RM & IPR MOdule 1

MODULE 1 INTRODUCTION TO BUSINESS RESEARCH:

Meaning, types, process of research- management problem, defining the research
problem, formulating the research Hypothesis, developing the research proposals,
research design formulation, sampling design, planning and collecting the data for
research, data analysis and interpretation. Research Application in business decisions,
Ethical issues in business research. Features of a good research study.
……………………………………………………………………………………………………………………………….......
Meaning:
Research is defined as the creation of new knowledge and/or the use of existing
knowledge in a new and creative way so as to generate new concepts, methodologies
and understandings. This could include synthesis and analysis of previous research to
the extent that it leads to new and creative outcomes.
 Research in common man’s language refers to “search for knowledge”
 Research is an art of scientific investigation.
 The Advanced Learner's Dictionary of Current English lays down the meaning of
research as, a careful investigation or inquiry especially through search for new
facts in any branch of knowledge”.
 It is also a systematic design, collection, analysis and reporting the findings and
solutions for problems of a company.
 Research is a structured enquiry that utilizes acceptable scientific methodology to
solve problems and create new knowledge that is generally applicable.
 Research is the systematic process of collecting and analyzing information (data)
in order to increase our understanding of the phenomenon about which we are
concerned or interested.
 Research is an art of scientific investigation. It is also a systematic design,
collection, analysis and reporting the findings and solutions for the problems of a
company.
Definition:
Research can be defined as an organized and systematic study of materials and sources
in order to discover new things and establish facts and reach new conclusions.
Essentially speaking, research involves a well-developed plan, a systematic approach to
develop new theories or finding solutions to various problems.
According to Clifford Woody, “research comprises defining and refining problems,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating
data, making decisions and reaching conclusions to determine whether they fit the
formulating hypothesis”

Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur 1

 RM & IPR MOdule 1

BUSINESS RESEARCH:
Business research is a process of acquiring detailed information of all the areas of
business and using such information in maximizing the sales and profit of the business.
Such a study helps companies determine which product/service is most profitable or in
demand.
 A Systematic inquiry that provides information to guide managerial decisions.
 Systematic and objective process of gathering, recording and analyzing data for
aid in making business decisions.
TYPES OF RESEARCH
1. Basic research:
2. Applied Research
3. Qualitative Research
4. Quantitative Research
5. Historical Research
6. Exploratory Research:
7. Descriptive Research
8. Causal Research
9. Simulation research
1. Basic research:
Research for the sake of enhancing knowledge is termed as basic research.
• It is also called as theoretical research
• Basic or pure or fundamental research is done with the intention of empowering the
unknown, Undertaken for the sake of knowledge without any intention to apply or
practice.
It begins by defining research as a systematic process aimed at obtaining and confirming
new reliable knowledge. It then discusses characteristics of research, noting that
research is systematic, seeks new knowledge, and the knowledge must be reliable.
2. Applied Research
Applied research is the use of empirical methods to collect data for practical purposes. It
accesses and uses accumulated theories, knowledge, methods, and techniques for a
specific state, business, or client-driven purpose.
Features:
 It is also termed as need based research having high practical relevance.
 Specific in nature, result oriented and is driven by clear aim.
 Undertaken to find solutions for real-life problem requiring an action or policy
decision.
Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur 2
 RM & IPR MOdule 1

 It may incidentally contribute to the development of theoretical knowledge.

 Can contribute new facts about existing theories.
 Puts theories to test.
 May aid in conceptual clarification.
3. Qualitative Research
An unstructured, exploratory research methodology based on small samples that
provides insights and understanding of the problem setting.
Features:
 The aim is a complete, detailed description.
 Data is in the form of words, pictures or objects.
 Case studies, group interviews
4. Quantitative Research
A research methodology that seeks to quantify the data and typically applies some form
of statistical analysis.
Features:
 The aim is to classify features, count them, and construct statistical models in an
attempt to explain what is observed.
 Data is in the form of numbers and statistics.
 Experiments and surveys.
5. Historical Research
Historical research is a process of collecting and interpreting data about past events or
ideas in order to find how they affected the present events and ideas.
Features:
Historical study is a study of past records and data in order to understand the future
trends and development of the organization or market.
 There is no direct observation.
 Research has to depend on the conclusions or inferences drawn in the past.
 Main objective is to derive explanation and generalization from the past trends in
order to understand the present and anticipate the future.
 Example: Investors in the share market study the past records or prices of shares
which he/she intends to buy. Studying the share prices of a particular company
enables the
 Investor to take decision whether to invest in the shares of a company.
6. Exploratory Research:

Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur 3

 RM & IPR MOdule 1

Exploratory research is research conducted to investigate a problem that is not clearly

defined, has been under-investigated, or is otherwise poorly understood.
Features:
 This kind of research is carried out at the very beginning when the problem is not
clear or vague.
 Provides insights into and comprehension of an issue or situation.
 Often relies on secondary research such as reviewing available literature and/or
data, or qualitative approaches such as informal discussions with consumers,
employees, management or competitors and more formal approaches through
in-depth interviews, focus groups, case studies or pilot studies.
 Example: Exploring the reasons for sales decline of a product in accompany.
7. Descriptive Research
Descriptive research aims to accurately and systematically describe a population,
situation or phenomenon. It can answer what, where, when and how questions, but not
why questions. A descriptive research design can use a wide variety of research methods
to investigate one or more variables.
Features:
 Describes data and characteristics about the population or phenomenon being
studied.
 Answers the questions who, what, where, when and how.
 Describes the characteristics of the respondent in relation to a particular product.
Deals with demographic characteristics of the consumer.
 Example: Degree of viewing TV Channels, its variation with age, income level,
profession of respondent as well as time of viewing.
8. Causal Research
Causal research, also known as explanatory research or causal-comparative research,
identifies the extent and nature of cause-and-effect relationships between two or more
variables. It's often used by companies to determine the impact of changes in products,
features, or services process on critical company metrics.
Features:
 Conducted to determine the cause and effect relationship between the two
variables.
 Way of seeing how actions now will affect a business in the future.

Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur 4

 RM & IPR MOdule 1

9. Simulation research
Simulation, in industry, science, and education, a research or teaching technique that
reproduces actual events and processes under test conditions. Developing a simulation
is often a highly complex mathematical process.
Features
 This research involves the creation of an artificial environment which is very
similar to the real environment. Therefore with in the artificial environment the
variables are manipulated and studied.
 Ex: study of consumer buying behavior by giving specific amount of time and
money in a mall.
PROCESS OF RESEARCH

Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur 5

 RM & IPR MOdule 1

1.Management problem

2. Defining the research

problem

3. Formulating research
hypothesis

4. Developing research
proposals

5. Research design
formulation

6. Sample design

7. Planning and collecting

data for research

8. Data analysis and

interpretation

1. MANAGEMENT PROBLEM
When a problem has been clearly and accurately identified can a research project be
conducted properly? It is a concise description of the issues that need to be addressed
by a problem solving team and should be presented to them (or created by them) before
they try to solve the problem. It asks what the decision maker needs to do. Mostly
action oriented and Focuses on symptoms.
2. DEFINING THE RESEARCH PROBLEM
The research problem is a general statement of an issue meriting research. Its nature
will suggest appropriate forms for its investigation. Problem definition involves stating
the general marketing research problem and identifying its specific components. Only

Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur 6

 RM & IPR MOdule 1

when research problem has been clearly defined can research be designed and
conducted properly.
3. FORMULATING THE RESEARCH HYPOTHESIS
A good hypothesis relates and explains the known facts. It should also predict new facts.
It must be stated in such a way that we can test it by experimentation or further
observation, or it is of no scientific value. Also, it must state in a way that would allow us
to show if it is incorrect, i.e., it must be "falsifiable." A scientist must be willing to accept
the possibility that his or her hypothesis is incorrect, and this point often separates true
science from pseudoscience. (In fact, most scientists work hard to develop good
hypotheses, and then spend a great deal of effort trying to disprove them. Pseudo
scientists tend to settle on a hypothesis that suits their needs or expectations, and then
spend a great deal of effort trying to prove that they are "true".
4. DEVELOPING THE RESEARCH PROPOSALS
Research proposal is outline, a draft plan of a research work proposed by the researcher.
It is also termed as synopsis. It contains:
 A statement of the problem
 The proposed methodology
 The benefits of the research
 The reasons required to conduct the research
Contents of research proposal
The research proposal contents differ depending on the type of proposal and intended
audience.
1. Problem statement
2. Research objectives
3. Literature review
4. Importance/ benefits of study
5. Research design
6. Data analysis
7. Nature and form of results
8. Schedule
9. Facilities and special resources
10. Bibliography
11. Appendices
12. Measurement instrument

