Business Research Methods- Unit I

 Research
Research is a scientific & systematic search for
pertinent information on a specific topic.

Research is an organized , systematic, data based,

critical, objective inquiry into a specific problem
undertaken with a purpose of finding answer or
solution to it.

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Business Research
Business research is defined as a systematic inquiry
that provides information to guide business decisions.

Research comprises of :-
* defining & redefining problems
* Collecting , organising & evaluating
data
* Making deductions & reaching conclusions to find
whether they fit the formulating hypothesis.

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Scope of Business Research

Business research is used to solve problems in

 Marketing
 Finance
 HR
 Manufacturing

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Major Forms of Business Research
 Operations Research
 Motivational Research
 Market Research

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Operations Research
 OR involves use of mathematical , logical & analytical
methods to find optimum solutions to business
problems.
 OR is used for forecasting demand, optimizing
production & finding the best investment options.

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Motivational Research
 MR involves analyzing the reasons and motives
behind people’s behaviour.
 MR is used to understand consumer behaviour,
employee behaviour.

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Market Research
 MR aims at understanding and examining the
marketplace in which the company operates.
 Helps the organization to devise effective bsuiness
policies & marketing strategies.

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Types of Research

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 Types of research

Application objective Inquiry mode

Pure Applied Quantitative Qualitative

Descriptive Exploratory

Correlational Explanatory

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Fundamental /basic /Pure /Theoretical research
 Fundamental or Basic Research refers to a focused ,
systematic study or investigation undertaken to
discover new knowledge or interpretations &
establish facts or principles in a particular field.
 It is mainly concerned with generalizations and with
the formulation of a theory .
 It is mainly concerned with gaining knowledge rather
than solving a practical problem .
Eg :
 Research concerning some natural phenomenon or
relating to pure maths
 Understanding the consumer buying process
 Understanding the consumer learning process

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Applied research

 AR refers to investigation undertaken to discover the

applications & use of theories, knowledge & principles in
actual work or in solving problems.
 This aims at finding a solution for a immediate problem facing
a society or an industrial or business organization.
 It has a practical problem solving emphasis .
 It gives answers to specific questions related to action ,
performance or policy needs
Eg :
 Research aimed at certain conclusions facing a concrete or
business problem
 Evaluating the impact of a training program on employee
performance
 Examining consumer response to direct marketing programs.
.

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Descriptive or Expost facto research
 Descriptive research includes survey & fact finding
enquiries of different kinds
 State of affairs as it exists
 It attempts to describe systematically a situation ,
problem , phenomenon, service or program
 Fact finding method
E.g..
 Frequency of shopping, Preferences of people.
 Level of proverty in a particular district.
 Flood in Bihar

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Correlational research

 It is to discover or establish the existence of

relationship/association/interdependence between two
or more aspects of a situation.
Eg : What is the impact of an advertising campaign on the
sale of a product?
 Examine whether there is a relationship between two or
more aspects of a situation or phenomenon.

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Explanatory research
 Attempts to clarify why & how there is a relationship
between two aspects of a situation.
Eg :
 Why stressful living results in heart attack?
 How home environment affects children?

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Exploratory research
 This is when the study is undertaken with the
objective either to explore an area where little
information is known or to investigate the possibilities
of undertaking a particular research study .
 ER aims at understanding the topic at research

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Quantitative Research
 It is structured approach
 Everything that forms the research process –
objectives , design, sample, questions is
predetermined.
 More appropriate to determine the extent of a
problem ,issue
 Measurement of particular phenomenon.
Eg: Finding out Relationship between income &
expenditure.

