Research Methodology

G07S202

Unit I
Overview Introduction to Research methodology/ Foundations of Research
Research meaning, objectives Motivation & Utility Characteristics of scientific method Understanding the language of research Deductive & Inductive theory Research process

What is Business Research?

 Business Research may be defined as the

systematic and objective process of gathering, recording and analyzing data for aid in making business decisions (Zikmund, Business Research Methods, 2002, p. 6)

Systematicness

and

Objectivity of Business

are

its

distinguishing

features

Research,

which is important tool for managers and decision makers in corporate and non corporate

A

careful,

systematic, in some establish

patient field facts of or

study

and

investigation undertaken to

knowledge, princilpes

(Grinnell, 1993:4)

It is a discovery (Rediscovery); A voyage from the known to the unknown

An effort to be closer to the truth

Defining Research
Research comprises the following: Defining and redefining the problem Formulating hypothesis Collecting, organizing and evaluating data Making deductions and reaching conclusions Carefully testing the conclusions to determine whether they fit the hypothesis

Defining Research Methodology

Methodology means the systematic study of the methods, principles, procedures and rules applied within a discipline Hence research methodology

Objectives of Research

1. To gain familiarity with a certain phenomenon or gain new insights (Exploratory research) 2. To determine the characteristics of an individual or a group of activities and the frequency of its occurrence 3. To Determine the association or independence of an activity
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Typical Users of Business Research Methods

Businesses and Corporations Public Sector Agencies Consulting Firms Research Institutes Non Governmental Organizations Non Profit Organizations Independent Researchers and Consultants

Examples Worlds largest Research companies

Organization
Information Resources Inc. Arbitron Inc.

Type of Research
Provides Solutions to the consumer packaged goods (CPG) industry Provides information services used to develop the local marketing strategies of the electronic media and their advertisers & agencies Provides global marketing research & consulting to Business, Government & associations Provides tracking studies (comprehensive overview of product movement and consumer behavior) in numerous industries, including apparel, fashion, beauty, home & electronics. Explores market potential and market trends, tests products and advertising, studies audiences and their perceptions of various media, and measures public opinion record.

Synovate (Formerly Market Facts, Inc) The NPD Group Inc.

Ipsos

We do more than deliver data. We deliver insight.

Why Study Business Research?

It is not enough to supply client s with the data they can use today. They must be enabled to be at the forefront of tomorrow.

Motivational factors
Competition local, domestic and global More complex business organizations, hence more complex decisions Stakeholders demanding greater influence Growth of technology and greater computing power Growth of Internet More vigorous competition Management as a group of disciplines Greater computing power & speed Lower cost of data collection More & faster access to information Better visualization tools Powerful computations More integration of data (data warehousing) Customized reporting

Significance /Relevance for management

Aid to Informed decision making Helps identify problem areas Aid to forecasting Helps business budgeting Tool for efficient production and investment decision making Optimal utilization of resources Basis for innovation Managers need research to measure and compare the ROI on various strategies. Helps in a better understanding of employees, stockholders and customers
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Features of A Good Research Study

 Objectivity: It must answer the research question  Control: It shall ensure adequate control over independent variable  Generalisability: It should have same result when applied in identical applications

 Free from Personal Bias: It must be free from personal bias.  Systematic: It must have various interrelated steps that lead another step.  Reproducible: It must give approximately the same result when applied to population having similar

Points to Remember


Purpose clearly detailed

 Research design thoroughly planned  High ethical standards applied  Limitations frankly revealed  A complete and proper analysis  Findings presented unambiguously  Decision based conclusion

Application of Research in Management

        

Marketing Human Resource Management Production Finance and Accounting Information Technology Materials Planning and Production Control Purchasing Advertising and Sales Promotion Social Responsibility Related Issues

Even beyond functional areas, we have scope to do research.

