In: Economics
Observation: It may known as, it is the first stage in which one senses that certain changes are occurring or that somenew behaviors, attitudes and feelings are surfacing in one’s environment (i.e., the work place).
Preliminary Information Gathering: - It involves the seeking of information in depth, of what is observed. This could be done bytalking informally to several people in the work setting or to clients or to other relevant sources,thereby gathering information on what is happening and why i.e. unstructured interviews. Then itis followed by structured interviews, the interviews with a predetermined format. Additionallyby doing library research or obtaining information through other sources, the investigator wouldidentify how such issues have been tackled in other situations
Theory Of Formulation: It is an attempt to integrate all the information in a logical manner, so that the factors responsiblefor the problem can be on conceptualized and tested. The theoretical framework formulated isoften guided by experience and intuition. In this step the critical variables are identified andexamined as to their contribution or influence in explaining why the problem occurs and how itcan be solved. Hypothesizing: It is the next logical step after theory formulation.From the theorized network of associationsamong the variables, certain testable hypotheses or educated conjectures can be generated.Hypothesis testing is called deductive research. Sometimes, hypotheses that were not originallyformulated do get generated through the process of induction.
Further Scientific Data Collection: After hypothesis development, data with respect to each variable in hypothesis need to becollected. Further data are collected to test the hypotheses that are generated previously in astudy.
Data Analysis: Data gathered are statistically analyzed to see if the hypotheses that were generated have beensupported. Correlations would be used to analyze and determine the relationship of two or morefactors in the hypotheses for example: stock availability and customer satisfaction etc.
Deduction: Deduction is the process of arriving at conclusions by interpreting the meaning of the results ofdata analysis.