Unit-1

Business Research

Introduction
Research is a systematic and objective process of collecting, recording, organizing
and interpreting data that aids in decision making.
Research is a diligent enquiry and careful search for new knowledge through
systematic, scientific and analytical approach in any branch of knowledge. Constant
search and research are the guiding factors of research which help to discover new facts.
The search of new knowledge also helps to accept, reject or modify existing facts or
knowledge. It is a systematic effort to gain knowledge, truth or broad principles in a
verifiable and objective way.
According to Slessinger and Stevenson, social research aims to “extend, collect or
verify knowledge”, whether that knowledge aids in the construction of theory or in the
practice of an art.”

What is Business Research?

1. “Business research is a systematic inquiry whose objective is to provide information to
solve managerial problems.” Donald and Pamela.
2. “Research is the application of human intelligence to problems whose solutions are not
available immediately”- Hertz
3. “Research is creative and original intellectual activity carried out in library, laboratory
or in the filed in the light of previous knowledge”- Klopsteg
4. “Research is any organized inquiry carried out to provide information for the solution
of a problem. Business research is a systematic inquiry aimed at providing information to
solve managerial problems” – Emory and Cooper
5. “Business research is a function which links the organization, the customer, and the
public through information – information used to identify opportunities and define
problems; generate evaluate and refine actions; and monitor performance” American
Marketing Association.
6. “Business research is a formalized means of designing, gathering, analyzing, and
reporting information that may be used to solve a specific management problem” – Burns
and Bush.
The study of business research provides with the knowledge and skills one need to solve
the problems and meet the challenges of a fast-paced decision-making environment.

Role and scope of business research

Most of the modern organizations face problems which are beyond the control of the
management to solve it and lack training to take adequate measures on those problems
that cripple the smooth running of the organization. Business research provides training
in a disciplined process for conducting an inquiry into those managerial problems. There
are three factors that stimulate interest in a scientific approach to decision making;
1. The manager’s increased need for more and better information.
2. The availability of improved techniques and tools to meet this demand.
3. The resulting information overload if discipline is not employed in the process.

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Business research is used;
 To identify and define market opportunities. Business research helps to define
those wants and needs in the market that is not being met by the competition.
Managers need information through research to help them identify market
opportunities.
 To generate and refine management actions. Business research help managers
to determine which plan or strategy will best meet opportunities.
 To monitor strategies and plans. Any control system requires feedback of
information to management. Business research brings that information to
management personnel, allowing them to compare actual performance with
desired performance standards.

Managerial value of business research

The last two decades have witnessed dramatic changes in the business environment.
These changes have created new knowledge needs for managers and new publics to
consider when evaluating any decision. Other knowledge demands have arisen from
problems with mergers, trade policies, protected markets, technology transfers, and
macroeconomic savings-investment issues. The trend toward complexity has increased
the risk associated with business decisions, making more importance for a sound
information base. Some factors are mentioned below which characterize the complex
business decision-making environment, demand that managers have more and better
information on which to base decisions;
 There are more variables to consider in every decisions
 More knowledge exists in every field of management.
 Global and domestic competition is more vigorous.
 The quality of theories and models to explain tactical and strategic results is
increasing.
 Workers, shareholders, customers and the general public are demanding to be
included in company decision-making.
 Organizations are increasingly practicing data mining, learning to extract
meaningful knowledge from volumes of data contained within internal databases.
 Use of computers gave capability to analyze data to deal with today’s complex
managerial problems.
 Communication and measuring techniques within research have been enhanced.

Importance of research in any field:

The ultimate goal of research in any field is:
1. To generate accurate information for use in decision making to solve economic,
social, environmental and managerial problems
2. To generate theories and principles in the given field and to increase the pace of
knowledge development in the field.
3. To reduce the risk of making wrong decisions by reducing the uncertainty of
decisions.

When Business Research is to be conducted?

