APPLIED BUSINESS RESEARCH

An in-depth probe done in a systematic way on something.

• An attitude of enquiry
• A systematic and scholarly application of the scientific method
• An inquisitive state of mind
• Find solutions to problems

CHARACTERISTICS
• It is a scientific investigation
• It helps in developing and evaluating concepts and theories
• A tool for decision making
• Expand the limits of knowledge
• Aids Decision making

STEPS OF RESEARCH
1. Formulating the research problem
2. Extensive literature survey
3. Development of the research questions and research objectives
4. Preparing the research design
5. Identifying the types and sources of data
6. Determining the sample design
7. Types and sources of data
8. Collecting the data
9. Analysing the data
10. Hypothesis testing
11. Generalization and interpretation
12. Preparation of the report/thesis

STEPS IN DETAIL
1. Formulating the research problem
A research problem is an area which is of interest to the researcher. A research problem is
one for which solutions are to be sought.
Broadly there are three types of research problems
1. Overt problems – overt problems are those which are evident in an organisation.
2. Latent problems – latent problems are those which may manifest itself in the
future. These are problem areas which are not evident as of now but may emerge as
visible in future.

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 3. Unnoticed opportunities – unnoticed opportunities are areas which can be a
potential benefit for the company or rather for the research. These are the
unexplored areas which can prove useful for the company.

A Problem well stated is research half done. While defining a problem area, the researcher
has to identify the attribute (an attribute can be checked for its presence and absence of
that thing) to be measured. A research problem in general refers to some difficulty the
researcher faces and for which he or she seeks to find answers.
A research problem must be clearly defined:

• The research problem should be narrowed down to a very specific topic.

• Choose the topic where adequate data can be collected on that
• Identify potential outcomes of the research topic.
• Obtain sufficient literature on this stated topic.

2. Extended literature survey

Review of related literature aims at not reinventing the wheel. It aims to study the possible
areas in which gaps exists. Research gaps are areas which can be identified where previous
researchers have not touched upon.

In-Text Citation (ITC) refers to a section within a report where a mention is made about
some other researchers and their research works.

Review literature content:

1. Name of the author
2. Year of the research
3. Title of research
4. Objective & methodology
5. Findings
6. Gaps – difference between the standard research of your topic – line gap, region gap,
topic gap

3. Development of the research questions and research objective

• Research question defines the specific area of interest. Research question is general
focus on board questions. Research questions will be complemented by
investigative questions secondary/ sub questions to narrow the focus and is also
important for data measurement.

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 • Research objectives are SMART (Specific, Measurable, Attainable, Realistic,
Timebound) research goals which the researcher wishes to accomplish through
the research.
• Research objectives are clear, achievable and verifiable as they directly assist in
answering the research questions.
• Objectives may be defined in form of action to answer the posed question.
Generally, objectives begin with determine, discover, compare, analyse, identify,
evaluate etc.

4. Hypothesis
A Hypothesis is a basic assumption drawn by the researcher which can be accepted or
refuted. A hypothesis is a tentative preposition relating to certain phenomenon which the
researcher wants to verify when required.

Types of hypothesis

a) Null hypothesis – it is the type of hypothesis which the researcher has to nullify. (H0)
b) Alternate hypothesis – alternate hypothesis is the opposite of null hypothesis which
needs to be accepted. (HA)
c) Descriptive hypothesis – descriptive hypothesis describes the characteristics of an
object, an individual, an event or an organization
d) Directional hypothesis – directional hypothesis is where the hypothesis is formulated
keeping in view a specific view or direction.

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 e) Working hypothesis - a working hypothesis is formulated at the early stage. The
researcher may modify or alter these as the investigation proceeds.

Question: what hypothesis would you use in the following situation. “an automobile
company has manufacturing facility for two different models. The customer wants to
know if the mileage given by the models is same or not”

Ans: The null hypothesis would be there is no difference in the mileage of the two models
the alternate hypothesis would be there is significant difference in the mileage of the two
models.

