Research Methods and Report Writing

Assignment - A
Q1: It is necessary for researchers to understand the research methods & also the
research methodology. Elaborate with suitable explanations.
Ans:
Research Methods:
Instruments used in selection and construction of techniques. Example: Questionnaire,
Interview, Case Study etc. and helps in
Data collection
Statistical analysis and processing
Evaluation of accuracy of results obtained.
Research Methodology:
A Science of studying how research is done scientifically
A way to systematically solve the research problem by logically adopting various
steps
Methodology helps to understand not only the products of scientific Enquiry but
the process itself.
Aims to describe and analyze methods, throw light on their limitations and
resources, clarify their presuppositions and consequences
It is necessary for a researcher to design a methodology for the problem chosen. One
should note that even if the method considered in two problems are same, the
methodology may be different. It is important for the researcher to know not only the
research methods necessary for the research under taken but also the methodology. For
example, a researcher not only needs to know how to calculate mean, variance and
distribution function for asset of data, how to search a solution of a physical system
described by mathematical model, how to determine the roots of algebraic equations and
how to apply a particular method but also need to know
(i)
Which is a suitable method for the chosen problem?
(ii)
What is the order of accuracy of the result of a method?
(iii)
What is the efficiency of the method? And so on.
C o n s i d e r a t i o n o f these aspects constitutes a research methodology.
More precisely, research methods help us get a solution to a problem. On the other hand,
research methodologies concerned with the explanation of the following:
(1) Why is a particular research study undertaken?
(2) How did one formulate a research problem?
(3) What types of data were collected?
(4) What particular method has been used?
(5) Why was a particular technique of analysis of data used?

The study of research methods gives training to apply them to a problem. The study of
research methodology provides us the necessary training in choosing methods, materials,
scientific tools and training in techniques relevant for the problem chosen.
Therefore It is necessary for researchers to understand the research methods &
also the research methodology.
Q2: The researchers problem & the management problem are not always one and
the same. Thus it is necessary for the researchers to understand the research
methods and also the research methodology. Elaborate with suitable examples.
Ans: Researchers Problem and management problems are generally different because,
firstly, the management gives the management decision problem and accordingly, the
Research problems are formulated to research on and then giving the conclusion of
research to solve the management decision problem, through research methods and
Research Methodologies.
For Example:
Management Decision Problem is: Whether to introduce a new product?
Then the relative Researchers Problem can be:
-

What are the products, that business is currently selling

Whether the market will adopt the new introduction of product?
Why the management is going to introduce new product?
Whether we are going for expansion?
Who can become our Competitors for this product?
What are the substitutes of this product in the market?
Whether we have already market for this product or will need to build up?
Whether it can feasible to introduce the product?

Research Problems are formulated for some research Objectives. And a no of Analysis
tools are used for the research of above mentioned Research Questions. And for proper
Research, researcher is required to adopt the research Methods and Research
Methodologies.
Research Methodologies are used to better research the research Questions and it analyze
the research problem through different perspectives and then finding solution, which is
most appropriate.
Research methodologies use the scientific tools, material and methods to solve the
Specific Research Questions. And Research Methods are used to get the solution of
Research Problems.
Therefore it is necessary for the researchers to understand the research methods
and also the research methodology.

Q3: The following table lists the jobs of a network with their estimates
Job (i-j)

Optimistic time
3
2
6
2
5
3
3
1
4

(1-2)
(1-6)
(2-3)
(2-4)
(3-5)
(4-5)
(6-7)
(5-8)
(7-8)

(i)
Ans:

Most likely time

6
5
12
5
11
6
9
4
19

Draw the project network.

8
H4

E11

I18

F7
7

G11

C14

D5

4
A7

B6

Pessimistic time
15
14
30
8
17
15
27
7
28

(ii)

Calculate the length & variance of the critical path.

Ans:
Activity
(1-2)
(1-6)
(2-3)
(2-4)
(3-5)
(4-5)
(6-7)
(5-8)
(7-8)

Activity
Name
A
B
C
D
E
F
G
H
I

To

Tp
3
2
6
2
5
3
3
1
4

Tm
15
14
30
8
17
15
27
7
28

6
5
12
5
11
6
9
4
19

Te

Variance

(To+Tp+4Tm)/6

(To-Tp/6)2

7
6
14
5
11
7
11
4
18

4
4
16
1
4
4
16
1
16

Now, the possible paths are:

A-C-E-H
36
A-D-F-H
23
B-G-I
35
Therefore, the length of critical path is 36, which is maximum
Now, the project variance is the sum total of all those activities, which are present in the
critical path.
Therefore the project variance will be:
B
4
G
16
I
16
Project variance
36

(iii)

What is the approximate probability that the jobs on the critical path will
be completed in 41 days?

