Business Research

Meaning, scope, objectives,

process
Dunkin’ Donuts: Dunking the
Competition
1950 – founded by Bill Rosenberg in Quincy,
Massachusetts
1975 – 1000 locations in USA
2007 – partnership with Proctor & Gamble
( sales of $5.3 billion in 2007)
2008 – 7988 stores worldwide
2012 – 10,500 stores worldwide
“listen to what the customer wants”
Extensively used marketing research in the
form of focus groups and survey research
and realised that customers select a
coffee and donut based on five factors :
- Accessibility
- Quality (freshness for donuts / coffee )
- Variety (52 flavors)
- Image
- Affordability
Dunkin’ Donuts: Dunking the
Competition
The Company launched Dunkin’ Donuts in India in April
2012 in Delhi. The Company has 16 Dunkin’ Donuts
restaurants in India (as of 7th August 2013).
 Business Research
Is a systematic inquiry that provides
information to guide managerial decisions.
It is a process of planning, acquiring,
analyzing, and disseminating relevant data
and insights to decision makers so that
they can maximize business performance.
This enquiry might lead to validating existing
postulates or arriving at new theories and
models.
 Objective

To help in Decision Making

 Example
• TVS
• Nestle
• Boeing (preference for smaller planes –
developing a new version of 737 –… 100 –
215 seat market)
• Toyota (Lexus – under 30’s group ---- Scion --
-live concerts)
• Parry’s
• TI cycles
• P&G
• Lever
• Samsung
 Samsung

42,000 employees focused on product

research and development each year,
surveying customers, conducting focus
groups, and analyzing market trends. ----
Samsung Galaxy S 3 one of the most
popular smartphones of 2012.
 BUSINESS RESEARCH

BASIC RESEARCH APPLIED

RESEARCH

EXPLORATORY CONCLUSIVE
RESEARCH RESEARCH

DESCRIPTIVE RESEARCH CAUSAL RESEARCH

Basic research : The basic premise is the need to
KNOW and the concern is primarily academic
in nature.
For example
A research scientist wants to investigate the
question: What is the most effective way for an
organization to recover from a service failure?
Her objective is to provide guidelines for
establishing the proper "fit" between service
failure and service recovery that will generalize
across a variety of service industries.
Applied research: Solution or action oriented
research, that is contextual and practical in
approach.

For example :
A university professor wanted to analyze in depth
the reasons for absenteeism of employees in
organizations. Fortunately, a company within 20
miles of the campus employed her as a consultant
to study that very issue.
• Exploratory research is loosely structured and
the basic premise is to provide direction to
subsequent, more structured method of
enquiry.
• Conclusive research is structured and definite
in orientation. These studies are usually
conducted to validate formulated hypotheses
and specified relationships.
EXPLORATORY RESEARCH
 Loosely structured in design
 Are flexible and investigative in
methodology
 Do not involve testing of hypotheses
 Findings might be topic specific and
might not have much relevance outside
the researcher’s domain
CONCLUSIVE RESEARCH
 Well structured and systematic in
design
 Have a formal and definitive
methodology that needs to be followed
and tested
 Most conclusive researches are carried
out to test the formulated hypotheses
 Findings are significant as they have a
theoretical or applied implication.
• Descriptive research: The main goal of this
type of research is to describe the data and
characteristics about what is being studied.
• Causal research: Explores the effect of one or
more variables on other variable(s), with
reasonable level of certainty by controlling the
impact of other influencing variables
 Management Dilemma
Basic vs Applied

Defining the Research Problem

Formulating the Research Hypothesis

Developing the Research Proposal

The Research Framework

Research Design

Data Collection Plan Sampling Plan

Instrument Design

Pilot Testing

Data Collection

Data Refining and Preparation

Data Analysis & Interpretation

Research Reporting

Management / Research Decision

 Marketing
• Market & consumer analysis, Product research,
Pricing research, Promotional research
• New product research (idea generation / screening /
concept development / business analysis / product
development / test marketing / launch)
• Product life cycle research
• Product Mix Research (package designs / branding /
after sales service)
 In finance
• Asset pricing, capital markets and corporate
finance, Financial derivatives and credit risk
modeling research, Market-based accounting
research , Auditing and accountability, financial
forecasting, behavioural finance, volatility
analysis
 In human resources
 Training & development studies