Sources of hypothesis

a) Observation
b) Case studies
c) Theories
d) Past Experiences
e) Similarities

5. Research design
It is a plan, structure and strategy for carrying out the research. It is a blue print on how a
research can be carried out. Broadly there are three types of research designs:

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 • Exploratory research: exploratory research design aim at gaining new ideas and
designs. These types of designs would be:
(1) Less focused and flexible. These research designs aim at expanding the
frontiers of knowledge.
(2) Exploratory research designs would not have well defined objectives.
• Descriptive or explanatory researches: They aim at describing the state of affairs
of an event or a situation or a group. A descriptive design tries to explain reasons
why a phenomenon has occurred? It determines the frequency and reasons for an
occurrence. These researches are:
(1) They are focused
(2) Rigid in nature since they are prefixed
These types of researches are of two types:
(a) Longitudinal: longitudinal research is where a same group of respondents is
interviewed or is studied again and again over a period of time. These types of
researches are also known as panel research.
(b) Cross-sectional: a cross-sectional design means that a population or a sample
of a population is studied in detail once.
• Experimental researches/causal research: casual research is where the
relationship between two or more variables are studied. The main emphasis is on
determining cause and effect relationship
Broadly there are two types of experimental designs:
• Informal designs:
The test area is the experimental group and the control are is the group wherein no
experiment is carried out. It is just a group for comparison purposes and to measure
the effect of extraneous variables
(i) before and after without control design (example: before advertisement and after)

The effect of the treatment = (Y-X).

(ii) after only with control design:

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 Effect of treatment = (Z-Y)
(iii) before and after with control design

• Formal designs
Fischer’s principles of experimental designs
➢ Principle of randomisation: the sample selected for the experiment is randomly
(selected without bias)
➢ Principle of replication: experiment will be carried out as many times as possible to
prevent errors.
➢ Principle of local control: if the population is heterogenous, it has to be divided into
homogeneous parts or groups and then a study has to be carried out on the
homogenous groups

Types of formal designs

❖ Completely randomised design: a completely randomised design applies the

principle of randomisation and the principle of replication. It means that from a
population, a sample is randomly drawn and experimented as many times as possible.
❖ Randomised Block design: in the randomised block design, the principle of local
control is applied along with the principle of randomisation and replication i.e., the
population is first divided into homogeneous parts and then a sample is randomly
drawn and the experiment is carried out as many times as possible.
❖ Latin squares design:

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 In a Latin square design, there is a two-way blocking (in way of rows and columns)
and experiments are carried out in each of these blocks differently. The principle of
local control is applied in different dimensions and experiments are not repeated.
❖ Factorial design: Factorial design is where multiple blocking can be done. A simple
2*2 factorial design measuring the cell phone usage during daytime and night is as
follows:

A factorial design measures the effect of multiple variables across multiple groups.

6.Identifying sources and types of data

There are two types of data

➢ Primary data: Data which is directly collected by the researcher from a source
according to his requirements for a specific purpose.
Advantages
 Authentic
 Up-to-date

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  Reliable
Disadvantages
 Expensive
 Time consuming
 May not be feasible to collect in some cases due to complexity
➢ Secondary data: data which is already collected for a certain purpose and is
documented somewhere else. E.g.: census data, journals
Advantages
 Easily accessible
 Affordable
 Not time consuming
Disadvantages
 Sometimes outdated
 Not authentic data
 Maybe irrelevant sometimes for the particular research
 Some data maybe exaggerated

Sources of primary data

✓ Observation: observation method is the method of collecting data by observing the

things around. It is a systematic method of observing and recording the information
Types of observation:
1. Structured vs unstructured observation: structured observation is characterised
by a careful definition of units to be recorded, style of recording the observed
information, standardised condition of observation, and the selection of
pertinent data of observation
Unstructured observation is where the researcher observes in a haphazard way.
2. Human vs mechanical observation: human observation is done by naked eye
and mechanical observation is done by cameras.
3. Participant and non-participant observation: if the observer observers by
making himself a member of the group he is observing, it is called participant
observation whereas non-participant observation is when the observer
observes as a detached emissary without any attempt on his part to experience
through participation what others feel.

