Research Methodology

BBA Sem-III

Faculty: Dr. Rohan Mishra

Contact: rohan.mishra@iilm.edu
+91-9161481503

COURSE CODE: UMC30013 CREDITS: 3

 What is Research

The word ‘Research’ comprises of two words i.e., Re & Search. It means to search again. So research
means a careful investigation or inquiry especially through search for new facts in any branch of
knowledge. Research is the process of finding solutions to a problem after a thorough study and analysis
of the situational factors.
Why do managers need to know/study research
methodology?
Managers need to know/study research methodology for several important reasons:
Informed Decision-Making
Managers often face complex decisions that require data to make informed choices. Understanding
research methodology enables them to analyze data correctly, interpret findings, and apply insights to
business decisions.
Example: A retail manager notices a decline in store sales. By conducting customer surveys and
analyzing purchasing data, they discover that customers are dissatisfied with the store layout. Using
this data-driven insight, the manager decides to redesign the store layout, leading to increased sales.
 Critical Evaluation of Information
Managers frequently encounter research reports, market studies, and industry analysis.
Knowledge of research methodology allows them to critically evaluate the quality, validity,
and reliability of the information presented.

Understanding research methodology helps managers recognize biases, limitations, and

errors in data, ensuring they don't base decisions on flawed or misleading information.

Example: A manager receives a market research report suggesting a new product will succeed
in a specific demographic. Understanding research methodology, the manager identifies flaws
in the sample size and the survey's leading questions. As a result, they decide to conduct
additional research before launching the product, preventing a potentially costly mistake.
 Strategic Planning
Forecasting and Trends Analysis: Managers use research to identify trends, forecast future
market conditions, and plan long-term strategies. Research methodology equips them with
tools to gather and analyze relevant data effectively.
Competitive Advantage: Managers who understand research can identify opportunities for
innovation, understand customer needs better, and stay ahead of competitors.
Example: A manager at a tech company is planning to expand into a new geographic market.
By conducting research on local consumer behavior and trends, they identify a growing
demand for smart home devices. This insight helps them focus their expansion strategy on
promoting these products, giving them a competitive edge.
 Efficient Resource Allocation
Cost-Effectiveness: Research helps managers make cost-effective decisions by identifying
the most efficient ways to allocate resources, whether in marketing, product development, or
operations.
Risk Management: By employing research methods, managers can assess risks, predict
potential outcomes, and mitigate potential losses.

Example: A marketing manager needs to allocate a limited budget across various advertising
channels. By conducting research on the effectiveness of past campaigns, they find that social
media ads yield a higher return on investment than print ads. They allocate more resources to
social media, maximizing the impact of the marketing spend.
 Improving Organizational Practices
Performance Measurement: Research methodologies can be used to evaluate employee
performance, customer satisfaction, and overall organizational effectiveness, leading to
continuous improvement.
Policy Formulation: Managers use research to develop, test, and refine policies that align
with organizational goals and industry standards.

Example: An HR manager wants to improve employee engagement. They use research

methodology to conduct employee satisfaction surveys and analyze the results. The data
reveals that employees feel undervalued due to a lack of recognition. The manager
implements a recognition program, leading to higher employee morale and productivity.
 Adaptation to Change
Navigating Uncertainty: In a rapidly changing business environment, research methodology
helps managers adapt by providing tools to investigate new challenges, understand emerging
trends, and make agile decisions.

Example: A manager at a manufacturing company notices a rise in raw material costs. To

adapt, they conduct research on alternative materials and suppliers. This research helps them
find a more cost-effective supplier, allowing the company to maintain profitability despite
market changes.
Ethical Responsibility
Ensuring Ethical Standards: Understanding research ethics is crucial for managers to
ensure that their decisions and the research they rely on adhere to ethical standards,
particularly when dealing with customer data, employee information, or sensitive business
issues.
 Business Research

Business research is the systematic process of gathering, analyzing, and interpreting data and
information related to various aspects of business activities. The primary purpose of business research
is to help organizations make informed decisions, solve business problems, identify opportunities, and
improve overall business performance.

This research can cover a wide range of topics, including market trends, customer behavior,
competitive analysis, product development, operational efficiency, and financial performance.
 The objectives of research

1. Exploration

Objective: To explore new areas where little information is available. This is often done to gain a better
understanding of an issue, identify patterns, or generate initial insights.

Example: A company might explore consumer behavior in a newly emerging market to identify
potential opportunities.
2. Description:

Objective: To describe the characteristics, functions, or phenomena in detail. Descriptive research aims to
answer questions like who, what, where, when, and how.

Example: Conducting a survey to describe the demographic profile of a target market, such as age, gender,
income level, and purchasing habits.

3. Explanation:

Objective: To explain why certain phenomena occur, focusing on identifying causal relationships between
variables.

Example: A study investigating why employee turnover is higher in certain departments of a company,
aiming to identify the underlying causes.
4. Prediction:

Objective: To predict future events or behaviors based on existing data and trends. Predictive research helps
in forecasting and planning.

Example: Using sales data to predict future demand for a product, allowing a company to plan inventory
and production accordingly.

5. Control:

Objective: To control or manipulate variables to achieve desired outcomes. This is often the goal in
experimental research, where researchers seek to determine the effect of one variable on another.

Example: Testing different marketing strategies to determine which one leads to higher sales, with the goal
of implementing the most effective strategy.
6. Improvement:

Objective: To improve processes, products, or systems by identifying weaknesses and testing solutions. This
is often seen in applied research.

Example: Conducting research to improve the efficiency of a manufacturing process, resulting in reduced
costs and increased productivity.

7. Development of New Knowledge:

Objective: To generate new theories, concepts, or models that can contribute to the advancement of a field
or discipline.

Example: Academic research in social sciences that leads to the development of new theories about human
behavior.
8. Evaluation:

Objective: To assess the effectiveness or impact of a program, process, or intervention.

Example: Evaluating the success of a new employee training program by measuring changes in
productivity and job satisfaction.
 Some Commonly Researched Areas in Business
1. Employee behaviours such as performance, absenteeism, and turnover.
2. Employee attitudes such as job satisfaction, loyalty, and organizational commitment
3. Employee selection, recruitment, training, and retention.
4. Updating policies and procedures in keeping with latest government regulations and
organizational changes.
5. Organizational outcomes such as increased sales, market share, profits, growth, and
effectiveness.
6. Consumer complaints.
7. Impression management, logos, and image building.
8. Cost of capital, valuation of firms, dividend policies, and investment decisions.
9. Qualified pension plans and cafeteria type of benefits for employees.
10.Keeping ahead of the competition in the new millennium.