Introduction to

Business Research

Module 1
 Research
• In common man’s language ‘’search for
knowledge’’
• Dictionary meaning – ‘’Systematic investigation
to establish facts‘’
• Research is an art of scientific investigation.
• It is also a systematic design, collection, analysis
and reporting the findings and solutions for the
marketing problem of a company
"Marketing research is systematic problem
analysis, model building and fact-finding for the
purpose of improved decision-making and
control in the marketing of goods and services.“

- Philip Kotler

Marketing research as "the systematic

gathering, recording and analyzing of data about
problems relating to the marketing of goods and
services” - AMA
 Research is required to…?
• To identify and find solutions to problems
eg: Why business fluctuations take place once in 3 years?

• To help making decisions

eg : should we maintain the same advertising budget as last year?

• To develop new concepts

eg : CRM, MLM, etc

• To find alternate strategies

eg : should we follow pull or push strategy to promote the product
 Types of Research
1. Exploratory Research
2. Descriptive Research
3. Applied Research
4. Pure/Fundamental Research or Basic Research
5. Conceptual Research
6. Causal Research
7. Historical Research
8. Ex-post Facto Research
9. Action Research
10. Evaluation Research
11. Library Research
 Exploratory Research
• Is carried out at the very beginning when the problem is not
clear or is vague.

• All the possible reasons which are very obvious are eliminated,
thereby directing the researcher to proceed further with
limited options

• Also coined as Preliminary Investigation

 Contd…
Example
Sales decline of Pepsi may be due to:-
1. Inefficient Service
2. Improper Price
3. Inefficient Sales Force
4. Ineffective Promotion
5. Improper Quality
 Descriptive Research
• It’s a fact finding investigation
• Definite conclusions can be arrived at but doesn't establish a
cause and effect relationship
• It describes the characteristics of the respondents in relation to
a particular product
 Contd…
Example
Demographic Characteristics –
Softdrink Consumption or viewing a Netflix program in variation
with
- Age
- Income
- Sex
- Family Types
- Education level, etc
 Applied Research
• Aims at finding a solution for an immediate problem faced by
any business organisation
Example
- Why sales decreased during the last quarter?
- What must have caused Novel Coronavirus?

• It has a practical problem-solving emphasis

• Brings out many new facts
 Contd….
Example
1. Use of fibre glass body for cars/scooters instead of metal
2. To develop a new market for the product
3. Depletion of fossil fuel – a concern for auto industry
 Pure/Fundamental Research or Basic Research

• It is not directly involved with the practical problem

• There is no intention to apply this research in practice
• Gathering knowledge for knowledge’s sake is known as
basic research
 Conceptual Research
• Is generally related to some abstract idea or theory.
• Here the researcher collects the data to prove or disprove his
hypothesis
• Here research is conducted by observing and analyzing already
present information on a given topic
 Empirical Research
• Opposite to conceptual research is Empirical Research
• Empirical research involves conducting any practical
experiments.
 Example

You get Best quality ‘Alphonso Mangoes’ from Ratnagiri

 Historical Research
• Study of past records and data in order to understand the
future trends and development of the organisation or market

Example
Investors in the share market study the past records or prices
of shares which he/she intends to buy
 Ex-Post Facto Research
• Ex-post Facto means ‘’from what is done afterwards’’
• You can only report what has happened or what is happening

Example
• Frequency of shopping, preferences of people, or similar data
 Action Research
Here research is undertaken by direct action

Example
Test Marketing of a product
 Evaluation Research
• Is an example of applied research
• Finds how well a planned programme is implemented.
• It deals with evaluating the performance or assessment of a
project

Example
Rural Employment Programme Evaluation
Swachh Bharat Mission
Skill Development India
 Library Research
• This is done to gather Secondary Data
• Includes notes from the past data or review of the reports
already conducted
• It’s a convenient method whereby both manpower and time
are saved
 Types of Research
(Broad Categories)

I. Descriptive vs. Analytical

II. Applied vs. Fundamental
III. Quantitative vs. Qualitative
IV. Conceptual vs. Empirical
V. Others (Rest all types of research)
 Descriptive v/s Analytical
• The major purpose of descriptive • Analytical approach concentrates
research is the description of the on the process of the final result
state of affairs as it exists at rather giving importance to the
present. result.
• Ex post facto research • Outcome, or the result produced
• Researcher has no control over from the research, is affected by
the variables the one or more individual
• Observation, surveys , Case study elements of the experiment.
method • Regression analysis , Multiple
Equation methods
 Basic v/s Applied
• Basic or fundamental research is • Applied research aims at finding
concerned with generalizations a solution for an immediate
and formulation of a theory. problem facing a society or
• Gathering of knowledge for more business organization.
knowledge • Market evaluation research
• Research on human behavior
Example
Someone conducting basic research on cheating behavior may design a study
examining whether students from divorced families cheat more often than students
not from divorced families. Notice that the research is not done to reduce cheating,
help people who cheat, or any other "applied" aspect, but to increase the
understanding of cheating behavior.
 Quantitative v/s Qualitative
• Quantitative research is based on • Qualitative research is concerned
measurement of quantity with quality or kind.
• Demographic research • Motivation research
• Sample Survey methods , Census • Observation, open ended
survey questions, projective techniques
 Conceptual v/s Empirical
• Conceptual analysis is the • Empirical research relies on
method of analysis where a experience or observation alone
researcher breaks down a without due regard for system or
theorem or concept into its theory.
constituent parts to gain a better • Experimental , data based
understanding of the deeper research
philosophical issue concerning
the theorem.
• Analysis of concepts
Coke
Case of Research Blunder
Research Snapshot
https://www.dawn.com/news/1329368
 What went wrong?
• First, They assumed that taste was the deciding factor in
consumer purchase behavior.

