Divine Word College of Legazpi

SCHOOL OF BUSINESS, MANAGEMENT AND ACCOUNTANCY

Legazpi City

BA CORE 07
BUSINESS RESEARCH
Unit 1 – Introduction to Business Research Method

Learning Objectives: At the end of the lesson, the student is expected to:

1. Explain the meaning and characteristics of business research.

2. Identify the types of business research.
3. Explain the types and methodologies in business research.
4. Explain the characteristics of good research question.
5. Formulate the statement/s of the problem and title of the business
research problem that the student intends to study.

Lesson Procedure :

What is Research: Definition

A careful consideration of study regarding a particular concern or problem using

scientific methods. According to the American sociologist Earl Robert Babbie,
“Research is a systematic inquiry to describe, explain, predict, and control the observed
phenomenon. Research involves inductive and deductive methods.”
Inductive research methods are used to analyze an observed event. Deductive methods
are used to verify the observed event. Inductive approaches are associated with
qualitative research and deductive methods are more commonly associated with
quantitative research.

Research is conducted with a purpose to understand:

• What do organizations or businesses really want to find out?
• What are the processes that need to be followed to chase the idea?
• What are the arguments that need to be built around a concept?
• What is the evidence that will be required for people to believe in the idea or
concept?

Characteristics of Research

1. A systematic approach must be followed for accurate data. Rules and

procedures are an integral part of the process that set the objective. Researchers need
to practice ethics and a code of conduct while making observations or drawing
conclusions.
2. Research is based on logical reasoning and involves both inductive and
deductive methods.
3. The data or knowledge that is derived is in real time from actual observations in
natural settings.
4. There is an in-depth analysis of all data collected so that there are no anomalies
associated with it.
5. Research creates a path for generating new questions. Existing data helps
create more opportunities for research.
6. Research is analytical in nature. It makes use of all the available data so that
there is no ambiguity in inference.
7. Accuracy is one of the most important aspects of research. The information that
is obtained should be accurate and true to its nature. For example, laboratories provide
a controlled environment to collect data. Accuracy is measured in the instruments used,
the calibrations of instruments or tools, and the final result of the experiment.

The types of Research Methods:

Basic research: A basic research definition is data collected to enhance knowledge.

The main motivation is knowledge expansion. It is a non-commercial research that
doesn’t facilitate in creating or inventing anything. For example: an experiment to
determine a simple fact.

Applied research: Applied research focuses on analyzing and solving real-life

problems. This type refers to the study that helps solve practical problems using
scientific methods. Studies play an important role in solving issues that impact the
overall well-being of humans. For example: finding a specific cure for a disease.

Problem oriented research: As the name suggests, problem-oriented research is

conducted to understand the exact nature of a problem to find out relevant solutions.
The term “problem” refers to multiple choices or issues when analyzing a situation.
For example, revenue of a car company has decreased by 12% in the last year. The
following could be the probable causes: there is no optimum production, poor quality of
a product, no advertising, or economic conditions.

Qualitative research: Qualitative research is a process that is about inquiry. It helps

create in-depth understanding of problems or issues in their natural settings. This is a
non-statistical method. Qualitative research is heavily dependent on the experience of
the researchers and the questions used to probe the sample. The sample size is usually
restricted to 6-10 people. Open-ended questions are asked in a manner that
encourages answers that lead to another question or group of questions. The purpose
of asking open-ended questions is to gather as much information as possible from the
sample.

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. In simple words, it can be stated as the acquisition of
information or knowledge for professional or commercial purpose to determine
opportunities and goals for a business.
Business research can be done for anything and everything. In general, when people
speak about business research it means asking research questions to know where the
money can be spent to increase sales, profits or market share. Such research is critical
to make wise and informed decisions.

For example: A mobile company wants to launch a new model in the market. But they
are not aware of what are the dimensions of a mobile that are in most demand. Hence,
the company conducts a business research using various methods to gather information
and the same is then evaluated and conclusions are drawn, as to what dimensions are
most in-demand, This will enable the researcher to make wise decisions to position his
phone at the right price in the market and hence acquire a larger market share.

Business Research Methodologies

Business research is a systematic and objective inquiry that provides information to

guide managerial decisions, which are arrived at through a process of planning,
acquiring, analyzing, and disseminating relevant data to decision-makers in ways that
mobilize the organization to take appropriate actions to maximize business
performance.

Quantitative research methods are research methods that deal with numbers. It is a
systematic empirical investigation using statistical, mathematical or computational
techniques. Such methods usually start with data collection and then proceed to
statistical analysis using various methods. The following are some of the research
methods used to carry out business research.

