Business Research Methods (KMB 203)

Unit 1st

DR. ANKIT AGARWAL

 Meaning of Research

 Research refers to a search for knowledge. Research is an

art of scientific investigation.
 According t Clifford woody, research comprises defining
and redefining problems, formulating hypothesis or
suggested solutions collecting, organizing and evaluating
data, making deductions and reaching conclusions; to
determine whether they fit the formulating hypothesis.
 Systematized effort to gain new knowledge”. Some people
consider research as a movement, a movement from the
known to the unknown.
 Objectives

 To gain familiarity with a phenomenon or to achieve new

insights into it. (exploratory or formulative research
studies).
 To describe accurately the characteristics of a particular
individual, situation or a group. (descriptive research).
 To determine the frequency with which something occurs
or with which it is associated with something else. (studies
with this object known as diagnostic research).
 To test a hypothesis of a causal relationship between
variables. (such studies are known as hypothesis testing
research).
 Types

It is imperative that a marketer has to have a broad understanding of the various types of
research, in general.
There are eleven types of research depending on whether it is primarily “fundamental” or
“applied” in nature.
They are as follows:

1. Applied research: also known as decisional research, use existing knowledge as an aid
to the solution of some given problem or set of problems.

2. Fundamental research: frequently called basic or pure research, seeks to extend the
boundaries of knowledge in a given area with no necessary immediate application to
existing problems.

3. Futuristic research: Futures research is the systematic study of possible future

conditions. It includes analysis of how those conditions might change as a result of the
implementation of policies and actions, and the consequences of these policies and actions.
 Cont..

4. Descriptive research: includes surveys and fact-finding enquiries of different kinds. It tries
to discover answers to the questions who, what, when and sometimes how. Here the researcher
attempts to describe or define a subject, often by creating a profile of a group of problems, people,
or events. The major purpose of descriptive research is description of the state of affairs as it exists
at present

5. Explanatory research: Explanatory research goes beyond description and attempts to

explain the reasons for the phenomenon that the descriptive research only observed. The research
would use theories or at least hypothesis to account for the forces that caused a certain
phenomenon to occur.

6. Predictive research: If we can provide a plausible explanation for an event after it has
occurred, it is desirable to be able to predict when and in what situations the event will occur. This
research is just as rooted in theory as explanation. This research calls for a high order of inference
making. In business research, prediction is found in studies conducted to evaluate specific courses
of action or to forecast current and future values.

7. Analytical research: The researcher has to use facts or information already available, and
analyze these to make a critical evaluation of the material.
 Cont..

8. Quantitative research: Quantitative research is based on the measurement of quantity

or amount. It is applicable to phenomena that can be expressed in terms of quantity.

9. Qualitative research: It is concerned with qualitative phenomenon (i.e.) phenomena

relating to or involving quality or kind. This type of research aims at discovering the
underlying motives and desires, using in depth interviews for the purpose. Other techniques
of such research are word association test, sentence completion test, story completion tests
and similar other projective techniques. Attitude or opinion research i.e., research designed
to find out how people feel or what the think about a particular subject or institution is also
qualitative research.

10. Conceptual research: Conceptual research is that related to some abstract idea(s) or
theory. It is generally used by philosophers and thinkers to develop new concepts or to
reinterpret existing ones. 11. Empirical research: It is appropriate when proof is sought that
certain variables affect other variables in some way. Evidence gathered through experiments
or empirical studies is today considered to be the most powerful support possible for a give
hypothesis.
 Process of Research

Several authors have attempted to enumerate the steps involved in the

research process, however, inconclusive. Nevertheless, the research
process broadly consists of the following steps and predominantly
follows a sequential order.

1. Problem formulation
2. Development of an approach to the problem
3. Research Design
4. Selection of Data collection techniques
5. Sampling techniques
6. Fieldwork or Data Collection
7. Analysis and interpretation
8. Report preparation and presentation
Research Process
Cont..
 Research Design & Measurement

Research design is an absolute essentiality in research irrespective of

the type of research (e.g., exploratory or descriptive), as it ensures that
the data collected is appropriate, economical and accurate. This also
ensures that the research project conducted is effectively and
efficiently done. A sufficiently formulated research design would
ensure that the information gathered is consistent with the study
objectives and that the data are collected by accurate procedures.

The research design is intended to provide an appropriate framework

for a study. A very significant decision in research design process is
the choice to be made regarding research approach since it determines
how relevant information for a study will be obtained; however, the
research design process involves many interrelated decisions.
Cont..
 Exploratory Research

Exploratory research is defined as a research used to investigate a

problem which is not clearly defined. It is conducted to have a
better understanding of the existing problem, but will not provide
conclusive results. For such a research, a researcher starts with a
general idea and uses this research as a medium to identify issues,
that can be the focus for future research.

