Chapter -1

Introduction
to
Business Research Methods

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 Introduction
• Search of knowledge
• Scientific and systematic search
• Art of scientific investigation
• A careful investigation or inquiry
specially through search for new
facts in any branch of knowledge
 Business research can be defined as a
systematic and objective process of
gathering, recording, and analyzing
data that provides information to
guide business decisions.
It is used either to understand the
market trends, or find the optimal
marketing mix, devise effective HR
policies or find the best investment
options.
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 Definition
• To systematic process of collecting and
analyzing information (data) in order to
discover of new knowledge or expand and
verify of the existing one (e.g. theory - law)
Scope of business research
• Business research is used to solve
the various operational and
planning problems that arise in a
business organization.
• The three major forms of business
research are
1)Market research
2)Operations research
3)Motivational research
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Basic research and Applied
research
• Business research studies can be
classified into two categories.
1.Basic research
2.Applied research

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 Types
• Fundamental Research
• Applied Research
• Descriptive Research
• Analytical Research
• Quantitative Research
• Qualitative Research
• Conceptual Research
• Empirical Research

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 TYPES OF RESEARCH
 Descriptive vs Analytical Research

Descriptive Research is a fact finding

investigation which is aimed at describing the
characteristics of individual, situation or a
group (or) describing the state of affairs as it
exists at present.

Analytical Research is primarily

concerned with testing hypothesis and
specifying and interpreting relationships, by
analyzing the facts or information already
available.
Applied vs Fundamental
Research
Applied Research or Action Research is
carried out to find solution to a real life
problem requiring an action or policy decision.

Fundamental Research which is also

known as basic or pure research is undertaken
for the sake of knowledge without any
intention to apply it in practice.
It is undertaken out of intellectual
curiosity and is not necessarily problem-
oriented.
Quantitative vs
Qualitative Research
Quantitative Research is employed for
measuring the quantity or amount of a
particular phenomena by the use of statistical
analysis.

Qualitative Research is a non-

quantitative type of analysis which is aimed at
finding out the quality of a particular
phenomenon.
 Some other types of
research..
 One-time Research – Research confined to a
single time period.
 Longitudinal Research – Research carried on over
several time periods.
 Diagnostic Research – It is also called clinical
research which aims at identifying the causes of a
problem, frequency with which it occurs and the
possible solutions for it.
 Exploratory Research – It is the preliminary study
of an unfamiliar problem, about which the
researcher has little or no knowledge. It is aimed
to gain familiarity with the problem, to generate
new ideas or to make a precise formulation of the
problem. Hence it is also known as formulative
research.
 Exploratory Research
• Exploratory research aims at understanding the
topic being researched. Through exploratory
research, one arrives at a set of questions that
are to be answered in order to solve the problem
or cash in on an opportunity.
• Exploratory research is undertaken in the initial
stages of the research process. It is an informal
process that helps in defining the identified
problem.
• This process involves evaluating the existing
studies on related topics, discussing the problem
with experts, analyzing the situation and so on.

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 Basic Research

• Basic research refers to a focused,

systematic study or investigation
undertaken to discover new knowledge or
interpretations and establish facts or
principles in a particular field.
Examples
• Understanding the consumer buying
process.
• Examining the consumer learning process.

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 Applied research
• This refers to investigation undertaken
to discover the applications and uses
of theories, knowledge, and principles
in actual work or in solving problems.
Examples
• Evaluating the impact of a training
program on employee performance
• Examining consumer response to
direct marketing programs.
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 Characteristics of Research

Research is directed towards the solution of a problem.

Research is based upon observable experience or empirical
evidence.
Research demands accurate observation and description.
Research involves gathering new data from primary sources or
using existing data for a new purpose.
Research activities are characterized by carefully designed
procedures.
Research requires expertise i.e., skill necessary to carryout
investigation, search the related literature and to understand and
analyze the data gathered.
Research is objective and logical – applying every possible test to
validate the data collected and conclusions reached.
Research involves the quest for answers to unsolved problems.
Research requires courage.
Research is characterized by patient and unhurried activity.
Research is carefully recorded and reported.
 Objectives of Research
The purpose of research is to discover answers through the application of
scientific procedures.

