Introduction

Research is a systematic process of inquiry that seeks to discover, interpret, and apply knowledge for
the purpose of advancing understanding, solving problems, or making informed decisions. It is a
structured approach to investigating phenomena, gathering evidence, and generating new insights to
address questions or issues of interest. Research spans across various disciplines and fields, ranging
from the natural and social sciences to humanities and engineering, and it plays a crucial role in driving
innovation, informing policy, and expanding the frontiers of human knowledge.

Definition
Research can be defined as the systematic and methodical investigation or study undertaken to gain
new knowledge, validate existing theories, or solve practical problems. It involves the careful collection
and analysis of data, often guided by hypotheses or research questions, to draw conclusions or make
informed judgments. Research can take many forms, including empirical studies, theoretical inquiries,
experimental designs, observational analyses, and more, each tailored to the specific objectives and
requirements of the research endeavor. Ultimately, research aims to contribute to the advancement
of knowledge and understanding in a particular domain, offering insights that can inform decision-
making, shape policies, or inspire further inquiry.

Features of research

Creswell says that “Research is a process of steps used to collect and analyse information to increase our
understanding of a topic or issue”.

1. Uses Scientific Methods: Research uses scientific methods to discover facts and tries to give solutions
to specified problems. Researchers follow organised procedure to carry out research. To receive better
results, scientific method is used for carrying out investigation.

2. Continuous Process: It is a continuous process as it studies existing facts and also develops new facts.
Research also tries to distinguish relationship among variables.

3. Multipurpose Activity: Research is a multipurpose activity as it not only includes collection of data but
also includes predicting future, establishing relationship between variables, finding solutions to
problems, and developing new theories, tools, and concepts.

4. Maintains Objectivity and Eliminates Impartiality: Research is based on suitable procedures. It collects
appropriate, precise and objective data to understand research problem. After data collection,
researcher process data, analyse it and arrive at appropriate solutions.

5. Empirical Nature: Empirical research can be undertaken to study situations where methods such as
observation, experimentation or survey can be used for conducting research.

6. Generalisation: Research conclusions can be applied to a large population. Research can be carried on
sample of respondents that represents the universe where the conclusions generated through research
can be applied to the complete universe.

7. Researchers Controlled Movement of the Research Procedure: In social research, there are many factors
that have an effect on result. Due to various factors, some of them can be considered as controlled
factors while others can be tested for possible consequences. But, it is difficult to execute controlled
experiments in social researches, whereas it is easy to perform controlled experiments in pure sciences.
 8. Development of Concepts and Theories: Research helps to develop new concepts and theories where
these innovations can be useful for the betterment of society at a large scale.

Importance of research
Research is significant both in scientific and non-scientific fields. Research is important for the following reasons:

1. A research problem refers to a complexity which a researcher or a scientific community or an industry

or a government organisation or a society experiences. It may be a theoretical or a practical situation.
It calls for a systematic understanding and possible solution.

2. Research on existing theories and concepts help us recognise their range and applications.

3. It is the bank of knowledge and provides strategy for solving problems.

4. It is important in industry and business for higher profits, output, efficiency and to improve the quality
of products.

5. Mathematical and logical research on business and industry reduces the problems in them.

6. It leads to the identification and categorisation of new materials, new living things, new stars, etc.

7. Inventions can be done through research

8. Social research helps find answers to social problems. They explain social phenomena and try to find
solution to social problems

Qualities of a good researcher

 Critical Thinking: Critical thinking involves the ability to analyze, evaluate, and interpret information
logically and objectively. Good researchers critically assess evidence, identify biases, and draw reasoned
conclusions.

 Ethical Integrity: Ethical integrity is fundamental in research, involving honesty, transparency, and
adherence to ethical principles and guidelines. Good researchers conduct their work ethically,
respecting the rights and well-being of participants and upholding the integrity of the research process.

 Communication Skills: Effective communication is essential for sharing research findings, collaborating
with others, and disseminating knowledge. Good researchers communicate clearly and concisely, both
orally and in writing, to diverse audiences.

Significance that research holds in the field of banking & insurance

 Risk Management: Research helps banks and insurance companies assess and manage risks effectively.
By analyzing data and trends, they can identify potential risks in financial transactions and insurance
policies, allowing them to develop strategies to mitigate these risks and protect their assets.

 Product Development: Research enables banks and insurance companies to understand the needs and
preferences of their customers better. This understanding helps in the development of innovative
financial products and insurance policies tailored to meet the diverse needs of customers, thereby
improving customer satisfaction and loyalty.
  Market Analysis: Research provides insights into market dynamics, competition, and regulatory
changes affecting the banking and insurance sectors. This information helps organizations make
informed decisions about market positioning, pricing strategies, and compliance with regulatory
requirements.

