BUSINESS RESEARCH METHODS

UNIT 1

Q1) What is Research ?

 Meaning :-
Research is a process of systematic inquiry that entails collection of data;
documentation of critical information; and analysis and interpretation of that
data/information, in accordance with suitable methodologies set by specific
professional fields and academic disciplines.
Research is pursued in almost all the professions. More than a set of skills, it is
a critical way of observing, examining, thinking, questioning and formulating
principles that hold true at least for the given space. Almost all professions
affirm the need of research either for the advancement of business or for the
enlightenment.
Some people consider research as a movement, a movement from the known
to the unknown. It is actually a voyage of discovery. We all possess the vital
instinct of inquisitiveness for, when the unknown confronts us, we wonder
and our inquisitiveness makes us probe and attain full and fuller
understanding of the unknown.

 Defination :-
Zina O' Leary defined research as a 'creative and strategic thinking process
that involves constantly assessing, reassessing and making decisions about
the best possible means for obtaining trustworthy information, carrying out
appropriate analysis and tracing credible solutions.'

Redman and Mory define research as a “systematized effort to gain new

knowledge.”

According to Clifford Woody research comprises defining and redefining

problems, formulating hypothesis or suggested solutions; collecting,
organising and evaluating data; making deductions and reaching conclusions;
and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis

Q. 2 What are the objectives of Research ?

The objective of research is to discover answers to questions through the
application of scientific procedure. The main aim of research is to find out the
truth which is hidden and which has not been discovered as yet. It is primarily
concerned with production of knowledge. Though each research study has its
own specific purpose, some general objectives of research below:

1. To Explore: Research can be carried out with the purpose of gaining

familiarity with a particular topic or to gain insight into unexplored areas.
Such a research is termed as exploratory or formative research. It is often
carried out before formulating a hypothesis e.g. a domestic company may
think of setting up its manufacturing operations abroad. This kind of
investment is new to the company and the initial research conducted to
explore the possibility of this new idea can be termed as exploratory research.

2. To Describe: Quite often a research can be carried out with the objective of
describing a particular situation, event or an individual e.g. a study can be
carried out to study the voting pattern in a particular state on the basis of
gender, economic status, religion etc. as observed in the previous election.
Such researches are termed as descriptive studies. Since these studies are
about events that have already taken place, these studies are also called as
ex-post facto studies.

3. To Diagnose: When a study is carried out with the objective of finding out
how frequently a particular event is associated with another event, it is
termed as diagnostic study e.g. a fast food chain has conducted a research to
find out the feasibility of setting up an outlet in a multiplex. The chief
objective of this study is to find out that how often people eat their meal
outside when planning to watch a movie. Doctors frequently employ
diagnostic methods to discover what it is that ails the patient. Numerous
questions are asked from the patient and through symptomatic and clinical
investigation, the doctors can then declare a diagnosis. Such studies are called
as diagnostic studies.
4. To Establish Causal Relationship: A research can be done with the objective
of finding out the causal relationship between the dependent variables with
independent variables. Such research are called as hypothesis testing
research e.g. a research carried out so establish the relationship between
polio vaccine (independent variable) and its effectiveness in controlling the
occurrence of polio (dependent variable) is a hypothesis testing research.

In simple words, the objectives of research may be:

1. To gain familiarity with a phenomenon or to achieve new insights into it
(studies with this object in view are termed as exploratory or formulative
research studies);
2. To portray accurately the characteristics of a particular individual, situation
or a group (studies with this object in view are known as descriptive research
studies);
3. To determine the frequency with which something occurs or with which it
is associated with something else (studies with this object in view are known
as diagnostic research studies);
4. To test a hypothesis of a causal relationship between variables (such
studies are known as hypothesis-testing research studies).

Q 3) What are different types of Research ?

