BUSINESS RESEARCH METHODS:

10MBA26

MODULE 1
RESEARCH

Meaning of Research

Research in common mans language 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 the company. Research is required because of the following reasons: To identify and find solutions to the problems To help making decisions To develop new concepts To find alternate strategies

Definition of Research:

Oxford dictionary: Knowing the unknown things C. R. Kothari: Research is a systematic and depth study about any topic or subject Common Mans Language refers to search for knowledge S. N. Murthy : Research is an art of scientific Investigation: It is also a systematic Design, collection, analysis and the reporting the findings and solutions for the marketing problems of a company.

Objectives of Research

Promotes better decision-making Research is the basis for innovation Research identifies the problem areas Research helps in forecasting Research helps in formulation of policies and strategies Research helps in the development of new products, or in modifying existing products and in understanding the competitive environment It helps in the optimal utilization of resources It helps in identifying marketing opportunities and constraints It helps in evaluating marketing plans

Types of Research

Exploratory research Descriptive research Applied research Pure/Fundamental research or Basic research Conceptual research Causal research Historical research Ex-post facto research Action research Evaluation research Library research

Exploratory research: This type of research is carried out at the very beginning when the problem is not very clear or is vague. In exploratory research, all possible reasons which are very obvious are eliminated, thereby directing the research to proceed further with limited options. Descriptive research: Main purpose is to describe the state of view as it exists at present. Simply stated, it is a fact finding investigation. In descriptive research, definite conclusions can be arrived. This type of research tries to describe the characteristics of the respondent in relation to a particular product. Descriptive research deals with demographic characteristics of the consumer.

Applied research: Aims at finding a solution for an immediate problem faced by any business organizations. This research deals with real life situations. Ex: To develop a new market for the product. Pure/ fundamental research: Gathering knowledge for knowledges sake is known as basic research. It is not directly involved with practical problems It does not have any profit-making potential There is no intention to apply this research in practice. Ex: Theory of Relativity

Conceptual research: Generally used by philosophers. It is relate to some abstract, idea or theory. In this type of research, the researcher should collect the data to prove or disapprove his hypothesis. Ex: The various ideologies or isms Causal research Causal research is conducted to determine the cause and effect relationship between the two variables. Ex: effect of advertisements on sales Historical research: Historical study is the study of past records and data in order to understand the future trends and development of the organization or market. There is no direct observation The research has to depend on the conclusions or inferences drawn in the past. Ex: CBI officers study the past records or the history of the criminals in order to arrive at some conclusions.

There are certain shortcomings of historical research Reliability and adequacy information is subjective and open to question Accuracy of measurement of events is doubtful Verifications of records are difficult. Ex-post facto research: Examination of relationship that exists between the independent and dependent variable is studied. This type of research is also called as empirical research In this method, the researcher has no control over an independent variable Ex-post facto literally means from what is done afterwards Ex: In this research, variable A is observed. Thereafter researcher tries to find a causal variable B which caused A. The researcher can only report what has happened and

Action research: This type of research is undertaken by direct action. Action research is directed to solve a problem Ex: Test marketing a product is an example of action research. Evaluation research: This is an example of applied research This research is conducted to find out how well a planned programme is implemented. Evaluation research deals with evaluating the performance or assessment of a project Ex: Success of midday meal programme or Rural employment programme evaluation Library research: This is done to gather secondary data. This includes notes from the past data review of the reports already conducted. More convenient method as both manpower and time are saved.

Criteria/Characteristics of a Good Research

A good research should be Systematic A good research should be Logical A good research should be Empirical A good research is Replicable

Problems Encountered by Researchers

Inadequate interaction between academics and business entities The research institutions work independently Most of the business units lack confidentiality i.e., the material supplied to the researchers by them are likely to be misused by researchers Library management needs to improve i.e., the number of books, journals, reports that carry relevant material should be made available to researchers in adequate numbers. In addition to the above problem, many libraries do not get copies of the latest information and reports and other government publications on time.

Marketing Research
The American Marketing Association defines Marketing Research: Marketing Research is the function that links the consumer, customer and public to the marketer through information information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

According to Bhojanna

MR involves systematic problem analysis model building and fact finding method for the purpose of improved decision-making, with a view to control the marketing of goods and services. From the above definition, it becomes clear that MR is the collection and interpretation of facts that help in marketing management to channelize the product more efficiently into the hands of the consumer. MR works through survey or sampling study.