The question refers to the feasibility of research project:

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(i) The research topic should be researchable
(ii) The research problem should be new: There is no need to study a problem that had
already successfully studied by other researchers. In order to avoid such
duplications it is necessary to assess thoroughly the record of the previous studies
related to the selected topic. However, this doesn’t mean that a problem which has
been studied in the past or somewhere else no longer worth of study. The problem
can be repeated to verify the significance and conclusions or to extend its validity in
a situation completely different from the previous one.
(iii) The expected research result should be significant. The researcher has to be
convinced that the final result of the research will contribute a lot for solving a
problem or formulating strategies and development policies.
(iv) Sufficient time should exist: Systematically conducting research takes time. Thus if
sufficient time is not available for the whole research endeavor, research should not
be conducted.
(v) The data to the research problem should be easily available.
(vi) The methods and procedures of data collection and analysis should be manageable.
Methods of data collection have to be exactly known by the researcher and data
analysis tools should also be within the capacity of the researcher.
(vii) The research problem should be financially feasible. The value of the research
information should exceed the cost of conducting research. (Cost benefit analysis).
(viii)Optimum administrative facilities with minimum discomfort. To complete the
research project successfully, there should exist optimum administrative facilities
from the very beginning of research planning to its final completion.

Different types of Business research studies

The different types of business research studies can be classified as;
1. Reporting
A reporting study may be made only to provide an account or summation of some
data or to generate some statistics. The task may be quite simple and data may be readily
available. Such a study usually requires little inference or conclusion drawing. A
reporting study calls for knowledge and skill with information sources and gatekeepers of
information sources.

2. Descriptive
A descriptive study tries to discover answers to the questions who, what, when,
where and sometimes, how. The researcher attempts to describe or define a subject, often
by creating a profile of a group of problems, people, or events. Such studies may involve
the collection of data and the creation of a distribution of the number of times the
researcher observes a single event or characteristic (research variable), or they may
involve relating the interaction of two or more variables. Descriptive studies may or may
not have the potential for drawing powerful inferences. Organizations that maintain
databases of their employees, customers and suppliers already have significant data to
conduct descriptive studies using internal information.

3. Explanatory

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 An explanatory study goes beyond description and attempts to explain the reasons
for the phenomenon that the descriptive study only observed. Research that studies the
relationship between two or more variables is also referred to as a correlational study. In
an explanatory study, the researcher uses theories or at least hypothesis to account for the
forces that caused a certain phenomenon to occur.

4. Predictive
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. A
predictive study is just as rooted in theory as explanation. This type of study often 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 or future values.

Types of Research in Management

There are two general categories of research: Basic research and applied research.

Basic Research: Also known as pure research, it is usually conducted to develop

principles, theories and models and is used to expand the limits of knowledge. It is also
used to evaluate theories and models. It is too challenging and requires the accumulation
of knowledge and is mostly used for elder scientists and professors.

Applied Research: Also known as action research, development research, empirical

research conducted when decisions must be made about a specific real life problem.
Applied research has a problem-solving emphasis. It is conducted when there is a desire
to formulate developmental strategies and policies; when you need action to combat the
existing or possible problems.
Therefore basic research tries to extend the knowledge in a given field and applied
research tries to solve problems. Applied research is directed much more to making
immediate managerial decisions.

Types of Applied research:

Applied research can be classified on the basis of either technique (methods) or
purpose (function):
Research by their technique (or method) can be further classified as experimental, survey
and observation.

1. Experimental: (or controlled experiment): A researcher would at first create

two matched groups as similar as possible to test his/her hypothesis. One group
is considered as the experimental group, while the other would be designated as
the control group. The experimental group is the one on which the tests are
conducted. The role of the control group is very critical since it serves to isolate
the experimental stimulus as the single source of change among the experimental
stimulus.
2. Survey (Case study): It represents a comprehensive description and explanation
of many components of a given social system. The researcher seeks to collect
and examine as much data as possible regarding the subject of his study.

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 3. Observation: The researcher seeks to become a member of the social event or
group under study. He may or may not reveal his research role. By impressing
himself in the actual social events in progress, the researcher will be in a position
to obtain a far greater depth of knowledge.

