MODULE 1
Business Research
Unit 1: (8 hours)
Business Research – Meaning, types, process of
research- management problem, defining the
research problem, formulating the research
Hypothesis, developing the research proposals,
research design formulation, sampling design,
planning and collecting the data for research,
data analysis and interpretation. Research
Application in business decisions, Features of
good research study.
WHAT IS RESEARCH?
WHAT IS RESEARCH?
A systematic search for an answer to a
question or a solution to a problem is called
research.
Arbitrary method
Scientific method
Arbitrary method : seeking answers to the question, is
based on imagination, opinion, blind belief or
impressions. Ex: a big snake swallows the sun or
moon causing solar or lunar eclipse. It is subjective,
the finding will vary from person to person
depending on his impression or imagination. It is
vague and inaccurate.
Scientific method: This is a systematic rational
approach to seeking facts. It is objective, precise and
arrives at conclusions on the basis of verifiable
evidences.
Therefore, search for facts should be made by
scientific method rather than by arbitrary method,
then only we may get verifiable and accurate facts.
“ Research is a systematic and logical study of an
issue or problem or phenomenon through
scientific method.”
- Black and Champion
“The process of systematically obtaining accurate
answers to significant and pertinent questions by
the use of the scientific method of gathering and
interpreting information”
- Clover and Balsley
BUSINESS RESEARCH
“Research is an art of scientific investigation. It
is also a systematic design, collection, analysis
and reporting the findings and solutions for
problems of a company.”
In common man’s language Research refers to “search for knowledge”
“Research is an art of scientific investigation. It is also a systematic
design, collection, analysis and reporting the findings and solutions
for the marketing problems of a company.”
Research is required because of the following reasons:
Research application in business decisions
1. To identify and find solutions to the problems
- to understand the problem in depth. For example, “why is that, demand
for a product falling?, “why business fluctuation takes place once in three
years”? By identifying the problem precisely, it is easy to collect the
relevant data to solve the problem.
2 To help making decisions
ex: “should we maintain the same advertising budget as last year”? A
research will provide an answer for this.
3 To develop new concepts
ex: CRM, MLM etc.
4 To find alternate strategies
Should we follow pull strategy or push strategy to promote the product?
The types of Research
There are different types of research.
1. Exploratory Research
2. Descriptive Research
3. Applied Research:
4. Basic research or pure/fundamental research:
5. Conceptual research:
philosophers
THE TYPES OF RESEARCH
6. Causal research
7. Historical research
8. Ex-post facto research
9. Action research
10. Evaluation research
11. Library research
EXPLORATORY RESEARCH
Carried out in an initial stage
Problem unknown/not clear
Ex:
Sales decline in a company
DESCRIPTIVE RESEARCH
Describe the state of view at present
Fact finding investigation
Definite conclusion arrived
Example:
Degree of viewing TV channels
APPLIED RESEARCH
Finding a solution for immediate problem
Market research
Deals with life situation
Example:
Use of fiber glass body for cars instead of metal
PURE/BASIC/FUNDAMENTAL RESEARCH
Gathering knowledge
No commercial potential
Example
Mathematics
Human behavior
CONCEPTUAL RESEARCH
Abstract ideas or theory
used by philosophers
Develop new concept or reinterpret
CAUSAL RESEARCH
Investigation of cause and effect relationship
Example:
Effect of Advertisement on sales.
HISTORICAL RESEARCH
Past data-future trends
Depend on the conclusion drawn in the past
Example:
Stock Market Movement
EX-POST FACTO RESEARCH
quasi-experimental study
How independent variable affect the dependent
variable
investigation starts after the fact has occurred.
Example:
how weight influences self-esteem levels in adults.
ACTION RESEARCH
Undertaken by direct action.
solve a particular problem and to produce
guidelines for effective practices.
Example:
Sample distribution
EVALUATION RESEARCH
Evaluative purposes
Example:
success of Midday Meal programme
LIBRARY RESEARCH
Gather secondary data
For example
write a paper, create a presentation, or complete
a project
STEP-1
DEFINITION
OF THE
RESEARCH PROBLEM
RESEARCH PROBLEM
What is a research problem?
The term ‘problem’ means a question or issue to be
examined.
Example?..
