Documente Academic
Documente Profesional
Documente Cultură
SHANKAR
Associate Professor
In common language, Research refers to
“Search for Knowledge”. It is an art of scientific
investigation.
It is also a systematic design, collection,
analysis and the reporting the findings and
solutions for the marketing problems of a
company. Research is required because of the
following reasons:
◦ To identify and find solutions to the problems
◦ To help making decisions:
◦ To develop new concepts
◦ To find alternate strategies
1. To identify and find solutions to the problems
Understand the problem in depth. By identifying the problem precisely
it is easy to collect the relevant data to solve the problem.
Ex: Why Demand for a particular product is falling?
3. Judging problem
One of the natures of business research is judging local problems of the
environment in which our establishment is going to operate.
4. Flexible
Another characteristic of business research objectives is flexibility. The
research may be programmed for one area and then something shows-up.
If that “something” is pertinent, it should be investigated and included in
the research. Research is discovering new things and factors, it should not be
easily sidetracked but it also should not be inflexible.
Time Constraints
Availability of Data
Nature of the Decision
Benefit versus Costs
1. Time Constraints:
Systematic Research doing takes time. In many instances, management
concludes that because a decision must be made immediately, there will be no
time for research.
As a result, decisions are sometimes made without adequate information or
thorough understanding of the situation.
Although such rapid decision-making is not ideal, sometimes the urgency of a
situation precludes the use of research.
2. Availability of Data:
Often Managers already possess enough information to make sound decisions
with no business research. When they lack adequate information, however,
research must be considered.
Managers must ask themselves if the research will provide the information
needed to answer the basic questions about a decision.
Furthermore if a potential source of data exists, managers will want to know,
how much it will cost to obtain the data. If the data cannot be obtained, research
cannot be conducted.
3. Nature of the Decision:
The value of business research will depend on the nature of the managerial
decision to be made. A routine tactical decision that does not require a
substantial investment may not seem to warrant a substantial expenditure for
research. For example, a computer company must update its operator’s
instruction manual when it makes minor product modifications.
The research cost of determining the proper wording to use in updating the
manual is likely to be too high for such a minor decision.
The nature of the decision is not totally independent of the next issue to be
considered, the benefits versus the costs of the research.
Marketing Research:
Market Research:
Product Research
Advertising Research:
1. Marketing Research:
Consumer Research or Marketing Research includes a form of applied
sociological study, which concentrates on understanding the behaviors, whims
and preferences, mainly current and future of consumers in a market based
economy.
2. Market Research:
Market research has a broad scope and includes all aspects of the
business environment.
It asks questions about competitors, market structure, government
regulations, economic trends, technological advances and numerous other
factors that make up the business environment.
Sometimes the term refers more particularly to the financial analysis of
companies, industries or sectors.
In this case, financial analysts usually carry out the research and provide
the results to investment advisors and potential investors.
3. Product Research:
This looks at what products can be
produced with available technology, and what
new product innovations near-future
technology can develop.
4. Advertising Research
It attempts to assess the likely impact of
an advertising campaign in advance, and also
measure the success of a recent campaign.
Significance or Importance of Business Research
2. Applied research
Applied research is carried out when any real-life problem or social problem requires
immediate solution which can be helpful in policy formulation by the concerned agency. This
is considered problem oriented and action directed activity in which immediate and practical
results are required.
There is vast scope for applied research in the field of technology, management, commerce
and economics, as it contributes to the development of new facts or testing of new theory.
Applied research can put theory to the test, it may add to conceptual clarification and integrate
previous existing theories.
3. Descriptive research:
Purpose: A diagnostic study may also be concerned with discovering and testing whether certain
variables are associated, e.g., are persons hailing from rural areas more suitable for managing the
rural branches of banks? Do more villagers than city-voters vote for a particular party?
Requirements: Both descriptive and diagnostic studies share common requirements, viz., prior
knowledge of the problem, its thorough formulation, clear-cut definition of the given population,
adequate methods for collecting accurate information, precise measurement of variables, statistical
analysis and test of significance. As the aim is to obtain complete and accurate information about a
given situation/phenomenon, the research design must make much more provision for protection
against bias than is required in an exploratory study. Moreover, the amount of work involved is
considerable and so concern with economy of research effort is extremely important.
