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BA5202/Business Research Methods

Unit – I Introduction
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.
1. Research significance/Process/types

Research: Research is the process of findings solution to problem after a thorough study
and analysis of situational factor.
According to Redman and Mory defines “Research has systematic effort to gain a new
knowledge”.

Significance of Research Research process

Research process consists of serious of
 Making future forecast
actions or steps necessary to effectively
 Understanding market place
carry out research and the desired
 Understanding perceived value of goods
sequencing of these steps. These are,
 Improving the quality of decision making
1. Formulating the research problem.
 Solving operational and planning problems
2. Extensive literature survey.
 Expanding existing business
3. Developing the hypothesis.
 Exploring new business
4. Preparing the research design.
 Broadening and deepening technological
5. Determining sample design.
capabilities.
6. Collecting the data.
7. Execution of the project.
8. Analysis of data.
9. Hypothesis testing.
10. Generalization and interpretation.
11. Preparation of report.
Step: 1 Defining Research Question/ Problem and Research Objectives:
 "A problem well defined is half-solved". Poorly defined problems cause
confusion and do not allow the researcher to develop a good research design.
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 Essentially two steps are involved in formulating the research problem, viz.,
understanding the problem and rephrasing the same into meaningful terms from
an analytical point of view.
 There are two types of research problem which relates to state of the nature and
those which relates to relationship between variables.
Step: 2 Extensive Literature Survey:
 For this purpose, the abstracting and indexing journals and published or
unpublished bibliographies are the first place to go.
 Academic journals, conference proceedings, government reports, books etc.,
must be taped depending on the nature of the problem.
Step: 3 Formulations of Hypotheses:
 Working hypothesis is tentative assumption made in order to draw out and test its
logical or empirical consequences.
4. Preparing the research design.
 A research design is the set of methods and procedures used in collecting and
analyzing measures of the variables specified in the research problem.
 Research purpose may be grouped into Exploration, Description, Diagnosis, and
Experimentation.
5. Determining sample design.
 A sample design is the framework, or road map, that serves as the basis for the
selection of a survey sample.|
6. Collecting the data.
 Primary: Information collected specifically for the problem at first hand
 Secondary: Information already collected
Step: 7 Execution of the Project: The researcher should see that the project is executed
in a systematic manner and in time. If the survey is to be conducted by means of
structured questionnaires, data can be readily machine-processed.
In such a situation, questions as well as the possible answers may be coded.
Step: 8 Analysis of Data:
i) Coding: Operation is usually done at this stage through which the categories of data
are transformed into symbols that may be tabulated and counted.
ii) Editing: is the procedure that improves the quality of the data for coding. With coding
the stage is ready for tabulation.
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iii) Tabulation: is a part of the Technical procedure where in the classified data are put
in the form of tables.
iv) Analysis: work after tabulation is generally based on the computation of various
percentages, coefficients, etc., by applying various well-defined statistical formulae.
9) Testing of hypothesis: The hypothesis may be tested through the use of one or more
of such tests, depending upon the nature and object of research inquiry. Hypothesis
testing will result in either accepting the hypothesis or in rejecting it.
Step: 10 Generalizations and interpretation: If a hypothesis is tested and upheld
several times, it may be possible for the researcher to arrive at generalization, i.e., to build
a theory. If the researcher had no hypothesis to start with, he might seek to explain his
findings on the basis, of some theory. It is known as interpretation.
Step: 11 Preparation of the report or the thesis: After analysis and interpretation, the
researcher has to prepare the report. The layout of the report should be as follows (i) The
Preliminary Pages (ii) The main text (iii) The end matter. The main text of the report
must have (i) Introduction (ii) Summary of findings (iii) Main Report (iv) Conclusion.

Figure: research Process

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2. Objectives of research in Research methodology

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden
and which has not been discovered as yet. Though each research study has its own
specific purpose, we may think of research objectives as falling into a number of
following broad groupings:

Aims and Objectives of Research Methodology

1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with this
object in view are termed as exploratory or formulative research studies);
2. To portray accurately the characteristics of a particular individual, situation or a
group(studies with this object in view are known as descriptive research studies);
3. To determine the frequency with which something occurs or with which it is associated
with something else (studies with this object in view are known as diagnostic research
studies);
4. To test a hypothesis of a causal relationship cause and effect between variables (such
studies are known as hypothesis-testing research studies).

Objectives of the research

 To gain familiarity with a phenomenon or to achieve new insights into it.

