1. What is business research?

Why should there be any question about the

definition of research?
Ans: -Business research is a process of acquiring detailed information of all the areas of business
and using such information in maximizing the sales and profit of the business. It can be stated as
the acquisition of information or knowledge for professional or commercial purpose to
determine opportunities and goals for a business. A research question is usually the first step in
any research project. It is the primary interrogation point of your research and it sets the pace
for your work. A research question focuses on the research, determines the methodology and
hypothesis, and guides all stages of inquiry, analysis, and reporting. With the right research
questions, you will be able to gather useful information for systematic investigation and it helps
to clearly define a path for the research process.
For example: - A mobile company wants to launch a new model in the market. But they are not
aware of what are the dimensions of a mobile that are in most demand. Hence, the company
conducts a business research using various methods to gather information and the same is then
evaluated and conclusions are drawn, as to what dimensions are most in-demand, this will
enable the researcher to make wise decisions to position his phone at the right price in the
market and hence acquire a larger market share.

2. What is the difference between applied research and basic or pure research?
Use a decision about how a salesperson is to be paid, by commission or
salary, and describe the question that would guide applied research versus
the question that would guide pure research.
ANS: -The difference between applied research and basic, or pure, research is that applied
research is done to solve something, within the business context such as solving a problem,
helping guide business in areas such as performance, or used to help influence business
decisions, while pure research may answer a question, or provide knowledge, but not in relation
to a company’s specific business dilemma. Given the scenario of how a salesperson is to be paid,
by either commission or salary, pure research will provide number facts such as how much a
salesperson can make based on being paid a percentage of sales as compared to what their
salary would cost. Applied research will also examine factors such as the industry itself and its
compensation models, how other competitors are paying their staff, and which compensation
model could result in both the highest sales as well as the ability to retain the best-and-brightest
salespersons, leading to future retention of the finest salespersons while increasing sales at the
same time.

3. Distinguish between an explanatory and predictive research study.

ANS: -An explanatory study goes beyond description and attempts to explain the reasons for the
phenomenon that descriptive study only observed. The researcher uses theories or at least
hypotheses to account for the forces that caused a certain phenomenon to occur. A predictive
study is rooted in theory like explanation. In business research, prediction is found in studies
conducted to evaluate specific courses of action or to forecast current and future values. Control
is a logical outcome of prediction.

4. Distinguish between a reporting study and a descriptive study.

ANS: -A reporting study provides a summation of data, often recasting data to achieve a deeper
understanding or to generate statistics for comparison. A reporting study calls for knowledge and
skill with information sources and gatekeepers of information sources. Such a study usually
requires little inference or conclusion drawing. A descriptive study tries to discover answers to
the questions who, what, when, where, and, sometimes, how. The researcher attempts to
describe or define a subject, often by creating a profile of a group of problems, people, or events.
The descriptive study is popular in research because of its versatility across management
disciplines.

5. A sales force manager needs to have information in order to decide whether

to create a custom motivation program or purchase one offered by a
consulting firm. What are the dilemmas the manager faces in selecting either
of these alternatives?
ANS: - To choose either option, the sales manager must first determine the goals of the
motivation program, in terms of desired attitudes and behavior. He needs to know the current
motivation level of the employees, and the incentives or penalties that would motivate them to
adopt desired attitudes and behavior. If the existing program can achieve the desired results, it
would be the right choice. However, if it only meets some of the requirements, the manager
would have to weigh such things as total benefits, cost, and ease of administering the training,
implementation time, cost and development time of a custom program, and so on. As observe
the following condition. “Our female sales representatives have lower customer defections than
do our male sales representatives.
6. Toyota had a major problem with unexplained acceleration in several of its top
models in 2010. It closed down production and stopped sales of multiple models.
What types of research might Toyota have conducted to make these decisions?