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 4. Controlled vs un-controlled observation: if the observation takes place in a
natural setting, it may be termed as un-controlled observation. When the
observation takes place in a definite pre-arranged plan, it is called controlled
observation
✓ Interview method
i) Personal or face-to-face interviews
ii) Mail interviews
iii) Structured vs unstructured interviews
iv) In-depth interviews
v) Telephonic interviews
✓ Experimentation

Sources of secondary data

i) Governmental publication- governmental publications are published data by

government agencies such as the Central Statistical Organisation (CSO), RBI
bulletin, Finance Ministry submitting Economic Survey of India.
ii) Non-governmental publications- non-governmental publications are data
published by agencies for developmental purposes. E.g.: studies by Spices Board,
Rubber Board, MPEDA (Marine Products Export Development Authority)
iii) Syndicated services- researches done by private agencies. E.g.: RMB, IPSOS etc.
iv) International sources- UN, WHO, IMF, UNICEF etc.

TOOLS OF DATA COLLECTION

• Questionnaires- a questionnaire is a set of questions intended to elicit the required

data or information. It is done to collect some data from specific demographic
group needed to accomplish the research objectives. Questionnaires are tools for
primary data collection through interview method.
Types of questions in questionnaire
• Dichotomous questions- two sided questions generally yes or no questions.
These are easy to administer and tabulate. The main disadvantages are that
they are prone to large amount of errors since polarized responses prevent
gaining information on the range of variation and fails to communicate the
intensity of feeling

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 • Multiple choice questions- multiple choice questions are those where
multiple options are available for the respondent.
DISADVANTAGES
1. there are too many alternatives
2. position bias
3. are all possible alternatives included?
• Multiple response questions- In multiple response questions, the question
may include multiple options and the respondent can answer all the
alternatives apply.
• Scaled response question (rating questions)- rating Closed ended questions
where the response choice is designed to capture an intensity of feeling
Advantage Disadvantage
(a) Easy to code and more powerful (a)Respondent misunderstanding
statistical tool

• Open ended question- these are questions where the respondents are free to
answer in their magnitude.
Advantage Disadvantages
1.Wide range of responses and information 1. Interviewer’s ability to record answers
can be obtained quickly or summarize accurately or
2.Answers based on respondent’s not probe effectively.
researcher’s frame of reference- customer’s 2. Ability or willingness of the
terms. respondent to answer
3.Lack of influence. Don’t channel 3. Interviewer’s attitude influences the
respondent’s thinking. responses
4.Can help interpret close ended question- 4. Time consuming
why 5. Difficulty in coding
5.Particularly useful as introduction to 6. Require respondent to articulate
survey or topic 7. Respondent may miss important
6.When it is important to measure the points
salience of an issue 8. Non responses
7.When too many possible responses to be
listed

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THE FUNCTIONS OF A QUESTIONNAIRE

• Translate the research objectives into research questions

• Standardise those questions and response categories
• Fosters cooperation and motivation
• Serves as permanent record of the research
Criteria to consider while preparing the questionnaire:
1. Content- it refers to what should be asked. Question should be relevant,
accurate. Respondents should have necessary information.
And also make sure that the respondents understand and interpret the question
Correctly and also know whether the respondent will give the information
correctly
2. Construct
• Wording- how should each question be phrased?
• Sequence- in what order should the question be presented?
• Layout- what layout will best serve the research objectives?