 To describe accurately the characteristics of a particular individual, situation or a
group.
 To determine the frequency with which something occurs or with which it is
associated with something else.
 To test a hypothesis of a causal relationship between variables.
 It's meaning is to find out the truth which is hidden and which has not been
discovered yet.
 Research objectives as falling into a number of following broad grouping.
 Gain familiarity with a phenomenon or achieve new insight.
 Portray accurately the characteristics of a particular individual situation on a
group1.
 Determine the frequency with which something occurs.
 To test Hypothesis between variables.
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3. Research types

(a) Type of research on the basis of aim

(1) Basic vs applied: Basic research aims to develop knowledge, theories and
predictions, while applied research aims to develop techniques, products and
procedures.

(2) Exploratory vs explanatory: Exploratory research aims to explore the main

aspects of an under-researched problem, while explanatory research aims to explain
the causes and consequences of a well-defined problem.

(3) Inductive vs deductive: Inductive research aims to develop a theory, while

deductive research aims to test a theory.

(b) Types of research on the basis of data

(1) Primary vs secondary: Primary data is collected directly by the researcher (e.g.
through interviews or experiments), while secondary data has already been collected
by someone else (e.g. in government surveys or scientific publications).

(2) Qualitative vs quantitative: Qualitative research methods focus on words and

meanings, while quantitative research methods focus on numbers and statistics.

(3) Descriptive vs experimental: Descriptive research gathers data without controlling

any variables, while experimental research manipulates and controls variables to
determine cause and effect.

(c) Types of research on the basis of sampling, time scale and location

(1) Probability vs non-probability sampling: Probability sampling allows you

to generalize your findings to a broader population, while non-probability
sampling allows you to draw conclusions only about the specific subjects of the
research.

(2) Cross-sectional vs longitudinal: Cross-sectional studies gather data at a single

point in time, while longitudinal studies gather data at several points in time.
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(3) Field vs laboratory: Field research takes place in a natural or real-world setting,
while laboratory research takes place in a controlled and constructed setting.

(4) Fixed vs flexible: In a fixed research design the subjects, timescale and location
are set before data collection begins, while in a flexible design these aspects
may develop through the data collection process.

(d) Types of research on the basis of research design

(1) Exploratory research: Explore hidden things

(2) Descriptive research: Describe the characteristics of particular phenomena or facts.

(3) Causal research: Cause and effect relationship

(4) Experimental research: manipulate one or more independent variables and measure
their effect on one or more dependent variables.

General research types

Types of Research:
1. Exploratory Research or formulative research and Clinical or Diagnostic or
causal Research.
Exploratory research or formulative research: The objective of exploratory
research is to gather preliminary information that will help define problems and suggest
hypotheses.
Clinical or Diagnostic or causal Research follows case-study methods or in
depth approaches to reach the basic casual relations. Studies go deep into the causes of
things or events that interest us, using very small samples and very deep probing data
gathering devices.

2. Conceptual or theoretical Research and Empirical Research

Conceptual Research is related to some abstract ideas or theory. It is mainly
used by philosophers and thinkers to develop new concepts or to interpret the existing
ones.
Empirical Research relies on experience or observation alone. It is a data based
research, coming up with conclusions which are capable of being verified by observation
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or experiment. It is necessary to get at facts first-hand, at their source, and actively to go

about doing certain things to stimulate the production of desired information.
3. Cross–sectional and Time-series research
Cross-sectional data: Data of one or more variables, collected at the same point
in time.
Cross-sectional research studies are based on observations that take place in different
groups at one time.
Cross-sectional research study can be used to describe the characteristics that exist in a
group, but it cannot be used to determine any relationship that may exist.
Cross-sectional research studies all have the following characteristics:
 Takes place at a single point in time
 Variables are not manipulated by researchers
 Provide information only; do not answer why
Time series data: A set of observations on the values that a variable takes at different
times.
Values taken by a variable over time and tabulated or plotted as chronologically ordered
numbers or data points. To yield valid statistical inferences, these values must be
repeatedly measured, often over a four to five year period.
Time series consist of four components:
(1) Seasonal variations that repeat over a specific period such as a day, week,
month, season, etc.
(2) Trend variations that move up or down in a reasonably predictable pattern,
(3) Cyclical variations that correspond with business or economic 'boom-bust'
cycles or follow their own peculiar cycles, and
(4) Quantitative and Qualitative Research
Quantitative Research is based on the measurement of quantity or amount. It is
applicable to phenomena that can be expressed in terms of quantity. It concerned
with qualitative phenomena and phenomenon relating to or involving quality or
kind.
Qualitative research is a type of social science research that collects and works
with non-numerical data and that seeks to interpret meaning from these data that help us
understand social life through the study of targeted populations or places. Its aim is to
discover the underlying motives of human behavior. It analyzes the various factors
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which motivate people to behave in a particular manner or which make people like or
dislike a particular thing.
(5) Descriptive Research and Ex post facto Research
Descriptive research is used to describe characteristics of a population or
phenomenon being studied.
Its main purpose is description of the state of affairs as it exists at present.
The researcher has no control over the variables.
He can only report what has happened or what is happening.
Ex post facto design is a quasi-experimental study examining how an
independent variable, present prior to the study in the participants, affects a dependent
variable.
6. Analytical research and Fundamental research

