CONTENTS

Unit No. Title Page No.

1. Introduction to Research 01
2. Research Problem and Formulation of Research Hypotheses 36
3. Research Design 76
4. Business Research Methods 89
5. Attitude Measurement and Scaling 103
6. Questionnaire Design 129
7. Sampling and Data Processing 147
8. Univariate and Bivariate Analysis of Data 162
9. Testing of hypotheses, Chi-Square analysis & Analysis of variance
(Anova) 178
10. Research Report 204


PROGRAM : MMS

Semester : II
Title of the Subject / course : Business Research Methods
Course Code :
Credits : 4 Duration in Hrs : 40

Learning Objectives
To understand the importance of research and various methods that researcher used to
1 investigate problems
2 Applying Modern Analytical tools for Business Management Decisions
3 To derive strategies from the research
4 To understand the challenges in collecting the data collection and analysis
5 To interpret the data to make meaningful decisions.

Prerequisites if any
Connections with
Subjects in the current or
Future courses

Module
Sr.
Content Activity Learning outcomes
No.
Meaning of research; Types of research-
Exploratory research, Conclusive research;
Introduction to
1 Lecture The process of research; Research
Research
applications in social and business sciences;
Features of a Good research study.
Defining the Research problem; Management
Decision Problem vs Management Research
Research Problem Problem; Problem identification process;
and Formulation of Components of the research problem;
2 Lecture
Research Formulating the research hypothesis- Types of
Hypotheses Research hypothesis; Writing a research
proposal- Contents of a research proposal and
types of research proposals.
Meaning of Research Designs; Nature and
Classification of Research Designs;
Exploratory Research Designs: Secondary
Resource analysis, Case study Method, Expert
3 Research Design Lecture opinion survey, Focus group discussions;
Descriptive Research Designs: Cross-
sectional studies and Longitudinal studies;
Experimental Designs, Errors affecting
Research Design
Classification of Data; Secondary Data: Uses,
Advantages, Disadvantages, Types and
Primary and
4 Field Work sources; Primary Data Collection:
Secondary Data
Observation method, Focus Group
Discussion, Personal Interview method
Sr.
Content Activity Learning outcomes
No.
Types of Measurement Scales; Attitude;
Attitude Classification of Scales: Single item vs
5 Measurement and Lecture Multiple Item scale, Comparative vs Non-
Scaling Comparative scales, Measurement Error,
Criteria for Good Measurement
Questionnaire method; Types of
Questionnaire Questionnaires; Process of Questionnaire
6 Lecture
Design Designing; Advantages and Disadvantages of
Questionnaire Method
Sampling concepts- Sample vs Census,
Sampling vs Non Sampling error; Sampling
Design- Probability and Non Probability
Sampling design; Determination of Sample
size- Sample size for estimating population
Sampling and Data Case Study and mean, Determination of sample size for
7
Processing SPSS / Excel estimating the population proportion
Data Editing- Field Editing, Centralized in
house editing; Coding- Coding Closed ended
structured Questions, Coding open ended
structured Questions; Classification and
Tabulation of Data.
Descriptive vs Inferential Analysis,
Descriptive Analysis of Univariate data-
Analysis of Nominal scale data with only one
Univariate and possible response, Analysis of Nominal scale
8 Bivariate Analysis SPSS Lab / Excel data with multiple category responses,
of Data Analysis of Ordinal Scaled Questions,
Measures of Central Tendency, Measures of
Dispersion; Descriptive Analysis of Bivariate
data
Concepts in Testing of Hypothesis – Steps in
testing of hypothesis, Test Statistic for testing
hypothesis about population mean; Tests
concerning Means- the case of single
Testing of Analyzing
9 population; Tests for Difference between two
Hypotheses Primary Data
population means; Tests concerning
population proportion- the case of single
population; Tests for difference between two
population proportions.
Chi square test for the Goodness of Fit; Chi
Analyzing square test for the independence of variables;
10 Chi-square Analysis
Primary Data Chi square test for the equality of more than
two population proportions
Lecture and Completely randomized design in a one-way
Analysis of
11 Analyzing ANOVA; Randomized block design in two
Variance
Primary Data way ANOVA; Factorial design
Types of research reports – Brief reports and
Research Report
Detailed reports; Report writing: Structure of
12 Writing and Ethics Lecture
the research report- Preliminary section, Main
in research
report, Interpretations of Results and
Sr.
Content Activity Learning outcomes
No.
Suggested Recommendations; Report writing:
Formulation rules for writing the report:
Guidelines for presenting tabular data,
Guidelines for visual Representations.
Meaning of Research Ethics; Clients Ethical
code; Researchers Ethical code; Ethical Codes
related to respondents; Responsibility of
ethics in research
Presentation /
13 PowerPoint
Report

Text books
1 Business Research Methods – Cooper Schindler
2 Research Methodology Methods & Techniques – C.R.Kothari
3 Statistics for Management – Richard L Levin

Reference books
1 D. K. Bhattacharya: Research Methodology (Excel)
P. C. Tripathy: A text book of Research Methodology in Social Science(Sultan
2 Chand)
3 Saunder: Research Methods for business students (Pearson)
4 Marketing Research –Hair, Bush, Ortinau (2nd edition Tata McGraw Hill)
Business Research Methods – Alan Bryman& Emma Bell – Oxford
5 Publications
6 Business Research Methods – Naval Bajpai – Pearson Publications

Assessment
Internal 40%
Semester end 60%
 1
INTRODUCTION TO RESEARCH
Unit Structure
1.0 Objectives
1.1 Introduction
1.2 Meaning and Definition of Research
1.3 Objectives of Research
1.4 Characteristics of Research
1.5 Scope of Research in Business
1.6 Types of Research
1.6.1 On the Basis of Application
1.6.2 On the Basis of Objectives
1.6.3 On the Basis of Extent of Theory
1.6.4 On the Basis of Time Dimension
1.6.5 On the Basis of Enquiry Made
1.6.6 Other Types of Research
1.7 Approaches to Research
1.7.1 Qualitative Approach
1.7.2 Quantitative Approach
1.8 The Process of Research
1.9 Research Applications in Business
1.10 Research Applications in Social Sciences
1.11 Features of a Good Research Study
1.12 Self-Assessment Questions
1.13 Summary
1.14 Key Words
1.15 Answers to Self-Assessment Questions

1
Business Research Methods 1.0 OBJECTIVES
After studying this module, you should be able to:

 Understand the meaning and nature of research

 Define the purpose of research
 Assess the different types of research
 Know about the various research approaches
 Generalize the Process of research
 Understand the significance of research in business decision making
 Know about the criteria of good research

1.1 INTRODUCTION
In the modern complex world, society today is faced with varied social,
economic & political problems. These problems need systematic,
intelligent and practical solutions. Problem solving is technical process
and requires the accumulation of new knowledge. The quest for
knowledge is a never ending process and in its simplest form this process
has been called as ‘research’. In other words, research is a systematic
effort of gathering analysis & interpretation of problems confronted by
humanity. The world has evolved as a result of consistent efforts to
discover new things. In the current times, research has become an
organized and specialized field. Newer methods to conduct research have
come up. However, whatever be the field in which research is being
carried out, the research methodology parameters remain the same, even if
the objectives and the population to which the problem is being addressed
is different. Certain basic rules, often referred to as standard operating
procedures, are common to all fields, although they can be easily
developed for scientific research and are fuzzy for social science research.
Differences exist between one subject and other, but there is also
interdependence. It has been seen that there are inputs of theoretical
considerations in empirical studies and in a theoretical study; we look for
empirical evidences to support our theory. Understanding research
concepts and the methods used in it is important before any researcher
picks up the initiative of undertaking research. Research is a thinking
process and scientific method of studying a problem and finding solution.
It is an in-depth analysis based on reflective thinking. The current module
provides an insight into the basic research concepts.

1.2 MEANING AND DEFINITION OF RESEARCH

From a novice's point of view, research can be defined as the search of
knowledge. Oxford dictionary defines research as ‘the systematic
investigation and study of materials and sources in order to establish facts
and reach new conclusions’. Research is pursued in almost all the
professions. More than a set of skills, it is a critical way of observing,
examining, thinking, questioning and formulating principles that hold true
at least for the given space. Almost all professions affirm the need of
research either for the advancement of business or for the enlightenment
2
of knowledge. Whatever profession we are in, we ask ourselves a lot of Introduction to Research
questions for finding new knowledge and ideas. For example, consider
that you are running a retail store; there are a lot of questions that may
help you in increasing your business:

 How many customers do I can handle daily?

