UNI T - I

BUSINESS RESEARCH
TOPICS
Meaning of Business Research
Types of Research
Research Process
Measurement Scales and Variables
Constructing a Hypothesis
RESEARCH
ORGANIZED
SYSTEMETIC
WAY OF
FINDING ANSWERS TO
QUESTIONS!!
RESEARCH
Systematic
There is a definite set of procedures that you
will follow. There are certain things in the
research process which are always done in
order to get most accurate results
RESEARCH
Organized
There is a structure or method in going about
research. It is a planned procedure, not a
spontaneous one. It is focused and limited to
a specific scope.
RESEARCH
Finding Answers
Whether it is answer to a hypothesis or even
a simple question, research is successful
when we find answers. Sometimes the
answer is no but it is still an answer.
RESEARCH
Questions
These are central to a Research. If there is no
question then the answer is of no use.
Research is focused on relevant and useful
and important questions. Without a question
research has no focus, drive or purpose.
RESEARCH
Research is the process of finding solutions to a
problem after a thorough study and analysis of
the situational factors.
Managers in organizations constantly engage
themselves in studying and analyzing issues
and hence are involved in some form of
research activity as they make decisions at the
workplace.


RESEARCH
Sometimes managers make good decisions
and the problem gets solved.
Sometimes managers make poor decisions and
the problem persists.
The difference between making good decisions
and poor decisions, lies in how managers go
about the decision-making process.
RESEARCH (RESEARCH)
Research information is neither intuitive nor
haphazardly gathered.
Literally, research (re-search) -search
again
Business research must be objective
Detached and impersonal rather than
biased
It facilitates the managerial decision
process for all aspects of a business.
RESEARCH (RESEARCH)
Research is a systematic, controlled, and
critical investigation of natural phenomena
guided by theory and hypotheses about the
presumed relations among phenomena.
RESEARCH (RESEARCH)
Research comprises of defining and
redefining problems, formulating hypothesis
or suggested solutions; collecting,
organizing and evaluating data; making
deductions and reaching conclusions; and
at last carefully testing the conclusions to
determine whether they fit the formulating
hypothesis (Clifford Woody).
WHAT IS RESEARCH?
Research is an organized and systematic
inquiry or investigation which provides
information for solving a problem or finding
answers to a complex issue.
Research is unbiased, structured and
sequential method of enquiry, directed
towards a clear, implicit or explicit business
objective.
This enquiry might lead to validating the
existing postulates or arriving at new theories
and models.


CHARACTERISTICS OF RESEARCH
Research
1. is directed to solve a problem.
2. generates generalization, principles, or
theories.
3. is based upon observable experience or
empirical evidence.
4. demands accurate observation and
description.
5. involves gathering new data from primary
sources or existing data for a new purpose.
CHARACTERISTICS OF RESEARCH
Research
6. is systematic and applies rigorous
analysis.
7. requires expertise.
8. strives to objective and logical.
9. is characterized by patient and unharried
activity.
10. requires courage
IMPORTANCE OF RESEARCH
Improves quality of life
Improves instruction
Improves students achievement
Satisfies mans needs
Reduces the burden of work
Has deep-seated psychological aspects
Improves the exportation of food products

MANAGERS NEED RESEARCH
Research provides the needed
information that guides managers to
make informed decisions to
successfully deal with problems.
The information provided could be the
result of a careful analysis of data
gathered firsthand or of data that are
already available (in the company).
WHY MANAGERS NEED BETTER
INFORMATION
Managers in organizations constantly
engage themselves in studying and
analyzing issues and hence are involved in
some form of research activity as they make
decisions at the workplace.
For Problem Solving
For Decision Making
For Planning
For Controlling

WHY MANAGERS NEED BETTER
INFORMATION
Sometimes managers make good decisions
and the problem gets solved.
Sometimes managers make poor decisions
and the problem persists.
The difference between making good
decisions and poor decisions, lies in how
managers go about the decision-making
process.

WHY MANAGERS NEED BETTER
INFORMATION
Good decision making fetches a yes
answer to the following questions:
Do managers identify where exactly the
problem lies?
Do they correctly recognize the relevant
factors in the situation needing
investigation?
Do they know what types of information are
to be gathered and how?
WHY MANAGERS NEED BETTER
INFORMATION
Do they know how to make use of the
information so collected and draw
appropriate conclusions to make the right
decisions.
Do they know how to implement the results
of this process to solve the problem?


SO RESEARCH
This is the essence of research and to be
successful manager it is important for you to
know how to go about making the right
decisions by being knowledgeable about
the various steps involved in finding solutions
to problematic issues.

