Tag: University of Mumbai BMS Notes

Set off of losses means adjusting the losses against the profit/income of that particular year. Losses that are not set off against income in the same year, can be carried forward to the subsequent years for set off against income of those years. A set-off could be:

1. An intra-head set-off
2. An inter-head set-off

1. Intra-head Set Off

The losses from one source of income can be set off against income from another source under the same head of income.

For eg: Loss from Business A can be set off against profit from Business B where Business A is one source and Business B is another source and the common head of income is “Business”.

Exceptions to an intra-head set off:

1. Losses from a Speculative business will only be set off against the profit of the speculative business. One cannot adjust the losses of speculative business with the income from any other business or profession.
2. Loss from an activity of owning and maintaining race-horses will be set off only against the profit from an activity of owning and maintaining race-horses.
3. Long-term capital loss will only be adjusted towards long-term capital gains. Interestingly, a short-term capital loss can be set off against long-term capital gain or short-term capital gain.
4. Losses from a specified business will be set off only against profit of specified businesses. But the losses from any other businesses or profession can be set off against profits from the specified businesses.

2. Inter-head Set Off

After the intra-head adjustments, the taxpayers can set off remaining losses against income from other heads.

Eg. Loss from house property can be set off against salary income

Given below are few more such instances of an inter-head set off of losses:

1. Loss from House property can be set off against income under any head
2. Business loss other than speculative business can be set off against any head of income except income from salary.

One needs to also note that the following losses can’t be set off against any other head of income:

1. Speculative Business loss
2. Specified business loss
3. Capital Losses
4. Losses from an activity of owning and maintaining race-horses

Carry forward of losses

After making the appropriate and permissible intra-head and inter-head adjustments, there could still be unadjusted losses. These unadjusted losses can be carried forward to future years for adjustments against income of these years. The rules as regards carry forward differ slightly for different heads of income. These have been discussed here:

Losses from House Property:

• Can be carry forward up to next 8 assessment years from the assessment year in which the loss was incurred
• Can be adjusted only against Income from house property
• Can be carried forward even if the return of income for the loss year is belatedly filed.

Losses from Non-speculative Business (regular business) loss:

• Can be carry forward up to next 8 assessment years from the assessment year in which the loss was incurred
• Can be adjusted only against Income from business or profession
• Not necessary to continue the business at the time of set off in future years
• Cannot be carried forward if the return is not filed within the original due date.

Speculative Business Loss:

• Can be carry forward up to next 4 assessment years from the assessment year in which the loss was incurred
• Can be adjusted only against Income from speculative business
• Cannot be carried forward if the return is not filed within the original due date.
• Not necessary to continue the business at the time of set off in future years

Specified Business Loss under 35AD:

• No time limit to carry forward the losses from the specified business under 35AD
• Not necessary to continue the business at the time of set off in future years
• Cannot be carried forward if the return is not filed within the original due date
• Can be adjusted only against Income from specified business under 35AD

Capital Losses:

• Can be carry forward up to next 8 assessment years from the assessment year in which the loss was incurred
• Long-term capital losses can be adjusted only against long-term capital gains.
• Short-term capital losses can be set off against long-term capital gains as well as short-term capital gains
• Cannot be carried forward if the return is not filed within the original due date

Losses from owning and maintaining race-horses:

• Can be carry forward up to next 4 assessment years from the assessment year in which the loss was incurred
• Cannot be carried forward if the return is not filed within the original due date
• Can only be set off against income from owning and maintaining race-horses only

Points to note:

1. A taxpayer incurring a loss from a source, income from which is otherwise exempt from tax, cannot set off these losses against profit from any taxable source of Income
2. Losses cannot be set off against casual income i.e. crossword puzzles, winning from lotteries, races, card games, betting etc.

Wealth tax is imposed on the richer section of the society. The intention of doing so is to bring parity amongst the taxpayers. However, wealth tax was abolished in the budget of 2015 (effective FY 2015-16) as the cost incurred for recovering taxes was more than the benefit is derived. Abolishing the wealth tax also simplified the tax structure. As an alternative to the wealth tax, the finance minister hiked the surcharge from 2% to 12% for the super rich section. Individuals with an income of above Rs.1 crore and companies with an income of over Rs.10 crore fall under the ambit of the super-rich segment.

Wealth tax is applicable to individuals, HUFs, and companies. The deciding factor for applicability of wealth tax is the residential status. The thumb rule is the resident Indians are subject to wealth tax on their global assets. However, NRI’s fall under the ambit of wealth tax for the assets held in India.

If the total net wealth of an individual, HUF or company exceeds Rs. 30 lakhs, on the valuation date, tax @1% will be leviable on the amount in excess of Rs. 30 lakhs.  Every person whose net wealth exceeds such limit shall furnish a return of net wealth. The due date is same as that of Income tax return.

Components of Wealth

Assets:An asset is a resource which is held and has future economic benefit

1. Any building or land appurtenant whether used for residential/ other purposes, but doesn’t include:
2. House allotted by accompanying/ employer to be used exclusively for residential purposes, where the gross total salary of the assessee is less than Rs.10 lakhs
3. House which forms part of Stock in trade
4. House occupied by the assessee for business/ professional purpose
5. Residential property let out for minimum of 300 days in the previous year
6. Property in the nature of commercial establishment or complex
7. Motorcars, other than those used for running them on hire or those held as stock in trade
8. Jewellery, bullion, furniture, utensils or other articles made fully/ partly of gold, silver, platinum or such precious metals
9. Yachts, boats and aircrafts other than those used for commercial purpose
10. Urban land situated in the Specified area, other than:
11. Those classified as agricultural land and used for such purpose
12. Those in which building construction is not permissible
13. Land occupied by building, which was constructed with the approval of the appropriate authority
14. Unused land held by assessee for industrial purposes for a period of 2 years from the date of acquisition.
15. Land held by the assessee as stock in trade for over 10 years from the date of acquisition
16. Cash in hand in excess of Rs. 50,000

Deemed Assets: These are assets, though not legally belonging to the assessee, are clubbed as his assets while computing his net wealth

1. Assets transferred to Spouse otherwise than in connection with agreement to live apart.
2. Assets transferred to a person/ Association of Persons for the immediate or deferred benefit of assessee or spouse.
3. Assets transferred to son’s wife.
4. Assets transferred to a person/ Association of Persons for the immediate or deferred benefit of son’s wife.
5. Assets held by minor child other than those acquired using the skills of minor or those belonging to a minor with disability.
6. Interest of assessee in the asset of a firm/association of people where he is a partner or member.
7. Self-acquired property that is converted as the property of the family/transferred with inadequate consideration.
8. Assets transferred under revocable transfer.
9. Gift of money made in books maintained by assessee, by way of mere book entries.

