,

 smooth conversational flow.

 But, why use questionnaires?

Questionnaire Design…
 Questionnaires are easy to analyze.
 Data entry and tabulation can be easily done with
many computer software packages.

 Questionnaires are familiar to most people.

 Nearly everyone has had some experience completing
questionnaires and they generally do not make people
apprehensive.

 Questionnaires reduce bias.

 There is uniform question presentation.
Questionnaire Design…
 Questions may be unstructured (respondents provide a
response in their own words) or structured (respondents
select an answer from a given set of choices).
Questionnaire Design…

 Open-ended response questions

 Questions that pose some problem and ask respondents
to answer in their own words.

 Fixed-alternative questions
 Questions in which respondents are given specific,
limited-alternative responses and asked to choose the one
closest to their own viewpoint.
Questionnaire Design…

 Structured questionnaires can be designed as:

 Dichotomous: having only two alternative responses
E.g. are you married? Yes No
 Multiple choice: having numerous alternative
responses
 E.g. what is your marital status?
 Married Single
 Widowed Divorced
Questionnaire Design…
The main Components of a questionnaire
 Identification data: respondent’s name, address, time
and date of interview, code of interviewer, etc.

 Covering letter: brief purpose of the survey, who is

doing it, time involved, ethical statements, etc.

 Instruction: clear and concise instructions on how to

complete the questionnaire.

 Information sought: the actual information needed -

major portion of the questionnaire
Questionnaire Design…
 The following can have important implications on the
survey response.
 Question content

 Question type

 Question wording

 Response form

 Question sequence

 Questionnaire layout
Questionnaire… 1. Question Content

 Questions should be
 Relevant (about issues respondents have knowledge
of)

 Reliable – same response by same individual and

different people should understand the question the
same way

 discriminating – should capture sufficient variation

 increasing response rates – sensitive questions and

poor survey administration can reduce response rates
 Simple and short
Questionnaire… 1. Question Content

 Responses obtained in survey research are sensitive to

the types of questions asked.

 For each question in your survey, you should ask yourself

how well it addresses the content you are trying to get at.

 So you need to examine each question to see if you

need to ask it at all and,
 if you need to ask it at the level of detail you
currently have.
Questionnaire… 1. Question Content

 Question content usually depends on the respondent’s

 ability, and
 willingness to answer the question accurately.

a) Respondents’ ability: Do respondents have the needed

information?

 Check whether the respondent is likely to have the

necessary information to be able to answer the question.
 Questions that overtax the respondent’s recall
ability may not be appropriate.
Questionnaire… 1. Question Content

b) Willingness of respondent to answer

 Whether the respondent will have any difficulty answering
the question truthfully.

 Respondents may be unwilling to share it because:

 The situation is not appropriate for disclosing the
information – embarrassing or sensitive
 Disclosure of information is a potential threat to the
respondent
 They consider the topic to be irrelevant and
uninteresting
Questionnaire… 1. Question Content

 If there is some reason why they may not, consider

rewording the question to secure more complete and
truthful information.

 For instance: some people are sensitive about answering

questions about their exact age or income.

 In this case, you might give them response brackets to

choose from (e.g., between 30 and 40 years old,
between $50,000 and $100,000 annual income).
Questionnaire… 1. Question Content

 Use indirect statements i.e., “other people”

 You might get reasonable estimates if you ask the
respondent how much money "people with similar
qualification" typically get.

 Apply appropriate questioning sequences that will lead a

respondent from „safe“ question gradually to those that
are more sensitive.

 Begin with non-threatening and interesting questions.

Questionnaire… 1. Question Content

 Provide incentives as a motivation.

 What does the respondent get for completing your

questionnaire?
 Altruism may not be an effective motivator.

 Attaching an incentive to the questionnaire works well.

(of course, you have to consider the ethical implications
of such a practice!).
Questionnaire… 2. Question type

 Types of questions depend on the research question.

 Attributes – characteristics of respondents (e.g., age,

sex, etc.)
 Behaviour – what people do
 Beliefs – what people believe
 Knowledge – what people know
 Attitudes/opinions – what is desirable
 How much – measurements
Questionnaire… 3. Question wording

Question Wording/Language: Using Shared Vocabulary

 Getting the wording right is also a major difficulty in
writing good survey questions.

