189460-Unit 1

KV INSTITUTE OF MANAGEMENT AND INFORMATION STUDIES
BA4205-BUSINESS RESEARCH METHODS
UNIT I
Business Research – Definition and Significance – the research process – Types of Research –
Exploratory and causal Research – Theoretical and empirical Research – Cross –Sectional and
time - Series Research – Research questions / Problems – Research objectives – Research
hypotheses – characteristics – Research in an evolutionary perspective – the role of theory in
research.
TABLE OF CONTENTS
1.1 INTRODUCTION TO RESEARCH………………………....................................................2
1.2 BUSINESS RESEARCH……………………………………………………………………..3
1.3 DEFINITION OF RESEARCH……………………………………………………………....4
1.4 DEFINITION OF BUSINESS RESEARCH………………………………………...4
1.5 CHARACTERISTICS OF RESEARCH………………….........................................4
1.6 NATURE OF RESEARCH……………………………..........................................................5
1.7 OBJECTIVES OF RESEARCH……………………………………………………...6
1.8 PURPOSE / AIMS OF RESEARCH ………………………………………………..6
1.9 NEED FOR RESEARCH/IMPORTANCE OF RESEARCH/SIGNIFICANCE/
ROLE OF RESEARCH …………………………………………………………………..7
1.10 SCOPE OF RESEARCH/RESEARCH IN IMPORTANT AREAS………………..8
1.11CRITERIA FOR GOOD RESEARCH. ....................................................................... 9
1.12 RESEARCH APPROACHES……………………………………………………...9
1.13 RESEARCH PROCESS………………………………………………………….…10
1.14 TYPES OF RESEARCH…………………………………………………………....20
1.15 RESEARCH PROBLEMS……………………………………………………….....25
1.16 RESEARCH OBJECTIVES………………………………………………………..31
1.17 RESEARCH HYPOTHESIS…………………………………………………….....33
1.18 RESEARCH IN AN EVOLUTIONARY PERSPECTIVE………………………...35
1.19 ROLE OF THEORY IN RESEARCH……………………………………………...36
This material is proprietary to KV Institute of Management, a Nationally Ranked B-School in Coimbatore and cannot be copied or duplicated for use 1
outside of KV. Violators will face infringement proceedings of copyright laws.
UNIT I
1.1 INTRODUCTION TO RESEARCH

Research, a somewhat intimidating term for some, is simply the process of finding solutions to a
problem after a thorough study and analysis of the situational factors. Managers in organizations
constantly engage themselves in studying and analyzing issues and hence are involved in some form of
research activity as they make decisions at the workplace. As is well known, sometimes managers make
good decisions and the problem gets solved, sometimes they make poor decisions and the problem
persists, and on occasions they make such colossal blunders that the organization gets stuck in the mire.
The difference between making good decisions and committing blunders lies in how managers go about
the decision-making process. In other words, good decision making fetches a “yes” answer to the
following questions: Do managers identify where exactly the problem lies, do they correctly recognize
the relevant factors in the situation needing investigation, do they know what types of information are
to be gathered and how, do they know how to make use of the information so collected and draw
appropriate conclusions to make the right decisions, and, finally, do they know how to implement the
results of this process to solve the problem? This is the essence of research and to be a successful
manager it is important to know how to go about making the right decisions by being knowledgeable
about the various steps involved in finding solutions to problematic issues.
The word research is composed of two syllables, Re and search. The dictionary defines ‘Re’ meaning,
again, and ‘search’ meaning to examine closely and carefully, to test and try, or to probe. Together
they form a noun describing a careful, systematic, patient study and investigation in some field of
knowledge, undertaken to establish facts or principles.
“The Application of the scientific method in searching for the truth about business phenomena. These
activities include defining business opportunities and problems, generating and evaluating ideas,
monitoring performance, and understanding the business processes”
The systematic collection and analysis of data with the objective of finding answers to business
problems. E.g.
This material is proprietary to KV Institute of Management, a Nationally Ranked B-School in Coimbatore and cannot be copied or duplicated for use
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a) what is the target market of my product?
b) How to decrease the amount of excess inventory on hand.
Research refers to a search for knowledge. Research is an art of scientific investigation. The Advanced
Learner’s Dictionary of Current English lays down the meaning of research as, “a careful investigation
or inquiry specially through search for new facts in any branch of knowledge”.
1.2 BUSINESS RESEARCH
It is a Search of knowledge, ―get a handle on a problem, ―It is a scientific and systematic search for
pertinent information on specific topic. Business research can be described as a systematic and
organized effort to investigate a specific problem encountered in the work setting, which needs a
solution. It comprises a series of steps that are designed and executed with the goal of finding answers
to the issues that are of concern to the manager in the work environment. This means that the first step
in research is to know where the problem areas exist in the organization, and to identify as clearly and
specifically as possible the problems that need to be studied and resolved. Once a problem that needs
attention is clearly defined, steps can be taken to gather information, analyze the data, and determine
the factors that are associated with the problem and then solve it by taking the necessary corrective
measures. This entire process by which we attempt to solve problems is called research. Thus, research
involves a series of well-thought-out and carefully executed activities that enable the manager to know
how organizational problems can be solved, or at least considerably minimized. Research thus
encompasses the processes of inquiry, investigation, examination, and experimentation. These
processes have to be carried out systematically, diligently, critically, objectively, and logically. The
expected end result would be a discovery that helps the manager to deal with the problem situation.
Research is the process of gathering the information needed to answer certain questions and thereby
helping in solving problems faced by an individual, firm, organization or society.
Business research, both the process and the tool needed to reduce risk in managerial decision making,
is a systematic injury that provides information to guide managerial decisions.
It is a process of planning, acquiring, analyzing and disseminating relevant data, information, and
insights to decision makers in ways that moblize the organization to take appropriate actions that, in
turn maximize performance.
Research is the process of finding solutions to a problem after a thorough study and analysis of the
situational factors. Managers in organizations constantly engage themselves in studying and analyzing
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issues and hence are involved in some form of research activity as they make decisions at the
workplace.
1.3 DEFINITION OF RESEARCH
According to Robert Ross, “Research is essentially an investigation, a recording and an analysis of
evidence for the purpose of gaining knowledge.” It can generally be defined as a systematic method of
finding solutions to problems.
According to Oxford Dictionary, ―A careful inquiry specially through search for new facts in any
branch of knowledge.
Redman and Mory define research as a, Systematized effort to gain new knowledge. Some people
consider research as a movement, a movement from the known to the unknown.
According to Clifford Woody define research comprises defining and redefining problems,
formulating hypothesis or suggested solution; collecting, organizing and evaluating data; making
deductions and reaching conclusion; and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis.
Slesinger and Stephenson research is, “the manipulation of things, concepts or symbols for the purpose
of generalizing to extend, correct or verify knowledge whether that knowledge aids in construction of
theory or in the practice of an art”
1.4 DEFINITION OF BUSINESS RESEARCH
We can now define business research as an organized, systematic, data-based, critical, objective,
scientific inquiry or investigation into a specific problem, undertaken with the purpose of finding
answers or solutions to it. In essence, research provides the necessary 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 first-hand or of data that are already available (in the
company, industry, archives, etc.). Data can be quantitative (as generally gathered through structured
questions) or qualitative (as generated from the broad answers to specific questions in interviews, or
from responses to open-ended questions in a questionnaire, or through observation, or from already
available information gathered from various sources).
1.5 CHARACTERISTICS OF RESEARCH:
o Data are collected systematically.
o Data are interpreted systematically.
o There is a clear purpose: to find things out.
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We can therefore define research as something that people undertake in order to find out things in a
systematic way, thereby increasing their knowledge. Two phrases are important in this definition:
systematic way and ‗to find out things. ‗Systematic suggests that research is based on logical
relationships and not just beliefs (Ghauri and Gronhaug 2005).
 The research essentially discovery of new knowledge
 It is essentially an investigation
 Research is a process of collecting, analyzing and interpreting information to answer questions
 It is based on observation or experimental evidences.
 It learns more about things, people, and events
 It related with the solution of a problem
 A good research must be systematic, logical, empirical, verifiable and Procedure followed in
research must be sufficiently described
 It should be carefully recorded and reported.
1.6 NATURE OF THE BUSINESS RESEARCH
Business research covers a wide range of phenomena. For managers, the purpose of research is to
provide knowledge regarding the organization, the market, the economy, or another area of
uncertainty. A financial manager may ask, ―Will the environment for long-term financing be better
two years from now? A personnel manager may ask, ―What kind of training is necessary for
production employees? or ―What is the reason for the company‘s high employee turnover? A
marketing manager may ask, ―How can I monitor my retail sales and retail trade activities? Each of
these questions requires information about how the environment, employees, customers, or the
economy will respond to executives’ decisions. Research is one of the primary tools for answering
these practical questions. Business research is designed to facilitate the managerial decision-making
process for all aspects of the business: finance, marketing, human resources, and so on. Business
research is an essential tool for management in virtually all problem-solving and decision-making
activities. By providing the necessary information on which to base business decisions, research can
decrease the risk of making a wrong decision in each area. However, it is important to note that
research is an aid to managerial decision making, never a substitute for it. Business research is the
application of the scientific method in searching for the truth about business phenomena. These
activities include defining business opportunities and problems, generating and evaluating alternative
courses of action, and monitoring employee and organizational performance. Business
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research is more than conducting surveys.

