Elective Business Research Methods

Business Research MethodsUnit 715 min read

Questionnaire Design: Types, Principles & Best Practices

Unit 7 of Business Research Methods explores how to design effective questionnaires for data collection, covering types (structured/unstructured), key principles, question formats, and common pitfalls—with real-world examples from Nepali businesses like eSewa and Daraz.

What is a Questionnaire?

A questionnaire is a structured set of questions designed to collect data from respondents systematically. It is a primary data collection tool used in surveys, interviews, and experiments to gather quantitative or qualitative information.

Why is Questionnaire Design Critical?

  • Poorly designed questionnaires lead to biased, incomplete, or unusable data.
  • A well-designed questionnaire ensures accuracy, reliability, and validity of research findings.
  • It helps in standardizing data collection, making comparisons easier.

Types of Questionnaires

Questionnaires can be classified based on structure, administration method, and purpose. Below is a comparison table:

Type Description Example Use Case Advantages Disadvantages
Structured Predefined questions with fixed response options (e.g., Likert scale). Customer satisfaction surveys (eSewa app). Easy to analyze, consistent responses. Limited flexibility, may miss insights.
Unstructured Open-ended questions allowing free responses. Qualitative market research (Daraz feedback). Rich, detailed responses. Hard to quantify, time-consuming.
Semi-structured Mix of structured and open-ended questions. Employee feedback surveys (Nabil Bank). Balances structure and flexibility. Moderate analysis effort.
Online Administered via digital platforms (Google Forms, SurveyMonkey). NEPSE investor sentiment surveys. Fast, cost-effective, global reach. Tech dependency, sampling bias.
Paper-based Distributed physically (e.g., door-to-door surveys). Local market research (Kathmandu traffic study). No tech required, good for rural areas. Slow, labor-intensive.
Telephonic Conducted via phone calls. Customer service feedback (Ncell). Direct interaction, good for elderly. High cost, respondent fatigue.
Face-to-face Conducted in person (e.g., interviews). High-stakes business research (Chaudhary Group). High response rate, clarifications possible. Expensive, time-consuming.

Key Principles of Questionnaire Design

A well-designed questionnaire follows these 7 golden rules:

  1. Clarity & Simplicity

    • Use simple, unambiguous language (avoid jargon).
    • Example: Instead of "To what extent do you agree with our service’s efficiency?", ask: "How satisfied are you with our delivery speed?" (Scale: 1-5).
  2. Relevance

    • Every question should directly relate to research objectives.
    • Example: If studying customer retention, avoid questions about product packaging unless relevant.
  3. Avoid Bias

    • Leading questions (e.g., "Don’t you think our service is the best?") skew responses.
    • Double-barreled questions (asking two things at once) confuse respondents.
      • ❌ "Do you like our app’s speed and design?"
      • ✅ "How satisfied are you with our app’s speed?" (1-5) + "How satisfied are you with our app’s design?" (1-5)
  4. Logical Flow

    • Start with easy, general questions, then move to specific/demographic details.
    • Example:
      1. "How often do you use Pathao?" (Daily/Weekly/Monthly)
      2. "What features do you use most?" (Check all that apply)
      3. "What improvements would you suggest?" (Open-ended)
  5. Response Options

    • Closed-ended questions (multiple-choice, Likert scale) are easier to analyze.
    • Open-ended questions provide qualitative insights but require manual coding.
    • Example of a Likert scale (1-5): "How likely are you to recommend Khalti to a friend?" 1 (Not at all) → 5 (Extremely likely)
  6. Avoid Overloading

    • 10-15 minutes max for online surveys; shorter for phone/paper.
    • Example: A Daraz order tracking survey should not exceed 8 questions.
  7. Pilot Testing

    • Test the questionnaire on a small group before full deployment.
    • Example: Before launching a NTC customer satisfaction survey, test it with 10 employees for clarity.

Question Formats & Their Uses

1. Open-Ended Questions

  • Definition: Respondents answer in their own words.
  • When to Use:
    • Exploring new topics (e.g., "What challenges do you face using eSewa?").
    • Gathering qualitative data (e.g., "Why did you switch from Ncell to NTC?").
  • Example: "Describe your experience with Daraz’s return policy."