 Even slight wording differences can confuse the

respondent or lead to incorrect interpretations of the
question.
 In a survey the two parties must understand each other
and this is possible only if the vocabulary used is
common to both parties.

 So, don’t use uncommon words or abbreviations and

make items as brief as possible.
Questionnaire… 3. Question wording

 Don’t use emotionally loaded or vaguely defined words.

 For instance, if you ask a question about the "mass media," what
do you mean? The newspapers? Radio? Television?
 Avoid technical and slang terms understood only by a small subset of
the population.
 Be specific in the use of terms and concepts (e.g. government:
national, regional, local)
 loaded question - A question that suggests a socially desirable
answer or is emotionally charged. For example, a truthful answer to
the following classification question might be painful: Where did you
rank academically in your high school graduating class? □ Top
quarter □ Second quarter □ Third quarter □ Fourth quarter
Questionnaire… 3. Question wording

 Be specific when using a time period (“during last week”

instead of “recently”).
 Specify the time frame precisely.

 Make sure that facts within the question are accurate.

 Use correct grammar.

Questionnaire… 3. Question wording

 Questions should not be

 Double-barrelled – don’t ask two questions in one.

 You can often spot these kinds of problems by

looking for the conjunction "and" in your question.

 Example: are you satisfied with the university

and its computer science department?
Questionnaire… 3. Question wording

 Avoid leading or biased questions– pushing people to

answer in a certain way

 For instance: If you ask a question like: What do you see

as the benefits of a tax cut?
 you're only asking about one side of the issue.
 You might get a very different picture if you also
asked about the disadvantages of tax cuts.

 Words like usually, often, sometimes, occasionally,

seldom, etc., are ambiguous.
Questionnaire… 3. Question wording

 leading question
 A question that suggests or implies certain answers.
 E.g. Many people are using dry cleaning less because of
improved wash-and-wear clothes. How do you feel
wash-and-wear clothes have affected your use of dry
cleaning facilities in the past 4 years?
□ Use less □ No change □ Use more
Questionnaire… 3. Question wording

 Ambiguity
 Introduce errors in the data
 Example – “Why did you fly to Dire Dawa on Ethiopian Airlines?”
 Most might interpret this question as was intended, but it
contains three possible questions, so the response might
concern any of these:
 I flew (rather than another mode of travel) because…
 I went to Dire Dawa because…
 I selected EAL because…
Questionnaire… 3. Question wording

 Avoid Making Assumptions

 Consider the following question: Should General Electric

continue to pay its outstanding quarterly dividends? Yes No

 This question has a built-in assumption: that people believe the

dividends paid by GE are outstanding. By answering “yes,” the
respondent implies that the program is, in fact, outstanding and
that things are fine just as they are. When a respondent
answers “no,” he or she implies that GE should discontinue the
dividends. The researchers should not place the respondent in
that sort of bind by including an implicit assumption in the
question.
Questionnaire… 3. Question wording

 Unbalanced questions
 “Are you in favor of fair value?” is an unbalanced question
because it provides only one alternative. It can be reworded to “
Do you favor or not favor fair value?”, to give respondents more
than one alternative.
 Similarly the use of persuasive tone can affect the respondent’s
answers. Wording should be chosen carefully to avoid a tone
that may produce bias in responses.
Questionnaire… 3. Question wording

 Recall/memory error (Avoid Burdensome Questions That May Tax the

Respondent’s Memory)

 Respondents tend to remember what should have been done

rather than what was done.
 Telescoping is a specific type of memory error. This occurs if the
respondent reports events as occurring either earlier or later
than they actually occur. Error occurs when respondents
included details of an event which actually occurred outside the
specified reference period.
 Minimizing the recall period helps to reduce memory bias.
Questionnaire… 4. Response format

Response structure or format -

 the degree of the structure imposed on the responses.
 Structured (closed) versus unstructured (open)
formats

 Structured Response Formats:

 The respondent chooses one of several given responses.

 help the respondent to respond more easily and help

the researcher to accumulate and summarize responses
more efficiently. Preferable in large surveys.
Questionnaire… 4. Response format

 Structured Response Formats…

 They are more difficult to write than open questions
because the response choices must be known in
advance.