An important aspect here is that the researcher should be willing

to change his/her direction subject to the revelation of new data or
insight. Such a research is usually carried out when the problem is
at a preliminary stage. It is often referred to as grounded theory
approach or interpretive research as it used to answer questions
like what, why and how.
Cont..
 Example

Consider a scenario where a juice bar owner feels

that increasing the variety of juices will enable
increase in customers, however he is not sure and
needs more information. The owner intends to carry
out an exploratory research to find out and hence
decides to do an exploratory research to find out if
expanding their juices selection will enable him to
get more customers of if there is a better idea.
 Characteristics of Exploratory Research

 They are not structured studies

 It is usually low cost, interactive and open ended.
 It will enable a researcher answer questions like what is the problem? What is the purpose
of the study? And what topics could be studied?
 To carry out exploratory research, generally there is no prior research done or the existing
ones do not answer the problem precisely enough.
 It is a time consuming research and it needs patience and has risks associated with it.
 The researcher will have to go through all the information available for the particular
study he is doing.
 There are no set of rules to carry out the research per se, as they are flexible, broad and
scattered.
 The research needs to have importance or value. If the problem is not important in the
industry the research carried out is ineffective.
 The research should also have a few theories which can support its findings as that will
make it easier for the researcher to assess it and move ahead in his study
 Such a research usually produces qualitative data, however in certain cases quantitative
data can be generalized for a larger sample through use of surveys and experiments.
 Advantages / Disadvantages

Advantages of Exploratory research

The researcher has a lot of flexibility and can adapt to changes as the research progresses.
It is usually low cost.
It helps lay the foundation of a research, which can lead to further research.
It enables the researcher understand at an early stage, if the topic is worth investing the time and
resources  and if it is worth pursuing.
It can assist other researchers to find out possible causes for the problem, which can be further studied in
detail to find out, which of them is the most likely cause for the problem.

Disadvantages of Exploratory research

Even though it can point you in the right direction towards what is the answer, it is usually inconclusive.
The main disadvantage of exploratory research is that they provide qualitative data. Interpretation of
such information can be judgmental and biased.
Most of the times, exploratory research involves a smaller sample, hence the results cannot be accurately
interpreted for a generalized population.
Many a times, if the data is being collected through secondary research, then there is a chance of that data
being old and is not updated.
 Importance

Exploratory research is carried out when a topic needs to

be understood in depth, especially if it hasn’t been done
before. The goal of such a research is to explore the
problem and around it and not actually derive a conclusion
from it. Such kind of research will enable a researcher to
 set a strong foundation for exploring his ideas, choosing
the right research design and finding variables that actually
are important for the analysis. Most importantly, such a
research can help organizations or researchers save up a lot
of time and resources, as it will enable the researcher to
know if it worth pursuing.
 Descriptive Research

Descriptive research aims to accurately and

systematically describe a population, situation or
phenomenon. It can
answer what, when, where, when and how questions,
but not why questions. To determine cause and
effect, experimental research is required.
A descriptive research design can use a wide variety
of quantitative and qualitative methods to investigate
one or more variables. Unlike in experimental research,
the researcher does not control or manipulate any of
the variables, but only observes and measures them.
 Descriptive Research Methods

There are 3 distinctive methods to conduct descriptive research. They are:

Observational Method
The observational method is the most effective method to conduct descriptive research and both
quantitative observation and qualitative observation are used in this research method.

Quantitative observation is the objective collection of data which is primarily focused on numbers
and values –  it suggests “associated to, of or depicted in terms of a quantity”. Results of quantitative
observation are derived using statistical and numerical analysis methods. It implies observation of any
entity that can be associated with a numeric value such as age, shape, weight, volume, scale etc. For
example, the researcher can track if current customers will refer the brand by using a simple Net
Promoter Score question.

Qualitative observation doesn’t involve measurements or numbers but instead just monitoring

characteristics. In this case the researcher observes the respondents from a distance. Since the
respondents are in a comfortable environment, the characteristics observed are natural and effective. In
descriptive research, the researcher can chose to be either a complete observer, an observer as a
participant, a participant as an observer or a complete participant. For example, in a supermarket, a
researcher can from afar monitor and track the selection and purchasing trends of the customers. This
offers a deeper insight into the purchasing experience of the customer.
 Cont..

Case Study Method

Case studies involve in-depth research and study of individuals or groups. Case studies
lead to a hypothesis and widen a further scope of studying a phenomenon. However,
case studies should not be used to determine cause and effect as they don’t have the
capacity to make accurate predictions because there could be a bias on the part of the
researcher. The other reason why case studies are not an accurate way of conducting
descriptive research is because there could be an atypical respondent in the research and
describing them leads to poor generalizations and move away from external validity.