Survey research is one of the most widely used methods to gather data especially for
conducting business research. Surveys involve asking various survey questions to a set
of audiences through various types like online polls, online surveys, questionnaires, etc.
Nowadays, most of the major corporations use this method to gather data and use it to
understand the market and make appropriate business decisions. Various types of
surveys like cross-sectional surveys which are needed to collect data from a set of
audience at a given point of time or longitudinal surveys which are needed to collect
data from a set of audience across various time duration in order understand changes in
the respondents’ behavior are used to conduct survey research. With the advancement
in technology, now surveys can be sent online through email or social media.
For example: A company wants to know the NPS score for their website i.e. how
satisfied are people who are visiting their website. An increase in traffic to their website
or the audience spending more time on a website can result in higher rankings on
search engines which will enable the company to get more leads as well as increase its
visibility. Hence, the company can ask people who visit their website with a few
questions through an online survey to understand their opinions or gain feedback and
hence make appropriate changes to the website to increase satisfaction.

Correlational research is conducted to understand the relationship between two

entities and what impact each one of them has on the other. Using mathematical
analysis methods, correlational research enables the researcher to correlate two or
more variables. Such research can help understand patterns, relationships, trends, etc.
Manipulation of one variable is possible to get the desired results as well. Generally, a
conclusion cannot be drawn only on the basis of correlational research.
For example: A research can be conducted to understand the relationship between
colors and gender-based audiences. Using such research and identifying the target
audience, a company can choose the production of particular color products to be
released in the market. This can enable the company to understand the supply and
demand requirements of its products.

Causal-Comparative research is a method based on the comparison. It is used to

deduce the cause-effect relationship between variables. Sometimes also known as
quasi-experimental research, it involves establishing an independent variable and
analyzing the effects on the dependent variable. In such research, manipulation is not
done; however, changes are observed on the variables or groups under the influence of
the same changes. Drawing conclusions through such research is a little tricky as
independent and dependent variables will always exist in a group, hence all other
parameters have to be taken into consideration before drawing any inferences from the
research.
For example: A research can be conducted to analyze the effect of good educational
facilities in rural areas. Such a study can be done to analyze the changes in the group
of people from the rural areas when they are provided with good educational facilities
and before that.
Another example can be to analyze the effect of having dams and how it will affect the
farmers or production of crops in that area.

Experimental research is based on trying to prove a theory. Such research may be

useful in business research as it can let the product company know some behavioral
traits of its consumers, which can lead to more revenue. In this method, an experiment
is carried out on a set of audiences to observe and later analyze their behavior when
impacted with certain parameters.
For example: Experimental research was conducted recently to understand if particular
colors have an effect on its consumers’ hunger. A set of the audience was then exposed
to those particular colors while they were eating and the subjects were observed. It was
seen that certain colors like red or yellow increase hunger. Hence, such research was a
boon to the hospitality industry. You can see many food chains like Mcdonalds, KFC,
etc. using such colors in their interiors, brands, as well as packaging.
Another example of inferences drawn from experimental research, which is used widely
by most bars/pubs across the world is that loud music makes a person drink more in
less time. This was proven through experimental research and was a key finding for
many business owners across the globe.

Literature research is one of the oldest methods available. It is very economical and a
lot of information can be gathered using such research. Online research or literature
research involves gathering information from existing documents and studies which can
be available at Libraries, annual reports, etc. Nowadays, with the advancement in
technology, such research has become even more simple and accessible to everyone.
An individual can directly research online for any information that is needed, which will
give him in-depth information about the topic or the organization. Such research is used
mostly by marketing and salespeople in the business sector to understand the market or
their customers. Such research is carried out using existing information that is available
from various sources, although care has to be taken to validate the sources from where
the information is going to be collected.

For example: A salesperson has heard a particular firm is looking for some solution
which their company provides. Hence, the salesperson will first search for a decision
maker from the company, investigate what department he is from and understand what
the target company is looking for and what are they into. Using this research he can
cater his solution to be spot on when he pitches it to this client. He can also reach out to
the customer directly by finding a mean to communicate with him by researching online.’

Interviews are somewhat similar to surveys, like sometimes they may have the same
questions used. The difference is that the respondent can answer these open ended
questions at a length and the direction of the conversation or the questions being asked
can be changed depending on the response of the subject. Such a method usually
gives the researcher, detailed information about the perspective or opinions from its
subject. Carrying out interviews with subject matter experts can also give important
information critical to some businesses.
For example: An interview was conducted by a telecom manufacturer, with a group of
women to understand why do they have less number of female customers. After
interviewing them, the researcher understood that there were less feminine colors in
some of the models, hence females preferred not purchasing them. Such information
can be critical to a business such as a telecom manufacturer and hence it can be used
to increase its market share by targeting women customers by launching some feminine
colors in the market.
Another example would be to interview a subject matter expert in social media
marketing. Such an interview can enable a researcher to understand why certain types
of social media advertising strategies work for a company and why some of them don’t.

