Business Research Business Research MethodsMethods

BUSINESS BUSINESS

A commercial activity engaged in as a means A commercial activity engaged in as a means of livelihood or profit, or an entity which of livelihood or profit, or an entity which engages in such activities. engages in such activities.

RESERACH RESERACH Re ---------------- Search Re ---------------- Search Re means (once more, afresh, anew) OR (back; with return Re means (once more, afresh, anew) OR (back; with return

to a previous state) to a previous state)

Search means (look thorough or go over thoroughly to look Search means (look thorough or go over thoroughly to look something) OR (examine to find anything concealed) something) OR (examine to find anything concealed)

Research is an ORGANIZED and SYSTEMATIC way of Research is an ORGANIZED and SYSTEMATIC way of FINDING ANSWERS to QUESTIONS . FINDING ANSWERS to QUESTIONS .

Research means the activity of collecting, noting and Research means the activity of collecting, noting and analyzing the important information related to any problem analyzing the important information related to any problem about any human activity. It includes the investigation of about any human activity. It includes the investigation of problem, to take important steps for that make particular problem, to take important steps for that make particular presumptions, adopting method and important research presumptions, adopting method and important research studies. studies.

METHODS:METHODS:

Methods are set of specific techniques Methods are set of specific techniques for selecting cases, measuring and for selecting cases, measuring and observing aspects of social life, observing aspects of social life, gathering and refining data, analyzing gathering and refining data, analyzing data and reporting on results. data and reporting on results.

Definition Definition

Business research can be defined as the Business research can be defined as the systematic and objective process of gathering, systematic and objective process of gathering, recording and analyzing data for aid in making recording and analyzing data for aid in making business decisions. business decisions.

SYSTEMATIC SYSTEMATIC

because there is a definite set of procedures because there is a definite set of procedures and steps which you will follow. There are and steps which you will follow. There are certain things in the research process which certain things in the research process which are always done in order to get the most are always done in order to get the most accurate results.accurate results.

ORGANIZED ORGANIZED in that there is a structure or method in going about in that there is a structure or method in going about

doing research. It is a planned procedure, not a doing research. It is a planned procedure, not a spontaneous one. It is focused and limited to a spontaneous one. It is focused and limited to a specific scope. specific scope.

FINDING ANSWERSFINDING ANSWERS is the end of all research. Whether it is the answer to a is the end of all research. Whether it is the answer to a

hypothesis or even a simple question, research is hypothesis or even a simple question, research is successful when we find answers. Sometimes the successful when we find answers. Sometimes the answer is no, but it is still an answer.answer is no, but it is still an answer.

QUESTIONS QUESTIONS are central to research. If there is no question, then are central to research. If there is no question, then

the answer is of no use. Research is focused on the answer is of no use. Research is focused on relevant, useful, and important questions. Without a relevant, useful, and important questions. Without a question, research has no focus, drive, or purpose.question, research has no focus, drive, or purpose.

Defining ResearchDefining Research 1). A collection of methods and methodologies 1). A collection of methods and methodologies

that researchers apply systematically to produce that researchers apply systematically to produce scientifically based knowledge about the social scientifically based knowledge about the social world. world.

2). Research must be systematic and follow a 2). Research must be systematic and follow a series of steps and a rigid standard protocol. series of steps and a rigid standard protocol. These rules are broadly similar but may vary These rules are broadly similar but may vary slightly between the different fields of science. slightly between the different fields of science.

Methodology:Methodology: Methodology & methods, two terms are Methodology & methods, two terms are

often treated as synonyms. Methodology often treated as synonyms. Methodology is broader and envelops methods. It is is broader and envelops methods. It is understanding the social-organizational understanding the social-organizational context, philosophical assumptions, context, philosophical assumptions, ethical principals and political issues of ethical principals and political issues of the enterprise of researchers who use the enterprise of researchers who use methods. methods.