6. Conceptual Research:
Conceptual research is conducted by the thinkers and philosophers for developing new
theories or for reinterpreting old one. In this type of research the researcher should collect the data to
prove or disapprove his hypothesis. The various ideologies are examples of conceptual research.
7. Action Research:
When researcher is conducted for the survey in a single workplace, than action research is
commonly used in such cases. The focus in action research is given in improving working practices.
The action research has practical purpose and it is directed towards organizational changes in
managerial set-up. The action research theories are valid through practice, rather than applied
independently to practice. It is conducted through direct action. In action research is conducted in
various phases like, base line survey, systematic action and periodical assessment.
8. Evaluation Research
This is an example of applied research. This research is conducted to find out how well a
planned programme is implemented. Therefore, evaluation research deals with evaluating the
performance or assessment of a project. Example: “Rural Employment Programme Evaluation” or
“Success of Midday Meal Programme”.
Quantitative research and Qualitative research
2. Empirical Research
Empirical research is based on observation or experience without
due regards to theories. In this type of research working hypothesis is
provided and then data is collected to prove or disprove this.
Researcher here sets up the design for desired results.
3. Formalized Research
When hypothesis is tested in the research study it is known as
formalised research.
4. Survey Research
A survey is conducted with an object to understand specific aspect in defined
population. Usually the population in study is so large that the access to all the elements
is impossible. Therefore sample taken from the population will make it possible to draw
the conclusions regarding population. The purpose of the survey is to understand
phenomena by identifying influencing factors.
Survey are normally conducted through questionnaires but sometimes interview
method is used to collect necessary information. The method of conducting survey may
also be applied to analyzing large data files in an organization by using sample form.
Survey method is widely accepted for following reasons.
1. Greater amount of objectivity
2. Greater reality in findings and conclusions.
3. It is most scientific method for obtaining data and dependable result.
4. Direct observation of the population has possibility of getting accurate results.
5. Survey is extensively used in all the areas for its merit.
5. Case study
It is very difficult to define, when the phenomena under investigation are not readily form its context in
such situation case study becomes appropriate. It is characterized by in-depth study of organization. It is a concept
and intensive study of business situation.
Case study is method of investigation for exploring a live situation it is a in-depth study of situation as
whole. It is in the form of qualitative and quantitative analysis where careful observation of situation is done.
A case study uses various methods for collecting information may be in form of interview, questionnaires,
observation and documentary analysis. By this, wide variety of relevant dta is collected.
A case is report containing facts and opinions expressed by the people. The cases are designed to
acclimatize the situation to participant. This provides the description of the decision taken in particular situation.
6. Field Investigation
The field investigation is conducted in the assessment of actual situations. The results in this type of work
is more realistic. In order to have these results accuracy is required to be maintained by making selection of proper
sample. In field investigation it is very difficult to control variables and informants in the field.
7. Library Research
When secondary data is reliable enough to be used for drawing conclusions than library research is very
useful. This type of research is based on the assessment of the data available from books, periodicals and journals
available in the library.
The observations and conclusions drawn in these cases may be bias if data is not used carefully. As this is only
compilation of available data it is not considered as actual research work. If systematic investigation is made it can
also be very useful research study.
The major emphasis in exploratory research is on converting broad,
vague problem statements into small, precise sub-problem statements which is
done in order to formulate specific hypothesis.
The hypothesis is a statement that specifies, “how two or more variables
are related?” In the early stages of research, we usually lack from sufficient
understanding of the problem to formulate a specific hypothesis. Further, there
are often several tentative explanations.
Example: “Sales are down because our prices are too high”, “Our dealers
or sales representatives are not doing a good job”, “Our advertisement is weak”
and so on.
In this scenario, very little information is available to point out, what is
the actual cause of the problem.
We can say that the major purpose of exploratory research is to identify
the problem more specifically. Therefore, exploratory study is used in the
initial stages of research.
Causal research refers to the existence of a cause and effect
relationship.
This research provides evidence that suggests whether a cause
and effect relationship exists or does not exist.
It describes whether an independent variable directly influences
the behavior of a dependent variable.
This can be explained with an example. Suppose managers at a
hospital want to know the extent to which advertising creates
revenue for hospitals, they can go in for causal research.
