Business Research

Methods
 BUSINESS
 A commercial activity engaged in as a means
of livelihood or profit, or an entity which
engages in such activities.
 RESERACH
 Re ---------------- Search
 Re means (once more, afresh, anew) OR (back; with return
to a previous state)

 Search means (look thorough or go over thoroughly to look

something) OR (examine to find anything concealed)

 Research is an ORGANIZED and SYSTEMATIC way of

FINDING ANSWERS to QUESTIONS .

 Research means the activity of collecting, noting and

analyzing the important information related to any problem
about any human activity. It includes the investigation of
problem, to take important steps for that make particular
presumptions, adopting method and important research
studies.
 METHODS:
 Methods are set of specific techniques
for selecting cases, measuring and
observing aspects of social life,
gathering and refining data, analyzing
data and reporting on results.
 Definition
 Business research can be defined as the
systematic and objective process of gathering,
recording and analyzing data for aid in making
business decisions.
  SYSTEMATIC

 because there is a definite set of procedures

and steps which you will follow. There are
certain things in the research process which
are always done in order to get the most
accurate results.

 ORGANIZED
 in that there is a structure or method in going about
doing research. It is a planned procedure, not a
spontaneous one. It is focused and limited to a
specific scope.
  FINDING ANSWERS
 is the end of all research. Whether it is the answer to a
hypothesis or even a simple question, research is
successful when we find answers. Sometimes the
answer is no, but it is still an answer.

 QUESTIONS
 are central to research. If there is no question, then
the answer is of no use. Research is focused on
relevant, useful, and important questions. Without a
question, research has no focus, drive, or purpose.
 Defining Research
 1). A collection of methods and methodologies
that researchers apply systematically to produce
scientifically based knowledge about the social
world.

 2). Research must be systematic and follow a

series of steps and a rigid standard protocol.
These rules are broadly similar but may vary
slightly between the different fields of science.
 Methodology:
 Methodology & methods, two terms are
often treated as synonyms. Methodology
is broader and envelops methods. It is
understanding the social-organizational
context, philosophical assumptions,
ethical principals and political issues of
the enterprise of researchers who use
methods.
 Methods:
 Methods are set of specific techniques for
selecting cases, measuring and observing
aspects of social life, gathering and
refining data, analyzing data and
reporting on results.
 Types of Research
 Pure Research / Basic Research

 Quantitative Research

 Basic Research

 Applied Research

 Longitudinal Research

 Qualitative Research

 Descriptive Research
 Classification Research
 Comparative Research

 Exploratory Research
 Explanatory Research

 Causal Research

 Theory-testing Research

 Theory-Building Research

 Action Research

 Historical research

 Ex- post facto research

 1). Pure Research /Basic Research
 Pure research is undertaken for the sake of knowledge without
any intention to apply it in practice. Pure research is also known
as basic or fundamental research.

 Contribution of pure research: Pure research offers solutions to

many practical problems Ex: Maslow’s theory of motivation.

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

problem

 Pure research develops many alternative solutions and thus

enables us to choose the best solution.
 2). Quantitative Research

 It is based on methodological principals of

positivism and neo-positivism
 It adheres to standards of strict research design.
 Statistical analysis is used in it.
 3). Applied Research

 Aims at solving specific problems.

 Aims at establishing policy programs that will
help to improve social life.
 Types of applied research are action research,
social impact studies, cost-benefit analysis
evaluation research.
 4). Longitudinal Research

 It involves study of sample at more than one

point in time or occasion
 e.g. Trend studies, Panel studies

 A). Cross sectional Research

 It involves study of many cases at one point in
time or occasion
 5). Qualitative Research
 It is based on methodological principals of
phenomenology, symbolic interactionism,
hermeneutics.
 It aims at exploration of social world.
following elements are there….exploration,
relationship discovery, establishing
construct, testing hypothesis.
 6). Descriptive Research
 Usually it forms preliminary study of a research
project.
 It aims at describe social events, relations and
events.
 It provides background information about an event
in question
 The objective of descriptive research is to describe
things, such as the market potential for a product or
the demographics and attitudes of consumers who
buy the product.
 7). Classification research
 It aims at categorization of units into groups
 To demonstrate differences
 To explain relationships
 8). Comparative Research

 To identify similarities and differences between

units at all levels.
 9). Exploratory Research/
Formulative research
 It aims at gaining information about an issue in hand.
 The objective of exploratory research is to gather
preliminary information that will help define problems
and suggest hypotheses.
 The results of exploratory research are not usually
useful for decision-making by themselves, but they
can provide significant insight into a given situation.
Although the results of qualitative research can give
some indication as to the "why", "how" and "when"
something occurs, it cannot tell us "how often" or
"how many".
 Exploratory research is a type of research
conducted for a problem that has not been
clearly defined. Exploratory research helps
determine the best research design, data
collection method and selection of subjects.

