Virtual Sampling:

An Alternative Decision-Making

Methodology

 

Creig R. Kronstedt, Ph.D.

Programs in Management for Adults

Cardinal Stritch College

Milwaukee, WI

 

Society for Judgment and Decision-Making Conference

November 3, 1996

Chicago, IL

 


 

 

Abstract

Establishing accurate behavioral decision-making norms requires the elimination of personal revelation biases. The present research elicited responses to a set of ethical behavior decisions from adult business students at Cardinal Stritch College, Milwaukee, WI. It then asked participants to evaluate the ethicality of business associates, business competitors, and finally of themselves. Regression Analysis of the decisions accounted for seventy percent of the variability of perceptions of the ethicality of others, but was only able to account for fifty percent of the variability of participant's own perceived ethicality.

 

The analysis suggests that using research participants as observers of behavior may provide more validity than asking them to make personal decisions that may be confounded by a personal response bias. The `social desirability' of a particular response may affect a respondent's willingness to share his or her personal feelings as well as the accuracy of responses (Brookhouse, Guion, and Doherty, 1986; Phillips and Clancy, 1972).

 

An alternative methodology is proposed which treats the participant as an observer and reporter of the behavior of those around him or her. The participants' responses may then be viewed as a `virtual sample' of the part of the population to which the participant is exposed with the mean of the sample being the individual him or herself. Just as a large number of sample means form a normal distribution of their own, these `virtual samples' would constitute a normal distribution of `virtual sample means' which may provide a more accurate assessment of the population being sampled than treating the participants as part of a single sample from the population. The methodology proposed is offered as a technique to expand and enhance validity and reliability of decision making research.

 

Developing instruments and procedures to accurately evaluate the decision making process is perhaps the primary challenge for research in decision making. Verbal report is notoriously questionable since participants may be unwilling to report their personal thoughts or may report them inaccurately (Randall and Fernandes, 1991). Though this may seem to be the only way to ascertain such information, its validity (notwithstanding efforts to establish validity through various means) is dubious (Reidenbach and Robin, 1988,1990); (Reidenbach, Robin, and Dawson, 1991); and (Henthome, Robin, and Reidenbach, 1992).

 

The present research attempted to elicit participant judgments of a set of ethical behavior questions and then asked participants to give their perception of the ethical levels of business associates, business competitors, and finally of themselves. Participation was completely voluntary and participants were assured that results would be kept confidential. While demographic information such as gender, age, socio-economic status, etc., might have been informative, it was not germane to the purpose of the study. It was believed that gathering such information might have made the respondents less sure of confidentiality and therefore less willing to give accurate information. This should not be construed as a criticism of research which does gather such information, but rather as a cautionary note that gathering such information when it is not necessary to the focus of a study, may skew the results.

 

It was believed that asking participants to evaluate their associates and competitors might be more accurate method of assessing the decision processes of individuals because as objective observers the participants may be more precise and free of personal response bias. Responses framed as objective decisions also provide a baseline with which to compare personal judgments of appropriate ethical behavior.

 

Having participants make judgments regarding a series of ethical situations provides an ethical profile rather than just an overall measure of ethicality. This profile was used to develop linear regression models to predict the overall measure of ethicality of the individual as well as for the participant's perception of the ethicality of business associates/competitors. The extent to which the regression models of the associates/competitors, and individuals match, is an indication of the validity of the three measures of overall ethicality. A strong match, suggests that a sampling of participants personal decisions accurately reflect the decision making processes of the general population. A weak match suggests that personal response bias skews and confounds the decision making results. The degree with which the objective decisions predict the ethical level of competitors and/or associates vs ones personal ethical level is an indication of which comparison, provides the more valid assessment. If asking a participant to act as an observer provides a stronger prediction than asking the participant to make a personal decision, it may be more valid as a tool for measuring the ethics of the population An objective methodology, if validated, provides a less intimidating, and perhaps more accurate investigative device.

