BUSINESS RESEARCH METHODS

UNIT-I: INTRODUCTION TO BUSINESS RESEARCH

WHAT IS A RESEARCH?
 Research refers to a search for knowledge. Research is an art of scientific investigation.
 A method of investigation involving observation and theory to test scientific hypotheses
 A tentative explanation for an observation, phenomenon, or scientific problem that can
be tested by further investigation
 “a careful investigation or inquiry specially through search for new facts in any branch
of knowledge”

RESEARCH IS CONDUCTED WITH A PURPOSE TO:

 Identify potential and new customers

 Understand existing customers
 Set pragmatic goals
 Develop productive market strategies
 Address business challenges
 Put together a business expansion plan
 Identify new business opportunities

WHY DO WE MAKE RESEARCH?

 We want to know more about ourself and the world around us.
 Purpose of research is to learn something, or to gather evidence.
 When you write or speak formally, you share what you've learned with others, backed
with evidence to show that what you've learned is correct.
 If, however, you have not learned more than your audience already knows, there is
nothing for you to share.
 Thus, you do research.

DEFINITION OF RESEARCH:

Research is the careful consideration of study regarding a particular concern or research

problem using scientific methods. According to the American sociologist Earl Robert
Babbie, “research is a systematic inquiry to describe, explain, predict, and control the observed
phenomenon. It involves inductive and deductive methods.”
Redman and Mory define research as a,” Systematized effort to gain new knowledge”. Some
People consider research as a movement, a movement from the known to the unknown. The
process of finding solution to a problem after a thorough study and analysis of the situational
factors.

TYPES OF RESEARCH:

Descriptive Research:
Descriptive research is used to describe characteristics of a population or phenomenon being
studied. It does not answer questions about how/when/why the characteristics occurred. Rather
it addresses the "what" question.

Analytical Research:

Analytical research is a specific type of research that involves critical thinking skills and. the
evaluation of facts and information relative to the research being conducted. A variety of people
including students, doctors and psychologists use analytical research during studies to find the
most relevant information.

Applied Research:
Applied research is a non-systematic way of finding solutions to specific research problems or
issues. These problems or issues can be on an individual, group, or societal level. It is called
“non-systematic” because it goes straight to finding solutions.

Fundamental Research:
Basic research, also called pure research or fundamental research, is a type of scientific research
with the aim of improving scientific theories for better understanding and prediction of natural
or other phenomena.

Quantitative Research:
Quantitative research is the process of collecting and analyzing numerical data. It can be used
to find patterns and averages, make predictions, test causal relationships, and generalize results
to wider populations.
Qualitative Research:
Qualitative method is used to understand people's beliefs, experiences, attitudes, behavior, and
interactions. It generates non-numerical data. The integration of qualitative research into
intervention studies is a research strategy that is gaining increased attention across disciplines.

CHARACTERISTICS OF GOOD RESEARCH:

Good research is replicable, reproducible, and transparent. Replicability, reproducibility, and
transparency are some of the most important characteristics of research. The replicability of a
research study is important because this allows other researchers to test the study's findings.

 The research should focus on priority problems.

 The research should be systematic.
 The research should be logical.
 The research should be reductive.
 The research should be replicable.
 The research should be generative.
 The research should be action-oriented.
A good research is
• Systematic
• Logical
• Empirical
• Replicable
Criteria of Good Research:
1. Purpose should be clearly defined.
2. Research Process (source of data etc.) should be described in sufficient detail (except when
secrecy is required).
3. There is a clear statement of research aims, which defines the research question.
4. Design (Sampling, questionnaire, observation etc) should be thoroughly planned so as to
yield objective results.
5. High ethical standards.
6. Limitations should be frankly revealed (e.g. flaws in design) so that the decision maker is
made aware.
7. Analysis of data should be adequate and methods of analysis appropriate. Should check for
reliability and validity, and probability of error
8. Unambiguous presentation
9. Conclusions should be confined to those justified by the data of the research.
RESEARCH PROCESS:
The research process consists of a series of systematic procedures that a researcher must go
through in order to generate knowledge that will be considered valuable by the project and
focus on the relevant topic.
1. Identification of a research problem
A good research always starts with a good problem. You can observe people or things, visit
places, read print materials, or consult experts to find the research problem that is right for you.
The research problem guides you in formulating the hypothesis and interpretation of your
findings so that you can formulate the right conclusion. A good research problem is important
because it is the basis of all subsequent research activities you are going to undertake. Factors
like area of interest, availability of fund, socio-economic significance of the study, and the
safety measures to be undertaken should be considered in finding a good research problem.