2. Closed-Ended Questions

  • Definition: Fixed response options (multiple-choice, yes/no, rating scales).
  • When to Use:
    • Quantitative data (e.g., "How often do you use WhatsApp for business?").
    • Large-scale surveys (e.g., "Are you satisfied with Nabil Bank’s loan process?" Yes/No/Maybe).
  • Subtypes:
    • Multiple Choice: Only one correct answer allowed.
      • Example: "Which payment method do you prefer?" (Khalti/eSewa/Cash/Card)
    • Check-all-that-apply: Multiple answers allowed.
      • Example: "Which features do you use in Google Maps?" (Check all that apply: Directions/Routes/Traffic/Reviews)
    • Likert Scale: Measures degree of agreement (1-5 or 1-7).
      • Example: "How would you rate Pathao’s driver reliability?" (1=Poor, 5=Excellent)

3. Dichotomous Questions

  • Definition: Only two response options (Yes/No, Agree/Disagree).
  • When to Use:
    • Quick screening (e.g., "Have you ever used a digital wallet?" Yes/No).
    • Binary data (e.g., "Do you have a bank account?" Yes/No).
  • Example: "Have you faced any issues with NEPSE’s trading platform?" (Yes/No)

4. Ranking Questions

  • Definition: Respondents order options by preference.
  • When to Use:
    • Prioritizing features (e.g., "Rank these Daraz delivery options from fastest to slowest").
    • Market research (e.g., "Rank these phone brands by importance: Ncell, Smart, Nepal Telecom").
  • Example: "Rank the following eSewa services by how often you use them:"
    1. Bill Payment
    2. Money Transfer
    3. Recharge

5. Scaling Questions

  • Definition: Measures intensity of response (e.g., satisfaction, agreement).
  • Types:
    • Likert Scale (1-5 or 1-7).
    • Semantic Differential Scale (e.g., "Fast" (1) ———— "Slow" (5)).
  • Example (Semantic Differential): "How would you describe Daraz’s customer service?" Poor (1) 2 3 4 5 Excellent

Common Mistakes in Questionnaire Design

Mistake Example How to Fix
Leading Questions "Don’t you think our service is terrible?" Rephrase neutrally: "How would you rate our service?" (1-5)
Double-Barreled Qs "Are you satisfied with our app’s speed and design?" Split into two: "How satisfied are you with speed?" + "How satisfied with design?"
Ambiguous Language "How often do you utilize our platform?" (What does "utilize" mean?) Use simple words: "How often do you use our app?" (Daily/Weekly/Monthly)
Overuse of Open-Ended Qs Too many "Why?" questions in a survey. Limit to 2-3 open-ended questions max.
Biased Response Options "Which is better: Our product or our competitor’s?" (Forces comparison) Avoid forced choices; ask separately: "How satisfied are you with our product?"
Skipping Pilot Test Launching a survey without testing it first. Always test with 5-10 respondents before full rollout.

Step-by-Step Questionnaire Design Process

flowchart TD
    A["Define Research Objectives"] --> B["Review Literature"]
    B --> C["Develop Questions"]
    C --> D["Pretest Questionnaire"]
    D --> E["Revise Based on Feedback"]
    E --> F["Finalize & Deploy"]
    F --> G["Collect & Analyze Data"]

Step 1: Define Research Objectives

  • What problem are you solving?
    • Example: "How can eSewa improve user experience for bill payments?"
  • What data do you need?
    • Quantitative (numbers) or qualitative (opinions)?

Step 2: Review Literature

  • Check if similar questions have been asked before.
  • Example: If studying customer loyalty, review past surveys from Nabil Bank or Global IME.

Step 3: Develop Questions

  • Start with broad questions, then narrow down.
  • Example for Daraz delivery delays:
    1. "How often do you experience delayed deliveries?" (Never/Rarely/Often)
    2. "What are the main reasons for delays?" (Open-ended)
    3. "Would you switch to another platform if delays persist?" (Yes/No)

Step 4: Pretest the Questionnaire

  • Test with 5-10 respondents (colleagues, friends, or a small sample).
  • Ask:
    • "Was any question confusing?"
    • "Did you skip any questions? Why?"

Step 5: Revise & Finalize

  • Remove ambiguous or redundant questions.
  • Ensure logical flow (easy → difficult, general → specific).

Step 6: Deploy & Analyze

  • Distribute via online tools (Google Forms), paper, or interviews.
  • Example: NEPSE investor survey → Deploy via email with a Google Form link.

Real-World Applications in Nepal

1. eSewa: Improving User Experience

  • Problem: High customer complaints about failed transactions.
  • Solution: Designed a structured questionnaire with:
    • Closed-ended: "How often do transactions fail?" (Never/1-2 times/3+ times).
    • Open-ended: "What steps should eSewa take to reduce failures?"
  • Outcome: Identified bank integration issues as the main problem → led to API improvements.

2. Daraz: Customer Satisfaction Survey

  • Problem: High cart abandonment rate.
  • Questionnaire Design:
    • Likert Scale: "How satisfied are you with checkout speed?" (1-5).
    • Ranking: "Rank these checkout issues by importance" (Payment options, Loading speed, Security).
  • Result: Found slow loading speed was the top issue → optimized server response time.

