TSH RSL Cle -() ’ LAX Daa rh Sa aed bea ta rere Lp) a ome (=: erry YBUSINESS RESEARCH METHODS MBA, SEMESTER - II According to the syllabus of ‘Anna University, Chennai’ S.Bharathi |- MBA Dr. T. Vetrivel Ph.D, MBA, MPhil Professor & Head, Department of Management Studies, Velalar College of Engineering & Technology, Erode Dr. P. Priyadarsini Ph.D, MBA, M.Phil, MSc (Psychology) & Head, Department of Management Studies, Associate Professor ‘Tagore Engineering College, Chennai . Dr. C. Meera Ph.D, MBA, M.Phil, DCA, DGT, PGDFM Associate Professor, Park College of Engineering & Technology, Kaniyur, Coimbatore a Thakur Publishers, Chennai * Lucknow * Meerut * Hyderabad * Jalandhar * Bengaluru * Pune + * Ahmedabad * Jaipur * Bhubaneswar * Bhopal*7 Syllabus BUSINESS RESEARCH METHODS Unit 1: Introduction Basnes Research ~ Definition and Significance ~ The Research Process ~ Types Causal a ~ Theoretical and Empirical Research — Cross ~Sectional and time ~ Series Res questions/Problems - Research Objectives - Research Hypotheses — Characteristics — Evolutionary Perspective — the Role of Theoryain Research. (9) of Research - Exploratory and earch — Research Research in an Unit 2: Researeh Design and Measurement @) Research design ~ Definition -~ types of Research Design - Exploratory and Causal Research Design — Descriptive and Experimental Design - Different Types of Experimental Design ~ Validity of Findings — Internal and External Validity ~ Variables in Research ~ Measurement and Scaling ~ Different Scales — Construction of Instrument — Validity and Reliability of Instrument. (9) 1a Collection - Survey versus Validation of Questionaire — Probability versus Unit g: Data Collection Types of Data - Primary versus Secondary Data ~ Methods of Primary Dati Observation — Experiments — Construction of Questionaire and Instrument — Sampling Plan - Sample Size ~ Determinants Optimal Sample Size ~ sampling Techniques - Non-Probability Sampling Methods. “ @) ve versus Quantitative Data ant Analysis - Cluster Unit 4: Data Preparation and Analysis Data Preparation — Editing ~ Coding ~ Data Entry - Validity of Data Quaiit Factor Analysis ~ Discrimin ‘Analyses ~ Bivariate and Multivariate Statistical Techniques = ‘Analysis - Multiple Regression and Correlation ~ Multi-dimensional Scaling ~ Application of Statistical Software for Data Analysis. (9) Unit 5: Report Design, Writing and Ethies in Business Research Reseurh Report ~ Different Types ~ Contents of Repor’ ~ Need of Execute ‘Summary - Chapterization — Rear er Chapter — Report Writing - The Role of Audience ~ Readability — Comprehension - Tone — Raut Proof — Report Format ~ Title of the Report ~ Ethics in Research — Ethical Behavior of Research - Subjectivity and Objectivity in Research. Text Books i). Donald R. Cooper and Pamela S. Schindler, Business Research methods, 9" Edition, TMH, 2006. ‘Alan Bryman and Emma Bell, Business Research Methods, Oxford University Press, New Delhi, 2008. Wiley India, New Delhi, 2006. i) Uma Sekaran, Research methods for Business, iv) K.N. Krishnaswamy, Appa Iyer Sivakumar and M. Mathirajan, Management Research Methodology, Pearson Education, New Delhi, 2006.Contents Unit 1: Introduction to Business i Research Wee LL. Research ii ina 1.1.1. Meaning and Definition of Research M74 1.1.2. Features of Good Research Mooyg 1.13. — Objectives of Research 2 yeh 1.1.4. Research Process 3B 1g? 1.1.5, Scope of Research IS 183. 