THE EXCITEMENT OF RESEARCH
Modern technology has made research an
exciting and a relatively smooth process.
Personal computer with any means to an
Internet connection places one within easy
reach of knowledge of what is happening in
the global markets and how the world
economy is impacting on business.

THE EXCITEMENT OF RESEARCH
Decision making is merely a process of
choosing from among alternative solutions
to resolve a problem and research helps to
generate viable alternatives for effective
decision making.

BUSINESS RESEARCH
Business research can be described as a
systematic and organized effort to
investigate a specific problem encountered
in the work setting, that needs a solution.
Business research comprises a series of
steps designed and executed, with the goal
of finding answers to the issues that are of
concern to the manager in the work
environment.

BUSINESS RESEARCH
Steps of business research:
To know where the problem areas exist in
the organization.
To identify as clearly and specifically as
possible the problems that need to be
studied and resolved.
Gather information, analyze the data, and
determine the factors that are associated
with the problem and solve it by taking the
necessary corrective measures.

BUSINESS RESEARCH
In business, research is usually conducted to
resolve problematic issues in the areas of
accounting, finance, management, and
marketing.
Problems in Accounting:
Budget control systems
Inventory costing methods
Depreciation
Time-series behavior of quarterly earnings
Transfer pricing
Taxation methods

BUSINESS RESEARCH
Problems in Finance:
The operations of financial institutions
Optimum financial ratios
Mergers and acquisitions
Leveraged buyouts
Inter-corporate financing
Yields on mortgages
The behavior of the stock exchange

BUSINESS RESEARCH
Problems in Management:
Employee attitudes and behaviors
Human resources management
The impact of changing demographics on
management practices
Production operations management
Strategy formulation
Information systems
BUSINESS RESEARCH
Problems in Marketing:
Product image
Advertising
Sales promotion
Product distribution
Product packaging
Product pricing
After-sales service
Consumer preferences
New product development
A RESEARCHER
A researcher should work towards a goal,
whether immediate or futuristic, else the
research looses its significance in the field of
management.
FOR A GOOD QUALITY RESEARCH
YOU should
Have a good theoretical knowledge of the
subject matter (marketing, finance, etc.)
Possess some practical knowledge
Know the literature of a particular problem
Have a general knowledge of the subject
Be CREATIVE


INTRODUCTION TO RESEARCH
APPROACHES
BUSINESS
RESEARCH
Conclusive
Research
Descriptive
Research
Causal
Research
Exploratory
Research
Basic
Research
Applied
Research
INTRODUCTION TO RESEARCH
APPROACHES
Sometimes a research might be done for a
purely academic reason of a need to know,
to investigate some best practices
inventory management or a new cause and
effect relationship, work-family conflict and its
impact on turnover intentions.
This research is termed as Fundamental or
BASIC Research.
INTRODUCTION TO RESEARCH
APPROACHES
On the other hand you have contextual or
restricted studies. For example, your product
that was declared a winner in test marketing
that you conducted is not able to take off
after the launch and you need to identify the
reason for this, in order to take corrective
action.
The study that you would conduct would have
limited relevance and be able to generate
knowledge specific to the problem situation.
This research is called APPLIED Research.
BUSINESS RESEARCH APPROACHES
Research can be undertaken for two
different purposes:
1. To solve a current problem faced by the
manager in the work setting. Such research
is called Applied Research.
2. To generate a body of knowledge about
how to solve problems that could be
occurred in organizations. This is called
basic research or fundamental research. It is
also known as Pure/Basic/Fundamental
Research.

EXAMPLES :
APPLIED RESEARCH:
Apples iPod sales increased by 200% from
2001 to 2008. but the sales decreased by 6%
in 2009. What is the reason for this decrease?
The question is: what will apple do about this
problem?


EXAMPLES :
APPLIED RESEARCH:
Should McDonalds add Italian pasta dinners
to its menu?
Should Procter & Gamble add a high-priced
home teeth bleaching kit to its product line?



EXAMPLES :
BASIC RESEARCH:
How did the universe begin?
What are protons, neutrons, and electrons
composed of?
What is the specific genetic code of the fruit
fly?

EXAMPLES :
BASIC RESEARCH:
Is executive success correlated with high
need for achievement?
Are members of highly cohesive work
groups more satisfied than members of less
cohesive work groups?
Do consumers experience cognitive
dissonance in low-involvement situations?
DISTINCTION BETWEEN APPLIED AND
BASIC RESEARCH
Applied research is specifically aimed at
solving a currently experienced problem.
Basic research has a broader objective of
generating knowledge and understanding
of phenomena and problems that occur in
various organizational settings.
Both types of research follow the same steps
of systematic inquiry to arrive at solutions to
problems.