 They produce standardized data that can easily be

analyzed statistically.
Questionnaire… 4. Response format

 Structured Response Formats…

 The response choices of categorical questions should

be both inclusive (or exhaustive):

 Inclusive: all possible answers should be listed in

the questionnaire;

 Exclusive: no respondent belongs to more than

one category. (except in the case of multiple
response categorical questions),
Questionnaire… 4. Response format

Structured Response Formats…

Advantages
 Easier and quicker for respondents to answer
 Easier to compare the answers of different respondents
 Easier to code and statistically analyze
 reduce the variability of responses
 make fewer demands on interviewer skill, etc.

 don’t discriminate against the less talkative

Questionnaire… 4. Response format

Structured Response Formats…

Limitations

 Can suggest ideas that the respondents would not

otherwise have

 too many choices can confuse respondents

Questionnaire… 4. Response format

 Unstructured Response Formats- These are generally a

written texts.

 If the respondent (or interviewer) writes down text as

the response, you've got an unstructured response
format.

 These can vary from short comment boxes to the

transcript of an interview.
Questionnaire… 4. Response format

 Respondents can give any answer and there are no given

alternative responses.

 They may express themselves extensively in their

own everyday language

 Responses to open questions are often difficult to compare

and interpret.
Questionnaire… 4. Response format

Advantage: Permit an unlimited number of answers

 Respondents can qualify and clarify responses
 Permit creativity, self expression, etc.

Limitations: responses may not be consistent.

 Some responses may be irrelevant
 Comparison and statistical analysis difficult.
 Articulate and highly literature respondents have an
advantage
 Requires greater amount of respondent time,
thought and effort.
Questionnaire… 5. Question sequence

Question Sequence – the order of the questions

 This can also affect the response as well as the overall
data collection activity.

 Which topics should be introduced early in the survey,

and which later?
 If you leave your most important questions until the end,
your respondents may be too tired.

 If you introduce them too early, your respondents may

not yet be ready to address the topic, especially if it is a
difficult or disturbing one.
Questionnaire… 5. Question sequence

 There are no easy answers to these problems - you have

to use your judgment.

The Opening Questions: Just as in other aspects of life, first

impressions are important in survey work.

 The first few questions you ask will determine the tone
for the survey, and can help put your respondent at ease.
 So, the opening few questions should, in general, be
easy to answer
Questionnaire… 5. Question sequence

 The first questions in a questionnaire must maintain

respondent interest and make responding easy.
 They should be easy to understand and nonthreatening.

 You should never begin your survey with sensitive or

threatening questions.

 Once respondents have been drawn into the interview,

complex or difficult-to-answer questions may follow —
 Of course, before respondent fatigue becomes an issue.
Questionnaire… 5. Question sequence

 Sensitive Questions: In much of our social research, we

have to ask respondents about difficult or uncomfortable
subjects.
 Before asking such questions, you should attempt to
develop some trust with the respondent.

 A Checklist of Considerations: There are lots of

conventions or rules-of-thumb in the survey design
business.
Questionnaire… 5. Question sequence

 Here's a checklist of some of the most important items you

can use to review your instrument:

 Start with easy, nonthreatening questions put more

difficult, threatening questions near end

 Grouping questions that are similar will make the

questionnaire easier to complete, and the respondent
will feel more comfortable.

 Ask about one topic at a time

 When switching topics, use a transition
Questionnaire… 5. Question sequence

 Questions that jump from one unrelated topic to

another are not likely to produce high response rates.

 Transitions between questions should be smooth.

 Each question should follow comfortably from the
previous question.

 present general questions before specific ones in order

to avoid response contamination.

 Reduce response set

Questionnaire… 5. Question sequence

 Finally
 Thank the respondent at the beginning for allowing
you to conduct your study

 Be sensitive to the needs of the respondent

 Be alert for any sign that the respondent is

uncomfortable

 Thank the respondent at the end for participating

Questionnaire … 6. Questionnaire layout

Physical Characteristics of a Questionnaire

 Reduce respondent fatigue!
 An improperly laid out questionnaire can lead respondents to
miss questions, can confuse them.