 

Decision Making is not an outgrowth of the individual in isolation, but rather of an interaction of the individual within his or her cultural grouping. Therefore any evaluating of the decisions of individuals is really a measure of the degree to which they have assimilated the value system of their peer group.

 

Since we are generally attempting to establish cultural decision making norms it makes sense to eliminate to whatever degree possible, the biases or half truths of personal revelation. It is, after all, the behavior of the population as a whole which statistical analysis measures. Applying such normative data to a particular individual is of questionable validity.

 

Methodology

 

Participants

Participants were a cross-section of 180 students at the associate's, bachelor's, and master's levels in the Programs in Management for Adults at Cardinal Stritch College, Milwaukee, WI. While the respondents were students in a college business program, they are also working professionals with managerial experience. They ranged in age from mid twenties to early fifties with the average age being in the mid-thirties. They were almost equally divided between men and women. The results, therefore, should better reflect the behavior of the adult population of the business community as a whole.

 

Anonymity

As indicated above, researchers assurance of anonymity may not be completely believed. Participants were told that they were not being asked demographic information because the researcher did not want to be able to identify individuals. Participants were asked to turn in their response sheets face‑down and were informed that if they did not want to participate they should feel free to turn in a blank survey.

 

Survey

The first nine survey questions were chosen because they call for objective judgments of ethical behavior. A ten point scale was chosen because individuals are more familiar with a decimally based number system and 0-10 relates more directly to a percentage level. Narrower scales such as 0-4 or 0-5 compress the range of choice and may make differences harder to discern. In addition, pilot testing suggested that almost all subjects consider these selected behaviors to be at least somewhat unethical. A scale with ethical and unethical as end points tended to result in a ceiling effect at the unethical end of the scale.

 

To increase objectivity, the participants were not asked whether they had engaged in any of the behaviors, but rather, to make a decision about how unethical they believed the behaviors were. Their responses were then used as predictors of their assessment of competitors ethical behavior, of associates ethical behavior, and finally of their own ethical behavior.

 

The survey questions were as follows:

 

HOW UNETHICAL DO YOU CONSIDER THE FOLLOWING BEHAVIORS?

 

1. Giving or accepting gifts/favors for preferential treatment (Quid Pro Quo).

somewhat unethical                                                             very unethical

         1       2       3       4       5       6       7       8       9       10

 

2. Using company materials, supplies, or services for personal use.

somewhat unethical                                                             very unethical

         1       2       3       4       5       6       7       8       9        10

 

3. Taking extra personal time, doing personal business on company time, taking longer than necessary to do a job, or calling in sick to take a day off.

somewhat unethical                                                             very unethical

         1       2       3       4       5       6       7       8       9       10

 

4. Padding an expense account.

somewhat unethical                                                             very unethical

         1       2       3       4       5       6       7       8       9        10

 

5. Violating or allowing a subordinate to violate company rules.

somewhat unethical                                                                              very unethical

1       2       3       4       5       6       7       8       9        10

 

6. Claiming credit for someone else's work or passing blame for errors onto an innocent coworker.

somewhat unethical                                                             very unethical

         1       2       3       4       5       6       7       8       9       10

 

7. Divulging confidential information from company records.

somewhat unethical                                                             very unethical

         1       2       3       4       5       6       7       8       9       10

 

8. Falsifying company reports (concerning time, quality, or quantity).

somewhat unethical                                                             very unethical

         1       2       3       4       5       6       7       8       9        10

 

9. Discriminating against another employee on the basis of gender, race, religion, or sexual preference.

somewhat unethical                                                             very unethical

         1       2       3       4       5       6       7       8       9        10

 

The last three questions of the survey were placed at the bottom of the survey because it was expected that after considering a variety of behaviors, the participants would have a mind set of what ethical issues they were being asked to evaluate. These questions on perceived ethical behavior moved from the more distant to the more personal level.