Ans:
Standard deviation = sq root of variance = Sq root of 36 = 6
Project duration is 36 days and
Probability to complete the jobs in 41 days:
P (X 41)
= P{ X (36 41)/6}
= P (X -0.83333)
Area = 0.5 Area from 0 to 0.83333
= 0.5 0.2967
= 0.2033
So the probability = 20.33%
Q4: A fast moving consumer product companys marketing manager realizes that there is a
strong link between the advertising expenditure & sales in the following week. He collects
the following data from his company records on sales, and advertising expenditure for the
State of Uttar Pradesh of his company.
Week no.

Sales in a week (units in

thousands)
1
2
3
4
5
6
7
8
9
10

110
120
140
150
125
130
115
127
118
121

Advertising expenditure
in previous week (Rs.) (in
thousands)
15
25
20
20
15
15
20
20
20
10

The marketing manager would like you to perform a regression analysis on the data and
advise him on how to use the regression model to predict sales based on advertising &
promotional expenditure.

Q4 a: State the regression equation and use the Least Square method to estimate the
regression coefficients.
Ans 4a: Using the least square method, We consider:
Sale = X
Expenditure = Y

Sales in a week (units in

thousands) (X)

Advertising expenditure in previous

week (Rs.) (in thousands) (Y)

xy

y2

110

15

1650

225

120

25

3000

625

140

20

2800

400

150

20

3000

400

125

15

1875

225

130

15

1950

225

115

20

2300

400

127

20

2540

400

118

20

2360

400

121

10

1210

100

X= 1256

Y= 180

XY=22685

Regression Equation of X on Y is:

X= a + by
The Two normal equations are:
X =Na + b Y
XY =a Y+ b Y2

Where N= 10, X = 1256, Y= 180,

XY =22685, Y2 = 3240

Substituting the value, we get

1256= 10a+ 180 b
-------------------------------- (1)
22685= 180 a+3400 b ------------------------------- (2)
Multiply the (1) by 10 and subtracting it from (2)
22685 = 180 a + 3400 b
22608 = 180a + 3240b
(-)
(-)
(-)
______________________
77
= 0 + 160b
_____________________
b = 160/77
= 2.08
Putting the value of b in equation (1)
1256 = 10 a+ 180* 2.08
1256 = 10a +374.40
a= 881.60/10
a= 88.16
X = 2.08 + 88.16 Y

Y2=3400

Q4b: Calculate regression coefficient r2 and state its significance.

Ans 4b: Regression of coefficient of X on Y :N.XY- ( X) ( Y)

bxy = __________________
N.Y2 - ( Y)2
10* 22685 1256 *180
= ____________________
10*3400 (180)2
226850 226080
__________________
34000 32400

770
______
1600

0.49

Q4 c: Plot the trend lines estimated and actual values.

Ans 4 c: Computation of Trend Value:
Equation is
X = 128.27 + 0.49y
Putting the value of Y that we get the trend value
For example:
X = 128.27 + 0.49 (y)
128.27 + 0.49 (1)
128.27 + 0.49 = 128.76
Similarly so on
Value of y:

(2) 129.25
(3) 129.74
(4) 130.23
(5) 130.72

(6) 131.21
(7) 131.70
(8) 132.19
(9) 132.68

(10) = 133.17

Q4 d: Predict the sales when advertising expenditure in previous week was

Rs. 10,000.
Ans:
The sales for the Advertisement expenditure of Rs 10000 will be:
X = 2.08 + 88.16 Y
Here Y= 10
So, X = 2.08 + 88.16 (10)

(Here, the data of Expenditure and sales are in 000)

= 881.6 + 2.08
= 883.68
Therefore, the forecasted sales will be Rs 883680

Q4 e: Forecast sales for the next two weeks.

Ans:
Y2

Week no.
(Y)

Sales in a week (units in

thousands)
(X)

XY

110

110

120

240

140

420

150

600

16

125

625

25

130

780

36

115

805

49

127

1016

64

118

1062

81

10

121

Y=55

X=1256

1210

XY=6868 Y = 385

X on Y is:X= a + by
The Two normal equation are:
X =Na + b Y
XY =a Y+ b Y2
Substituting the value, we get
1256= 10a+ 55 b
6868= 55a+385b

---------------------------- (1)
------------------------------- (2)

Multiply the (1) by 7 and subtracting it from (1)

8792 = 70 a + 385b
6868 = 55a + 385b
(-)
(-)
(-)
_______________________
1924 = 15 a + 0
_____________________
b = 1924/15
= 2.08

100
2

Putting the value of b in equation (1)

1256 = 10 128.27+ 55
1256 = 1283 +55b
b= 26.70/55
b= .49
X = 128.27
0-+-+ 0.49 y
Estimating for next to weeks:i. Y=11

ii.