According to Naresh Malhotra, Marketing Research is the systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing. Systematic required at all stages of MRP. Procedures followed at each stage are methodologically sound, well documented, and planned in advance. Objective MR should be free of any biases and should be conducted impartially. The motto of every researcher should be find it and tell it like it is Identification, collection, analysis, dissemination and use of information identifying the marketing research problem or opportunity and then determine what information is needed to investigate it.

A Classification of MR
Marketing Research

Problem Identification Research Market Potential Research Market Research Image Research Market characteristics Research Sales analysis Research Forecasting Research Business trends Research

Problem Solving Research

Segmentation research Product Research Pricing Research Promotion Research Distribution Research

Areas of MR

Advertising Research Brand equity Research Brand name testing Ad tracking Packaging Research Concept testing Trend analysis Buyer decision process Research Potentiality analysis testing Customer satisfaction Research Demand estimation

Distribution channel studies Internet strategic test Full line marketing research studies Product preference test Positioning research Price elasticity testing Sales forecasting Territory setting analysis Online panel Store analysis Test marketing

Marketing Research Process

Problem definition Development of an approach to the problem Research design formulation Definition of the information needed Secondary analysis Qualitative research Methods of collecting quantitative data Measurement and scaling procedures Questionnaire design Sampling process and sample size Plan of data analysis Fieldwork or data collection Data preparation and analysis Report preparation and presentation

The Need for Market Research/Advantages

Decision-making tool

Facilitates large-scale production

To determine the pattern of consumption

Complex market
Problem solving

Distribution
Sales promotion

Limitations of MR

MR is not an exact science

Complex in nature
Inexperienced research staff

Limitation of time
Subjectivity

Time frame
Decision making

Utilities of MR to the Economy

MR is useful to the economy in the following ways:

Production
Employment Reduce Recession

Avoids crisis

Scientific Approach (method) in Research

Scientific research is one which yields the same results when repeated by different individuals. It consists of the following steps: Observation the researcher wants to observe a set of important factors that is related to his problem Formulates hypothesis the researcher formulates a hypothesis which will explain what he has observed Future prediction the researcher draws a logical conclusion Testing the hypothesis the researcher will arrive at the conclusion by testing the data.

Characteristics of Scientific method

Validity Ability of a measuring instrument to measure what it is supposed to. A questionnaire is administered to determine the attitudes of the respondent towards a movie. As long as the questionnaire serves this purpose, we say that the instrument is valid. Reliability Ability of a measuring instrument to get the reliable information.

Why MR cannot be considered scientific

In MR, the instrument used is a questionnaire. There are five main problems faced by researcher regarding validity and reliability: 1. Different respondents interpret the same question in different manner. So the reply of the respondents will be different. 2. It is difficult to ascertain whether the sample is a representative of the population or not. 3. The same questionnaire administered by different interviewers will yield different results. 4. The measuring instrument, namely the questionnaire may not state clearly what is being measured. 5. Lab experiments are held under controlled conditions, such as temperature, humidity etc. In MR, it is not possible to control external factors surrounding the study.

Distinction between scientific and unscientific method

There are three differences between scientific and scientific methods:

Rationality and objectivity

Accuracy of measurement
Maintaining continuity in investigation

Limitations of applying scientific methods in business research problems

Role of investigators

Inaccuracy of measuring instruments

Influence of measurement Pressures of time frame Testing of hypothesis Complexity of the subject

Organizations of MR
Marketing Research can be conducted by having:

Internal marketing departments in the organization or By taking the help of external agencies

The type of organizations selected for market research depends on how big an organization is and the varied type of products manufactured.

Internal departments

There are two types of internal departments. Departments internal to organization can be run by: One person

1.

2.

A full fledged market research department where several employees are involved

External organizations for conducting MR

1.

Advertising agencies

2.

Trade associations
Manufacturers Retailers and Wholesalers

3.

4.

5.

Governmental agencies
Universities and institutions

6.