 Customer Insights: Research helps banks and insurance companies gain insights into customer behavior,
preferences, and satisfaction levels. By analyzing customer feedback and market trends, organizations
can enhance their customer service offerings, tailor their marketing strategies, and improve customer
retention.

 Fraud Detection and Prevention: Research helps in the development of advanced analytics and
predictive models to detect and prevent fraud in banking and insurance transactions. By analyzing
patterns and anomalies in data, organizations can identify suspicious activities and take proactive
measures to prevent financial fraud.

 Policy Making: Research provides empirical evidence and data-driven insights that inform policy-making
decisions in the banking and insurance sectors. Governments, regulatory authorities, and industry
bodies rely on research findings to formulate policies, regulations, and guidelines aimed at promoting
financial stability, consumer protection, and market efficiency.

 Overall, research plays a crucial role in driving innovation, improving risk management practices,
enhancing customer satisfaction, and supporting informed decision-making in the banking and
insurance industries.

Types of research

Descriptive Research

 Descriptive research is used to describe characteristics of an observable fact being studied.

 Descriptive studies are structured in such a way that it cannot be changed frequently, so it can be said
that they are rigid in nature.
 They cannot identify cause and effect relationship between variables.
 Descriptive research answers questions such as who, when, where, what and how.
 This type of research describes what exists and may help to reveal new facts and meaning.
 The purpose of descriptive research is to observe, describe and document.

Exploratory Research

 Exploratory research is carried out for a problem that has not been clearly defined.
 The main aim of this research is to gather initial information which helps to define problems and
recommend hypothesis.
 Exploratory research helps to settle on the best research design, data collection method and selection
of subjects.
 Exploratory research often relies on secondary research such as reviewing available literature, or
qualitative approaches such as informal discussions with consumers, employees, management or
competitors, and more formal approaches through in-depth interviews, focus groups, projective
methods, case studies or pilot studies.
 Exploratory research can mainly be conducted when researchers lack clear idea of the problem.
 The results of exploratory research are not generally useful for decision-making, but they can provide
major insight into a given situation.

Causal Research
  Causal research is a type of scientific investigation that aims to establish a cause-and-effect relationship
between variables
 Controlled Settings: Like a crime scene cordoned off, researchers create an environment where only
the suspected cause and its effect interact, minimizing interference from other variables.
 Manipulated Variables: The researcher acts like a master puppeteer, directly changing the suspected
cause (independent variable) to observe its impact on the outcome (dependent variable).
 Observed Changes: With hawk-like eyes, researchers meticulously track how the manipulated cause
influences the outcome, noting any shifts or patterns.
 Careful Analysis: Beyond just observing, researchers meticulously dissect the data, using statistical tools
and logical reasoning to eliminate alternative explanations and confirm the true cause-and-effect link.

Historical Research

 It is defined as the type of research that examines past events or combinations of events to arrive at an
account of what has happened in the past.
 Historical research is carried out to discover the unknown; answer questions, recognise the relationship
that the past has to the present; record and assess activities of individuals, agencies, or institutions; and
assist in understanding the culture in which we live.
 Historical research can exhibit patterns that occurred in the past and over time which can facilitate us
to see where we came from and what kinds of solutions we have used in the past.
 We usually will notice that what we do today is expressly rooted in the past. Historical research involves
the process of collecting and reading the research material collected, and writing the document from
the data collected.

Experimental Research

 It is commonly used in sciences such as sociology and psychology, physics, chemistry, biology, medicine,
etc.
 It is a collection of research designs which use manipulation and controlled testing to understand
fundamental processes.
 Usually, one or more variables are manipulated to establish their effect on a dependent variable.
 Experimental Research is mainly used when: there is time priority in a causal relationship (cause
precedes effect) or there is uniformity in a causal relationship (a cause will always lead to the same
effect) or the magnitude of the correlation is great.
 Experimental research is important to society as it helps us to improve our daily lives.

Basic Research

 It is also known as pure or fundamental research.

 This research is mainly conducted to increase knowledge base. It is driven purely by interest
and a desire to expand our knowledge.
 This type of research tends not to be directly applicable to the real world in a direct way, but
enhances our understanding of the world around us.
 Pure research can be exploratory, descriptive or explanatory.
 Basic research generates new ideas, principles and theories in different fields.
 Basic research concentrates on fundamental principles and testing theories.
 It is sometimes implicitly said that basic research doesn’t have practical applications. For
example, someone conducting basic research on cheating behaviour may design a study
examining whether students from illiterate families cheat more often than students from
literate families.
 Notice that the research is not done to reduce cheating or help people who cheat or any other
“applied” aspect, but to increase the understanding of cheating behaviour.