1) Descriptive Research: Descriptive research, also known as statistical
research, describes data and characteristics about the population or
phenomenon being studied. Descriptive research answers the questions
who, what, where, when, and how. The description is used for frequencies,
averages, and other statistical calculations. Often the best approach, prior
to writing descriptive research, is to conduct a survey investigation. In
short descriptive research deals with everything that can be counted and
studied. But there are always restrictions to that. The research must have
an impact to the lives of the people around the researcher. This research is
applicable to problem which specifies certain criteria and data is clearly
available for accurate objectives.
Example -1. Job roles of employees in similar positions from two different
companies. 2. Investigates the type of relationship and patterns between
Music Genres and Mental State.
Methods of descriptive research –
1. Observational method:-
All research has some component of observation, this observation can be
quantitative or qualitative. A quantitative observation includes objectively
collecting data that is primarily in numerical form. The data collected
should be related to or understood in terms of quantity. Examples of
quantitative observations include observation of any variable related to a
numerical value such as age, shape, weight, height, scale, etc. Qualitative
observations monitor the characteristics of a phenomenon and do not
involve numerical measurements.
Using this type of descriptive research, you can observe respondents in a
naturalistic environment from a distance. Since the respondents are in a
natural environment, the observed characteristics enrich and offer more
insights.
For instance, you can monitor and note down the observations of
customers in a supermarket by observing their selection and purchasing
patterns. This offers a detailed cognizance of the customer.

2. Survey method
The survey method includes recording the answers of respondents
through surveys or questionnaires. Surveys can include polls as well. They
are the most common tool for collecting market research data.
Surveys are generally used to collect feedback from the respondents. It
should have a survey that taps into both open-ended and closed-ended
questions.
The biggest advantage of the survey method is that it can be conducted
using online or offline survey tools. One of the reasons why the survey
method is the go-to option for descriptive research is that it entails the
collection of large amounts of data in a limited span of time..

3. Case study method :-

The in-depth study of an individual or a group is known as a case study.
Case studies usually lead to developing a hypothesis to further explore a
phenomenon. Case studies are limited in their scope in that they don’t
allow the researcher to make cause-effect conclusions or accurate
predictions.
 This is because these associations could reflect the bias on the
researchers’ part instead of a naturally occurring phenomenon. Another
reason why case studies are limited in scope is that they could just be
reflecting an atypical respondent in the survey.
An atypical respondent refers to someone who is different from the
average consumer, and if researchers make judgments about the entire
target population based on this consumer, it can affect the external validity
of the study.

2) Analytical Research –
 Researcher uses facts already available and analyse to make critical evaluation
of material.
 Determines the causal connections between two or more variables.
 Learns crucial information and contribute fresh concepts to the work.
 Research is valuable to students, psychologists, marketers, and others
 Focuses on understanding the cause-effect relationships between two or more
variables.
 Example – 1. How can the number of complaints made by customer be reduced
?
2. How can the absentee rate among the employees can be reduced ?
3. Why is the introduction of empowerment seen as a threat by
departmental managers ?

3) Applied Research –
 Scientific study and research that seeks to solve practical
problems.
 Find solutions to everyday problems, cure illness, and develop
innovative technologies, rather than to acquire knowledge for
knowledge's sake
 Researcher takes extra care to identify a problem, develop a
research hypothesis and goes ahead to test these hypotheses via
anexperiment.
 Follow-up to further investigates the findings and validate these
findings and apply them to create innovative solutions
 Examples include like evaluating the impact of a training programme on
employee performance, examining consumer response to direct marketing
 programmes, A study into the way to improve teacher-learner classroom
engagements.

4) Fundamental research –
 Developing scientific theories or basic principles are called 'fundamental'
research. This research is concerned with quest for knowing more about the
phenomenon without concern for its practical use and also with developing
and testing hypotheses and theories.
 “Gathering knowledge for knowledge’s sake is termed ‘pure’ or ‘basic’
research.” Research concerning some natural phenomenon or relating to pure
mathematics are examples of fundamental research. Similarly, research studies,
concerning human behaviour carried on with a view to make generalisations
about human behaviour, are also examples of fundamental research.
 It is the source of most new theories, principles, and ideas. To sum-up, basic
research is purely theoretical to increase our understanding of certain
phenomena or behaviour but does not seek to solve any existing problem. It is
essentially positive and not normative. This may take the form of the discovery
of totally new idea, invention and reflection where an existing theory is re-
examined possibly in a different social context.