DISTINCTION BETWEEN APPLIED AND
BASIC RESEARCH
So Basic Research attempts to expand the
limits of knowledge and is not directly
involved in the solution to a pragmatic
problem.
So Applied Research is conducted when a
decision must be made about a specific
real-life problem.



BUSINESS RESEARCH APPROACHES
Exploratory Research
to resolve ambiguity and clarify the nature of the
problem
initial research conducted to clarify and define
the nature of a problem
allows the researcher to gain better
understanding of the concept and provides
direction in order to initiate a more structured
research
BUSINESS RESEARCH APPROACHES
Exploratory Research
sometimes the general problem is realized but a
better understanding is needed before a detailed
research
Examples:
Absenteeism is increasing and we dont know why
would people be interested in our new product idea?
- methods: interviews, basic statistical calculations

BUSINESS RESEARCH APPROACHES
Exploratory Research
studies of this nature and less structured and more
flexible in approach and are not conducted to test
and validate any preconceived propositions.
this research could lead to some testable
hypothesis.

BUSINESS RESEARCH APPROACHES
Exploratory Research
undertaken with the aim of clarifying ambiguous
problems
general problems usually known but not sufficiently
understood
the purpose is to get more information, not to
uncover specific courses of action (subsequent
research)
Determining a specific course of action to follow is
not a purpose of exploratory research!
BUSINESS RESEARCH APPROACHES
Conclusive Research
Tests and authenticates the propositions revealed
by exploratory research.
It is usually quantitative in nature. This is carried out
to test and validate the formulated hypothesis and
specified relationships.
The variables in the research are clearly defined
with explicit quantifiable indications. The timeframe
of the study and the timeframe of the study is more
formal and representative.
It is not always exploratory that lead to conclusive
research
BUSINESS RESEARCH APPROACHES
Exploratory Research Conclusive Research
Loosely structured in design Well structured and systematic
in design
Are flexible and investigative in
technology
Have a formal and definitive
methodology that needs to be
followed and tested
Do not involve testing of
hypothesis
Most conclusive researches are
carried out to test the
hypothesis
Findings might be topic specific
an might not have much
relevance outside the
researchers domain
Findings are significant as they
have a theoretical or applied
implementation
BUSINESS RESEARCH APPROACHES
Descriptive Research
Research designed to describe the characteristics
of a phenomenon
who? what? when? where? how?
Examples:
What kind of people prefer Big Mac
hamburgers?
What are the characteristics of students in this
class?
methods: surveys, analysis of already existing
data
BUSINESS RESEARCH APPROACHES
Descriptive Research
It describes the situation, community,
phenomenon, outcome or programme.
Main goal is to describe the data and
characteristics of what is being studied.
Aims at elucidating the data and primary
characteristics about the object, situation and
concept under study.
BUSINESS RESEARCH APPROACHES
Descriptive Research
Undertaken with the aim of determining the
characteristics of a population or phenomenon
Previous knowledge of problem exists
High degree of precision or accuracy required
Examples:
Who are the main consumers of organic foods?
How many students read the prescribed course literature?
Where do most holiday-makers travelling overseas go?
When do petrol stations tend to raise their prices?
BUSINESS RESEARCH APPROACHES
Causal Research (Relationship Research)
This is concerned with exploring the effect of one
variable over another. It requires a rigid sequential
approach to sampling, data collection and data
analysis
Research conducted to identify cause-and-effect
relationships among variables
Examples:
The influence of price and advertising on sales
Which of two training programs is more effective?
BUSINESS RESEARCH APPROACHES
Causal Research (Relationship Research)
undertaken with the aim of identifying cause and
effect relationships amongst variables
are normally proceeded by exploratory and
descriptive research studies
Often difficult to determine because of the
influence of other variables
Examples:
Higher ice-cream consumption causes more people to
drown (indicative of a causal relationship (?))
BUSINESS RESEARCH APPROACHES
Exploratory Studies
to clarify the nature of the problem (interviews, basic
statistical calculations)
Descriptive Research
to describe the characteristics of a phenomenon
(verbal or statistical description with no explanation)
Causal research
to establish cause-and-effect relationships between
variables (you should have an expectation, e.g.,
training and productivity etc.)
association is not necessarily causality, Indicates
things are or are not going as planned
research may be required to explain why something
went wrong
SOME OTHER BUSINESS RESEARCH
APPROACHES
The Quantitative Approach of analysis uses
different types of qualitative analysis. The
analysis will be based on the numerical and
percentage terms.
Further, quantitative research also consists of
usage of many statistical tools like
arithmetic mean, median, mode, standard
deviation percentage etc.

