INTRODUCTION TO

BUSINESS RESEARCH
Rosalie Sheryll Rosales, MBA, DBA
 WHAT IS RESEARCH

Research is the process of finding solutions to a problem

after a thorough study and analysis of the situational
factors. (http://www.usg.edu/galileo/skills/unit01
/infoage01_03.phtml).

2
 WHAT IS BUSINESS RESEARCH

◼ Business Research may be defined as the “systematic and objective process of

gathering, recording and analyzing data for aid in making business decisions” (Zikmund,
Business Research Methods, 2002, p. 6)

◼ Business research must be objective. Detached and impersonal rather than biased It
facilitates the managerial decision process for all aspects of a business

◼ 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).
 WHEN IS BUSINESS RESEARCH USED?

• Typically, business research methods are used in situations of uncertainty, that is, when
decision-makers face two or more courses of action and seek to select the best possible
alternative under the circumstances. Business Research is hence aimed at improving the
quality of decision-making which, in turn, benefits the organization and helps ensure its
continuity and efficiency.
 TYPICAL USERS OF BUSINESS RESEARCH
METHODS

• Businesses and Corporations

• Public-Sector Agencies
• Consulting Firms
• Research Institutes
• Non-Governmental Organizations
• Non-Profit Organizations
• Independent Researchers and Consultants
 TYPES OF BUSINESS RESEARCH
◼ APPLIED RESEARCH. Is to solve a current problem faced by the manager in the work setting, demanding
a timely solution. Focuses on a real-life problem or situation with a view to helping reach a decision how to
deal with it (Specificity).

◼ Example: Should Corporation X adopt a paperless office environment?

◼ BASIC RESEARCH (fundamental, pure). Is to generate a body of knowledge by trying to comprehend
how certain problems that occur in organizations can be solved. The findings of such research contribute to
the building of knowledge in the various functional areas of business. Basic Research aims to expand the
frontiers of science and knowledge by verifying or disproving the acceptability of a given theory or
attempting to discover more about a certain concept (non-specificity)

◼ Example: How does motivation affect employee performance?

 COMMON BUSINESS RESEARCH
METHODS & TECHNIQUES
• Surveys
• Interviews
• Observation
• Experiments
• Archival and Historical Data
• Qualitative Analysis
• Quantitative Analysis
• Mixed Methods
 FIELDS WHERE BUSINESS RESEARCH IS OFTEN
USED

1) General Business Conditions and Corporate Research

• Short- & Long-Range Forecasting,
• Business and Industry Trends
• Global Environments
• Inflation and Pricing
• Plant and Warehouse Location
• Acquisitions
2. Management and Organizational
• Behavior Research
• Total Quality Management
• Morale and Job Satisfaction
• Leadership Style
• Employee Productivity
• Organizational Effectiveness
• Structural ssues
• Absenteeism and turnover
• Organizational Climate
 3. Financial and Accounting Research
• Forecasts of financial interest rate trends,
• Stock,bond and commodity value predictions
• capital formation alternatives
• mergers and acquisitions
• risk-return trade-offs
• portfolio analysis
• impact of taxes
• research on financial institutions
• expected rate of return
• capital asset pricing models
• credit risk
• cost analysis
•
 4. Sales and Marketing Research
• Market Potentials • Test markets
• Market Share • Advertising research
• Market segmentation • Buyer behavior
• Customer satisfaction
• Market characteristics
• Website visitation rates
• Sales Analysis
• Establishment of sales quotas
• Distribution channels
• New product concepts
 5. Information Systems Research

• Knowledge and information needs assessment

• Computer information system use and evaluation
• Technical suppot satisfaction
• Database analysis
• Data mining
• Enterprise resource planning systems
• Customer relationship management systems
 6. Corporate Responsibility Research

• Ecological Impact
• Legal Constraints on advertising and promotion
• Sex, age and racial discrimination / worker equity
• Social values and ethics
WHEN SHOULD
BUSINESS
RESEARCH BE
UNDERTAKEN?
 SEVEN STEPS RESEARCH PROCESS IN BUSINESS RESEARCH
(THE HYPOTHETICO-DEDUCTIVE METHOD)

1. Observation- observe the phenomenon, determine what is to be “re-search” or what to search again.

2. Problem Identification
• preliminary information gathering- problem statement is a clear, precise, and succinct statement of the question or
issue that is to be investigated with the goal of finding an answer or solution.

3. Theoretical framework
• theory formulation- Theoretical framework is the foundation on which the entire research project is based. It is logically
developed, described, and elaborated network of associations among the variables relevant to the problem situation

4. Hypothesizing- A hypothesis is a tentative statement that proposes a possible explanation to some phenomenon or event.
A useful hypothesis is a testable statement which may include a prediction. A hypothesis should not be confused with a
theory.

5. Further Scientific Data Collection. The data gathered are statistically analyzed to see if the hypotheses that were
generated have been supported

6. Logical Analysis- Measurement is the process observing and recording the observations that are collected as part of a
research effort

7. Deduction is the process of arriving at conclusions by interpreting the meaning of the data analysis results.
 Deductive and Inductive
▪ Deductive reasoning: application of a general theory to a specific case.
– Hypothesis testing
▪ Inductive reasoning: a process where we observe specific phenomena and on this basis
arrive at general conclusions.

– Counting white swans

▪ Both inductive and deductive processes are often used in research.
 ADDITIONAL RESEARCH PROCESS
(IN OUR STUDY)

1. Report writing
2. Report presentation
3. Managerial decision making
 INFORMATION NEEDS IN BUSINESS

◼ Almost every organization has to engage in research at some level to stay competitive.
◼ Companies gather data both from within and outside the organization.
◼ The methods used to gather, analyze, and synthesize information from the external and
internal environments are becoming increasingly sophisticated to the immense scope of
computer technology.