 Which are the most purchased groceries?

 Which groceries combination is more popular?

 What time does the customers hit to maximum at store?

 How the customers rate our store?

 What is the average money a customer spends on a purchase?

Just by finding answers of these, one can always say that, a very valid
investigation has been done for the domain and the results. This is a very
raw example of research that we practice in everyday life. Essentially
speaking research involves a well-developed plan, a systematic approach
to developing new theories of finding solutions to various problems.
Redman and Mory defined research as ‘a systematized effort to gain new
knowledge’. Some professionals consider research as a movement, a
movement from the known to the unknown. It is actually a voyage of
discovery with pleasure and satisfaction. While considering research as an
academic activity, it involves a lot of steps such as problem definition, to
solve the problem, literature review, data collections, analysis, drawing
inference, making hypothesis and arriving at a solution. Research is not
just gathering of information from books and other sources. The
transportation of knowledge from one form to another will neither
constitute a good research. In short and simple, we can define research as
‘the systematic process of collecting and analysing information (data)in
order to increase our understanding of the phenomenon about which we
are concerned or interested’.
Zina O' Leary defined research as a 'creative and strategic thinking
process that involves constantly assessing, reassessing and making
decisions about the best possible means for obtaining trustworthy
information, carrying out appropriate analysis and tracing credible
solutions.'
Thus, research is actually a journey of discovery. Humans since aeons
have been trying to discover better methods of doing routine things, a
better explanation for why things happen in a particular manner and better
answers to recurring problems. The technique which is employed in the
search of this knowledge is termed as ‘research’.
Research provides us with right kind of information that helps us in
successfully dealing with problems. Clifford Woody has very
comprehensively defined research as 'a method for the discovery of truth
which is really a method of critical thinking. It comprises of defining and
3
Business Research Methods redefining problems, formulating hypothesis or suggested solutions;
collecting and organizing and evaluating data; making deductions and
reaching conclusions; and at last, carefully testing the conclusions to
determine whether they fit the formulating hypothesis.' It can be
concluded that research involves:
(i) A clear definition of the problem
(ii) Formulation of hypothesis
(iii) Collection and analysis of data and
(iv) Relating the findings to existing theories and earlier formulated
hypothesis.
Thus, research is re-search, i.e. a revisit on the earlier findings with the
intention of correlating them with newly discovered facts. The
Encyclopedia of Social Sciences has described research as a ‘critical and
exhaustive investigation or experimentation having as its aim the revision
of accepted conclusions in the light of newly discovered facts."

1.3 OBJECTIVES OF RESEARCH

The objective of research is to discover answers to questions through the
application of scientific procedure. The main aim of research is to find out
the truth which is hidden and which has not been discovered as yet. It is
primarily concerned with production of knowledge. Though each research
study has its own specific purpose, some general objectives of research
below:
1. To Explore: Research can be carried out with the purpose of
gaining familiarity with a particular topic or to gain insight into
unexplored areas. Such a research is termed as exploratory or formative
research. It is often carried out before formulating a hypothesis e.g. a
domestic company may think of setting up its manufacturing operations
abroad. This kind of investment is new to the company and the initial
research conducted to explore the possibility of this new idea can be
termed as exploratory research.

2. To Describe: Quite often a research can be carried out with the

objective of describing a particular situation, event or an individual e.g. a
study can be carried out to study the voting pattern in a particular state on
the basis of gender, economic status, religion etc. as observed in the
previous election. Such researches are termed as descriptive studies.
Since these studies are about events that have already taken place, these
studies are also called as ex-post facto studies.

3. To Diagnose: When a study is carried out with the objective of

finding out how frequently a particular event is associated with another
event, it is termed as diagnostic study e.g. a fast food chain has conducted
a research to find out the feasibility of setting up an outlet in a multiplex.
4
The chief objective of this study is to find out that how often people eat Introduction to Research
their meal outside when planning to watch a movie. Doctors frequently
employ diagnostic methods to discover what it is that ails the patient.
Numerous questions are asked from the patient and through symptomatic
and clinical investigation, the doctors can then declare a diagnosis. Such
studies are called as diagnostic studies.

4. To Establish Causal Relationship: A research can be done with

the objective of finding out the causal relationship between the dependent
variables with independent variables. Such research are called as
hypothesis testing research e.g. a research carried out so establish the
relationship between polio vaccine (independent variable) and its
effectiveness in controlling the occurrence of polio (dependent variable) is
a hypothesis testing research.

In simple words, the objectives of research may be:

 To identify and find solutions to the problems (e.g. "Why is that

demand for a product is falling"? "Why is there a business fluctuation
once in three years"?)

 To help making decisions (e.g. should we maintain the advertising

budget same as last year?)

 To develop new concepts (e.g. Customer Relationship Management,

Horizontal Marketing, Multi-Level Marketing, e-tailing etc.)

 To find alternate strategies (e.g. should we follow pull strategy or push

strategy to promote the product.)

1.4 CHARACTERISTICS OF RESEARCH

An understanding of the meaning of research puts us in a position to list
the characteristics of research. From the above explanations, the following
characteristics of research can be summarized:
1. Research is directed toward the solution of a problem.

2. Research is purposive i.e. it deals with a well-defined significant

problem.

3. Research is based upon observable experience or empirical evidences.

4. A research gathers new knowledge and brings to the forefront hitherto

unexplored and unexplained phenomenon.

5. Research involves collection of primary data from first hand sources

or involves use of existing data for a new purpose.

5
Business Research Methods 6. Research activities are carefully detailed and clearly outlined through
a research design. These activities are defined by carefully designed
procedures and analysis tools.

7. Research emphasizes the development of generalizations, principles,

or theories that will be helpful in predicting future occurrences.

8. Research requires a degree of expertise and skill. A research worker is

expected to be knowledgeable about the intricacies involved in
carrying out a research.

9. Research strives to be objective and logical, applying every possible

test to validate the procedures employed the data collected and the
conclusions reached. The findings should be free from bias and the
results should be carefully verified.

10. Every process, term and tool used in the research should be carefully
documented and reported.

11. The research should target towards the discovery of general principles
or theories which can find application to a wide range of problems in
the present and future context.

1.5 SCOPE OF RESEARCH IN BUSINESS

Business research refers to any type of research done when starting and
inaugurating any type of business organisation. Simply speaking, the
application of research, its tools and techniques in business decision
making constitutes business research. According to Zikmund, “Business
research is a management tool that companies use to reduce uncertainty. It
is a manager’s source of information about organisational and
environmental conditions, and covers topics ranging from long-range
planning to the most ephemeral tactical decision”. Looking upon this, the
scope of business research includes the following areas. However, the list
given below is not exclusive rather indicative.
1. Business Environment: The marketing activities are influenced by
several internal and external environments. Internal environments include
price, promotion, product and place (distribution), whereas the external
environments include economic, sociological, political, legal and
government motives.

2. Consumption Pattern: The pattern of consumption is to be

assessed by the management. The study of buyers' behaviour, attitudes and
capacity to purchase is very important in research. The purchasing power
of a consumer depends upon his disposable personal income. Thus, the
total purchasing power of a country or geographical area can be assessed
by the disposable income of the place. The research reveals all the factors
which influence the pattern of consumption.

6
3. Controlling: Research is used as a control technique of Introduction to Research
management to find out the weaknesses and shortcoming of the
management decisions to re-orient the planning and performance
techniques.

4. Decision-Making: Research is useful for taking management

decisions. It provides necessary information and data in analysed and
processed forms for making decisions in various business areas. With
advanced technology, higher production functions and increasing
complexities in market, the research has become an indispensable tool for
taking appropriate decisions.

5. Finance: Research in finance helps financial experts and those other

individuals involved to study how the financial industry is affected by
market changes and trending. The research on finance and financial
management mainly revolved around estimating financial requirement,
financial management, deciding capital structure, selecting a source of
finance, selecting a pattern of investment, proper cash management,
implementing financial controls, proper use of surplus etc.

