Quantative Research Design - Coursework Example

Quantitative Research Report INTRODUCTION AND THEORETICAL FRAMEWORK Market research is a strategy employed by organizations to gather informationabout the nature and behavior of an organization’s customers or the market. It is an important aspect for any organization that is seeking to investigate some of the issues that the organization faces. Market research is helpful in getting strategically vital information in order to identify and analyze aspects of activities of competition in the market.

It also helps to identify the needs of the customers in order to gain advantage over competitors. The ‘Films 4 You’ organization is an example of an organization, which requires undertaking a market research to understand the reasons for some areas of concern. The organization is a small regional chain of DVD rental stores that has been faced with decline in turnover and other issues that are of concern to the management. The organizations require investigation on the reasons why the numbers of customers have declined to look for solutions to the declining market problem that it faces.

In addition, the study will also look into whether these reasons have contributed to the decline in turnover in the chain of stores. 2. PROBLEM STATEMENT The ‘Films 4 you’ organization has experienced a decline in turnover over a period of 24 months, and is worried about the future of the organization. Some possible reasons have emerged after some interviews were conducted on a small sample of customers. One of the reasons identified was that competitors of the company had won the customers from them.

It was also identified that the online rental services was mostly responsible for the erosion of customers. A major factor identified in the loss of customers pertained to services offered by the company not matching the requirements and expectations of the customers. 3. PURPOSE OF STUDY The purpose of this market research is to identify the reasons for the decline in customer numbers in the ‘Films 4 you’ company. A quantitative study has been identified as the means, and will target ‘Films 4 you’ customers to provide the required data for the study.

To get a picture of competitor activities, the frequency with which they use rental services and their interaction with competitors will be tested. COMPARISON BETWEEN DIFFERENT TYPES OF QUANTITATIVE SURVEYS There are different types of data collection methods, which can be classified as interviewer-administered and self-administered. The former can be further subdivided into face-to-face interviews that are done in home or in the streets or interviews conducted through telephone/mobile phone.

The latter can be divided into postal, hand delivered and online, such as email and web surveys. The interviewer-administered surveys are more reliable compared to self-administered surveys. However, the disadvantages include the need of a skilled interviewer, time consuming, higher costs, and the need of a suitable venue with less distractions, as well as recruitment of respondents. On the other hand, self administered surveys are less expensive and doesn’t need a skilled interviewer. Conversely, there is lack of control, low response rates, lower respondents’ convenience and confidentiality problems associated with self-administered surveys.

The table shows the effectiveness of different types of quantitative surveys (Wilson, 2006) Quantitative surveys are based on questions where the participants are asked a “yes or no” question or rate the answer using a scale that can be either a numerical scale or an opinion scale. The participants answer the questions by indicating their perception on the questions posed to them. The table provided above, adapted from Wilson (2006) shows the effectiveness of different types of quantitative surveys.

The table assists in identifying the survey type suitable for the study needs being conducted for ‘Films 4 you’. In the light of the importance of the survey to ‘Films 4 you’ and its requirements, the chosen survey type is the face-to-face survey interviewer administered survey. 6. RESEARCH DESIGN 6.1. SAMPLING In any quantitative study design sampling and sample size are important issues for the study to be effective. The endeavor is to arrive at a sample size that is optimal for the purposes of the study.

Too large a sample size and the study efforts are cumbersome. Too small a sample size reduces the reliability of the study. The normal practice is to arrive at a sample size that is representative of the population chosen for the study. In this case the study pertains to identifying customer behavior and customer preferences of the customers of the ‘Films 4 you’ company, which also assists in identifying customer behavior and preferences in the film rental services market. There are computational tools available for arriving at the optimal sample size for a study (Royer & Zarlowski, 2001). . However, for this study the computational means for sample size identification is dispensed with.

Instead the study has arrived at a sample size and sampling that allows the application of the survey to be completed in two weeks. The time frame has been the constraining factor in reducing the sample size. However, the reduced sample size and sampling method will not have a negative influence on the reliability of the findings of the study. Five outlets of ‘Films 4 you’ have been selected as the sites of the study. The study assumes that these five outlets will be representative of the customer base of ‘Films 4 you’, in other words the population base of the study.

Sixty customers visiting each of the selected five outlets of ‘Films 4 you’ chain of stores will constitute the samples, thus contributing to a sample size of 300 (N=300). These sixty customers for each of the stores will be further broken up into groups of ten each based on age. These age groups will children (9-12), teenagers (13-19), early adults (18-25), mid adults (26-35), adults (36-45), and elders (45+). The purpose behind this classification is the assumption of the study that customer behavior and preferences between these age groups is likely to differ, and through such an age group differentiation it will be possible to have a complete picture of customer behavior and preferences from the findings of the study.