This process includes a. Idea and theory development, b. Problem definition, c. Searching for and
collecting information, d. Analyzing data, and e. Communicating the findings and their implications.
1.7 OBJECTIVES OF RESEARCH
1. To gain familiarity with a phenomenon or to achieve new insights into it. (Exploratory or
Formulative research studies).
2. To describe accurately the characteristics of a particular individual, situation or a group.
(Descriptive research).
3. To determine the frequency with which something occurs or with which it is associated with
something else. (Studies with this object known as diagnostic research).
4. To identify the causal relationship between variables. (Such studies are known as hypothesis
testing research).
5. To highlight the significance of the phenomenon under study
6. To focus the characteristics of a particular individual, situation or group.
7. To determine the frequency of occurrence of a particular thing which is associated with something
else?
8. To test the hypothesis of casual relationship between variables.
9. To write the report based upon the findings of the research.
1.8 PURPOSE / AIMS OF RESEARCH
1. The main purpose of research is to discover answers to questions through the application of
scientific procedures.
2. To find out the truth which is hidden and which has not been discovered so far.
3. Aims at advancing systematic knowledge and formulating basic theories about the forces
4. Research aims to analyse inter-relationships between variables and to derive casual explanation
and thus enables us to have a better understanding of the world in which we live.
5. Try to improve tools of analysis or to test these against the complex human behaviour and
institutions.
6. To understand social life and thereby to gain a greater measure of control over social behaviour.
7. To provide an educational program in the accumulated knowledge of group dynamics, in skills of
research, in techniques of training leaders and in social action
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1.9 NEED FOR RESEARCH/IMPORTANCE OF RESEARCH/SIGNIFICANCE/ ROLE OF

RESEARCH
• The main importance of research is to produce knowledge
• Research helps in problem solving
• Marketing research is important because it allows consumers and producers to become more
familiar with the products, goods, and services around them.
• Research is important to society because it allows us to discover more and more that might make
are lives easier, more comfortable, and safer
• Research encourages interdisciplinary approaches to find solution to problems and to make new
discoveries.
• Research is a basic ingredient for development and therefore serves as a means for rapid economic
development.
• It provides basis for government policies
• Helps in solving various operational and planning problems of business
• It is useful to students, professionals, philosophers, literary men, analysts and intellectuals
Research inculcates scientific and inductive thinking and it promotes the development of logical habits
of thinking and organization. The role of research in several fields of applied economics, whether
related to business or to the economy as a whole, has greatly increased in modern times. The
increasingly complex nature of business and government has focused attention on the use of research
in solving operational problems. Research, as an aid to economic policy, has gained added importance,
both for government and business. Research provides the basis for nearly all government policies in
our economic system. For instance, government‘s budgets rest in part on an analysis of the needs and
desires of the people and on the availability of revenues to meet these needs. The cost of needs has to
be equated to probable revenues and this is a field where research is most needed. Through research,
we can devise alternative policies and can as well examine the consequences of each of these
alternatives.
 Research inculcates scientific and inductive thinking and it remotes the development of logical
habits of thinking and organization.
 The role of research in several fields of applied economics, whether related to business or to the
economy as a whole, has greatly increased in modern times.
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 Research provides the basis for nearly all government policies in our economic system.
 Research has its special significance in solving various operational and planning problems of
business and industry.
 Research is equally important for social scientists in studying social relationships and in seeking
answers to various social problems.
In addition to what has been stated above, the significance of research can also be understood
keeping in view the following points:
a. To those students who are to write a master‘s or Ph.D. thesis, research may mean a careerism or a
way to attain a high position in the social structure;
b. To professionals in research methodology, research may mean a source of livelihood;
c. To philosophers and thinkers, research may mean the outlet for new ideas and insights;
d. To literary men and women, research may mean the development of new styles and creative work.
e. To analysts and intellectuals, research may mean the generalizations of new theories.
Thus, research is the fountain of knowledge for the sake of knowledge and an important source of
providing guidelines for solving different business, governmental and social problems. It is a sort of
formal training which enables one to understand the new developments in one‘s field in a better
way.
1.10 SCOPE OF RESEARCH/RESEARCH IN IMPORTANT AREAS
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1.11 CRITERIA FOR GOOD RESEARCH