X= 128.27 + .49y
= 128.27 +.49(11)
= 128.27 + 5.39
= 133.66
Y= 12
X= 128.27 + .49y
= 128.27 +.49(12)
= 128.27 + 5.88
= 134.15

Q5: Critically evaluate the following statements:

a.
Interviews introduce more bias than does the use of questionnaires.
Ans 5a: Bias means lack of any independent decision or we can say, the decision is
affected by some personal factor. Questionnaires and interviews may distort the data
because of the presence of bias.
Questionnaire is of two types: Close Ended and Open Ended. Open Ended
Questionnaire can be less prone to Bias but Close Ended Questionnaire is the one
which is the main source to get the view of Respondents.
In the close end Questionnaire, the respondent is required to choose one alternatives
out of the alternatives, he is already given. It is a Bias because, it may be possible that
the alternative, he is going to select has never came to his mind. So Questionnaire
affects the decision of respondent and therefore introduce bias.
But in Interview, the bias can be present, when a Question is asked and also present in
the manner, the Question is expressed to the respondent. Also, race, religion, age,
social class is also one of the Source of Bias in Interview. As "interviewers are human
beings and not machines", so the presence of Bias is obvious.
A number of possibilities for the presence of bias are:

Interviewer can give hint of his opinion and thought through tone of voice, dressing,
appearance, way of asking Question, pausing at certain points or by showing that he is
agree with the respondent and can help respondent to answer in the manner, the
interviewer wants. Interviewer may formulate Questions in the manner that the meaning
may give sense of Answer to the respondent. Also, a boredom or surprise tone of
interviewer may also become a source of Bias.
Though Bias in Interviews can be reduced to a great extent through probability sampling
of respondents, training to Interviewers to be aware of the problems, careful formulation
of Questions to have a clear meaning and matching interviewer characteristics with
those of the sample being interviewed, but basically the characteristics of the Interview is
that they are prone to Bias.
Therefore Interview can introduce bias in numerous ways.
Hence, it is right to say that Interviews introduce more bias than does the use of
questionnaires.
Q5 b: It is never safe to take published data at its face value without knowing its
meaning and limitations.
Ans: Secondary data are those which are already in existence and which have been
collected for some other purpose than the answering of Question in hand.
Data has been already collected by some other, so these are available in the form of
Published and unpublished reports.
For Example, data relating to Indian Railways which are annually published by the
Railway Board would be Secondary data for any researcher.
If any researcher uses the published data, then the source of information can be
Government Publications, Semi Government Publications, Reports of Committees and
Commissions, Publication of Trade Association, Publication of Research Institutions,
Journals and Papers, Publication of Research Scholars, International Publications and
so on But if a researcher uses the published source of data, then he should take care of
it, due to the following reasons:
1. Adequacy of data: As the basic reason of data collection was different form,
what we are using from, so the data cannot be adequate to serve our purpose.
So the Researcher should be aware while using the published data.
2. Accuracy of data: The source of data should be the reliable otherwise the data
can be inaccurate and can spoil the whole research. So the researcher should
first be sure of the accuracy of data, intended to use.
3. Suitability of Data: The data suitable for one reason may not be suitable for
another one, so before using any data, the researcher should first go for a check
that whether the data is suitable to be used as research data. If the researcher
find any difference between the object and scope of data required and the data
obtained through the Published Source, then the data is not suitable for the
present research.

4. Reliability of data: Data reliability can be checked through a no of analysis such

as Who collected the data? What were the sources of data? Were they collected
by using proper method? when the data was collected? What level of accuracy
was needed? Was it achieved? And hence the data reliability can be checked.
So the researcher should be very sure about the above criteria, while using the
Secondary data. And it can be said that It is never safe to take published data at its
face value without knowing its meaning and limitations.

Assignment - B
Q1: Explain the key difference between
A Cluster Sampling & Stratified Sampling
Ans1a: Cluster sampling and stratified samplings are two different sampling
methods. The main difference between sampling and stratified sampling is that a cluster
is treated as sampling unit. Hence in the first stage, analysis is done on a population
of clusters. While, in stratified sampling, the elements within the strata are analyzed.
Difference between cluster and stratified sampling:1. Cluster sampling technique, wherein the naturally occurring groups are selected
for being included in the sample. The main use of cluster sampling is in market
research.
Stratified sampling technique, wherein a sample is divided into stratum and on
random basis, sampling is performed.
2. Cluster sampling can be opted if the group consists of homogeneous members.
Stratified sampling can be opted if heterogeneous members in the groups.
3. The advantages of cluster sampling over other sampling methods are, it is
cheaper as compared to the other methods.
The advantages of stratified sampling are, this method ignores the irrelevant
ones and focuses on the crucial sub populations.
This sampling method also helps in improving the efficiency and accuracy of the
estimation. This sampling method allows greater balancing of statistical power of
tests.
4. The main disadvantage of cluster sampling is, it introduces higher sampling
error. This sampling error can be represented as design effect.
The disadvantages of this sampling method are, it requires choice of relevant
stratification variables which can be tough at times. When there are homogeneous
subgroups, it is not much useful. Its implementation is expensive. If not provided
with accurate information about the population, then an error may be introduced.
Q1 b: Single & Multiple Cross Sectional Sampling
Ans: Cross Sectional Sampling means researcher collects the data on relevant
variables one time only from a variety of people, subjects or phenomenon, instead of,
collecting at various points of time to ensure the comparison of data collected and to see
any variations due to the time gap and relevant changes in the sampling.
In the Cross Sectional Sampling, data are collected all at the same time (or in a short
span of time)