Methods:Methods: Methods are set of specific techniques for Methods are set of specific techniques for

selecting cases, measuring and observing selecting cases, measuring and observing aspects of social life, gathering and aspects of social life, gathering and refining data, analyzing data and refining data, analyzing data and reporting on results. reporting on results.

Types of Research Types of Research Pure Research / Basic Research Pure Research / Basic Research

Quantitative Research Quantitative Research

Basic Research Basic Research

Applied Research Applied Research

Longitudinal Research Longitudinal Research

Qualitative Research Qualitative Research

Descriptive ResearchDescriptive Research

Classification ResearchClassification Research

Comparative Research Comparative Research

Exploratory ResearchExploratory Research

Explanatory Research Explanatory Research

Causal Research Causal Research

Theory-testing Research Theory-testing Research

Theory-Building Research Theory-Building Research

Action Research Action Research

Historical research Historical research

Ex- post facto research Ex- post facto research

1). Pure Research /Basic Research 1). Pure Research /Basic Research Pure research is undertaken for the sake of knowledge without Pure research is undertaken for the sake of knowledge without

any intention to apply it in practice. Pure research is also known any intention to apply it in practice. Pure research is also known as basic or fundamental research.as basic or fundamental research.

Contribution of pure research: Pure research offers solutions to Contribution of pure research: Pure research offers solutions to many practical problems Ex: Maslow’s theory of motivation.many practical problems Ex: Maslow’s theory of motivation.

Pure research helps to find the critical factors in a practical Pure research helps to find the critical factors in a practical problemproblem

Pure research develops many alternative solutions and thus Pure research develops many alternative solutions and thus enables us to choose the best solution.enables us to choose the best solution.

2). Quantitative Research 2). Quantitative Research

It is based on methodological principals of It is based on methodological principals of positivism and neo-positivism positivism and neo-positivism

It adheres to standards of strict research design. It adheres to standards of strict research design. Statistical analysis is used in it. Statistical analysis is used in it.

3). Applied Research3). Applied Research

Aims at solving specific problems. Aims at solving specific problems. Aims at establishing policy programs that will Aims at establishing policy programs that will

help to improve social life. help to improve social life. Types of applied research are action research, Types of applied research are action research,

social impact studies, cost-benefit analysis social impact studies, cost-benefit analysis evaluation research. evaluation research.

4). Longitudinal Research4). Longitudinal Research

It involves study of sample at more than one It involves study of sample at more than one point in time or occasion point in time or occasion

e.g. Trend studies, Panel studiese.g. Trend studies, Panel studies

A). Cross sectional Research A). Cross sectional Research It involves study of many cases at one point in It involves study of many cases at one point in

time or occasion time or occasion

5). Qualitative Research5). Qualitative Research

It is based on methodological principals of It is based on methodological principals of phenomenology, symbolic interactionism, phenomenology, symbolic interactionism, hermeneutics. hermeneutics.

It aims at exploration of social world. It aims at exploration of social world. following elements are there….exploration, following elements are there….exploration, relationship discovery, establishing relationship discovery, establishing construct, testing hypothesis. construct, testing hypothesis.

6). Descriptive Research6). Descriptive Research

Usually it forms preliminary study of a research Usually it forms preliminary study of a research project. project.

It aims at describe social events, relations and It aims at describe social events, relations and events. events.

It provides background information about an event It provides background information about an event in question in question

The objective of descriptive research is to describe The objective of descriptive research is to describe things, such as the market potential for a product or things, such as the market potential for a product or the demographics and attitudes of consumers who the demographics and attitudes of consumers who buy the product. buy the product.

7). Classification research 7). Classification research

It aims at categorization of units into groups It aims at categorization of units into groups To demonstrate differences To demonstrate differences To explain relationships To explain relationships

8). Comparative Research 8). Comparative Research

To identify similarities and differences between To identify similarities and differences between units at all levels. units at all levels.