Following are some characteristics of a good research:
 Purpose clearly defined: the purpose of research should be clearly defined that for what purpose
the research is conducted whether it is problem based or it is opportunity based.
 Research process detailed: the research process is the complete design of the research it will be
discussed in the details in the proceedings.
 Research design thoroughly planned: research design is the complete frame of the research that
what will be area of studies what will be the size of population what will be the sample size which
probability technique will be used etc.
 Limitations should be frankly revealed: all the researches are not for all the purposes there are
some limitations boundaries or confines for which the research is fruitful. These limitations like
time, geography, and area should be discussed or discovered in the research.
 At the outset there should be a clear cut declaration of the purpose of the research
 The research procedure should be described in detail to help succeeding researchers to repeat the
research for further advancement, maintaining the continuity of what has already been attained.
 The analysis of data should be adequate to reveal its significance and the methods of analysis used
should be appropriate. The validity and reliability of the data should be checked and cross checked
with utmost care.
1.12 RESEARCH APPROACHES
There are two basic approaches to research viz.
• Quantitative approach
• Qualitative approach
 Structured approach/ quantitative research- It involves a collection of numerical data to
answer a specific research question. Quantitative research is applicable to phenomena that
are measurable so that they can be expressed in terms of quantity. the research process-
objectives, design, sample, and the questions that you plan to ask of respondents- is
predetermined the extent of a problem, issue or phenomenon by quantifying the variation.
e.g. how many people have a particular problem? How many people hold a particular
attitude? It may involves  Correlation Study-measuring two specific variables and
attempting to quantify the relationship that exists between these variables  Ex-post Facto-
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study-the investigator to determine the specific variables for analysis after the research has
been completed.  Longitudinal study- involves choosing a single group of participants and
measuring them repeatedly at a selected time intervals to note the changes that occur over
time in the specified characteristics for eg. Collecting data with respect to Age and
development of children . The investigator identify the specific variable changes through the
growth and development.  Meta-analysis- is used to synthesize the large volume of data
describing numerous independent variables and there correlation with reference accuracy.. It
is undertaken for the purpose of synthesizing extensive amounts of work on a particular
subject.  Survey- method of collecting standardized information by interviewing
representative sample.
 Qualitative research is concerned with qualitative phenomenon. Research designed to find
out how people feel or what they think about a particular subject. This approach allows
flexibility in all aspects of the research process. It is more appropriate to explore the nature
of a problem, issue or phenomenon without quantifying it. Main objective is to describe the
variation in a phenomenon, situation or attitude. e.g., description of an observed situation, the
historical enumeration of events, an account of different opinions different people have about
an issue, description of working condition in a particular industry. Unstructured interview
involves- (1) document analysis, (2) particular observation ( ethnographic studies), (3)
diaries, (4) case study (5) particular observation (6) focus groups.
1.13 RESEARCH PROCESS
Research process consists of series of actions or steps necessary to effectively carry out research and
the desired sequencing of these steps. The research process is the methodical approach to finding and
examining a variety of reliable, scholarly resources on a particular topic.
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1. Select a topic
2. Formulating research problem
 Understanding the problem thoroughly and rephrasing the same into meaningful term. The best way
of understanding the problem is to discuss it with one‘s own colleagues or with those having some
expertise in the matter. In an academic institution the researcher can seek the help from a guide who is
usually an experienced man and has several research problems in mind. Often, the guide puts forth the
problem in general terms and it is up to the researcher to narrow it down and phrase the problem in
operational terms. In private business units or in governmental organisations, the problem is usually
earmarked by the administrative agencies with whom the researcher can discuss as to how the problem
originally came about and what considerations are involved in its possible solutions.
 Take a view of old reviews
Formulation of the problem often follows a sequential pattern where a number of formulations are set
up, each formulation more specific than the preceding one, each one phrased in more analytical terms,
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and each more realistic in terms of the available data and resources.
3. Review of literature
Once the problem is formulated, a brief summary of it should be written down. The researcher should
undertake extensive literature survey connected with the problem. For this purpose, the abstracting and
indexing journals and published or unpublished bibliographies are the first place to go to. Academic
journals, conference proceedings, government reports, books etc., must be tapped depending on the
nature of the problem. In this process, it should be remembered that one source will lead to another.
The earlier studies, if any, which are similar to the study in hand, should be carefully studied. A good
library will be a great help to the researcher at this stage.
• Journals
• References
• Reports
• Books
• Library
• Internet and websites
• Government reports
• Conference proceedings.
4. Developing hypothesis :
After extensive literature survey, researcher should state in clear terms the working hypothesis or
hypotheses. Working hypothesis is tentative assumption made in order to draw out and test its logical
or empirical consequences. Hypothesis should be very specific and limited to the piece of research in
hand because t has to be tested. The role of the hypothesis is to guide the researcher by delimiting the
area of research and to keep him on the right track. It sharpens his thinking and focuses attention on
the more important facets of the problem. It also indicates the type of data required and the type of
methods of data analysis to be used. One can develop hypothesis by using the following approach
• Discussion with colleagues and experts about the problem, its origin and the objectives in seeking
solution • Examinations of data and records.
• Review of similar studies in the area or of the studies on similar problems.
•Personal investigation which involves original field interviews.
5. Preparing research and sample design: The research problem having been formulated in clear cut
terms, the researcher will be required to prepare a research design, i.e., he will have to state the
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conceptual structure within which research would be conducted. The preparation of such a design
facilitates research to be as efficient as possible yielding maximal information. In other words, the function of
research design is to provide for the collection of relevant evidence with minimal expenditure of effort, time and
money. But how all these can be achieved depends mainly on the research purpose. Research purposes may be
grouped into four categories, viz., (i) Exploration, (ii) Description, (iii) Diagnosis, and (iv)Experimentation.
Experimental and non- experimental
Experimental designs can be either informal designs (such as before and after without control, after –
only with control, before- and- after with control) or formal designs are (completely randomized
design, randomized block design, Latin square design, simple and complex factorial designs)The
preparation of the research design, appropriate for a particular research problem, involves usually the
consideration of the following:
 The means of obtaining the information;
 The availability and skills of the researcher and his staff (if any);
 Explanation of the way in which selected means of obtaining information will be organised and the
reasoning leading to the selection;
 The time available for research; and
 The cost factor relating to research, i.e., the finance available for the purpose.
Determining sample design :
All the items under consideration in any field of inquiry constitute a universe‘or ‗population‘. A
complete enumeration of all the items in the ‗population‘is known as a census inquiry. It is incumbent
on the researcher to clearly define the target population.
 The population is defined in keeping with the objectives of the study.
 Sometimes, the entire population will be sufficiently small, and the researcher can include the entire
population in the study.
 This type of research is called a census study because data is gathered on every member of the
population.
 Usually, the population is too large for the researcher to attempt to survey all of its members.
 A small, but carefully chosen sample can be used to represent the population.
 The sample reflects the characteristics of the population from which it is drawn.
The researcher must decide the way of selecting a sample or what is popularly known as the sample
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design. In other words, a sample design is a definite plan determined before any data are actually
collected for obtaining a sample from a given population. Thus, the plan to select 12 of a city‘s 200
drugstores in a certain way constitutes a sample design. Samples can be either probability samples or
non-probability samples.
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Sampling methods are classified as either probability or non-probability.

