Research Methods for

Business
A Skill Building Approach

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 CHAPTER 1
INTRODUCTION TO RESEARCH
?What is Research
■ Research is the process of finding
solutions to a problem after a thorough
study and analysis of the situational
factors.

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?What is Research
■ Managers in organizations constantly
engage themselves in studying and
analyzing issues and hence are involved
in some form of research activity as
they make decisions at the workplace.

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Research Process
Applications of Research in
Marketing
Consumer Behavior Analysis:

■ Understanding how consumers make purchasing decisions.

Market Segmentation:

■ Identifying and categorizing target markets based on

demographics, psychographics, and behavior.

Advertising and Promotion Optimization:

■Testing the effectiveness of different advertising channels and
messaging.

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Applications of Research in
Operations
Supply Chain Optimization:

Analyzing supply chain processes to identify bottlenecks and

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inefficiencies.

Inventory Management:

Conducting research to determine optimal inventory levels and

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reorder points.

Capacity Planning:

Conducting research to forecast demand and plan for production

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capacity.

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Applications of Research in
HRM
Talent Acquisition and Recruitment:

Conducting research on effective recruitment strategies and

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channels.

Employee Retention:

Researching factors influencing employee turnover.

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Performance Management:

Researching performance
■ appraisal methods and feedback
mechanisms.

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Applications of Research in
Finance
Investment Analysis and Portfolio Management:

Conducting research to evaluate the performance and risk of

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various investment options.

Behavioral Finance:

Studying psychological factors influencing investor behavior.

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Financial Econometrics:

■Researching statistical methods for analyzing financial data.

■Applying econometric models to study relationships between
variables in the financial markets.

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 Pure and Applied Research

Pure
⚫ it is the study of search of knowledge.

Applied
⚫ It is the study of finding solution to a
problem.
 Purpose of Pure and Applied Research

⚫ Pure
⚫ It can contribute new facts
⚫ It may aid in conceptual clarification
⚫ It may integrate previously existing theories.
Applied
⚫ It offers solutions to many practical
problems.
⚫ To find the critical factors in a practical
problem.
Data Cleaning Operations

⚫ Outliers
⚫ Missing Frequency
⚫ Improper Code
⚫ Logical Errors
⚫ Category Merging
 Examples of Pure Research
⚫Exploring factors that contribute to a creative work environment.
⚫Studying how knowledge is shared among employees within a
company.

Examples of Applied Research

Assessing the impact of a new performance management system in

improving employee performance and organizational outcomes.
Implementing and evaluating the effectiveness of a new CRM
system to enhance customer satisfaction and loyalty.
The Excitement of Research
■ Modern technology has made research
an exciting and a relatively smooth
process.
■ Personal computer with any means to
an Internet connection places one
within easy reach of knowledge of what
is happening in the global markets and
how the world economy is impacting on
business.
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The Excitement of Research
■ Decision making is merely a process of
choosing from among alternative
solutions to resolve a problem and
research helps to generate viable
alternatives for effective decision
making.

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Business Research
■ Business research can be described as a
systematic and organized effort to investigate
a specific problem encountered in the work
setting, that needs a solution.
■ Business research comprises a series of
steps designed and executed, with the goal
of finding answers to the issues that are of
concern to the manager in the work
environment.

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Business Research
■ Steps of business research:
✔ To know where the problem areas exist in the
organization.
✔ To identify as clearly and specifically as
possible the problems that need to be studied
and resolved.
✔ Gather information, analyze the data, and
determine the factors that are associated
with the problem and solve it by taking the
necessary corrective measures.
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Research and the Manager
■ The managers encounter big and small
problems on a daily basis, which they
have to solve by making the right
decisions.
■ In business, research is usually
conducted to resolve problematic issues
in the areas of accounting, finance,
management, and marketing.
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Research and the Manager
■ Problems in Accounting:
- Budget control systems
- Inventory costing methods
- Depreciation
- Time-series behavior of quarterly
earnings
- Transfer pricing
- Taxation methods
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Research and the Manager
■ Problems in Finance:
- The operations of financial institutions
- Optimum financial ratios
- Mergers and acquisitions
- Leveraged buyouts
- Intercorporate financing
- Yields on mortgages
- The behavior of the stock exchange
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Research and the Manager
■ Problems in Management:
- Employee attitudes and behaviors
- Human resources management
- The impact of changing demographics
on management practices
- Production operations management
- Strategy formulation
- Information systems
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Research and the Manager
■ Problems in Marketing:
- Product image
- Advertising
- Sales promotion
- Product distribution
- Product packaging
- Product pricing
- After-sales service
- Consumer preferences
- New product development
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Types of Business Research
■ Research can be undertaken for two
different purposes:
1. To solve a current problem faced by the
manager in the work setting. Such research
is called applied research.
2. To generate a body of knowledge about
how to solve problems that could be
occurred in organizations. This is called
basic research or fundamental research. It
is also known as pure research.
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Examples of Applied
Research
■ Apple’s iPod sales increased by 200% from
2001 to 2008. but the sales decreased by
6% in 2009. What is the reason for this
decrease?
■ The question is: what will apple do about this
problem?

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Examples of Applied Research
■ Xerox is insular and isn’t ready for the
increasingly competitive, high-tech
world. Xerox still relies on old-fashioned
and slow-selling analog copiers for more
than half its revenue and despite its
double-digit growth in digital products
and services, its sales rose just 4%.

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Examples of Applied Research
■ In the Xerox situation, it needs to look
into the efficacy of the analog
technology used in copiers and examine
what should be done to increase
efficiency and promote its sales.

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Examples of Basic Research
■ University professors engage in basic research in an
effort to understand and generate more knowledge
about various aspects of businesses, such as:
- How to improve the effectiveness of information
systems.
- How to integrate technology into the overall strategic
objectives of an organization.
- How to increase the productivity of the employees.
- How to increase the effectiveness of small
businesses.

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Examples of Basic Research
■ These findings later become useful
for application in business
situations.

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Distinction Between Applied and
Basic Research
■ The main distinction between applied and
basic business research is:
- Applied research is specifically aimed at
solving a currently experienced problem.
- Basic research has a broader objective of
generating knowledge and understanding of
phenomena and problems that occur in
various organizational settings.
- Both types of research follow the same
steps of systematic inquiry to arrive at
solutions to problems.
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Managers and Research
■ Managers with knowledge of research
have an advantage over those without.
■ With the ever-increasing complexity of
modern organizations, and the
uncertainty of the environment they
face, the management of organizational
systems has become one of constant
trouble shooting in the work place.
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