Business Research Methods

Introduction
Unit 1
 Meaning of Research

RESEARCH has 2 senses:

a. Systematic investigation to establish facts

b. a search for knowledge
“Research is a process of steps used to collect and
analyze information to increase our understanding
of a topic or issue".

It consists of three steps:

1. Pose a question
2. Collect data to answer the question
3. Present an answer to the question.
Motivation for Research:

1. Desire of solving the unsolved (problem).

2. Desire for intellectual joy of doing something
creative.
3. Desire to contribute and be of service to society at
large
 Business Research
• Business research, both the process and tools
needed to reduce risk in managerial decision
making is a systematic inquiry that provides
information to guide managerial decisions. More
specifically, it is a process of planning, acquiring,
analyzing, and disseminating relevant data,
information, and insights to decision makers in
ways that mobilize the organization to take
appropriate actions that, in turn, maximize
performance
• Business research is defined as the systematic
and objective process of gathering, recording, and
analyzing data for aid in making business
decisions.
Characteristics of Business
Research
 The research information is neither intuitive nor
haphazardly gathered

 It connotes patient study and scientific investigation

wherein the researcher takes another, more careful
look at data to discover all that can be known about
the subject of study

 The Business researcher must be objective

 The researcher is to be impersonal rather than

engaging in a biased attempt to prove preconceived
ideas.
 Scenario
 Assume for the moment that you are the
manager of your favourite full-service
restaurant.You are experiencing a significant
turnover in your waiter/waitress pool, and
some long-time customers have commented
that the friendly atmosphere, which has
historically drawn them to your door, is
changing.
◦ Where will you begin to try to solve this
problem? Is this a problem for which research
should be used?
 Research Applications in Business
Decisions
 Marketing function (Market potential
analysis; market segmentation analysis and
demand estimation)
 Personnel and human resource
management ( Training & Development)
 Financial and accounting research (Stock
market response to corporate actions)
 Production and operation management
(Project management and inventory
management analysis)
 Exhibit 3-1
The Business Research Process

-
Situation
 Suppose you have been hired as a
consultant by an American fast-food
restaurant chain that plans to expand into
India. What role would business research
play, if any, in providing advice to your
client?
Types of research:
Basic Research and Applied Research

Basic research

Also called Pure or fundamental Research, it is undertaken

for increase in knowledge.

Basic research is conducted to verify the

acceptability of a given theory or to discover more
about a certain concept.
The purpose behind the study is wider and
all encompassing, where the benefits
generated would be applicable to entire
business community. The context is vast
and time period is flexible. It is
designed to solve problems of a
theoretical nature with little direct
impact on strategic or tactical
decisions.
Examples of Basic Research:
• Basic research in the business arena might
involve a researcher who is studying the
results of the use of coupons versus
rebates as demand stimulation tactics.
• The influence on productivity of
compensation systems that pay by piece-
work versus salary-plus-bonus structures
Applied Research

It is conducted when a decision must be made about

a specific real-life problem. Applied research
encompasses those studies undertaken to answer
questions about specific problems or to make decisions
about a particular course of action or policy. Thus the
study you would undertake would have limited
relevance and would be able to generate knowledge
specific to the problem situation. It is the research
that addresses existing problems or opportunities.
Examples of Applied Research:
• Your product which was declared a winner in the test
marketing that you conducted is not able to take off
after the product launch and you need to identify the
reasons for this, in order to take a corrective action
• An organization contemplating a paperless office and a
networking system for the company’s personal
computers may conduct research to learn the amount
of time its employees spend at personal computers in
an average week
What is a Research Problem
 A research problem, in general, refers to
some difficulty which a researcher
experiences in the context of either a
theoretical or practical situation and
wants to obtain a solution for the same.
 Selecting the problem
◦ Subject which is overdone should not be normally
chosen, for it will be a difficult task to throw any new light
in such a case
◦ Controversial subject should not become the choice of
an average researcher
◦ Too vague problems should be avoided
◦ The subject selected for research should be
familiar and feasible so that the related research
material or sources of research are within one’s
reach
◦ The importance of the subject, the qualifications
and the training of a researcher, the costs involved,
the time factor are few criteria that must also be
considered in selecting a problem
Techniques Involved in Defining a
Problem
 Statement of the problem in a general
way
 Understanding the nature of the problem
 Surveying the available literature
 Developing the ideas through discussions
 Rephrasing the research problem
Example of Research Problem
 Why is productivity in Japan so much
higher than in India?

 What factors were responsible for the

higher labour productivity of Japan’s
manufacturing industries during the
decade 1971 to 1980 relative to India’s
manufacturing industries?
Example of Research Problem
 To what extent did labour productivity in
1971 to 1980 in Japan exceed that of India
in respect of 15 selected manufacturing
industries? What factors were responsible
for the productivity differentials between
the two countries by industries?
Converting Management decision
problem to Research problem
Decision Problem Research Problem
What should be done to increase the What is the awareness and purchase
customer base of organic products in intention of health conscious
the domestic market? consumers for organic products?
How to reduce turnover rates in the What is the impact of shift duties on
BPO sector? work exhaustion and turnover
intention of the BPO employees?
How to improve the delivery process How does Widex/ industry leader
of Widex hearing aids in India? manage its supply chain in India/ Asia?
Should the company continue with its What is the satisfaction level of the
existing security services vendor or company with the existing vendor?
look at an alternative? Are there any gaps?
Can they be effectively handled by the
vendor?
Can the housing and real estate What is the current investment in real
growth be accelerated? estate and housing? Can the demand
in the sector be forecasted for the
next six months?
What is a Good Research
 Purpose clearly defined
 Research process detailed
 Research design thoroughly planned
 High ethical standards applied
 Limitations frankly revealed
 Adequate analysis for decision maker’s needs
 Findings presented unambiguously
 Conclusions justified
 Researcher’s experience reflected
 Literature Review
• It is an extensive survey of all available past studies
relevant to the field of investigation.

• It gives us knowledge about what others have found out in

the related field of study and how they have done so.
 PURPOSE OF REVIEW
 To gain a background knowledge of the research topic.
 To learn from other researchers mistakes and avoid making
the same ones.
 To identify the concepts relating to it, potential
relationships between them and to formulate researchable
hypothesis.
 To identify appropriate methodology, research design,
methods of measuring concepts and techniques of analysis.
 To identify data sources used by other researchers.
 To learn how others structured their reports.
 Sources Of Literature
• Books and Journals
• Electronic Databases (Ebscohost, etc )
• Internet
• Research Dissertations / Thesis
 Points to be kept in mind while
reviewing literature
-Read relevant literature.
-Refer original works.
-Read with comprehension.
-Read in time.