Survey Research
In survey research, respondents answer through surveys or questionnaires, or polls.
They are a popular market research tool to collect feedback from respondents. In order
for a survey to gather good quality data, it should have good survey questions, which
should be a balanced mix of open-ended questions and close ended-questions. The
survey method can be conducting online or offline which is makes it the go-to option for
descriptive research where the sample size is very large.
 Example

 A specialty food group launching a new range of barbecue

rubs would like to understand what flavors of rubs are
favored by different sets of people. To understand the
preferred flavor palette, they conduct a descriptive research
study using different methods like observational methods in
supermarkets. By also conducting a survey whilst collecting
in-depth demographic information, offers insights about the
preference of different markets. This can also help tailor
make the rubs and spreads to different preferred meats in
that demographic. Conducting a thorough descriptive
research helps the organization tweak their business model
and amplify marketing in core markets.
Characteristics of Descriptive Research

The term descriptive research then, refers to research questions, design of the research and data
analysis that would be conducted on that topic. It is called an observational research method because
none of the variables that are part of the research study are influenced in any capacity.

Some distinctive characteristics of descriptive research are:

Quantitative research: Descriptive research is a quantitative research method that attempts to collect

quantifiable information to be used for statistical analysis of the population sample. It is an
popular market research tool that allows to collect and describe the nature of the demographic segment.

Uncontrolled variables: In descriptive research, none of the variables are influenced in any way. This
uses observational methods to conduct the research. Hence, the nature of the variables or their behavior
is not in the hands of the researcher.

Cross-sectional studies: Descriptive research is generally a cross-sectional study where different

sections belonging to the same group are studied.

Basis for further research: The data collected and analyzed from descriptive research can then be
further researched using different research techniques. The data also can help point towards the types of
research methods are to be used for the subsequent research.
 Advantages / Disadvantages
Advantages of Descriptive Research

Data collection: Descriptive research can be conducted by using specific methods like observational

method, case study method and survey method. Between these 3, all major methods of data collection
are covered which provides a lot of information. This can be used for future research or even developing
hypothesis of your research object.

Varied: Since the data collected is both qualitative and quantitative, it gives a holistic understanding of


a research topic. This causes data that was not planned to be collected gets tracked and the data is varied,
diverse and thorough.


Natural environment: Descriptive research allows for the research to be conducted in the natural
environment of the respondent and this ensures that high-quality and honest data is collected.


Quick to conduct and cheap: As the sample size is generally large in descriptive research, the data
collection is quick to conduct and is cheap.


Forms basis for decision-making: As the data collected in descriptive research represents a larger
population and is robust, it is easy to make decisions on the basis of the statistical analysis of that data.
 Cont..

Disadvantages of Descriptive Research

Confidentiality: Respondents aren’t always truthful if questions are too personal or

they feel that they are being “watched”. This may negate the validity of the data.

Halo effect: If the research observer has a potential bias towards the research topic or
some respondents in the research, the observations then maybe considered as invalid
or untrue.

Sample isn’t representative: Due to the randomness of the sample, it is very tough

to validate that the sample is an accurate representation of the whole population.

No scope to learn cause: Since descriptive research only focuses on the “what” of an
objective or phenomenon, it does not delve into the “why or how” and that is a
limitation in learning specific causes.
 Types of Research Design

Qualitative research design: Qualitative research determines

relationships between collected data and observations based on
mathematical calculations. Theories related to a naturally existing
phenomenon can be proved or disproved using statistical methods.
Researchers rely on qualitative research design methods that conclude
“why” a particular theory exists along with “what” respondents have to say
about it.

Quantitative research design: Quantitative research is for cases where

statistical conclusions to collect actionable insights are essential. Numbers
provide a better perspective to make critical business decisions.
Quantitative research design methods are necessary for the growth of any
organization. Insights drawn from hard numerical data and analysis prove
to be highly effective when making decisions related to the future of the
business.
 Cont..

Experimental
 research design: Experimental research design establishes a relationship between the
cause and effect of a situation. It is a causal design where one observes the impact caused by the
independent variable on the dependent variable.

For
 example, one monitors the influence of an independent variable such as a price on a dependent
variable such as customer satisfaction or brand loyalty. It is a highly practical research design method as it
contributes to solving a problem at hand. The independent variables are manipulated to monitor the
change it has on the dependent variable. It is often used in social sciences to observe human behavior by
analyzing two groups. Researchers can have participants change their actions and study how the people
around them react to gain a better understanding of social psychology.

Correlational
 research design: Correlational research is a non-experimental research design
technique that helps researchers establish a relationship between two closely connected variables. This
type of research requires two different groups. There is no assumption while evaluating a relationship
between two different variables, and statistical analysis techniques calculate the relationship between
them.

A
 correlation coefficient determines the correlation between two variables, whose value ranges between -1
and +1. If the correlation coefficient is towards +1, it indicates a positive relationship between the
variables and -1 means a negative relationship between the two variables. 
 Cont..

Diagnostic research design: In diagnostic design, the researcher is

looking to evaluate the underlying cause of a specific topic or phenomenon.
This method helps one learn more about the factors that create
troublesome situations. 

This design has three parts of the research:

· Inception of the issue
· Diagnosis of the issue
· Solution for the issue

Explanatory research design: Explanatory design uses a researcher’s

ideas and thoughts on a subject to further explore their theories. The
research explains unexplored aspects of a subject and details about what,
how, and why of research questions.