Page 44 - DMGT404 RESEARCH_METHODOLOGY

Research Methodology

Notes (d) The greatest advantage of panel data is that it is analytical in nature.
(e) Panel data is more accurate than cross-sectional data because it is free from the error
associated with reporting past behaviour. Errors occur in past behaviour because of
time that has elapsed or forgetfulness.

Disadvantages of Panel Data

(a) The sample may not be representative. This is because sometimes, panels may be selected
on account of convenience.
(b) The panel members who provide the data, may not be interested to continue as panel
members. There could be dropouts, migration, etc. Members who replace them may differ
vastly from the original member.
(c) Remuneration given to panel members may not be attractive. Therefore, people may not
like to be panel members.
(d) Sometimes the panel members may show disinterest and non-committed.
(e) A lengthy period of membership in the panel may cause respondents to start imagining
themselves to be experts and professionals. They may start responding like experts and
consultants and not like respondents. To avoid this, no one should be retained as a member
for more than 6 months.
2. Cross-sectional Study: Cross-sectional study is one of the most important types of
descriptive research, it can be done in two ways:

(a) Field study: This includes a depth study. Field study involves an in-depth study of a
problem, such as reaction of young men and women towards a product.

Example: Reaction of Indian men towards branded ready-to-wear suit. Field study is carried
out in real world environment settings. Test marketing is an example of field study.
(b) Field survey: Large samples are a feature of the study. The biggest limitations of this
survey are cost and time. Also, if the respondent is cautious, then he might answer
the questions in a different manner. Finally, field survey requires good knowledge
like constructing a questionnaire, sampling techniques used, etc.

Example: Suppose the management believes that geographical factor is an important
attribute in determining the consumption of a product, like sales of a woolen wear in a particular
location. Suppose that the proposition to be examined is that, the urban population is more
likely to use the product than the semi-urban population. This hypothesis can be examined in a
cross-sectional study. Measurement can be taken from a representative sample of the population
in both geographical locations with respect to the occupation and use of the products. In case of
tabulation, researcher can count the number of cases that fall into each of the following classes:
(i) Urban population which uses the product - Category I

(ii) Semi-urban population which uses the product - Category II
(iii) Urban population which does not use the product - Category III
(iv) Semi-urban population which does not use the product - Category IV.
Here, we should know that the hypothesis need to be supported and tested by the sample data
i.e., the proportion of urbanities using the product should exceed the semi-urban population
using the product.

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