Module 1

Types of Research in Business Research

Design
Business research typically falls into two broad categories:

1. Exploratory Research (Exploratory research is a methodology that

helps researchers gain insights into new or under-studied topics. It's often used in the
early stages of a research project. )

Purpose:
To gain a deeper understanding of a problem or situation when little information is
available.

Characteristics:

Flexible and unstructured

Often qualitative in nature

Used for idea generation, identifying variables, or formulating hypotheses

Not intended for final decision-making

Common Methods:

Literature reviews

In-depth interviews

Focus groups

Observations

Case studies

Example:

A company exploring why customers are losing interest in a product, without having
any prior data.
2. Conclusive Research ( Conclusive research is a structured approach
designed to provide definitive answers to specific research questions, typically through
quantitative methods like surveys and experiments. )

📊 Purpose:
To provide information useful in decision-making, based on clearly defined research
objectives.

Conclusive research is structured and quantitative, and it’s further divided into:

A. Descriptive Research

📈 Goal:
To describe characteristics of a population or phenomenon.

Characteristics:

Pre-planned and structured

Answers "what," "when," "where," and "who"

Often uses surveys and observational methods

Common Techniques:

Surveys

Cross-sectional studies

Longitudinal studies

Example:

A survey to determine customer demographics, satisfaction levels, or buying habits.

B. Causal Research (Experimental Research)

⚙️Goal:
To identify cause-and-effect relationships between variables.

Characteristics:

Highly structured and controlled

Uses experiments (laboratory or field)

 Tests hypotheses about relationships between variables

Key Terms:

Independent Variable: The variable you manipulate

Dependent Variable: The outcome you measure

Control Group: Used for comparison

Example:

Testing whether a new advertising campaign leads to higher sales compared to the old
one.

✅ Summary Table:

Type Purpose Nature Methods

Explorato Understand problems, Interviews, focus
Qualitative
ry generate ideas groups, case studies
Describe
Descriptiv Quantitativ Surveys,
characteristics or
e e observational studies
behavior
Determine cause-and- Quantitativ Experiments, A/B
Causal
effect e testing

The Research Process

The research process is a systematic and logical approach to identifying, analyzing,
and solving business problems or answering business questions.

Key Steps in Conducting Business Research:

1. Problem Definition

What it involves: Clearly identifying and defining the problem or

opportunity.

Why it matters: A well-defined problem sets the direction for the entire
research.
 Deliverable: Problem statement and research objectives.

📝 Example: Why are online sales declining in Q3?

2. Review of Literature (or Background Research)

Purpose: Understand what’s already known about the topic.

Sources: Journals, market reports, case studies, internal data.

🧠 Benefit: Helps to refine research questions and avoid duplication.

3. Formulation of Hypotheses (if applicable)

What it is: A testable statement predicting a relationship between variables.

Used in: Descriptive or causal research.

⚙️Example: “Improved website UX will lead to higher conversion rates.”

4. Research Design

Purpose: Plan how to collect and analyze data.

Types of Research Design:

Exploratory – to understand the problem

Descriptive – to describe market characteristics

Causal – to determine cause-effect

📐 Includes: Sampling plan, data collection method, tools, timeline.

5. Sampling Design

What it involves: Deciding who to study and how.

Types:

Probability sampling (e.g., random sampling)

 Non-probability sampling (e.g., convenience sampling)

🔢 Example: Surveying 200 online customers across different regions.

6. Data Collection

Methods:

Primary Data: Surveys, interviews, focus groups, observations

Secondary Data: Company reports, databases, academic journals

📊 Focus: Accuracy, reliability, and minimizing bias.

7. Data Processing & Analysis

Steps:

Editing and coding data

Analyzing using statistical tools (e.g., SPSS, Excel)

Interpreting patterns and trends

📈 Goal: Turn raw data into meaningful insights.

8. Interpretation & Conclusion

What it does: Connects findings to research objectives or hypotheses.

Purpose: Derive insights and actionable conclusions.

🧠 Example: “Customers are abandoning carts due to high shipping costs.”

9. Report Writing & Presentation

Format: Structured report with intro, methodology, results, conclusions, and

recommendations.

Includes: Charts, tables, visuals

Audience: Decision-makers in the business

📢 Optional: Formal presentation to stakeholders.