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Qualitative Research
 Allows flexibility in all the aspects of the research
process
 To explore the nature of the problem
 Concerned with subjective assignment of attitudes,
opinions, behaviour
Eg: Attitude surveys
Examine the performance of course material ,scheme or
program

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Other Types
 Conceptual Research
* Related to some abstract idea or theory
* Researcher develops a concept
* Relies on literature
 Empirical Research
* Relies on experience or observation alone
* Capable of being verified by observation or
experiment
* Examine a particular theory or law fits/reflects
the reality
Eg: As income increases consumption also increases

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Characteristics of Good Research
 Prediction of future occurance
 Direction towards solution
 Accuracy in observation
 Basis of research is experience
 It is a scientific program
 Quest for answers
 Patient activity
 Careful critical enquiry
 Need expertise
 Objective & logical

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Characteristics of a Good Research
 Purpose clearly defined
 Research process detailed
 Research design thoroughly planned
 Highly ethical standard applied
 Limitation frankly revealed
 Findings presented unambiguously
 Conclusions justified

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Factors affecting Business Research
 Time Constraint
Lack of time prompts a company to take decisions
without making any research study.
 Availability of resources
Sufficient financial & human resources are needed
to conduct BR
 Nature of Information sought
If information that a company needs can be
obtained from internal records or from prior studies
then conducting BR is a waste of time & effort
 Benefits Vs Cost
Cost – benefit analysis to be done before
conducting the BR

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Problems encountered by Researchers in India

 Lack of scientific training in the methodology of

research
 Insufficient interaction between university research
departments and organizations
 Fear of misuse of materials
 No code of conduct for researchers
 Library management problems
 Difficulty in timely availability of published data

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Business Research Process

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 Business research process

1. Identify & define Research problem/opportunity

 A research problem in general refers to some difficulty
which a researcher experiences in the context of either a
theoretical or practical situation & wants a solution for
the same .
 Manager or researcher should identify the problem
accurately and at the earliest.
 Problem identification precedes problem definition
 Problem should be defined in a precise manner.
 A well defined problem gives the researcher a proper
direction for carrying out investigation.

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 How to select the problem?

 Subject which is overdone must not be selected.

 Controversial subjects should not be taken .
 Too narrow or too vogue problems should not be
chosen.
 Ingredients required for the study should be within the
reach of a researcher.
 The importance of the subject , time & efficiency of the
researcher is also an essential requisite factor.
 Selection of problem must be preceded by a preliminary
study .

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Defining a research problem

 Statement of the problem in a general way .

 Understanding the nature of the problem.
 Surveying the available literature.
 Developing the ideas through discussions.
 Rephrasing the research problem.

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Business research process

2. Objectives of Research
 Formulation of objectives is more important because
it determines
* data which are to be collected
* characteristics of data which are relevant
* relations which are to be explored
* the choice of techniques to be used
* the form of final report
 The objective of the research should be stated in a
formal research statement.
 Objectives act as a guidelines for various steps in
research process.

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 Types of objectives

1. Quantitative : It aims to optimize certain measures of

performance .
Eg : A study on Advertising budget
2. Qualitative : It aims to test the significance of
hypotheses of the study .

Research Questions
What is the purpose of the study?
Where does the study take place?
What is the present state of research issue?
How is the purpose achieved?
Why that particular method?
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Business research process

3. Extensive literature survey

Review the concept
What is the meaning ?
What is the definition of the particular concept ?
Review earlier findings
What has already been researched in that area. ?

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Business research process

4. Formulate Hypotheses
 Hypotheses is a tentative statement.
 They are intelligent & educated guess which can be put to
test to determine its validity .
 It is a tentative supposition about the outcomes of a
research.
 Researcher should avoid including any hypotheses that
has already been validated by other similar studies.
Eg : Age has no reference over achieving sales target of a
sales person.

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Business research process
5. Preparing research Design
 A RD is the actual framework of a research that
provides specific details regarding the process to be
followed in conducting the research.
 It is designed based on the objectives formulated.
 RD includes all details regarding research .
 It is a blue print of research.
 It is a crucial step.
 May be experimental /non experimental.
 An outline of what a researcher would do.

