Page 35 - DMGT404 RESEARCH_METHODOLOGY

Unit 3: Research Design

In example 1: The research question is posed to determine "What benefit do people seek from the Notes
Ad?" Since no previous research is done on consumer benefit for this product, it is not possible
to form any hypothesis.
In example 2: Some information is currently available about packaging for a soft drink. Here it
is possible to formulate a hypothesis which is purely tentative. The hypothesis formulated here
may be only one of the several alternatives available.
In example 3: The root cause of customer dissatisfaction is known, i.e. lack of personalised
service. In this case, it is possible to verify whether this is a cause or not.
3.2.3 Formulation of Hypothesis in Exploratory Research

The quickest and the cheapest way to formulate a hypothesis in exploratory research is by using
any of the four methods:

1. Literature Search: This refers to "referring to a literature to develop a new hypothesis".
The literature referred are – trade journals, professional journals, market research finding
publications, statistical publications etc. For example, suppose a problem is "Why are
sales down?" This can quickly be analysed with the help of published data which should
indicate, "whether the problem" is an "industry problem" or a "firm problem". Three
possibilities exist to formulate the hypothesis.
(a) The company's market share has declined but industry's figures are normal.

(b) The industry is declining and hence the company's market share is also declining.
(c) The industry's share is going up but the company's share is declining.
If we accept the situation that our company's sales are down despite the market showing
an upward trend, then we need to analyse the marketing mix variables.

Example:
(a) A TV manufacturing company feels that its market share is declining whereas the overall
television industry is doing very well.

(b) Due to a trade embargo imposed by a country, textiles exports are down and hence sales
of a company making garment for exports is on the decline.
The above information may be used to pinpoint the reason for declining sales.

2. Experience Survey: In experience surveys, it is desirable to talk to persons who are well
informed in the area being investigated. These people may be company executives or
persons outside the organisation. Here, no questionnaire is required. The approach adopted
in an experience survey should be highly unstructured, so that the respondent can give
divergent views.

!
Caution Since the idea of using experience survey is to undertake problem formulation,
and not conclusion, probability sample need not be used. Those who cannot speak freely
should be excluded from the sample.

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