Probability Sampling: In probability samples, each member of the population has a known
probability of being selected. Probability methods include random sampling, systematic sampling, and
stratified sampling.
Non-probability Sampling: In non-probability sampling, members are selected from the population in
some non-random manner. Sampling where it is not known which of the units will be picked to be
sampled, and where some of the units have a zero probability of being chosen. Non-probability
sampling is a type of sampling technique whereby all the units of a population do not have an equal
chance of being selected in the sample. These include convenience sampling, judgment sampling,
quota sampling, and snowball sampling. The advantage of probability sampling is that sampling error
can be calculated.
Sampling error is the degree to which a sample might differ from the population. When inferring to the
population, results are reported plus or minus the sampling error. In non-probability sampling, the
degree to which the sample differs from the population remains unknown.
Probability Sampling Methods
 Random sampling is the purest form of probability sampling.
 Each member of the population has an equal chance of being selected.
 When there are very large populations, it is often difficult or impossible to identify every member of
the population, so the pool of available subjects becomes biased.
 Random sampling is frequently used to select a specified number of records from a computer file.
 Systematic sampling is a statistical method involving the selection of elements from an ordered
sampling frame. The most common form of systematic sampling is an equal- probability method, in
which every kth element in the frame is selected, where k, the sampling interval (sometimes known as
the skip), is calculated as
K=N/n
where n is the sample size, and N is the population size.
Stratified sampling is commonly used probability method that is superior to random sampling
because it reduces sampling error. A stratum is a subset of the population that shares at least one
common characteristic. The researcher first identifies the relevant stratums and their actual
representation in the population.
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Random sampling is then used to select subjects for each stratum until the number of subjects in that
stratum is proportionate. Convenience sampling is used in exploratory research where the researcher is
interested in getting an inexpensive approximation of the truth. As the name implies, the sample is
selected because they are convenient. Sampling units are selected as per convenience of the researcher
This non-probability method is often used during preliminary research efforts to get a gross estimate of
the results, without incurring the cost or time required to select a random sample.
Judgment sampling is a common non-probability method. The researcher selects the sample based on
judgment. This is usually an extension of convenience sampling. For example, a researcher may decide
to draw the entire sample from one "representative" city, even though the population includes all cities.
When using this method, the researcher must be confident that the chosen sample is truly
representative of the entire population.
Quota sampling is the non-probability equivalent of stratified sampling. Like stratified sampling, the
researcher first identifies the stratums and their proportions as they are represented in the population.
Then convenience or judgment sampling is used to select the required number of subjects from each
stratum. This differs from stratified sampling, where the stratums are filled by random sampling.
Snowball sampling is a special non-probability method used when the desired sample characteristic is
rare. It may be extremely difficult or cost prohibitive to locate respondents in these situations.
Snowball sampling relies on referrals from initial subjects to generate additional subjects. While this
technique can dramatically lower search costs, it comes at the expense of introducing bias because the
technique itself reduces the likelihood that the sample will represent a good cross section from the
population.
6. Collecting data :
In dealing with any real life problem it is often found that data at hand are inadequate, and hence, it
becomes necessary to collect data that are appropriate. There are several ways of collecting the
appropriate data which differ considerably in context of money costs, time and other resources at the
disposal of the researcher. Several ways are there to collect the appropriate data which differ
considerably in context of money costs, time and other resources at the disposal of the researcher.
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1. Primary Data
Primary data – are those which are collected for the first time and are original in character. Primary
data is one a researcher collects for a specific purpose of investigating the research problem at
hand.
Sources of Primary data
Questionnaire Observation
Methods Experiments Surveys (sample surveys or census surveys)
Personal Interviews .
2. Secondary data – are those which have already been collected by someone else and which have
through some statistical analysis. In other words, secondary data are the data that have been
already collected, presented tabulated, treated with necessary statistical techniques and conclusions
have been drawn. Therefore, collecting secondary data doesn't mean doing some original
enumeration but it merely means obtaining data that have already been collected by some agencies,
reliable persons, government departments, research workers, dependable organisations etc.
Secondary data are easily obtainable from reliable records, books, government publications and
journals.
Sources of Secondary Data
The following are some of the sources of secondary data:
1. Central and State government publications.
2. Publications brought out by international organization like the UNO, UNESCO, etc.
3. Foreign government publications.
4. Official publications as well as reports of municipalities, district, Panchayats, etc.
5. Reports and publications of commissions - like U.G.C. education commission, tariff
commission, chambers of commerce, co-operative societies, trade associations, banks, stock
exchanges, business houses etc.
6. Well-known newspapers and journals like the Economic Times, The Financial Express, Indian
Journal of Economics, Commerce, Capital, Economical Eastern Economist, etc. Further Year
Books such as Times of India Year Book, Statesman's Year Book also provide valuable data.
7. Publications brought out by research institutions, universities as well as those published by
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research workers give considerable secondary data. 8. Through the Internet/website sources.
7. Execution of project
Execution of the project is a very important step in the research process. If the execution of the
project proceeds on correct lines, the data to be collected would be adequate and dependable. The
researcher should see that the project is executed in a systematic manner and in time. If the survey
is conducted by means of structured questionnaires, data can be readily machineprocessed. In this
situation questions as well as the possible answers may be coded. If the data are collected through
interviewers, arrangements should be made for proper selection and training of the interviewers.
Training may be given with the help of instruction manuals which explain the job of the
interviewers at each step. The step should be taken that the data should be in the control of
statistics so that the collected information is in accordance with the pre defined designed to tackle
this problem
8. Analysis of data
 Modern computer software has made the analysis of quantitative data a very easy task.
 It is no longer incumbent on the researcher to know the formulas needed to calculate the desired
statistics.
 This does not obviate the need for the researcher to understand the theoretical and conceptual
foundations of the statistical techniques.
 Each statistical technique has its own assumptions and limitations.
 Considering the ease in which computers can calculate complex statistical problems, the danger is
that the researcher might be unaware of the assumptions and limitations in the use and interpretation of
a statistic.
Coding- operation is usually done at this stage through which the categories of data are transformed
into symbols that may be tabulated and counted.
Editing- It is the procedure that improves the quality of the data for coding.
Tabulation- it is the part of the technical procedures wherein the classified data are put in the form of
tables.
9. Hypothesis testing
After analyzing the data, the researcher is in position to test the hypothesis. Various tests such as
Student ‗t‘ test, Chi-square, F- test are the examples of statistical techniques
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Hypothesis –testing will result in either accepting the hypothesis or in rejecting it. If the researcher has
no hypothesis to start with, generalizations established on the basis of data may be stated as hypotheses
to be tested by subsequent researchers in times to come.
10. Generalizations & Interpretations: If a hypothesis is tested and upheld several times it may be