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Business Research Process
6.Selecting the Research Method
Secondary Data Studies
Analysis of already existing data related to research topic.
Surveys
Survey is used to gather information from a sample of
respondents by employing a questionnaire.
Experiments
Experiments can be conducted to study the cause – and-
effect relationships.
Observations
Respondents are merely observed wihtout any interruption
by the observers.

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Business Research Process
7.Selecting the Sampling Procedure
 All the items in any field of inquiry constitute a
universe or population.
 Sampling is a process that uses a small number of
items or a small portion of a population to draw
conclusions regarding the whole population.
 Sample is a subset of a larger set called population.
 Sample should represent the characteristics of the
whole population.
 Sample size is more important, the bigger the sample
size the greater will be its precision.

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Selecting the sampling procedure

 Sample can be selected in two ways

 Probability sampling
Each element has a known probability of being
included in the sample.
 Simple random
 Systematic
 Stratified Random
 Multistage Cluster
 Non-probability sampling
Samples do not allow the researcher to determine
the probability.
 Quota Sampling
 Convenience Sampling
 Judgment Sampling
 Snowball sampling
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Business Research Process

8.Data Collection
 Data are Raw facts
 The researcher collects the data from the units in
the sample.
 Primary Data
Collected through experiment or survey
 Secondary data
Data which have already been collected.
 Methods of Data collection
 Observation Questionnaire
 Personal interview Schedules
 Telephonic interview
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Business Research Process

9.Evaluating the Data

 Analyze the data
 Use mathematical & statistical tools to
evaluate the data
 Interpretation of the data using analytical
techniques

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Business Research Process

10.Preparing & Presenting the Research Report

 Oral report
 Written report
Written Report
 Objectives of the Research
 A summary of the research design adopted
 A summary of major findings
 Recommendations
 Limitations
 Conclusion

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Research Design

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Research Design

 Research Design is the plan & structure of investigation

formulated in order to obtain answers to research
questions.

 Design is the plan for selecting the sources & types of

information used to answer the research questions.

 It is a blue print that outlines each procedure from

hypotheses to analysis of data .

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Need for Research Design

 Smooth flow of various research processes.

 RD is highly essential for planning research activities.

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Characteristics of Good Research Design

An ideal design should take into account important

factors like:
 Identify the exact research problem to be studied.
 The objective of the research .
 The Process of obtaining information.
 The availability of adequate and skilled manpower.
 The availability of adequate financial resources for
carrying out research .

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Research Design Concepts
 Variable
A variable is a concept that can take on different
quantitative values like height,weight,age & so on.
o Quantitative Values
 Continuous variable
 Non-continuous variable
o Continuous variables
They can take on any values including
decimal.Eg: distance,age,weight
o Non-Continuous Variables
They cannot be measured in decimals
Eg: Number of children

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 Dependent variable
A variable dependent on the result of some other variable .
Eg Height & Weight are dependent on age.

 Independent Variable
A variable that is not dependent on any other variable
Eg: Age is not dependent on height & weight.
 Extraneous Variable
Independent variable that are not directly linked with the study
but may influence the dependent variable.
Eg: A study on Relationship between children’s academic excellence &
self concept.
Intelligence may also affect academic excellence. Intelligence is
an extraneous variable.
 Any effect on dependent variable from the extraneous variable
result in Experimental error

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 Control
Control is devised to minimize the effects of extraneous variables.

 Confounded Relationship
When a dependent variable is affected by the influence of an
extraneous variable then the relationship between the dependent and
independent variables is confused or confounded by an extraneous
variable.
 Research Hypotheses
A Research hypotheses is one that links an independent variable to a
dependent variable
It should generally contain one dependent & one independent
variable

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 Hypothesis testing research
When the basic reason is to test a hypothesis , it is termed as hypothesis
testing research.
 Experimental Hypothesis testing research
An independent variable is manipulated during research.
 Non Experimental Hypothesis testing research
Non-manipulation of independent variable in research.
Eg To Study whether the daily intake of food by students influences their skills
in sports
If the researcher selects random sample of 50 then it is non-experimental
hypothesis testing – the independent variable sporting skills is not
manipulated
If he selects a sample of 50 & divides them into A & B , where B is provided
with a coach & A is control group without external manipulations it is
Experimental hypothesis testing .