• Impartible assets held by assessee
• Building allotted to assessee under a Homebuilding scheme.
• Building in which a person is allowed to take/ retain possession in part performance of a contract.
• Building for which assessee has acquired the rights.

Exempted Assets: Assets which are not considered as a part of wealth for the computation of wealth tax

1. Property held under trust/ for the purpose of charitable/religious purposes.
2. Interest in coparcenary property of Hindu Undivided family.
3. Jewellery in possession of ruler not being his personal property.
4. Money/Asset brought by a person of Indian origin/by an Indian citizen.
5. In case of an Individual/HUF, a house/ part of house or plot of land not exceeding 50sq.mtr in area.

Wealth tax Rules

According to Wikipedia, Exploratory research is carried out for a difficulty which has not been clearly defined. It helps in figuring out the best research design, data collection method and choice of subjects.

It should draw definitive conclusions only with extreme caution. Given its basic nature, it usually concludes that an identified problem doesn’t actually exist. The purpose is to find out ideas and information.

Types of Exploratory Research Design

Some of the more popular methods of exploratory research design include literature searches, depth interviews, focus groups, and case analyses.

Literature Search: It is one of the fastest and least expensive means to discover hypotheses. There is enormous quantity of information available in libraries, via internet sources, in commercial data bases, and so on. The literature search may include newspapers, magazines, trade literature, academic literature, or published statistics from research organizations or governmental agencies Census Bureau.  Example: Assume an issue is “Why are product sales lower?” This can easily be evaluated with the aid of published data which should indicate “whether the issue is an “industry problem” or a “firm problem”.

If we acknowledge the specific situation that our company’s sales and profits are lower regardless of the market showing an up trend, then we must evaluate the marketing mix variables.

Depth Interviews: It’s important to start with a good literature search, but at some point it is desirable to talk to persons who are well informed in the area being investigated. These people could be professionals or persons outside the organisation. Here, we don’t need questionnaire. The approach adopted should be highly unstructured, so that the participant can give divergent views.

Depth interviews are widely used to tap the knowledge and experience of individuals with information strongly related the situation or opportunity at hand. Anybody with related information is a potential candidate for a depth interview, such as existing clients, members of the target market, executives and supervisors of the client organization, sales representatives, suppliers, retailers, and so on.

Focus Group: Yet another frequently used method in exploratory research is the focus group. In a focus group, only a few people are brought together to study and talk over some theme of interest. The discussion is directed by a moderator who is in the room with the focus group participants. The group usually is of 8-12 persons. While choosing these individuals, care must be taken to see that they should have a common background and have comparable experiences in buying. This is certainly needed since there should not be a conflict among the group members on the common problems that are being talked about. Throughout the discussion, future buying attitudes, present buying opinion etc., are collected.

Case Analyses: Researchers can understand a lot in regards to a problem by studying carefully selected examples or cases of the phenomenon. Case histories of businesses that have gone through an identical problem may be available. These case studies are suitable to undertake exploratory research. A researcher must examine carefully the previously published case studies with regard to variables like price, advertisement, changes in the trend, etc.

Examples of Exploratory Research

Literature Search Examples

Example 1: A Washing machine producing firm feels that its share of the market is decreasing whereas the overall industry is thriving.

Example 2: As a result of a trade restriction imposed by a country, auto exports are down and hence sales of a company making cars for exports is on the decline.

The above mentioned information enables you to pinpoint the reason for declining sales.

Depth Interviews

For example, a children’s book publisher obtained useful information regarding a sales decline by speaking with librarians and school teachers who revealed that increasing numbers of people were using library facilities and possibly buying fewer books for their children.

Case Analyses

For example, L.L.Bean is recognized for its exceptional order fulfillment.  Even during the busy Christmas season, the corporation usually fills over 99 % of its orders correctly. For that reason, various other businesses have sought to improve their own order fulfillment by benchmarking L.L.Bean.

This research is conducted to clarify ambiguous problems. In this article, we have discussed about the different types of exploratory research design, its examples, and methods. Post your feedback or queries in comments.

Research Design is defined as a framework of methods and techniques chosen by a researcher to combine various components of research in a reasonably logical manner so that the research problem is efficiently handled. It provides insights about “how” to conduct research using a particular methodology.

Types of Research Design

A researcher must have a clear understanding of the various types of research design to select which type of research design to implement for a study. Research design can be broadly classified into quantitative and qualitative research design.

1. Qualitative Research Design

Qualitative research is implemented in cases where a relationship between collected data and observation is established on the basis of mathematical calculations. Theories related to a naturally existing phenomenon can be proved or disproved using mathematical calculations. Researchers rely on qualitative research design where they are expected to conclude “why” a particular theory exists along with “what” respondents have to say about it.

2. Quantitative Research Design

Quantitative research is implemented in cases where it is important for a researcher to have statistical conclusions to collect actionable insights. Numbers provide a better perspective to make important business decisions. Quantitative research design is important for the growth of any organization because any conclusion drawn on the basis of numbers and analysis will only prove to be effective for the business. 

Further, research design can be divided into five types:

(I) Descriptive Research Design: In a descriptive research design, a researcher is solely interested in describing the situation or case under his/her research study. It is a theory-based research design which is created by gather, analyze and presents collected data. By implementing an in-depth research design such as this, a researcher can provide insights into the why and how of research. 