The first step in the research process – definition
of the problem involves two activities:
Identification / Selection of the Problem
Formulation of the Problem
HOW DO WE KNOW WE HAVE A
RESEARCH PROBLEM?
1. Customer complaints
2. Conversation with company employees
3. Observation of inappropriate conditions in the
firm
4. Deviation from the business plan
5. Success of the firm’s competitor’s
6. Relevant reading of published material (trends,
regulations)
7. Company records and reports.
IDENTIFICATION / SELECTION OF THE
RESEARCH PROBLEM
This step involves identification of a few
problems and selection of one out of them, after
evaluating the alternatives against certain selection
criteria.
CRITERIA OF SELECTION
Internal / Personal criteria –
Researcher’s Interest,
Researcher’s Competence,
Researcher’s own Resource: finance and time.
External Criteria or Factors –
Researchability of the problem,
Importance and Urgency,
Novelty of the Problem,
Feasibility, Facilities, Usefulness and Social
Relevance.
FORMULATION OF THE RESEARCH
PROBLEM
Formulation is the process of refining the research
ideas into research questions and objectives.
Translating and transforming the selected research
problem/topic/idea
Scientifically researchable question.
Problem definition: clear and precise
There are two ways of stating a problem:
1) Posting question / questions
2) Making declarative statement / statements
PROCESS INVOLVED IN DEFINING THE
PROBLEM
• STATEMENT OF THE PROBLEM IN A GENERAL
WAY.
• UNDERSTANDING THE NATURE Of PROBLEM
• SURVEYING THE AVAILABLE LITERATURE
• DEVELOPING IDEAS THROUGH DISCUSSIONS
• REPHRASING THE RESEARCH PROBLEM
•
Defining Problem, Results in
Clear Cut Research Objectives..
Symptom Detection
Analysis of
the Situation
Problem Definition
Statement of
Research Objectives
STEP-2
REVIEW THE CONCEPTS AND THEORIES
•Theoretical and conceptual frameworks.
REVIEWING THE PREVIOUS RESEARCH
FINDINGS (LITERATURE)
Critically reading, evaluating and
organising existing literature
ESTABLISHMENT OF RESEARCH OBJECTIVES
Research Objectives are the specific components of
the research problem, that you’ll be working to
answer or complete, in order to answer the overall
research problem.
- Churchill, 2001
ESTABLISHMENT OF RESEARCH OBJECTIVES
Clear and achievable,
Directly assist in answering the research problem.
The objectives may be specified in the form of
either statements or questions.
Generally, they are written as statements, using the
word “to”. (For example, ‘to discover …’, ‘to
determine …’, ‘to establish …’, etc. )
DISTINCTION BETWEEN MANAGEMENT AND RESEARCH PROBLEM
Management Problem Research Problem
1. To select a media for 1. We should conduct an
product advertising. investigation to determine
suitable media. Evaluate
the impact of the media in
terms of reach.
HYPOTHESIS
A hypothesis is an un proven statement
Tentative statement about relationship between two or
more variables.
Answer to the research question.
Research questions are interrogative, hypotheses are
declarative and can be tested empirically.
Not able to formulate hypothesis in all situations
EXAMPLE
Hypothesis 1
Ho: Necessity of advertisement enhance the demand of the Fast Moving Consumer
Goods (FMCGs)
Hi: Necessity of advertisement enhance the demand of the Fast Moving Consumer
Goods (FMCGs)
RESEARCH DESIGN
The method of achieving the stated research
objective in a possible manner.
The specification of methods and procedure for
acquiring the information needed.
Overall pattern or framework
The time available for research; and
The cost factor relating to research, i.e., the
finance available for the purpose
RESEARCH DESIGN
No of research designs are available.
Example:
Exploratory
Conclusive
Design of sampling plan:
(cost and time, reliability of information ).
Types: Probability and nonprobability sampling
methods
Design of experiment: Different response variables
Design of questionnaire
STEP-5
COLLECTING DATA
Primary Data Secondary
When data is not Data
available, and When data exists
must be obtained and is available
through some through a variety
form of data of sources (i.e.
collection. internet,
publications,
government
records, etc.)
