Research Methodology

Defining Business Research

Business research method is a systematic and scientific procedure of data collection, compilation, analysis, interpretation, and implication pertaining to any business problem. Business research is defined as the systematic and objective process of gathering, recording, and analyzing data for aid in making business decisions (Zikmund, 2007). Cooper and Schindler (2009) define business research as a systematic enquiry that provides information to guide managerial decisions.

Business Research Methods: A Decision Making Tool in the Hands of Management

Decision making is always a crucial part of any organizational functioning. In the field of business research, this valuable information is obtained using the following interrelated steps: 1. Problem or opportunity identification 2. Diagnosing the problem or opportunity 3. Executing business research to explore the solutions 4. Implement presented solutions 5. Evaluate the effectiveness of decision making

Figure 2.1: Business research process design

Business Research Process Design

A research design is the detailed blueprint used to guide a research study towards its objective. A good research is conducted using 10 steps:
1. 2. Problem or opportunity identification Decision maker and business researcher meeting to discuss the problem and opportunity dimensions 3. Defining the management problem and subsequently the research problem 4. Formal research proposal and introducing the dimensions of the problem 5. Approaches to research 6. Field work and data collection 7. Data preparation and data entry 8. Performing data analysis 9. Interpretation of result and presentation of findings 10. Management decision and its implementation.

Types of Research
All researches can be broadly classified into three groups: exploratory research, descriptive research, and causal research. These three methods differ in terms of different aspects of conducting the research.

Figure 2.3: Classification of different types of research

Exploratory Research
As the name indicates, exploratory research is mainly used to explore the insight of the general research problem. This is used for the following purposes:
A. B. C. D. Obtaining Background Information Research Problem Formulation or Defining it More Precisely Identifying and Defining the Key Research Variables Developing Hypotheses

Methods of Conducting Exploratory Research

Descriptive Research
As evident from the name, descriptive research is conducted to describe the business or market characteristics. The descriptive research mainly answers who, what, when, where, and how kind of questions. It attempts to address who should be surveyed, what, at what time (pre- and post-type of study), from where (household, shopping mall, market, and so on), and how this information should be obtained (method of data collection). It can be further classified into cross-sectional study and longitudinal study.

Cross-Sectional Study
Cross sectional research design involves the collection of information from a sample of a population at only one point of time. In this study, various segments of the population are sampled so that the relationship among the variables may be investigated by cross tabulation (Zikmund, 2007). Sample surveys are cross-sectional studies in which the samples happen to be a representative of the population. The cross-sectional study generally involves large samples from the population; hence, they are sometimes referred as sample surveys.

Longitudinal Study
Longitudinal study involves survey of the same population over a period of time. There is a well-defined difference between a cross-sectional study and a longitudinal study. In a longitudinal study, the sample remains the same over a period of time. In a cross-sectional design, a representative sample taken from the population is studied at only one point of time.

Causal Research
Causal research is conducted to identify the cause-and-effect relationship between two or more business (or decision) variables. Many business decisions are based on the causal relationship between the variables of interest. As discussed, the descriptive research is able to answer who, what, when, where, and how kind of questions but not the why part of the question. The causal research is designed to address the why part of the question.

Table 2.2: A relative comparison of exploratory research, descriptive research, and conclusive research

Scales of Measurement
Nominal scale Ordinal scale Interval scale Ratio scale

Scales of Measurement
Nominal Scale: When data are labels or names used to identify the attribute of an element, the nominal scale is used. Ordinal Scale: In addition to nominal level data capacities, ordinal scale can be used to rank or order objects.

Scales of Measurement
Interval Scale: In interval level measurement, the difference between two consecutive numbers is meaningful.

Ratio Scale: Ratio level measurements possess all the properties

of interval data with meaningful ratio of two values. In terms of measurement capacity, nominal, ordinal, interval, and ratio level data are placed in ascending order.

Figure 3.1: A comparison between the four levels of data measurement in terms of usage potential

Measurement Scales
Comparative scales are based on the direct comparison of stimulus and generally generate some ranking or ordinal data. This is the reason why these scales are sometimes referred as non-metric scales. Non-comparative scaling techniques generally involve the use of a rating sale, and the resulting data are interval or ratio in nature. This is the reason why these scales are referred as monadic scales or metric scales by some business researchers. This section is an attempt to discuss the various types of scales in the light of items included in the scales. These are single-item scales, multi-item scales, and continuous rating scales.

Figure 3.3: The classification of measurement scales

Limitations of Experimentation
Time Cost Secrecy Implementation problems

Sampling
A researcher generally takes a small portion of the population for
study, which is referred to as sample. The process of selecting a sample from the population is called sampling.

Why Is Sampling Essential?