possible for researcher to arrive at generalization i.e., to build a theory. If the researcher has no
hypothesis to start with, he might seek to explain his findings on the basis of some theory. It is known
as interpretation.
11. Preparation of report or thesis
 The most important consideration in preparing any research report is the nature of the audience.
 The purpose is to communicate information, and therefore, the report should be prepared specifically
for the readers of the report.
 Sometimes the format for the report will be defined for the researcher (e.g., a dissertation), while
other times, the researcher will have complete latitude regarding the structure of the report.
 At a minimum, the report should contain an abstract, problem statement, methods section, results
section, discussion of the results, and a list of references.
The layout of the problem should be as follows:
1).Preliminary pages- report should carry title and date followed by acknowledgements and foreword.
2) The main text of the report.
Introduction
Summary of findings
Main report
Conclusions
At the end of the report, appendices should be enlisted in respect of all technical data. Bibliography
i.e., list of books, journals, reports, etc., should be given in the end.
1.14 TYPES OF RESEARCH
1. Descriptive research.: Descriptive research studies are those studies which are concerned with
describing the characteristics of a particular individual, or of a group. studies concerned with
specific predictions, with narration of facts and characteristics concerning individual, group or
situation are all examples of descriptive research studies. Most of the social research comes under
this category. Descriptive research includes surveys and fact-finding enquiries of different kinds.
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2. The major purpose of descriptive research is description of the state of affairs as it exists at present.
3. Ex post facto research.
In social science and business research we quite often use Researcher has no control over the
variables, the term Ex post facto research for descriptive research studies. The main characteristic
of this method is that the researcher has no control over the variables; he can only report what has
happened or what is happening. Most ex post facto research projects are used for descriptive
studies in which the researcher seeks to measure such items as, for example, frequency of
shopping, preferences of people, or similar data. Ex post facto studies also include attempts by
researchers to discover causes even when they cannot control the variables. The methods of
research utilized in descriptive research are survey methods of all kinds, including comparative and
correlation methods.
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3. Analytical Research Researcher has to use information already available and analyze these to
make a critical evaluation of the material.
4. Applied Research Research can either be applied or action. Aims at finding a solution for an
immediate problem facing a society or industry or business organization.
Applied research is designed to solve practical problem of the modern world, rather than to acquire
knowledge for knowledge sake. The central aim of applied research is to discover a solution for
some pressing practical problem, whereas basic research is directed towards finding information.
This research is generally conducted on large scale basis, it is expensive. As such, it often
conducted with the support of some financing agency like government , public corporation , world
bank, UNICEF, UGC,Etc, According to hunt, ―applied research is an investigation for ways of
using scientific knowledge to solve practical problems‖ for example:- improve agriculture crop
production, treat or cure a specific disease, improve the energy efficiency homes, offices, how can
communication among workers in large companies be improved?
Problem oriented research: research is done by industry apex body for sorting out problems
faced by all the companies. Eg:- WTO does problem oriented research for developing countries, in
India agriculture and processed food export development authority (APEDA) conduct regular
research for the benefit of agri-industry.
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Problem solving:-this type of research is done by an individual company for the problem faced by
it. Marketing research and market research are the applied research. For eg:- Videocon
international conducts research to study customer satisfaction level, it will be problem solving
research. In short, the main aim of applied research is to discover some solution for some pressing
practical problem.
5. Fundamental Research (basic or pure)
Fundamental research is mainly concerned with generalisations and with the formulation of a
theory. ―Gathering knowledge for knowledges sake is termed „ ‘pure’ or „ ‘basic’ research.
Research concerning some natural phenomenon or relating to pure mathematics are examples of
fundamental research. Similarly, research studies, concerning human behaviour carried on with a
view to make generalisations about human behaviour, are also examples of fundamental research.
6. Quantitative Research
Quantitative research aims to measure the quantity or amount and compares it with past records
and tries to project for future period. It is expressed in terms of quantity. The process of
measurement is central to quantitative research because it provides fundamental connection
between empirical observation and mathematical expression of quantitative relationships. Statistics
is the most widely used branch of mathematics in quantitative research.
7. Qualitative Research
It is based on quality. When we are interested in investigating the reasons for human behavior (i.e,
why people think or do certain things), we often talk of Motivation research. This type of research
aims at discovering the underlying motives and desires, using in depth sentence completion tests,
story completion tests and similar other projective techniques. Qualitative research is collecting,
analyzing and interpreting data by observing what people do and say. Qualitative research refers to
the meanings, definitions, characteristics, symbols, metaphors, and description of things.
Qualitative research is much more subjective and uses very different methods of collecting
information, mainly individual, in-depth interviews and focus groups. The nature of this type of
research is exploratory and open ended. Small numbers of people are interviewed in depth and or a
relatively small number of focus groups are conducted. E.g. Human behavior
8. Conceptual research
Conceptual research is that related to some abstract idea(s) or theory. It is generally used by
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philosophers and thinkers to develop new concepts or to reinterpret existing ones. A conceptual
definition is an element of the scientific research process, in which a specific concept is defined as
a measurable occurrence. It basically gives you the meaning of the concept. It is mostly used in
fields of philosophy, psychology, communication studies. This is especially important when
conducting a content analysis.
9. Empirical Research Empirical research relies on experience or observation alone, often without
due regard for system and theory. It is data-based research, coming up with conclusions which are
capable of being verified by observation or experiment. We can also call it as experimental type of
research. In such a research the researcher must first provide himself with working hypothesis or
guess as to the probable results. He then works to get enough facts to prove or disprove his
hypothesis. Evidence gathered through experiments or empirical studies is today considered to be
the most powerful support possible for a given hypothesis.
10. Field setting research, Laboratory research or simulation research, clinical or diagnostic
research.
11. Historical research. Historical research is that which utilizes historical sources like
documents, remains, etc. to study events or ideas of the past, including the philosophy of persons
and groups at any remote point of time. BASED ON TIME DIMENSION.
12. Cross-sectional Research One-shot or cross-sectional studies are those in which data is
gathered once, during a period of days, weeks or months. Many cross-sectional studies are
exploratory or descriptive in purpose. They are designed to look at how things are now, without
any Sense of whether there is a history or trend at work.
13. Time series research A time series is a sequence of data points, measured typically at
successive points in time spaced at uniform time intervals. Examples of time series are the daily
closing value of the Dow Jones Industrial Average and the annual flow volume of the Nile River at
Aswan. Time series are very frequently plotted via line charts. Time series are used in statistics,
signal processing, pattern recognition, econometrics, mathematical finance, weather forecasting,
earthquake prediction, electroencephalography, control engineering, astronomy, and
communications engineering.
Time series analysis comprises methods for analyzing time series data in order to extract
meaningful statistics and other characteristics of the data. Time series forecasting is the use of a
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model to predict future values based on previously observed values.