5) Quantitative Research –
 It usually involves the collection and converting of numerical data into
numerical form so that statistical calculations can be done which help in
drawing conclusions to answer a specific research question. Quantitative
research is applicable to phenomena that are measurable so that they can be
expressed in terms of quantity. Objectivity is very vital in quantitative research.
 Therefore, researchers seek to avoid their own presence, behaviour or attitude
affecting the results (e.g., by changing the circumstances being studied or
causing participants to behave differently).
 The aim of quantitative research is to develop mathematical models, theories
related to phenomenon.
 Quantitative research is mainly used in social sciences. It may involve
correlation study, ex-post facto study, longitudinal study, meta-analysis and
survey
 6) Qualitative Research –
 Qualitative research is usually related with the social constructivist concept
which emphasizes the socially constructed nature of reality.
 This research is designed to find out how people feel or what they think about
a particular subject.
 The sequence to data collection and analysis is logical but allows for greater
flexibility in all aspects of the research process.
 Data is collected in textual form on the basis of observation and
communication with the participants, e.g., through participant observations,
in-depth interviews and focus groups.
 The data is not converted into numerical form and is not statistically analysed.
It is more appropriate to explore the nature of a problem, issue or
phenomenon without quantifying it.
 The prime objective of such researches is to describe the variation in a
phenomenon, situation or attitude. The qualitative research attempts to
answer ‘why’ and ‘how aspects of decision-making rather than ‘what’ and
‘when’ aspects.

7) Empirical Research –
 This is a data based research where we collect primary data and then data is
further analysed and used for testing hypothesis.
 It is a way of gaining knowledge by means of direct observation or experience.
Empirical evidence (the record of one's direct observations or experiences) can
be analysed quantitatively or qualitatively.
 It is based on observation and experience more than upon theory and
abstraction. Empirical means based upon observation or measurement rather
than theoretical reasoning.
 Pharmaceutical companies use empirical research to try out a specific drug on
controlled groups or random groups to study the effect and cause.
 This way they prove certain theories they had proposed for the specific drug.
Such research is not just useful in science but in many other fields like history,
social sciences, business, etc.

8) Conceptual Research –
 Conceptual research is defined as a methodology wherein research is
conducted by observing and analyzing already present information on a given
 topic. Conceptual research doesn’t involve conducting any practical
experiments. It is related to abstract concepts or ideas. Philosophers have long
used conceptual research to develop new theories or interpret existing
theories in a different light.
 The most famous example of a conceptual research is Sir Issac Newton. He
observed his surroundings to conceptualize and develop theories about
gravitation and motion.
 Nowadays, conceptual research is used to answer business questions and solve
real-world problems. Researchers use analytical tools called conceptual
frameworks to make conceptual distinctions and organize ideas required for
research purposes.
 Conceptual research framework constitutes of a researcher’s combination of
previous researches and associated work and explains the occurring
phenomenon. It systematically explains the actions needed in the course of the
research study based on the knowledge obtained from other ongoing
researches and other researchers’ point of view on the subject matter.

4) Difference between Basic research and Applied research ?

Basic Research Applied Research

The term “basic research” refers to a It is an investigation technique
type of research that is entirely involving solving problems by applying
theoretical and focused on improving an empirical methodology to an
or expanding the knowledge base of object, a field of study, or a research
an area. subject.
A primary research project can be On the other hand, applied research
characterized as research that refers to an academic study that helps
attempts to expand an existing solve real-life issues.
scientific knowledge base.
It is a systematic study directed The applied research attempts to find
toward greater understanding and practical solutions to existing
knowledge. problems.
The basic research nature is The applied research nature is
theoretical. practical.
It is concerned with developing Applied research is concerned with
scientific predictions and knowledge. development techniques and
technology.
 The applicability of basic research is The applicability of basic research is
greater than the of applied research. lower than that basic research.
It focuses on basic principles and It focuses on certain conclusions
testing theories. experiencing a business problem.
Choice of topic and objective Objectives negotiated with originator
determined by researcher
Flexible time scale Tight time scale