ANS: - Despite Toyota’s rich history dating back to 1957, the company came under fire when a
potential safety issue, sticking accelerator pedals, was found in eight of its top models in 2010
(Toyota Motor Sales, 2014). The problem was identified in late January with Toyota briefly
suspending the sale of the affected models. The company quickly responded with a solution to
the problem in early February, just a few short weeks later. This paper will discuss the possible
research types that Toyota may have employed in order to efficiently mitigate the issue.
It is safe to assume that a reporting study may have offered the terrible news to Toyota that
fateful January in 2010.their justification for suspending the sale was probably supported by a
combination of a descriptive study, an explanatory study, and a predictive study. In effect, the
2010 Toyota debacle is a good example of the application of all four types of applied research —
“research dedicated to discovering solutions for immediate problems.”
7. You have received a business research report done by a consultant for your firm, a life
insurance company. The study is a survey of customer satisfaction based on a sample of
600. You are asked to comment on its quality. What will you look for?

ANS: - The most important part is to analyze each and every aspect of the report. Starting with
finding out if the purpose of the research had been clearly defined or not. Another aspect which
needs to take care while reading the report is the research process. It is very important that
researcher give detail description of the research process in the beginning of research report.
Every research has some limitations and it is the duty of the researcher to reveal all the
limitations of the research. I will go through, all the limitations of the research and then will
analyze it impact on the conclusion of their port. The conclusion of the report should be justified.
All the findings should be straight forward. Lastly, understanding and identifying how the
samples have been collected.
This question relates to the responsibility of conducting research study to estimate the sales
potential of your products in the domestic market. To start with, the given situation is an
extremely touchy situation. Since am the employee of the company, there are chances that on
some occasions my behavior shows the sign of biasness but I will try my best that I represent the
present fair and unbiased facts in front.
 8. As area sales manager for a company manufacturing and marketing outboard
engines, you have been assigned the responsibility of conducting a research
study to estimate the sales potential of your products in the domestic market.
Discuss key issues and concerns arising from the fact that you, the manager,
are also the researcher.
ANS: -A manager conducting research that will predict sales for their products can produce an
ethical dilemma. Senior level management can set unreasonable sales expectations that the
manager is compelled to find research to support. If the sales findings influence the future
employment or financial status of the manager, the manager is placed in an unfortunate
predicament. The manager may interpret the data in a manner that is most beneficial for his
position in the company. The manager may also set exaggerated goals for the sales team based
on their optimistic interpretation of the data. The manager/researcher may not acknowledge
problems with internal or external validity because of competing personal interests.
Interpretation errors of the data can occur due to the manager’s stake in the findings. Researcher
bias would also be a concern. As manager, the researcher can unknowingly introduce bias by
directing questions in a manner that elicits the response desired. Depending on the research
method chosen, the researcher/manager soliciting responses may skew study participant
answers. Study participants may want to please the researcher as their response may affect
future business transactions. The manager can unintentionally introduce sampling bias by only
seeking data from clients that are perceived as important and ignoring those with less current
sales volume or predicted sales. Sample size would also be a concern for the sales manager
conducting research. Does the sales manager have contacts within the industry with buyers that
are not currently buying the boat engines? A research company would have contacts with
potential clients the outboard motor company is not currently servicing. Using an outside
research company would widen the potential respondents or participant data available to
evaluate. As a manager, only collecting data from current clients would not provide a complete
picture for estimating sales in the entire market. In summary, I think this situation would cause
concern due to the manager’s ability to obtain an appropriate sample, obtain unbiased data,
acknowledge limitations, appropriately justify conclusions, and potential lack of experience with
research.

9. Distinguish among the following sets of items, and suggest the significance of
each in a research context.
i. Concept and construct
ii. Deduction and induction
 iii. Operational definition and dictionary definition
iv. Concept and variable
v. Hypothesis and proposition
vi. Theory and model

ANS: -Concept and Construct: - Concepts are particular ideas that give meaning to an abstract
notion, situation, common understanding, or accepted beliefs. They are tools that help us to
communicate a particular experience without the need to define them specifically. e.g., morality,
good and evil are concepts of ethics.
Abstract ideas that can’t be simply visualized are grouped as constructs. Constructs consist of
various concepts that can be termed together to communicate a specific idea. e.g., construct
employee happiness contains various concepts such as the amount of workload, work timings,
and compensation to envision accurately.