(II) Experimental Research Design: Experimental research design is used to establish a relationship between the cause and effect of a situation. It is a causal research design where the effect caused by the independent variable on the dependent variable is observed. For example, the effect of an independent variable such as price on a dependent variable such as customer satisfaction or brand loyalty is monitored. It is a highly practical research design method as it contributes towards solving a problem at hand. The independent variables are manipulated to monitor the change it has on the dependent variable. It is often used in social sciences to observe human behavior by analyzing two groups – effect of one group on the other.

(III) Correlational Research Design: Correlational research is a non-experimental research design technique which helps researchers to establish a relationship between two closely connected variables. Two different groups are required to conduct this research design method. There is no assumption while evaluating a relationship between two different variables and statistical analysis techniques are used to calculate the relationship between them.

Correlation between two variables is concluded using a correlation coefficient, whose value ranges between -1 and +1. If the correlation coefficient is towards +1, it indicates a positive relationship between the variables and -1 indicates a negative relationship between the two variables. 

(IV) Diagnostic Research Design: In the diagnostic research design, a researcher is inclined towards evaluating the root cause of a specific topic. Elements that contribute towards a troublesome situation are evaluated in this research design method.

There are three parts of diagnostic research design:

• Inception of the issue
• Diagnosis of the issue
• Solution for the issue

(V) Explanatory Research Design: In exploratory research design, the researcher’s ideas and thoughts are key as it is primarily dependent on their personal inclination about a particular topic. Explanation about unexplored aspects of a subject is provided along with details about what, how and why related to the research questions.

Features of a Good Research Design

The features of good research design is often characterized by adjectives like flexible, appropriate, efficient, economical and so on. Generally, the design which minimizes bias and maximizes the reliability of the data collected and analyzed is considered a good design. The design which gives the smallest experimental error is supposed to be the best design in many investigations. Similarly, a design which yields maximal information and provides an opportunity for considering many different aspects of a problem is considered most appropriate and efficient design in respect of many research problems. Thus, the question of good design is related to the purpose or objective of the research problem and also with the nature of the problem to be studied. A design may be quite suitable in one case, but may be found wanting in one respect or the other in the context of some other research problem. One single design cannot serve the purpose of all types of research problems.

A research design appropriate for a particular research problem, usually involves the consideration of the following factors:

1. The means of obtaining information;
2. The availability and skills of the researcher and his staff, if any;
3. The objective of the problem to be studied;
4. The nature of the problem to be studied; and
5. The availability of time and money for the research work.

A hypothesis is a tentative statement about the relationship between two or more variables. It is a specific, testable prediction about what you expect to happen in a study. For example, a study designed to look at the relationship between sleep deprivation and test performance might have a hypothesis that states, “This study is designed to assess the hypothesis that sleep-deprived people will perform worse on a test than individuals who are not sleep-deprived.”

Hypothesis Used in the Scientific Method

In the scientific method, whether it involves research in psychology, biology, or some other area, a hypothesis represents what the researchers think will happen in an experiment.

The scientific method involves the following steps:

1. Forming a question
2. Performing background research
3. Creating a hypothesis
4. Designing an experiment
5. Collecting data
6. Analyzing the results
7. Drawing conclusions
8. Communicating the results

The hypothesis is what the researchers predict the relationship between two or more variables, but it involves more than a guess. Most of the time, the hypothesis begins with a question which is then explored through background research. It is only at this point that researchers begin to develop a testable hypothesis.

In a study exploring the effects of a particular drug, the hypothesis might be that researchers expect the drug to have some type of effect on the symptoms of a specific illness. In psychology, the hypothesis might focus on how a certain aspect of the environment might influence a particular behavior.

Unless you are creating a study that is exploratory in nature, your hypothesis should always explain what you expect to happen during the course of your experiment or research.

Remember, a hypothesis does not have to be correct. While the hypothesis predicts what the researchers expect to see, the goal of the research is to determine whether this guess is right or wrong. When conducting an experiment, researchers might explore a number of factors to determine which ones might contribute to the ultimate outcome.

In many cases, researchers may find that the results of an experiment do not support the original hypothesis. When writing up these results, the researchers might suggest other options that should be explored in future studies.

Researchers Come up With a Hypothesis

In many cases, researchers might draw a hypothesis from a specific theory or build on previous research. For example, prior research has shown that stress can impact the immune system. So a researcher might for a specific hypothesis that: “People with high-stress levels will be more likely to contract a common cold after being exposed to the virus than are people who have low-stress levels.”

In other instances, researchers might look at commonly held beliefs or folk wisdom. “Birds of a feather flock together” is one example of folk wisdom that a psychologist might try to investigate. The researcher might pose a specific hypothesis that “People tend to select romantic partners who are similar to them in interests and educational level.”

Elements of a Good Hypothesis

When trying to come up with a good hypothesis for your own research or experiments, ask yourself the following questions:

• Is your hypothesis based on your research on a topic?
• Can your hypothesis be tested?
• Does your hypothesis include independent and dependent variables?

Before you come up with a specific hypothesis, spend some time doing background research on your topic. Once you have completed a literature review, start thinking about potential questions you still have.

How to Form a Hypothesis

The first step of a psychological investigation is to identify an area of interest and develop a hypothesis that can then be tested. While a hypothesis is often described as a hunch or a guess, it is actually much more specific. A hypothesis can be defined as an educated guess about the relationship between two or more variables.

For example, a researcher might be interested in the relationship between study habits and test anxiety.

The researcher would propose a hypothesis about how these two variables are related, such as “Test anxiety decreases as a result of effective study habits.”

In order to form a hypothesis, you should take these steps:

• Start by collecting as many observations about something as you can.
• Evaluate these observations and look for possible causes of the problem.
• Create a list of possible explanations that you might want to explore.
• After you have developed some possible hypotheses, it is important to think of ways that you could confirm or disprove each hypothesis through experimentation. This is known as falsifiability.

