ASSIGNMENT SET 1

Research Methodology

NAME: ARUN KUMAR H N

ROLL NUMBER: 571015258 .

Master of Business Administration MBA Semester 3 MB0050 Research Methodology (Book ID: B1206) Assignment Set- 1 Note: Each question carries 10 Marks. Answer all the questions

Q 1. Why should a manger know about research when the job entails managing people, products, events, environments, and the like? The manager, while managing people, products, events, and environments will invariably face problems, big and small, and will have to seek ways to find long lasting effective solutions. This can be achieved only through knowledge of research even if consultants are engaged to solve problems. The primary purpose for applied research (as opposed to basic research) is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Research can use the scientific method, but need not do so. The goal of the research process is to produce new knowledge, which takes three main forms (although, as previously discussed, the boundaries between them may be fuzzy): Exploratory research, which structures and identifies new problems Constructive research, which develops solutions to a problem Empirical research, which tests the feasibility of a solution using empirical evidence The research room at the New York Public Library, an example of secondary research in progress. Research can also fall into two distinct types: Primary research Secondary research In social sciences and later in other disciplines, the following two research methods can be applied, depending on the properties of the subject matter and on the objective of the research: Qualitative research Quantitative research Research is often conducted using the hourglass model Structure of Research. The hourglass model starts with a broad spectrum for research, focusing in on the required information through the methodology of the project (like the neck of the hourglass), then expands the research in the form of discussion and results. Research and development is nowadays of great importance in business as the level of competition, production processes and methods are rapidly increasing. It is of special importance in the field of marketing where companies keep an eagle eye on competitors and customers in order to keep pace with modern trends and analyze the needs, demands and desires of their customers. Unfortunately, research and development are very difficult to manage, since the defining feature of research is that the researchers do not know in advance exactly how to

NAME: ARUN KUMAR .H .N ROLL NUMBER: 571015258

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ASSIGNMENT SET 1

Research Methodology

NAME: ARUN KUMAR H N

ROLL NUMBER: 571015258 .

accomplish the desired result. As a result, higher R&D spending does not guarantee "more creativity, higher profit or a greater market share.

Q 2. a. How do you evolve research design for exploratory research? Briefly analyze. 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 hypothesis 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: 1. The survey of concerning literature happens to be the most simple and fruitful method of formulating precisely the research problem or developing hypothesis. Hypothesis 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 hypothesis suggests new hypothesis. In this way the researcher should review and build upon the work already done by others, but in cases where hypothesis have not yet been formulated, his task is to review the available material for deriving the relevant hypothesis from it. Besides, the bibliographical survey of studies, already made in ones 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 as such may be looked into by the researcher. 2. 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 of 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

NAME: ARUN KUMAR .H .N ROLL NUMBER: 571015258

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ASSIGNMENT SET 1

Research Methodology

NAME: ARUN KUMAR H N

ROLL NUMBER: 571015258 .

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. 3. Analyses of insight-stimulating examples are also a fruitful method for suggesting hypothesis 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 instance of the phenomenon in which one is interested. For this purpose the existing records, if nay, 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 sorts 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 hypothesis formulation. Thus, in an exploratory of formulative research study which merely leads to insights or hypothesis, 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.

b. Briefly explain Independent dependent and extraneous variables in a research design. 1.Dependent and Independent variables: A magnitude that varies is known as a variable. The concept may assume different quantitative values, like height, weight, income, etc. Qualitative variables are not quantifiable in the strictest sense of objectivity. However, the qualitative phenomena may also be quantified in terms of the presence or absence of the attribute considered. Phenomena that assume different values quantitatively even in decimal points are known as continuous variables. But, all variables need not be continuous. Values that can be expressed only in integer values are called non-continuous variables. In statistical term, they are also known as discrete variable. For example, age is a continuous variable; where as the number of children is a noncontinuous variable. When changes in one variable depends upon the changes in one or more other variables, it is known as a dependent or endogenous variable, and the variables that cause the changes in the dependent variable are known as the independent or explanatory or exogenous variables. For example, if demand depends upon price, then demand is a dependent variable, while price is the independent variable. And if, more variables determine demand, like income and prices of substitute commodity, then demand also depends upon them in addition to the own price. Then, demand is a dependent variable which is determined by the independent variables like own price, income and price of substitute.

NAME: ARUN KUMAR .H .N ROLL NUMBER: 571015258

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ASSIGNMENT SET 1

Research Methodology

NAME: ARUN KUMAR H N

ROLL NUMBER: 571015258 .