Deduction and Induction: - A deduction is an inference derived from other premises that serve as
reasons for the conclusion. These reasons are general and believed to be accurately known, but
the deduction formed is specific to the case. Hence it is a specific conclusion. e.g., finding a
general pattern and testing it for a specific case.
Induction arguments don't have any associations between reasons and to form a generalized
conclusion. e.g., observing a pattern and extending it to other cases as a conjecture. Specific case
and can be used to form a generalized conclusion. e.g., observing a pattern and extending it to
other cases as a conjecture.
Operational definitions and Dictionary definitions: -Operational definitions are defined by
researchers that include specific measurable procedures to quantitatively define a particular
variable. This definition clearly explains the variable without any ambiguity. e.g., low-income
group: group earning less than 3 lakhs annually.
Dictionary definitions are often vague explanations to a variable that cannot be used in
a research study. They are to provide a general understanding. e.g., low-income group: a group of
people earning less than normal income.
Concept and Variable: -Concepts are a way of symbolic attachment to common ideas, abstract
notions, and occurrences that help us define ideas without the need to explain them. They help in
the mental imaging of perceptions and ideas.
A researcher needs to operationalize certain concepts as measurable quantities to use
them as indicators. The values of such quantities can change throughout the research based on
certain observations. Such varying quantities are known as variables.
Hypothesis and Proposition: -A proposition is a declaration regarding certain concepts that can
be either correct or incorrect. It states the theoretical relationship between certain concepts
together as a statement.
A proposition that can be modified into a scientific test case using measurable variables to check
its validity is known as a hypothesis. A hypothesis can be verified via empirical testing and proved
either true or false.
Theory and Model: -For a researcher, a theory is often a representation of facts that define
relationships between several variables with each other. Theory helps researchers to connect
several variables to define a scientific construct as a fact.
Models are used to represent a system or a specific part of the system that has been
built to understand a logical structure. They help in depicting the theory by applying it to certain
operational example.

10. Describe the characteristics of the scientific method.

ANS: -Empirical Observation: -The scientific method is empirical. It relies on direct observation of
the world, and disdains hypotheses that run counter to observable fact. This contrasts with
methods that rely on pure reason and with methods that rely on emotional or other subjective
factors.
Replicable Experiments: -scientific experiments are replicable. If another person duplicates the
experiment, he will get the same results. Scientists are supposed to publish enough of their
method so that another person, with appropriate training, could replicate the results. This
contrasts with methods that rely on experiences that are unique to a particular individual or a
small group of individuals.
Provisional Results: -Results obtained through the scientific method are provisional they are
open to question and debate. If new data arise that contradicts a theory, that theory must be
modified. For example, the phlogiston theory of fire and combustion was rejected when evidence
against it arose.
Objective Approach: -The scientific method is objective. It relies on facts and on the world as it is,
rather than on beliefs, wishes or desires. Scientist’s attempt to remove their biases when making
observations.
Systematic Observation: -The scientific method is systematic; it relies on carefully planned
studies rather than on random or haphazard observation. Science can begin from some random
observation. Isaac Asimov said that the most exciting phrase to hear in science is not "Eureka!"
but "That's funny." After the scientist notices something funny, he proceeds to investigate it
systematically.

11. Below are some terms commonly found in a management setting. Are
they concepts or constructs? Give two different operational definitions for
each.
i) First-line supervisor v) Line management
ii) Employee morale vi) Leadership
iii) Assembly line vii) Overdue account

1. Ans: - First-line supervisor: Concept; person directly in charge of line workers; person
reporting to unit manager.
2. Employee morale: Construct; that which is measured by how an employee feels toward
the job; that which is measured by how often an employee reports for work on time.
3. Assembly line: Concept; area where the items are assembled; area where line workers
spend most of their day
4. Ethical standards: Construct; the value that an employee places on a variable; the untested
opinion of how employees feel about the ethics within a company on a scale of 1-10.
5. Line management: Concept; person to whom all line supervisors report; head of each
functional area
6. Leadership: Construct; quality defined by how many persons emulate this person; quality
defined by a rating by asking persons how good a leader is the subject under study
7. Overdue account: Concept; account balance that is past 30 days; an account where the
amount owed is past 60 and less than 25% has been paid toward the balance.