 

On average, how ethical are business competitors with whom you have contact?

ethical                                                                                 unethical

1       2       3       4       5       6       7       8       9       10

 

On average, how ethical are business associates with whom you have contact?

ethical                                                                                 unethical

1       2       3       4       5       6       7       8       9       10

 

On average, how ethical do you consider yourself?

ethical                                                                                 unethical

         1       2       3       4       5       6       7       8       9       10

 

Standardization of Survey Scales

Surveys typically use Likert type scales though there is little agreement as to whether the scale should be 0-4, 0-5, 0-7, or 0-10; or even whether the scale should be agree-disagree; or strongly agree, agree, disagree, or strongly disagree; etc. (Likert, 1932). What the scales mean to each of the respondents or whether a "0" or "4", or " 5" means the same thing to each respondent is never established. One of the difficulties of doing an analysis of behavior is that no matter how the researcher tries to establish a range of parameters (such as a 0-10 scale) the scale may be interpreted differently by each respondent. One solution is to standardize the responses of each respondent using the mean and standard deviation of the respondents raw ratings (Hair, etal, 1995, pp.434-435). Using thus technique, at least, ensures that the researcher will be able to measure the distance between individual responses and the "mean" response for a given subject, and the scores of all subjects may be compared with minimal bias. The standardized scores of each individual may then be compared to the standardized scores of each of the other respondents.

 

Limitations

Clearly, the list of ethical behaviors does not encompass all possible ethical or unethical behavior, nor was that intended. The participants were not a true random sampling, they were a quasi-random convenience sampling. Since students in the program do represent demographically, the make-up of the business community of Milwaukee and the surrounding area, one may draw some general conclusions with regard to community ethics. However, the primary intent of the research was to determine the degree to which participants were able to make objective assessments of ethics, with regard to themselves and others. For these purposes, the data may have much more general application.

 

Results

Regression analysis is a valuable tool for determining the extent to which a set of variables (such as the first nine ethical situations) can predict another dependent variable (such as overall ethicality) (Neter, Wasserman, and Kutner, 1990,pp. 225-236). Three separate multiple regression analyses were performed to determine the extent to which their decisions about the ethicality of the nine behaviors would predict their perceptions of competitors, associates, and their own level of ethical behavior.

 

The results of the three regression analyses clearly show that the ethical judgments called for in the first nine questions are very good predictors of the perceived level of ethics of competitors and associates (74.155% and 71.421% of variation accounted for), but only average predictors for ones own perceived level of ethics (51.927% of variation accounted for). (see table 1 below).

 

Table 1

Percent of Variation of the Prediction.

 

Multiple R

R Square

Adjusted R

Square

Standard

Error

AOV of

Regression (F

Ratio)

Significance of

F Ratio

COMPET

.86113

.74155

.72778

.38746

53.87634

p < .0000

ASSOC

.84517

.71431

.69910

.36066

46.95118

p < .0000

SELF

.72060

.51927

.49367

.53327

20.28303

p < .0000

 

All of the questions were included in the regression equations for all three analyses. In the competitor analysis, all questions were highly significant contributors to the prediction of ethical level with the lowest significance level being questions 7(t = -2.925, p < .0039)and 6 (t = -3.967, p < .0001) All other questions were significant at the p <.00001 level or better. In the associate analysis, question 7 was not a significant contributor (t = -1.143, p < .2547). In the self analysis, question 7 was not a significant contributor (t =-.743, p < .4584) and question 6 was a marginal contributor (t = -1.964, p < .0512).

 

The Effectiveness of Assuring Anonymity

 

Most survey research is done anonymously to protect the rights of the respondent and to increase the accuracy and honesty of responses. While anonymity may be assured with great care by the researcher, a more pertinent concern for the validity of the research is the degree to which the assurance of anonymity is truly believed by the subject. If it is not believed by the respondent, it is impossible to determine the extent to which this affects the truthfulness of responses. For instance, the gathering of demographic information about respondents may be pertinent and in some cases essential to the research being done, but such information may also identify the subject. For example; age, gender, number of children, marital status, company name, position in a company, etc. may clearly identify whose survey it is. It is reasonable to assume that respondents may also recognize that their anonymity is not assured and that they may be less than candid in their responses. The researcher needs to determine what if any demographic information is essential to his or her study and forego asking for other kinds of information.

