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.