12.Assume that in your company’s Management Development Program (MDP),

there was a heated discussion between some people who claimed, “Theory is
impractical and thus no good,” and others who claimed, “Good theory is the
 most practical approach to problems.” What position would you take and
why?

ANS: - I would take the position that good theory is the most practical approach to problems. In
my opinion it is the best approach to predict the phenomena going around us with the help of
theories instead of waiting them to occur. With the help of a good theory, we can predict the
things that may occur in a short time with the help of certain variables. According to definition,
theory is a set of systematically interrelated concepts, definitions and propositions that are
advanced to explain and predict phenomena. We cannot say that theory is impractical. There can
be some complex theories which are impractical, but the theories are the generalizations we
make about the variables and the relationships among them and hence it is practical. There are
scientific facts that to support these assumptions. Understanding of these theories will help us to
make right decisions at the right time identifying what may happen in future based on the current
situation. In my opinion it would be wise to get into a more reliable conclusion by thoroughly
analyzing the variables with the help of a good theory instead of rejecting them as impractical.

13. An automobile manufacturer observes the demand for its brand increasing as
per capita income increases. Sales increases also follow low interest rates,
which ease credit conditions. Buyer purchase behavior is seen to be dependent on
age and gender. Other factors influencing sales appear to fluctuate almost
randomly (competitor advertising, competitor dealer discounts, introduction of
new competitive models).
a) If sales and per capita income are positively related, classify all variables as
dependent, independent, moderating, extraneous, or intervening.
b) Comment on the utility of a model based on the hypothesis.

ANS: - While classifying all of the different variables of this scenario, it’s important to first identify
the independent variable (IV) and dependent variable (DV). It is also safe to assume since it is an
automobile manufacture, the discussion is concerning manufacturing sales. “We can observe a
positive correlation between income and demand for luxury segments, new as well as used”.
While manufacturing sales are directly related to per capita income and will go up and down
depending on this factor, manufacturing sales themselves have no direct effect on income levels.
In this case the dependent variable is sales and the independent variable is per capita income.
The moderating (MV) variables in this situation are the interest rates used to finance and
introductions of new competitive models.
While interest rates are also an independent variable, it does not carry the direct
influence on sales that per capital income does. It definitely affects sales but only after the
necessary income levels are present which is why it’s best categorized as a moderating variable.
After credit approval has been established, based off of income of Corse interest rates are
determined and, in many cases, negotiated.
As “During periods of easy credit, lenders are so tightly interwoven into
manufacturing process that dealers make money just by getting loans approved”. Because of
these the base interest rates are not as significant as the negations of the overall purchase. With
the introduction of new competitive models, the same stands true as with interest rates in
regards to the need for sufficient income to be present first but this variable can be extremely
disruptive or be a great benefit to sales depending on whether introducing the new model or
dealing with a competitor’s introduction of a new model.
In this case there are also several extraneous variables (EV’s). These would include competitor
advertising and competitor dealer discounts. It could also be argued that the introduction of new
models could be an EV instead of an MV depending on the perceived affect it could have on a
particular market segment sale. Competitor advertising and discounts are extraneous variables
because these are assumed to be constant or happening all the time making them part of the
industry competitive structure lacking any significant effect on either the independent or
dependent variables.
Concerning the utility of the model I believe it is structured in a way that will produce significant
and actionable data. Establishing the core model of the structure being the independent and
dependent variables as the key to making it relevant. The effect of the chosen DV and ID could be
easily seen by comparing the number of new dealerships in our country’s poorest counties vs. it’s
richest. As with every product or service, companies’ market and sell their product to those that
have first been financially qualified to buy them. I also believe the additional variables have been
accurately categorized according to their impact and effect on the DV and ID.
As, I would use the following scripture, “we shall do no wrong in judgments, in measures of
length or weight or quantity. We shall have just balances. These verses in context pertain to
business dealings and intertwined within them shows the importance of measurement accuracy.
The verses start out with “we shall do no wrong in judgments” referring to being without bias.
The balances, weights, should all be just or accurate. In reference to the above model, this should
be our goal. To make the model as just and accurate as possible without bias, without our
personal judgments.
14. You observe the following condition: “Our female sales representatives have
lower customer defections than do our male sales representatives.”
a) Propose the concepts and constructs you might use to study this
phenomenon.
b) How might any of these concepts and/or constructs is related to
explanatory hypotheses?
ANS: - It is important to understand the difference and similarities between concepts and
constructs prior to determining which ones will be best to study this phenomenon. A concept is
defined as, "a generally accepted collection of meanings or characteristics associated with certain
events, objects, conditions, situations, and behaviors". Whereas a construct is defined as,
"constructs constitute a general class of scientific concepts, including but not limited to
hypothetical constructs, intervening variables, operational definitions, and other classes of
theoretical concepts. Although these two topics have different definitions, they can be related to
each other. For example, a table is an objective concept; however, an abstract concept, like
personality, is called a construct.
There could be a variety of concepts on why female sales representatives have a lower customer
defection than male sales representatives. First, it would be important to determine the male-to-
female ratio and observe the hours both the male and female sales representative’s work. Also,
the number of hours each gender works. Another concept would be the average age of the male
and female representatives that work at the store compared to the average age of the male and
female those shops in the store.
A variety of constructs could influence why female sales representatives have a lower customer
defection than male sales representatives. Some constructs could include: job satisfaction, job
commitment, brand awareness, brand loyalty, service quality, and image. These would all play an
abstract, instrumental role on why male sales representatives struggle to retain customers.
A variety of these concepts and constructs can be related to explanatory hypotheses.
Explanatory (casual) hypotheses can be defined as, "an implication that the existence of or a
change in one variable cause or leads to a change in the other variable". a change in one of the
concepts could lead to a change in the outcome that female sales representative has lower
customer defections than do the male sales representatives. As, "It has recently been
determined that generating an explanatory hypothesis to explain a discrepant event is important
for conceptual change". Here are a few examples of explanatory hypotheses that relate to the
male-to-female topic: An increase in the number of male sales representatives leads to a lower
customer defection. Ensuring the number of hour's males and females work is equal; leads to an
increase in male representatives retaining more customers. An increase in items that appeal
more to males leads to a lower customer defection. Prior to proposing an explanatory hypothesis;
researchers should consider their influential impact. By looking at the concepts, constructs and
variables, it can be easy to determine how the researcher is going to state his hypothesis.