Falsifiability

In the scientific method, falsifiability is an important part of any valid hypothesis. In order to test a claim scientifically, it must be possible that the claim could also be proven false.

Students sometimes confuse the idea of falsifiability with the idea that it means that something is false, which is not the case. What falsifiability means is that if something was false, then it is possible to demonstrate that it is false.

One of the hallmarks of pseudoscience is that it makes claims that cannot be refuted or proven false.

The Role of Operational Definitions

In the previous example, study habits and test anxiety are the two variables in this imaginary study. A variable is a factor or element that can be changed and manipulated in ways that are observable and measurable. However, the researcher must also define exactly what each variable is using what is known as operational definitions. These definitions explain how the variable will be manipulated and measured in the study.

In the previous example, a researcher might operationally define the variable “test anxiety” as the results of a self-report measure of anxiety experienced during an exam. The variable “study habits” might be defined by the amount of studying that actually occurs as measured by time.

These precise descriptions of each variable are important because many things can be measured in a number of different ways. One of the basic principles of any type of scientific research is that the results must be replicable. By clearly detailing the specifics of how the variables were measured and manipulated, other researchers can better understand the results and repeat the study if needed.

Some variables are more difficult than others to define. How would you operationally define a variable such as aggression? For obvious ethical reasons, researchers cannot create a situation in which a person behaves aggressively toward others. In order to measure this variable, the researcher must devise a measurement that assesses aggressive behavior without harming other people. In this situation, the researcher might utilize a simulated task to measure aggressiveness.

Taking Stock of the Industry

Conducting research to better understand the industry your company operates in is integral to success. Knowing who your competition is, who your customers are and what products or services to offer will help you to develop a solid plan. In addition, business research helps organizations avoid future failures. Organizations can determine whether they should expand operations or scale back based on how the industry is doing as a whole. They can even decide if they should apply for a new loan or pay back debts sooner based on current interest rates. Understanding the industry also helps businesses price their products or services effectively, ensuring they are in line with market rates and competitors.

Understanding Your Customers

Your customers are the reason your business exists. As a result, it’s vital to know who they are, how they think, how they feel and why they might need your products or services. Organizations conduct market research in various ways, such as through phone or online surveys, and can also purchase research that has already been published for their industry. It’s a great way to understand what your customers’ biggest challenges are so that you can determine how to help them. Market research is also vital to new product development. Research helps to reduce risk when making a big investment in creating a new product or offering a new service.

Knowing your customers also helps to fine-tune marketing campaigns. This way, you can target customers effectively, really honing in on their pain points and offering your organization as a viable solution. Brand research helps organizations to understand how their customers view them and shows any changes needed to improve the business’ overall image.

Competing Effectively and Efficiently

Every business has some kind of competition; no one operates alone. As a result, it’s important to know who your true competitors are and how you compare. Companies that are honest about their strengths and weaknesses as compared to their competitors have a higher chance of success. Through effective competitor analysis and research, organizations can determine if they need to develop new products or services, whether they should consider new marketing strategies or if their pricing plan needs some tweaks. By understanding the competition better, organizations also can develop new ways to increase market share.

To Remain well-informed

During the process of research, a business would acquire key information related to different areas of the business which the business would analyze, strategize and use the collected business information for improving the efficiency and performance of the business. Reports sent to the top-level management usually have information about the employee preference, consumer likes and dislikes and the different channels that are available effective sales, finance, production, and marketing.

To develop the best strategy

The information so gathered by a business about different areas aids in determining the ideal and best strategy suited to the organization. Say for instance, before initially starting an organization, research helps in evaluating whether the said business if started would be a profitable venture and whether there really exists a demand for the product manufactured by the company. Thus effective research conducted helps in every phase or stages of the business operations by helping in good decision-making.

In ascertaining staff satisfaction level

A clearly carried out research aids in not only uncovering but even in a thorough understanding of the level of staff satisfaction. The management through well-conducted research comes to know of the difficulties experienced by the staff along with getting a clear picture about how to handle the situation at the place of work. Thus it is true that well-conducted research helps the management and the organization in undertaking the needed changes for the efficient, smooth and successful functioning of the organization and in providing satisfaction level to its employees at the workplace. This helps to increase their motivational level as they get coached and trained in their line of need. This helps improve the personal as well as the professional performance of the employees thus improving the overall performance of the organization.

Effective managerial decision-making

By undertaking effective research in different areas, all the areas of the business get thoroughly analyzed and evaluated thus helping in picking up the good techniques for better and more efficient ways that would help in increasing the productivity and profitability of the organization.  In short, it cannot be denied that effective research undertaken provides an answer to all the problems of a business.

The process of collecting data in qualitative research is field-based and iterative, that is, the data collected from the study is organized during analysis in such a way that a pattern will emerge. Unlike quantitative research, it usually starts with the specific and moves toward the general. In this type of research, data patterns generated from analysis inevitably lead to different questions or concepts that the researcher had set prior to data gathering.

Qualitative researchers usually record their thoughts and impressions about the data and methodology that they use. They collect data in different ways and sources, at times using a technique called triangulation in which researchers facilitate validation of data through cross verification from more than two sources.

The main purpose of this kind of research is to understand and interpret social interactions. It usually studies smaller and purposively selected groups of participants. It does not focus on specific variables, but sees the study as a whole. Qualitative research examines the breadth and depth of phenomena. Forms of data gathered typically comprise responses to interviews, participant observations, field notes, reflections, and other open-ended responses, and as such, comprise words, images or objects.

Subjectivity is expected in this research approach as multiple realities are recognized. Researchers and their biases may be known to participants in the research, and participant characteristics may be known to researchers as well. Results in this study are particular, specialized, and therefore less generalizable. Researchers generate new hypotheses and theories from data collected.

Human behavior is viewed by this type of research as dynamic, situational, social and personal. The most common research objectives of qualitative study are to “explore”, “discover”, and “construct”. Qualitative research studies behavior in its natural environment. The final report commonly includes a narrative report with contextual descriptions and direct quotations from research participants.