9). Exploratory Research/ 9). Exploratory Research/ Formulative researchFormulative research

It aims at gaining information about an issue in hand. It aims at gaining information about an issue in hand. The objective of exploratory research is to gather The objective of exploratory research is to gather

preliminary information that will help define problems preliminary information that will help define problems and suggest hypotheses. and suggest hypotheses.

The results of exploratory research are not usually The results of exploratory research are not usually useful for decision-making by themselves, but they useful for decision-making by themselves, but they can provide significant insight into a given situation. can provide significant insight into a given situation. Although the results of qualitative research can give Although the results of qualitative research can give some indication as to the "why", "how" and "when" some indication as to the "why", "how" and "when" something occurs, it cannot tell us "how often" or something occurs, it cannot tell us "how often" or "how many". "how many".

Exploratory researchExploratory research is a type of research is a type of research conducted for a problem that has not been conducted for a problem that has not been clearly defined. Exploratory research helps clearly defined. Exploratory research helps determine the best research design, data determine the best research design, data collection method and selection of subjects. collection method and selection of subjects.

It should draw definitive conclusions only with It should draw definitive conclusions only with extreme caution. Given its fundamental nature, extreme caution. Given its fundamental nature, exploratory research often concludes that a exploratory research often concludes that a perceived problem does not actually exist. perceived problem does not actually exist.

10). Explanatory Research 10). Explanatory Research

It aims at explaining social relations and events. It aims at explaining social relations and events. To build, test or revise a theory. To build, test or revise a theory.

11). Causal Research11). Causal Research It aims at establishing cause and effect relationship It aims at establishing cause and effect relationship

among variables. among variables. The objective of causal research is to test hypotheses The objective of causal research is to test hypotheses

about cause-and-effect relationships.about cause-and-effect relationships. Causal Research explores the effect of one thing on Causal Research explores the effect of one thing on

another and more specifically, the effect of one another and more specifically, the effect of one variable on another.variable on another.

The research is used to measure what impact a The research is used to measure what impact a specific change will have on existing norms and specific change will have on existing norms and allows market researchers to predict hypothetical allows market researchers to predict hypothetical scenarios upon which a company can base its scenarios upon which a company can base its business plan. business plan.

For example, if a clothing company currently sells For example, if a clothing company currently sells blue denim jeans, causal research can measure the blue denim jeans, causal research can measure the impact of the company changing the product design impact of the company changing the product design to the colour white. to the colour white.

Following the research, company bosses will be able Following the research, company bosses will be able to decide whether changing the colour of the jeans to to decide whether changing the colour of the jeans to white would be profitable. white would be profitable.

To summarise, causal research is a way of seeing how To summarise, causal research is a way of seeing how actions now will affect a business in the future. actions now will affect a business in the future.

12). Theory testing Research12). Theory testing Research

It aims at testing validity of a theory It aims at testing validity of a theory

13). Theory building Research13). Theory building Research

To establish and formulate theory To establish and formulate theory

14). Action Research 14). Action Research

It is application of fact findings to practical It is application of fact findings to practical problem solving in a social situation with a view problem solving in a social situation with a view to improve quality of action within it, involving to improve quality of action within it, involving collaboration and cooperation of researchers, collaboration and cooperation of researchers, practitioners and laymen. practitioners and laymen.

It can be situational (diagnose a problem and It can be situational (diagnose a problem and attempts to solve it), collaborative, participatory attempts to solve it), collaborative, participatory (researcher take part in implementation of (researcher take part in implementation of findings) and self-evaluation (it involves findings) and self-evaluation (it involves constant evaluation and adjustment of research constant evaluation and adjustment of research and practice) and practice)

15) Ex post facto Research 15) Ex post facto Research Ex post facto means from what is done afterwards. Ex post facto means from what is done afterwards.

Ex post facto research method refers to those studies Ex post facto research method refers to those studies which investigate possible cause-and-effect which investigate possible cause-and-effect relationships by observing an existing condition or relationships by observing an existing condition or state of affairs and looking back in time for valid state of affairs and looking back in time for valid causal factors. causal factors.