It provides a picture of variables at one particular point of time and analyse that how the
variables are represented in a cross section of population. This sampling uses Survey
technique to gather data such as Census data.
Single Cross Sectional Sampling: Single Cross sectional Sampling means only one
sample is drawn for the population and information is obtained from this sample at one
point of time, which is the basic feature of Cross Sectional Sampling.
Means only one sample is used for information gathering and all information are
gathered at a single point of time.
Multiple Cross Sectional Sampling: Multiple Cross Sectional Sampling means two or
more samples are drawn from the population to gather information but at a single point
of time. Means the sample will be analyzed only once to gather information.
So, multiple Cross Sectional Sampling do not allow comparison.
So the basic difference between Single Cross Sectional sampling and Multiple Cross
Sectional Sampling is that how many samples are used to be analyzed.
In Single Cross Sectional Sampling, only one sample is drawn from Population. But in
Multiple Cross Sectional Sampling, two or more samples are used to gather information.
And the Cross sectional sampling, whether single or multiple, will have a common
constraint that it do not allow to have comparison or change analysis.
Q2: Answer the following for Business Reports
a.
Explain the difference between Synopsis and Executive Summary.
Ans 2a:
Synopsis:A general view, or a collection of heads or parts so arranged as to exhibit a general view
of the whole; an abstract or summary of a discourse; a syllabus; a conspectus.
Condensation, outline and summary of the main points of an article, book or plan. Unlike
an abstract, a synopsis maintains the point by point sequence of the salient, ideas.
Synopsis is not the summary of whole article but just tells that what the article contains
on the whole. Means what are the contents of Article, what topics are going to be
covered in the article.
While Executive Summary gives the summary of article and tells that what is the
important points in the topics covered in the article.
Executive summary:An executive summary is an overview. The purpose of an executive summary is to
summarize the key points of a document for its readers, saving them time and preparing
them for the upcoming content.
Think of the executive summary as an advance organizer for the reader. Above all else,
an executive summary has to be clear and concise.

The executive summary provides the reader with an overview of the reports essential
information. It is designed to be read by people who will not have time to read the whole
report or are deciding if this is necessary; therefore, in executive summary you need to
say as much as possible in the fewest words.
The executive summary stands as an overview at the front of the report but it is also
designed to be read alone without the accompanying report; therefore, you need to
make sure it is self sufficient and can be understood in isolation. It is usually written last
(so that it accurately reflects the content of the report) and is usually about two hundred
to three hundred words long (i.e. not more than a page).
Q2 b: Describe the characteristics & contents of the following sections of a report:
Problem Definition, Data Analysis, Conclusions & Recommendations
Ans 2b:
Problem Definition:
Problem definition is the key component of any research. Problem should be properly
defined in the Business research report that for what we going to research.
Problems are from two perspectives: one is management problem and the other one is
researchers problem.
Problem definition is a process involving a no of steps and in the Research report, it is to
mention that how the steps are followed and what informations are gathered during
these steps.
The Steps involved in Problem Definition Process are:
Ascertain the Decision Makers Objective
Understand the Background Of problem
Isolate and identify the problem not the symptoms
Determine the Unit of Analysis
Determine the relevant variables
State the research Questions and Research Objectives
All these steps are followed to state the research Questions and Research Objectives.
Decision makers Objective means the Management Objective. So if the management
decision is a new product should be introduced, then the researcher should first
ascertain the Objective of Decision maker and then to formulate its own Problems, such
as whether the market will accept the product or not.
Also, a number of Questions arise in the Problem Definition phase, such as Whether
Hypothesis is required or not? Whether the research is required for this problem or not?
So Problem Definition Section of Business Research Report includes the Following:
What is the purpose of the study?
How much is already known?
Is additional background information necessary?
What is to be measured? How?
Can the data be made available?
Should research be conducted?
Can a hypothesis be formulated?

And a no of such criterias depending upon the nature of problem.

Data Analyis:
Data Analysis is the next step after the Collection of data and involves a no of things,
such as:
Editing of data: Data gathered will be now Edited to remove errors, omissions
from the raw data and make changes, wherever possible. It will ensure that the
data is free from errors and there are no discrepancies in the data, which we are
going to be analyzed.

Classification of data, according to Attributes, according to class intervals:

After Data Editing, Data will be classified as per the common characteristics, in
case of classification by attributes. And data classification can be descriptive,
such as sex, literacy or religion or numerical, such as weight, height, Income etc
And, in classification according to class intervals and such Quantitative data is
known as Statistics of variables and are classified on the basis of class intervals.