 Selection and staffing studies

 Performance appraisal–design and evaluation

 Organization planning and development

 Incentive and benefits studies

 Emerging areas–critical factor analysis, employer branding studies

 In production
& operations management
 Operation planning and design
 Demand forecasting and demand estimation
 Process planning
 Project management and maintenance effectiveness
studies
 Logistics and supply chain-design and evaluation
 Quality estimations and assurance studies
Business Research is used to…
• Make Goals
• Decision support
• Business Intelligence
• Strategy
 Research Methods
All those methods / techniques that are
used for conduct of research. These
include the methods of collection of data,
methods of establishing relationships and
evaluating the accuracy of the same.
 Research Methodology
Is a way to systematically solve the research
problem. It includes research methods and
the logic behind the methods used in the
context of the research study
 Ethics
Treatment of Respondents
• Anonymity protected
• Collection of data corrected
• No use of ultra violet ink / one way mirrors
/ hidden tape recorders / fake long
distance calls
• Fake research firms
 Treatment of Clients
• Confidentiality
• Methods accurately mentioned
• Competitors research not undertaken
• Objectivity
• Right to Quality Research
 Problem Definition
Research Process
Research Design

Field Work

Data Analysis and Interpretation

Report Presentation

Management Decision
Defining and Identifying
The Problem
Harley Davidson – comeback in
2000’s
• 2007 – revenues were $6 billion plus
• Market share – 50 % in the heavyweight
category
• Distributors were pushing – build more
• Co. mgt was more risk averse than risk
prone
• Discussion with experts – brand loyalty
was imp
• Conducted focus groups - bikes were for
recreation (also owned SUVs)
• Forecasts - consumer spend to increase
till 2015
MQ : should HD invest to produce more
motorcycles ?
Wanted to find out
Who ? What ? How ? Loyal ?
 Research Questions
• Can the motorcycle buyers be segmented
based on psychographic characteristics ?
H1 : there are distinct segments of
motorcycle buyers
H2 : each segment is motivated to own a
Harley for a different reason
H3: Brand loyalty is high among HD
customers in all segments
• Qualitative & quantitative research was
conducted
• Focus groups & 16,000 mailers
 Results - Seven categories of
customers could be distinguished
1. Adventure lover traditionalist
2. The sensitive pragmatist
3. Stylish status seeker
4. Laid back camper
5. Classy capitalist
6. Loner
7. Misfit
Hence H1 was accepted
• All customers wanted to own a Harley –
signified independence, freedom and power
H2 – not accepted
H3 accepted
Decision taken to invest in a larger
production facility
Management - Research Question
• Management Dilemma (declining
sales,employee turnover,manufacturing
defects,customer dissatisfaction)
• Management Question (why )
• Research Question (which courses of
action can be considered to improve the
problem)
Defining the research problem
A research problem can be defined as a gap or
uncertainty in the decision makers’ existing
body of knowledge which inhibits efficient
decision making. The gap could be
academic & theoretical (basic) or real time
and action oriented (applied).
 Elements of a research
problem
 Unit of analysis (sample point)

 Independent variable

 Dependent variable

 Extraneous independent variable (boss behaviour,

family pressures)

 Intervening variables

 Moderating variables (education, age)

 Example
There is an increase in in job satisfaction
(IVV) of each individual worker,
subsequent to the introduction of a flexi
time work schedule (IV), which eventually
affects the individuals productivity (DV),
especially among women employees (MV)
Techniques involved in Defining the
Research Problem
1. Situation Analysis : the circumstances under
which the research is being conducted
- product
- industry and competition
- Market
- Channel distribution
- Sales organisation (sales promotion)
- Advertising
 Contd…
2. Informal Investigation (pilot survey)
discussion with selected customers,
dealers, top management personnel and
others connected to the problem.
 Formulation of Hypothesis
A tentative theory or supposition
provisionally adopted to explain certain
facts and guide the investigation of others.
Descriptive Hypothesis :
Is over half of MR book sales to MBA
students ?
Relational Hypothesis :
High MR book sales MBA students is due to
it being a 3 credit course
 Problem identification
process Management Decision Problem