The ex post facto research method is a method of one The ex post facto research method is a method of one using statistics and alternative ways to figure out an using statistics and alternative ways to figure out an event. One would not be able to study actual events event. One would not be able to study actual events because they have already happened. because they have already happened.

Basic Research Designs Compared

EXPLORATORY DESCRIPTIVE CAUSAL

Objectives Gather backgroundinformation, define terms,clarify problems andhypotheses, establishresearch priorities.

Describe and measuremarketing phenomena,characteristics, orfunctions of interest.

Establish causality, develop“if-then” statements

Characteristics Relatively simple,versatile and flexible;Often the first phase of amultiple research design,unstructured.

Prior formulation ofspecific hypotheses;Pre-planned andstructured design.

Manipulation of one or moreindependent variables;Pre-planned and structureddesign;Control of other mediatingvariables

Methods Secondary data analysis Qualitative research Expert surveys Pilot surveys

Secondary dataanalysis Surveys Panels Observational and. other data

Experiments: Laboratory Field Test marketing

Results/Findings Tentative Conclusive Conclusive

SIGNIFICANCE OF RESEARCHSIGNIFICANCE OF RESEARCH Research include scientific and inductive thinking and it promotes Research include scientific and inductive thinking and it promotes

the development of logical habits of thinking and organization.the development of logical habits of thinking and organization.

The role of research in several fields of applied economics.The role of research in several fields of applied economics.

Research provides the basis for nearly all government polices in Research provides the basis for nearly all government polices in our economic system.our economic system.

Research has its special significance in solving various operational Research has its special significance in solving various operational and planning problems of business and industry.and planning problems of business and industry.

Research is equally important for social scientists in studying Research is equally important for social scientists in studying social relationships and in seeking answers to various social social relationships and in seeking answers to various social problems.problems.

Good Research RequiresGood Research Requires

The scope and limitations of the work to be clearly defined. The scope and limitations of the work to be clearly defined. The process to be clearly explained so that it can be The process to be clearly explained so that it can be

reproduced and verified by other researchers. reproduced and verified by other researchers. A thoroughly planned design that is as objective as possible. A thoroughly planned design that is as objective as possible. Highly ethical standards are applied. Highly ethical standards are applied. All limitations are documented. All limitations are documented. Data be adequately analyzed and explained. Data be adequately analyzed and explained. All findings are presented unambiguously and all conclusions All findings are presented unambiguously and all conclusions

be justified by sufficient evidence. be justified by sufficient evidence. Adequate analysis for decision-maker’s needsAdequate analysis for decision-maker’s needs Researcher’s experience reflectedResearcher’s experience reflected

QUALITIES OF A GOOD QUALITIES OF A GOOD RESEARCHRESEARCH

GOOD RESEARCH IS SYSTEMATICGOOD RESEARCH IS SYSTEMATIC GOOD RESEARCH IS LOGICALGOOD RESEARCH IS LOGICAL GOOD RESEARCH IS EMPIRICALGOOD RESEARCH IS EMPIRICAL GOOD RESEARCH IS REPLICABLE GOOD RESEARCH IS REPLICABLE

Market Research:Market Research: Market research is a branch for acquiring the Market research is a branch for acquiring the

marketing information. Market means actual and marketing information. Market means actual and potential customers. In the market research the potential customers. In the market research the questions such as who, what, where, when, why questions such as who, what, where, when, why and how etc. are examined in context to the and how etc. are examined in context to the present and potential customers. Market research present and potential customers. Market research is an activity related to investigation, analysis and is an activity related to investigation, analysis and estimate of market demand. It includes the study estimate of market demand. It includes the study of habit, taste and fashion of the customers. of habit, taste and fashion of the customers.