The objectives are:

To gain familiarity with a phenomenon or to achieve new insights into it –
Exploratory or Formulative Research.
To portray accurately the characteristics of a particular individual, situation
or a group – Descriptive Research.
To determine the frequency with which something occurs or with which it is
associated with something else – Diagnostic Research.
To test a hypothesis of a causal relationship between variables – Hypothesis-
Testing Research.
 QUALITIES OF A GOOD RESEARCH

• Systematic
• Logical
• Empirical
• Replicable
• Creative
• Use of multiple methods
SCOPE / SIGNIFICANCE OF RESEARCH

 RESEARCH FOR DECISION MAKING

 Throws light on risks and uncertainty

 Identify alternative courses of action

 Helps in economic use of resources

 Helps in project identification

 Solves investment problems

 Solves pricing problems

 Solves allocation problems

 Solves decision making issues in HR

 Solves various operational and planning

problems of business and industry
 Provides the basis for all government policies in
our economic system.

 Helps social scientists in studying social

relationships and in seeking answers to various
social problems.

 For students, research means a careerism or a

way to attain a high position in the social
structure.

 For professionals in research, it may mean a

source of livelihood.
 For philosophers and thinkers, research means
the outlet for new ideas and insights.

 For literary men and women, research means

development of new styles and creative work.

 For analysts and intellectuals, research means

generalizations of new theories.
 CRITERIA OF 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.
 SCIENTIFIC METHOD
 ‘Science’ refers to the body of systematic and organised
knowledge which makes use of scientific method to acquire
knowledge in a particular field of enquiry.

 Scientific method is the systematic collection of data (facts)

and their theoretical treatment through proper observation,
experimentation and interpretation.

 Scientific method attempts to achieve a systematic

interrelation of facts by experimentation, observation, and
logical arguments from accepted postulates and a combination
of these three in varying proportions.
 BASIC POSTULATES
IN SCIENTIFIC METHOD

 It relies on empirical evidence.

 It utilizes relevant concepts.
 It is committed to only objective
considerations.
 It presupposes ethical neutrality.
 It results into probabilistic predictions.
 The methodology is made known.
 Aims at formulating scientific theories.
 Role of Business Research in
Decision-Making
The business decision making
process in an organization goes
through these key interrelated
stages. They are:
• Problem/opportunity identification
• Problem/opportunity prioritization
and selection
• Problem/opportunity resolution
• Implementing the course of action
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Factors Affecting Business
Research
Conducting business research also involves
cost, time and effort. The major factors
are:
• Time constraint
• Availability of resources
• Availability of data
• Nature of information sought
• Benefits versus cost

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 Globalization and Business
Research
• Companies are increasingly looking
out for international markets due to
various compelling reasons.
• Some of the issues that an
organization needs to consider
before venturing into international
business research are:
contd…
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Contd….

• Global business research efforts need to

be more closely associated with market
growth opportunities outside the
industrialized nations.

• International business researchers need to

devise new creative approaches to
understand the international markets.

• Researchers should make use of

technological advances in order to
undertake international business activities
effectively. 28
 Business Research and
Internet
• Use of the internet in business research
studies is increasing. The declining costs
of conducting online research activities
coupled with increasing number of internet
users, has made the internet a cost
effective alternative to traditional research
methods for business research
organizations. The role of the internet in
primary and secondary research is as
follows:
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 Primary Research
• Primary data is collected directly
from respondents using data
collection methods like survey
interviews, questionnaires,
measurements, direct observation,
or tabulation. There are various
advantages in conducting online
surveys compared to traditional
survey methods. These include:

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• The responses and feedback can be
obtained faster.
• Costs for conducting online surveys
are less compared to traditional
survey methods.
• Questionnaires can be delivered to the
respondents faster.
• Confidentiality is maintained as only
the recipients read the questionnaire.
• Respondents can reply to the
questionnaire at their convenience.
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 Secondary Research
Secondary data already exists which
has been collected by some other
person or organization for their use,
and is generally made available to the
other researchers free or at a
concessional rate. Major use of the
internet in business research is in the
area of secondary research. The
research reports and the data bases
maintained by major research
companies are also available on the
net.
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Thanks for your attention!

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