This information will enable them to decide how much money to
allocate towards advertising for hospitals.
Cross- Sectional Research
A cross-sectional study is concerned with a sample of elements from a given population. Thus, it
may deal with households, dealers, retail stores, or other entities.
Data on a number of characteristics from the sample elements are collected and analysed. The cross-
sectional study is the most frequently used descriptive design in marketing research.
Cross-sectional design involves the collection of information from any given sample of population
elements only once.
They may be either single cross-sectional or multiple cross-sectional. In single cross-sectional
designs, only one sample of respondents is drawn from the target population and information is
obtained from this sample only once.
These designs are also called sample survey research designs.
• Examine the concepts and constructs to be used in the study. Are they satisfactorily defined?
Have operational definitions been employed where appropriate?
• Review the research questions with the intent of breaking them down into specific second and
third level question.
• If hypotheses are used, be certain they meet the quality tests.
• Determine what evidence must be collected to answer the various questions and hypotheses.
• Set the scope of the study by stating what not a part of the research question is. This will establish a
boundary to separate contiguous problems from the primary objective.
When the characteristics or plausible causes of the problem are well defined and the research
question is clearly states, it is possible to deduce the essential sub questions that will guide the
project planning at this stage of the research process.
However, if the research question is somewhat or very poorly defined, the researcher will
need further exploration and question revision to refine the original question and generate the
material for constructing investigative questions.
Investigative questions are questions the researcher must answer to satisfactorily arrive
at a conclusion about the research question.
To formulate them, the researcher takes a general research question and breaks it into
more specific questions about which to gather data.
This fractionating process can continue down through several levels of increasing
specificity.
Investigative questions should be included in the research proposal, for they guide the
development of the research design. They are the foundation for creating the research
data collection instrument.
o The subjects which are overdone and on which sufficient work has already been conducted
in particular area should be normally avoided by the researcher. It will be very difficult to
throw new light on such type of the topics.
o There are certain topics which are controversial in nature and in spite of our all efforts no
purposeful conclusions can be drawn.
o While selecting research problem, the problem which is very narrow or very vague should
be avoided for the purpose of the study.
o Whatever subject is selected for the study must have the resources available, which should
be within the reach of the researcher.
o Selection of research problems require due consideration for time, training and cost
involved in the research project.
o No research problem should be selected without having primary study of the subject.
The desire to solve research problem or to know more about the fact is the
main motivation for which the research study is conducted. Therefore it is
necessary for researchers to identify the research problem.
The identification of research problem can be classified as under
a. Conceptual Problem:
This type of problem can be solved by creative thinking for the problem.
b. Empirical Problem:
This type of problems can be solved by inductive reasoning, which
should be based on the observation made.
c. Logical Problem:
This problem can be solved by deductive methods.
Now it is very clear from the above expiation of the fact that identification of
the research problem means clear and accurate assessment of the research problem.
In order to solve the research problem.
The problem which is selected on specific rational helps us to complete the project in stipulated time
period and within the prescribed financial outlay. In order to boost up the moral of the researcher
proper selection of the problem is essential.
The factors which requires due consideration for selecting research problems are stated as below:
1. Interest of the researcher:
The interest of the researcher is the main factor while selecting problem. It is the attitude,
spirit and dedication of the researcher towards his research study, that will generate the interest in
the research study. Therefore the personal interest of the researcher is very much essential in any of
the research study.
2. Importance of the topic of the study
Topic selected for the study should not only be socially relevant but it must be useful for the
society. It should be having the reference to the practical field. The results of this type of social
relevant study will be used by the concerned individual or group of the individuals.
3. Avoid the selection of the monotonous problem
The researcher should avoid to use monotonous problem for the purpose of the research
study. Such topic for the research may not be able to generate solution for utility of the subject
matter. Therefore there should be novelty of ideas in the subject so as to have the proper utility of
the research study.
Research Problems in Management/ Types of Business Problems Encountered by Researchers:
Business executives in each of eh functional areas of management, viz, marketing, production,
finance and personnel are confronted with several interacting decision-making problems in their
day-to-day operation. Many of these problems demand a systematic research which will aid the
executives to take optimal and effective decisions.