5. RESEARCH DESIGN FORMULATION

Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur 7

 RM & IPR MOdule 1

A research design is a framework or blueprint for conducting the marketing research

project. It details the procedures necessary for obtaining the required information, and
its purpose is to design a study that will test the hypotheses of interest, determine
possible answers to the research questions, and provide the information needed for
decision making. Decisions are also made regarding what data should be obtained from
the respondents (e. g, by conducting a survey or an experiment). A questionnaire and
sampling plan also are designed in order to select the most appropriate respondents for
the study.
The following steps are involved in formulating a research design:
1. Secondary data analysis (based on secondary research)
2. Qualitative research
3. Methods of collecting quantitative data (survey, observation, and
experimentation)
4. Definition of the information needed
5. Measurement and scaling procedures
6. Questionnaire design
7. Sampling process and sample size
8. Plan of data analysis

6. SAMPLE DESIGN
Sampling is a means of selecting a subset of units from a target population for the
purpose of collecting information. This information is used to draw inferences about the
population as a whole. The subset of units that are selected is called a sample. The
sample design encompasses all aspects of how to group units on the frame, determine
the sample size, allocate the sample to the various classifications of frame units, and
finally, select the sample. Choices in sample design are influenced by many factors,
including the desired level of precision and detail of the information to be produced, the
availability of appropriate sampling frames, the availability of suitable auxiliary variables
for stratification and sample election, the estimation methods that will be used and the
available budget in terms of time and resources.
7. PLANNING AND COLLECTING THE DATA FOR RESEARCH
Data collection is the process of gathering and measuring information on variables of
interest, in an established systematic fashion that enables one to answer stated research
questions, test hypotheses, and evaluate outcomes. Generally there are three types of
data collection and they are:
 Surveys: Standardized paper-and-pencil or phone questionnaires that ask
predetermined questions.

Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur 8

 RM & IPR MOdule 1

 Interviews: Structured or unstructured one-on-one directed conversations with

key individuals or leaders in a community.
 Focus groups: Structured interviews with small groups of like individuals using
standardized questions, follow-up questions, and exploration of other topics that
arise to better understand participants.

8. DATA ANALYSIS AND INTERPRETATION

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data
with the goal of discovering useful information, suggesting conclusions, and supporting
decision-making. Data analysis has multiple facets and approaches, encompassing
diverse techniques under a variety of names, in different business, science, and social
science domains.
Literature review
It involves a comprehensive review of published and unpublished work from the
secondary sources of data available in the relevant area of study.
Importance of literature review:
 Identification of problem for the study
 Monitors the repetition
 Helps avoiding mistakes
 Creates appropriate theoretical structure
 Facilitates interpretation of study
RESEARCH APPLICATION IN BUSINESS DECISION
Businesses use research to ascertain the success of their advertising. For instance, a
dairy manufacturer may want to find out what percentage of the people saw its latest
TV commercial. The dairy manufacturer may find that more individuals become aware of
its advertising the longer the TV ad runs. The company may decide to run its TV ads at
different times if few people have seen the ads.
A business can make well-informed decisions due to research. In the research process,
the business will be able to acquire details about key business areas, analyze it, create a
strategy and distribute business information. Reports, presented to the top
management, often contain details on consumer and employee preferences and all the
available channels for sales, marketing, finance and production. Management makes use
of these details to determine the best strategy.
Research is a necessity at all stages and phases of business operations. Initial research is
needed to evaluate whether getting into the given kind of business would be profitable
and whether there exists demand for the proposed product regarding the staff, a
correctly carried out research can uncover important details on their satisfaction
Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur 9
 RM & IPR MOdule 1

quotient, the difficulties experienced by them and how the problems related to
relationships at the workplace could be handled. An analysis into the results would allow
the management to bring about changes for the all-round effective functioning of the
organization and its employees. The workers can be trained and coached in line with the
needs. This would help personal as well as professional development improving overall
organizational performance.
Research is important for managerial decision making. All strategic business areas are
analyzed and evaluated; then techniques for more efficient procedures are created.
Through proper research, the organization will be able to pick the most effective,
productive and profitable one. Research could possibly be applied to marketing,
production, finance, IT and Human resources.
Research can answer questions for various problems, from getting a grip on industry
trends, identifying new products to produce and deliver to the market, or deciding on
which site to locate an outlet, to better understanding what it needs to fulfill customer
demands. Research can also help evaluate if a product is accepted in the market.
Research aids expansion into new markets
1.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.
2.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,

