answer problem definition questions and research methodology questions based on the case below please

Problem Definition

1. Briefly describe the background of the case. Make sure you identify the symptoms.
2. State the research question(s) and the research objective(s).
3. After reviewing questions considered by the EFCU Board of Directors evaluate the relevancy of the research objectives. Do you want to modify them? How?
4. Do you want to add another research objective? Why or why not? If so simply state the proposed research objective.
5. Specify at least one hypothesis you want to test. Why?

Research Methodology

1. Research Design: Given the stated objectives, is the research design appropriate? The method for data collection is a self-administered questionnaire (mail survey). Is the mail survey the best method for collecting the data for the EFCU research project?
2. Questionnaire relevancy: Does the questionnaire provide all the information needed to address the research questions and achieve the objectives of the research? Are there any redundant questions? Do you want to include additional questions?
3. Sampling: Are the sampling procedures appropriate? Do you have any suggestions?
4. Response Rate/Incentives: Are the incentives appropriate? Any suggestions?
5. General Comments: Assume that you were the head of the research project. Is it anything that you would do differently? Why? Or why not?

Case 1. Employees Federal Credit Union

Employees Federal Credit Union (EFCU) is the credit union for a Fortune 500 firm. Any employee of the organization is eligible for membership in the employees credit union.

Over the past few years, the Employees Federal Credit Union has accumulated a large amount of surplus funds, which have been invested in certificates of deposit. It has also experienced a lower loan/share ratio than other credit unions of similar size. Because of these factors, the credit unions average earnings on its investments have slowly declined and its profit margins are being squeezed. The EFCU Board of Directors decided that a research project should be conducted to determine why its members are not borrowing money from the credit union. More specifically, the research project was mandated to answer the question of why members are borrowing money from other alternative sources instead of from the credit union.

In addition to the above, the EFCU Board of Directors expressed its desire to determine what the members attitudes were toward the overall management and operations of the credit union. It was determined that the following questions should be addressed, as well:

How informed is the membership about the services provided by the credit union?

Are there any differences between members who live in the area of the firms headquarters and members who live outside of the area in opinion toward borrowing funds and the services provided by the credit union?

RESEARCH OBJECTIVES

To respond to the questions raised by the board, the following objectives were developed. The research design was formulated to address each of the objectives stated below:

To determine the reasons why people join the credit union

To determine the reasons why members use other financial institutions when they need to borrow funds

To measure member attitudes and beliefs about the proficiencies of credit union employees

To determine whether there are any perceived differences between members who live in the area of the firms headquarters and members who live elsewhere

To determine member awareness of the services offered by the credit union

To measure member attitudes and beliefs about how effectively the credit union is operated

RESEARCH DESIGN AND DATA COLLECTION METHOD

The research data were collected using a mail questionnaire survey. This technique was determined to be the best method for collecting the research data for the following reasons:

The credit union members were widely dispersed geographically.

The board wanted to minimize the cost of conducting the research.

Several of the questions asked in the questionnaire were of a sensitive nature.

The board had the flexibility of being able to wait for the survey results before taking any action.

A copy of the questionnaire used to gather the research data is provided in Case Exhibit 2.1. Most of the questions were designed as structured questions because of the variation in the educational backgrounds, job functions, and interests of the members surveyed. However, the respondents were given the flexibility to answer several key questions in an unstructured format. The Likert scale was principally used where attitude measurements were requested.

SAMPLING PROCEDURES

The population of the EFCU is well-defined; consequently, a simple random sample of the membership was selected. A sample size of 300 was calculated using the estimated population standard deviation based on the responses from 15 members to question 37 of the questionnaire. Question 37 was used because it capsulized the essence of the research project.

The random numbers used in making the selection of the sampling units were generated with the help of a personal computer. The sampling frame used was the January 31 trial balance listing of the EFCU membership. According to the sampling frame, EFCU had 3,531 members on that date. As a result, the 300 random numbers were generated within the range of 1 to 3,531. Each random number was matched to a corresponding number in the sampling frame, and those individuals were selected to receive copies of the survey questionnaire.

FIELDWORK

Most of the fieldwork for the research project, including all of the editing and coding of the survey data, was performed by the Supervisory Committee Chairperson. The following is a list of the (much-appreciated) assistance received during the field procedures:

Bob Perkins obtained a copy of the most currently available listing of the membership of the EFCU.

The payroll department prepared mailing labels for all the members in the sample who were having withholding for the credit union taken out of their payroll checks.

The credit union clerks obtained the addresses and prepared mailing labels for all the remaining individuals selected in the sample.

Administrative assistants helped copy and collate the survey questionnaires and prepare them for mailing.

Ron Walker mailed all of the survey questionnaires.

The survey data from the structured questions were coded based on classifications established by the researcher. The codes were input into a series of databases using an IBM personal computer and a statistical software package.

Of the 125 returned questionnaires, two were not included in the survey results. One of the questionnaires was returned without the first two pages attached, and the other questionnaire appeared to be deliberately falsified; not only were all the responses on this questionnaire at the extremes, but a number of contradictions were noted as well.

ADDITIONAL INFORMATION

The survey is attached as Exhibit 1.1. Several of the questions will require the use of a computerized database. Each variable name is represented by its question number. Q1 is the variable name for question 1, Are you a member of the Employees Federal Credit Union? Q2 is the variable name for question 2, etc. Case Exhibit 1.2 presents the coding.

CASE EXHIBIT 1.1 EFCU Member Opinion Survey

1. Are you currently a member of the Employees Federal Credit Union (EFCU)?

Yes ( ) No ( )

If no, please have the member of your household who is a member of the EFCU complete the questionnaire. If no one in your household is a member, please return the questionnaire in the enclosed prepaid envelope.