Marketing: Different research topics studied under marketing management are:
1. Product identification
2. Demand-supply analysis
3. Market Segmentation
4. Pricing
5. Design of advertisements
Production:
1. Forecasting
2. Inventory control
3. Line of balance
4. Project management
5. Modern production system design, like JIT, computer integrated manufacturing, flexible
manufacturing, agile manufacturing, logistics management, total quality management etc.
3. Finance:
4. Personnel:
Manpower planning
Conflict management
Leadership styles
Training methods
Labour welfare study.
Promoting better decision-making
Research is the basis for innovation
Research helps in the optimal utilization of resources
Research identifies the problem areas
Research helps in forecasting, which is very useful for managers
Research helps in formulation of policies and strategies
Research helps in identifying marketing opportunities and constraints.
Research helps in evaluating marketing plans
Research helps in the development of new products or in modifying
existing products and in understanding the competitive environment.
Research Hypotheses
Meaning of hypothesis
It is considered as main instrument in research. The formulation of hypotheses plays an important
part in the growth of knowledge in every science.
A hypothesis is a tentative proposition relating to certain phenomenon, which the researcher wants
to verify when required.
Meaning of Null hypothesis:
A null hypothesis is a statement about the population, whose credibility or validity the researcher
wants to assess based on the sample.
It is formulated specifically to test for possible rejection or nullification. Hence it is named as ‘null
hypothesis’.
Null hypothesis always states “no difference”. It is this null hypothesis that is tested by the
researcher.
Types of Hypothesis
Hypotheses are classified in several ways. With reference to their function, hypotheses are of two
types: 1. Descriptive Hypothesis 2.Relational Hypothesis.
Another approach is to classify them into 1.Working hypotheses, 2.Null hypotheses and
3.Statistical hypotheses.
Third approach is to divide them on the basis of the level of abstraction. Three broad levels may
be distinguished: 1. Simple description 2. Logical derivation, and 3. Abstraction. Accordingly there
are three types of hypotheses Common-sense hypotheses, Complex hypotheses and Analytical
hypotheses.
The skill of researcher is an important factor on which usefulness of hypotheses is
based. Hypotheses being basis of research study it should be developed with
thoughtful consideration.
Example: In a right side test, the critical region lies entirely in the right tail of the sample
distribution. Whether the test is one-sided or two-sided depends on alternate hypothesis.
Example: A tyre company claims that mean life of its new type is 15,000 km. Now the
researcher formulates the hypothesis that type life is =15,000 km.
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A two-tailed test is one in which the test statistics leading to rejection of null hypothesis
falls on both tails of the sampling distribution curve as shown.
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Example: A product is manufactured by a semi-automatic machine. Now, assume
that the same product is manufactured by the fully automatic machine. This will be two-
sided test, because the null hypothesis is that the “Two methods used for manufacturing
the product do not differ significantly”.
H0 = µ1 = µ2
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Degree of freedom
It tells the researcher the number of elements that can be chosen freely.
Example: a+b/2=5. Fix a=3, b = 7. Therefore the degree of freedom is 1.
Compute
Carry out computation.
Make Decisions:
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Errors in Hypothesis testing
First one is called Type 1 error (α) , and the second is called Type 2 error(β).
When a= 0.10 it means that true hypothesis will be accepted in 90 out of 100
occasions. Thus, there is a risk of rejecting a true hypothesis in 10 out of every 100
occasions.
To reduce the risk, use a= 0.01 which implies that we are prepared to take a 1%
risk i.e. the probability of rejecting a true hypothesis is 1%.
It is also possible that in hypothesis testing, we may commit Type 2 error (β) i.e
accepting a null hypothesis which is false. The only way to reduce Type 1 and Type 2
error is by increasing the sample size.
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Example of Type 1 and Type 2 error:
When the firm has failed to reward a competent retailer, it has committed type
-2 error. So also, when it was rewarded to an incompetent retailer, it has
committed type- 1 error.
The firm wishes to award a performance bonus (as a part of trade promotion)
to encourage good retailer ship. Assume that two actions A1 and A2 would represent
whether the bonus or trade incentive is given and not given. This is shown as
follows:
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Action (R1) Competent retailer (R2) Incompetent Retailer
A1 Performance bonus is
awarded Correct Decision In Correct Decision Error (β).