• Consumers were not told that only one product would be

marketed. Thus, they were not asked whether they would give
up the original formula for New Coke

• Second, No one realized the symbolic value and emotional

involvement people had with the Original Coke.
 So what’s the lesson?

MARKET RESEARCH MATTERS

[ When done correctly you gain decision making
power. If done incorrectly, it could end up costing
your company millions ]
 CASE
An Indian Company dealing in pesticides hires a qualified
business management graduate to expand its marketing
activities. Most of the current employees of the company
are qualified chemists with science background. During
their first review meeting, the management graduate
says that the ‘’company should be involved in market
research to get a better perspective of the problem on
hand’’. On hearing this, one of the science graduate
laughs and says ’’there’s is no such thing as marketing or
business research, research is confined to science alone’’

Question: What would be your response?

 Is Marketing Research scientific?

• Marketing Research is not a pure science like physics

and chemistry
• It is a social science
• It uses scientific methods for solving marketing
problems
• It uses an observational and experimental method for
collecting data. These methods are very scientific
 Scientific Method Marketing Research
• Science draws accurate conclusions • Marketing research cannot draw
accurate-conclusions
• Science makes accurate • MR studies human behavior which
measurements keeps on changing
• Science conducts experiments in • IMPOSSIBLE!!!... Human behavior
laboratory under controlled conditions cannot be studied inside a laboratory.

• Science gives accurate results. It gives • Human beings give distinct responses
identical results at different times and at varied times
places
• In science, the researchers are not • They may manipulate (change) the
biased data in order to get a favorite result
 Criteria or
Characteristics of a Good Research

1. A good research should be Systematic

2. A good research should be Logical
3. A good research should be Empirical
4. A good research should be Replicable
Criteria or Characteristics of a Good Research
External Organisations for conducting Marketing Research

• Advertising agencies (Mudra Communication)

• Trade Association (Confederation of Engineering Industries; P&G,HLL,

Godrej have their have their own MR organisations )

• Manufacturers (textile companies have Textile Manufacturing Association)

• Retailers and Wholesalers (RAI, IBEF)

• Govt Agencies (EXIM, DIC, etc)

• Universities & Institutions (IIM, IIFT)

 Business Research
• Is a systematic and objective process of gathering,
recording and analyzing data for aid in making business
decisions.
• In general, it refers to any type of research done when
starting or running a business.

Example
1. Product Analysis
2. Market Analysis
3. Financial Analysis
4. Competitor Analysis
5. Growth Analysis
 Research Snapshot

“Jack Daniels”
Sales of U.S. distilled spirits have declined over the last
10 to 15 years as more Americans turn to wine or beer
as their beverage of choice. As a result, companies like
Bacardi and Brown-Forman, producers of Jack Daniels,
have pursued business development strategies
involving increased efforts to expand into international
markets.

By doing research before launching the product,

Brown-Forman learnt product usage patterns within a
particular culture. Some of the findings from this
research indicate……..
► Japanese use (JD) as a dinner beverage. A party of four or five consumers in a
restaurant will order and drink a bottle of JD with their meal.
► Australian - mostly consume distilled spirits in their homes. Also in contrast to
Japanese consumers, Australians prefer to mix JD with soft drinks or other
mixers. As a result of this research, JD launched a mixture called “Jack and
Cola” and the product has been very successful.
► British - like mixed drinks, but they usually partake in bars and restaurants.

► In China and India, consumers more often chose counterfeit to save money.
Thus, innovative research approaches have addressed questions related to the
way the black market works and how they can better educate consumers
about the differences between the real thing and the counterfeit.

Conclusion
Jack Daniels is now sold extensively, in various forms, and with different
promotional campaigns, outside of the United States.
Research Process
Define Research
problem

Review of Literature

Research Design
Formulation

Fieldwork or Data Collection

Data Preparation & Analysis

Report Writing & Presentation

 Clip 1
Process

Clip 2
Problem Identification &
Possible Solution

Clip 3
Data Collection

Clip 4
Leads to Wrong Solution

Clip 5
No Bees, No Flowers, No
Honey, No Business

Clip 6
Repolination
 Defining a Problem

A problem clearly
stated is a
problem half solved
 Illustration

1. Handout on - Problem Identification

2. Funnel Approach - Class Activity

 Process of problem definition
i. Statement of the problem in a general way
(pilot survey)
ii. Understanding the nature of the problem
iii. Surveying the available literature
iv. Developing the ideas through discussions
(colleagues, friends and others who have enough experience)
v. Rephrasing the research problem
Ad on Examples
Watch: Chinese company under fire for ice cream that
doesn't melt
 12 Angry Men (English), 1957

Dashamukha (Kannada), 2012

Ek Ruka Hua Faisla (Hindi), 1986

The film was nominated for Academy Awards in the categories
of
• Best Director
• Best Picture
• Best Screenplay

• It lost to The Bridge on the River Kwai in all three categories

Contd…