ATTITUDE MEASUREMENT AND SCALING TECHNIQUES

(Variables are characteristics which can be measured. Variables can take different values. Example:
length, height etc. Attributes are characteristics whose presence or absence can be identified)

Measurement is the process of assigning numbers or labels to objects, persons, states

(condition) or events in accordance with specific rules. Broadly there are four types of scales
used in measurement:

1. Nominal scales- Nominal scales deals with numbers which are mutually exclusive and
exhaustive. Example: the number of students attending class, no of students scored
above 60
2. Ordinal scales- used strictly to indicate rank or order. Example: the order of marks
obtained by students, the order of preference for a particular brand.
3. Interval scale- Interval scales measure the frequency for a particular interval.
Example: range of marks (40-50. 50-60…)
4. Ratio scales- ratio scales deal with percentages. Example: percentage of marks scored
by students

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Attitude is an enduring organisation of motivational, emotional. perceptual and cognitive
process with respect to some aspects of a person’s environment

Attitude measurement scaling techniques

1. Graphic rating scales- pictorial representation of attitudinal trait

2. Likert scale
- Likert scale is a series of statements that express either a favourable or unfavourable
attitude toward the concept under study.
- The respondent is asked the level of agreement or disagreement with each statement
- Each respondent is given a numerical score to reflect how favourable or unfavourable
is her attitude toward each statement.
- The scores are then totalled to measure the respondent’s attitude.

3. Semantic differential scale

- semantic differential scale is a seven-point scale
- begins with the determination of a concept to be rated
- the researcher selects opposite pairs of words or phrases that describe the object
- respondent rates on a scale
- the mean is computed and plotted as a profile or an image

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 (Ideally, it is seven points. In this example it is 5 points)
4. Paired comparison method
- pairs of elements are compared on a particular attribute.
- In this example, coke, Pepsi, sprite and Limca is compared in terms of their
preference. These brands are arranged into pairs

A schedule is a type of questionnaire which is filled by the researcher or by an

enumerator by the researcher whereas a questionnaire does not need assistants and is
meant to be easily understood by the respondents

5. Determining a Sampling plan

In order to study a group, there are two methods available:
1. Study all the elements in the group
2. A census surveys
3. Study a sample of the group and extrapolate the results of the study
to the wider group

Sampling is the method of studying a subset (a sample) of a superset which is

homogeneous.

TERMS USED IN SAMPLING

Sampling plan comprises of the following steps:

1. Define the population (a larger superset from which a sample is drawn)

2. Defining the Sampling frame- sampling frame is the list of the population.
3. Determining the sampling extent- the geographical limit from which the sample is
drawn
4. Determining the sampling period- the period for which the sample is studied
5. Determining sampling techniques- sampling methods can be classified into two:
• Probability sampling: probability sampling refers to a sampling method which
gives each and every element of the population an equal chance of being

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represented in the sampling. Probability sampling avoids any sort of bias.
Types of probability sampling include:
1. Simple random sampling: a simple random sample is drawn using
lottery method or by using a table of numbers.
2. Stratified random sampling: In stratified sampling, the heterogenous
group is divided into homogeneous groups. And from each of these
homogeneous groups, a simple random sample is drawn
3. Systematic sampling: In systematic sampling, a constant is drawn by
dividing the sample from the population within the range of the
constant, a number is randomly selected. Example:

4. Sequential sampling: In sequential sampling, multiple samples are

drawn. The biggest followed by smaller samples. The purpose is to
increase the statistical accuracy by adding on the succeeding samples
5. Cluster sampling: In cluster sampling, the population is available in
clusters. Individual elements are not drawn as samples rather few
clusters are drawn as samples
6. Multi stage sampling: In multi stage sampling, different samples are
drawn in each stage. For example, if we want to draw a sample of 500
households from a population of households across India then, in multi
stage sampling, the first stage would be selecting a sample of states
from a population of all the states. Second stage would be selecting a
sample of districts from the available list of districts. In the third stage,
we select the sample of towns from the list of towns within the
districts. Then the selection of residential areas from the list of
residential area form the selected towns. Then we Select 200
households from a list of households.
7. Multi-phase sampling: multi phased sampling is where in each phase
additional information is sought. In this sampling, initially some part of