5) What is the difference between Descriptive and Analytical

Research ?
Descriptive Research Analytical Research
These describes phenomena as they Analytical research aim to
exist. It used to identify and obtain understand phenomena by
information on a characteristics of a discovering and measuring casual
particular issue. relations among them.
Facts- findings enquires and survey Collected data is analysed and
method explained
Ascertains and describes the Beyond nearly describing the
characteristics of the issue characteristics.
Describe the state of affairs as it exist Explain existing state of affairs from
at present available data.
No control over the variable Work within the constraint variables
Example – What is the absence rate Example- how can the number of
amongst a particular group of complaints made by customers is
workers? reduced?

6) What are the features of literature review?

Literature review involves a comprehensive review of published and unpublished
work from the secondary sources of data available in the relevant area of study.
The researcher at this stage may review all the available conceptual literature
concerning the theories and concepts related to the problem as well as the
empirical literature comprising of studies done earlier and bearing similarity to the
problem under study. Literature review helps the researcher in two ways; firstly, it
helps him in specifying his research problem in a meaningful context, secondly, it
would provide him with an insight into the methods and techniques adopted for
handling such problems.
The researcher can access bibliographic databases which display only the
bibliographic citations like name of the author, title of the book, publisher, year,
volume and page number. He can also use abstract database which along with
bibliographic citations also provides him with an abstract of the article. The
researcher can also use full text databases which contain the entire text.
Features of Literature review -
 Give a new interpretation of old material or combine new with old
interpretations
 Depending on the situation evaluate the sources and advise the reader on the
most pertinent or relevant research
 Identify where gaps exist in how a problem has been researched to date
 The literature review must be relevant and focused. It is impossible to cover all
that have been written within the field hence it is important to be selective in
the works. Only paper which are directly relevant to our topic needs to be
included in literature review.
 Traces the intellectual progression of the field, including the major debates.

7) Research process flow chart ?

#Step 1- Formulating Research Problem -
 To start a research, we first of all need to discover the problem which
demands solution.
 The best way to identify the problem would be to look for an unresolved
query, a gap in the existing knowledge or an unfulfilled need within the
chosen subject.
 Although the world is filled with unsolved problems, yet not every problem
is suitable for research.
 Researcher should take care that the problem should be one which can be
clearly identified and formulated.
 Further, while choosing the research area the researcher should look into
the availability of information relevant to the topic.
 Mere availability is not enough, it should also be accessible. Sometimes, the
cost of obtaining the information being too high, it might not be accessible
to the researcher.
 #Step 2- Literature Review
 The next step is to become familiar with the problem and formulate it clearly.
Literature review involves a comprehensive review of published and
unpublished work from the secondary sources of data available in the relevant
area of study.
 The researcher at this stage may review all the available conceptual literature
concerning the theories and concepts related to the problem as well as the
empirical literature comprising of studies done earlier and bearing similarity to
the problem under study.
 Literature review helps the researcher in two ways; firstly, it helps him in
specifying his research problem in a meaningful context, secondly, it would
provide him with an insight into the methods and techniques adopted for
handling such problems.
 The researcher can access bibliographic databases which display only the
bibliographic citations like name of the author, title of the book, publisher, year,
volume and page number.
 He can also use abstract database which along with bibliographic citations also
provides him with an abstract of the article. The researcher can also use full
text databases which contain the entire text.