Mainly Marketing Research includes:Mainly Marketing Research includes:

(1)(1) Market size. Market size. (2)(2) Geographical area of customers. Geographical area of customers. (3)(3) Demographic description of customers. Demographic description of customers. (4)(4) Market segmentation on the basis of age, income, Market segmentation on the basis of age, income,

education, nationality, caste, life standard etc. education, nationality, caste, life standard etc. (5)(5) Analysis of market demands. Analysis of market demands. (6)(6) Sales analysis in context to customers, area and Sales analysis in context to customers, area and

product. product. (7)(7) Customer’s requirements, necessities, habit and Customer’s requirements, necessities, habit and

behavior. behavior. (8)(8) Trader’s requirements and selection sequence. Trader’s requirements and selection sequence. (9)(9) Level of competition and market trends etc. Level of competition and market trends etc.

Marketing Research:Marketing Research:Marketing Research is broad concept. It includes the entire research Marketing Research is broad concept. It includes the entire research

activities for the entire marketing process.activities for the entire marketing process.

According to Philip Kilter, “Marketing Research means According to Philip Kilter, “Marketing Research means systematic problem analysis model building and fact finding for systematic problem analysis model building and fact finding for the purpose of improved decision making and control in the the purpose of improved decision making and control in the marketing of goods and services.”marketing of goods and services.”

According to A. M. A., “Marketing Research is the systematic According to A. M. A., “Marketing Research is the systematic gathering, recording and analyzing of data about problems gathering, recording and analyzing of data about problems relating to the marketing of goods and services.”relating to the marketing of goods and services.”

According to R. D. Crisp, “Marketing Research is the systematic According to R. D. Crisp, “Marketing Research is the systematic evaluative and exhaustive search for and study of the facts evaluative and exhaustive search for and study of the facts relevant to any problem in the field of marketing”.relevant to any problem in the field of marketing”.

On the basis of the above definitions, On the basis of the above definitions, it can be clearly said that:it can be clearly said that:

(1) Marketing research is a particular target based activity, (1) Marketing research is a particular target based activity, which includes two main objectives: which includes two main objectives:

Clarification of problem, Clarification of problem, Solution of a problem.Solution of a problem.

(2) In the market research the information and conclusion is (2) In the market research the information and conclusion is found out after collecting and analyzing the data in found out after collecting and analyzing the data in context, to the problems.context, to the problems.

(3) During the market research the marketing decisions are (3) During the market research the marketing decisions are being taken through the collected information. Not only is being taken through the collected information. Not only is that but the effective decisions also taken on its basis.that but the effective decisions also taken on its basis.

(4) Whatever information is received through marketing research (4) Whatever information is received through marketing research about the external environments* affecting business activities about the external environments* affecting business activities such as customer’s fashion, purchasing habit, purchasing such as customer’s fashion, purchasing habit, purchasing behavior, industry, competitors etc. is more useful compare to the behavior, industry, competitors etc. is more useful compare to the information acquired through the internal sources.information acquired through the internal sources.

(5) Marketing research is a permanent process. All the marketing (5) Marketing research is a permanent process. All the marketing decisions are based on information. So, the marketing research is decisions are based on information. So, the marketing research is considered as a part of Management Information System (MIS).considered as a part of Management Information System (MIS).

(6) The four components (4-P) of market mix are being studied in (6) The four components (4-P) of market mix are being studied in marketing research. The efforts are made to know that how much marketing research. The efforts are made to know that how much contribution of these factors is in sales promotion.contribution of these factors is in sales promotion.

(7) After acquiring the important information regarding the special (7) After acquiring the important information regarding the special problems about the marketing activities such as, when the product problems about the marketing activities such as, when the product should be launched in the market, whether to increase or decrease should be launched in the market, whether to increase or decrease the product line etc. the efforts must be made to solve these the product line etc. the efforts must be made to solve these problems.problems.

SCIENTIFIC RESEARCHSCIENTIFIC RESEARCH

““Scientific Research Method is one and same in the Scientific Research Method is one and same in the branches of science, which is used in all the research branches of science, which is used in all the research and used by various scientists. This method attracted and used by various scientists. This method attracted all the trained minds .all the trained minds .