 It should draw definitive conclusions only with

extreme caution. Given its fundamental nature,
exploratory research often concludes that a
perceived problem does not actually exist.
 10). Explanatory Research

 It aims at explaining social relations and events.

 To build, test or revise a theory.
 11). Causal Research
 It aims at establishing cause and effect relationship
among variables.
 The objective of causal research is to test hypotheses
about cause-and-effect relationships.
 Causal Research explores the effect of one thing on
another and more specifically, the effect of one
variable on another.
 The research is used to measure what impact a
specific change will have on existing norms and
allows market researchers to predict hypothetical
scenarios upon which a company can base its
business plan.
 For example, if a clothing company currently sells
blue denim jeans, causal research can measure the
impact of the company changing the product design
to the colour white.
 Following the research, company bosses will be able
to decide whether changing the colour of the jeans to
white would be profitable.
 To summarise, causal research is a way of seeing how
actions now will affect a business in the future.
12). Theory testing Research

 It aims at testing validity of a theory

13). Theory building Research

 To establish and formulate theory

 14). Action Research

 It is application of fact findings to practical

problem solving in a social situation with a view
to improve quality of action within it, involving
collaboration and cooperation of researchers,
practitioners and laymen.
 It can be situational (diagnose a problem and
attempts to solve it), collaborative, participatory
(researcher take part in implementation of
findings) and self-evaluation (it involves
constant evaluation and adjustment of research
and practice)
 15) Ex post facto Research
 Ex post facto means from what is done afterwards.

 Ex post facto research method refers to those studies

which investigate possible cause-and-effect
relationships by observing an existing condition or
state of affairs and looking back in time for valid
causal factors.

 The ex post facto research method is a method of one

using statistics and alternative ways to figure out an
event. One would not be able to study actual events
because they have already happened.
 Basic Research Designs Compared

EXPLORATORY DESCRIPTIVE CAUSAL

Objectives Gather background Describe and measure Establish causality, develop

information, define terms, marketing phenomena, “if-then” statements
clarify problems and characteristics, or
hypotheses, establish functions of interest.
research priorities.
Characteristics Relatively simple, Prior formulation of Manipulation of one or more
versatile and flexible; specific hypotheses; independent variables;
Often the first phase of a Pre-planned and Pre-planned and structured
multiple research design, structured design. design;
unstructured. Control of other mediating
variables
Methods Secondary data analysis Secondary data Experiments:
Qualitative research analysis Laboratory
Expert surveys Surveys Field
Pilot surveys Panels Test marketing
Observational and
. other data
Results/Findings Tentative Conclusive Conclusive
 SIGNIFICANCE OF RESEARCH
 Research include scientific and inductive thinking and it promotes
the development of logical habits of thinking and organization.

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

 Research provides the basis for nearly all government polices in

our economic system.

 Research has its special significance in solving various operational

and planning problems of business and industry.

 Research is equally important for social scientists in studying

social relationships and in seeking answers to various social
problems.
 Good Research Requires
 The scope and limitations of the work to be clearly defined.
 The process to be clearly explained so that it can be
reproduced and verified by other researchers.
 A thoroughly planned design that is as objective as possible.
 Highly ethical standards are applied.
 All limitations are documented.
 Data be adequately analyzed and explained.
 All findings are presented unambiguously and all conclusions
be justified by sufficient evidence.
 Adequate analysis for decision-maker’s needs
 Researcher’s experience reflected
 QUALITIES OF A GOOD
RESEARCH

 GOOD RESEARCH IS SYSTEMATIC

 GOOD RESEARCH IS LOGICAL
 GOOD RESEARCH IS EMPIRICAL
 GOOD RESEARCH IS REPLICABLE
 Market Research:
 Market research is a branch for acquiring the
marketing information. Market means actual and
potential customers. In the market research the
questions such as who, what, where, when, why
and how etc. are examined in context to the
present and potential customers. Market research
is an activity related to investigation, analysis and
estimate of market demand. It includes the study
of habit, taste and fashion of the customers.
Mainly Marketing Research includes:
(1) Market size.
(2) Geographical area of customers.
(3) Demographic description of customers.
(4) Market segmentation on the basis of age, income,
education, nationality, caste, life standard etc.
(5) Analysis of market demands.
(6) Sales analysis in context to customers, area and
product.
(7) Customer’s requirements, necessities, habit and
behavior.
(8) Trader’s requirements and selection sequence.
(9) Level of competition and market trends etc.
 Marketing Research:
Marketing Research is broad concept. It includes the entire research
activities for the entire marketing process.