#Step 3- Formulate Research Hypothesis –

 A hypothesis is a tentative assumption regarding the solution to the
problem under study. The hypothesis is the focal point around which the
future research efforts will be directed.
 The kind of data to be collected, the tools of analysis are influenced by
the hypothesis. The hypothesis is a predictive statement which is made
in the light, of the available facts relating to the problem under study.
 For example, a study conducted to find the amount of research
investment being done by the companies will have the following
hypothesis:
a) Ho: Companies invest 1% of their sales revenue in research activities.
b) H1: Companies invest less than 1% of their sales revenue in research
activities.
 The Ho is called as the null hypothesis which assumes there is no
difference between the population parameter and the sample mean and
 the H1 is called as the alternative hypothesis which presents the
alternative solution.
 A hypothesis thus presents a relationship between the different
variables. In case of social research relating to human behaviour, the
hypothesis helps us in making a prediction about the population
parameter.
# Step 4- Preparing Research Design-
 The research problem having been formulated in clear cut terms, the
researcher will be required to prepare a research design, i.e., he will
have to state the conceptual structure within which research would be
conducted.
 The preparation of such a design facilitates research to be as efficient as
possible yielding maximal information. In other words, the function of
research design is to provide for the collection of relevant evidence with
minimal expenditure of effort, time and money.
 But how all these can be achieved depends mainly on the research
purpose. Research purposes may be grouped into four categories, viz., (i)
Exploration, (ii) Description,(iii) Diagnosis, and (iv) Experimentation.
 A flexible research design which provides opportunity for considering
many different aspects of a problem is considered appropriate if the
purpose of the research study is that of exploration.
 But when the purpose happens to be an accurate description of a
situation or of an association between variables, the suitable design will
be one that minimises bias and maximises the reliability of the data
collected and analysed.

# Step 5 – Determine sample design –

 Sampling is an important and separate step in the research process.
The basic idea of sampling is that it involves any procedure that uses a
relatively small number of items or portions (called a sample) of a
universe (called population) to conclude the whole population.
 A population is the total collection of elements we wish to make some
inference or generalization.
 A sample is a part of the population, carefully selected to represent that
population. If certain statistical procedures are followed in selecting the
 sample, it should have the same characteristics as the population. These
procedures are embedded in the sample design.
 Sample design refers to the methods followed in selecting a sample from
the population and the estimating technique vis-a-vis the formula for
computing the sample statistics.
 Samples can be either Probability Samples or Non-Probability Samples.
Probability sampling ensures every unit has a known nonzero probability
of selection within the target population. If there is no feasible
alternative, a non-probability sampling method may be employed.
The most widely used probability sampling methods are simple random
sampling, stratified random sampling, cluster sampling, and systematic
sampling. They have been classified by their representation basis and
unit selection techniques.

#Step 6 – Collection of data –

 From this stage, the researcher moves ahead to data gathering stage.
This involves sending questionnaires to respondents, training field
workers in interview and observation methods.
 A careful control over the data collection process is maintained.
Respondents who have remained incommunicado in the first round of
communication are once again contacted.
 The basic aim in this stage is that the data is collected in the correct form
and within the specified schedules.

# Step 7 – Execution of Project

 Execution of the project is a very important step in the research process.
If the execution of the project proceeds on correct lines, the data to be
collected would be adequate and dependable.
 The researcher should see that the project is executed in a systematic
manner and in time. If the survey is to be conducted by means of
structured questionnaires, data can be readily machine-processed. In
such a situation, questions as well as the possible answers may be
coded.
 If the data are to be collected through interviewers, arrangements
should be made for proper selection and training of the interviewers.
 The training may be given with the help of instruction manuals which
explain clearly the job of the interviewers at each step.
 Occasional field checks should be made to ensure that the interviewers
are doing their assigned job sincerely and efficiently.
 A careful watch should be kept for unanticipated factors in order to keep
the survey as much realistic as possible. If some of the respondents do
not cooperate, some suitable methods should be designed to tackle this
problem.
# Step no. 8- Hypothesis testing –
 After analysing the data, the next step is to test the hypothesis that had
been formulated in the beginning of the research process.
 There are various parametric and non-parametric tests like t-test, z-test,
f-test, Kruskal-Wallis test, Wilcoxon-Man-Whitney test etc.
 The choice of test selected for hypothesis testing depends on factors like
the nature and objective of research, characteristics of population
distribution, the sampling technique, type of data etc.
 Hypothesis testing will help a researcher in establishing the validity of his
results. It will help in determining whether the difference is real or
simply an outcome of random fluctuations.