✅ Summary Flowchart:

Define the problem

Review literature

Formulate hypothesis (if applicable)

Design research

Design sample

Collect data

Analyze data

Interpret & conclude

Report & present findings

Approaches of Research in Business

Research Methods
In business research, your approach determines how you gather, analyze, and
interpret data. The main approaches are:

1. Deductive Approach

Definition:
Starts with a theory or hypothesis, then tests it using data.

Logic Flow: General → Specific

Top-down reasoning

Process:

Develop a theory

Formulate a hypothesis
 Collect data

Analyze data

Confirm or reject hypothesis

Used In:

Quantitative research (e.g., surveys, experiments)

🔧 Example:
Hypothesis: “Customer loyalty programs increase repeat purchases.”
You test this hypothesis using sales data.

2. Inductive Approach

Definition:
Starts with observations, then builds patterns, themes, or theories.

Logic Flow: Specific → General

Bottom-up reasoning

Process:

Collect data

Identify patterns or themes

Develop theory

Used In:

Qualitative research (e.g., interviews, case studies)

🧠 Example:
You interview several small business owners about challenges during a recession,
then develop a theory on common coping strategies.

In business research, the deductive approach begins with a general theory or hypothesis and
proceeds to test it through data collection and analysis. This method is often associated with
quantitative research, where researchers aim to confirm or reject predetermined assumptions
using structured methods such as surveys or experiments. For example, a company might start
with the hypothesis that “improving customer service will increase customer loyalty,” then
collect customer feedback and purchase data to validate this claim. In contrast, the inductive
approach works the other way around—it starts with specific observations or real-world data
and gradually builds broader theories or insights. This is typically linked to qualitative
research, where researchers explore patterns, themes, or meanings without a fixed
hypothesis. For instance, a business might conduct interviews with dissatisfied customers to
uncover underlying reasons for churn, eventually developing new theories about customer
behavior.

While the deductive approach seeks to test existing theories, the

inductive approach aims to create new ones, making both valuable
tools depending on the research goal and context.

3. Quantitative Research
Definition:
Research based on numerical data and statistical analysis.

Objective: Measure variables, test hypotheses, identify patterns

Nature: Structured, deductive

Data Collection Tools: Surveys, structured observations, experiments

Data Type: Numbers

Example:
A company surveys 500 customers to measure satisfaction scores on a 1–10 scale.

4. Qualitative Research
Definition:
Research based on non-numerical data to explore perceptions, behaviors, and
motivations.

Objective: Gain in-depth understanding

Nature: Unstructured or semi-structured, inductive

Data Collection Tools: Interviews, focus groups, open-ended surveys

Data Type: Text, images, narratives

Example:
Analyzing open-ended feedback from customers to understand emotional responses to
a product.
The quantitative approach in business research focuses on collecting and analyzing
numerical data to measure variables, identify patterns, and test hypotheses. It is often
used when researchers need to quantify behaviors, opinions, or performance metrics,
and the results can be presented in charts, graphs, or statistical reports. For example, a
company may use a customer satisfaction survey with a rating scale to analyze service
quality across regions. This approach is highly structured and is commonly associated
with deductive reasoning, where a theory is tested through measurable data. On the
other hand, the qualitative approach seeks to explore and understand deep insights
into human behavior, motivations, or experiences, usually through non-numerical
data like interviews, open-ended questions, or observations. It is flexible, open-
ended, and often linked with inductive reasoning, where theories emerge from the
data itself. For instance, a business might conduct focus groups to understand how
customers perceive a new brand image. While quantitative research emphasizes “how
much” or “how many,” qualitative research answers the “why” and “how,” making
both approaches essential depending on the nature and goals of the business research.

✅ Comparison Table:

Approach Type Data Goal Logic

Example
Test if
Quantitativ Test a Top-
Deductive Numerical promotions
e hypothesis down
boost sales
Derive
Develop
Descriptiv Bottom- themes
Inductive Qualitative theory from
e up from
data
interviews
Measure
Customer
Quantitati and test Structure
Deductive Numbers satisfaction
ve relationship d
surveys
s
Explore Focus
Qualitativ Words, meaning groups on
Inductive Flexible
e Themes and product
experience perception

Planning a Research Project: Problem Identification

and Formulation

1. Identify the Research Problem

Recognize a gap, issue, or opportunity in the business environment.

 Sources of problems:

Customer complaints

Market changes or competition

Decline in performance or sales

Emerging trends or technologies

Ask: What needs to be solved, improved, or explored?