 According to Philip Kilter, “Marketing Research means

systematic problem analysis model building and fact finding for
the purpose of improved decision making and control in the
marketing of goods and services.”

 According to A. M. A., “Marketing Research is the systematic

gathering, recording and analyzing of data about problems
relating to the marketing of goods and services.”

 According to R. D. Crisp, “Marketing Research is the systematic

evaluative and exhaustive search for and study of the facts
relevant to any problem in the field of marketing”.
 On the basis of the above definitions,
it can be clearly said that:
(1) Marketing research is a particular target based activity,
which includes two main objectives:
 Clarification of problem,

 Solution of a problem.

(2) In the market research the information and conclusion is

found out after collecting and analyzing the data in
context, to the problems.

(3) During the market research the marketing decisions are

being taken through the collected information. Not only is
that but the effective decisions also taken on its basis.
(4) Whatever information is received through marketing research
about the external environments* affecting business activities
such as customer’s fashion, purchasing habit, purchasing
behavior, industry, competitors etc. is more useful compare to the
information acquired through the internal sources.

(5) Marketing research is a permanent process. All the marketing

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

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

(7) After acquiring the important information regarding the special

problems about the marketing activities such as, when the product
should be launched in the market, whether to increase or decrease
the product line etc. the efforts must be made to solve these
problems.
 SCIENTIFIC RESEARCH

“Scientific Research Method is one and same in the

branches of science, which is used in all the research
and used by various scientists. This method attracted
all the trained minds .

 MEANING.
“The Scientific Method is a systematic step by step
procedure following the logical processes of
reasoning.” “Scientific method is a means for
gaining knowledge of universe.” As per karl pearson
“Scientific method is one and same in all branches and
that method of all logically trained minds.” “Science is
not wrapped up with any particular body of facts.”
 BASIS FOR SCIENTIFIC
METHOD
 The scientific method is based on certain criteria's:
 Reliance on empirical evidence.
 It utilizes relevant concepts.
 Commitment to objectivity.
 It presupposes ethical neutrality.
 It aims generalization.
 It results into probabilistic predictions.
 It is a logical reasoning process.
 ESSENTIALS OF A GOOD SCIENTIFIC
METHOD
 The advisory committee on Economic and Social Research
has described the following needs.
 Careful logical analysis of the problem, separating its
elements and formulating hypothesis.
 Collection of data related to the problem under study
 Classification of data.
 Expression of variables in quantitative terms.
 Statistical procedure in analyzing the data.
 Sound logical reasoning as to the testing of hypothesis.
 Specific and clear statement of generalizations to facilitate
checking and testing by others.
 Complete elimination of personal equation.
 Complete and careful reporting of the research process.
 DIFFICULTIES IN APPLYING
SCIENTIFIC METHOD

 Complexity of the subject

 Difficulty of obtaining accurate measurements
 Process of measurement may influence results
 Difficulty in using experiments to test
hypothesis
 Difficulty in making accurate predictions
 Problematic objective of investigation
DIFFERENCE BETWEEN SCIENTIFIC AND
NON SCIENTIFIC METHOD OF RESEARCH
SCIENTIFIC METHOD
 More objective but making the result unbiased.
 Systematic manner with pre designed steps.
 The results can be measured more accurately.
 It is a continuous research process.
 A number of statistical techniques are applied to analyze the data.

NON SCIENTIFIC METHOD

 More objective but making the results more biased.
 Non systematic manner
 The results cannot be measured accurately.
 It is not a continuous process.
 May not be applicable.
 Ethical issues in Business Research
 Intrusions on consumer privacy
 Invasion of Privacy.
 Misuse of Research Findings
 Online privacy and security
 Informing Respondents of Survey Purpose
 Deceiving Respondents.
 Confidentiality and Anonymity