#Step 9- Preparation of Report –

Finally, the researcher has to prepare the report ofwhat has been done by him.
Writing of report must be done with great care keeping in view the following:
1. The layout of the report should be as follows: (i) the preliminary pages; (ii)
the main text, and (iii) the end matter.
In its preliminary pages the report should carry title and date followed by
acknowledgements and foreword. Then there should be a table of contents
followed by a list of tables and list of graphs and charts, if any, given in the
report. The main text of the report should have the following parts:
(a) Introduction: It should contain a clear statement of the objective of the
research and an explanation of the methodology adopted in accomplishing the
research. The scope of the study along with various limitations should as well
be stated in this part.
(b) Summary of findings: After introduction there would appear a statement of
findings and recommendations in non-technical language. If the findings are
extensive, they should be summarised.
(c) Main report: The main body of the report should be presented in logical
sequence and broken-down into readily identifiable sections.
(d) Conclusion: Towards the end of the main text, researcher should again put
down the results of his research clearly and precisely. In fact, it is the final
summing up.
At the end of the report, appendices should be enlisted in respect of all
technical data. Bibliography, i.e., list of books, journals, reports, etc., consulted,
should also be given in the end. Index should also be given specially in a
published research report.

9) Criteria of doing good Research ?

Whatever may be the types of research works and studies, one thing that is
important is that they allmeet on the common ground of scientific method
employed by them. One expects scientific researchto satisfy the following
criteria:
1. The purpose of the research should be clearly defined and common
concepts be used.
2. The research procedure used should be described in sufficient detail to
permit another researcher to repeat the research for further advancement,
keeping the continuity of what has already been attained.
3. The procedural design of the research should be carefully planned to yield
results that are as objective as possible.
4. The researcher should report with complete frankness, flaws in procedural
design and estimate their effects upon the findings.
5. The analysis of data should be sufficiently adequate to reveal its significance
and the methods of analysis used should be appropriate. The validity and
reliability of the datashould be checked carefully.
6. Conclusions should be confined to those justified by the data of the research
and limited to those for which the data provide an adequate basis.
7. Greater confidence in research is warranted if the researcher is experienced,
has a good reputation in research and is a person of integrity.

10) Techniques of gathering of Primary data ?

Primary data can be collected either through experiment or through survey. If
the researcher conducts an experiment, he observes some quantitative
measurements, or the data, with the help of which he examines the truth
contained in his hypothesis. But in the case of a survey, data can be collected
by any one or more of the following ways:
(i) By observation: This method implies the collection of information by way of
investigator’s own observation, without interviewing the respondents. The
information obtained relates to what is currently happening and is not
complicated by either the past behaviour or future intentions or attitudes of
respondents. This method is no doubt an expensive method and the
information provided by this method is also very limited. As such this method is
not suitable in inquiries where large samples are concerned.
(ii) Through personal interview: The investigator follows a rigid procedure and
seeks answers to a set of pre-conceived questions through personal interviews.
This method of collecting data is usually carried out in a structured way where
output depends upon the ability of the interviewer to a large extent.
(iii) Through telephone interviews: This method of collecting information
involves contacting the respondents on telephone itself. This is not a very
widely used method but it plays an important role in industrial surveys in
developed regions, particularly, when the survey has to be accomplished in a
very limited time.
(iv) By mailing of questionnaires: The researcher and the respondents do come
in contact with each other if this method of survey is adopted. Questionnaires
are mailed to the respondents with a request to return after completing the
same. It is the most extensively used method in various economic and business
surveys. Before applying this method, usually a Pilot Study for testing the
questionnaire is conduced which reveals the weaknesses, if any, of the
questionnaire. Questionnaire to be used must be prepared very carefully so
that it may prove to be effective in collecting the relevant information.
(v) Through schedules: Under this method the enumerators are appointed and
given training. They are provided with schedules containing relevant questions.
These enumerators go to respondents with these schedules. Data are collected
by filling up the schedules by enumerators on the basis of replies given by
respondents. Much depends upon the capability of enumerators so far as this
method is concerned. Some occasional field checks on the work of the
enumerators may ensure sincere work.