Time series is a sequence of numerical data points in successive order, usually occurring in
uniform intervals. In plain English, a time series is simply a sequence of numbers collected at
regular intervals over a period of time. Time series analysis can be useful to see how a given asset,
security or economic variable changes over time or how it changes compared to other variables
over the same time period. For example, suppose you wanted to analyze a time series of daily
closing stock prices for a given stock over a period of one year. You would obtain a list of all the
closing prices for the stock over each day for the past year and list them in chronological order.
This would be a one-year, daily closing price time series for the stock.
Longitudinal Research
 Research carried out longitudinally involves data collection at multiple points in time.
Longitudinal studies may take the form of:
 Trend study – looks at population characteristics over time, e.g. organizational absenteeism rates
during the course of a year;
 Cohort study – traces a sub-population over time, e.g. absenteeism rates for the sales department;
 Panel study – traces the same sample over time, e.g. graduate career tracks over the period 1990
- 2000 for the same starting cohort.
 While longitudinal studies will often be more time consuming and expensive than cross-
sectional studies, they are more likely to identify causal relationships between variables.
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Exploratory Descriptive Analytical Predictive

Exploratory Descriptive Analytical The aim of
research is research can be research often Predictive
undertaken when used to identify extends the research is to
few or no previous and classify the Descriptive speculate
studies exist. The elements or approach to intelligently
aim is to look for characteristics of suggest or on future
patterns, the subject, e.g. explain why or possibilities,
hypotheses or number of days how something based on
ideas that can be lost because of is happening, close
tested and will industrial action. e.g. underlying analysis of
form the basis for causes of available
further research. industrial action. evidence of
cause and
Typical research effect, e.g.
techniques would predicting
include case Quantitative An important when and
studies, techniques are feature of this where future
observation and most often used type of research industrial
reviews of to collect, is in locating action might
previous related analyse and and identifying take place
studies and data. summarize data. the different
factors (or
variables)
involved.
1.15 RESEARCH PROBLEM

In research process the first and foremost step is selection and defining a research problem. A
researcher must find the problem and formulate it so that it becomes susceptible to a research. A
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researcher must examine all the symptoms concerning a problem before he can diagnose correctly.
A research problem in general refers to some difficulty with the researcher in the context of either a
theoretical or practical situation and wants to obtain a solution for the same.
Components of a research problem
There must be an individual or a group which has some difficulty or a problem.
There must be some objective to be attained at.
There must be alternative means for obtaining the objective one wish to attain.
There must remain some doubt in the mind of a researcher with regard to the selection of alternatives.
There must be some environments to which the difficulty pertains.
a. Selecting the problem
The following points may be observed while selecting a research problem
Subject which is over done should not be chosen, for it will be a difficult task to throw any new
light in such a case
Controversial subject should be chosen.
Narrow and vague problems must be avoided
The subject selected for research must be familiar and feasible
The importance of the subject, qualifications, training of the researcher and cost involved are
the other criteria's which must be considered.
The selection of a problem must be preceded by a preliminary study
b. Necessity of defining a problem
The problem to be investigated must be defined so that it will help to filter the data from
irrelevant ones to the relevant ones.
A proper definition of research problem will enable the researcher to be on the track.
Questions like: What are data to be collected? What characteristics of data are relevant and
need to be studied? What relations are to be explored. What techniques are to be used for the
purpose?
TECHNIQUES INVOLVED IN DEFINING A PROBLEM
 Statement of problem in the general way
 Problem to be stated in a broad and general way
 Researcher should be fully aware of the problem
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 Field observation may be undertaken

 Preliminary pilot study may be undertaken
 Feasibility of the solution must be considered
 Understanding the nature of the problem
 Defining the problem is the next step
 Discussion may help to define the problem clearly
 Environment of the study must be considered before defining the problem
 Once again the researcher must recollect all the points
 Surveying the available literature
 Defining the problem is the next step
 Discussion may help to define the problem clearly
 Environment of the study must be considered before defining the problem
 Once again the researcher must recollect all the points
 Developing ideas through discussions
 Discussion concerning a problem will often produce useful information.
 Various new ideas can be developed through such exercise
 This type of discussion is called as experience survey
 Discussions to be made with people with rich experience so that the focus may be on the problem
and
 Sharp attention may be given.
 Discussions should be confined to the formulation of the problem.
 Rephrasing the research problem
The following points to be considered while defining a research problem:
 Technical terms and words or phrases, with special meanings used in the statement of the problem,
should be clearly defined.
 Basic assumptions related to the research problem should be clearly stated
 A straight forward statement of the criteria for selection of the problem should be provided
 The suitability of the time period and the sources of the data available must be considered by the
researcher in defining the problem.
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 The scope of the investigation or the limits within which the problem is to be studied must be
mentioned explicitly in defining a research problem.
Conclusion
We may conclude by saying that the task of defining a research problem, very often, follows a
sequential pattern
The problem is stated in a general way
The ambiguities are resolved
Thinking and rethinking process results in more specific formulation of the problem.
PROBLEM IDENTIFICATION
The starting point of any research is to formulate the problem and mention the objectives before
specifying any variables or measures. This involved defining the problem in clear terms. Problem
definition involves stating the general problem and identifying the specific components of the research
problem. Components of the research problem include:
1. The decision maker and the objectives
2. The environment of the problem
3. Alternative courses of action
4. A set of consequences that relate to courses of action and the occurrence of events not under
the control of the decision maker and
5. A state of doubt as to which course of action is best.
Here, the first two components of the research problem are discussed whereas others are not well
within the scope, though, not beyond. Problem formulation is perceived as most important of all the
other steps, because of the fact that a clearly and accurately identified problem would lead to effective
conduct of the other steps involved in the research process. Moreover, this is the most challenging task
as the result yields information that directly addresses the management issue, though, the end result is
for the management to understand the information fully and take action based on it. From this we
understand, that the correctness of the result depends on how well the research takes on, at the starting
point. Problem formulation refers to translating the management problem into a research problem. It
involves stating the general problem and identifying the specific components of research problem. This
step and the findings that emerge would help define the management decision problem and research
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problem. Research problem cannot exist in isolation as it is an outcome of management decision