1.1.6. Research Approach 7 yea 6.1. Quantitative Research 7 185 Qualitative Research B19. Qualitative versus Quantitative Data Analysis 20 Significance of Research 20 Limitations of Research — 21 Research in an Evolutionary Perspective 21 Business Research 2 21. Meaning and Definition of Business Research 22 2.1.1 Objectives of Business Research B 212 ‘Types of Business Research 2B 213. Applications of Business Research 214. Significance of Business Research 23 215. Limitations of Business Rescarch 2% 216 ‘Types of Research a7 217. Introduction a 22 (On the Basis of Application 27221. Pure Research 27222. Applied Research 2B 223. (On the Basis of Objective 2 224 Exploratory Research 2 225. Descriptive Research 29 226 Causal Research 30-227. On the Basis of Extent of Theory 3123. Theoretical Research 31234. Empirical Research 31 232. On the Basis of Time Dimension 32233. Cross-Sectional Research 32-234, ‘Time-Series Research 33-235. Panel Study 33 236, ‘Cohort Study 34 24. Research Questions/Problems 34241. Introduction 34 242. Components of Research Problem 35243, Precautions in Identifying Research Problem 35244 Selecting the Problem 35 244.1. Defining Research Problem 36 2442. Nature of Problem Definition 36-2443, Process of Problem Definition 37 24a. Necessity of Defined Problem 382.455. Research Objectives 38 2.4.5.1. Introduction 38 245.2, Framing Research Objectives 38 2.4.5.3. Types of Research Objectives 39 24.5.4. Research Hypotheses 39246. Meaning and Definition of Hypotheses 39247, Characteristics of Hypothesis 40 24.8, Sources of Hypothesis 40 25. Importance of Hypothesis 5.1. Fo nal 41 252. ‘Types of Hypothesis ‘Theory and Research ad Meaning of Theory 2 7 Role of Theory in Research 4a ‘Components of Theory 43) ‘Theory Generation Literature Review in Research ‘ Introduction Purpose of Literature Review 4 Process of Literature Review 45, Factors Influencing Writing Literature Review 47) Importance of Literature Review 43) Exercise a Unit 2: Research Design & j Measurement Research Design Meaning and Definition of Research Design Features of Good Research Design Need of Research Design Factors Affecting Research Design Requirements for Good Research Design Research Design Process ‘Types of Research Designs Exploratory Research Design Introduction Objectives of Exploratory Research Design Suitability of Exploratory Research Design ‘Techniques of Exploratory Research Design “Applications of Exploratory Research Significance of Exploratory Research Design Limitations of Exploratory Research Design Descriptive Research Design Introduction Objectives of Descriptive Research Design ‘Techniques of Descriptive Research Design “Applications of Descriptive Research ‘Significance of Descriptive Research Limitations of Descriptive Research ‘Causal or Experimental Research Design Introduction Basie Principles of Experimental Designs Causality in Experimental Research Design ‘Types of Experimental Research Design Pre-Experimental Designs ‘True Experimental Designs Quasi- Experimental Design Statistical Designs Validity of Findings Internal Validity Extemal Validity Controlling Extraneous Variables TTrade-offs between Intemal and Extemal 67) Applications of Experimental Research Designs 68 Significance of Experimental Research 6 Limitations of Experimental Research 9 Variables in Research 0 Introduction o Dependent and Independent Variables 0253. 254. 255: 26. 26.1. 262. 263. 264. 265. 26.6. 2.66.1 2.662. 2617. 268. 268.1 268.2, 268. 2684. 2685. 269. 26.10. 2.6.11 2%, Experimental and Measured Variables Qualitative and Quantitative Variables Categorical and Numerical Variables Measurement and Sealing Meaning and Definition of Measurement Functions of Measurement Measurement Process Measurement Techniques Different Types of Measurement Scales Scaling Scaling Techniques Process of Sealing ‘Construction of Instrument Scale Evaluation Criteria Validity of Instruments Reliability of Instruments Practicality of Instruments Sensitivity of Instruments Generalisability of Instruments Difficulties in Measurement Measurement Error Criteria for Good Measurement Exercise Unit 3: Data Collection & Sampling 3 BALL 3.12 3.13. 32. 321. 322. 3.23. 3.24. 33. 33.1 332. 333. 33.4. 