3. Ncell: Network Quality Feedback

  • Problem: Customers complaining about dropped calls.
  • Questionnaire Approach:
    • Dichotomous: "Do you experience dropped calls?" (Yes/No).
    • Open-ended: "Describe the situation when calls drop."
  • Insight: Most drops occurred in hilly areas → led to tower upgrades in remote regions.

4. Nabil Bank: Loan Repayment Behavior

  • Problem: High default rates on personal loans.
  • Research Questions:
    • "What is your primary reason for taking a loan?" (Education/House/Business).
    • "How confident are you in repaying?" (1-5 Likert scale).
  • Finding: Lack of financial literacy was a key factor → led to mandatory repayment counseling.

Case Study: Chaudhary Group’s Market Research

Problem: Declining sales in retail stores despite high footfall. Solution: Designed a mixed-method questionnaire for customers.

Questionnaire Structure

Section Question Type Example Question
Demographics Closed-ended "What is your age group?" (18-25, 26-35, 36-45, 45+)
Shopping Habits Multiple Choice "How often do you visit Chaudhary stores?" (Daily/Weekly/Monthly)
Satisfaction Likert Scale "How would you rate our product variety?" (1-5)
Pain Points Open-ended "What products do you find missing in our stores?"
Loyalty Dichotomous "Would you recommend Chaudhary stores to friends?" (Yes/No)

Key Findings & Actions

  • 60% of customers wanted more organic products → Led to expanded organic section.
  • 30% complained about long queues → Introduced self-checkout kiosks.
  • Low satisfaction with online orders → Improved e-commerce logistics.

Exam Tip: How to Score Full Marks

1. Understand the Marking Scheme

  • Definition (5 marks): Clearly explain what a questionnaire is and its purpose.
  • Types (10 marks): Compare structured vs. unstructured with real examples (e.g., eSewa vs. Daraz feedback).
  • Question Formats (15 marks): Know when to use open-ended vs. closed-ended with examples.
  • Design Principles (10 marks): List and explain clarity, relevance, no bias, logical flow.
  • Case Study (10 marks): Apply concepts to a real Nepali business (e.g., NTC, Nabil Bank).

2. Common Exam Questions & How to Answer

Question Type How to Answer for Full Marks
"Explain the importance of questionnaire design." Discuss accuracy, reliability, validity + real-world impact (e.g., Daraz improving delivery).
"Differentiate between structured and unstructured questionnaires." Use a table with examples (e.g., NEPSE survey vs. open-ended Nabil Bank feedback).
"Design a questionnaire for [topic]." Follow step-by-step process, include mix of question types, and justify choices.
"What are the common mistakes in questionnaire design?" List 5 mistakes with examples and fixes (e.g., leading questions → rephrase neutrally).
"How would you pretest a questionnaire?" Explain pilot testing, feedback collection, and revisions with a real example (e.g., eSewa).

3. Model Answer Structure (10 Marks)

Question: "Design a questionnaire to assess customer satisfaction with Pathao’s ride-hailing service."

Answer:

  1. Introduction (1 mark)

    • "A well-structured questionnaire ensures accurate data collection for improving Pathao’s services."
  2. Research Objectives (2 marks)

    • "Assess satisfaction with driver behavior, app usability, and pricing."
  3. Questionnaire Design (5 marks)

    • Section 1: Demographics (Age, location, frequency of use).
    • Section 2: Driver Experience (Likert scale: "How satisfied are you with driver punctuality?").
    • Section 3: App Usability (Ranking: "Which feature do you use most?").
    • Section 4: Pricing (Open-ended: "Do you find fares reasonable? Why/why not?").
    • Section 5: Feedback (Open-ended: "What improvements would you suggest?").
  4. Pilot Testing (1 mark)

    • "Test with 10 regular Pathao users to check clarity and response time."
  5. Conclusion (1 mark)

    • "This questionnaire will help Pathao identify key pain points and enhance customer experience."

Final Checklist Before Submission

  • All question types (open/closed, Likert, ranking) are justified.
  • Real-world examples (eSewa, Daraz, Ncell) are integrated.
  • Avoids bias, ambiguity, and leading questions.
  • Follows logical flow (easy → difficult, general → specific).
  • Includes a pilot testing plan.

likert scale exampleHow to design a 5-point Likert scale for satisfaction (Image: Nicholas Smith vectorization: Own work, CC BY-SA 3.0, via Wikimedia Commons)

Based on the PU BBA (PU) syllabus for Business Research Methods, unit 7.

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