On the basis of purpose (function) research can be classified as: Exploratory, descriptive
and causal.
1. Exploratory Research: It is an initial research conducted to clarify and define the
nature of an ambiguous problem. It is conducted to gain familiarity with a phenomenon
or to achieve new insights into it. The researcher aims at formulating more precise
questions that future research can answer, and discovering new insights. It may be the
first stage in the sequence of studies. Its result may not be used as conclusive evidence to
determine a particular course of action. It is usually conducted with the assumption that
subsequent research will be required to provide conclusive evidence. It uses qualitative
data and tends to be more open using range of evidence and discovering new issues.
Techniques of exploratory research are as follows:
1. Experience survey: It is an exploratory research technique in which individuals
who are knowledge about a particular research problem are surveyed or asked.
2. Secondary data analysis: Literature review or literature survey, it deals with
preliminary review of data collected for another purpose to clarify issues in the
early state of a research effort.
3. Case study: Intensively investigates one or a few situations similar to the
researcher’s problem situations.
4. Pilot survey: It is a brief preliminary survey often using a small, convenience
sample conducted to test the survey instruments and data collection method,
before the project details are finalized and the formal survey conducted.
Much, but not certainly, research provides qualitative information. It will provide
clue information; we can’t say this much or this percentage. Generally the purpose of
exploratory research is to clearly and precisely define the problem.
2. Descriptive research: The major purpose of descriptive research is to describe the
characteristics of a population or phenomenon. It attempts to give answer to questions
like who, what, when, where, how. The answer to questions to why is not given by
descriptive research. Unlike exploratory research, descriptive studies are based on
some previous understanding of the nature of the problem. Its purpose is to describe
the state of affairs, as it exists at present. The researcher has no control over the
variables, but only reports what has happened or what is happening.
3. Causal research: To identify the cause or effect relationship between variables
where the research problem has already been narrowly defined. Ex: relationship
between fertilizers application and land productivity, influences of price, packaging,
advertising on the volume of sales of a product, the effect of training on labor
productivity. Exploratory and descriptive research usually precedes cause and effect
relationship studies.

Other types of research:

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 1. Analytical Vs Descriptive research: In analytical research, the researcher has to
use facts or information already available, and analyze these to make a critical
evaluation of the material.
2. Active research Vs Evaluation research: Both are parts of applied research.
Active research- treats knowledge as a form of power and abolishes the line
between research and social action, ex: the purpose of gender research may be to
create social change or to contribute to the advancements of knowledge. It makes
social impact analysis which attempts to estimate the likely consequences of
planned change. It is mainly used for planning and making choice among
alternative policies. Social impact analysis often includes cost benefit analysis.
Evaluation research- address the question, “Did it work?” Ex: has the bonus
system increase productivity?
3. Quantitative Vs Qualitative Research: Quantitative research is based on the
measurement of quantitative figure or quantity or amount. i.e., it is applicable to
phenomenon that can be expressed numerically.
Qualitative research is concerned with qualitative phenomenon, i.e., phenomenon
relating to or involving quality or kind. All kinds of motivation research, all kinds
of attitude research or opinion research are different qualitative research studies.
It is particularly important in behavioral sciences where the underlying motive is
to discover the underlying motive of human behavior.
4. Conceptual Vs Empirical research: This classification is similar to the
fundamental Vs applied research. Conceptual research is related to some abstract
or theory, it is conducted by philosophers to develop new ideas or reinterpret the
existing ones. Empirical research relies on experience or observation alone,
without due regard to system or theory. It is data base research or also called
experimental research, coming up with conclusions, which are capable of being
verified by observations or experiments.
Time dimension in Research: In terms of time dimension, quantitative research may be
divided in two groups: Cross sectional research (a single point of time) and Longitudinal
research (multiple points of time).
Cross Sectional research: Takes a snap shot approach to social world. It is the simplest
and less costly research approach. Limitation: It cannot capture social process or change
Longitudinal research: Examines feature of people or other unites more than one time.
It is usually more complex and costly than cross-sectional but it is more powerful
especially with respect to social changes.
Logic in Research: research is usually conducted in two modes, i.e., by inductive
reasoning and the other by deductive reasoning.
Inductive reasoning approach is said to be, “Particular to general approach”, and it
involves samples, i.e., studying a part of the entire population and the features which hold
good for the sample are generalized for the entire population. Ex: to know whether a
patient is suffering from malaria the physician uses a drop of the blood of the patient and
concludes that the patient is suffering from malaria. i.e., a generalization of the disease
throughout the body is made on the basis of the single drop of the blood (sample). To
induce is to draw a conclusion from one or more particular facts or pieces of evidence.