SOME OTHER BUSINESS RESEARCH
APPROACHES
Qualitative Approach is based on subjective
examination of behavior, attitude, opinions,
behavior impressions etc.
The tools and techniques used are group
discussion, group interviews, projective
techniques, in-depth interviews of the
respondents etc.
RESEARCH IS A SCIENTIFIC METHOD
The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove prior
conceptions.

RESEARCH IS A SCIENTIFIC METHOD
1 Observation
2 Identification of problem area
3 Theoretical framework
4 Hypothesis
5 Research design
6 Data collection
7 Data analysis
8 Data interpretation
9 Implementation
INTERNAL VERSUS EXTERNAL
CONSULTANTS/RESEARCHERS
Internal Consultants or Researchers:
Some organizations have their own research
department, which might be called:
The management services department
The organization and methods department
R & D (research and development department)
Such a department within the organization
serves as the internal consultant if it face
certain problems and seek help.
This unit would be useful in several ways
INTERNAL RESEARCHERS
The internal researchers have better chance
of being readily accepted by the
employees.
The team would require much less time to
understand the structure, the philosophy
and climate and work system of the
organization.

INTERNAL RESEARCHERS
They would be available for implementing
their recommendations after the research
findings are accepted.
The internal team might cost considerable
less than the external team.

62
DISADVANTAGES OF INTERNAL
RESEARCHERS
They might have less fresh ideas and
perspectives that might be needed to
correct the problems.
There is scope for certain powerful groups in
the organization to influence or misrepresent
certain facts.
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ADVANTAGES OF EXTERNAL
CONSULTANTS
They have a wealth of experience from
having worked with different types of
organizations that have had the same or
similar types of problems.
They might have more knowledge of current
sophisticated problem-solving models
through their periodic training programs.
64
DISADVANTAGES OF EXTERNAL
CONSULTANTS
The cost of hiring an external research team
is usually high.
They need a considerable time to
understand the organization to be
researched.
They seldom get a warm welcome, nor are
accepted by employees.
They charges additional fees for their
assistance in the implementation and
evaluation phases.
65
ETHICS AND BUSINESS RESEARCH
Ethics in business research refers to a
code of conduct of behavior while
conducting research.
Ethical conduct applies to the organization
and the members that sponsor the research,
the researchers who undertake the
research, and the respondents who provide
them with the necessary data.
66
ETHICS AND BUSINESS RESEARCH
The members that sponsor the research
should do it in good faith, pay attention to
what the results indicate, and pursue
organizational rather than self-interest.
Ethical conduct should also be reflected in
the behavior of the researchers who
conduct the investigation, the participants
who provide the data, the analysts who
provide the results, and the entire research
team that presents the interpretation of the
results and suggests alternative solutions.
DETERMINING WHEN TO CONDUCT
BUSINESS RESEARCH
Time constraints
Availability of data
Nature of the decision
Benefits versus costs

Is sufficient
time available
before
a managerial
decision
must be made?
Is the
information
already
on hand
inadequate
for making
the decision?
Is the
decision
of
considerable
strategic
or tactical
importance?
Does the
value
of the research
information
exceed the
cost
of conducting
research?
B
U
S
I
N
E
S
S
R
E
S
E
A
R
C
H
Do Not Conduct Business Research
Time Constraints
Availability
of Data
Nature of
the Decision
Benefits
vs. Costs
Yes
Yes
Yes Yes
No
No No No
DETERMINING WHEN TO CONDUCT
BUSINESS RESEARCH
DETERMINING WHEN TO CONDUCT
BUSINESS RESEARCH
Value versus Cost
Potential Value of a Business Research Effort
Should Exceed Its Estimated Costs

VALUE SHOULD EXCEED
ESTIMATED COSTS
Value
Increased certainty

Increased likelihood
of a correct
decision

Improved business
performance and
resulting higher
profits
Costs
Research
expenditures
Delay of business
decision and
possible disclosure
of information to
rivals
Possible erroneous
research results
OBJECTIVES OF RESEARCH
Gain familiarity with a phenomenon or to
achieve new insights into it (exploratory
research studies)
Portray accurately characteristics of
particular individual, situation or a group
(descriptive research studies)
OBJECTIVES OF RESEARCH
Determine the frequency with which
something occurs or with which it is
associated with something else (causal
research studies)
Test a hypothesis of a casual relationship
between variables (hypothesis testing
research studies)