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 Control Group
In hypothesis testing conditions the group is studied under usual conditions
 Experimental group
Group Studied under special conditions.
 Treatment
Refers to conditions to which experimental and control groups are subjected to
 Experiment
The process involving the validity of hypothesis statement of research
Eg: To study the impact of Sports trainer on the performance of cricket team
 Absolute Experiment
Impact of the trainer on the team’s performance
 Comparative Experiment
Impact of one sports trainer on the teams performance & another sports trainer on
teams performance
 Experimental units
Prespecified plots or blocks where various treatments are used

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Classification of Research Designs
 Exploratory Studies
 ER is carried out to make problem suited to more
precise investigation or framework a working hypothesis
from an operational perspective.
 ER help in understanding and assessing the critical
issues of the problems.
 Useful when researcher lack a clear idea of the
problems they will meet during the study.
 Area of investigation may be so new or vague.
Reasons for conducting ER
To analyze a problem situation
To evaluate alternatives
To discover new ideas

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 Approaches to Exploratory Studies

 In-depth interview
 Participant observation
 Films, photographs, video tapes
 Projective techniques
 Psychological testing
 Case studies
 Elite interviewing
 Document analysis

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 Exploratory Techniques

1. Secondary Data Analysis

Data available as a result of research carried out by others.
o Sources of Secondary Data
Research reports of previous studies
Published documents – journals, periodicals, guides
o Importance of secondary data
Provides an excellent background
It can be a rich source of hypotheses

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 Exploratory Techniques

2. Experience Surveys

They are conducted to gain additional knowledge on a

particular subject area from experts in the field.
Conducted by interviewing persons
o Importance of Experience Survey
It gives an ides of
What is being done?
What has been tried in the past?
How have things changed?
What problem areas and barriers can be seen?

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 Exploratory Techniques

3. Focus Groups
 It is a group interview tool
 Main object is often new product
 Data from focus group may be used for enriching all levels
of research questions and hypothesis
 A focus group is a panel of people led by trained moderator
who meet for 90 minutes to 2 hours.
 The moderator guides the group in exchange of ideas,
feelings, experiences on a special topics
 The panel consists of 6 to 10 respondents
 The facilitator introduces the topic & encourages the group
to discuss it among themselves.

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 Exploratory Techniques

o Types of Focus Groups

 Telephone Focus group

When target group members are dispersed geographically
When the issues are so sensitive
When the researcher wants nationwide representation.
 Online Focus Group
Emerging Technique
Emails, websites, Chat rooms
Posting question to a newsgroup
 Video Conferencing Focus group
Face-to-face
Saves travel time

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 Exploratory Techniques

4. Two stage Design

Exploration is conducted in two stages

o First Stage
Clearly defining the research problems
o Second stage
Developing the research design
Importance
Used when the problem is vaguely defined and the
researcher is not clear about the particular topic that has
to be studied.

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 Descriptive Studies

 Studies concerned with describing the characteristics of a particular

individual or group
 It comes under formal research
 Researcher gathers details about all aspects of a problem
situation
 Who , What , Where, When & How of a topic
 Design of study should be rigid not flexible
Focus should be on
 Formulating the objective of the study?
 Designing the methods of data collection.
 Selecting the sample
 Collecting the data
 Processing & analyzing the data
 Reporting the findings