2. Formulation of Hypothesis
After finding your research problem, the next step is to formulate your own hypothesis. A
hypothesis is a theoretical statement in solving a logical relationship between variables. Do not
be afraid if your hypothesis proves to be incorrect after the experimentation because it is only
considered as an educated guess. Always remember that when you formulate a hypothesis, it
should be based on the research problem being solved.

3. Review of Related Literature

A research problem is vague at first. To give you a vivid picture of the whole research, you
shall read various publications or surf the internet to become aware of the previous works
already done. In doing so, it could spur an idea that can be the subject of your investigation.
The review of related literature can be taken from science books, magazines, journals,
newspapers, or even in the internet.

4. Preparation of Research Design

A research design is the blueprint of the research you are going to undertake. It serves as the
work plan of the whole study not only because it entails the resources needed in conducting the
research but also the ways these resources are utilized.

5. Actual experimentation
Actual experimentation is an implementation of the research design. In actual experimentation,
you have to conduct an experiment to prove the validity of the hypothesis you have formulated.
Actual experimentation includes the methodology that you have followed in doing your
research. The methodology should be carefully planned prior to the actual experimentation to
ensure the validity and accuracy of the result.
6. Results and Discussion
This is the heart of the research process because this is part where the findings of the research
can be found. You can use table (not the table in your kitchen) and graph to interpret the results
of your research.

7. Formulation of Conclusions and Recommendations

Conclusion is a statement where you will present the solution to the proposed problem based
on the findings of the investigation. They are tied up to the questions investigated. Your
conclusion will show whether or not your experiment worked. It should answer your hypothesis
and research problem. In your concluding statement you can also infer on the possible benefits
to society that your results might present. You can state any plans you might have to continue
working on other aspects related to your area of study. We must remember that
recommendations are based on conclusions and conclusions are based on findings

MANAGEMENT PROBLEM:
These problems are actually related to the management their objective is to prevent the problem
or atleast minimized the impact of incident that cause problems. These problem have their focus
on the symptoms of the management problem. management problem are actually the action
oriented one.
PROCESS INVOLVED IN DEFINING THE PROBLEM
• Statement of problem in a general way.
• Understanding the nature of problem.
• Surveying the available literature.
• Developing ideas through literature.
• Diffrentiate the research problem.
ESTABLISHMENT OF RESEARCH OBJECTIVE
 Research objective are the specific components of the research problem, that you will
be working to answer or complete, in order to answer the overall research problem.
 The objective refers to the questions to be answered through the study.
 They indicate what we are trying to get from the study or the expected result of the
study.

• The objectives should start with words such as

• ‘to determine’,
• ‘to find out’,
• ‘to ascertain’,
• ‘to measure’,
• ‘to explore’ etc.
• wording of objectives determines the type of research

HYPOTHESIS:
Hypotheses is a guess, assumption, suspicion, assertion or an idea about a phenomenon,
relationship or situation, the reality or truth of which you do not know.

