Business Research

• Introduction, definition, nature and scope of business research

• Importance of business research• Process of business research

DefinitionA process of determining, acquiring, analyzing , synthesizing and disseminating relevant business data, information, and insights to decision makers in ways that mobilize the organization to take appropriate business actions that in turn maximize business performance.

OBJECTIVES OF RESEARCHTo gain familiarity with a phenomenon or to achieve new insights into it (exploratory or formulative research studies)To portray accurately the characteristics of a particular individual, situation or a group (descriptive research studies)To determine the frequency with which something occurs or with which it is associated with something else (diagnostic research studies)To test a hypothesis of a casual relationship between variables (hypothesis-testing research studies)

Types of researchDescriptive vs AnalyticalApplied vs FundamentalQuantitative vs QualitativeConceptual vs EmpricalOther types – one time research/longitudinal research (based on purpose/time/environment)

Field setting research/laboratory research/simulation researchClinical/diagnostic researchHistoric researchConclusion oriented and decision oriented research

Research ApproachesQuantitative approach-inferential, experimental and simulation approachesQualitative approach – assessment of attitudes, opinions and behaviours.

Importance of ResearchInculcates scientific and inductive thinkingPromotes the development of logical habits of thinking of organizationBasis for nearly all government policies in our economic systemHelps in solving various operational and planning problemsHelps in studying social relationships and in seeking answers to various social problems

Different Perspectives..For a ph.d scholar, research may mean a careerismTo professionals in RM, its source of livelihoodTo philosophers and thinkers, it mean the outlet for new ideas and insightsTo literary men and women, it mean the development of new styles and creative workTo analysts and intellectuals, it mean the generalization of new theories

Exhibit 1-2 Hierarchy of Business Decision Makers

Visionaries

Intuitive Decision Makers

Standardized Decision Makers

Visionaries

Research Process1. Define research problem2. Review of literature ( Review concepts and

theories/review previous research finding)3. Formulate hypotheses4. Design research (including sample design)5. Collect data (execution)6. Analyse data (test hypotheses if any)7. Interpret and report

Qualities of good researchA good research is

SYSTEMATICLOGICALEMPRICALREPLICABLE

1-12

Exhibit 1-8 Characteristics of Good Research

Clearly defined purpose

Detailed research process

Thoroughly planned design

High ethical standards

Limitations addressed

Adequate analysis

Unambiguous presentation

Conclusions justified

Credentials

1-13

Exhibit 1-4 Who Conducts Business Research?

Internal External

1-14

Eastman Kodak has a world-class research department

1-15

Exhibit 1-4Business Research Suppliers

External Research Suppliers

Business Research Firms

Communication Agencies

Consultants

Trade Associations

1-16

Proprietary Research

Decision Analyst, Inc. uses Internet-based concept testingcalled Conceptor to examine new product concepts

1-17

Syndicated ServicesNielsen Media Researchprovides audience data for television programs like Court TV

1-18

Exhibit 1-6 Some Syndicated Data Providers

AC NielsenScarboroughMillward BrownNielsen Media ResearchRoper ASWCSA TMOYahoo!ORC International

DoubleClickNielsen/NetRatingsTaylor Nelson Sofres IntersearchJ.D. Power AssociatesMediaMarkSimmon (SMRB)BRMBInformation Resources Inc.

1-19

Specialty Business Research FirmsMethodology

Process

Industry

Participant group

Geographic Region

1-20

Communication Agencies

Direct Business

Public Relations

AdvertisingSales Promotion

1-21

Consultants and Trade Associations

ConsultantsBusinessGeneral Business

Trade AssociationsGeneral businessBusiness specialtiesResearch specialties

1-22

Key TermsBusiness intelligence systemBusiness researchControlCustom ResearcherData miningData warehouse Decision support systemExtranetFull-service researcher

IntranetManagement dilemma Proprietary MethodologyReturn on Investment (ROI)Scientific methodStrategySyndicated data providerTactics

RESEARCH PROBLEM

Problem – DefinitionA specific managerial decision area to be clarified or problem to be solved.