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In deductive reasoning approach it is said to be “General to particular”, and it involves
studying the entire population (census) for drawing conclusions. Deduction is the form
of inference that purports to be conclusive- the conclusion must necessary follow from
the reasons given.
The way a logical conclusion can be drawn from the following statements would make
the concept clear.
E.g. 1. All regular employees can be trusted.
2. John is a regular employee
Conclusion: John can be trusted.
Scientific method in research
It is a way of obtaining knowledge based on objective observations. Science deals
with phenomena that are observable. Scientific experiments are empirical and constantly
explore new body of knowledge and discover new concepts and ideas. It is progressive in
nature.
George Lundbery defines scientific research as “one consisting of systematic
observation, classification and interpretation of data. Observation, hypothesis, and
verification are the three important components of scientific enquiry.
The following are the steps in scientific research;
1. Observation: what to be studied
2. Recording: recording all relevant things observed
3. Classification: systematic arrangement of data collected in a logical manner
4. Generalization: based on the data analyzed after data collected make a conclusion.
5. Verification: the generalization made should be tested for its validity whether to
accept or reject.

The two general traits characterize any research are;

1. Validity: It is the characteristic used to describe that measures what it claims to
measure.
2. Reliability: It is characteristic that allows repeating the experiment again and
again by any researcher- always with the same results. E.g experiments conducted
in laboratories.

Distinction between scientific and non-scientific methods

Sl. No Attributes Scientific Non-Scientific
1 Objectivity Judgment on facts Based on pre-conceived
notions or intuitions
2 Accuracy of Maximum precision and Less accurate.
measurement accuracy due to measuring
devices
3 Continuity Aggressive search for evidence The results are proved
and hence it is exhaustive and through hypothesis and
continuous. hence results are reliable
and hence less scope for
continuity.

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Characteristics of good research
Good research generates dependable data, being derived by practices that are
conducted professionally and that can be used reliably for managerial decision making.
Good research follows the standards of the scientific method. The characteristics of
scientific method and the managerial dimensions of each are discussed below;

No Characteristics of research Managerial dimensions

1 Purpose clearly defined  Researcher distinguishes between symptom of
organization’s problem, the manager’s perception of the
problem, and the research problem.
2 Research process detailed  Researcher provides complete research proposal.
3 Research design thoroughly  Exploratory procedures are outlined with constructs
planned defined.
 Sample unit is clearly defined along with sampling
methodology.
 Data collection procedures are selected and designed.
4 High ethical standards applied  Safeguards are in place to protect study participants,
organizations, clients, and researchers.
 Recommendations do not exceed the scope of the study.
 The study’s methodology and limitations sections reflect
researcher restraint and concern for accuracy.
5 Limitations frankly revealed  Desired procedure is compared with actual procedure in
report.
 Desired sample is compared with actual sample in report.
 Impact on findings and conclusions is detailed.
6 Adequate analysis for decision  Sufficiently detailed findings are tied to collection
maker’s needs. instruments.
7 Findings presented  Findings are clearly presented in words, tables and
unambiguously. graphs.
 Findings are logically organized to facilitate reaching a
decision about the manager’s problem.
 Executive summary of conclusions is outlined.
 Detailed table of contents is tied to the conclusions and
findings presentation.
8 Conclusions justified  Decision- based conclusions are matched with detailed
findings.
9 Researcher’s experience reflected  Researcher provides experience/ credentials with report.

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