Hypotheses bring clarity, specificity and focus to a research problem, but are not essential for
a study. A hypothesis is a proposed explanation for a phenomenon. For a hypothesis to be a
scientific hypothesis, the scientific method requires that one can test it. Scientists generally
base scientific hypotheses on previous observations that cannot satisfactorily be explained with
the available scientific theories.
A hypothesis is an assumption that is made based on some evidence. This is the initial point of
any investigation that translates the research questions into predictions. It includes components
like variables, population and the relation between the variables. A research hypothesis is a
hypothesis that is used to test the relationship between two or more variables.

Characteristics of Hypothesis
Following are the characteristics of the hypothesis:

 The hypothesis should be clear and precise to consider it to be reliable.

 If the hypothesis is a relational hypothesis, then it should be stating the relationship

between variables.

 The hypothesis must be specific and should have scope for conducting more tests.

 The way of explanation of the hypothesis must be very simple and it should also be
understood that the simplicity of the hypothesis is not related to its significance.

Sources of Hypothesis
Following are the sources of hypothesis:

 The resemblance between the phenomenon.

 Observations from past studies, present-day experiences and from the competitors.

 Scientific theories.

 General patterns that influence the thinking process of people.

Types of Hypothesis
There are six forms of hypothesis and they are:

 Simple hypothesis

 Complex hypothesis

 Directional hypothesis

 Non-directional hypothesis

 Null hypothesis

 Associative and casual hypothesis

Simple Hypothesis
It shows a relationship between one dependent variable and a single independent variable. For
example – If you eat more vegetables, you will lose weight faster. Here, eating more vegetables
is an independent variable, while losing weight is the dependent variable.

Complex Hypothesis
It shows the relationship between two or more dependent variables and two or more
independent variables. Eating more vegetables and fruits leads to weight loss, glowing skin,
and reduces the risk of many diseases such as heart disease.

Directional Hypothesis
It shows how a researcher is intellectual and committed to a particular outcome. The
relationship between the variables can also predict its nature. For example- children aged four
years eating proper food over a five-year period are having higher IQ levels than children not
having a proper meal. This shows the effect and direction of the effect.

Non-directional Hypothesis
It is used when there is no theory involved. It is a statement that a relationship exists between
two variables, without predicting the exact nature (direction) of the relationship.

Null Hypothesis
It provides a statement which is contrary to the hypothesis. It’s a negative statement, and there
is no relationship between independent and dependent variables. The symbol is denoted by
“HO”.

Associative and Causal Hypothesis

Associative hypothesis occurs when there is a change in one variable resulting in a change in
the other variable. Whereas, the causal hypothesis proposes a cause and effect interaction
between two or more variables.
Examples of Hypothesis
Following are the examples of hypotheses based on their types:

 Consumption of sugary drinks every day leads to obesity is an example of a simple

hypothesis.

 All lilies have the same number of petals is an example of a null hypothesis.

 If a person gets 7 hours of sleep, then he will feel less fatigue than if he sleeps less. It
is an example of a directional hypothesis.

Functions of Hypothesis
Following are the functions performed by the hypothesis:

 Hypothesis helps in making an observation and experiments possible.

 It becomes the start point for the investigation.

 Hypothesis helps in verifying the observations.

 It helps in directing the inquiries in the right direction.

How will Hypothesis help in the Scientific Method?

Researchers use hypotheses to put down their thoughts directing how the experiment would
take place. Following are the steps that are involved in the scientific method:

 Formation of question

 Doing background research

 Creation of hypothesis

 Designing an experiment

 Collection of data

 Result analysis

 Summarizing the experiment

 Communicating the results

WRITING A RESEARCH PROPOSAL:

A research proposal is a concise and coherent summary of your proposed research. It sets out
the central issues or questions that you intend to address. It outlines the general area of study
within which your research falls, referring to the current state of knowledge and any recent
debates on the topic.