2. Understand the Business Context

Gather background information (internal reports, market data, stakeholder

input).

Review past research or company data relevant to the problem.

Consider organizational goals and strategic priorities.

3. Define the Problem Clearly

Make the problem specific, focused, and researchable.

Avoid vague or broad statements.

❌ Vague: "Our business is underperforming."

✅ Specific: "Sales of Product X have dropped by 20% in Q2 among

customers aged 25–35."

4. Break Down the Problem (If Needed)

Separate complex issues into smaller, manageable sub-problems.

Focus on one main research problem with supporting questions if necessary.

5. Formulate the Research Problem Statement

A concise and clear statement outlining:

 What the issue is

Why it is important

Whom it affects

What information is needed

🔹 Example:
"This research aims to identify the key factors influencing the decline in customer
retention among online shoppers aged 30–45 in the past six months."

6. Set Research Objectives

Translate the problem into specific, measurable objectives.

Example: “To determine the impact of delivery time, website usability,

and customer service on customer retention.”

Research Design & it’s types:

Research design is the method that a researcher selects to organize their
research project or study. Research designs can provide instructions for
collecting, analyzing and measuring data effectively. Using a research
design is important because:

 It can help you ensure that your research addresses your

research problem.
 It acts as an outline and guide for the entire research
project.
 It can help you organize all the different components of
your research project.

Research design is the overall strategy that outlines how to collect, measure, and
analyze data to answer research questions effectively. The three major types are:

Types

1. Exploratory research design

One common type of research design is exploratory design. The
exploratory research design format is useful when you don't have a
clearly defined problem to study. Often, this type of research design is
less structured than other research design options, and you can use it as
a guide for your initial research to uncover your research problem.

2. Observational research design

Observational design is also a common type of research design. The

observational research design format emphasizes observing your
research topic without altering any variables. When using an
observational research design, you can simply observe behaviors or
phenomena and record them rather than conducting an experiment.

3. Descriptive research design

Descriptive design is another type of research design. The goal of using a

descriptive research design is to describe a research topic, so this type of
research is useful when you need more information about your topic.
Descriptive research design can also help you understand the "what,"
"where," "when" and "how" of your research topic. The one question that
a descriptive research design does not answer is "why."

2. Case study

Another type of observational research design is the case study format.

Case studies are analyses of real-world situations to understand and
evaluate past problems and solutions. Therefore, case studies are useful
when you want to test how an idea applies to real life, and this research
design is especially popular in marketing, advertising and social science.
The five-part case study format includes:

 Title
 Overview
 Problem
 Solution
 Results

5. Action research design

Another type of research design is the action research design. The action
research design format involves initial exploratory analysis and the
development of an action strategy. This design format is collaborative,
and it focuses on finding solutions, making it practical for many research
topics. You can use the action research design when you want to solve
real problems.

6. Experimental research design

Experimental research design is also common. The experimental

research design is especially useful when you want to test how different
factors affect a situation, making this design type very versatile. The
experimental research design uses the scientific method, which includes
elements like:

 Hypothesis: A research hypothesis is a statement that

describes what you predict your research to reveal.
 Independent variable: An independent variable is a
variable that does not depend on other variables.
 Dependent variable: A dependent variable is a variable
that depends on another variable.
 Control variable: A control variable is a variable that
remains constant throughout a research experiment.

7. Causal research design

The causal research design is another type of research design that

researchers commonly choose. The causal research design format
attempts to identify and understand relationships between variables,
which can be valuable across many industries. Causal research designs
typically involve at at least two variables and explore many possible
reasons for a relationship between variables.

8. Correlational research design

Along with the causal research design, the correlational research design
is also commonly used. The correlational research design format, like the
causal format, identifies relationships between variables. When you use a
correlational research design, you measure variables but do not alter
them.

9. Diagnostic research design

Another type of research design is the diagnostic research design. The
diagnostic research design attempts to find the underlying factors that
cause events or phenomena to occur. This research type is useful to help
you understand what's causing problems so you can find solutions.

✅ Comparison Table:

Research
Purpose Nature Data Type Example
Type
Explore new Focus group
Explorator Unstructur
ideas or Qualitative on customer
y ed
problems preferences
Customer
Descriptiv Describe Quantitativ
Structured satisfaction
e characteristics e
survey
Test if price
Experimen Determine Quantitativ
Controlled change affects
tal cause-effect e
sales volume