6. Growing Complex Markets: The advancement of science and

technology and the standard of living of consumers necessitate closer
touch with the growing markets. The size and specialisation within the
business unit and the intervention of numerous middlemen between the
manufacturer and customers created a wide communication gap. The
widening gap requires marketing research to fill up the communication
gap between the consumer and the producer.

7. Human Resources Management: Research on HRM activities

provides an understanding of what does work, what does not work, what
needs change, the nature and the extent of change. The human resource
research seeks to discover the basic relationships which may lead to
improved personnel decision-making in such areas as turnover,
absenteeism, compensation levels and structure, job satisfaction, employee
morale, assessment of managerial potential, training effectiveness,
grievance handling, labour relations and collective bargaining.

8. Management Planning: Research is used for management

planning. It deals with business opportunities, i.e. those opportunities
which are viable to be exploited by management. Thus, management can
assess the resources that will be useful for the business.

9. Marketing Strategy: Marketing management has to lay down

appropriate marketing strategies to meet competition, to pursue growth in
the market and to attain organisational objectives. The policies and
programmes related to pricing, distribution, sales promotion, product etc.
can be made with proper research.

7
Business Research Methods 10. Problem-Solving: Starting from problem identification to
formulation of alternative solutions, and evaluating the alternatives in
every area of management, is the problem-solving action of research.
Problem-solving research focuses on the short-range and long-range
decisions that must be taken with respect to the elements of the business
viz. marketing, HRM, production, finance etc. It can help managements
bring about prompt adjustment and innovations in the above areas of
business.

11. Production Management: Research helps large-scale production

by providing suitable decisions to be undertaken by the producers to
exploit the existing production resources to meet the growing markets.
The resources of production and market potentials are properly assessed
by research. The research performs an important function in product
development, diversification, introducing a new product, product
improvement, process technologies, choosing a site, new investment etc.

1.6 TYPES OF RESEARCH

This part specifically focuses on the types of research. Research can be
classified from various perspectives. A detailed description of the same
can be had from the figure below and the description that follows:

1.6.1. On the Basis of Application

On the basis of application, research is of two types:
i) Pure/ Basic/ Fundamental Research: Developing scientific theories or
basic principles are called 'pure' or 'basic' or 'fundamental' research. This
research is concerned with quest for

knowing more about the phenomenon without concern for its practical use
and also with developing and testing hypotheses and theories. Pure
research takes place to explore a particular concept, or issue, without
regards for a specific problem, and may be carry out to simply gain a
better understanding of the overall concept. It is said, there is nothing as
practical as a good theory. It is conducted to satisfy any curiosity such as:

8
What makes things happen? Introduction to Research

Why society changes, and

Why social relations are in a certain way.
In fact, it is the source of most new theories, principles, and ideas. To
sum-up, basic research is purely theoretical to increase our understanding
of certain phenomena or behaviour but does not seek to solve any existing
problem. It is essentially positive and not normative. This may take the
form of the discovery of totally new idea, invention and reflection where
an existing theory is re-examined possibly in a different social context.
ii) Applied Research: It is also termed as practical, need based or action
research. The objective of this research is to find the solutions to problems
that are faced by government, society or the business. Applied Research,
thus, is more concerned with actual life. It also suggests remedial
measures to alleviate various types of problems. This research is concern
with search for ways of using scientific knowledge to solve practical
problems. The findings become basis of framing programme and policies,
based on principles of pure research. According to Horton and Hunt, this
research is an investigation for ways of using scientific knowledge to
solve practical problems. This type of research is conducted on
interdisciplinary basis also.
Examples include like evaluating the impact of a training programme on
employee performance, examining consumer response to direct marketing
programmes. Although the purpose of these two research forms varies,
there is not much difference in the research methods and tools used for
their conduct. In the present world situation, more emphasis is being given
to applied research to solve problems arising out of various environmental
changes.
1.6.2. On the Basis of Objectives
On the basis of fundamental objective, research is designed in following
ways:
(i) Exploratory Research: This type of research is carried out at the very
beginning when the problem is not clear or is vague. In exploratory
research, all possible reasons which are very obvious are eliminated,
thereby directing the research to proceed further with limited options. The
main aim of exploratory studies (also known as formulative research) is
to gather initial information which helps to define problems and
recommend hypothesis. It often relies on secondary research such as
reviewing available literature, or qualitative approaches such as informal
discussions with consumers, employees, management or competitors, and
more formal approaches through in-depth interviews, focus groups,
projective methods, case studies or pilot studies. It is important to bear in
mind that it can mainly be conducted when researchers lack clear idea of
the problem. The outcomes of this research are not generally useful for
decision-making, but they can provide major insight into a given situation.
9
Business Research Methods (ii) Descriptive Research: Descriptive research, also known as statistical
research, describes data and characteristics about the population or
phenomenon being studied. Descriptive research answers the questions
who, what, where, when, and how. The description is used for
frequencies, averages, and other statistical calculations. Often the best
approach, prior to writing descriptive research, is to conduct a survey
investigation. In short descriptive research deals with everything that can
be counted and studied. But there are always restrictions to that. The
research must have an impact to the lives of the people around the
researcher. This research is applicable to problem which specifies certain
criteria and data is clearly available for accurate objectives.
(iii) Causal/Experimental Research: It is commonly used in sciences
such as sociology and psychology, physics, chemistry, biology, medicine,
etc. It is commonly used in sciences such as sociology and psychology,
physics, chemistry, biology, medicine, etc. However, it may also be
carried out in social sciences if such research enables us to quantify the
findings, to apply the statistical and mathematical tools and to measure the
results thus quantified. It is also classified under conclusive research.
In many problems, there are many variables involved or influential. It is
not always possible or feasible to study all variables simultaneously, so to
study limited variables this type of research is conducted. Here, one
variable (under study) keep open whereas other variables are kept constant
and then open variable effect is studied. The relationship between
dependent and independent variables is observed and describe in
connecting hypothesis. The variable which is influenced is known as
dependent and the variable which influence other is known as independent
variable. For example, effect of investment decision (independent) on
investment returns (dependent), effect of advertisement (independent) on
sales (dependent). Causal research is used to obtain evidence of cause-
and-effect (causal) relationships.

1.6.3. On the Basis of Extent of Theory

On the basis of extent of theory, research is of two types:
(i) Theoretical Research: Theoretical research generally uses the findings
from existing theory and explanations to develop new ideas. These new
ideas are not tested through collecting evidence in the form of primary
data. Theoretical research is held to be a classical way of adding
something of value to the body of knowledge. One of the primary roles of
theoretical research is to re-work already established ideas in order to
improve insights into the subject matter. Such improvements could well-
constitute adding something of value to the body of knowledge. A
researcher who develops a theory through visiting a library and
developing their own explanation through reading existing work will be
undertaking theoretical research.
(ii) Empirical Research: This is a data based research where we collect
primary data and then data is further analysed and used for testing
10
hypothesis. It is a way of gaining knowledge by means of direct Introduction to Research
observation or experience. Empirical evidence (the record of one's direct
observations or experiences) can be analysed quantitatively or
qualitatively. It is based on observation and experience more than upon
theory and abstraction. Empirical means based upon observation or
measurement rather than theoretical reasoning. Pharmaceutical companies
use empirical research to try out a specific drug on controlled groups or
random groups to study the effect and cause. This way they prove certain
theories they had proposed for the specific drug. Such research is not just
useful in science but in many other fields like history, social sciences,
business, etc.