 

Researcher driven vs. Respondent driven surveys

 

Those of us who administer surveys must constantly keep in mind that respondents may not want to take the time required to answer all of the questions to which we may want answers (Groves, 1989). Personal experience must make it painfully obvious that the longer the survey, the less and less willing and accurate we tend to be with our response. Not surprisingly, those of us who design surveys are probably less likely to be people who fill out surveys and we perhaps look at them differently than the general population. Participants will almost certainly give more accurate responses to ten question surveys than they are likely to give in one hundred question surveys.

 

It is also true that the order of the questions and the process of answering them is likely to change the nature of the answers. The survey format is in fact a sort of guided thought process in which the researcher, leads the participant through a series of evaluative judgments. The way in which we ask questions and the order in which we ask them necessarily influences those responses. It was for that specific reason that the survey given in this research asked the participant to evaluate a series of ethical issues before asking him or her to evaluate his or her own level of ethics. Presumably, the questions asked would be the most recent and therefore would have a stronger likelihood of being the criteria upon which these evaluations would be based.

 

The first nine questions called for relatively objective answers. That is, how ethical do you consider these behaviors, rather than do you engage in these behaviors. They were not intended to be an exhaustive sample, but rather a representative sample of the kinds of questions which are asked with regard to business ethics. The point of the research being to ascertain how predictive these sample questions would be of ones own ethical behavior vs how predictive they would be of ones perception of the general ethical environment both with regard to associates (those who are perceived as like us) and competitors (those who might be perceived as unlike us). It is interesting to note that the percent of variation accounted for was essentially the same in both of those categories, but considerably different from the evaluation of ones own ethical level. This clearly demonstrates that respondents tend to make such decisions in response to their perception of the external ethical situation rather than by making personal revelations. While there are other interpretations which might be given to such responses, these seem most relevant to this researcher.

 

Virtual Sampling Using a Proximity Sample

 

The concept of random sampling requires that the sample be randomly dispersed throughout the population. In all honesty most of us must admit that our research samples are quasi-random at best, convenience samples in general, and local sub group samplings at worst (such as classes of sophomores attending our institutions in our particular fields of study.

 

The logic of using the participant as observer is that it increases the level of objectivity of the participant. It may also be argued that it increases the `virtual size' of our sample. That is, we are in a sense asking the subject to evaluate the sample of individuals within his or her own proximity. Clearly the strongest influence will still be the individual's perception of him or herself, then of close associates, then of more distant associates. It will gradually disperse itself until it includes ones perception of ones cultural grouping and it will finally generalize to the entire population being evaluated.

 

The disadvantages are, that: a) the subject is not a skilled observer; b) the subject's own belief system will color his or her own perceptions of others; c) the sample will be a biased proximity sample centered on the individual him or herself and on those individuals most closely associated with him or her.

 

This `virtual sample' is, of course, not unlike the concept of a normal distribution of the mean with the exception that the mean will not be of the population but of the individual him or herself and, most probably, of individuals most like him or herself, since those are the individuals with which the individual is most closely associated and about whom the participant is most knowledgeable. In fact, one might reasonably assume that 68% of the opinions held by this group will fall within plus or minus one standard deviation of those of the individual. The individual responses thus constitute a personally observed sample distribution.