 So, take time to design a good layout

 ease to navigate within and between sections

 ease to use the questionnaire in the field; e.g.,

questions on recto and codes on verso sides of the
questionnaire

 leave sufficient space for open-ended questions

Questionnaire … 6. Questionnaire layout

 If you put more than one question on a line some

respondents might skip the second question.
 Abbreviating questions will result in misinterpretation of
the question.

Formats for Responses

 A variety of methods are available for presenting a
series of response categories.
 Boxes
 Blank spaces
Questionnaire … 6. Questionnaire layout

 Yes/no
Questionnaire … 6. Questionnaire layout

 Which category? How many? How much?

Questionnaire … 6. Questionnaire layout

 Choose from a list

Questionnaire … 6. Questionnaire layout

 Agree/disagree with a statement

Questionnaire … 6. Questionnaire layout

 Rating scale
Questionnaire … 6. Questionnaire layout

 Open question
 To explain an answer to a previous question.
 What do you think about . . .?
 Anything else you want to say . . . ?
 Filter questions
Questionnaire … 6. Questionnaire layout

Providing Instructions
 Every questionnaire whether self administered or
administered by an interviewer should contain clear
instructions.

 General instructions: basic instructions to be followed in

completing it.

 Introduction: If a questionnaire is arranged into

subsections it is useful to introduce each section with a
short statement concerning its content and purpose.
Questionnaire … 6. Questionnaire layout

 Specific Instructions: Some questions may require

special instructions.

 Interviewers instruction: It is important to provide clear

complementary instruction where appropriate to the
interviewer.
Questionnaire … 6. Questionnaire layout

Reproducing the questionnaire - Nowadays less important

 A neatly reproduced instrument will encourage a higher
response rate, thereby providing better data.

 Pilot Survey: The final test of a questionnaire is to try

it on representatives of the target audience.
Questionnaire … 6. Questionnaire layout

 Type size: a font size between 10 and 12 is considered the best in

most circumstances.
 Use of all upper case text – it is best to avoid upper case text.
 Consistency of layout
 If consistency and logical patterns are introduced into the form
design, it eases the form filler’s task. Patterns that can be
useful are:
 White spaces for responses
 Using the same question type throughout the form using
the same layout throughout the form using a different
style, consistently, for instructions or directions.
 Line length – keep short.
 Character and line spacing – 7-8mm between lines and 4-5mm
between characters
Questionnaire Design… Conclusion

 The survey-design business has lots of conventions or rules of

thumb. You can use the following suggestions when reviewing
your instrument.
 The Golden Rule: Remember that you are imposing in the life of
your respondent.
 You are asking for their time, their attention, their trust, and
often, for personal information.
 Therefore, you should always keep in mind the "golden rule"
of survey research:
 Do unto your respondents as you would have them do unto you!
Questionnaire Design… Conclusion

 Do unto your respondents as you would have them do unto

you! To put this in more practical terms, you should keep the
following in mind:
 Thank the respondent at the beginning for allowing you to
conduct your study.
 Keep your survey as short as possible—only include what
is absolutely necessary.
 Be sensitive to the needs of the respondent.
 Be alert for any sign that the respondent is uncomfortable.
 Thank the respondent at the end for participating.
 Assure the respondent that you will send a copy of the
final results—and make sure you do.
Questionnaire Design… Conclusion

 Start with easy, nonthreatening questions.

 Put more difficult, threatening questions near the end.
 Never start a mail survey with an open-ended question.
 For historical demographics, follow chronological order.
 Ask about one topic at a time.
 When switching topics, use a transition.
 Reduce response set (the tendency of respondent to just
keep checking the same response).
 For filter or contingency questions, make a flowchart.
Principles of Good Interviewing
 Have integrity, and be honest.
 Have patience and tact.
 Pay attention to accuracy and detail.
 Exhibit a real interest in the inquiry at hand, but keep
your own opinions to yourself.
 Be a good listener.
 Keep the inquiry and respondents’ responses
confidential.
 Respect others’ rights.
Assignment – Questionnaire design

Do it in group/individually
Solution will be supplied upon submission
Measurement Scales
 Measurement Scales