1. TITLE
 Your title should give a clear indication of your proposed research approach or key question
2. BACKGROUND AND RATIONALE
You should include:
 the background and issues of your proposed research
 identify your discipline
 a short literature review
 a summary of key debates and developments in the field
3. RESEARCH QUESTION(S)
You should formulate these clearly, giving an explanation as to what problems and issues are to be
explored and why they are worth exploring
4. RESEARCH METHODOLOGY
You should provide an outline of:
 the theoretical resources to be drawn on
 the research approach (theoretical framework)
 the research methods appropriate for the proposed research
 a discussion of advantages as well as limits of particular approaches and methods
5. PLAN OF WORK & TIME SCHEDULE
You should include an outline of the various stages and corresponding time lines for developing and
implementing the research, including writing up your thesis.
For full-time study your research should be completed within three years, with writing up completed
in the fourth year of registration.
For part-time study your research should be completed within six years, with writing up completed by
the eighth year.
6. BIBLIOGRAPHY
You should include:
 a list of references to key articles and texts discussed within your research proposal
 a selection of sources appropriate to the proposed research

Applications of Research in Business Decision-Making

It is an established fact that research assists in business decisions and further in

different functional areas of management. Business managers in human resources,
production, marketing or finance regularly face situations that require effective and
actionable decision-making. Most of these decisions require additional information
which can best be addressed by research.

Marketing

Marketing is one of the areas of business where research is the lifeline. It is carried out on a wide variety
of topics and is conducted by the organization as well as outsourced to research agencies. Broader
industry or product-category-specific studies are also carried out by market research agencies that assist
in business decisions. There are various issues which require attention for research including market
potential analysis, market segmentation, demand estimation, market structure analysis and business
trend analysis. An organization also carries out researches related to product, pricing, promotion and
place. These days with the increase in competition and the need to retain customers, customer
relationship management, satisfaction, and loyalty have been added to the areas in which significant
research is being carried out.
Human Resource Management

Human resource management and organizational behavior involve basic research as a lot of academic
and macro level research may be adapted and implemented by organizations into their programs and
policies. Applied HR research is more predictive and solution oriented. There are a number of academic
and organizational areas which attract more research. Such areas include performance management,
organizational climate, talent and aptitude analysis, organizational change management, employee
selection and staffing, organizational planning and development, job analysis, performance appraisal,
recognition and reward studies, compensation analysis, training and development, employee
relationship analysis, negotiation and wage settlement, turnover and attrition and work life balance
studies.

Financial and accounting research

The area of financial and accounting research is so vast that it is difficult to provide a framework of the
research areas. However, there are some prevalent research issues including asses pricing, corporate
finance, capital markets, takeovers and mergers, financial reporting, the impact of factors on returns,
financial derivatives, credit risk modeling, corporate decision-making analysis, investment risk
appraisal, analysis of corporate financial reporting behavior, accounting based values, evaluation and
usage of accounting information by investors and evaluation of management compensation schemes,
analysis of audit regulations, analysis of audit methodologies, corporate governance, accountability of
audit committees, risk estimation and analysis, business policy and merchant banking.

Production and operation management

Production and operation management is the area of research which quantifies implementation of the
research results on huge cost and process implications. Research in this area is highly focused and
problem analysis, specific. The decision areas in which research studies are carried out include
product/service design and development, resource allocation and capacity planning, demand forecasting
and decision analysis, production scheduling and material requirement management, work design
planning and monitoring, project management and maintenance management studies, logistics and
supply chain and inventory management analysis, quality estimation and assurance studies including
total quality management and quality certification analysis, just in time technology and economic order
quantity are topics adapted by organizations for optimizing operations.
Cross functional research

Since business management is an integrated amalgamation of all these and other areas sometimes
requires a unified thought and approach to research. These studies require an open orientation where
experts from across the disciplines contribute to and gain from the study. For example, an area such as
new product development requires the commitment of the marketing, production and consumer insights
team to exploit new opportunities. Other areas requiring cross function efforts are corporate governance
and ethics, technical support systems, enterprise resource planning systems, knowledge management,
data minding and warehousing are integrated areas requiring research on managing coordinated efforts
across divisions