PROBLEMS WITH OBTAINING RELEVANT DATA
Secondary Data defined
Data collected by another agency or
researcher
Problems with obtaining relevant and accurate
Secondary data
1. Availability of Data
2. Reliability of Data
3. Comparability of Data
4. Validating Secondary Data
VALIDATING SECONDARY DATA
• Who collected the data ? Would there be any
reason for purposely misrepresenting the
facts ?
• For what purpose were the data collected ?
• How were the data collected ? (Methodology)
• Are the data internally consistent and logical in
light of known data sources or market factors ?
PRIMARY & SECONDARY DATA
Secondary Primary
Readily available, used Generated first-hand,
for other purposes tailor made research
Availability Ability to communicate
Relevancy Issues
Willingness
Reliability Sampling Plan
Comparability Language/Comprehension
METHODS FOR DEVELOPING PRIMARY DATA
Focus Groups
Panels
Experiments Data
Qualitative?
Quantitative? Surveys
Observation
Interviews
STEP-6
ANALYSIS DATA
1. The data collected in stage 5 needs to be analysed to
provide answers to your research question.
2. discussion of the results.
INTREPRET AND REPORT STEP-7
•Communicating the research results.
•Final stage of Research .
– Consist of interpreting the research results,
– Describing the implications and drawing the appropriate conclusions for
managerial decisions
•Conclusions should relate back to the focused research
question.
•Recommendations for further research.
DEVELOPING THE RESEARCH PROPOSAL
A research proposal is a formal documents
- Research objective,
-Design of achieving the objective
- Outcome of the study
DEVELOPING THE RESEARCH PROPOSAL
Content:
Executive summary
Background of the problem
Problem Statement and Research Objective
Hypothesis and review of literature
Research Design
Scheduling the Research
Results and Outcome of the study
RESEARCH APPLICATION IN BUSINESS
STUDY
Research Applications in Finance
Research Applications in Marketing
Research Applications in Human Resource
Management
Research Applications in Production and
Operation Management
Research Applications in Cross Functional Areas
FEATURES OF GOOD RESEARCH STUDY
A clearly stated research purpose/ objective
A sequential plan of execution
A logical and explicitly stated justification for the
selected methods
An unbiased and neutral method of conduct and
reporting
Complete transparency and ethical conduction of
the research process
Provision for being reliable & replicable
CRITERIA OF A GOOD RESEARCH PROBLEM
A GOOD RESEARCH SHOULD BE SYSTEMATIC
• This means that research should be structured.
• A good research will satisfy the steps to be
taken in an orderly sequence according to a set
of defined rules
• i.e., researcher uses scientific methods and
therefore is systematic.
A GOOD RESEARCH SHOULD BE LOGICAL
• There should be logical reasoning in any research.
• This logical process used could be induction or deduction.
• Induction is a process of reasoning from the part to the whole.
To induce means to draw conclusion from one or more facts or
pieces of evidence.
example of Induction: An advertising company gathers
information about market requirements from retailers/users
from a small test market. Based upon the findings, say
‘price’ generalization is made regarding "What is the
acceptable market price" or "Is the customer price
sensitive"?
• Deduction is a process of reasoning some premise and then
reaching the conclusion which follows from that premise.
In deduction, the conclusion drawn must necessarily follow
the reason stated.
Example: "All products manufactured by Reebok Company are
good. This leather wallet is a product of Reebok, so it must be good".
A GOOD RESEARCH SHOULD BE SYSTEMATIC
A Good Research should be Empirical
Empirical means the factual investigation is
possible.
Its validity can be checked through reliable
sources and evidences.
Research should be such that it can be validated,
i.e., it should be possible to describe, interpret
and explain the phenomenon.
A GOOD RESEARCH IS REPLICABLE
It means the research conducted can be repeated
by any number of times.
A researcher can verify the results by repeating
the study and thereby delivering a sound
decision-making framework.
For example, if two research organizations
undertake the same study, the results should be
similar and not different.
If the results are similar, then the research is
will be replicable.
A GOOD RESEARCH IS
Purpose clearly defined
Research process detailed
Research design thoroughly panned
High ethical standards applied
Limitations frankly revealed
Adequate analysis of decision maker’s needs
Findings presented unambiguously
Conclusions justified
Researcher’s experience reflected
Thank you