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 the population is eliminated and further information are sought from
these selected samples.
8. Area sampling: In area sampling, which is a form of stratified
sampling, the geographical areas become the strata.
• Non probability sampling: In non-probability sampling, samples are selected on
a non-random basis with an element of bias. Non-probability sampling includes:
1. Judgement sampling- this is where the samples are drawn on the basis
of opinions or judgements from experts.
2. Convenient sampling- convenient sampling is a sampling technique
which is based on non-probability method and the convenience of the
researcher.
3. Quota sampling- In quota sampling, quantity restrictions are placed on
selection of sample in the form of some conditions.
4. Panel sampling- In panel sampling, the researcher selects a panel of
respondents from whom information is elicited.
5. Snowball sampling- snowball sampling is where the researcher selects
an initial sample and further samples are drawn from these initially
selected parties. This process continuous as a chain reaction.

6.Selecting Sample size- it is the element or size of population which are drawn as samples

7. selecting sampling unit: sampling unit or element is the final unit of analysis. It is a
discrete element upon which the study is carried out.

8. Sampling errors:

• Frame error- Frame error is where a wrong list of the population is generated.
• Chance error- wrong sample included in the frame.
• Response error- wrong response given.

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8. Collecting the data- execution of the project
In this stage the project is actually executed. In this stage the information is collected from
the respondents by way of questionnaires or schedules. If secondary data is sought, the
records, reports statements etc is analysed.

9.Analysis of data

Editing, coding and tabulation

Editing is the process of removing the errors from the collected data. It is the process of
examining errors and omissions in the collected data and making necessary corrections in the
same.

Coding is the process of classifying the answers to a question into meaningful categories. It is
the process of assigning codes or numbers to questions and responses

Steps involved:

1. Specify the categories and classes

2. Allocate individual answers to different categories

Tabulation is the process of constructing tables by sorting data into different categories and
counting (using tally marks) the number of cases that belong to each category. Broadly there
are different types of tables

1. One-way table

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 2. Two-way table or cross tabulation

10.Hypothesis testing
Hypothesis testing involves the testing of hypothesis formulated earlier in the study by way
of statistical analysis. Different tools are used such as correlation, regression. There are some
sample tests like ANOVA, chi square, T-test, H-tests etc

11.Generalisations and interpretations

The researcher draws the summary of a finding and interprets it in a generic way.

The report writing involves

• Title page: the title page includes title of the study, the researcher’s name,
supervisor’s name, authority to which the report is submitted and the year.
• Letters of transmittal and authorisation- this include an introduction letter, the
approval letter form the organisation, the declaration from the researcher
countersigned by the guide and any other letters from the authority
• Table of contents, statistical tables, charts and illustrations
• Synopsis
• Introduction
• Methodology
• Analysis
• Findings
• Recommendations
• Summary and conclusion
• Bibliography- book references, Harvard referencing style

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 Referencing is in the following formats-
✓ referencing - Author/editor last name, Initials (year) title, edition, place of
publication, publisher
✓ E-references- URL /the page link/the day you accessed the page.
If it is a webpage- webpage author last name, initials (year) page title. Available at:
URL [accessed day moth year]
✓ Article / journal references – author, initials. Year ‘article title’, volume (issue), pp.
page numbers. Available at: URL [accessed day month year]
• Appendices/ annexures- may include other information which are attached to the
report. This may include extracts of news reports, financial statements or any other
detail
• Index

Ethics and research risks

• Similarity- the similarity issues in a research can be overcome through plagiarism

checking.
• Manipulation of data- creating data for your convenience
• Anonymity
• Confidentiality
• Permission

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