2010 MBA RM Methodology 2

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CHAPTER THREE:

1 Methodology

In the following chapter I will present the selected research methodology used in my

study and explain the reasons behind this choice. Furthermore it will be explained

how the research methods have been implemented in order to answer the research

objectives, as finally will be discussed my concerns about the limitations and

potential problems of this research, as well as any validity and reliability issues

faced.

The principles and the appropriate choice of the research methodology have been

discussed by a number of authors as a key decision for the research project (Bryman

& Bell, 2007; and Saunders et al., 2009). Biggam (2008) lists the following key topics

that should be discussed in the research methodology chapter:

Figure 1.1 Research Methodology

Source: Adapted from Biggam, 2008



1.1 Research approach

Saunders et al. (2009) pointed out that first the researcher should select between two

main research approaches: deductive, which idea is to create theory on the basis of

the available literature, as well as existing findings and test it through observation

and inductive, where first you make the observation, then devise theory as a result of

the data analysis.

However, the methodological approach that I am using in order to answer my

research questions and achieve the purpose of this research project is deductive

research method (Bryman & Bell, 2007).

Although Blaxter et al. (2006) advocate that adopting the inductive approach

involves depth understanding and competent knowledge about the research idea,

which allows the researcher to reveal different alternative explanations of the

problem, I’ve chosen deductive, because as Saunders et al. (2009) argue the inductive

approach involves higher degree of uncertainty due to the fact that the researcher is

moving from specific observations to a broader theories and conclusions.

Another motive for my choice is that deductive process is organized in a more

consistent way, as each new step follows the previous in a logical sequence and the

conclusions are drawn through logical reasoning (Bryman and Bell, 2007).

I have decided to adopt deductive approach because the idea of my research is

initiated by the theory for relationship marketing and its consequences. Through the

findings that I would come to in my research I would reject or confirm the positive

correlation, obtained in the previous theories and researches, between the

relationship marketing tactics and customer satisfaction and retention (Ghauri &

Gronhaug, 2005).

The limited time is another reason to apply a deductive approach, because the

inductive study is more exploratory and is connected with long process of collecting

and analyzing data in order to develop a theory from it, while deductive approach is

more narrow

and

it

investigates

specific

theory

or

hypothesis

(Bryman

&

Bell,

2007).



1.2 Research strategy

Many authors (Bryman & Bell, 2007; Biggam, 2008; Saunders et al., 2009;) review

some of the available strategies that could be considered for a project depending of

their ability to answer the research questions and meet the objectives of the study:

survey, case study, experiment, ethnography, action research and so on. All of them

agree that no research strategy is superior to the other, but it should be selected the

one that best suits the research.

1.2.1

Case

Study

Due to the reason that I am going to examine the characteristics of a particular

industry in my country, I have decided to implement case study, seeing it as the most

appropriate research strategy for my study. Gummesson (2000) also advocates that

an examination of a certain field, in my case relationship marketing, conducted on

various organizations in an industry should be done using case study.

Although some

authors

(Biggam,

2008;

Collis

&

Hussey,

2009)

criticize

the

case

study

method because of the inability sometimes to provide reliable and general findings,

focusing on a single industry case will help me to investigate easier this phenomenon

in a real life context and to challenge the existing theory through real life situations

and issues.

1.2.2

Qualitative

versus

Quantitative

Method

Another essential issue that should be cleared out when starting up a research is to

choose also appropriate method for collecting the data. According to Bryman and

Bell (2007) there could be differentiated two data collection techniques used in most

scientific research: qualitative and quantitative. Qualitative research is focused on

collection of more variable information from the individual and is usually connected

with using of non‐numerical data for deeper understanding of the characteristics of

the researched area (Gummeson, 2000). On the contrary quantitative research is,



according to Collis & Hussey (2009), concerned with numbers, which means that it

emphasizes quantification in data collection and analysis therefore the measures are

often standardized. Biggam (2008) argues that in reality it is very popular for the

researchers to

mix

and

match

both

quantitative

and

qualitative

approach,

as

sometimes it could provides better opportunities to answer the research questions.

For my study I apply quantitative research method, since I believe that this method is

the most appropriate way to measure customers’ attitudes and behavior towards the

relationship marketing tactics. I have created a model for reviewing of the existing

knowledge and thereby building hypothesis, therefore the quantitative approach will

enable me

to

test

my

hypothesis

through

more

reliable,

accurate

and

objective

statistically analyzed data. Moreover, my choice is supported by Saunders et al.

(2009), as well as Bryman & Bell (2007), who stress that adopting a deductive

approach usually is more often related with the quantitative research strategy and

presume the conceptions to be organized in a way which allows the facts to be

measured quantitatively.

1.2.3

Sampling

The available sampling techniques provide the researcher the possibility to reduce

the amount of collected data through focusing on a sub‐group than on the whole

population (Ghauri & Gronhaug, 2005). In this research the case selection is focused

on the Bulgarian steel distribution industry, so due to the nature of my research

questions

and

objectives,

as

well

as

choice

of

research

strategy,

I

would

apply

non‐

probability sampling. My research is focused on customer’s point of view, so the

sample frame includes representatives of companies, using different steel products,

who are involved in purchasing decision‐making process. According to the central

limit theorem, reviewed by Saunders et al. (2009), in this case the sample should be

more than 50 in order to bring good results. Therefore I used our company database

to reach a sample size of 100 respondents in order to be sure that my research will



meet the minimum required participation, as I have received 87 responses from

which 86 reliable to use and 1 poorly completed.

Once I have chosen the research approach and research strategy, my focus moves

towards the

methods

that

will

be

used

in

order

to

clarify

how

the

empirical

data

will

be collected and analyzed.