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Types of Tests:
•Parametric test
•Non-parametric Test
Parametric Test:
•Parametric tests are more powerful. The data in this test is derived from interval
and ratio measurement.
•In parametric tests, it is assumed that the data follows normal distributions.
Examples of parametric tests are Z-test, T-test, F-test.
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•T- test when sample size is <30
The t test was developed by W.S. Gosset around 1915. Since he published his
findings under a pen name ‘student’. it is known as Student’s t-test.
It is suitable for testing the significance of a sample mean or for judging the
significance of difference between the means of two samples, when the samples are
less than 30 in number and when the population variance is not known.
When two samples are related, the paired t-test is used. The t-test can also be used
for testing the significance of the coefficients of simple and partial correlations.
The relevant test statistic t, is calculated from the sample data, and it is compared
with its corresponding critical value in the t-distribution table for rejecting or
accepting a null hypothesis.
•F-test
•The F-test is based on F distribution (which is a distribution skewed to the right
and tends to be more symmetrical, as the number of degrees of freedom in the
numerator and denominator increases).
•The F-test is used to compare the variances of two independent samples.
•It is also used in analysis of variance (ANOVA) for testing the significance of
more than two sample means at a time. It is also used for judging the significance
of multiple correlation coefficients.
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Non-Parametric Test
Non-parametric tests are used to test the hypothesis with normal and ordinal data.
•We do not make assumptions about the shape of population distribution.
•These are distribution-free tests.
•The hypothesis of non-parametric test is concerned with something other than the value of a population
parameter.
•Easy to compute. There are certain situations particularly in marketing research, where the assumptions of
parametric tests are not valid. Example: In a parametric test, we assume that data collected follows a normal
distribution. In such cases, non-parametric-tests are used.
•Example: non-parametric tests are (a) chi-square test (c) Mann-Whitney U test (d) sign test.
Chi-square Test:
•It is used in several circumstances.
•Sample observations should be independent i.e. two individual items should be included twice in a sample.
•The sample should contain at least 50 observations or Total frequency should be greater than 50.
•There should be a minimum of five observations in any cell. This is called cell frequency constraint.
Example:
Age Group
Persons Total
Under 20-40 20-40 41-50 51 & above
Liked the Car 146 78 48 28 300
Disliked the
Car 54 52 32 62 200
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Mann Whitney “U” Test
This test is used to determine whether two independent samples have been drawn from the same
population. Suppose an experiment has obtained two sets of samples from two populations and the
study wishes to examine whether the two populations are identical.
Example; A computer company XYZ would like to choose the performance of programmers,
working in 2 braches, located in different cities. The performance indices of employees.
Branch – A Branch - B
84 76
68 77
78 64
49 62
45 53
To find out whether there is any difference in the performance indices of employees of the
two branches.
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Sign Test:
Sign-test is used with matched pair. The test is used to identify the pairs and decide
whether the pair has more or less similar characteristics.
Example: Suppose, an experiment on the effect of brand name on quality
perceptions is to be conducted. 10 persons are selected and asked to taste and compare
the two products (beverage).
One of them is identified as branded well known beverage, and the other is a new
beverage. In reality, the samples are identical. The respondents who tested were asked
to rate the two samples on an ordinal scale. Two hypotheses are set up as follows:
Advantages
1. They are quick and easy to use.
2. When data are not very accurate, these tests produce fairly good results.
Disadvantages:
Non-parametric test involves the greater risk of accepting a false hypothesis
and thus committing a Type 2 error.
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Sign Test:
Sign-test is used with matched pair. The test is used to identify the pairs and decide whether the
pair has more or less similar characteristics.
Example: Suppose, an experiment on the effect of brand name on quality perceptions is to be
conducted. 10 persons are selected and asked to taste and compare the two products (beverage).
One of them is identified as branded well known beverage, and the other is a new beverage. In
reality, the samples are identical. The respondents who tested were asked to rate the two samples on
an ordinal scale. Two hypotheses are set up as follows:
Advantages
1. They are quick and easy to use.
2. When data are not very accurate, these tests produce fairly good results.
Disadvantages:
Non-parametric test involves the greater risk of accepting a false hypothesis and thus
committing a Type 2 error.