Discussions Review of Organization Qualitative

with subject existing Analysis analysis
experts literature

Management Research Problem / Question

Research framework / Analytical model

Statement of Research Objectives

Formulation of Research Hypothesis

Decision problems
DECISION PROBLEM
1. What should be done to increase the
customer base of organic products in the
domestic market?
2. How to reduce turnover rates in the BPO
sector?
3. How to improve the delivery process of
Widex hearing aids in India?
4. Should the company continue with its
existing security services vendor or look at an
alternative?
5. Can the Housing and real estate growth be
accelerated?
6. Whom should ICICI choose as its next
Managing director- Mr ABC or Mrs. XYZ?
Research problems
RESEARCH PROBLEM*
1. What is the awareness and purchase
intention of health conscious consumers for
organic products?
2. What is the impact of shift duties on work
exhaustion and turnover intentions of the BPO
employees?
3. How does Widex/ industry leader manage its
supply chain in India/Asia?
4. What is the satisfaction level of the company
with the existing vendor? Are there any gaps?
Can they be effectively handled by the vendor?
5. What is the current investment in Real Estate
and Housing? Can the demand in the sector be
forecasted for the next six months?
6a. what has been the Leadership initiatives
and performance record of ABC viz. XYZ?
6b. Can a leading aggressive private sector
bank accept a woman as its leader?
 SEC code
• Created in 1988 by IMRB; was ratified by
Market Research Society of India (MRSI)
• Classification of Indian consumers on the
basis of Occupation and Education of the
chief wage earner (Head) of the
households.
• Used by most media researchers and
brand managers to understand the Indian
consuming class & for market
segmentation
 Research Design

Basic framework which provides

guidelines for the rest of the
research process
 Data refining ,
preparation, Report
Management analysis
Dilemma

Collection Management
Defining the decision
Research of data
problem / res
hyp
Research
Design ( data
Developing collection plan,
the res questionnaire
design, sampling
proposal plan )
 Essentials of Research Design
• An activity and time based plan
• Always based on the research question
• A guide for selecting sources and types of
information
• A framework for specifying relationships
• A procedural outline for every activity
 Types of Research Designs
• Exploratory – ( more Qualitative in nature)
• Conclusive – Descriptive (more
Quantitative in nature )
• Conclusive - Causal
 Exploratory Research Design
• Discovery of ideas
• Breaks vague problems into identifiable
sub problems
• Establishes priorities
• Increases the analysts familiarity with the
problem ( gathers practical difficulties)
Can be qualitative / quantitative in nature
…. Mostly qualitative
 Qualitative Research
- Tells the researcher how(process) and
why(meaning) things happen as they do
- Develops understanding
- Acts as a guide for Quantitative Research
 A Classification of Qualitative Research
Procedures

Qualitative Research
Procedures

Direct (Non Indirect

disguised) (Disguised)

Projective
Techniques
Focus Groups Depth Interviews (laddering,
hidden Issues, symbolic analysis)

Association Completion Construction Expressive

Techniques Techniques Techniques Techniques
 Via …
• Secondary data (Internal & external /
syndicated data/ databases)
• Literature surveys
• Experience surveys
• Analysis of selected cases
• Focus groups
• Personal Interviews( face to face / internet
/ telephone)
• Expert opinion survey
FOCUS GROUP
DISCUSSIONS
A focus group is an interview conducted by
a trained moderator in a non structured
and natural manner with a small group of
respondents.
The moderator leads the discussion
Purpose – gain insights by listening to a
group of people from the appropriate
target market about issues of interest to
the moderator.
• Eg :
• Ford (Taurus) – door latches
• Whirlpool : new refrigerator – a quieter one
– the quietest one ever
2009 Honda Pilot SUV
-Baby boomers : family life was imp / friendships /
getaway vacations / fitness /no midlife crisis –

“ you will be ready for anything in the 2009 pilot”

 Characteristics
• 8 – 12 members
• Homogeneous, members screened
• 1-3 hours
• Recorded (audio / video)
• Moderator – observational, interpersonal
and interpersonal skills , knowledge
• Relaxed informal setting
 Moderator
• Detached / empathetic
• Permissive but alert
• Must encourage people to talk
• People should be more specific
• Encourage unresponsive members to talk
• Should be one with the group – no
distance
Methodology for conducting a
focus group
Determine the objectives