Tabulation of data: tabulation can be done as simple or complex tabulation. It

can be helpful to save space, to remove errors and omissions, facilitates
comparison and can be used for various statistical computations.

And then a no of data Analysis methods are employed for the proper data analysis, such
as Qualitative data Analysis and Quantitative Data Analysis
Quantitative data Analysis helps to express the data in numerical form and Qualitative
data analysis helps to know what the Qualitative data will be used for. Means a
descriptive analysis will be done through mean, standard deviations etc.
Qualitative analysis is less influenced by Bias than the Quantitative analysis. The
greatest limitation of the qualitative approach is that the findings that are reported tend to
be unreliable and hard to replicate.
The qualitative approach is subjective and impressionistic, and so the ways in which the
information is categorized and then interpreted often differ considerably from one
investigator to another.
In the Quantitative analysis various measures of central tendency like mean, median,
mode and various measures of dispersion such as Range, Mean Deviation, Standard
Deviation and Quartile Deviations are used to analyze the data and to gather information
from them.
Conclusions and Recommendation:
Conclusion is the last step of Research Process and it includes to form a formal report
of, what we have done in research and what are the findings and conclusion from the
research and a proper format is used to write all the findings. It is the most important part
of the research process because all the steps which are followed practically are now
recorded on paper and all steps and its findings are recorded here.
Now, the conclusion section of Business Research report states that whether the
research is successful and what are the recommendations. Conclusion section
summarize the whole research and give comments on it. And can be expressed as:

 The research has found that.

The following conclusion can be drawn from the present research
The results of the Research show that
So the conclusion section gives the final comment for the whole research process.
Conclusion is necessary because, until we do not reach at any conclusion, whole
working is a waste and therefore conclusion is the most important and crucial section of
the Business Research report.
Recommendation sometimes included in the beginning of the report.
Recommendations give the comment for the further research and its methodology or it
sometimes explains that how the research will be continued. Recommendation can be
given in the following manner:
This research has thrown up many questions in need of further investigation.
Further work needs to be done to establish whether......
It is recommended that further research be undertaken in the following areas:
Further experimental investigations are needed to estimate......
Therefore the conclusion and recommendation is the crux part of any Business
Research report
Q3: State the researchers problem for each of the following management decision
problem:
a.
Should a new product be introduced?
Ans 3a: The management decision for the introduction of new product will raise a
number of Questions for the Researcher and thus these are the researchers question:
- What are the products that business is currently selling?
- Whether the market will adopt the new introduction of product?
- Why the management is going to introduce new product?
- Whether we are going for expansion?
- Who can become our Competitors for this product?
- What are the substitutes of this product in the market?
- Whether we have already market for this product or will need to build up?
- Whether it can feasible to introduce the product?
A number of other Research Questions can be raised by the researcher for one
Management Decision Problem.
Q3b: Should advertising campaign which has run for three years be changed?
Ans: Advertising campaign is to increase the sales trend and if the management
decision problem is to whether to change the advertising campaign, then the associated
Research Problem will be:
-

What is the current advertising campaign?

Whether the advertisement campaign is benefitting us in any way or not?
What is our sales trend, it is increasing or decreasing?

Whether cost benefit analysis is taken care of or not in the present advertising
campaign?
What is the strategy of the competitors in the advertising?
Effect of the changed advertising campaign on the sales?
New sales trend after the change?
So the above mentioned are the research problems, for which answers are to be
found out by the researcher.

Q3c: What pricing strategy should be adopted for a new product?

Ans 3c: There are various arguments for new product price strategy and we described
for low prices or high prices strategy.
Advantage of Low Prices
A lot of entrepreneurs I speak to favor low pricing when launching a new product, almost
as if by default.
The main advantage of charging low prices is that you may attract a lot of customers.
And if you price your product low enough e.g. lower than all of your competitors, a la
Walmart you may be able to steal market share from existing competitors.
The reason I say this may work is because your low pricing may not provide you with
enough profit/sale cushion to acquire a customer profitable via advertising and
marketing. Instead, you may be going negative on every new customer and thats a
tough way to launch a new product before you fully understand the lifetime value of your
customer.
As you can probably tell, I dont like this strategy (unless you have deep pockets and/or
you have a recurring revenue model). Weve had much more success launching
products with high prices typically higher than our competitors.
Advantages of High Prices
1. With higher prices, you can afford to spend more in advertising and marketing costs
to acquire a new customer at break-even or slight profit. This gives you more room for
error with your initial customer acquisition efforts, and it also allows you to scale your
advertising. Scaling advertising via premium pricing (ability to absorb high cost/sale) is a
much more powerful strategy for building market share than playing price limbo.
2. If you price high, you can earn more profit/sale. Sometimes its important to
remember that were all in business to earn profit, and premium pricing makes that
easier.
3. By charging premium prices, you position your company as a premium brand and
attract higher quality customers who have less price resistance, provide fewer customer
service headaches, and can afford to buy additional products and services from you.
So price strategy should adopt as per product, segment and geography location.