2. Extraneous variable: The independent variables which are not directly related to the purpose of the study but affect the dependent variable are known as extraneous variables. For instance, assume that a researcher wants to test the hypothesis that there is relationship between childrens school performance and their self-concepts, in which case the latter is an independent variable and the former, the dependent variable. In this context, intelligence may also influence the school performance. However, since it is not directly related to the purpose of the study undertaken by the researcher, it would be known as an extraneous variable. The influence caused by the extraneous variable on the dependent variable is technically called as an experimental error. Therefore, a research study should always be framed in such a manner that the dependent variable completely influences the change in the independent variable and any other extraneous variable or variables.

Q 3. A. Differentiate between Census survey and Sample Survey. A part of the population is known as sample. The method consisting of the selecting for study, a portion of the universe with a view to draw conclusions about the universe or population is known as sampling. A statistical sample ideally purports to be a miniature model or replica of the collectivity or the population constituted of all the items that the study should principally encompass, that is, the items which potentially hold promise of affording information relevant to the purpose of a given research. Sampling helps in time and cost saving. It also helps in checking their accuracy. But on the other hand it demands exercise of great care caution; otherwise the results obtained may be incorrect or misleading. Sampling is opted when the amount of money budgeted is smaller than the anticipated cost of census survey. The decision regarding census or sampling depends upon the budget of the study. Sampling is opted when the amount of money budgeted is smaller than the anticipated cost of census survey. The extent of facilities available staff, access to computer facility and accessibility to population elements - is another factor to be considered in deciding to sample or not. In the case of a homogenous population, even a simple random sampling will give a representative sample. If the population is heterogeneous, stratified random sampling is appropriate.

b. Analyze multi-stage and sequential sampling. Multi-Stage Sampling: In multi-stage sampling method, sampling is carried out in two or more stages. The population is regarded as being composed of a number of second stage units and so forth. That is, at each stage, a sampling unit is a cluster of the sampling units of the subsequent stage. First, a sample of the first stage sampling units is drawn, then from each of the selected first stage sampling unit, a sample of the second stage sampling units is drawn. The procedure continues down to the final sampling units or population

NAME: ARUN KUMAR .H .N ROLL NUMBER: 571015258

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ASSIGNMENT SET 1

Research Methodology

NAME: ARUN KUMAR H N

ROLL NUMBER: 571015258 .

elements. Appropriate random sampling method is adopted at each stage. It is appropriate where the population is scattered over a wider geographical area and no frame or list is available for sampling. It is also useful when a survey has to be made within a limited time and cost budget. The major disadvantage is that the procedure of estimating sampling error and cost advantage is complicated. Sub-sampling is a part of multi-stage sampling process. In a multi-stage sampling, the sampling in second and subsequent stage frames is called sub-sampling. Sub-sampling balances the two conflicting effects of clustering i.e., cost and sampling errors.

Sequential Sampling: Double sampling refers to the subsection of the final sample form a pre-selected larger sample that provided information for improving the final selection. When the procedure is extended to more than two phases of selection, it is then, called multi-phase sampling. This is also known as sequential sampling, as sub-sampling is done from a main sample in phases. Double sampling or multiphase sampling is a compromise solution for a dilemma posed by undesirable extremes. The statistics based on the sample of n can be improved by using ancillary information from a wide base: but this is too costly to obtain from the entire population of N elements. Instead, information is obtained from a larger preliminary sample nL which includes the final sample n.

Q4. List down various measures of central tendency and explain the difference between them? The five various types of measures of central tendency for a frequency distribution and the differences are as listed below: 1. Arithmetic Mean (Mean, A.M.) Arithmetic mean of a set of values is obtained by dividing the sum of the values by the number of values in the set. Arithmetic mean of the values x1, x2, xn is

2. Median Median of a set of values is the middle most value when they are arranged in the ascending order of magnitude. (Such an arrangement is called an array). It is a value that is greater than half of the values and lesser than the remaining half. The median is denoted by M. 3. Mode Mode is the value which has the height frequency. It is the most frequently occurring value. It is denoted by Z. In the case of raw data, and also in the case of a discrete frequency distribution, mode is the value with highest frequency. 4. Geometric Mean (G.M.) The geometric mean of n values is the nth root of the product of the values. It is denoted by G. Thus, geometric mean of the values x1, x2, x3, xn is

5. Harmonic Mean (H.M.)

NAME: ARUN KUMAR .H .N ROLL NUMBER: 571015258

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ASSIGNMENT SET 1

Research Methodology

NAME: ARUN KUMAR H N

ROLL NUMBER: 571015258 .

