Quantitative Methods Of Research - Essay Example

QUANTATIVE METHODS Table of Contents Difference between Quantitative and Qualitative Analysis 3 Why Organizations Use Scientific Approach 5 Quantitative Analysis Process 6 What is the Break Even Point (BEP) 7 Describe briefly Steps Used to Develop a Forecasting System 8 Time Series Model 8 Difference between Casual Model and Time Series Model 9 What is a Qualitative Forecasting Model, and when it is Appropriate 9 Delphi Technique 10 Bibliography 12 Difference between Quantitative and Qualitative Analysis Qualitative analysis explores the behavioral experiences and attitudes through the mediums like interviews or that of the focus group. It aims to get into depth of opinions of the participants as their attitude, experiences and behaviors are important. There are participants who take part of the research but do not have a longer contact under the quantitative method. There are different methodologies which are present in the quantitative analysis. The qualitative analysis is mostly used in the retail sector to analyze the consumer behavior and attitude towards purchasing. Walmart, Inc uses online customer survey feed back form regarding employees’ courtesy, quality of product and services, competitive price issues, overall satisfaction level to know the perceptions of the consumer. It is very important for a retailer to know its consumers well or it might loss the share of the market in the competing environment of today. Walmart, Inc is renowned for having happy and satisfied set of customers. It is possible only because they know their customers well. With quantitative analysis, the consumers’ suggestions will be introduced which will make them more comfortable in shopping according to their tastes and preferences. Quantitative analysis generates statistical data through the large scale survey research using different methods like structured interviews and questionnaires. The researcher tries to reach as many respondents and collect information to the highest extent possible. The quantitative analysis is mostly used by construction companies, financial market advisory company. They believe more on statically data, analysis them and finds out the future requirements, predicts the market for opportunity for exploitation. Like Gannet Company Inc analyze on financial data and publishes all the financial information of different companies. From this information, many investors find out the company of investment, where their money can grow and provide a higher return. So, it is important to analyze the data in a quantified manner so that investors can easily understand and make their choice. Why Organizations Use Scientific Approach Science is an intellectual search. The scientific approach is essential for analyzing the data which needs an inductive reasoning to derive to general principles based on specific observations. Generalization is powerful weapon to make prediction. To control the dependent and independent variables, scientific research is mandatory. The research done with the help of scientific approach is more reliable and valid. The scientific approach minimizes influence of biased prejudices in the experiments. Companies like Merriman Market Analyst uses scientific way to analyze data from daily stock markets to form a trend line or to predict the future expectations of the market. It uses so to derive a proper calculation of market trends and investors’ expectations towards the security line. Investors rely upon the analyst company so it is very risky to do a research using other techniques instead of scientific. Scientific approach gives the exact measurement eliminating the error that occurs while using other techniques. By this approach, it minimizes the error and gives a set of trust worthy information. Quantitative Analysis Process The first step of Quantitative Analysis Process is to identify the problem and properly define it. Problem reorganization is very important as, if it is wrongly identified the whole research will be in vague. A well-defined problem points to a method of investigation. Next step is to create the research design. The design should contain the things that are required, the ways of research, and preparing a blue print for the overall research. Next is that of the sampling step. The onus lies on the researcher to precisely define the target population. The sources and the process of data collection should be elaborated. The quantity of data collection and analysis of such data are other important aspects. This data needs to be analyzed using different approaches. After this, a report is to be made so that it is can be understood by anyone. Validity and reliability should be checked and errors should be measured. An initiative should be adapted to minimize the errors and establish its validity. Scientific research basically comprises the formulation as well as testing of one or more hypotheses. In order to prove a hypothesis, a null hypothesis is established to give the researcher an indirect method of testing a theory. The method of sampling is felt to be apt when the population is quite large, and it is almost impossible to investigate all members or the factors of the target group. Among the various methods, random and systematic samplings are regarded as the best methods. The fact is that the mathematical reliability (repeatability) of the measurement can be derived, though, validity can be implied only by the data, and therefore cannot be directly verifiable. What is the Break Even Point (BEP) The breakeven point is the junction where there is no profit and no loss. The income generated is equal to the expenses made in this