MEANING. MEANING. ““The Scientific Method is a systematic step by step The Scientific Method is a systematic step by step

procedure following the logical processes of procedure following the logical processes of reasoning.” “Scientific method is a means for reasoning.” “Scientific method is a means for gaining knowledge of universe.” As per karl pearson gaining knowledge of universe.” As per karl pearson “Scientific method is one and same in all branches and “Scientific method is one and same in all branches and that method of all logically trained minds.” “Science is that method of all logically trained minds.” “Science is not wrapped up with any particular body of facts.” not wrapped up with any particular body of facts.”

BASIS FOR SCIENTIFIC BASIS FOR SCIENTIFIC METHODMETHOD

The scientific method is based on certain criteria's:The scientific method is based on certain criteria's: Reliance on empirical evidence.Reliance on empirical evidence. It utilizes relevant concepts. It utilizes relevant concepts. Commitment to objectivity.Commitment to objectivity. It presupposes ethical neutrality.It presupposes ethical neutrality. It aims generalization.It aims generalization. It results into probabilistic predictions.It results into probabilistic predictions. It is a logical reasoning process. It is a logical reasoning process.

ESSENTIALS OF A GOOD SCIENTIFIC ESSENTIALS OF A GOOD SCIENTIFIC METHODMETHOD

The advisory committee on Economic and Social Research The advisory committee on Economic and Social Research has described the following needs.has described the following needs.

Careful logical analysis of the problem, separating its Careful logical analysis of the problem, separating its elements and formulating hypothesis.elements and formulating hypothesis.

Collection of data related to the problem under studyCollection of data related to the problem under study Classification of data.Classification of data. Expression of variables in quantitative terms.Expression of variables in quantitative terms. Statistical procedure in analyzing the data.Statistical procedure in analyzing the data. Sound logical reasoning as to the testing of hypothesis. Sound logical reasoning as to the testing of hypothesis. Specific and clear statement of generalizations to facilitate Specific and clear statement of generalizations to facilitate

checking and testing by others.checking and testing by others. Complete elimination of personal equation. Complete elimination of personal equation. Complete and careful reporting of the research process. Complete and careful reporting of the research process.

DIFFICULTIES IN APPLYING DIFFICULTIES IN APPLYING SCIENTIFIC METHODSCIENTIFIC METHOD

Complexity of the subjectComplexity of the subject Difficulty of obtaining accurate measurementsDifficulty of obtaining accurate measurements Process of measurement may influence resultsProcess of measurement may influence results Difficulty in using experiments to test Difficulty in using experiments to test

hypothesishypothesis Difficulty in making accurate predictionsDifficulty in making accurate predictions Problematic objective of investigation Problematic objective of investigation

DIFFERENCE BETWEEN SCIENTIFIC AND DIFFERENCE BETWEEN SCIENTIFIC AND NON SCIENTIFIC METHOD OF RESEARCHNON SCIENTIFIC METHOD OF RESEARCH

SCIENTIFIC METHODSCIENTIFIC METHOD More objective but making the result unbiased. More objective but making the result unbiased. Systematic manner with pre designed steps.Systematic manner with pre designed steps. The results can be measured more accurately. The results can be measured more accurately. It is a continuous research process.It is a continuous research process. A number of statistical techniques are applied to analyze the data.A number of statistical techniques are applied to analyze the data.

NON SCIENTIFIC METHODNON SCIENTIFIC METHOD More objective but making the results more biased.More objective but making the results more biased. Non systematic mannerNon systematic manner The results cannot be measured accurately.The results cannot be measured accurately. It is not a continuous process.It is not a continuous process. May not be applicable.May not be applicable.

Ethical issues in Business Research Ethical issues in Business Research

Intrusions on consumer privacy Intrusions on consumer privacy Invasion of Privacy. Misuse of Research Findings Misuse of Research Findings Online privacy and security Online privacy and security Informing Respondents of Survey Purpose Deceiving Respondents. Confidentiality and Anonymity