Assumptions of Qualitative Methods

• Multiple realities are considered in the research which includes views of the researcher, participants of the study, and even the reader of or the audience interpreting the results.
• The researcher actively interacts with the participants and one of his/her goals is to lessen the distance between him/her and the people being studied.
• The researcher recognizes that the research is not value-free, and that it can be influenced by his values and beliefs.
• Qualitative research is context-bound.
• Categories of interest emerge from the participants of the research, rather than set by the researcher before conducting the study. An inductive form of logic is followed.
• The objective of the research is to be able to come up with patterns or theories that will explain the phenomenon being studied.

Quantitative research methods are those methods where a systematic approach is used to collect quantifiable of data by performing computational, mathematical, or statistical techniques. The data collected through quantitative research methods are usually in numerical form.

The proper outcome can be deduced by analyzing the data in a systematic form. The results obtained through quantitative research methods are statistical, logical, and unbiased.

These research methods are applied to a group of the population, which represents the entire population.

Methods like survey research, cross-sectional surveys, longitudinal surveys, correlational research, causal-comparative research, experimental research, are primary data collection methods in quantitative research methods whereas the data collected from methods such as educational institutions, public libraries, data available on internet, government and non-government resources, and commercial information resources, etc. are the secondary data collection methods in quantitative research methods. Click here to learn more about quantitative research methods.

Primary Quantitative Research Methods

There are four different types of quantitative research methods:

Primary quantitative research is the most widely used method of conducting market research. The distinct feature of primary research is that the researcher focuses on collecting data directly rather than depending on data collected from previously done research. Primary quantitative research can be broken down into three further distinctive tracks, as well as the process flow. They are:

A. Techniques and Types of Studies

There are multiple types of primary quantitative research. They can be distinguished into the four following distinctive methods, which are:

1. Survey Research:

Survey Research is the most fundamental tool for all quantitative research methodologies and studies. Surveys used to ask questions to a sample of respondents, using various types such as online polls, online surveys, paper questionnaires, web-intercept surveys, etc. Every small and big organization intends to understand what their customers think about their products and services, how well are new features faring in the market and other such details.

By conducting survey research, an organization can ask multiple survey questions, collect data from a pool of customers, and analyze this collected data to produce numerical results. It is the first step towards collecting data for any research.

This type of research can be conducted with a specific target audience group and also can be conducted across multiple groups along with comparative analysis. A prerequisite for this type of research is that the sample of respondents must have randomly selected members. This way, a researcher can easily maintain the accuracy of the obtained results as a huge variety of respondents will be addressed using random selection. Traditionally, survey research was conducted face-to-face or via phone calls but with the progress made by online mediums such as email or social media, survey research has spread to online mediums as well.

Traditionally, survey research was conducted face-to-face or via phone calls but with the progress made by online mediums such as email or social media, survey research has spread to online mediums as well.

There are two types of surveys, either of which can be chosen based on the time in-hand and the kind of data required: 

Cross-sectional surveys: Cross-sectional surveys are observational surveys conducted in situations where the researcher intends to collect data from a sample of the target population at a given point in time. Researchers can evaluate various variables at a particular time. Data gathered using this type of survey is from people who depict similarity in all variables except the variables which is considered for research. Throughout the survey, this one variable will stay constant.

• Cross-sectional surveys are popular with retail, SMEs, healthcare industries. Information is garnered without modifying any parameters in the variable ecosystem.
• Using cross-sectional survey research method, multiple samples can be analyzed and compared.
• Multiple variables can be evaluated using this type of survey research.
• The only disadvantage of cross-sectional surveys is that the cause-effect relationship of variables cannot be established as it usually evaluates variables at a particular time and not across a continuous time frame.

Longitudinal surveys: Longitudinal surveys are also observational surveys but, unlike cross-sectional surveys, longitudinal surveys are conducted across various time durations to observe a change in respondent behavior and thought-processes. This time can be days, months, years, or even decades. For instance, a researcher planning to analyze the change in buying habits of teenagers over 5 years will conduct longitudinal surveys.

• In cross-sectional surveys, the same variables were evaluated at a given point in time, and in longitudinal surveys, different variables can be analyzed at different intervals of time.
• Longitudinal surveys are extensively used in the field of medicine and applied sciences. Apart from these two fields, they are also used to observe a change in the market trend, analyze customer satisfaction, or gain feedback on products/services.
• In situations where the sequence of events is highly essential, longitudinal surveys are used.
• Researchers say that when there are research subjects that need to be thoroughly inspected before concluding, they rely on longitudinal surveys.

2. Correlational Research:

A comparison between two entities is invariable. Correlation research is conducted to establish a relationship between two closely-knit entities and how one impacts the other and what are the changes that are eventually observed. This research method is carried out to give value to naturally occurring relationships, and a minimum of two different groups are required to conduct this quantitative research method successfully. Without assuming various aspects, a relationship between two groups or entities must be established.

Researchers use this quantitative research method to correlate two or more variables using mathematical analysis methods. Patterns, relationships, and trends between variables are concluded as they exist in their original set up. The impact of one of these variables on the other is observed along with how it changes the relationship between the two variables. Researchers tend to manipulate one of the variables to attain the desired results.

Ideally, it is advised not to make conclusions merely based on correlational research. This is because it is not mandatory that if two variables are in sync that they are interrelated.

Example of Correlational Research Questions:

• • The relationship between stress and depression.
  • The equation between fame and money.
  • The relation between activities in a third-grade class and its students.

3. Causal-Comparative Research:

This research method mainly depends on the factor of comparison. Also called the quasi-experimental research, this quantitative research method is used by researchers to conclude cause-effect equation between two or more variables, where one variable is dependent on the other independent variable. The independent variable is established but not manipulated, and its impact on the dependent variable is observed. These variables or groups must be formed as they exist in the natural set up. As the dependent and independent variables will always exist in a group, it is advised that the conclusions are carefully established by keeping all the factors in mind.