Population - Parameter

Sample - Statistic

Variable - Variate

Attributes

Values

Nominal scale - Ordinal scale - Interval scale – no Ratio scale –

name Rank absolute zero absolute zero

120
Measurement Scales

 An attribute (variate) is a specific value on a variable. For

instance, the variable sex or gender has two attributes:
male and female, or, the variable agreement might be
defined in a particular study as having five attributes:
 1 = strongly disagree
 2 = disagree
 3 = neutral
 4 = agree
 5 = strongly agree
Measurement Scales

 Variables aren’t always quantitative or numerical and

it’s not necessary to assign numbers for something to
be a variable.
 The variable gender consists of two values expressed in words:
male and female. These values of the variable gender can be
called “text values” to differentiate them from numeric values.
However, if it is useful, quantitative values like “1” for female
and “2” for male can be assigned instead of (or in place of) the
words.
Measurement Scales
Measurement Scales

 Levels of measurement
 The relationship between numerical values on a measure.
 There is a hierarchy implied in the level of measurement idea.
 At lower levels of measurement, assumptions tend to be less
restrictive and data analysis tend to be less sensitive.
 At each level up the hierarchy, the current level includes all of
the qualities of the one below it and adds something new.
 In general, it is desirable to have a higher level of
measurement (such as interval or ratio) rather than a lower
one (such as nominal or ordinal).
Measurement Scales

 Rationale - knowing the level of measurement helps (or

important):
 Decide how to interpret the data from the variable.
 Decide what statistical analysis is appropriate on the
values that were assigned (e.g. For instance, it makes
sense to compute an average of an interval or ratio
variable but does not for a nominal or ordinal one)
Measurement Scales
 Measurement levels (in decreasing order of precision)
1. A ratio variable is measured on a mathematical scale
with equal intervals and a fixed zero point
 Eg Journey time from London to Brussels was 2 hours in 2006,
but 1½ hours in 2009 (so 25% faster)
2. An interval variable is measured on a mathematical
scale with equal intervals and an arbitrary zero point
 Eg It was 5oC yesterday, but 10oC today (so it was warmer by
5oC, but not twice as warm because 0oC does not mean there
is no temperature)
 As they are measured on a mathematical scale, ratio
and interval variables are quantitative variables
126
Measurement Scales
3. An ordinal variable uses numerical codes to identify the
order or rank of each category
 Eg Order of preference (1st , 2nd, 3rd)
 Rating scales (eg where 5 = strongly agree, 4 = agree, 3
= neutral, 2 = disagree and 1 = strongly disagree) can be
treated as ordinal or interval variables
4. A nominal variable uses numerical codes to identify named
categories
 Eg Geographical location where 1 = England, 2 = Wales,
3 = Scotland, 4 = Northern Ireland
 As they are not measured on a mathematical scale, ordinal
and nominal variables are categorical variables

127
Measurement Scales
 We can summarize our description of the four scales
this way: If you can say that:
 One object is different from another, you have a nominal scale;

 One object is bigger or better or more of anything than

another, you have an ordinal scale;

 One object is so many units (degrees, inches) more than

another, you have an interval scale;

 One object is so many times as big or bright or tall or heavy as

another, you have a ratio scale.
Measurement Scales

 Other distinctions
 A quantitative variable (i.e. all ratio and interval variables) can
be
 A continuous variable where the data can take any value
within a given range (eg time = 7 or 7½ hours)
 Or a discrete variable where the data can take only one of
a range of distinct values (eg Employees = 7 but not 7½)
 A dichotomous variable has two groups and can be
 A categorical dichotomous variable with two categories
(eg gender might be coded 1 if female and 0 if not)
 Or a quantitative dichotomous variable known as a
dummy variable (coded 1 if characteristic is present and 0
if not)
129
Measurement Scales
 The measurement level of the variable determines which
descriptive statistics are appropriates
 Your choice depends on your research questions, which may
also require the use of inferential statistics
Exploratory Descriptive statistics Measurement
analysis level
Frequency Percentage Ratio, interval, ordinal, nominal
distribution frequency
Measures of central Mean Ratio, interval
tendency Median Ratio, interval, ordinal
Mode Ratio, interval, ordinal, nominal
Measures of Range Ratio, interval
dispersion Standard deviation Ratio, interval
Measures of Skewness Ratio, interval
normality Kurtosis Ratio, interval
130
Measurement Scales
Measurement Scales
Measurement Scales
Measurement Scales
Measurement Scales
Exercise 1
Classifying variables (more than one answer may apply)