Random sampling will be adopted in selecting the samples. Random sampling means that any of the customers of ‘Films 4 you’ in the age group of nine years and above visiting the selected outlets of ‘Films 4 you’ during the duration of the study have the same chance of participating in the study. The main purpose in the choice of random selection of participants is to remove bias in participant selection, to the sample population to be misrepresentative of the population taken for the purposes of the study (Nichols, 2002). 6.2.

QUESTIONNAIRE DESIGN Malhotra and Birks (2007, p398) states “A questionnaire has three objectives. It must translate the information needed into a set of specific questions that the respondents can and will answer. It must motivate respondents to complete the interview. It must also minimize response error.” Thus, the questionnaire should be in logical order, and should use a scale which can help the participants easily provide answers to the desired questions. Additionally, the questions used should not use any jargons that an ordinary person fails to understand.

Moreover, the questionnaire should state the source and purpose of the study so that respondents can value the survey rather than castigating it as a scam or direct marketing. Next, the questionnaire should be addressed to the person and the message should be communicated to the respondent as politely as possible. Furthermore, the questionnaire should address that the data would be kept anonymous and the time that will be required for the respondent to fill the questionnaire. Nevertheless, the sample questionnaire should be pre tested and corrected which can help wipe out errors in questions, layout, difficulty and instructions.

Table shows the typical question sequence (Hand, 2012) The best research design for this market research is the use of questionnaires. The questionnaire will be based on an open format of the Likert scale, but with just three options, to make it easier for the participants to respond. The three options chosen are agree, neutral, and disagree. Choice of such an open questionnaire in place of a closed questionnaire of yes and no is to negate the superficial responses associated with the closed questionnaire (Easterby-Smith, Thorpe & Lowe, 2004).

The questions in the questionnaire will address the issues of why customers rent films, frequency of film rentals, frequency of use of online rental video-rental services, frequency of use of rental of films from other competitors, and their preferences in rental of films. An important issue with questions in the questionnaire is their number. Too little and the very little useful data will be derived. Too many and the concentration of the participants will be lost, making their responses mechanical (Easterby-Smith, Thorpe & Lowe, 2004).

With this in mind the questionnaire will contain 12 questions. 6.3. DATA COLLECTION The questionnaire will constitute the data collection sheet. Participation will be purely on voluntary basis, subsequent to explaining the nature and purpose of the study and the manner in which the information provided by the participants will be used. Before applying the questionnaire any clarifications sought by the participants will be provided. The questionnaire will be applied by trained researchers at each of the sites chosen by the study over a period of two weeks.

Names and personal details, except age, will not be collected. The trained researcher will code the questionnaire in such a way that in addition to the responses the age classification of the participant can be indentified. To increase response to the study an incentive of one free movie rental will be offered. The responses to the questionnaire will constitute the data for the study. The responses will be compiled and entered into an MS Excels sheet. The MS excel file will be used to derive the tables and charts, which will constitute the results of the study, using SPSS statistical software.

The results of the study will be presented in the form of tables, charts, and diagrams that will assist in arriving at the findings and conclusions of the study. 7. LIMITATIONS AND ASSUMPTIONS The sample size is not the optimal sample size, which may pose a limitation on the reliability of the study. The study is being conducted only across five of the outlets of ‘Films 4 you’, which poses a limitation on it being representative of the customer behavior and preferences across all the outlets of ‘Films 4 you’.

The study has assumed that within a two week period the number of participants chosen for the study in each age category will visit the sites of the study during the two week period of the study, and be willing to participate in the study. The study has assumed that 12 questions in the questionnaire will suffice to generate the required quantitative data for the purposes of the study. The study ahs assumed that children in the age group of 9years to 12 years will have their own movie rental behavior and preferences and not reflect their parents’ rental behavior and preferences. 8. SIGNIFICANCE OF STUDY This study will be important for the ‘Films 4 you’ company, since it will provide information on the causes of decline in customer numbers, in terms of whether it is due to changing customer movie rental behavior and preferences, or strong competitive activity, or poor service provision on the part of ‘Films 4 you’ outlets, or poor range of choice in films for rent at the ‘Films 4 you’ outlets.

Based on identification of one or more of these damaging effects, it will be possible for ‘Films 4 you’ to remodel their business activity to suit the current needs of the market and remain competitive in the film rental services market. In essence, the significance of this study for ‘Films 4 you’ is its implications for the sustenance, growth, and development of Films 4 you’. Literary References Easterby-Smith, M., Thorpe, R. & Lowe, A. 2004, Management Research: An Introduction, Sage, California.

Nichols, P. 2002, Social Survey Methods; A Field Guide for development Workers, Oxfam, London. Riordan, J. 2005, Breastfeeding and Human Lactation, Third Edition, Jones and Bartlett, Massachusetts.