1.6.4. On the Basis of Time Dimension

On the basis of time dimension, research can be of two types:
(i) Cross-Sectional Research: Cross-sectional study is popular in the
field of business and marketing research. Cross-sectional research design
involves the collection of information from a sample of a population at
only one point of time. Cross-sectional research is usually the simplest and
least costly alternative. In this study, various segments of the population
are sampled so that the relationship among the variables may be
investigated by cross tabulation. Sample surveys are cross-sectional
studies in which the samples happen to be a representative of the
population. It may reveal how these samples are represented in a cross-
section of a population. The cross-sectional study generally involves large
samples from the population; hence, they are sometimes referred as
“sample surveys.”Cross-sectional research can be exploratory,
descriptive, or explanatory but it is most consistent with a descriptive
approach to research. “What is the effectiveness of an advertisement
campaign for an air conditioner?” is an example of cross-sectional study.
ii) Longitudinal Research: Longitudinal study involves survey of the
same population over a period of time. It is usually more complex and
costly than cross-sectional research, but it is also more powerful,
especially when researchers seek answers to questions about social
change. In this study, the sample remains the same over a period of time.
“How have consumers changed their opinion about the performance of air
conditioner as compared with that last summer?” is an example of
longitudinal study. Longitudinal surveys usually combine both extensive
(quantitative) and intensive (qualitative) approaches. Descriptive and
explanatory researchers use longitudinal approaches. They consider three
types of longitudinal research which can be described as follows:
(a) Time-Series Research: A time series design collects data on the same
variable at regular intervals (weeks, months, years, etc.) in the form of
aggregate measures of a population. Measurements are taken on each
variable over two or more distinct time periods. This allows the researcher
to measure change in variables over time. For example, the Consumer
Price Index (CPI), unemployment rates, poverty rates, etc. Time series
designs are useful for establishing a baseline measure, describing changes
11
Business Research Methods over time, keeping track of trends, and forecasting future (short-term)
trends. Time series data are nearly always presented in the form of a chart
or graph: The horizontal (or x) axis is divided into time intervals, and the
vertical (y) axis shows the values of the dependent variable as they
fluctuate over time.
(b) Panel Study: It is a powerful type of longitudinal research. A panel is
a sample of respondents who have agreed to provide responses over a
specified time interval. In a panel study, the researcher observes exactly
the same people, group, or organisation across time periods. Panels are
also of two types: traditional panels and omnibus panels. In case of
traditional panels, same questions are asked to the respondents on each
panel measurement. For example, firms are interested in knowing the
change in attitude, opinion, feeling, or emotion of the customers about a
particular product over a specific time interval. In the case of omnibus
panels, different set of questions are asked to the respondents on each
panel measurement. Hence, different set of information is obtained using
omnibus panels. Use of panels is based on the objective of the research
and the nature of the problem.
(c) Cohort Study: A cohort is a group of respondents who experiences
the same events within the same time interval. The word “cohort” means a
group of people. It is similar to the panel study, but rather than observing
the exact same people, a category of people who share a similar life
experience in a specified time period is studied. Cohort analysis is
‘explicitly macro analytic’, which means researchers examine the category
as a whole for important features. In cohort study, the individuals
examined over time may not be the same but they should be representative
of a particular group (or cohort) of individuals who have shared a common
experience. For example, cohort analysis used to predict changes in voter
opinions during the polls.
Cohort studies can be forward-looking of backward-looking. A forward-
looking cohort study is also known as a prospective cohort study.
‘Prospective’ means that it relates to the future. A backward-looking
cohort study is also called as retrospective cohort study. ‘Retrospective’
means that it relates to the past. To carry out prospective cohort studies,
researchers identify a group of people to study and plan the research in
advance, collecting data over time. In retrospective cohort studies,
researchers use data that are already available for a particular group.

1.6.5. On the Basis of Enquiry Made

On the basis of enquiry to be made, research can be of two types:
(i) Quantitative Research/ Structured Approach: It usually involves the
collection and converting of numerical data into numerical form so that
statistical calculations can be done which help in drawing conclusions to
answer a specific research question. Quantitative research is applicable to
phenomena that are measurable so that they can be expressed in terms of
quantity. Objectivity is very vital in quantitative research. Therefore,
12
researchers seek to avoid their own presence, behaviour or attitude Introduction to Research
affecting the results (e.g., by changing the circumstances being studied or
causing participants to behave differently). The aim of quantitative
research is to develop mathematical models, theories related to
phenomenon. Quantitative research is mainly used in social sciences. It
may involve correlation study, ex-post facto study, longitudinal study,
meta-analysis and survey
(ii) Qualitative Research/ Unstructured Approach: Qualitative research
is usually related with the social constructivist concept which emphasizes
the socially constructed nature of reality. This research is designed to find
out how people feel or what they think about a particular subject. The
sequence to data collection and analysis is logical but allows for greater
flexibility in all aspects of the research process. Data is collected in textual
form on the basis of observation and communication with the participants,
e.g., through participant observations, in-depth interviews and focus
groups. The data is not converted into numerical form and is not
statistically analysed. It is more appropriate to explore the nature of a
problem, issue or phenomenon without quantifying it. The prime objective
of such researches is to describe the variation in a phenomenon, situation
or attitude. The qualitative research attempts to answer ‘why’ and ‘how’
aspects of decision-making rather than ‘what’ and ‘when’ aspects.

1.6.6. Other Types of Research

(i) Ex-Post Facto: In this type of research, an examination of relationship
that exists between independent and dependent variable is studied. It is
similar to empirical research. In this method, the researcher has no control
over an independent variable. Ex-post facto literally means ‘from what is
done afterwards’. In this research, a variable ‘A’ is observed. Thereafter,
the researcher tries to find a causal variable ‘B’ which caused ‘A’. It is
quite possible that ‘B’ might not have been caused ‘A’. In this type of
analysis, there is no scope for the researcher to manipulate the variable.
The researcher can only report ‘what has happened’ and ‘what is
happening’. Ex post facto research is the process beginning with a
phenomenon and going backward in time to identify casual factors.
(ii) Historical Research: The name itself indicates the meaning of the
research. Historical study is a study of past records and data in order to
understand the future trends and development of the organisation or
market. There is no direct observation. The research has to depend on the
conclusions or inferences drawn in the past. Historical research is the
systematic collection, critical evaluation, and interpretation of historical
evidence (i.e., data relating to past occurrences). In general, historical
research is undertaken to answer questions about causes, effects, or trends
relating to past events that may shed light on present behaviours or
practices. For example, study of epics like Ramayana and Mahabharata for
TV serial or movie making, biographical research, histories of institutions
and organizations etc.

13
Business Research Methods (iii) Diagnostic Research: It may be said as another name for descriptive
research. This research is conducted to establish whether two or more
variables are associated and their degree of association. In a diagnostic
research, the researcher is trying to evaluate the cause of a specific
problem or phenomenon. This research design is used to understand
more in detail the factors that are creating problems in the company.
Diagnostic research design includes three steps viz. the inception of
the issue, diagnosis of the issue and solution for the issue.
(iv) Case-Study Research: This type of research is concerned with
exploring and analysing the life or functioning of a social or economic
unit, such as a person, a family, a community, an institution, a firm or an.
Industry. The objective of case study method is to examine the factors that
cause the behavioural patterns of a given unit and its relationship with the
environment. A researcher conducting a study using the case study
method attempts to understand the complexity of factors that are operative
within a social or economic unit as an integrated totality.
(iv) Evaluation Research: Evaluation research aims at evaluating
programme that have been implemented or actions that have taken in
order to get an objective. Evaluation means some sort of measurement of
the end-product and impact of an effort in the light of the stated goals for
which the programmed undertaken. There are so many programmes in
which economic gains are not visible, the evaluation of which calls for
special techniques. There are three types of evaluations made in research
namely concurrent evaluation, periodic evaluation, and terminal
evaluation.
(v) Conclusive Research: As the name suggests, conclusive research is
carried out to provide information that is useful in reaching conclusions or
decision-making. The purpose of conclusive research is to provide a
reliable or representative picture of the population through the use of a
valid research instrument. Conclusive research design provides a way to
verify and quantify findings of exploratory studies. Conclusive research
usually involves the application of quantitative methods of data collection
and data analysis. Moreover, conclusive studies tend to be deductive in
nature and research objectives in these types of studies are achieved via
testing hypotheses. Conclusive research can be sub-divided into two major
categories i.e. descriptive or statistical research, and causal research.

1.7APPROACHES TO RESEARCH
Approaches to research consists of making a suitable decision regarding
research components like types of research, measurement and scaling,
development of questionnaire, sample size-determined sampling
techniques and data analysis plan. A research approach can vary
significantly depending on what is to be studied. If it is a scientific
method, it would be appropriate to use similar methods or other scientists
who have attempted the experiment. However, if the research was is in
social sciences, e.g. assessing consumer behaviour, it would be better to

14
carry-out surveys, look into past surveys, etc. The general research Introduction to Research
approach acts as an overall guide for conducting the research work.
There are two major approaches in research literature, i.e., Qualitative
and Quantitative. In a generalized view, we can add logical and
participatory approaches along with aforementioned above.