State the questions to be answered by the

focus groups

Write a screening questionnaire

Develop a moderators outline

Conduct the focus group

Review tapes / analyze data

Summarize the findings and plan follow up

research or action
• Outline - handout
Result is reviewed –
• Reports specific comments, concerns
suggested by facial expressions and body
language
• Cannot report in frequencies / %
• “ most participants thought”
 Projective Techniques
Focus groups and depth interviews are
direct approaches / PT disguise the
purpose
1. Association techniques
2. Completion
3. Construction
4. Expressive
 Association techniques
• Respondent is presented with a stimulus
and asked to respond with the first thing
that comes to mind
 Example – word association
Stimulus Mrs M Mrs C
washday everyday ironing
fresh And sweet clean
Pure air soiled
scrub Husband does Clean
filth This neighborhood dirt
family squabbles children
towels dirty wash
Tide – fragrance
( launched a detergent bar in India – Focus
GD)
• P & G – 44% of detergent market in the
year 2009
 Word or Picture association
• Provide a prompt in the form of a word,
phrase, or sentence and ask respondents
to associate something with it.
• Tell me what you think of when you think
of Kellogg’s cornflakes
• “When you think of your service provider,
what is the first thing that comes to mind?”
• “What comes to mind when you hear the
term customer service?”
 Imagery Associations

• Show people an image, or ask them to

bring or select an image. Images are
pictures, drawings, or illustrations. Then,
ask people to describe the image.
• Ask how it links to a product, brand,
object, or person. Also, ask the
respondents to imagine an image and
describe it.
• Please select a picture that best
represents product X. How does the
picture speak about product X?”
• “How does the image describe product X?”
• “What does each person in this picture feel
about brand Y?”
• Ask several follow-up questions about how
the association relates, and probe to
clarify.
 Personification Associations

Personification asks respondents to give

human characteristics to products,
services, or brands.
• “If your Volvo could talk, what would it say
to you?”
• “If brand X were a person, what would he
or she look like?”
• How does your digital camera feel about
you?”
Personification is fun. The challenge of
personification is interpretation of data and
analysis. Use associations to understand
imagery and stimulate memory recall.
 Projective Techniques –
completion
• “My cell phone is like a…”
• “A cell phone is like a best friend.”
• “My cell phone is part of my body.”
• “A cell phone is like my wallet. I would
never leave home without it.
• “A cell phone is like a lifeline now. Leaving
it behind is like cutting off the oxygen
supply.”
• “A cell phone is like a leash.”
• The results show cell phones are a
necessity for a segment of consumers.
• A minority find them annoying.
Projective Techniques – completion
• Sentence completion
people who shop online are …….

People who shop at Big bazar are ….

Story Completion
 Story completion
A man was shopping for a business suit in his
favorite department store. After spending 45
minutes and trying several suits, he finally
picked one he liked. As he was proceeding to
the check-out counter, he was approached by
the salesperson who said: “Sir, at this time we
have higher quality suits for the same price.
Would you like to see them?

What is the customer response? Why?

Qualitative Research Methods

 Construction Techniques
With a picture response, the respondents are asked to
describe a series of pictures of ordinary as well as
unusual events. The respondent's interpretation of the
pictures gives indications of that individual's personality.
A Cartoon Test
Auchan

Let’s see if we can

pick up some
house wares at
Auchan
In cartoon tests, cartoon characters are
shown in a specific situation related to the
problem. The respondents are asked to
indicate what one cartoon character might
say in response to the comments of
another character. Cartoon tests are
simpler to administer and analyze than
picture response techniques.
When I eat pizza I
love drinking coke