15. Indicate the Research Process Steps.

ANS: -Identifying the Problem: -The first and foremost task in the entire process of scientific
research is to identify a research problem. A well-identified problem will lead the researcher to
accomplish all-important phases of the research process, starting from setting objectives to the
selection of the research methodology.
Reviewing of Literature: -A review of relevant literature is an integral part of the research
process. It enables the researcher to formulate his problem in terms of the specific aspects of the
general area of his interest that has not been so far researched.
Setting research questions, objectives, and hypotheses: -An objective will precisely say what
should be researched, to delineate the type of information that should be collected, and provide
a framework for the scope of the study. The best expression of a research objective is a well-
formulated, testable research hypothesis.
Choosing the study design: -The research design is the blueprint or framework for fulfilling
objectives and answering research questions. It is a master plan specifying the methods and
procedures for collecting, processing, and analyzing the collected data. There are four basic
research designs that a researcher can use to conduct his study.
Deciding on the sample design: - Sampling is an important and separate step in the research
process. The basic idea of sampling is that it involves any procedure that uses a relatively small
number of items or portions (called a sample) of a universe (called population) to conclude the
whole population.
Collecting data: -The gathering of data may range from simple observation to a large-scale survey
in any defined population. There are many ways to collect data. The approach selected depends
on the objectives of the study, the research design, and the availability of time, money, and
personnel.
Processing and Analyzing Data: -Data processing generally begins with the editing and coding of
data. Data are edited to ensure consistency across respondents and to locate omissions, ifany.
Writing the report Developing Research Proposal, Writing Report, Disseminating and Utilizing
Results: -The entire task of a research study is accumulated in a document called a proposal.
A research proposal is a work plan, prospectus, outline, and an offer, a statement of intent or
commitment from an individual researcher or an organization to produce a product or render a
service to a potential client or sponsor. The proposal will be prepared to keep in view the
sequence presented in the research process. The proposal tells us what, how, where, and to
whom it will be done.