Case study research is one of the most important in business research. It is also used
as marketing collateral by most businesses to land up more clients. Case study
research is conducted to assess customer satisfaction, document the challenges that
were faced and the solutions that the firm gave them. Using these inferences are made
to point out the benefits that the customer enjoyed for choosing their specific firm. Such
research is widely used in other fields like education, social sciences, and similar. Case
studies are provided by businesses to new clients to showcase their capabilities and
hence such research plays a crucial role in the business sector.
For example: A services company has provided a testing solution to one of its clients. A
case study research is conducted to find out what were the challenges faced during the
project, what was the scope of their work, what objective was to be achieved and what
solutions were given to tackle the challenges. The study can end with the benefits that
the company provided through their solutions, like reduced time to test batches, easy
implementation or integration of the system, or even cost reduction. Such a study
showcases the capability of the company and hence it can be stated as empirical
evidence to the new prospect.

Website intercept surveys or website visitor profiling/research is something new

that has come up and is quite helpful in the business sector. It is an innovative approach
to collect direct feedback from your website visitors using surveys. In recent times a lot
of business generation happens online and hence it is important to understand the
visitors of your website as they are your potential customers. Collecting feedback is
critical to any business as without understanding a customer, no business can be
successful. A company has to keep its customers satisfied and try to make them loyal
customers in order to stay on top.
A website intercept survey is an online survey that allows you to target visitors to
understand their intent and collect feedback to evaluate the customers’ online
experience. Information like visitor intention, behavior path, satisfaction of overall
website, can be collected using this.
Depending on what information a company is looking for, multiple forms of website
intercept surveys can be used to gather responses. Some of the popular ones are
Pop-ups or also called Modal boxes and on-page surveys.
For example: A prospective customer is looking for a particular product that a company
is selling. Once he is directed to the website, an intercept survey will start noting his
intent, and path. Once the transaction has been made a pop-up or an on-page survey is
provided to the customer to rate the website. Such research enables the researcher to
put this data to good use and hence understand the customers’ intent, his path and
improve any parts of the website depending on the responses, which in turn would lead
to satisfied customers and hence, higher revenues and market share.

The emphasis of business research is on shifting decision-makers from intuitive

information gathering to systematic and objective investigation.

These steps include, among others:

Product analysis is the first step in business research. Companies must find a product
that meets consumer demand or exceeds consumer demand; otherwise, the product
will fail in the economic market place. One type of analysis is to find an existing product
that can be improved through design and features.Another kind of product analysis will
find emerging markets with high demand and low supply, which allows companies to
sell products to meet consumer demand.
Market Analysis. Companies will conduct a market analysis to determine how much
profit may be earned from current demand. Management will look at which stage of the
business cycle the market is currently in, whether emerging, plateau, or declining. A
market analysis will also determine the price points at which products can be sold.
Financial Analysis. The financial analysis determines the cost of each production item
used to produce goods and services. Management will also review the best cost
application methods, ensuring that all production costs are adequately applied to each
product manufactured or service rendered.
Competitor Analysis. A competitor analysis of a market is an essential part of
business research. Knowing which companies have the best production methods or
customer loyalty helps new companies understand how they can create a competitive
advantage when entering a new market.
Growth Analysis. Growth analysis is of crucial importance in understanding the
profitability of a business operation.

Characteristics of Good Research Questions

● The research question must be feasible. Meaning it can be done without so

much expense of time, money and energy. Feasible research questions ensures
 that researchers are taking on a research project that can actually be completed.
Feasible research questions can be answered. It focuses on objective aspects of
the immediate empirical or clinical environment (time, scope, resources,
expertise, fund, etc.). Statistical concern is also a central focus of feasibility.
Researchers need to have access to a large pool of participants to sample from
to conduct meaningful research. In short, a feasible research question must
capable of being investigated with available resources.

● The research is clear . The research question must be clear because it

(research question) is the focus of the research investigation. How do we make
the research question clear? We have to define some terms conceptually and
operationally in order that the readers will understand how the words were used
in the study.

● The research question is significant. find out if the research is beneficial to the
community, researcher, herself and other researchers, to the organization, and to
other entities. This means that the research question should be worth
investigating.

● The research question is ethical ethical when it will not involve physical or
psychological harm or damage to human beings or to the natural or social
environment of which they part

Research Title

The choice of a good title for the study poses a demanding but challenging
search for an area of investigation is closely related to the researcher’s
professional goals, expertise, experience, and interest.

Effective titles in academic research papers have several characteristics.

● Indicate accurately the subject and scope of the study.

● Avoid using abbreviations and verbosely or long winding title.
● Use words that create a positive impression and stimulate reader interest.
● Identify key variables, both dependent and independent.
● Is limited to 10 to 15 substantive words.
● Do not include "study of," "analysis of" or similar constructions.
● Use correct grammar and capitalization with all first words and last words
capitalized, including the first word of a subtitle. All nouns, pronouns,
verbs, adjectives, and adverbs that appear between the first and last
words of the title are also capitalized.
● In academic papers, rarely is a title followed by an exclamation mark.
However, a title or subtitle can be in the form of a question.
● The title names the major variables that are the subject of investigation,
thereby giving an instant grasp of what the study is all about It answers
the questions of “what”, “who”, and “where”. Modern trend dictates doing
way with “when” since this is already included in the section of “Scope and
Delimitation”
Prepared by:
Miriam K. Manalo, Ed.D.