problem. The management decision problem may be, for example, to know whether keeping Saturday
a working day would increase productivity. The associated research problem for the above example
may be the impact of keeping Saturday a working day on employee morale. The task of the researcher
is to investigate on employee morale. Hence, it is understood that the researcher is perhaps, a scientific
means, to solve the management problem the decision maker faces.
ROLE OF INFORMATION IN PROBLEM FORMULATION
Problem formulation starts with a sound information seeking process by the researcher. The decision
maker is the provider of information pertaining to the problem at the beginning of the research process
as well as the user of the information that germinates at the end of the research process. Given the
importance of accurate problem formulation, the research should take enough care to ensure that
information seeking process should be well within the ethical boundaries of a true research. The
researcher may use different types of information at the problem formulation stage. They are:
1. Subjective information termed as those based on the decision maker‘s past experiences,
expertise, assumptions, feelings or judgments without any systematic gathering of facts.
Such information is usually readily available.
2. Secondary information is those collected and interpreted at least once for some specific
situation other than the current one. Availability of this type of information is normally
high.
3. Primary information refers to first hand information derived through a formalized research
process for a specific, current problem situation.
In order to have better understanding on problem formulation, the researcher may tend to categorize
the information collected into four types. The categorization of the information is done based on the
quality and complexity of the information collected. They are:
1. Facts are some piece of information with very high quality information and a higher degree of
accuracy and reliability. They could be absolutely observable and verifiable. They are not complicated
and are easy to understand and use.
2. Estimates are information whose degree of quality is based on the representativeness of the fact
sources and the statistical procedures used to create them. They are more complex than facts due to the
statistical procedures involved in deriving them and the likelihood of errors.
3. Predictions are lower quality information due to perceived risk and uncertainty of future conditions.
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They have greater complexity and are difficult to understand and use for decision- making as they are
forecasted estimates or projections into the future. 4. Relationships are information whose quality is
dependent on the precision of the researcher‘s statements of the interrelationship between sets of
variables. They have the highest degree of complexity as they involve any number of relationships
paths with several variables being analyzed simultaneously.
APPROACHES TO THE PROBLEM
The outputs of the approach development process should include the following components:
(i) Objective/theoretical framework
(ii) analytical model
(iii) Research questions
(iv) Hypothesis. Each of these components is discussed below:
i) Objective/theoretical framework: Every research should have a theoretical framework and objective
evidence. The theoretical framework is a conceptual scheme containing:
A set of concepts and definitions
A set of statements that describes the situations on which the theory can be applied
A set of relational statements divided into: axioms and theorems
The theoretical evidence is very much imperative in research as it leads to identification of variables
that should be investigated. They also lead to formulating the operational definition of the marketing
problem. An operational definition is a set of procedures that describe the activities one should
perform in order to establish empirically the existence or degree of existence of a concept.
Operationalising the concept gives more understanding on the meanings of the concepts specified and
explication of the testing procedures that provide criteria for the empirical application of the concepts.
Operational definition would specify a procedure that involves say, for example, a weighing machine
that measures the weight of a person or an object.
(ii) Analytical model: An analytical model could be referred to as a likeness of something. It consists
of symbols referred to a set of variables and their interrelationships represented in logical arrangements
designed to represent, in whole or in part, some real system or process. It is a representation of reality
making explicit the significant relationships among the aspects. It enables the formulation of
empirically testable propositions regarding the nature of these relationships. An empirical model refers
to research that uses data derived from actual observation or experimentation.
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(iii) Research Questions: Research questions are refined statements of the specific components of the
problem. It refers to a statement that ascertains the phenomenon to be studied. The research questions
should be raised in an unambiguous manner and hence, would help the researcher in becoming
resourceful in identifying the components of the problem. The formulation of the questions should be
strongly guided by the problem definition, theoretical framework and the analytical model. The
knowledge gained by the researcher from his/her interaction with the decision maker should be borne
in mind as they sometimes form the basis of research questions. The researcher should exercise
extreme caution while formulation research questions as they are the forerunner for developing
hypothesis. Any flaw in the research questions may lead to flawed hypothesis. The following questions
may be asked while developing research questions:
a. What are the research questions pertinent to the area of investigation? Do I know the area of
investigation and its literature?
b. What are the areas that are not explored by the previous researchers?
c. Would my study lead to greater understanding on the area of study?
d. Is enough number of literatures available in this topic area?
e. Is my study a new one thus contributing to the society or has it been done before?
(iv) Hypothesis: Hypothesis could be termed as tentative statement to a research problem. The
structure of a hypothesis involves conjectural statements relating to two or more variables. They are
deduced from theories, directly from observation, intuitively, or from a combination of these.
Hypothesis deduced from any of the means would have four common characteristics. They should be
clear, value-free, specific and amenable to empirical testing.
Hypothesis could be viewed as statements that indicate the direction of the relationship or recognition
of differences in groups. However, the researcher may not be able to frame hypotheses in all situations.
It may be because that a particular investigation does not warrant a hypothesis or sufficient
information may not be available to develop the hypotheses.
1.16 RESEARCH OBJECTIVES
The research objectives define the type and extent of information needed to achieve the research
objectives. The data needed are further clarified by the type of research design chosen as well as by the
nature of research e.g. whether the problem at hand is that of exploratory or preliminary research or
casual and conclusive research. It set the purpose and focus of your research with the fundamental
questions that will be addressed.
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1. General objective: states what researchers expect to achieve by the study in general terms.
2. Specific objectives: smaller, logically connected parts of general objective. They are the
specific aspects of the topic that we want to study within the framework of our study Specific
objectives should systematically address the various aspects of the problem and the key factors
that are assumed to influence or cause the problem. They should specify what we will do in our
study, where and for what purpose.
To Focus the study (narrowing it down to essentials;
To Avoid the collection of data which are not strictly necessary for understanding and solving the
problem we have identified; and
To Organize the study in clearly defined parts or phases.
Properly formulated, specific objectives will facilitate the development of our research methodology
and will help to orient the collection, analysis, interpretation and utilization of data.
Framing research objectives
1) Precise- To be precise means that the terminology is understandable to the marketing manager and
that it accurately captures the essence of each item to be researched.
2) Detailed- it is provided by elaborating, perhaps with examples, each item.
3) Clear- the objective is clear if there is no doubt as to what will be researched and how the
information will be presented to the manager.
4) Operational-the research objective should define how the construct being evaluated is actually
measured.
Types of research objectives
Market attractiveness evaluation.
Market sizing
Competitive presence and
customer preference.
Customer spending patterns, budget cycles and intent.
Channel trends, preferences, and allegiances.
2) Customer insight.-Specific customer needs, aspirations, buying behaviors, usage patterns, decision
models, preferences, favorability, intensions.
3) Competitive forces-current and potential basis of competition in a market.
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4) Communications planning.
5) Product testing- evaluation of product improvements, alternatives and packaging.
6) Concept testing- evaluation of potential products and solutions, clarification of needs, wants and
preferences.
7) Advert testing- evaluation of alternative brand promises, impact/ cut through ability, persuasiveness,
strength of call to action, out-take versus intent.
8) Customer satisfaction
9) Pricing-testing of price/feature/quality/packaging/positioning.
10) List building
1.17 RESEARCH HYPOTHESIS
Hypothesis is defined as a tentative statement or assumption of an event. A hypothesis is a prediction
of a relationship between one or more factors and the problem under study that can be tested.
Hypotheses can take various forms, depending on the question being asked and the type of study being
conducted. A key feature of all hypotheses is that each must make a prediction. These predictions are
then tested by gathering and analyzing data, and the hypotheses can either be supported or refuted on
the basis of the data
Characteristics of a good hypothesis
A good hypothesis must be based on a good research question. It should be simple, specific and stated
in advance.
Hypothesis should be simple
A simple hypothesis contains one predictor and one outcome variable, e.g. positive family history of
schizophrenia increases the risk of developing the condition in first-degree relatives.
Hypothesis should be specific
A specific hypothesis leaves no ambiguity about the subjects and variables, or about how the test of
statistical significance will be applied.
It uses concise operational definitions that summarize the nature and source of the subjects and the
approach to measuring variables (History of medication with tranquilizers, as measured by review of
medical store records and physicians‘ prescriptions in the past year, is more common in patients who
attempted suicides than in controls hospitalized for other conditions).
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Hypothesis should be stated in advance