In Analytical Research, the researcher has to use facts or information already

available, and analyze them to make a critical evaluation of the material.
A n a l yt i c a l R e s e a r c h i s p r i m a r i l y c o n c e r n e d with testing hypothesis and
specifying and interpreting relationships, by analyzing the facts or information already
available.
Sub-divisions of analytical research
 Historical Research
It is the study of past records and other information sources, with a view to find
the origin and development of a phenomenon and to discover the trends in the
past, in order to understand the present and to anticipate the future.
 Philosophical Research
It is the research in the fundamental nature of knowledge, reality and existence.
It is the research/study of the theoretical basis of a branch of knowledge
or experience.
 Review
It is the process of a formal assessment of is search with the intention
of instituting/making any change in it if necessary
 Research Synthesis (Meta Analysis)
It is the process through which two or more research studies are assessed with the
objective of summarizing the evidence relating to a particular question.
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Fundamental research tends to make generalizations about the phenomenon, and the
philosophy of this type of studies can be explained as ‘gathering knowledge for the sake
of knowledge’. Fundamental researches mainly aim to answer the questions of why, what
or how and they tend to contribute the pool of fundamental knowledge in the research
area.

4. Hypothesis
Hypothesis: Hypothesis is considered as an intelligent guess or prediction that gives
directional to the researcher to answer the research question.
“Hypothesis or Hypotheses are defined as the formal statement of the tentative or
expected prediction or explanation of the relationship between two or more
variables in a specified population”.
“A hypothesis is a formal tentative statement of the expected relationship between
two or more variables under study”.
Hypothesis is derived from the research problems, literature review and conceptual
framework.

Contribution of hypothesis in research

 It provides clarity to the research problem and research objectives
 It describes, explains or predicts the expected results or outcome of the research.
 It indicates the type of research design.
 It directs the research study process
 It identifies the population of the research study that is to be investigated or
examined.
 It facilitates data collection, data analysis and data interpretation

Characteristics of hypothesis:
1. Clarity
Hypothesis should be clear and precise. If the hypothesis is not clear and precise, the
inferences drawn on its basis cannot be taken as reliable.
2. Scope for verification
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Amenable for verification. Hypothesis should be capable of being tested. A hypothesis

"is testable if other deductions can be made from it which, in turn, can be confirmed or
disproved by observation."
3. Specific
Ambiguous- clearly stated. Hypothesis should be limited in scope and must be specific.
A researcher must remember that narrower hypothesis are generally more testable and he
should develop such hypothesis. Technical jargons avoided.
4. Testable
Able to be tested using analytical tools available.
5. Linked to theory
Hypothesis should facilitate establishing relationship with a body of theory that is
guided by likes & dislikes.
6. Relationship
Hypothesis should state relationship between variables, if it happens to be relational
hypothesis.
7. Consistent: Hypothesis should be consistent with most known facts i e., it must be
consistent with a substantial body of established facts. In other words, it should be one
which judges accept as being the most likely.
8. Simple: Researchers should state hypothesis as far as possible in most simple terms
so that the same is easily understandable by all concerned. But one must remember that
simplicity of hypothesis has nothing to do with its significance.

Types of hypothesis
Types of hypothesis:
1. Crude hypothesis: Develop hypothesis based on available evidence and data.
2. Refined hypothesis: More significant in research, degree of significance depends on
abstract.
3. Working hypothesis: Process of verifying the among various variables included in
Research all techniques.
4. Statistical hypothesis: Based on sample data or facts.
5. Null hypothesis: Relationship between variables. Negative & Reject (Ho)
6. Alternate hypothesis: Relationship between variables. Positive & Accept (H1).
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Procedure for testing of Hypothesis

Figure: Procedure for hypothesis testing

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5. Role of theory in research

Theory: A theory is a set of systematically interrelated concepts, definitions, and

propositions that are advanced to explain and predict phenomena (facts).
Role of Theory in Research
A theory can develop scientific knowledge in research by these criteria:

Role of Theory in Research

Prediction of Behavior
Understanding Relationships
Other Roles

1. Prediction of Behavior: A theory enables to predict the behavior or

characteristics of one phenomenon from the knowledge of another phenomenon.
Accomplishing the first goal allows the theorist to predict the behavior or
characteristics of one phenomenon from the knowledge of another phenomenon's
characteristics. A business researcher may theories that older investors tend to be
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 investors' ages. The ability to anticipate future conditions in
the environment or in an organization may be extremely valuable, yet prediction
alone may not satisfy the scientific researcher's goals. Successfully forecasting an
election outcome does not satisfy one's curiosity about the reason 'why' a
candidate won the election. A researcher also wants to gain understanding. In
most situations, of course, prediction and understanding go hand in hand. To
predict phenomena, one must have an explanation of why variables behave as
they do. Theories provide these explanations.