Q3d: Should the compensation package be changed to motivate the sales force?
Ans: Yes. As good sales managers I would suggest that compensation package should
be high standard for sales motivation. Sales compensation is a crucial factor in their
motivation, but other factors impact motivation, too.
There is one truism among salespeople that is universal if they feel that they cannot
control the factors that contribute to their success and sales compensation, they will be
frustrated, de-motivated and find a new employer.
Gross Revenue vs. Gross Margin Ah, the Eternal Struggle
Now, I know all you financial-types out there are thinking that this can be a very good
model. And, in some instances, I might even agree that you might be right. But this is not
one of them. And here's why.
Our sales guy has no control of the project once it is sold. If the project goes over budget
for some unforeseen reason, he has no control. The project managers do not report to
him nor do any of the implementation team. Once the sale is made, he is out of the
picture and powerless as to the outcome, and certainly the profitability of the project. Yet
under the new compensation plan, his very income is based on just that.
Keep Salespeople Top-Line Focused
I think sales compensations should be top-line focused. Sure, there are exceptions to
every rule and I'm not saying that you should suspend salespeople from good financial
management decisions, or that the sky is the limit on sales expense accounts, for
example. But I am saying that in the 25 years I have been selling, managing salespeople
and recruiting salespeople, most, if not all, are top-line driven and that's a good thing.
They reach for their numbers they try to hit their quotas. Give them the figures and let
'em go. They are independent in nature, for the most part, and don't mind the
responsibility of having a quota. It's in their blood.
Keep Your Eye on the Bottom Line
If you allow your salespeople to keep a keen eye on the top-line, my suspicion is that
your bottom line will take care of itself. If you have cost overruns in other departments,
then it's your challenge as a business owner or manager to fix those things. But, don't
make your salespeople pay for it or you'll pay for it by losing your best salespeople.

Case study
The automobile manufacturer Mahindra & Mahindra came out with a new Sports Utility
Vehicle (SUV) SCORPIO. This was at a time when the company was financially drained
out and the market was saturated with SUMO SAFARI AND TOYOTA QUALIS. Due to
these reasons the manufacturers were skeptical about investing in new production
facilities, although the distributors urged the manufacturers to build more vehicles. The
other reason was also the price of the vehicle when it first came out on the market which
ranged from Rs. 6, 60,000 to Rs. 8,50,0000.
The bad years of Mahindra had taught the management to be more risk averse than risk
prone. The manufacturers are performing well again and investing in new ventures.
Would the demand follow in the long term or would customers stop demanding
Scorpio when the next fad comes along? The lack of diversification and the high cost
base had affected the company adversely in the past. Thus the management was afraid
that the decision to invest was too early. On the other hand, investing would help
Mahindra & Mahindra to expand and become the market leader in this particular
segment.
A study was conducted in 2 metros of the income group of the customers who bought
SCORPIO which is as follows:
METRO (CITIES)

INCOME-GROUPS

DELHI
MUMBAI
TOTAL

RICH
10
40
50

TOTAL
MIDDLE
30
120
150

POOR
160
140
300

200
300
500

In light of these developments of Mahindra & Mahindra answer the following:

Q a): Define the Management Decision Problem and the Researchers Problem
Respectively.
Ans a: The Management Decision Problems and Researchers Problem as per above
case:
1) Whether to introduce SCORPIO in the market?
Now in regard to the above management Decision problem, the research
problems are:
What is the current market share of the Vehicles, already available in the
market?
Why Mahindra & Mahindra is introducing SCORPIO in the market?
What is the performance of Mahindra & Mahindra in the past?
Whether Distributors are demanding SCORPIO, a new vehicle?
Whether Investment will be fruitful or not?
2) What will be the price for the SCORPIO?
The price is the main criteria for any product success or failure. The research
problems for this management decision problem will be:
What is the pricing strategy of competitors adopted in the market?
What is the cost of production and marketing (COGS)?
What is the pricing objective means to cover the variable cost or to make
profit?
Are there any norms in the marketplace for pricing strategy?