Applied Research
  Applied research is mainly related with solving practical problems rather than focussing on
knowledge expansion.
 It is mainly used to find solutions to problems which occur on a daily basis and develop new
innovative technologies.
 The main aim of applied research is to provide better technologies for humans to enhance their
standard of living.
 Example: Investigating which treatment approach is the most effective for treating cancer
patients whereas Researching which strategies work best to motivate workers.

Analytical Research

• Analytical research aims to understand the underlying reasons and causes behind a phenomenon.
• It involves the examination and interpretation of data to identify patterns, trends, or relationships.
• Analytical studies are characterized by their flexibility, allowing researchers to adjust their methods
based on emerging findings.
• Unlike descriptive research, analytical research seeks to establish cause-and-effect relationships
between variables.
• Analytical research addresses questions concerning "why" and "how" certain phenomena occur.
• The primary objective of analytical research is to gain deeper insights and understanding into a
particular topic or issue.

Empirical Research

• Empirical research relies on direct observation or experience rather than mere theory or speculation.
• It entails the systematic collection and analysis of data through observation, experimentation, or
measurement.
• Empirical studies are grounded in evidence obtained from real-world observations or experiences.
• The primary goal of empirical research is to test hypotheses or theories and derive conclusions based
on observable data.
• While empirical research often employs quantitative methods, it can also incorporate qualitative
approaches.
• The overarching aim of empirical research is to validate theories, understand phenomena, or make
predictions based on empirical evidence

Quantitative Research

 Quantitative research is generally related with the positivist concept.

 It usually involves collecting and converting data into numerical form so that statistical
calculations can be made and conclusions drawn.
 Objectivity is very vital in quantitative research.
 Therefore, researchers try 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).
 They also examine their methods and results for any possible bias.
 The aim of quantitative research is to develop mathematical models, theories related to
phenomenon. Quantitative research is mainly used in social sciences.

Qualitative Research

 Qualitative research is the approach usually related with the social constructivist concept
which emphasises the socially constructed nature of reality.
 It is about recording, analysing and attempting to reveal the in debt meaning and
significance of human behaviour and experience, including conflicting beliefs, behaviours
and emotions.
  The qualitative method tries to answer why and how of decision-making rather than what
and when.
 The approach to data collection and analysis is logical but allows for greater flexibility than
in quantitative research.
 Data is collected in textual form on the basis of observation and communication with the
participants, e.g., through participant observation, in-depth interviews and focus groups.
 It is not converted into numerical form and is not statistically analysed.

Formulation of research problem

Formulating a research problem involves identifying a specific issue or question that the researcher wishes to
investigate through their study. The research problem should be clear, concise, and relevant to the field of study,
and should provide a foundation for the research objectives, hypotheses, and research design.

Steps in formulating the research problem:

To formulate a research problem, researchers typically follow these steps:

1. Identify the general research area or topic of interest.

2. Conduct a review of relevant literature to identify gaps, inconsistencies, or unresolved issues in the field.

3. Refine the topic and develop a specific research question or hypothesis that can be addressed through
the research.

4. Consider the feasibility and practicality of the research question, taking into account the available
resources, time, and ethical considerations.

5. Articulate the research problem in a clear, concise, and specific manner, to guide the research process
and provide a foundation for the research design.

A well-formulated research problem is essential for conducting a focused, relevant, and rigorous research study
that can contribute to the knowledge and understanding of the field.

Significance of Review of Literature

A review of literature is a critical examination of existing literature, research studies, and scholarly articles related
to a particular research topic or question. It aims to provide a comprehensive and systematic analysis of the
current state of knowledge on the subject, identifying gaps, inconsistencies, and emerging trends, and providing
a framework for the research study. The significance of a review of literature includes:

1. Context: A review of literature provides the context and background for the research study, helping to
establish the significance and relevance of the research question, and placing it within the wider field
of study.
2. Identification of Gaps: By analysing the existing literature, a review of literature can help to identify gaps
or inconsistencies in the current understanding of the topic, which can be addressed through the
research study.
3. Methodological Guidance: A review of literature can help to inform the research design and
methodology, by identifying the strengths and weaknesses of previous research studies, and
highlighting best practices in the field.
4. Generation of Research Questions: A review of literature can inspire the formulation of research
questions, hypotheses, and objectives, by identifying unanswered or under-researched areas in the
field.
5. Evaluation: A review of literature provides a foundation for evaluating the outcomes and contributions
of the research study, by establishing a benchmark against which to measure the success of the
research.

Overall, a review of literature is an essential component of any research study, as it helps to establish the
context, relevance, and significance of the research question, and provides a framework for the research
design and analysis.