state. Every company needs to find out the break even point so as to know from where the income will start to flow in. It acts as the financial indicator for success or failure of any business organization. Formula of the BEP can be as follows: Break-Even Point = Fixed Costs ÷ Gross Margin Percentage. Sales being lesser than the break even point imply an unfavorable situation for the company. Only if sale is more than the break even point, then there is a better opportunity for the company and it can earn profit. It is important to calculate the right BEP so that the company can find out the target which it needs to surpass in making sales or minimize the related cost in order to earn profit. In a retail store it is very necessary to have the right calculation of BEP. Suppose, a retail store buys goods for $15 each, marks them up and sell for $30. The monthly expenses (fixed costs) are $10000. This means the breakeven point would be $20000 or 667 units. [$10000/ (15/30) = $20000, $20000 / 30 = 667]. Describe briefly Steps Used to Develop a Forecasting System For a forecasting system, first one needs to scan the environment (e.g. internet, media, science, interviews, and conferences). As the next step, one needs to analyze the events, data, and trends. Next, an expert survey is to be conducted. Then, the results are required (like that forecasting arrivals, data analysis and comments). The last step is of iterations. Experts’ comments and new background information are incorporated in an updated breakthrough analysis. Lastly the accuracy is checked. Time Series Model A model prepared where an ordered sequence of value of a variable at equal spaced time intervals are analyzed for the trend is known as Time Series Model. The time series model is used for economic forecasting, sales forecasting, budgetary analysis, and census analysis for prediction of the future. The time series analysis can be conducted with the help of single moving average technique, single exponential smoothing, sample data set, Box-Jenkins approach and multivariate time series models. This model gives a trend line by which it is possible to forecast subsequent issues like sales, demand, etc. Difference between Casual Model and Time Series Model A casual model is an abstract model that uses cause and effect logic to describe the behavior of a system. It depends upon the variable that is the cause and the effect of such cause. It is not in a quantified state. Time series model is more in quantified terms. It shows in figure what will be the sale or demand in the market for the next period. It is more statistical in nature rather deriving relationship in qualitative way. It is more reliable and easily measured in compare to casual model. What is a Qualitative Forecasting Model, and when it is Appropriate A qualitative forecasting model is required where statically data is not of much importance. It is a model created for the derivation of relation between variables. It is formed to find out the consumer behavior, the relationship status in the organization, the psychology of the work force in the organization. Its reliability can not be judged nor justified as human behavior is unpredictable in nature. It keeps on changing according to the changing environment. So, it becomes difficult to measure the behavior and the relationship. It is appropriate to use such models when performance of the employees is to be evaluated in an organization. Some researches have used it related to consumer psychology in particular industry. Marketing researches are often done with qualitative models to find out the consumer’s tastes and preferences towards their products. So with the feedback, they can make the product available as per consumer needs. Mostly it is used by the retail sector. Human resource department of the organizations use it in analyzing the work force behavior of the company. They find out the strength, weakness of employees to overcome them though this model. So, the qualitative forecasting model is necessary in any business. Delphi Technique Delphi Technique is a qualitative technique in finding out any solution. It is used to find out the qualitative solution to the problems by using different expert opinions. A team is comprised of expert professionals and questionnaires are sent to them through e-mail and feed back is received. If all of the opinions match with one alternative, then the decision is said to be the best. But in case of differences, it is sent back to the members and reasons are justified. Each one of the member accesses other member’s feedback. They come to a solution and decision is taken at the end. The process involved in Delphi Technique is lengthy, time consuming and adds cost to it. Immediate decisions keeps on pending until a feasible solution is generated. The team members need to be knowledgeable, experienced enough to take decisions. Being a lengthy process many questions remain unanswered. The resignations and withdrawals of certain members hamper the process. Also, many a times, due to knowledge conflict, decision remains pending. It is not generally in use in today’s business environment. Mostly quantitative approaches are used in today’s business to get an accurate data for exploring the future benefits. Bibliography Gannet. Co. Inc. “Company highlights”. July 12, 2010. Home. No Date. University of New England. “The Scientific Approach”, July 17, 2010. Scientific Approach. No Date. Trochim, W., “The Qualitative Debate”. July 12, 2010. Research Methods. October 20, 2006. Walmart Inc, “Walmart Inc Customer Service Surveys” July 12, 2010. Customer Surveys. No Date. 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