CHAPTER-1

INTRODUCTION
TO
BUSINESS RESEARCH
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What is research?

Management research is an unbiased,

structured, and sequential method of enquiry,
directed towards a clear implicit or explicit
business objective. This enquiry might lead to
validating existing postulates or arriving at
new theories and models.
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Types of research
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Types of research

⚫ Basic research : the basic premise is the need to

KNOW and the concern is primarily academic in
nature.

⚫ Applied research: Solution or action oriented

research, that is contextual and practical in
approach.
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Types of research

⚫ 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.
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Exploratory vs Conclusive Research

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Conclusive research

⚫ 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.
 Quantitative v/s Qualitative
Research
Quantitative :

⚫Measurement of quantity or amount.

⚫Generation of data in quantitative form which can
be subjected to rigorous quantitative analysis.
Qualitative Research
⚫ Concerned with subjective aspects like : attitude,
opinions & behaviour.
⚫ Concerned with qualitative phenomena.
⚫ Used to discover underlying motive…using
indepth interview.
⚫ Eg : Motivation research , opinion research
 Conceptual v/s empirical
Conceptual :
⚫Related to abstract idea or theory.
⚫Develop new concepts or to reinterpret the existing
ones
Empirical:
⚫Relies on experience or observation.
⚫It is data-based research capable of being verified
by observation.
⚫Is appropriate when proof is sought that certain
variables affect the others.
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The research process

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The research process

⚫ The management decision problem:
⚫ For academic needs(basic) or business
needs(applied).
⚫ Eg : Work life balance study or Introducing fruit
based juice
⚫ Defining the research problem
⚫ Clear definition of What one is seeking and for what
purpose – to begin.
⚫ Eg : Work life on Attrition. Definition of familiy
conflict, job commitment & turnover intentions.
Contd…
⚫ Formulation of the working hypotheses.
⚫ Presupposition of expected direction of the result of
the research.
⚫ Eg: testing relationship b/w work family conflict and
turnover.
⚫ Construction of the research proposal.
⚫ Framework of the plan of investigation.
⚫ May stand before data collection and sampling plan
or after.
⚫ It contains research problem, the scope, the
objective of the study and operation plan.
⚫ Time & objective bound commitment.
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The research process

⚫ Formulating the research design.
⚫ How will the research problem be investigated.
⚫ Exploratory, descriptive or causal.
⚫ Justification for the selected research design needs
to be explicit.
⚫ Eg : Type of hearing disorders, Acceptability of
Pricing of hearing aids
⚫ Sampling considerations
⚫ Respondent population
⚫ Studying small and representative sub-group
⚫ Eg : Fruit based drink – Manufacturers other brand
consumers, direct consumers, dealers or retailers.
Contd..
⚫ Collecting the data for the study
⚫ Reliability & validity of the data is most critical.
⚫ Hence pilot study is recommended.
⚫ Primary data : First hand/original
⚫ Non-quantifiable – interviews, focus group discussions,
personal interview.
⚫ Quantifiable – Questionnaire
⚫ Secondary data: Already compiled & collected.
⚫ Eg: company records, magazines, expert opinion surveys,
sales records, customer feedback, government data &
previous researches.
Exercise :
Orange flavoured drink v/s original orange drink
Investment behaviour of investors
Contd.
⚫ Data refining
⚫ Editing for omissions & irregularities
⚫ Data needs to be coded & tabulated for further
statistical testing.
⚫ Data analysis and interpretation of findings
⚫ Crux of the researcher’s contribution to the study.
⚫ Selection of tools for assessing the information
collected to realize the research objectives.
⚫ Univariate, Bi-variate & multi-variate analysis.
⚫ Wrong test chosen will result in hazardous effects
on the results.
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Research applications in marketing

⚫ Market analysis – potential, segmentation & demand
estimation, market size, market share of players,
sales forecasting.
⚫ consumer analysis – preferences, attitude etc..
⚫ Product research – new product testing &
development, pdt differentiation, positioning.
⚫ Pricing research – price determination, competitor
pricing strategies etc
⚫ Promotional research – communication mix, design
of advertisements
⚫ Place research – design & planning of distribution
channels, locational analysis.
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Research applications in finance

⚫ Asset pricing, capital markets and corporate finance
–stock market performance,
⚫ Financial derivatives and credit risk modeling research -
credit rating models, investment risk analysis.
⚫ Market-based accounting research – management
compensation scheme,
⚫ Auditing and accountability – analysis of audit
regulation, accountability of audit committee.
⚫ Other areas: financial forecasting, behavioural finance,
volatility analysis, merchant banking
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Research applications in
human resources
⚫ Training & development studies – training need gap,
assessing its impact.
⚫ Selection and staffing studies – Pre & on-the-job
assessments.
⚫ Performance appraisal–design and evaluation
⚫ Organization planning and development – cultural
assessments, man power planning.
⚫ Incentive and benefits studies – job analysis , rewarding
& recognition, employee benefits.
⚫ Emerging areas- employer branding studies ,
negotiation, absenteeism, attrition & work-life balance
analysis
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Research applications in
production & operations management
⚫ Operation planning and design – resource allocation & planning.

⚫ Demand forecasting and demand estimation -

⚫ Process planning – production scheduling, material requirement

⚫ Project management and maintenance effectiveness studies

⚫ Logistics and supply chain-design and evaluation

⚫ Quality estimations and assurance studies

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Criteria for research

⚫ MUST have: a clearly stated research purpose/ objective

⚫ MUST have: a sequential plan of execution

⚫ MUST have: a logical and explicitly stated justification for the

selected methods
⚫ MUST have: an unbiased, objective and neutral method of
conduct and reporting
⚫ MUST have: complete transparency and ethical conduction of
the research process
⚫ MUST have: provision for being reliable & replicable under same
conditions. Similar results & not identical results.