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 Causal Studies

 Aim is to identify the cause and effect relationship between

variables.
Eg: Studying the effect of price, advertising & marketing on sales
Good nutrition (cause) leads to intelligence (effect) among
children.
 Studying how one variable influences the change in other
variable.
Causal relationships
Symmetrical – two variables fluctuate together
Symmetric conditions occur when two variables become alternate
indicators of another cause or independent variable.
Eg : low attendance of youth in martial art clubs and active
participation in discotheques and parties is the result of
(dependent on) another factor such as life style preferences.
Reciprocal –Two variables mutually influence or reinforce each other
Eg: A person goes through a particular Advertisement which
leads him to buy that brand of product
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 Causal Studies

Asymmetrical – When changes in one variable are responsible for

changes in the another variable.
Types of Asymmetrical relationships
Stimulus response relationship
An event that results in response from some object.
Eg : An increase in product price may lead to fewer sales.
Property – disposition relationship
A property is the enduring nature of a subject, which does not depend
on the circumstances for its activation.
A disposition is an inclination to respond in a certain way under certain
circumstances.
Properties – Family status,age, gender, religion…
Disposition – Attitudes , opinions, values
Eg: The effect of age on attitude with regard to savings , gender & its impact
on attitude towards social issues
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 Causal Studies

Disposition – behaviour relationship

Consumption pattern, work performance, interpersonal acts –
behaviour responses
Eg: Perception about a brand

Property – behaviour relationship

Eg : The family life cycle and purchase of goods, social class &
family saving patterns.

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 Diagnostic

Determines the frequency with which somethings occur or its

association with something else.

Eg : Studies concerning whether certain variables are associated.

• Experimental
Refers to framework or structure of an experiment
Types
Informal experimental designs
Those designs which use a less sophisticated form of
analysis based on differences in magnitude
1. Before & after without control design
2. After-only with control design
3. Before & after with control design

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 Experimental

Formal Experimental Designs

Use precise statistical procedures for analysis.

1. Completely randomized
2. Randomized block design
3. Latin square design
4.Factorial design

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Sampling Design

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 Sampling Design – Basic concepts

 Population or universe
 A population is a set of units (people, objects ,
transactions or events) which fall within the purview of
investigation.
 The entire aggregation of items from which samples
can be drawn is known as a population.
 N represents the size of the population.
• Census
 A complete study of all the elements present in the
population
 Costly & time consuming
 Refusal of the elements to provide information.

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 Sampling Design – Basic concepts

 Sample

 It is a part of the total population.

 It is a subset representative of the population.
 Sample size is represented by n
• Sampling
 It is the technique of selecting a representative part of a
population for the purpose of determining the characteristics
of the whole population.
• Precision
It is a measure of how close an estimate is expected to be ,
to the true value of a parameter.
It is a measure of similarity

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 Sampling Design – Basic concepts

 Bias

It is a term that refers to how far the average statistic lies

from the parameter it is estimating i.e the error which arises
when estimating a quantity

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 Sampling Design -Steps

1. Defining the target population

 A clear definition of target population

 It is defined in terms of element , sampling unit , extent,
and time frame.
 The definition should be line with the objectives
Eg: A study on demand of micro ovens
Population – All women above the age of 20 who cook.
Refined population – All the women above the age of 20 who
cook and whose monthly household income exceeds Rs
20,000

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 Sampling Design -Steps

2. Specifying the sampling frame

 Sampling frame is a list of elements from which the sample

may be drawn .
Eg : Micro oven
Sampling frame
 Telephone directory
 List of credit card users
 Mobile phone users

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 Sampling Design -Steps

3. Specifying sampling Unit

 A sampling unit is a basic unit that contains a single element

or group of elements of the population to be sampled.
 Eg ; Mico oven
Sampling unit – household
Sampling element – all women above the age of 20 living in that
particular house

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 Sampling Design -Steps

4. Selection of Sampling method

 Sampling method outlines the way in which the sample units are
to be selected
 It is influenced by the objectives of business research
,availability of resources – men, money , machine
5. Determination of sample size
Sample size calculations using various methods
6. Specifying the sampling plan
It outlines the modus operandi of the sampling plan
7. Selecting the sample
Implementing sampling plan to select the sample

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