The harmonic mean of n values is the reciprocal of the arithmetic mean of the reciprocals of the values. It is denoted by H. Thus, harmonic mean of the values x1, x2, x3, . xn is

Q.5. Select any topic for research and explain how you will use both secondary and primary sources to gather the required information. Topic of Research: Sales of Drugs and Biological to Large Volume Purchasers Primary Data Study Limitations In order to undertake any study, one must have access to adequate data. While the project team made a significant effort to acquire the best available data for this report, the available data had significant limitations that prevented the study from drawing conclusions on the primary questions of interest. The data limitations included: Sample sizes were small in both the interviews and the primary invoice data, due to a combination of low target numbers of respondents and low response rates. Ultimately, the project relied on 36 interviews and on invoices from six physicians offices and twelve hospitals. Some interviews were incomplete or difficult to interpret, due to the sensitivity and complexity of the material. Data on the net acquisition cost by type of purchaser or average sales price by type of purchaser were not available due to a number of factors discussed below. By nature, both the primary and secondary invoice data lacked information on special pricing terms and manufacturer rebates. A providers net acquisition cost is its invoice price less any special pricing terms and rebates. A manufacturers ASP is its average invoice price less the average of any wholesaler or distributor mark-ups less the average of all purchaser and nonpurchaser rebates. The secondary invoice data had additional limitations. It was aggregated according to broad classes of trade, many of which contained multiple sub-categories of purchasers believed to receive differential pricing. It also consisted of average prices only and did not provide measures of price dispersion within classes of trade. No manufacturer submitted complete data on ASP by class of trade for a focus drug. The study data were collected prior to or very shortly after the implementation of ASPbased payment. The market for the drugs covered by Part B of Medicare is very dynamic and is still adjusting to the new environment created by the MMA. Classes of trade were not well defined. The definitions of the various types of classes are not clear and consistent among market participants, and market participants working definitions of the classes of trade are not necessarily consistent with the MMAs implied concepts of prudent physicians and large volume purchasers. Due to these limitations, this study was not conclusive on the key questions of whether physicians net acquisition costs were comparable to large volume purchasers net acquisition costs and the effect on ASP of eliminating large volume purchasers from the calculation.

NAME: ARUN KUMAR .H .N ROLL NUMBER: 571015258

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ASSIGNMENT SET 1

Research Methodology

NAME: ARUN KUMAR H N

ROLL NUMBER: 571015258 .

Secondary Data Collection Research Questions and Findings The study was organized according to seven research questions. These questions and the associated findings follow: 1. What shares of the top drugs covered by Part B of Medicare are purchased by various types of purchasers? Interview and secondary data concurred that the major purchasers of the top drugs covered by Part B of Medicare were physicians and hospitals, not GPOs, HMOs, or PBMs. The secondary data analysis did offer volumes by class of trade for the categories of purchasers defined in the IMS data. For most of the 25 study HCPCs, the class of trade with the largest share of the market was clinics (including physicians offices); hospitals were usually the class of trade with the second largest market share. 2. Do different types of purchasers face the same net acquisition costs for Part B prescription drugs? The study was unable to obtain data on net acquisition costs by type of purchaser. However, the interviews suggested that different types of purchasers face different net acquisition costs and the primary and secondary invoice data suggested that different purchasers face different invoice prices for the prescription drugs offered by Part B of Medicare examined in this study. Both comments made in interviews and a review of the secondary data indicated that for the sample of drugs examined in this study the main source of variation in net acquisition costs/average invoice prices was different purchasers payin g different prices for the same drug (NDC-11) within a molecule, not different purchasers choosing different drug products within that molecule. The interviews also yielded a list of purchaser-level drivers of net acquisition costs, including class of trade, ability to influence market share, volume, and purchaser expertise. 3. Which purchasers face lower and higher net acquisition costs? While the study found that differences in net acquisition costs/invoice prices existed, we did not find conclusive and consistent evidence concerning whether physicians were disadvantaged relative to large volume purchasers. The primary data collection (both interviews and invoice data) offered some anecdotal information suggesting that physicians paid higher net prices than hospitals for some drugs. In contrast, the secondary data showed that as a general rule, clinics (the class of trade that included physicians) faced the lowest average invoice prices per dose of all the major classes of trade for most of the study HCPCs. 4. If differences in net acquisition costs exist, do they vary by drug? Both the interviews and the secondary data analysis clearly indicated that differences in net acquisition costs/average invoice prices varied by drug. The interviews highlighted that the presence of therapeutic or generic competition were critical factors. 5. Would differences in net acquisition costs for different types of purchasers be reflected in ASP if it were calculated by class of trade? As a conceptual matter, ASP differs from net acquisition cost because it does not account for wholesaler and distributor mark-ups, which are part of net acquisition costs, and because it is reduced by non-purchaser rebates, which are not part of purchasers net acquisition costs. Interview respondents suggested that wholesalers and distributors margins were small, the implication being that ASP, if calculated by class of trade, would be likely to reflect the differences in net acquisition costs by class of trade.1 6. Are there differences in ASP when it is calculated for different types of purchasers? The study was not conclusive on this point. No manufacturer submitted complete data on ASP by class of trade for a focus drug, and no other market participant was in a position to comment directly on this subject.