Such as Mahindra & Mahindra has set the price to be in range of Rs 660000 to Rs
850000, then whether the price range is right or not?
3) What is the Cost Benefit and Risk Scenario?
The management Decision problem for the risk assessment and Cost benefit
analysis is of vital importance and need to do some research. So the Research
problems will be:
Whether it is feasible to introduce and sell SCORPIO in the market?
What is the assessment of risk in regard to this new venture?
What are the Sources of study for risk assessment?
What are the chances to capture the market and to become market
leader?
Ques b): State the research question and formulate the associate hypothesis.
Ans: Research Questions are formulated to solve the Management Decision Problem.
But to research for the Research Questions, some Analysis or Testing is required say,
Hypothesis.
Hypothesis is a hunch, assumption, suspicion, assertion or an idea about a
phenomenon, relationship or situation, the reality or truth of which you do not know. A
researcher calls these assumptions/ hunches hypotheses and they become the basis of
an enquiry.
Hypothesis test is used to know, whether the hunch or the assertion is right or not?
Suppose, the Research Question is
What is the current market share of the Vehicles, already available in the
market?
So, the researcher will formulate hypothesis test to solve the research Question. The
data collected for the test will be:
The no of vehicles sold in a particular market
Frequency of vehicles sold in a particular point of time.
It will tell that how much is the Market share of vehicles, already available in the
market.
As, in the recent case, it is observed that Sumo SAFARI and TOYOTA QUALIS enjoy a
good market share and SCORPIO has to compete with these products.
Similarly, the Management Problem is:
What will be the price of SCORPIO?
What is the price of competing products?
So that it can be ascertain that what should be the price for SCORPIO so that it can
sustain in the market.
Thats why; the range is set to be Rs 660000 to Rs 850000
Hypothesis testing takes the data to ensure that, the assertion is right or not by setting a
null hypothesis and if the null hypothesis proves to be valid, then the assertion is also
valid otherwise the assertion is wrong and thus the answer for the Research problem
can be obtained.

Ques c): What type of research has been conducted by the researcher by the
management to come up with a decision? Justify your answer.
Ans: Researcher needs to research the findings in a conclusive manner that:
- Whether to introduce Scorpio or not?
- What will be the pricing Strategy?
- How much risk is associated?
- Is the new venture economically feasible?
So, the researcher needs to do an in-depth study of all the aspects, in order to find the
solutions for Research problems, mentioned earlier.
In the Conclusive research, the Researcher uses the Hypothesis test to examine the
relationship and also the Information needed are clearly defined, such as the pricing
strategy, competitors moves and so on. And also, the outcome is always conclusive. All
characteristics are present in the new venture for the conclusive research.
And, hence, the researcher has done the Conclusive research to help the management
to come up with a decision of introducing SCORPIO in the market.
Ques d): Critically evaluate reasons for collecting the income of the customers
and the type of sampling design used by Mahindra & Mahindra.
Ans: Income data collection of the customers is necessary to ascertain that whether the
customers are interested in the product and if interested, then upto which level?
- Can the customer relationship can be build for long term?
- What will be the Demand Forecast in the Future for Scorpio?
- Whether it is the right time to invest in New Venture?
All these Questions can be answered through the Income level of Customers and their
Buying Habits. Because, purchasing power and Buying Habits are two perspectives,
which will help to ensure that the customers will take the product or not?
Purchasing power means the Income level of Customers tells that whether the Product
falls within their Budget or not?
And the Buying habits tell that whether they are interested in the Product or not?
Answer to all the Questions will help to come to the Management Decision that whether
to introduce the product or not?
Descriptive Design is the type of Conclusive Design and it is preplanned and structured
design, which is used here to collect the data for Income Goups of Customers.
Descriptive Design describes the characteristics of relevant groups such as Consumers,
Salespeople, and Market Area. Here, the Income data of Customers are analyzed and it
is a descriptive type Research Design used here by Mahindra & Mahindra.

Ques e): Provide your recommendations for Mahindra & Mahindra and justify the
research methodology you will undertake in light of the above developments?
Ans: Research methodologies are very important for a researcher to consider, having
Exact solution of Research Questions and problems. The Research Methodologies
analyze the Research Question from a no of Perspectives like:
Here, in the present Context of Mahindra & Mahindra, the researcher need to answer a
no of Questions, which are stated earlier, and needed to adopt some Research Methods
and Methodologies.
As far as the Justification of Research Methodologies is concerned, the Researcher is
going right.
Such as, the Past experience of Mahindra & Mahindra reveals that the Business should
go for Risk Averse way instead of being Risk Prone. And, if the Research Solutions
comes out that the new venture has lower risk, then the Methodology is going right and
thats why, Mahindra & Mahindra is going for investment in the new venture.
The research methodology gives us the scientific tools to adopt and consider the
methods, material and techniques, and with the Research Methodology, the researcher
has used the Income data of customers in the metro cities to evaluate the Sales criteria
and its continuity in the future.
So, our recommendation for the methodologies adopted by the Mahindra & Mahindra is
right in the present context.