Selection of MR agencies

Quality expertise

Promptness
Meeting deadlines Pricing

Infrastructure
Professionalism

Steps for selecting of an agency

Multiple agency Information provision Treat the researcher as a member of your organization Provide necessary feedback to the research agency

Market research organization

Hierarchy according to product

Hierarchy according to geography

Hierarchy according to functions

Hierarchy according to Product

VP marketing

Ad manager

MR manager

Sales manager

MR executive Product As

MR executive Product B

MR executive Product C

MR executive Product D

Hierarchy according to Geography

MR executive North zone

MR executive South zone

MR executive East zone

MR executive West zone

Hierarchy according to functions

MR Manager

Ad Research Executive

Product Research Executive

Sales Research Executive

Channel Research Executive

The MR Industry
The MR industry consists of Research suppliers who provide MR services. Research suppliers can be classified as Internal research supplier MR departments located within a firm External research supplier outside MR companies hired to supply MR data. It can be classified as Full services Limited services Syndicate Field services Standardized Coding and data entry Customized Analytical services Internet Data analysis Branded products & services

Selecting a Research Supplier

A firm that cannot conduct an entire MR project in-house must select an external supplier for one or more phases of the project. Firm should compile a list of prospective suppliers from such sources as trade publications, professional directories and word of mouth. While selecting a supplier, a firm should keep some basic in mind. Reputation of the supplier Ethical standards Quality Experience Flexible Time management Communication Expertise

Importance of Marketing Research (Roles)

MR serve us two major functions 1. It provides information for decision making 2. Develops new knowledge The use of information gathered by the MR reduces the risk involved in decision making. It influences the decision such as pricing of the product, scale of advertising, etc. The information collected directly affects the planning of the product. MR is put to substantial use by firms that produce branded products and are in competition with other brands to know and maintain the popularity of their products among consumers.

Marketing Research V/S Market Research

MR should not be confused with Market research Market research means study of market itself. Size, growth or decline, factors affecting it, and the number of competitors in the market. Market research is much more narrower than MR. It is a single research, MR is an inclusive term which embraces research activities carried on with the management of marketing work MR includes many subsidiaries types of research, such as Market analysis Sales analysis Consumer research Advertising research Packaging research etc.

The Role of MR in Marketing Decision Making

Customer Groups

Customers Employees Shareholders Suppliers

Controllable Marketing variables Product Pricing Promotion Distribution

Uncontrollable Environmental Factors Economy Technology Competitors Laws and regulations Social and cultural factors Political factors

Marketing Research

Assessing information needs

Providing informatio n

Marketing decision making

Marketing managers Target market selection Marketing programs Performance and control

Role of MR in MIS and DSS

MIS

DSS

A formalized set of procedures for generating, analyzing, storing and distributing information to marketing decision makers on an ongoing basis Structured problems Use of reports Rigid structure Information displaying restricted Can improve decision making by clarifying raw

Information systems that enable decision makers to interact directly with both databases and analysis model. Unstructured problems Use of models User-friendly interaction Adaptability Can improve decision making by using what if analysis

Uses of MR
The uses of marketing research is as follows: Research relating to markets

Research relating to products

Research related to promotion

Research related to distribution Research on pricing

ETHICAL ISSUES IN BUSINESS RESEARCH

Ethics is nothing but the accepted codes of conduct. Ethics in business research is very much required and relevant in todays industrial scenario. Ethics are norms or standards of behavior that guide moral choices about the behavior and relationships with others. The goal of ethics in research is to ensure that no one is harmed or suffers adverse consequences from research activities.

The ethical issues involved in business research can be studied from three different angles

Ethics in the treatment of the respondent

Ethics in the treatment of buyers and clients Ethics in the treatment of researchers

Ethics in the treatment of the respondent

An Ethical code of conduct must consider the following things: 1. Information that should not be disclosed and made public i.e., participants name and secrecy must be protected. 2. Data collected from respondents must be correct and should not be manipulated 3. The rights of the respondents must be protected Right to privacy Right to choose Right to safety Right to be informed

Ethics in the treatment of buyers and clients

The method for conducting the research and the results obtained should be accurate The researcher should keep the identity of the client confidential Maintaining confidentiality and secrecy is of utmost importance and it is a part of the ethical code of conduct to be followed by the researcher.

i.

ii.

iii.

Ethics in the treatment of researchers

Selecting the bidders

Limited funds
Non-availability of data Pseudo-pilot studies

Political research

Reference

Marketing research Naresh Malhotra

Business research methods - U Bhojanna