Causal-comparative research is not restricted to the statistical analysis of two variables but extends to analyzing how various variables or groups change under the influence of the same changes. This research is conducted irrespective of the type of relation that exists between two or more variables. Statistical analysis is used to distinctly present the outcome of obtained using this quantitative research method.

Example of Causal-Comparative Research Questions:

• The impact of drugs on a teenager.
• The effect of good education on a freshman.
• The effect of substantial food provision in the villages of Africa.

4. Experimental Research: Also known as true experimentation, this research method is reliant on a theory. Experimental research, as the name suggests, is usually based on one or more theories. This theory has not been proven in the past and is merely a supposition. In experimental research, an analysis is done around proving or disproving the statement. This research method is used in natural sciences.

There can be multiple theories in experimental research. A theory is a statement that can be verified or refuted.

After establishing the statement, efforts are made to understand whether it is valid or invalid. This type of quantitative research method is mainly used in natural or social sciences as there are various statements which need to be proved right or wrong. 

• Traditional research methods are more effective than modern techniques.
• Systematic teaching schedules help children who find it hard to cope up with the course.
• It is a boon to have responsible nursing staff for ailing parents.

1. Research design in case of exploratory research studies: Exploratory research studies are also termed as formulative research studies. The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working hypotheses from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of a problem under study. Inbuilt flexibility in research design is needed because the research problem, broadly defined initially, is transformed into one with more precise meaning in exploratory studies, which fact may necessitate changes in the research procedure for gathering relevant data. Generally, the following three methods in the context of research design for such studies are talked about: the survey of concerning literature, the experience survey and the analysis of ‘insight-stimulating’ examples.

The survey of concerning literature happens to be the most simple and fruitful method of formulating precisely the research problem or developing hypothesis. Hypotheses stated by earlier workers may be reviewed and their usefulness be evaluated as a basis for further research. It may also be considered whether the already stated hypotheses suggest new hypothesis. In this way the researcher should review and build upon the work already done by others, but in cases where hypotheses have not yet been formulated, his task is to review the available material for deriving the relevant hypotheses from it.

Besides, the bibliographical survey of studies, already made in one’s area of interest may as well as made by the researcher for precisely formulating the problem. He should also make an attempt to apply concepts and theories developed in different research contexts to the area in which he is himself working. Sometimes the works of creative writers also provide a fertile ground for hypothesis formulation and as such may be looked into by the researcher.

Experience survey means the survey of people who have had practical experience with the problem to be studied. The object of such a survey is to obtain insight into the relationships between variables and new ideas relating to the research problem. For such a survey people who are competent and can contribute new ideas may be carefully selected as respondents to ensure a representation of different types of experience. The respondents so selected may then be interviewed by the investigator. The researcher must prepare an interview schedule for the systematic questioning of informants. But the interview must ensure flexibility in the sense that the respondents should be allowed to raise issues and questions which the investigator has not previously considered. Generally, the experience collecting interview is likely to be long and may last for few hours. Hence, it is often considered desirable to send a copy of the questions to be discussed to the respondents well in advance. This will also give an opportunity to the respondents for doing some advance thinking over the various issues involved so that, at the time of interview, they may be able to contribute effectively. Thus, an experience survey may enable the researcher to define the problem more concisely and help in the formulation of the research hypothesis. This survey may as well provide information about the practical possibilities for doing different types of research.
Analysis of ‘insight-stimulating’ examples is also a fruitful method for suggesting hypotheses for research. It is particularly suitable in areas where there is little experience to serve as a guide. This method consists of the intensive study of selected instances of the phenomenon in which one is interested. For this purpose the existing records, if any, may be examined, the unstructured interviewing may take place, or some other approach may be adopted. Attitude of the investigator, the intensity of the study and the ability of the researcher to draw together diverse information into a unified interpretation are the main features which make this method an appropriate procedure for evoking insights.
Now, what sort of examples are to be selected and studied? There is no clear cut answer to it. Experience indicates that for particular problems certain types of instances are more appropriate than others. One can mention few examples of ‘insight-stimulating’ cases such as the reactions of strangers, the reactions of marginal individuals, the study of individuals who are in transition from one stage to another, the reactions of individuals from different social strata and the like. In general, cases that provide sharp contrasts or have striking features are considered relatively more useful while adopting this method of hypotheses formulation.
Thus, in an exploratory of formulative research study which merely leads to insights or hypotheses, whatever method or research design outlined above is adopted, the only thing essential is that it must continue to remain flexible so that many different facets of a problem may be considered as and when they arise and come to the notice of the researcher.

2. Research design in case of descriptive and diagnostic research studies: Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual, or of a group, whereas diagnostic research studies determine the frequency with which something occurs or its association with something else. The studies concerning whether certain variables are associated are examples of diagnostic research studies. As against this, studies concerned with specific predictions, with narration of facts and characteristics concerning individual, group or situation are all examples of descriptive research studies. Most of the social research comes under this category. From the point of view of the research design, the descriptive as well as diagnostic studies share common requirements and as such we may group together these two types of research studies. In descriptive as well as in diagnostic studies, the researcher must be able to define clearly, what he wants to measure and must find adequate methods for measuring it along with a clear cut definition of ‘population’ he wants to study. Since the aim is to obtain complete and accurate information in the said studies, the procedure to be used must be carefully planned. The research design mustmake enough provision for protection against bias and must maximise reliability, with due concern for the economical completion of the research study. The design in such studies must be rigid and not flexible and must focus attention on the following:
   • Formulating the objective of the study (what the study is about and why is it being made?)
   • Designing the methods of data collection (what techniques of gathering data will be adopted?)
   • Selecting the sample (how much material will be needed?)
   • Collecting the data (where can the required data be found and with what time period should the data be related?)
   • Processing and analysing the data.
   • Reporting the findings.