1.7.1 Qualitative Approach

Qualitative research is a research method used extensively by scientists
and researchers studying human behaviour and habits. Qualitative
methods are used to find and confirm the presence and absence of an
element. Qualitative research is often regarded as a precursor to
quantitative research, in that it is often used to generate 'possible leads and
ideas which can be used to formulate a realistic and testable hypothesis.
This hypothesis can then be comprehensively tested and mathematically
analysed, with standard quantitative research methods. For these reasons,
these qualitative methods are often closely allied with survey design
techniques and individual case studies, as a way to reinforce and evaluate
findings over a broader scale.
One example of a qualitative research design might be a survey
constructed as a precursor to the paper towel experiment. A study
completed before the experiment was performed would reveal which of
the multitude of brands were the most popular. The quantitative/
experiment could then be constructed around only these brands, saving a
lot of time, money and resources. Qualitative research can be further
classified under two types namely:

 Direct Qualitative Research

 Indirect Qualitative Research
In direct qualitative research, in-depth interview is the norm. The group
is prepared with the help of a selected few research participants. This is
more like a brain storming session. The topic is discussed amongst the
focus group with the help of a moderator from amongst the focus group
participants only. Subsequently, the group interview is conducted and a

15
Business Research Methods final report is prepared by the researcher based on the outcomes of the
discussion. For example, in-depth interviews, focus groups, etc.
In indirect qualitative research, the participants are encouraged to come
out with their own versions and understandings about the issue/s being
taken up by the researcher. The respondents are supposed to 'project' their
feelings or attitudes about the situation. For example, word association,
sentence completion, role playing, etc.

1.7.2 Quantitative Approach

The quantitative approach involves the collection of quantitative data,
which are put to rigorous quantitative analysis in a formal and rigid
manner. This approach further includes experimental, inferential, and
simulation approaches to research. They are most commonly used by
physical scientists, in social sciences, education and management. It is the
opposite of qualitative research.
Quantitative experiments use a standard format, with a few minor inter-
disciplinary differences, of generating a hypothesis to be proved or
disproved. This hypothesis must be testable by mathematical and
statistical methods, and is the basis of which the whole experiment is
designed. Quantitative methods are used to measure the degree of an
element already present. A sound quantitative design should only
manipulate one variable at a time, or statistical analysis becomes
cumbersome and open to question. Ideally, the research should be
conducted in a manner that allows others to repeat the experiment and
obtain similar results. A common perception of quantitative research is
that the emphasis is on proof rather than discovery.
Quantitative experiments are useful for testing the results gained by a
series of qualitative experiments, leading to a final answer, and a
narrowing down of possible directions for follow-up research.

There is one more approach other than these two and it is mixed approach
as for any research it is very difficult to apply exclusively only one
approach. Many number of times objectives and effectiveness of research is
more important than the approach and so combination of approaches is the
best way to adopt.

16
 Introduction to Research
1.8 THE PROCESS OF RESEARCH
According to Horton and Hunt, the scientific method of research
comprises the following basic steps:
(i) Defining the problem
(ii) Review of literature
(iii) Formulation of hypothesis
(iv) Developing a research design
(v) Collection of data
(vi) Analysis of data
(vii) Drawing conclusions
(viii) Replicate the study for generalisations
These steps give us an idea of the essential steps involved in conducting
research. However, there is no rigid sequence of research process steps.
Depending on each situation, certain steps can be skipped, can he repeated
or circumvented. However, inspire of all these variations, it is possible for
us to develop a sequence of research process. Although each of the steps
discussed here are studied in greater detail in subsequent modules, a brief
overview can be provided at this stage. Figure given below shows the
detailed sequence of research process. Each of these steps is the natural
outcome of the previous steps, but these steps are not mutually exclusive.
It is possible for instance to develop our research objectives and working
hypothesis simultaneously.
The various steps are:

Step 1: Discover the Problem Area

To start a research, we first of all need to discover the problem which
demands solution. The best way to identify the problem would be to look
for an unresolved query, a gap in the existing knowledge or an unfulfilled
need within the chosen subject. Although the world is filled with unsolved
problems, yet not every problem is suitable for research. Researcher
should take care that the problem should be one which can be clearly
identified and formulated. Further, while choosing the research area the
researcher should look into the availability of information relevant to the
topic. Mere availability is not enough, it should also be accessible.
Sometimes, the cost of obtaining the information being too high, it might
not be accessible to the researcher.

17
Business Research Methods

Step 2: Review of Literature

The next step is to become familiar with the problem and formulate it
clearly. Literature review involves a comprehensive review of published
and unpublished work from the secondary sources of data available in the
relevant area of study. The researcher at this stage may review all the
available conceptual literature concerning the theories and concepts
related to the problem as well as the empirical literature comprising of
studies done earlier and bearing similarity to the problem under study.
Literature review helps the researcher in two ways; firstly, it helps him in
specifying his research problem in a meaningful context, secondly, it
would provide him with an insight into the methods and techniques
adopted for handling such problems. The researcher can access
bibliographic databases which display only the bibliographic citations like
18
name of the author, title of the book, publisher, year, volume and page Introduction to Research
number. He can also use abstract database which along with bibliographic
citations also provides him with an abstract of the article. The researcher
can also use full text databases which contain the entire text.

Step 3: Problem Formulation and Definition

Initially, the focus of the problem is not clearly defined. However, after
the literature review, the researcher is now in a position to formulate his
problem clearly. In the words of Albert Einstein, "The formulation of a
problem is far more essential than its solution, which may be merely a
matter of mathematical or experimental skill". A problem well formulated
will alone yield fruitful results. It is a clear, precise, and concise statement
of the matter that is to be investigated. The problem statement is a fact
oriented information gathering question. The objectives of the study at this
stage are clearly developed. While problem is being formulated, the
following should be taken into account:

 Determine the objective of the study

 Consider various environment factors
 Nature of the problem
 State the alternative

Step 4: Developing a Working Hypothesis

A hypothesis is a tentative assumption regarding the solution to the
problem under study. The hypothesis is the focal point around which the
future research efforts will be directed. The kind of data to be collected,
the tools of analysis are influenced by the hypothesis. The hypothesis is a
predictive statement which is made in the light, of the available facts
relating to the problem under study. For example, a study conducted to
find the amount of research investment being done by the companies will
have the following hypothesis:
Ho: Companies invest 1% of their sales revenue in research activities.
H1: Companies invest less than 1% of their sales revenue in research
activities.
The Ho is called as the null hypothesis which assumes there is no
difference between the population parameter and the sample mean and the
H1 is called as the alternative hypothesis which presents the alternative
solution. A hypothesis thus presents a relationship between the different
variables. In case of social research relating to human behaviour, the
hypothesis helps us in making a prediction about the population
parameter.
Step 5: Research Proposal
A research proposal is a brief summary outlining the objectives of study
and the modus operandi of conducting the research. In case of a thesis, the
research proposals are in the form of a synopsis stating the research
objectives, the proposed methodology of research, benefits of study along
19
Business Research Methods with a detailed bibliography. In case of business or government
organizations, the research proposal, in addition to the above information,
will contain information about the researcher's qualification, the time and
cost schedules, the resources and special facilities required during
research. Essentially, they contain an executive summary, right in the
beginning stating the objective of the study and benefit derived thereon.
Research proposal is very important and should be prepared carefully
especially when it is to be reviewed by the concerned authorities for
approval to conduct further research.