Assignment - C
S.no

Question

Research
comprises of
defining problems

Research
objective
determines

Analytical
Research has to
Which of the
following is an
example of
fundamental
research

Qualitative
research aims at

Empirical research
Research in the
social sciences is

Research problem
has to be
evaluated

10

11

12
13

Research is
While selecting a
research problem,
one has to
consider
Research
objective has to
made after
considering

Research
objective should
A good research
should

Option (a)

Option (c)

Option (d)

& not suggesting

solutions

& manipulation
of existing data
& symbols

& suggesting
solutions

the frequency
with which
something does
not occurs
use facts
already
available

the frequency
with which
something
occurs
doesn't use
facts already
available

it has nothing
to do with
frequency
use facts
which are
obsolete

& manipulation
of existing data
it is
associated
with
something
else

does not
concerns the
study of human
behavior

not in light of
financial
resources &
time available

concerns the
study of
human
behavior
finding out
how people
feel or think
about a
particular
subject
is not a
database
research
hypothesis
testing
in light of
financial
resources but
not time
available

necessary for
collecting
information for
economic &
social structure

non availability
of the data

not finding out

how people feel
or think about a
particular
subject
is purely
database
research
conclusive

research design
not be
ambiguous but
can be
incomplete
be non
reproducible

Option (b)

not aimed at
certain
conclusions
finding out how
people feel but
doesn't think
about a
particular
subject

has to survey
the facts

doesn't require
any proof

is mainly
hypothesis
testing
finding out how
people think
but doesn't feel
about a
particular
subject
doesn't have
any control
over variables

applied

descriptive

not necessary
for collecting
information for
economic &
social structure

in light of time
available but
not financial
resources
necessary for
collecting
information for
economic but
not social
structure

in light of
financial
resources &
time available
necessary for
collecting
information for
social but not
economic
structure

the availability
of the data

the non ethical

issues

the format

research
question

research
proposal

sample design

not be
ambiguous &
incomplete
give us the
same result

be ambiguous
& incomplete
should not
have the same

be ambiguous
& not
incomplete
be
reproducible

characteristics

14

Descriptive
Research means

16

Survey research
incorporates
All the methods
which are used by
the researcher are
known as

17

Research
methodoly

15

18

19

20

21
22

Formulation of
research problem
Study of the
market potential is
the type of
To define a
problem correctly,
it is necessary for
a researcher
The objective of
Exploratory
research
Major sources of
references are

23

Research design

24
25

Research design
A good research
Design should be

26

Good Research
Design is

27

28

29

Qualitative
attributes
Height depends on
age, thus height is
a
Purchase of
designer clothes
by a lady is

has nothing to
do with facts

do with
formulations

study of census

study of
population &
sample

research design
does not
enables
consumers to
make choices
should not follow
sequential
pattern

research
methods
enables
consumers not
to evaluate
situations

fact finding
research
neither the
study of
population nor
the sample

sample design
enables
consumers to
make choices

do with
conclusions

not the study

of population

data
processing

should not be
specific

should not be
a theory only

is inadequate
must follow a
sequential
pattern

quantitative
research

qualitative
research

descriptive
research

exploratory
research

should not look

at internet or
journals

to not to look at
previous studies

not to know
what the
problem is

to know what
the problem
is

is to describe
internet but not
websites
constitutes the
guidelines for
collection of
data

is to explore
not internet &
websites
doesn't include
the guidelines
for collection of
data

is to diagnose
internet &
websites

is to conclude
websites but
not internet

should not be
explicit

data is not
necessary

collection of
data is not
necessary
should have
the final
analysis of
data

doesn't include
the guidelines
for study
should not
have the final
analysis of
data

time consuming
not related to
the objective of
the research
problem
are not
quantified on the
basis the
concerned
attributes of the
study

economical
related to the
objective but not
the research
problem
can not be
quantified on
the basis of
concerned
attributes of the
study

uneconomical
related to the
research
problem but
not objective

inefficient
related to the
objective of
the research
problem

are quantified
on the basis of
concerned
attributes of
the study

can be a
secondary
data

not a variable

dependent
variable

a number

independent
variable

her purchasing
power

only taste

only
preference

Friend's
decision

dependent upon

one dependent
and no
independent

no dependent
and no
independent

one dependent
and one
independent

one
independent
and no
dependent

the formulation
of the problem

the solution of
the problem

identification
of the
problem

investigation of
the problem

32

Research
hypothesis must
contain at least
The main purpose
of the exploratory
research study is
the
Hypothesis stated
by earlier
researchers

shouldn't be
reviewed

should be
reviewed

is irrelevant

33

The object of a
survey is to obtain

look at the old

ideas

already proven
ideas

only
qualitative
data

34

Descriptive
Research

is concerned
with describing a
particular group

is concerned
with describing
a particular
phenomenon

35

Diagnostic
research studies

the industries

the markets

requires a clear
cut definition of
the population

requires a clear
cut definition of
the sample

is concerned
with exploring
a particular
phenomenon
doesn't study
society as
whole
requires a
clear cut
definition of
the census

structured
questionnaire
brochure

unstructured
questionnaires
document

case study
agreement

supposition

a brief

a fact

has to be
surveyed

has to be
described

to be tested

30

31

36

37
38
39

40

Diagnostic
research studies
The best
instrument for
collecting primary
data is
Research plan is a
hypothesis simply
means
To determine
validity, hypothesis
has

interviews
book
not a
supposition

not to be tested

should be
tested
new ideas
relating to the
research
problem
is not
concerned with
exploring a
particular
phenomenon
the society as
a whole
requires a
clear cut
definition of the
sampling unit