1.3 Data collection

As we know (Ghauri & Gronhaug, 2005; Bryman & Bell, 2007; Saunders et al., 2009)

data collection could be divided in two types – primary and secondary. The objective

of the

study

has

been

achieved

by

using

both

components

of

the

research

methodology: reviewing of the literature, primary and secondary sources, containing

information that is relevant to the problem as well as primary data collection through

consistent customers’ perception oriented questionnaire.

1.3.1

Secondary

Data

Collection

Due to

the

fact

that

my

study

is

based

on

the

existing

theories,

the

literature

was

reviewed in depth in order to be achieved good understanding of the researched

field. The secondary data, already collected and studied from other researchers,

includes different sources of literature like books, journals, industry reports and

statistics, different surveys, etc. (Saunders et al., 2009). By default the secondary data

should be examined before any primary research is done, because we need to

examine

what

has

already

been

generated

about

the

topic

and

if

it

will

be

suitable

to

meet our objectives (Blaxter et al., 2006). I also considered the following advantages

of the secondary data: it is not as expensive and time consuming as primary data and

usually it is easy to be verified. In order to collect this data I have reviewed different

scholar databases like Emerald, Science Direct, EBSCO, etc. as the most relevant I

found the customer satisfaction reports of Jacobson & Associates, available at their

web site: www.jacobsonsteel.com.



1.3.2

Primary

Data

Collection

Concerning the primary data, it is essential to choose the most appropriate research

method, because the reliability and validity of the empirical findings may differ

depending on the methodology applied. Brymen & Bell (2007) state that

standardized questionnaire is quite reliable tool that could be utilized for

quantitative method projects. Therefore, for my study, I have decided to develop self

– administrated questionnaire, mainly internet – mediated, organized via online

survey tool eSurveysPro.com and distributed mainly via e‐mails to the respondents

(Saunders et al., 2009).

Questionnaire

My choice of shortly structured questionnaire including multiple choice and closed

questions was defined from the fact that people are more likely to respond if it

doesn’t engage a lot of time and efforts, so from one side I had to design it suitable to

collect valuable information for testing my hypothesis and from another easy to

follow and answer from the respondents, as well as easy for me to process and

compare the data.

In order to be able to identify if the developed questions will bring the required

information, as well as to design the right answers for multiple choice questions, I

did a quick pilot testing on a sample of 10 respondents with different activity chosen

from my focus group.

Using the guideline of Thomas and Burgess (2001) I have created a questionnaire

involving various questions developed according to the relevant literature. First part

is focused on obtaining general information for the company, its buying behavior

and the importance of different purchasing factors. Second part of the questionnaire



aims to evaluate the importance of different services and conditions, as well as to

measure and investigate the customers’ purchase intention, perceptions and attitude

in terms of commitment, loyalty, overall satisfaction, trust in the supplier, etc. Finally

I have

included

different

statements

presenting

different

aspects

of

buyer

‐seller

relationships, using five‐point Likert‐type response scales.

1.4 Data analysis

Once I have the data collected, my research proceeds to its interpretation and

analysis. It is very important the data to be presented in a well structured and easy to

understand way

(Biggam,

2008).

As I am carrying out a quantitative research quantitative techniques for the collected

data analysis has been applied. For the analysis of the data I used descriptive

statistics. The information has been input in Excel tables, graphics and charts and

calculated some statistical indexes to allow easier comparisons (Saunders et al., 2009).

Furthermore a regression analysis has been employed as a statistical tool for this

study. A

regression

analysis

helps

to

understand

relationship

between

various

relationships. According to Chatterjee and Hadi (2006) regression is one of the most

effective tools to analyze the data obtained through quantitative methods. In this

study, it was used because there were 3 variables with relationship marketing being

an independent variable and customer satisfaction and customer retention as

dependent variables on relationship marketing.

1.5 Limitations and potential problems

Some of the limitations were mentioned also in the introduction chapter, as here I

would stress more on the technical and ethical issues that concern my research.

One of the limitations of the current study is that, although the sample includes

almost all of the active customers of my company and is representative for our

branch,

the

scope

of

this

research

is

limited

to

the

steel

distribution

industry

in

Bulgaria, so I could not guarantee that the findings have high generalisability and



this sample is representative enough to investigate the relationship marketing issues

within the whole business‐to‐ business area.

1.5.1

Reliability

and

validity

The validity and reliability of the collected data depends very much on the

questionnaire structure and questions design, as this aims to reduce the possibility of

being subjective in creating the questions and consequently to receive wrong answers

(Saunders et al., 2009). According to Bryman and Bell (2007) validity is connected

with the accuracy and truthfulness of the findings, while reliability is concerned with

the consistency

of

the

tool

for

measuring.

In

order

to

achieve

validity

and

reliability

of the data I have applied controls on each step of the research process –

identification of the research population, data collection and interpretation and

conclusions development. One important tool used to maximize the validity and

reliability is the pilot test of the questionnaire. Also the selected methods for analysis

of the raw data, descriptive statistics and regression analysis helped to be increased

transparency

of

the

findings

and

decreased

the

possibility

for

subjective

hunches.

1.5.2

Ethical

problems

Saunders et al. (2009) discuss that it is very important to consider also the following

potential ethical issues that could occur during the data collection process:

Privacy – during my data collection I considered the rights of the people to

refuse participation in my research, so I limited my e‐mail reminders up to two.

Confidentiality is another ethical issue, concerned that sharing of the

information without the participant permission will be avoided.



Anonymity – for my on – line organized questionnaire there is an option for

the companies to choose whether they prefer to participate anonymously, as this is

stated before the questions.

Misuse of

the

findings

–the

research

is

based

on

the

ethical

standards

and

the

information obtained will not be misused from the interested party in a way that

could affect them.

2010 MBA RM Methodology 2

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