Step 6: Research Design

After approval of proposal, the next step is to work out the research
design. Research design outlines the conditions for collection and analysis
of data. The what, when, where, how much and the method of data
collection are detailed in the research design. It will specifically contain
information about:
(a) The Sampling Design
(b) Data Collection Design
(c) Instrument Design
(a) The Sampling Design: A sample design is a definite plan determined
before any data is actually collected for obtaining a sample from a given
population. If a research involves the study of each and every unit of the
population, it is termed as a census survey. However, it is generally not
feasible to conduct a census survey, especially if the universe of the study
is very vast. E.g. TRPs of TV programmes are developed on a sample
basis rather than covering all the households of an area. A sampling
design will include a decision on the sampling unit, the sample size and
the sampling method.
'Sampling unit' is the most elementary unit which would be a part of the
study e.g. in a survey on newspaper readership pattern, a single household
comprising of all the members of the household can be regarded as a
sampling unit..
Next, the decision on ‘sample size' is taken. The size depends on factors
like the availability of time and funds to the researcher, the ability of the
researcher, the size of the population and the nature of the population. The
important thing to remember is that the sample size should be such as to
adequately represent the population.
Finally, a decision on the ‘sampling method’ is to be taken. A researcher
can use a non-probability method or a probability method of sampling.
Non-probability method of selecting a sample involves an element of
bias. The probability of a unit being a part of the sample is not known.
Under this method, one can adopt various methods like convenience
sampling (easily accessible), purposive sampling (specific people for
purpose), judgment sampling (to choose for best data) and quota sampling.
20
Probability method of sampling involves giving every member a known Introduction to Research
and unbiased chance of being a part of the sample. Few probability
methods are simple random sampling, stratified sampling, cluster
sampling, area sampling, and systematic sampling.
(b) Data Collection Design: The method of gathering the data is planned
here. The data can be collected through an experiment conducted in
controlled settings or it can he conducted through field survey. The survey
can be a simple one involving data collection from one source or it could
involve areas spread all over the world. Hence, a well-planned data
collection design becomes necessary. Briefly speaking, some of the data
collection techniques available to a researcher are:
(i) Questionnaire: A set of questions pertaining to the topic under
study are compiled and the questionnaire is then mailed to the respondent
through mail. This method of data collection is particularly used in
situations where a large number of respondents are to be covered and they
are spread over a wide area.

(ii) Interview: An interview method involves a direct interaction

between the respondent and the researcher/field workers. The interview
can be a physical interview where the researcher personally asks questions
from the respondent or it can be a telephonic or virtual interview. The
telephonic or virtual method is adopted where the respondents are spread
over a wide area and time available is very less. An important thing to
remember is that while conducting an interview the researcher uses an
interview schedule which is like a questionnaire.

(iii) Observation: Observation involves collecting data visually and

recording the event. Observation besides visual aspect also involves
listening, smelling and touching. All behavioural activities as well as non-
behavioural activities like physical condition analysis, processes, and
records can be analysed through observation. An observation also involves
the use of observation schedules which contains a list of all the items that
are to be observed.

(c) Instrument Design: Instrument refers to the questionnaire or the

schedule that the researcher would use to collect data. The researcher
while designing the questionnaire must think in terms of following issues:

(i) Type of Data: It determines whether the data will be collected in a

nominal, ordinal, interval or ratio form. A nominal data has no order,
distance or origin, ordinal data has an order but no distance and origin, an
interval data has order and distance but no origin and a ratio data has
order, distance as well as a unique origin.

(ii) Communication Approach: Before designing the instrument the

researcher has to decide on how to collect the data i.e. through mailed
questionnaire, interview or observation.

21
Business Research Methods (iii) Question Structure: This decides the type of questions and their
order. The instrument can be completely direct structured, indirect
unstructured questionnaire or combination of these two approaches.

(iv) Question Wording: It should be the endeavour of every researcher

to have questions with simple words leaving no scope for ambiguity. Long
questions are to be avoided and the wording should not be biased.

After finalizing instrument, it will now be designed and subject it to pilot

testing. Pilot testing detects the weakness in the design and contents of the
instrument. It involves selecting a small sample from the target population
and simulating the procedures for data collection that have been designed.

Step 7: Data Collection

From this stage, the researcher moves ahead to data gathering stage. This
involves sending questionnaires to respondents, training field workers in
interview and observation methods. A careful control over the data
collection process is maintained. Respondents who have remained
incommunicado in the first round of communication are once again
contacted. The basic aim in this stage is that the data is collected in the
correct form and within the specified schedules.

Step 8: Analysis of Data

The data gathered in the previous step does not have any meaning until it
has undergone for data analysis. Processing of this raw data will yield
some kind of relevant information. The raw data when it is aggregated,
organized and analysed yields us some information which helps us in
decision making. Data analysis is concerned with reducing the bulk of
accumulated data to a manageable size. Generally, it involves the
following procedures:
(a) Coding: Under this process, the various responses of the respondents
are coded using symbols/ legends e.g. respondents can be classified in
term of education using symbol of L (Literate) or IL (Illiterate). The basic
purpose of coding is to group the responses in well-defined categories
which then become easy to tabulate.
(b) Editing: The next step is the editing of responses. Many times the
response given by the respondent is either incomplete, incomprehensible
or is written in short hand. Editing removes ambiguities regarding
responses, shunts out the invalid responses and thus improves the quality
of data for statistical analysis.
(c) Tabulation: It is the process of putting the classified data in the form
of tables. Tables can be one dimensional where data is tabulated in terms
of one feature e.g. sales figure in terms of time. They can be
multidimensional where data is tabulated using two or more features e.g.
sales figure in terms of time, region and product are depicted
simultaneously in a table.

22
(d) Statistical Analysis: In the last stage, the tabulated data is analysed Introduction to Research
using various statistical techniques like averages, percentages, trend
analysis, correlation and regression techniques etc. Statistical analysis
these days has become highly dependent on computers and softwares e.g.
IBM SPSS Statistics, e-views.

Step 9: Hypothesis Testing

After analysing the data, the next step is to test the hypothesis that had
been formulated in the beginning of the research process. There are
various parametric and non-parametric tests like t-test, z-test, f-test,
Kruskal-Wallis test, Wilcoxon-Man-Whitney test etc. The choice of test
selected for hypothesis testing depends on factors like the nature and
objective of research, characteristics of population distribution, the
sampling technique, type of data etc. Hypothesis testing will help a
researcher in establishing the validity of his results. It will help in
determining whether the difference is real or simply an outcome of
random fluctuations.

Step 10: Data Interpretation and Generalisation

In case of no-hypothesis testing research, data interpretation is done with
the intention of seeking explanation for the research results on the basis of
existing theories. The results are interpreted in the light of existing
theories and doors are thrown open for newer explanations and
possibilities for further research. In case of hypothesis testing research,
after the data has been analysed, generalizations are made to builda new
theory. Such generalizations come up with better explanation and new
theories for existing phenomenon and greatly contribute to the existing
data bank.

Step 11: Reporting of Results

The last step is concerned with bringing in public the results of the
research so that the findings can be put to application. The style and
method of reporting would depend on the target audience, the purpose and
the time of reporting the results. Any research report whether it is
presented in a detailed form or in the form of a brief note should
essentially have the following contents.

 The preliminary section containing the title of the report, table of

contents, list of tables, graphs, preface and an executive summary,
which gives briefly the research objectives and The findings and
importance of the study.

 A main text section which contains the problem background, research

objectives, a note on research methodology used, the importance of
conducting the research and the conclusion arrived thereof. A special
mention of the recommendation given by the researcher in light of the
findings made by him should also be included.

23
Business Research Methods  The last section which includes appendices supporting the research
with items like questionnaires and schedules used, glossary of terms
and any other matter which although not a part of the main research
but required in order to support the research can be included.
Thus, this is a brief listing of the steps involved in a research process. A
researcher should keep in mind that these steps are not rigid. Their
sequence can be altered; steps can overlap or jumped depending on the
topic of research.