NAME: ARUN KUMAR .H .N ROLL NUMBER: 571015258

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ASSIGNMENT SET 1

Research Methodology

NAME: ARUN KUMAR H N

ROLL NUMBER: 571015258 .

7. Does excluding hospitals, HMOs, or other large volume purchasers affect ASP calculations? Due to the lack of information on ASP by class of trade, the study was not conclusive on this point. Discussion The sensitive and confidential nature of prescription drug pricing makes this an extremely challenging topic to research. This study used the best data available at this point in time but was ultimately inconclusive due to data limitations. At this point in time, market participants are not willing to provide price data at a sufficient level of detail to permit a thorough analysis of net acquisition costs and average selling prices by class of trade. To be successful, future work on net acquisition costs and ASP for the drugs covered by Part B of Medicare must be based on adequate data that overcome some or all of the limitations described above. Any continuing work on this topic must also recognize that the market for prescription drugs, in general, is very dynamic and has just begun to adjust to the new coverage and pricing environment created by the MMA.

Q 6. a. Explain the role of Graphs and Diagrams? Top Management and common man do not have time to go through mass data and to understand its nature. For them, diagrammatic and graphical presentations are more intelligible, attractive and appealing. The diagrammatic representations give a birds eyeview of the data. They facilitate comparison of various aspects of data. They create ever lasting impressions. However, they cannot be considered as alternatives for numerical data. Mathematical calculations are not possible. They do not give accurate values. Diagrams may be one-dimensional or two dimensional. In one-dimensional we have bar diagrams. In two dimensional we have pie diagram. i) Simple bar diagram ii) component bar diagram iii) sub-divided bar diagram iv) percentage bar diagram are different bar diagrams. Graphs are used mainly for frequency distributions. Some types of graphs are: i) Histogram ii) Frequency polygon iii) Frequency curve iv) Ogives [cumulative frequency curves]

b. What are the Types and General rules for graphical representation of data? Graphical representation is done of the data available this being a very important step of statistical analysis. Statistically the term is used for numerical facts such as measures of height, weight and scores on achievement and intelligence tests. Tests, experiments and surveys in education and psychology provide us valuable data, mostly in the shape of numerical scores. For understanding data available and

NAME: ARUN KUMAR .H .N ROLL NUMBER: 571015258

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ASSIGNMENT SET 1

Research Methodology

NAME: ARUN KUMAR H N

ROLL NUMBER: 571015258 .

deriving meaning and useful conclusion, the data have to be organized or arranged in some systematic way. This can be done by following ways 1. statistical tables 2. rank order 3. frequency distribution Rules for constructing tables: 1. Title of the table should be simple, concise and unambiguous. As a rule, it should appear on the table. 2. The table should be suitably divided into columns and rows according to the nature of data and purpose. These columns and rows should be arranged in a logical order to facilitate comparison. 3. The heading of each columns or row should be as brief as possible. Two or more columns or rows with similar headings may be grouped under a common heading to avoid repetition and we may have subheadings or captions. 4. Sub total for each separate classification and a general total for all combined classes are to be given. These totals should be given at the bottom or right of the concerned items. 5. The units in which the data are given must invariably be mentioned. 6. Necessary footnotes should be providing essential explanation of the points to ambiguous representation of the tabulated data must be given at the bottom of the table. 7. The sources from where the data have been received should be given at the end of the table. 8. In tabulating long columns of figures, space should be left after every five or ten rows. 9. If the numbers tabulated have more than three significant figure, the digit should be grouped in threes. For ex.- 4394756 as 4 394 756. 10. For all purposes and by all means, the table should be as simple as possible so that it may be studied by the readers with minimum possible strain and create a clear picture and interpretations of the data.

NAME: ARUN KUMAR .H .N ROLL NUMBER: 571015258

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