In a descriptive/diagnostic study the first step is to specify the objectives with sufficient precision to ensure that the data collected are relevant. If this is not done carefully, the study may not provide the desired information.
Then comes the question of selecting the methods by which the data are to be obtained. In other words, techniques for collecting the information must be devised. Several methods (viz., observation, questionnaires, interviewing, examination of records, etc.), with their merits and limitations, are available for the purpose and the researcher may user one or more of these methods which have been discussed in detail in later chapters. While designing data-collection procedure, adequate safeguards against bias and unreliability must be ensured. Whichever method is selected, questions must be well examined and be made unambiguous; interviewers must be instructed not to express their own opinion; observers must be trained so that they uniformly record a given item of behaviour. It is always desirable to pretest the data collection instruments before they are finally used for the study purposes. In other words, we can say that “structured instruments” are used in such studies.
In most of the descriptive/diagnostic studies the researcher takes out sample(s) and then wishes to make statements about the population on the basis of the sample analysis or analyses. More often than not, sample has to be designed. Different sample designs have been discussed in detail in a separate chapter in this book. Here we may only mention that the problem of designing samples should be tackled in such a fashion that the samples may yield accurate information with a minimum amount of research effort. Usually one or more forms of probability sampling, or what is often described as random sampling, are used.

To obtain data free from errors introduced by those responsible for collecting them, it is necessary to supervise closely the staff of field workers as they collect and record information. Checks may be set up to ensure that the data collecting staff perform their duty honestly and without prejudice. “As data are collected, they should be examined for completeness, comprehensibility, consistency and reliability.”
The data collected must be processed and analysed. This includes steps like coding the interview replies, observations, etc.; tabulating the data; and performing several statistical computations. To the extent possible, the processing and analysing procedure should be planned in detail before actual work is started. This will prove economical in the sense that the researcher may avoid unnecessary labour such as preparing tables for which he later finds he has no use or on the other hand, re-doing some tables because he failed to include relevant data. Coding should be done carefully to avoid error in coding and for this purpose the reliability of coders needs to be checked. Similarly, the accuracy of tabulation may be checked by having a sample of the tables re-done. In case of mechanical tabulation the material (i.e., the collected data or information) must be entered on appropriate cards which is usually done by punching holes corresponding to a given code. The accuracy of punching is to be checked and ensured. Finally, statistical computations are needed and as such averages, percentages and various coefficients must be worked out. Probability and sampling analysis may as well be used. The appropriate statistical operations, along with the use of appropriate tests of significance should be carried out to safeguard the drawing of conclusions concerning the study.
Last of all comes the question of reporting the findings. This is the task of communicating the findings to others and the researcher must do it in an efficient manner. The layout of the report needs to be well planned so that all things relating to the research study may be well presented in simple and effective style.
Thus, the research design in case of descriptive/diagnostic studies is a comparative design throwing light on all points narrated above and must be prepared keeping in view the objective(s) of the study and the resources available. However, it must ensure the minimisation of bias and maximisation of reliability of the evidence collected. The said design can be appropriately referred to as a survey design since it takes into account all the steps involved in a survey concerning a phenomenon to be studied.
The difference between research designs in respect of the above two types of research studies can be conveniently summarised in tabular form as under:

3. Research design in case of hypothesis-testing research studies: Hypothesis-testing research studies (generally known as experimental studies) are those where the researcher tests the hypotheses of causal relationships between variables. Such studies require procedures that will not only reduce bias and increase reliability, but will permit drawing inferences about causality. Usually experiments meet this requirement. Hence, when we talk of research design in such studies, we often mean the design of experiments.
   Professor R.A. Fisher’s name is associated with experimental designs. Beginning of such designs was made by him when he was working at Rothamsted Experimental Station (Centre for Agricultural Research in England). As such the study of experimental designs has its origin in agricultural research. Professor Fisher found that by dividing agricultural fields or plots into different blocks and then by conducting experiments in each of these blocks, whatever information is collected and inferences drawn from them, happens to be more reliable. This fact inspired him to develop certain experimental designs for testing hypotheses concerning scientific investigations. Today, the experimental designs are being used in researches relating to phenomena of several disciplines. Since experimental designs originated in the context of agricultural operations, we still use, though in a technical sense, several terms of agriculture (such as treatment, yield, plot, block etc.) in experimental designs.

Research design is defined as a framework of methods and techniques chosen by a researcher to combine various components of research in a reasonably logical manner so that the research problem is efficiently handled. It provides insights about “how” to conduct research using a particular methodology. Every researcher has a list of research questions which need to be assessed – this can be done with research design.

The sketch of how research should be conducted can be prepared using research design. Hence, the market research study will be carried out on the basis of research design.

The design of a research topic is used to explain the type of research (experimental, survey, correlational, semi-experimental, review) and also its sub-type (experimental design, research problem, and descriptive case-study). There are three main sections of research design: Data collection, measurement, and analysis.

The type of research problem an organization is facing will determine the research design and not vice-versa. Variables, designated tools to gather information, how will the tools be used to collect and analyze data and other factors are decided in research design on the basis of a research technique is decided.

An impactful research design usually creates minimum bias in data and increases trust on the collected and analyzed research information. Research design which produces the least margin of error in experimental research can be touted as the best. The essential elements of research design are:

1. Accurate purpose statement of research design
2. Techniques to be implemented for collecting details for research
3. Method applied for analyzing collected details
4. Type of research methodology
5. Probable objections for research
6. Settings for research study
7. Timeline
8. Measurement of analysis

Research Design Characteristics

Neutrality: The results projected in research design should be free from bias and neutral. Understand opinions about the final evaluated scores and conclusion from multiple individuals and consider those who agree with the derived results.

Reliability: If a research is conducted on a regular basis, the researcher involved expects similar results to be calculated every time. Research design should indicate how the research questions can be formed to ensure the standard of obtained results and this can happen only when the research design is reliable.

Validity: There are multiple measuring tools available for research design but valid measuring tools are those which help a researcher in gauging results according to the objective of research and nothing else. The questionnaire developed from this research design will be then valid.