1.9 RESEARCH APPLICATIONS IN BUSINESS

For effective planning and implementation of business decisions, accurate
information about the internal business environment and the external
business environment is of primary importance. The key objective of any
business research is to provide accurate, relevant and timely information
to the top management, so that they can make effective decisions. The
business managers have the option of taking decisions either intuitively or
randomly, or under the directions of an authority or through rational
analysis. The best approach is to rationally analyse the problem which
requires that the managers should have access to the right kind of
information. This information could have been gathered by others at some
time in the past (secondary data) or it could he gathered by the business
managers themselves specifically with the objective of solving the
problem at hand (primary data). This information is gathered by a
manager through research only.A business manager lives in three time
dimensions:
(a) The past-The objectives achieved and those left unaccomplished are
dealt in this dimension.
(b) The present-There is a perpetual evaluation of what is being currently
accomplished.
(c) The future- An eye on what would be the challenges in future and what
endeavours would be required to handle them.
Research is needed in order to gather data regarding the accomplishments
and lacunae of the past and the performance level in the present times in
order to take strategic decisions relating to future. The process of decision
making is a complex one which can be seen in the diagram below. It can
be broadly classified into following five steps. Each of these steps requires
information that can be collected through research. Let us review these
steps:
Step 1: Defining the problem: Research is needed to understand the
environment in which the organisation is operating e.g. information
gathered on work relationships between the employees may help an
organisation to define the problem of interpersonal conflict.
Step 2: Gathering information: In this stage, information through
research is gathered from individuals, groups or organisations that are
24
affected by the problem. Opinions of experts, top level managers can be Introduction to Research
gathered through interviews to thoroughly understand the dimensions and
impact of the problem.
Step 3: Developing and selecting the best alternative: This step
involves looking at the problem from a different perspective. Techniques
like brain storming are used to generate a free flow of ideas. The, ideas are
generally evaluated to see which suits the problem at hand. Once the ideas
have been generated, research can be used to further draw a consensus on
the best alternatives.
Step 4: Implementation: Implementation converts an intention into a
solution. It involves a careful and step-by-step set of actions carried out
for solving the problems. The implementation process is carried out within
a well-defined framework of time and resource allocation. Research can
be used to obtain an inventory of available resources and decide on
optimal allocation.
Step 5: Evaluation: A continuous monitoring is required to judge the
success of implementation. Evaluation is the systematic acquisition and
assessment of information to provide useful feedback about some object
or action(s). A research that is carried out with the objective of appraising
the extent to which a given set of actions have managed to achieve their
targets within the given time and resource framework is called as
evaluation research.

25
Business Research Methods

Thus, research is needed at every step of decision making. It is through

research only that a manager can remove the uncertainty surrounding a
decision. The application of research in business encompasses almost all
the business processes of an organisation. In contemporary times it is
expected of the organisations to be research oriented. Research is carried
out in almost all functional areas e.g. advertising research, marketing
research, consumer behaviour research, financial research, performance
monitoring research, evaluation research, B2B, B2C marketing research
etc.
Research in business is being actively carried out:
(i) To evaluate the day to day performance of employees;
(ii) To monitor the organisational effectiveness to improve efficiency and
productivity;
(iii) To improve consumer relations;
26
(iv) To review and update existing information which is a key resource; Introduction to Research

(v) To identify business opportunities;

(vi) To avail potential investment options and maximize returns; and
(vii) To plan for staff appraisal and development.
Thus business research is needed to place the organisation competitively
within the market.

1.10 RESEARCH APPLICATIONS IN SOCIAL

SCIENCES
The term ‘social research’ has been defined by different scholars
differently. A broad comprehensive definition of social research has been
given by P.V. Young which says that “It a scientific undertaking which by
means of logical and systematized techniques, aims to discover new factor
verify a test old facts, analyse their sequence, interrelationship and causal
explanation which were derived within an appropriate theoretical frame of
reference, develop new scientific tolls, concepts and theories which would
facilities reliable and valid study of human behaviour. A researcher’s
primary goal distant and immediate is to explore and gain an
understanding of human behaviour and social life and thereby gain a
greater control over time”.
Social research has great social importance because it helps in solving
many social problems. It aids the economic policies of a country, both for
government and business. Social Research helps to consider the basic
necessity of people and thereby provide sufficient allocation of a nation’s
resources. A new social research into society and its people helps us to
find the truth about various problems in our social setups and
relationships. It helps to understand the different social institutions and
their functions in society. It provides an overview of the changing trends
in social institutions around the world. Moreover, social research helps to
compare and contrast among different countries.
Social sciences include various disciplines dealing with human life,
human behaviour, social groups and social institutions. They consist of
Anthropology, Behaviour Science, Commerce, Demography, Economics,
Education, Geography, History, Law, Linguistics management, Political
Science, Psychology, Public Administration, Sociology and Social Work.
Though these sciences are treated as separate branches of knowledge for
the purpose of study, they are interdependent studies of the different
aspects of the same object, viz. man. All the branch of social sciences
makes use of research to find solution to their problems and enquiries. The
contribution made by different discipline should be integrated and the
interface between them should become stronger by social researcher.
In context of research in social sciences there are two important things that
need to be mentioned; firstly that importance needs to be given to the
method city in social science research and secondly the methodological
27
Business Research Methods paradigm needs to be reworked in the light of profound changes taking
place in the field of social science. The importance to methodology in
social science stems from the fact that the quality and credibility of
research depends on the quality and credibility of the methodology. A
philosopher, Heizenberg, has said that 'we observe nature not as it is but as
it is exposed to us by our method of questioning'. This implies that it is
only if we develop the right questions and state the problem correctly that
we can get the right set of answers. A problem correctly identified, a
question rightly stated is half the research accomplished. If we know what
it is that we want to do, only then can we design the method to achieve it.
The social research need not restrict itself to the questions only but should
concentrate on following three aspects:
(i) Method of questioning
(ii) Method of observation
(iii) Method of interpretation
The last aspect i.e. method of interpretation assumes importance in social
science research because social science data is amenable to diversified
interpretations. Information technology has created a virtual reality
through television, internet etc. where people believe what they are made
to believe. This has made the social reality more complex and dynamic.
The effect of such developments on research methodology is that there
cannot be a single methodology for all social sciences.

1.11 FEATURES OF A GOOD RESEARCH STUDY

Whatever may be the types of research works and studies, one thing that is
important is that they all meet on the common ground of scientific method
employed by them. One expects scientific research to satisfy the following
criteria:
1. The purpose of the research should be clearly defined and common
concepts be used.
2. The research procedure used should be described in sufficient detail to
permit another researcher to repeat the research for further
advancement, keeping the continuity of what has already been
attained.
3. The procedural design of the research should be carefully planned to
yield results that are as objective as possible.
4. The researcher should report with complete frankness, flaws in
procedural design and estimate their effects upon the findings. Good
research should have systematically chosen methodologies and
datasets to prove the proposed hypothesis.

28
5. The analysis of data should be sufficiently adequate to reveal its Introduction to Research
significance and the methods of analysis used should be appropriate.
The validity and reliability of the data should be checked carefully.
6. Conclusions should be confined to those justified by the data of the
research and limited to those for which the data provide an adequate
basis.
7. Greater confidence in research is warranted if the researcher is
experienced, has a good reputation in research and is a person of
integrity.
8. Related state-of-the-art literature should be studied in depth to avoid
reinvention of wheel.
9. It should be time-bound and realistic.
In other words, we can state the qualities of a good research as under:
1. Good Research is Systematic: It means that research is structured with
specified steps to be taken in a specified sequence in accordance with the
well-defined set of rules. Systematic characteristic of the research does not
rule out creative thinking but it certainly does reject the use of guessing
and intuition in arriving at conclusions.
2. Good Research is Logical: This implies that research is guided by the
rules of logical reasoning and the logical process of induction and
deduction are of great value in carrying out research. Induction is the
process of reasoning from a part to the whole whereas deduction is the
process of reasoning from some premise to a conclusion which follows
from that very premise. In fact, logical reasoning makes research more
meaningful in the context of decision making.
3. Good Research is Empirical: It implies that research is related
basically to one or more aspects of a real situation and deals with concrete
data that provide a basis for external validity to research results. Validity
and reliability of data should be checked and researchers should consider
an adequate amount of data.
4. Good Research is Replicable: This characteristic allows research
results to be verified by replicating the study and thereby building a sound
basis for decisions.
5. Good Research has Utility: The ultimate objective of any research
program should be oriented towards providing benefit to the society/
business. The research work should either form foundation for further
advancement in the domain, draw some concrete conclusions or it should
be beneficial from the social, commercial, or educational point of view.
6. Good Research is Creative: Creativity is the most important factor in
research proposal. Ideally no two research proposals should be identical to
each other. Research proposal should be designed meticulously so as to
consider all factors relevant to the objective of the project. Difference in
29
Business Research Methods the formulation and structure of two research programs results in
difference in creativity and also in findings. Any sorts of guessing or
imagination should be avoided in arriving at conclusions of a research
program.