Qualitative Research Methods

Expressive Techniques
 Expressive Techniques
In expressive techniques, respondents are presented
with a verbal or visual situation and asked to relate the
feelings and attitudes of other people to the situation.
• The subject may express himself more freely
than when expressing his own beliefs.
• However, societal norms may also influence
research subjects why may not have given much
thought to their own attitudes.
• One way of using a construction projective
technique is for the researcher to ask a subject
to fill in a bubble to represent what a certain
character is thinking.
1. Role playing
2. Third Party Technique
 Role Playing
Ask respondents to assume a role and act
the part.
• “If you were the product manager, what
would you do to improve the product?”
• “If you were the CEO of this company,
what would you do to reduce customer
complaints?”
• “If you were the creative director, what
would your ad say?”
• “If you were in your friend’s shoes, what
would you do?”
Use role-playing when asking for product or
advertising recommendation
 Third-person technique
The respondent is presented with a verbal or
visual situation and the respondent is
asked to relate the beliefs and attitudes of
a third person rather than directly
expressing personal beliefs and attitudes.
This third person may be a friend,
neighbor, colleague, or a “typical” person.
With this technique, you ask respondents to
describe what other people are doing,
thinking, feeling, believing, and saying.
Ask respondents to project to a third-party.
• “What does your friend think about brand
X?”
• “What does company X think about you?”
• “Who uses brand X? What is the real
reason they use it?”
• Ask follow-up questions and probe
answers, using the third person.
• Use third-party projections for sensitive
subjects. In other words, when people hide
or deny their real thoughts, feelings, or
beliefs.
 Case
• The fear of flying increased in the US after
the Sept 11, 2001 hijackings.
• Air Transport Association (ATA) reported
that passenger bookings were down.
• Continental Airlines suffered a much lower
drop.
• Respondents were asked “ Are you afraid
of flying” . Most respondents said no.
• Reasons for not flying were cost , bad
weather etc.
• A follow up study was conducted “ Do you
feel your neighbor is afraid to fly?” Answer
was affirmative.
• CA addressed the fear of flying by
stressing heightened security measures
and enhanced cabin comforts for
passengers
Depth Interviews
Privasys
 Credit Cards
• Study designed to come up with new
credit card featues
• When questioned in a structured way,
respondents listed existing features.
• Depth interviews were asked questions
like
- What is imp to me ?
- How do I wish I could live ?
 Result :
An intelligent credit card could keep track of
credit cards, bank balances, investments
and telephone numbers.
Privasys and First Data introduced a battery
powered electronic credit card with an
internal chip – capable of holding all credit,
debit and loyalty cards.
One to one interaction between the
investigator and the respondent. It is semi
structured, direct, conversational and
recorded.
 Open-ended Questions:
 Questions should be worded so that
respondents cannot simply answer yes or
no, but must expound on the topic.
Semi-structured Format:
• Some pre-planned questions are asked
during the interview, questions must be
allowed to flow naturally, based on
information provided by the respondent.
• A specific order may not be maintained.
In fact, the flow of the conversation dictates
the questions asked and those omitted, as
well as the order of the questions
Seek understanding and interpretation:
 You should try to interpret what you are
hearing, as well as seek clarity and a
deeper understanding from the respondent
throughout the interview.
Conversational:
You should be conversational, but your role
is primarily that of a listener. There should
be smooth transitions from one topic to the
next.
Recording responses:
The responses are recorded, typically with
audio/ video tape and written notes (i.e.,
field notes)
Record observations:
Observe and record non-verbal behaviors
on the field notes as they occur.
Record reflections:
Record your views and feelings
immediately after the interview as well
 Additional depth interview
techniques
- Laddering
- Hidden issue questioning
- Symbolic analysis
 Laddering
• Specific probing techniques --- develop a
mental map of the consumer--- mental
map of consumers who are similar – why
people purchase a certain product

Move from attributes ---- user

 Maybelline
Q : Why do you buy Maybelline Cosmetics
Answer : It is a good brand at a reasonable
price
Q : why are reasonably priced cosmetics so
important to you ?
A : it makes me feel I made a wise decision
 Study on attitudes toward airlines
among male middle managers
Laddering :
Q why do you like to travel in wide body
aircrafts ?
-- work done – accomplish more -- feel
good
 Hidden issues
Questions on work and social life
A : glamorous, historic, elite, “ masculine
friendships”, Grand prix racing,
Eg : Lufthansa campaign
 Symbolic Analysis
Q : What would it be like if you could no
longer use an airplane ?
A: I would have to rely on email, letters,
Vc’s, calls.
Analysis : airlines sell face to face
communication
Using these inputs United Airlines (2009)
administered the Business ExtrAA
program.