2. Why did you join the credit union? (Check as many answers as are applicable.)

___ Convenience

___ Higher interest rates on my savings than other financial institutions pay

___ More personal than other facilities

___ Wanted a readily available source for borrowing money

___ Advertisements prompted me to join

___ Otherplease explain: _____________________________________________________________________________________________

Statements 3 through 6 ask for your opinion of the credit union employees. Check the response that best describes your rating of the credit union employees in each category. Please check only one response for each statement.

3. The credit union employees are courteous.

Strongly Strongly

disagree Disagree Uncertain Agree agree

( ) ( ) ( ) ( ) ( )

4. The credit union employees are helpful.

Strongly Strongly

disagree Disagree Uncertain Agree agree

( ) ( ) ( ) ( ) ( )

5. The credit union employees are professional.

Strongly Strongly

disagree Disagree Uncertain Agree agree

( ) ( ) ( ) ( ) ( )

6. The credit union employees are always available.

Strongly Strongly

disagree Disagree Uncertain Agree agree

( ) ( ) ( ) ( ) ( )

7. What is your opinion about the rates the credit union is paying on its share (members/savings) accounts?

A. Very high ______ B. High ______ C. Average ______

D. Low ______ E. Very low ______ F. No opinion ______

8. What is your opinion about the rates the credit union is charging its members to borrow funds?

A. Very high ______ B. High ______ C. Average ______

D. Low ______ E. Very low ______ F. No opinion ______

9. How often do you receive a financial statement of your account activity?

Too Very About Not often

often often right enough Never

( ) ( ) ( ) ( ) ( )

10. How would you rate the accuracy of your statements?

Excellent Good Fair Poor

( ) ( ) ( ) ( )

11. Are they easy to understand?

Yes ( ) No ( )

12. Do you feel that the credit union maintains your account information in a confidential manner?

Yes ( ) No ( )

The questions in the next set are important in determining how effective the credit union has been in communicating its different services to the members. Please answer each question honestlyremember, there are no right or wrong answers.

Circle the response that best describes your awareness of the services offered by the credit union.

Circle 1If you were aware of the service and have used it.

Circle 2If you were aware of the service but have not used it.

Circle 3If you did not know this service was offered by the credit union.

Aware Aware Unaware and but Have of Have Used Not Used Service

13. Regular share accounts 1 2 3

14. Special subaccounts 1 2 3

15. Christmas club accounts 1 2 3

16. Individual retirement accounts 1 2 3

17. MasterCard credit cards 1 2 3

18. Signature loans 1 2 3

19. New car loans 1 2 3

20. Late model car loans 1 2 3

21. Older model car loans 1 2 3

22. Household goods/appliance loans 1 2 3

23. Recreational loans 1 2 3

24. Share collateralized loans 1 2 3

25. IRA loans 1 2 3

26. Line of credit loans 1 2 3

27. Do you currently have a loan with the credit union?

Yes ( ) No ( )

28. During the past year, have you borrowed money from a bank or other lending source other than the credit union?

Yes ( ) No ( )

If no, go to question 30.

29. Why did you go to a source other than the credit union?

___ My loan application at the credit union was not approved.

___ The credit union did not offer this type of credit.

___ I found better loan rates elsewhere.

___ I have an established credit line elsewhere.

___ I prefer to use a local financial institution.

___ Other: ___________________________________________________________________________________________________________

For statements 30 through 34, check the response that best describes your feelings about the statements. Check only one response for each statement given.

30. The credit unions loan rates are lower than those offered by other institutions.

Strongly Strongly

disagree Disagree Uncertain Agree agree

( ) ( ) ( ) ( ) ( )

31. The credit union personnel will keep my personal financial information confidential.

Strongly Strongly

disagree Disagree Uncertain Agree agree

( ) ( ) ( ) ( ) ( )

32. The credit union is prompt in processing loan applications.

Strongly Strongly

disagree Disagree Uncertain Agree agree

( ) ( ) ( ) ( ) ( )

33. The current financial services provided by the credit union meet the needs of its members.

Strongly Strongly

disagree Disagree Uncertain Agree agree

( ) ( ) ( ) ( ) ( )

34. The loan applications used by the credit union are simple and easy to complete.

Strongly Strongly

disagree Disagree Uncertain Agree agree

( ) ( ) ( ) ( ) ( )

35. Which of the services provided by the credit union do you like best?

_______________________________________________________________________________

36. Which of the services provided by the credit union do you like least?

_______________________________________________________________________________

37. Overall, how do you feel the credit union is being managed and operated?

A. Excellent______ B. Good ______ C. Average ______

D. Poor ______ E. Very poor______ F. No opinion ______

38. Do you live in the headquarters area?

Yes ( ) No ( )

If yes, go to question 40.

39. Do you feel the credit union meets your needs as well as those of members who live in the headquarters area?

Yes ( ) No ( )

If no, please explain:___________________________________________________________________________________________________

_______________________________________________________________________________

40. If you were managing the credit union, what changes would you make and what additional services, if any, would you provide?

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

We sincerely appreciate the time and effort you made in completing this questionnaire. Thank you for your help.

CASE EXHIBIT 1.2 Codes for Questionnaire

strongly disagree = 1, strongly agree = 5

very high = 1, very low = 5, no opinion = 6

too often = 1, never = 5

excellent = 1, poor = 4

excellent = 1, very poor = 5, no answer = 6

yes = 1, no = 2, no answer = 3

aware and have used = 1, unaware = 3