2. Understanding Relationships: To gain an understanding of the relationship among

various phenomena. A theory is a coherent set of general propositions, used as principles
of explanation of the apparent relationships of certain observed phenomena. A key
element in our definition is the term proposition. Before one can see what a proposition
is, however, he must discuss the nature of theoretical concepts.
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3. Other Roles
i) Suggests a problem for study.
ii) Gives a hypothesis to be tested.
iii) Provides simple explanation about the observed relations regarding their relation to a
phenomenon,
iv) Helps in being consistent with already founded body of knowledge and the observed
relations,
v) Provide a device for verification and revision, and fourth, stimulate further research in
areas needing investigation.
vi) A theory specifies the concepts appropriate to the research problem, the definitions
of these concepts, their measurement if applicable and the ways in which these concepts
are related to one another.
vii) Provides a conceptual model for delimiting the scope of the study.-
viii) Helps in the selection of variables or identification of classes of data to be collected,
ix) Makes research findings intelligible.

Components of Theory
Components of Theory

Concepts
Constructs
Definition

Variables

Proposition and Hypothesis

1) 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 a 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, or hopping. These movements all represent concepts. We also have abstracted
certain visual elements by which we identify that the moving object is an adult male,
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rather than an adult female or a truck or a horse. We use numerous concepts daily in our
thinking, conversing, and other activities.

2) Constructs: A construct is a theoretical dimension that has been or potentially could

be operationalised by one or more variables. The terms 'concept' and 'construct' are often
used in place of one another, but some authors make certain distinctions between the two.
Concept is usually regarded as the more general of the terms. In that case all constructs
are concepts, but all concepts are not constructs. 'Pain', e.g., is a construct that is also a
concept. But 'ideal mother' would be regarded by many researchers as a concept but not
a construct.

3) Definitions: Confusion about the meaning of concepts can destroy a research study's
value without the researcher or client even knowing it. If words have different meanings
to the parties involved, then the parties are not communicating well. Definitions are one
way to reduce this danger. Researchers struggle with two types of definitions: dictionary
definitions and operational definitions. In the more familiar dictionary definition, a
concept is defined with a synonym.

For example, a customer is defined as a patron; a patron, in turn, is defined as a customer

or client of an establishment; a client is defined as one who employs the services of any
professional and, loosely, as a patron of any shop. Circular definitions may be adequate
for general communication but not for research. In research, we measure concepts and
constructs, and this requires more rigorous definitions.

4) Variables: In practice, the term variable is used as a synonym for construct or the
property being studied. In this context, a variable is a symbol of an event, act,
characteristic, trait, or attribute that can be measured, and to which we assign categorical
values. For purposes of data entry and analysis, we assign numerical value to a variable
based on the variable's properties. Variables also take on values representing added
categories, such as the demographic variables of race or religion. All such variables that
produce data that fit into categories are said to be discrete, since only certain values are
possible.

5) Proposition and Hypothesis: A proposition is a statement about observable

phenomena (concepts) that may be judged as true or false. When a proposition is
formulated for empirical testing, people call it a hypothesis. As a declarative statement
about the relationship between two or more variables, a hypothesis is of a tentative and
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conjectural nature. A hypothesis is a formal statement explaining some outcome. In its

simplest form, a hypothesis is a guess. A sales manager may hypothesize that the
salespeople who are highest in product knowledge will be the most productive. An
advertising' manager may hypothesize that if consumers' attitudes toward a product
change in a positive direction, there will be an increase in consumption of the product. A
human resource manager may hypothesize that job candidates with certain majors will
be more successful employees.

Theory Generation (a) Inductive reasoning (b) Deductive reasoning

Figure: Inductive and deductive approach in theory

Table: Comparison between Deductive and Inductive theory:
Deductive Theory Inductive Theory
1) Works from the more general to more 1) Works from specific - observations to
specific. broader generalizations and theories.
2) Top-down approach. 2) Bottom-up approach.
3) Conclusions based on premises, logically. 3) Conclusion is likely based on premises
4) Arguments bases on laws, rules and 4) Observation-based arguments.
accepted principles.
5) Tests hypothesis. 5) Generates hypothesis.

**************All the best*************

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