1.

Introduction to Business Research

Ms Swapna Tamhankar

Introduction to Business
Research
Business research is defined as the
systematic and objective process of
generating information for aid in
making business decisions.

Business Research
Research information is neither
intuitive nor haphazardly gathered.
Literally, research (re-search)
-search again
Business research must be objective
Detached and impersonal rather than
biased
It facilitates the managerial decision
process for all aspects of a business.

Business Research Types

Fundamental research / Applied research
Quantitative / Qualitative
Primary / Secondary
Exploratory / Descriptive / Causal
Longitudinal / Cross Sectional

Fundamental Research
Attempts to expand the limits of
knowledge.
Not directly involved in the solution
to a pragmatic problem.
Examples
Big 5 Model
Maslows Need theory
80-20 Rule

"The secret of success is to know

something nobody else knows. "
Aristotle Onassis

Applied Research
Conducted when a decision must be
made about a specific real-life
problem

Applied Research Examples

Should McDonalds India add Vada
Pav to its menu?
Should e-grocers like localbanya care
for deep discount offers like their
smart grocery plans ?

The Decision-making Process Associated with the

Development and Implementation of a Strategy

Identifying problems and

opportunities
Diagnosis and assessment
Selecting and implementing a course
of action
Evaluating the course of action

Determining When to Conduct

Business Research

Time constraints
Availability of data
Nature of the decision
Benefits versus costs

Determining When to Conduct

Business Research
Time Constraints
Is sufficient time
available before
a managerial
decision
must be made?

No

Yes

Data
Availability
Is the information already
on hand
inadequate
for making
the decision?

No

Nature of the Decision

Yes

Is the decision
Yes
of considerable
strategic
or tactical
importance?

No

Do Not Conduct Business Research

Benefits vs.
Costs
Does the value
of the research Yes
information
exceed the cost
of conducting
research?

No

Conducting
Business
Research

Exploratory / Descriptive /
Causal
Exploratory
Descriptive
Causal

Uncertainty Influences
The Type Of Research

CAUSAL OR
DESCRIPTIVE

COMPLETELY
CERTAIN

ABSOLUTE
AMBIGUITY

EXPLORATORY

Exploratory Research
Secondary data
Experience survey
Pilot studies

14

Exploratory Research
Initial research conducted to clarify
and define the nature of a problem
Does not provide conclusive
evidence
Subsequent research expected

Descriptive Research
Describes characteristics of a
population or phenomenon
Some understanding of the nature of
the problem

I keep six honest serving men, (they

taught me all I knew), their names are
and
what, and why, and
and where and when,
how,
who.
--Rudyard Kipling

Descriptive Research
Example
The number of smartphone users who use
shopping apps has jumped to 54% in May
15, from just 21% a year back.
The average Indian spends around two
hours and 45 minutes per day on their
smartphone.
Around the world, more than six-in-10
respondents (63%) say they like when
manufacturers offer new products.

Causal Research
Conducted to identify cause and
effect relationships

Identifying Causality
A causal relationship is impossible to
prove.
Evidence of causality:

1. The appropriate causal order of

events

2. Simultaneous variation--two
phenomena vary together

3. An absence of alternative plausible

explanations

Classify the following research

objectives as causal descriptive
and exploratory

1. To find out the various reasons for

increasing absenteeism rates in the
organization
2. To describe the demographic traits of
the customers using peppertap
3. To figure out if people be interested in
the new product offerings
4. To compare the savings and loans rate
of malaysia, indonesia and china

5. To compare the effectiveness of the two

training programs
6. To predict the value of reliance industries
stock price using the dividends and
dividend growth rates
7. To study the impact of last years product
recall on the companys stock price
8. To ascertain if the customers will buy
more of our product in the new package