A dropped quotation is a quotation that a writer has just dropped into his or her text without integrating it into a sentence. In a research paper, that’s a big mistake. Instead, you should integrate the quotation into your own sentence. When you are writing a paper, be sure to integrate your quotations and avoid just plugging in quotes without incorporating them into your work. Although they may seem innocuous to you, dropped quotes are quite grating on people accustomed to reading properly composed academic papers. It can be easy, and we will talk about some ways to easily incorporate quotes into an essay, and avoid any dropped quotes.
A dropped quotation can disrupt the flow of thought, create an abrupt change in voice, and/or leave the reader wondering why the quote is included. Instead of creating an unwelcome disruption in their paper’s cohesiveness with a dropped quotation, thoughtful writers should employ strategies for smoothly integrating source material into their own work.

Use a signal phrase at the beginning or end of the quotation:

• Sample signal phrases:
o Noted journalist John Doe proposed that “ . . . ” (14).
o Experts from The Centers for Disease Control advise citizens to “ . . . ” (CDC).
o “. . . ,” suggested researcher Jane Doe (1).

Use an informative sentence to introduce the quotation:

• Sample introductory sentences:
o The results of dietician Sally Smith’s research counter the popular misconception that a vegan diet is nutritionally incomplete:
o An experiment conducted by Dave Brown indicates that texting while driving is more dangerous than previously believed:

Use appropriate signal verbs:
adds      confirms      lists      reports
argues      describes      illustrates      states
asserts      discusses     notes      suggests
claims      emphasizes      observes      writes

Information from: http://writingcommons.org/evidence/quotations/563-avoid-dropped-quotations-

A great YouTube video to help explain: (follow the link)
http://youtu.be/bNftswcFUCs