Eg: Coca Cola s change in decision to change its formula to introduce “new” coke in 1980s

Problem Definition – The Process

Ascertain the decision maker’s objectives (ice berg principle- cause to cause analysis)Understand the background of the problem (situation analysis- a preliminary investigation)Isolate and identify the problem rather than its symptoms (To the Point – ad effectiveness)

Determine the unit of analysis (Choice of respondents – org/symptoms/pblm defn based on sym/true pblm)Determine the relevant variables (categorical , continuous & superfluous

Dependent and Independent variables)State the research questions (hypotheses) and research objectives

Contd...Problem definition results in statements of research questions and research objectivesAt the end of the problem definition stage of the research process, researchers should prepare a written statement that clarifies any ambiguity about what they hope the research will accomplish

Hypothesis ?An unproven proposition or possible solution to a problem Problem statements(questions) and hypothesis (declarative) both state relationships.Eg: a manager many hypothesize that sales persons who show the highest job satisfaction will be the most productive

Hypotheses- examplesThere is a positive relationship b/w internet shopping and the presence of younger children in the homeManagers with liberal arts educations will process less accounting data than will those with masters degree in business administrationOpinion leaders are more affected by mass media commn. Sources than are non leaders

ExampleEg : A statement made by a company: “ the problem is to determine the best ways our company can train existing and potential users of networked personal computers”Research questions

How familiar are employees with the various software applications for personal computers

What attitudes do employees have toward these software packages?How important are the various factors for evaluating the use of a personal computer?How effective are training efforts in increasing knowledge and use of the new applications?

Components of a research problem

There must be an individual or a group which has some difficulty or the problemThere must be some objectives to be attained at. If one wants nothing, one cannot have a problemThere must be alternative means for obtaining the objectives one wishes to attain.

Contd..There must remain some doubt in the mind of the researcher with regard to the selection of alternativesThere must be some environment(s) to which the difficulty pertains

Selection of research problemSubject which is overdone should not be normally chosenControversial subject should not become the choice of an average researcherToo narrow or too vague problems should be avoided

Contd..The subject selected for research should be familiar and feasible so that the related research material or sources of research are within one’s reachThe importance of the subject, qualifications and the training of a researcher, the cost involved, the time factor etc should be considered

Contd…The selection of a problem must be preceded by a preliminary study(not in case of a replicable research).

Necessity of defining the problemResearch problem clearly started is a problem half solved

What data are to be collected?What characteristics of data are relevant and need to be studied?What relations are to be explored?What techniques are to be used for the purpose?

Technique involved in defining a problem

1. statement of the problem in a general way

2. Understanding the nature of the problem3. Surveying the available literature4. Developing the ideas through

discussions-Experience survey5. Rephrasing the research problem

Research objectiveThe purpose of the research , expressed In measurable terms; the definition of what the research should accomplishIs the researcher's version of the business problemThe statement of the business problem influences the research objectives and design

Contd..The number of research objectives should be limited to manageable quantity.Fewer the number of objectives , easier it will be to ensure that each objective will be addressed fully

PROBLEM/QUESTIONS

RESEARCH QUESTIONS

RESEARCH OBJECTIVES

Should the organization offer outplacement services?

1. Are managers aware of outplacement?

2. How concerned are managers about outplacement services?

To determine manager’s awareness using aided recall To measure managers satisfaction with existing personnel policies

Which of the services should be offered?New employment assistance? Personal counseling?Job contacts?

How do managers evaluate the need for …New employment assistance ?Personal counseling?Job contacts?

To obtain ratings and rankings of the various outplacement services

RESEARCH DESIGN

Meaning of research designA research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedureConceptual structure within which research is conducted.Blueprint for the collection, measurement and analysis of data

Research can be divided into…Sampling design-method of selecting itemsObservational design – conditions under which the observations are to be madeStatistical design – question of how many items are to be observed and how the data gathered are to be analyzedOperational design – techniques by which the procedures specified in the sampling , statistical and obs designs can be carried out.

Research design must contain….A clear statement of the research problemProcedures and techniques to be used for gathering informationPopulation to be studiedMethods to be used in processing and analyzing data

Important concepts relating to research design…

Dependent and independent variablesExtraneous variables-independent variable that are not related to the purpose of the study but may affect the dependent variable .(experimental error- effect of extraneous var. on dep. var.)

Contd..Control- minimize the effect of extraneous variablesConfounded relationshipResearch hypothesisExperimental and non-experimental hypothesis testing research(indep. variable is manipulated or not)

Contd…Experimental and control groupsTreatmentsExperiment (absolute or comparitive)Experimental units

Questions???Different steps involved in a research processSignificance of researchTypes of research and difference bet themObjectives of researchCriteria of good research

Techniques of defining a research problemComponents for research problemNecessity of defining a research problemExperience survey and pilot surveyRephrasing the research problem

Meaning and significance of a research designComponents of research design