1
Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur
0
 RM & IPR MOdule 1

turnover and attrition and work life balance studies. Critical success factor analysis and
employer branding are some emerging areas in which HR research is being carried out.
3.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.
4.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.
5.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.
6.Industrial Research:

1
Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur
1
 RM & IPR MOdule 1

Industrial research is a practical concept and is concerned with the wellbeing of a

company. It is a planned effort to gain better information and improve the new and
existing products, services and processes. Some of the major areas where industrial
research is carried-out are: Finding ways to improve the quality of products and services.
7) Production Research:
The purpose of production research is to gather information on the content of
production related issues. The methods of production research could be primary
research; this means researching via books and setting up focus groups to gather
people's opinions.
Product research helps evaluate market demand, analyze conditions and competition,
and identify your target audience's needs, expectations, and pain points. The goal is to
create products that meet user needs, reduce risks, and enhance user satisfaction.
8) Measuring advertising effectiveness:
Companies use business research to determine the success of their advertising.
9) Guaranteeing adequate distribution:
Businesses can also use research to guarantee sufficient distribution of their products.
ETHICAL ISSUES IN RESEARCH
1. Informed consent
Researchers should provide potential participants with relevant information about the
research, ensure they understand the implications of participating, and obtain their
agreement, often in writing.
2. Confidentiality
Sharing customer information without their permission is unethical and can result in
legal penalties.
3.Anonymity
Researchers should protect the identities of their respondents.
4.Data analysis
Improper data analysis can lead to false or misleading conclusions.
5.Potential for harm
Ethical guidelines help ensure that research doesn't harm people physically or
emotionally, even if harm isn't intended.
6.Deception
1
Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur
2
 RM & IPR MOdule 1

Deception occurs when participants aren't fully informed about the research's
procedures and goals.

FEATURES OF A GOOD RESEARCH STUDY

1.Research design
A well-designed research study is important for ensuring that the results are valid,
reliable, and generalizable. Research design outlines the procedures and methods that
will be used to carry out the research project.
2.Research goals
Clearly defined research goals are essential for the success of the research.
3.Data collection
Data collection is a vital part of the research process. It can help identify patterns, areas
for improvement, and issues to investigate further.
4.Data analysis
Data analysis is the most crucial part of any research. It involves interpreting data to
determine patterns, relationships, or trends.
5.Research question
A good research question is focused yet simple, and is based on a thorough literature
search and deep insight into the specific area or problem being investigated.
6.Citing sources
Citing sources is an important component of research because it shows that the
researcher has located appropriate and reputable sources that support their thesis or
claim.
7.Valid
Research, to be considered authentic, has to be validated first, which means that it
shows how accurately it measures something. We need to check if the research
measures what it claims to measure and that the results closely correspond to real-
world values; only then will it be considered valid.
8.Empirical
Research is empirical means that any conclusion drawn is based upon the ethical or hard
evidence gathered information collected from observations and real-life experiences.
1
Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur
3
 RM & IPR MOdule 1

9.The foundation of knowledge

Any research done adds to the existing knowledge available to us and sometimes even
opens up a new dimension of the knowledge category itself.
10.Objectives
Any good research should have a certain objective towards which the researcher is
working. This may require the formulation of a proper hypothesis as well.
11.Generalizability
Generalizability means that research findings should apply to a larger population despite
being drawn from a sample.
12.Free from biases
For research to be authentic, the research should be bias-free and objective rather than
subjective. The findings and sample selection (unless in some special cases as
judgmental or convenience sampling) the selection should be done based on logic and
not influenced by the researcher in any case.
13.Reproducible
This means that the researcher should be getting the same test results if the same
methodology is used on a data set similar to that of the original one. This increases the
reliability of any test or research.
14.Logic
There has to be a concrete logic behind every step in research as to why a certain
sample is chosen, why certain questions are asked in the questionnaire, etc.
15Directed towards the solution of a problem
Any researcher is supposed to identify the problems and do an in-depth study on the
probable solutions to them by analyzing every aspect of it.

1
Manjula sm, ASSt. prof. mba dept., HMSIT, TUmkur
4