Sampling saves time. Sampling saves money. When the research process is destructive in nature, sampling minimizes the destruction. Sampling broadens the scope of the study in light of the scarcity of resources. It has been noticed that sampling provides more accurate results, as compared to census because in sampling, nonsampling errors can be controlled more easily. In most cases complete census is not possible and, hence, sampling is the only option left.

Figure 5.1: Steps in the sampling design process

The Sampling Design Process

Step 1: Target population must be defined
Target population is the collection of the objects which possess the information required by the researcher and about which an inference is to be made. A researcher takes a sample from a population list, directory, map, city directory, or any other source used to represent the population. This list possesses the information about the subjects and is called the sampling frame. Sampling is carried out from the sampling frame and not from the target population.

Step 2: Sampling frame must be determined

The Sampling Design Process (Contd.)

Step 3: Appropriate sampling technique must be selected
In sampling with replacement, an element is selected from the frame, required information is obtained, and then the element is placed back in the frame. This way, there is a possibility of the element being selected again in the sample. As compared to this, in sampling without replacement, an element is selected from the frame and not replaced in the frame. This way, the possibility of further inclusion of the element in the sample is eliminated. Sample size refers to the number of elements to be included in the study.

Step 4: Sample size must be determined

Step 5: Sampling process must be executed

Random Versus Non-random Sampling

In random sampling, each unit of the population has the same probability (chance) of being selected as part of the sample. In non-random sampling, members of the sample are not selected by chance. Some other factors like familiarity of the researcher with the subject, convenience, etc. are the basis of selection

Figure 5.2: Random and non-random sampling methods

Classification of Secondary Data Sources

Secondary data sources can be broadly classified into internal and external secondary data sources. The internal secondary data are generated within the organization and the external secondary data are obtained from the sources available outside the organization. The internal secondary data are the internal records of the organization. The external secondary data can be further classified into the following four groups: books, periodicals, and other published material; reports and publication from government sources; computerized commercial and other online data sources; and media resources ( Figure 6.1 ).

Figure 6.1: Classification of secondary data sources

Roadmap to Use Secondary Data

Step 1: Identifying the Need of Secondary Data for Research

As a first step, a researcher must identify the need of using the secondary data for the research. These are generally used to find the already available facts about a phenomenon. The secondary data sources help in developing a theoretical model, which ultimately should be tested statistically. To develop a model, a researcher has to specify the relationship between two or more variables and the secondary data support in specifying this relationship. More sophisticated forecasting techniques use the secondary data to forecast some research variables such as sales, profit, income, and so on. After identifying the need of the secondary data, the researcher has to decide whether an internal or external secondary data source is to be used.

Step 2: Utility of Internal Secondary Data Sources for the Research Problem
As a second step, a researcher has to examine the utility of in-house secondary data in light of
Objective Relevancy Accuracy Currency Authenticity Dependability action ability

Step 3: Utility of External Secondary Data Sources for the Research Problem
As shown in Figure 6.5, the external secondary data should also be tested for all the parameters as it is done for the internal secondary data. In addition, the authenticity of the external secondary data must also be tested, which was the matter of concern for the inhouse generated data. To address the issue of authenticity of the data, a researcher has to determine who collected the data. Some research organizations, magazines, books, periodicals, journals, and so on have got high reputation and credibility in the society or concerned field. Government data sources are also authentic.

Step 4: Use External Secondary Data for the Research Problem

After qualifying the first three stages, a researcher finds himself or herself in a comfortable stage to use the data, as he or she is sure that the data are useful for the research problem and there is no harm in using it as it has already been tested for all the discussed parameters. These guidelines are followed only to use the secondary data sources for a research purpose. The final decision is a matter of the researchers discretion. In most of the cases, it is noted that the researchers commonly use it to explore the problem and develop insights in to it.

A Classification of Survey Methods

Hypothesis Testing Procedure

Figure 10.1: Seven steps of hypothesis testing

Accurate information, sound logic, and the facts arAccurate information, sound logic, and the facts are necessary, of course, but truly effective leaders in any fieldincluding technical onesknow how to tell the story of their particular research endeavour Robert McKee author Story: Substance, Structure, Style and the Principles of Screenwriting

Written Presentation and the Research Process

Components: Short Report Memo or LetterStyle

Introduction
Problem statement Research objectives Background

Conclusions
Summary and conclusions Recommendations

Report Modules

Prefatory Information Introduction Methodology Findings

Conclusions & Recommendations

Appendices

Bibliography

Adjusting Pace
Use ample white space

Use headings
Use visual aids Use italics and underlining Choose words carefully Repeat and summarize Use service words strategically

Oral presentations and research process

Model for presentation planning

Types of learners

Arrangements
Meeting Room

Seating

Lighting

Facilities
Temperature Electrical Power

Lectern