1.12 SELF ASSESMENT QUESTIONS

1. Fill in the blanks with appropriate words:
(a) The __________ approach relies on direct observation and
experimentation in the acquisition of new knowledge
(b) Business research comes within the purview of ...................... research.
(c) ...................... methods are concerned with attempts to quantify social
phenomena and collect and analyse numerical data.
(d) The purpose of research is to find solutions through the application of
...................... and...................... methods.
(e) Gathering knowledge for knowledge's sake is known as ...................
research.
(f) In exploratory research, all possible reasons which are ................... are
eliminated.
(g) In ................... research, an examination of relationship that exists
between independent and dependent variable is studied.
(h) It is better for the researcher to generate as many alternatives as
possible during problem..........................
(i) The.................... must decide if data is to be collected by observation
method or by interviewing.
(j) ………………….is the best type of research type for gathering causal
information.

2. State true or false for the following statements:

(a) The purpose of doing research is to identify problem and find the
solution.
(b) In an experimental design, the dependent variable is the one that is not
manipulated and in which any changes are observed
(c) Research conducted to find solution for an immediate problem is
fundamental research.
(d) Identification of problem is the first step in starting the research
process
(e) In the process of conducting research ‘Formulation of Hypothesis” is
followed by selection of research tools.
30
(f) “Controlled Group” is a term used in historical research. Introduction to Research

(g) 'Research methodology' refers to the chain of association between the

research question and the research design.
(h) The two main approaches of research are sampling and recording.
(i) There are various types of research designed to obtain different types of
information. Descriptive Research is used to define problems and
suggest hypotheses.
(j) In a longitudinal study, measures are taken from same participants on
different occasions usually over extended period of time.

3. Match the following:

A. Research Proposal (i) Expected relationship between two or more
variables
B. Hypothesis (ii) Data collection methods used in research
C. Dependent Variable (iii) Qualitative and quantitative research
D. Questionnaire (iv) Description of research process for a research
project
E. Time dimension (v) Variable that changes due to the action of
another variable
4. Answer the following:
a) Define the term ‘Research’, Enumerate the characteristics of research.
Give a comprehensive definition of research.

b) Define business research and explain its application in managerial

decision making.

c) What do you mean by Research Methodology? Explain its

significance and compile the different types of research.

d) Describe the various classification of research, Differentiate between

fundamental research and action research. Elaborate your answer with
examples.

e) Explain the steps in research process with the help of flow chart of the
research process.

f) What type of research would you undertake in order find why middle
income groups go to a particular retail store to buy their products?

g) Which type of research would you conduct when the problem is not
clear and all the possible reasons are eliminated? Why?

31
Business Research Methods h) Business research methods are tools for decision making in the hands
of a researcher. Justify the statement.

i) What are the different methods in conducting an exploratory research?

j) What is descriptive research and when do researchers conduct it?

k) Give a detailed essay on application of research in business and social

sciences.

l) Enlist the features of a good research study.

1.13 SUMMARY
This module presents an introductory discussion about research.
Researchers systematically collect, compile, analyse, and interpret data to
provide quality information based on which the decision maker will be
able to take a decision in an optimum manner. In fact, research is tool in
the hands of a decision maker to make an optimum decision in an
environment of uncertainty. Conducting research to deal with any problem
is a scientific, systematic, and interlinked exercise, which requires sound
experience and knowledge. This module is an attempt to understand the
nature and scope of the research. The purpose of research is to contribute
to or develop a body of knowledge.
Research may broadly be classified on the basis of objectives, extent of
theory, time dimension, enquiry made and others. Basic/ pure research is
generally not related to a specific problem and its findings cannot be
immediately applied. Applied research directly addresses the problem at
hand. Applied research is launched by the firm, agency, or the individual
facing the specific problem. Exploratory research is mainly used to
explore the insight of the general research problem. It is used in obtaining
background information, research problem formulation or defining it more
precisely, identifying and defining key research variables, and developing
hypotheses. Exploratory research is conducted through secondary data
analysis, expert survey, focus group interviews, case analysis, and
projective techniques. Descriptive research is conducted to describe the
business or market characteristics. Cross-sectional research design
involves collection of information from a sample of a population at only
one point of time. Longitudinal study involves survey of the same
population over a period of time. Causal research is conducted to identify
the cause-and-effect relationship between two or more business (or
decision) variables. There are two approaches to research namely;
qualitative approach and quantitative approach.
The ability to take an informed decision is generated through a systematic
study that is conducted through various interrelated stages. A research
design is the detailed blueprint used to guide a research study towards its
objective. A good research is conducted through these steps; discover the
problem area, review of literature, problem formulation and definition,
32
developing a working hypothesis, research proposal, research design, data Introduction to Research
collection, analysis of data, hypothesis testing, data interpretation and
generalisation and reporting of results.
There is wide spectrum of application of research in business and social
sciences. On one side, research is always required by business managers
for solving business problems and decision making. On other side, social
scientists makes use of research in various disciplines of social sciences to
find social phenomenon, link social sciences, analysing social trends etc.
A good research must be systematic, logical, empirical, replicable, useful
and creative.

1.14 KEY WORDS

 Applied Research: It refers to scientific study and research that seeks
to solve practical problems.

 Case-Study Research: It is concerned with exploring and analysing

the life or functioning of a social or economic unit, such as a person, a
family, a community, an institution, a firm or an. Industry.

 Causal/ Experimental Research: A research carried out so establish

the relationship between independent variable and dependent variable.

 Cohort Study: It is about observing a category of people who share a

similar life experience in a specified time period.

 Conclusive Research: Conclusive research is carried out to provide

information that is useful in reaching conclusions or decision-making.

 Cross-Sectional Research: Cross-sectional research design involves

the collection of information from a sample of a population at only one
point of time.

 Descriptive Research: It is used to describe characteristics of a

population or phenomenon being studied.

 Diagnostic Research: This research is conducted to establish whether

two or more variables are associated and their degree of association.

 Empirical Research: Research based on first-hand gathering of data

through interviews, questionnaires, ethnographies, participant
observation, action research and so on.

 Evaluation Research: Evaluation research aims at evaluating

programme that have been implemented or actions that have taken in
order to get an objective.

 Exploratory Research: It is a methodology that investigates research

questions that have not previously been studied in depth.

33
Business Research Methods  Ex-Post Facto: Ex post facto research is the process beginning with a
phenomenon and going backward in time to identify casual factors.

 Historical Research: Historical study is a study of past records and

data in order to understand the future trends and development of the
organisation or market.

 Hypothesis: A hypothesis is a tentative assumption regarding the

solution to the problem under study.

 Longitudinal Research: Longitudinal study involves survey of the

same population over a period of time.

 Panel Study: Panel study is concerned with observing exactly the

same people, group, or organisation across time periods.

 Pure Research: It is a type of scientific research with the aim of

improving scientific theories for better understanding and prediction of
natural or other phenomena.

 Qualitative Research: Qualitative research is designed to find out

how people feel or what they think about a particular subject.

 Quantitative Research: It usually involves the collection and

converting of numerical data into numerical form to made statistical
calculations which help in drawing conclusions to answer a specific
research question.

 Research Design: Research design refers to the framework

of market research methods and techniques that are chosen by a
researcher. The design that is chosen by the researchers allows
them to utilize the methods that are suitable for the study.

 Research Proposal: A research proposal is a brief summary outlining

the objectives of study and the modus operandi of conducting the
research.

 Research: The systematic investigation and study of materials and

sources in order to establish facts and reach new conclusions.

 Theoretical Research: This research uses the findings from existing

theory and explanations to develop new ideas.

 Time-Series Research: A time series design collects data on the same

variable at regular intervals (weeks, months, years, etc.) in the form of
aggregate measures of a population.

34
 Introduction to Research
1.15 ANSWERS TO SELF ASSESMENT QUESTIONS
1. (a) empirical (b) social science(c) Quantitative(d) systematic, scientific
(e) basic (f) very obvious(g) ex-post facto (h) formulation hypothesis
(i) researcher (j) Experimental
2. (a) True (b) False (c) False (d) True (e) True (f) False
(g) True (h) False (i) True (j) True
3. A. (iv) B. (i) C. (v) D. (ii) E. (iii)



35