 A ratio variable can be

 Categorical / Continuous / Discrete / Interval / Quantitative
 A categorical variable can be
 Continuous / Dichotomous / Discrete / Interval / Nominal
 A dummy variable can be
 Categorical / Continuous / Dichotomous / Quantitative
 A quantitative variable can be
 Categorical / Continuous / Discrete / Interval / Ratio
 A dichotomous variable can be
 Categorical / Continuous / Dummy / Interval / Quantitative

136
Solution 1
Classifying variables

1. A ratio variable can be

 Categorical/ Continuous/ Discrete/ Interval/ Quantitative
2. A categorical variable can be
 Continuous/ Dichotomous/ Discrete/ Interval/ Nominal
3. A dummy variable can be
 Categorical/ Continuous/ Dichotomous/ Quantitative
4. A quantitative variable can be
 Categorical/ Continuous/ Discrete/ Interval/ Ratio
5. A dichotomous variable can be
 Categorical/ Continuous/ Dummy/ Interval/ Quantitative

137
Exercise 2 (Source: Practical Research (Leedy)
1. An environmental scientist collects water samples from streams
and rivers near large industrial plants and saves exactly 1 liter
of water from each sample. Then, back at the lab, the researcher
determines the amounts of certain health-jeopardizing bacteria
in each sample. What measurement scale does the
measurement of bacteria content reflect?

2. A market researcher is studying the relationship between (a) a

country’s average annual relative humidity levels and (b) the
number of raincoats sold in the country during the year. What
scales underlie the two variables in this study?
Exercise 2
3. A sports journalist in Spain wants to determine whether a
football club’s fan club membership correlates to the frequency
with which the club has won in the Spanish football league
during the past five years. The researcher can easily obtain
information about fan club membership and wins from the club’s
records. To simplify data collection, the researcher uses the
following coding scheme for the fan club membership: 1 = FC
Barcelona, 2 = Real Madrid, and 3 = Atletico de Madrid. What
measurement scale(s) underlie (a) fan club membership and (b)
frequency of wins?
Exercise 2
4. A new audio system was installed in a theatre that has a seating
capacity of 500 people. The seating area has been divided into
three distinct areas: platinum, gold, and silver. At the end of
every show in one week, the audience was asked to fill out a
questionnaire to determine the effectiveness of the new audio
system. What measurement scale does the researcher’s coding
scheme for the seating area represent?
Exercise 2
5. An advertiser is studying the impact of a chocolate commercial on
different age groups. He puts the age groups in four categories:
Group 1 includes 3- to 12-year-olds, Group 2 includes teenagers
aged 13 to 19, Group 3 includes adults aged 20 to 49, and Group 4
includes people aged 50 and above. What kind of scale is the
classification of age groups in this study?

6. A car manufacturer is studying sales patterns over five years of

four different types of car that vary in size and available utilities:
hatchbacks (small cars with no trunk space), midsized sedans (cars
with limited trunk space and more utilities compared to
hatchbacks), sedans (proper trunk space and all utilities), and
luxury sedans (big trunk space and luxurious interiors). Based on
size and available utilities, which measurement scale does the type
of car reflect?
Exercise 2
7. A child psychologist is developing an instrument designed to
measure the social etiquette of small children. The instrument
includes 25 statements; for example, “wishes elders when they
meet them,” “courteous to their sibling,” and “says please when
asking for something or thank you when someone has helped.”
Parents must rate each of these statements on a 5-point scale as
follows:
0 never; 1 rarely; 2 sometimes; 3 often; 4 always
Parents who answer “never” to each of the 25 questions get the
lowest possible score of 0 on the instrument. Parents who answer
“always” to each of the 25 questions get the highest possible score
of 100 on the instrument. Thus, scores on the instrument range
from 0 to 100. What kind of scale do the scores represent?
END OF CH05 – NEXT CH06 (SELF STUDY)

END OF THE COURSE.

THANK YOU.

Compiled by Andualem (2015/2023) 143