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