Fields Where Business Research is often Used

General Business Conditions and Corporate Research Short- & Long-Range Forecasting, Business and Industry Trends Global Environments Inflation and Pricing Plant and Warehouse Location Acquisitions

Financial and Accounting Research

Forecasts of financial interest rate trends, Stock,bond and commodity value predictions capital formation alternatives mergers and acquisitions risk-return trade-offs portfolio analysis impact of taxes research on financial institutions expected rate of return capital asset pricing models credit risk cost analysis

Management and Organizational Behaviour Research

Total Quality Management Morale and Job Satisfaction Leadership Style Employee Productivity Organizational Effectiveness Structural ssues Absenteeism and turnover Organizational Climate

Fields where Business Research is often used

Sales and Marketing Research
Market Potentials Market Share Market segmentation Market characteristics Sales Analysis Establishment of sales quotas Distribution channels New product concepts Test markets Advertising research Buyer behaviour Customer satisfaction Website visitation rates

Information Systems Research

Knowledge and information needs assessment Computer information system use and evaluation Technical suppot satisfaction Database analysis Data mining Enterprise resource planning systems Customer relationship management systems

Corporate Responsibility Research

Ecological Impact Legal Constraints on advertising and promotion Sex, age and racial discrimination / worker equity Social values and ethics

Science and the Scientific Method

 Science has been defined as the methodological and systematic approach to acquisition of new knowledge (Geoffrey Marcyzk, David DeMatteo, David Festinger, Essentials of Research Design and Methodology, John Wiley & Sons, 2005, p. 4)  The scientific method, which has evolved since the 13th century, concerns the set of tools, techniques and procedures used by basic and applied researchers to analyze and understand phenomena and prove or disprove prior conceptions.

Comparison of Scientific and Non Scientific Method of Research

Basis
Objectivity

Scientific Method
It is more objective

Non scientific Method

It may have chances of subjectivity It is comparatively less degree of preciseness

Degree of Accuracy

It is highly precise where quantitative concept can be defined and measured effectively.

Continuing and Exhaustive

It takes cognizance of the The same is always existing knowledge and helps not true in every in accumulation of systematic situation knowledge which is continuous and unending

The Essence of the Scientific Method

Elements of the Scientific Method Characteristics of the Scientific Method Objectivity Systematic Analysis Precise Logical Interpretation of Results

Empirical Approach Observations Questions Hypotheses Experiments Analysis Conclusion Replication

When Should Business Research be Undertaken?

Is sufficient time available?

Yes
Is information inadequate?
Do not undertake Business Research

NO

Yes
High importance of decision?

Yes
Research benefits greater than costs?
Undertake Business Research

Value and Costs of Undertaking Business Research

VALUE

COSTS
Research Costs Delay in Making Business Decisions Disclosure of Information to Rivals Possibility of Error

Decreased Uncertainty Higher Likelihood of Correct Decisions Better Business performance Higher Profits Better Reputation

Understanding the language of Research Concept

It is a generally accepted collection of meanings or characteristics associated with certain events, objects., conditions, situations and behaviors. Eg: A man movements, table, excel sheet, warranty card, familys total income etc. Importance to Research: 1. How clearly we conceptualize 2. How well others understand the concepts we use Eg Familys total income

 Construct
It is an image or abstract idea specifically invented for a given research . Eg: Presentation quality

Definition
Confusion about the meaning of concepts may destroy a research studys value If words have different meanings to the parties involved, then the parties are not communicating well Definitions are one way to reduce this danger

Variable
It is used as a synonym for construct or the property being studied Eg: Age, income, temperature.

Inductive Reasoning
Inductive reasoning is, moving from specific observations to broader generalizations and theories. Inductive reasoning is all about arriving at a conclusion on the basis of principle facts which guide you towards the conclusion. Bottom up approach

Observatio n

Pattern

Tentative hypothesis

Theory

Deductive Reasoning
Deductive reasoning works from the more general to the more specific. Top down approach

Theory

hypothesis

Observatio n

Confirmati on

Research process- Steps

1. Problem identification & formulation of a research problem 2. Research Proposal Purpose, time frame, scope, sampling design, limitations etc. 3. Pilot testing 4. Data collection & entry 5. Data Analysis & interpretation 6. Research reporting 7. Management Decision

End of Unit 1