 

While there will be varying degrees of accuracy of such a subjective `virtual sample', it may be reasonably assumed that in the distribution of `virtual samples' there will be some observers who are extremely bad at assessing the behavior of others and their virtual samples will constitute bad samples. Some observers, however, will be extremely astute and those will constitute excellent samples. Most `virtual samples' will be just average (approximately 68% of them) and thus will fall into the region within plus or minus one standard deviation of the mean `virtual sample'. `virtual samples' would therefore appear to have the same distribution as actual sample means taken from the population and the standard error of the mean may be assumed to be essentially the same. If we are willing to trust one `actual sample' taken from a population as representative of the population, doesn't it make sense to trust 100 `virtual samples' taken from that same population even though any one individual `virtual sample' may range from bad to excellent? To some extent, whether or not it is acknowledged, all individual survey research is subject to these same restrictions since we have no way of determining whether the information participants give us is accurate except by asking them.

 

Undoubtedly the belief system of the individual who constitutes the `virtual sample' will be projected upon that sample and will strongly color those perceptions, but it must be acknowledged that, those perceptions were formed by immersion in that same group and by absorption of that value system. The advantage is that the individual will be engaging in self-disclosure of his or her perceptions without feeling the negative aspect associated with giving personal revelations about oneself. One is thus put in the empowered position of using his or her own personal telescope to assess his or her own world, rather than being put under a microscope and being observed as a specimen.

 

In addition, the scope of the research is expanded to a population larger than that actually sampled. This generalization from the specific sample to the general population is the basis of all statistical research. Since the statistical assumptions remain the same as for any other research technique using sample populations, no statistical laws are violated. Nevertheless, this study suggests that accuracy of results may be enhanced by making a conceptual shift in the way survey surveys are designed and the way survey participants are viewed. `virtual sampling' merely acknowledges the individual observer's assimilation of the perceived values of those in close proximity to the observer and accommodates this perception to increase the accuracy of the respondent, while removing the stigma associated with self revelation.

 

To the extent that the real sample is truly random, the `virtual sample' will conceptually provide access a larger portion of the entire normal distribution. The accompanying research strongly supports thus contention in that the responses given in the survey predict the ethical level of the `virtual sample' (both associates and competitors) with much greater accuracy than it does the ethical level of the individual.

 

 

 

 

 

 

References

 

 

 

Brookhouse, K., Guion, R.M. and Doherty, M.;1986, `Social Desirability Response Bias as One Source of the Discrepancy Between Subjective Weights and Regression Weights', Organizational Behavior and Human Decision processes 37, pp. 316-328.

 

Groves, R. M.: 1989, Survey Errors and Survey Costs (Wiley, New York).

Hair, J.F., Anderson, R.E., Tatham, R.L., and Black, W.C.: 1995, Multivariate Data Analysis with Readings (Prentice Hall, Englewood Cliffs, N.J.).

 

Henthorne, T.L., Robin, D.P., and Reidenbach, R.E.: 1992, Journal of Business Ethics 11, pp.849-856.

 

Likert, R.: 1932, A Technique for the Measurement ofAttitudes (New York).

Neter, J., Wasserman, W., and Kutner, M.H.: 1990, Applied Linear Statistical Models (Irwin, Homewood, 1L).

 

Phillips, D.L. and Clancy, K.J.: 1972, "Some Effects of `Social desirability' in survey studies", American Journal of Sociology 77, No. 5, pp. 921-940.

Randall, D.M. and Fernandes, M.F.: 1991, `The Social Desirability Response bias in Ethics Research', Journal of Business Ethics 10: pp.805-817.

 

Reidenbach, R.E. Robin, D. P, and Dawson.: 1991, `An Application and Extension of a Multidimensional Ethics Scale to Selected Marketing Practices and Marketing Groups', Journal of the Academy ofMarketing Science 19 (Spring), pp.83-92.

 

Reidenbach, R.E. and Robin, D. P.: 1990, `Toward the development of a Multidimensional scale for Improving evaluations of Business Ethics', Journal of Business Ethics 9: pp. 639-653.

 

Reidenbach, R.E. and Robin, D. P.: 1988, `Some Initial steps Toward Improving the Measurement of ethical Evaluations of Marketing Activities', Journal of Business Ethics 7, pp. 871-879.

 

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