Generalization: The outcome of research design should be applicable to a population and not just a restricted sample. Generalization is one of the key characteristics of research design.

Types of Research Design

A researcher must have a clear understanding of the various types of research design to select which type of research design to implement for a study. Research design can be broadly classified into quantitative and qualitative research design.

Qualitative Research Design: Qualitative research is implemented in cases where a relationship between collected data and observation is established on the basis of mathematical calculations. Theories related to a naturally existing phenomenon can be proved or disproved using mathematical calculations. Researchers rely on qualitative research design where they are expected to conclude “why” a particular theory exists along with “what” respondents have to say about it.

Quantitative Research Design: Quantitative research is implemented in cases where it is important for a researcher to have statistical conclusions to collect actionable insights. Numbers provide a better perspective to make important business decisions. Quantitative research design is important for the growth of any organization because any conclusion drawn on the basis of numbers and analysis will only prove to be effective for the business. 

Further, research design can be divided into five types:

1. Descriptive Research Design:In a descriptive research design, a researcher is solely interested in describing the situation or case under his/her research study. It is a theory-based research design which is created by gather, analyze and presents collected data. By implementing an in-depth research design such as this, a researcher can provide insights into the why and how of research.
2. Experimental Research Design:Experimental research design is used to establish a relationship between the cause and effect of a situation. It is a causal research design where the effect caused by the independent variable on the dependent variable is observed. For example, the effect of an independent variable such as price on a dependent variable such as customer satisfaction or brand loyalty is monitored. It is a highly practical research design method as it contributes towards solving a problem at hand. The independent variables are manipulated to monitor the change it has on the dependent variable. It is often used in social sciences to observe human behavior by analyzing two groups affect of one group on the other.
3. Correlational Research Design:Correlational research is a non-experimental research design technique which helps researchers to establish a relationship between two closely connected variables. Two different groups are required to conduct this research design method. There is no assumption while evaluating a relationship between two different variables and statistical analysis techniques are used to calculate the relationship between them.

Correlation between two variables is concluded using a correlation coefficient, whose value ranges between -1 and +1. If the correlation coefficient is towards +1, it indicates a positive relationship between the variables and -1 indicates a negative relationship between the two variables. 

4. Diagnostic Research Design:In the diagnostic research design, a researcher is inclined towards evaluating the root cause of a specific topic. Elements that contribute towards a troublesome situation are evaluated in this research design method.

There are three parts of diagnostic research design:

• Inception of the issue
• Diagnosis of the issue
• Solution for the issue

5. Explanatory Research Design:In exploratory research design, the researcher’s ideas and thoughts are key as it is primarily dependent on their personal inclination about a particular topic. Explanation about unexplored aspects of a subject is provided along with details about what, how and why related to the research questions.

Elements of Research Design

A research design can be described as a conceptual structure within which research is going to be carried out. It comprises the blueprint for the collection, measurement and analysis of data. Decisions with regards to what, where, when, how much, by what means concerning an enquiry or a research design are taken.

A research design is the arrangement of conditions for collection and evaluation of data in a fashion which is designed to combine relevance to the research purpose with economy in process.

The key elements of a good research design are as under:

1. Research Design is a plan which identifies the sources and kinds of information strongly related to the research problem.
2. It is a strategy indicating which method is going to be employed for collecting and analyzing the data.
3. Additionally, it consists of the time and cost budgets because most research is done under these two constraints. In a nutshell a research design must contain:

• A clear statement of the research problem.
• Methods and techniques to be utilized for gathering information from the population to be researched.
• Approach to be utilized in processing and analyzing data.

Purpose of the Study

• Exploratory study: Carried out when not much is known about the problem at hand, or no details are available on how similar problems or research issues have been solved in the past.
• Descriptive study: Carried out as a way to determine and be able to describe the characteristics of the variables of interest in a situation characteristics of the variables of interest in a situation.
• Studies which engage in hypotheses testing generally explain the nature of certain relationships, or establish the differences among groups or the independence of two or more factors in a situation.

Type of Investigation

• Causality Research Design: A causal study is an inquiry to understand the cause of one or more problems.
• A correlational study: Is an inquiry to find out the key variables linked to the problem.

A causal study question:
Does cigarette smoking cause cancer?
A correlational study question:
Are cigarette smoking and cancer associated?
Or
Are cigarette smoking, consuming alcohol, and chewing tobacco related to cancer?
If so, which of these contributes most to the variance in the dependent variable?

Figure: Main Elements of Research Design

Researcher Interference

The extent of interference by the researcher with the normal flow of work at the workplace has a direct effect on whether the study performed is causal or correlational. A correlational study is carried out in the natural environment of the corporation with minimal interference by the researcher with the normal flow of work.

In studies carried out to determine cause-and-effect relationships, the investigator attempts to adjust specific variables in order to study the outcomes of such manipulation on the dependent variable of interest. Put simply, the researcher intentionally changes certain variables in the setting and disrupts the events as they normally happen in the business.

Study Setting

Correlational research is carried out in noncontrived settings (normal settings), as opposed to most causal studies are carried out in contrived settings.

Unit of Analysis

The unit of analysis means the degree of aggregation of the data gathered through the subsequent data analysis.

• Individual
• Dyads
• Groups
• Organizations
• Cultures

Time Horizon

Cross-Sectional Studies: A study can be carried out in which data are collected only once, perhaps during a period of days or weeks or months, to be able to answer a research question.

Longitudinal Studies: Researching people or phenomena at several point in time to be able to answer the research question. Due to the fact that data are collected at two different points in time, the study is not cross-sectional kind, but is carried longitudinally across a period of time. Longitudinal studies take a longer period and energy and cost a lot more than cross-sectional studies. Having said that, well-planned longitudinal studies can help you to recognize cause-and-effect relationships.

For example, you can study the product sales before and after an advertising campaign, and provided other environmental changes haven’t influenced on the results, you can attribute the increase in the sales volume, if any, to the advertisement.

A good research design must contain: a clear statement, Methods and techniques for data collection, processing and analyzing data.