The hypothesis must be stated in writing during the proposal state. This will help to keep the research
effort focused on the primary objective and create a stronger basis for interpreting the study‘s results as
compared to a hypothesis that emerges as a result of inspecting the data. This leads to overrating the
occasional chance associations in the study.
Two types of hypotheses with which you should be familiar are
the null hypothesis and
the alternate (or experimental) hypothesis.
 The null hypothesis always predicts that there will be no differences between the groups
being studied.
 By contrast, the alternate hypothesis predicts that there will be a difference between the
groups. For example,
 The null hypothesis would predict that the exercise group and the no-exercise group
will not differ significantly on levels of cholesterol.
 The alternate hypothesis would predict that the two groups will differ significantly on
cholesterol levels.
Importance of hypothesis
1). Finding answers- It supports the research to find and answer to a problem. It is expressed in
declarative form. The most important thing is it will provide a guideline to the problem.
2).Identify aim of researcher
3). Testing the validity of propositions – A hypothesis looks forward. It is a proposition which can be
put to a test to determine its validity. It may prove to be correct or incorrect.
4) Defining relationships- Hypothesis is to state a specific relationship between phenomena in such a
way that this relationship can be empirically tested. The basic method of this demonstration is to
design the research so that logic will require the acceptance or rejection of the hypothesis on the basis
of resulting data.
5) Other needs
 It provides direction to the research and prevents waste of time and effort of the researcher. It
sets a limit to the researcher point of view.
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 It helps the researcher to look into a particular aspect of the problem thereby offering certain
issues and facts.
 It provides the methods to be used in solving the problem.
 It acts as a framework for analysis and interpretation of the data to draw conclusions.
 It suggests the areas of importance which need more attention or more collection of facts by the
researcher.
 The entire process remain scientific and reliable and the following the principles of deduction.
Types of hypothesis
 Directional hypothesis
Specifies the direction of the relationship between independent and dependent variables
For eg: High income consumers spend more on consumer durables.
 Non-directional hypothesis
Shows the existence of a relationship between variables but no direction is specified
For eg: there is a relationship between age and job satisfaction
 Alternative Hypothesis
Any hypothesis which is complementary to the null hypothesis is called an alternative hypothesis
usually denoted by H1 or Ha.
 Null hypothesis
The null hypothesis always predicts that there will be no differences between the groups being
studied.
1.18 RESEARCH IN AN EVOLUTIONARY PERSPECTIVE
Kenneth E. Boulding's evolutionary perspective is an approach to economics. One of the first major
perspectives of Boulding's evolutionary perspective was his emphasis on know-how or, to use the term
of Vladimir Vernadsky (1926) and Teilhard de Chardin (1959), which Boulding used as well, the
"Noosphere." This is the counterpart in social and economic evolution to the role of genetic
information and DNA in biological evolution. Just as DNA provides the genetic know- how to produce
a chicken from an egg, automotive engineers and their recording devices contain the know-how to
produce an automobile.
One of the first major neoclassical casualties of this perspective comes from Boulding's critique of the
usual factors of production, land labor, and capital: It is much more accurate to identify the factors of
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production as know-how (that is genetic information structure), energy, and materials, for, as we have
seen, all processes of production involve the direction of energy by some know-how structure toward
the selection, transportation, and transformation of materials into the product. It has been claimed that
the scientific method provides the most persuasive form of research. In his exposition of scientific
theory, Hawking suggests that any good theory should satisfy two requirements:
1. It must accurately describe a large class of observations on the basis of a model that contains
only few arbitrary elements.
2. It must make definite predictions about the result of future observations.
According to Hawking, and physical theory is always provisional in the sense that it is only hypothesis
– one can never prove it. However to disprove a theory you only have to find a single observation that
contradicts it. Thus a new theory generally is an extension of previous theory. Newton‘s law of
gravity, which in essence has been proved incorrect by Einstein‘s predictions, are an example of such
modifications or abandonment. In 1966, Newton proposed his theory of gravitation. Knowledge
creation is fundamental to social development and is an age old concept. Research can lead to specific
inventions, or add to the development of technologies or develop new frameworks and knowledge.
1.19 ROLE OF THEORY IN RESEARCH
Prediction of Behaviour
A theory enables to predict the behaviour or characteristics of one phenomenon from the knowledge of
another phenomenon. Accomplishing the first goal allows the theorist to predict the behaviour or
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characteristics of one phenomenon from the knowledge of another phenomenon‘s characteristics. A

business researcher may theorise that older investors tend to more interested in investment income than
younger investors. This theory, once verified should allow researchers to predict the importance of
expected dividend yield on the basis of investor‘s ages. The ability to anticipate future conditions in
the environment or in an organisation may be extremely valuable. To predict phenomena, one must
have an explanation of why variables behave as they do. Theories provide these explanations.
Understanding the relationship

It refers to gain an understanding of the relationship among various phenomenons. A theory is a
coherent set of general prepositions, used as principles of explanation of the apparent relationships of
certain observed phenomena.
Other roles
1. Suggests a problem of a study
2. Gives a hypothesis to be tested
3. Provides simple explanation about the observed relations regarding their relation to phenomenon.
4. Helps in being consistent with already founded body of knowledge and the observed relations
5. Provides a conceptual model for delimiting the scope of the study.
6. Helps in the selection of variables for delimiting the scope of the study.
7. Makes research findings intelligence.
Components of Theory
 Concepts
 Constructs
 Definition
 Variables
 Proposition and Hypothesis
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Concepts:
To understand and communicate information about objects and events, there must be a common
ground on which to do it. Concepts serve this purpose. A concept is generally accepted collection of
meanings or characteristics associated with certain events, objects, conditions, situations and
behaviours. Classifying and categorizing objects or events that have common characteristics beyond
any single observation creates concepts. We see a man passing and identify that he is running,
walking, skipping, crawling etc. These movements are all represent concepts. We use numerous
concepts daily in our thinking, conversing and other activities.
Constructs:
A construct is a theoretical dimension that has been or potentially could be operationalized by one or
more variables. The term ‗concept‘ and ‗construct‘ are often used in place of one another. Concept is
usually regarded as the more general of the terms. Concepts refers to Broad concepts or topics of
study. Examples: Aggression, Love, Intelligence & Life satisfaction Researchers define constructs
both “conceptually” and “operationally”. Conceptual definition Provides meaning to one construct in
abstract or theoretical terms (what does it mean). But we have to make our abstract concepts concrete
so we can study them.
Operational Definition
Defines a construct by specifying the procedures used to measure a construct (How to measure it). i.e
the assignment of numerals to objects, events.
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KV INSTITUTE OF MANAGEMENT AND INFORMATION STUDIES

BA4205-BUSINESS RESEARCH METHODS

1.1 INTRODUCTION TO RESEARCH

a) what is the target market of my product?

b) How to decrease the amount of excess inventory on hand.

research is more than conducting surveys.

1.9 NEED FOR RESEARCH/IMPORTANCE OF RESEARCH/SIGNIFICANCE/ ROLE OF

1.11 CRITERIA FOR GOOD RESEARCH

Sampling methods are classified as either probability or non-probability.

model to predict future values based on previously observed values.

Exploratory Descriptive Analytical Predictive

1.15 RESEARCH PROBLEM

 Field observation may be undertaken

problem. Research problem cannot exist in isolation as it is an outcome of management decision

Hypothesis should be stated in advance

characteristics of one phenomenon from the knowledge of another phenomenon‘s characteristics. A

Understanding the relationship

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