34. Data Collection Introduction ‘Types of Data Primary Data versus Secondary Data Primary Data Introduction Significance of Primary Data Limitations of Primary Data ‘Methods of Primary Data Collection Observation Introduction ‘Methods of Observation Significance of Observation Limitations of Observetion Survey Method Introduction Nature of Survey Method Survey versus Observation Method ‘Types of Survey Survey Techniques Interview ‘Types of Interview Significance of Interview Limitations of Interview Questionnaire Construction of Questionnaire and Instrument Guidelines for Questionnaire Construction Validation of Questionnaire Types of Questionnaire . Significance of Questionnaire Limitations of Questionnaire Schedules ‘Types of Schedule Significance of Schedule Limitations of Schedule Difference between Questionnaire and Schedule 35. Experiments 112 355.1. Introduction 112 3.5.2. Steps in Conducting Experiments 112 353. Significance of Experiments 113 35.4. Limitations of Experiments 14 36. Secondary Data 4 36.1. Introduction 114 3.6.2. Secondary Data Collection Methods M4 363. Significance of Secondary Data 116 3.64. Limitations of Secondary Data u7 37. Sampling u7 3.7.1. Meaning of Sampling ur 372. Fundamental Definitions 48 37.3. Census and Sample Surveys 119 3:74, Census versus Sample 119 375, Sampling Plan 120 3.76. Advantages of Sampling 121 3.77. Disadvantages of Sampling 122 37.8. Sampling Errors 12 3781. Causes for Sampling Errors 122 37.82. Types of Sampling Errors 123 37.83. Preventing Sampling Errors 123 38, Sample Size 123 381. Introduction 123, 382. Determinants of Sample Size 13 383. Determination of Optimal Sample 124 3831. Determination of Sample Size (n) when 124 Estimating the Population Mean 3832. Determining Sample Size (n) When Estimating 126 the Population Proportion 3.9, Sampling Techniques 127 39.1, Introduction 127 3.9.2. Probability Sampling 127 3.92.1. Types of Probability Sampling 127 3.9.22. Advantages of Probability Sampling 129 3.92.3, Disadvantages of Probability Sampling 129 3.93. None Probability Sampling 129 3.93.1. Types of Non- Probability Sampling 129 39.32. Advantages of Non- Probability Sampling 130 39.33. Disadvantages of Non- Probability Sampling 130 3.9.4. Probability Sampling versus Non- Probability 130 Sampling 3.10, Exercise BI Unit 4: Data Preparation & Analysis 4.1. Data Processing and Preparation 132 4.1.1. Inoduction 12 4.1.2, Importance of Data Processing 132 4.13. Procsing Operation of Daa 13 13.1 137 aoe iB 4.133. Coding of Data oe 4.134. Classification of Data 7 Data Entry 138 Tabulation of Data 3. Problems in Data Processing 141 Data Analysis 2 Introduction la Objectives of Data Analysis 142 Phases in Data Analysis ia Data Analysis Techniques is425. Types of Data Analysis 4.2.5.1. Qualitative Data Analysis 42.5.2. Quantitative Data Analysis 42.5.3. Qualitative versus Quantitative Data Analysis Bivariate Analysis Introduction 4 Bivariate Statistical Technique: 43.2.1. Linear Correlation ae 4.3.2.2. Simple Regression 43.23, Two-Way ANOVA 44, Multivariate Analysis 44.1. Introduction Uses of Multivariate Analysis Multivariate Statistical Techniques Factor Analysis, Concept of Factor Analysis Objectives of Factor Analysis Statisties Associated with Factor Analysis Procedure of Factor Analysis Type of Factor Analysis Applications of Factor Analysis Discriminant Analysis 46.1 Introduction 4.6.2. Objectives of Discriminant Analysis 4.6.3. Steps in Discriminant Analysis 4.64. Applications of Discriminant Analysis 4.7. Cluster Analysis Concept of Cluster analysis Objectives of Cluster Analysis Statistics Associated With Cluster Analysis Procedure of Conducting Cluster Analysis, Applications of Cluster Analysis Multiple Regression and Correlation Introduction Multiple Regression Analysis Assumptions of Multiple Regression Analysis 4.8.2.2. Steps in Multiple Regression 4.8.23. Methods of Calculation 4.83. Multiple Correlation Analysis 4.83.1. Properties of Multiple Correlation 4.83.2. Methods of Calculation ‘Multi-Dimensional Scaling (MDS) 49. 49.1. Concept of Multi-Dimensional Scaling (MDS) 49.2. Objectives of MDS 4.9.3, Statistics and Terms Associated with MDS 4.9.4, Steps in Multi-Dimensional Scaling 49.5. Use of MDS 4.10. Application of Statistical Software for Data Analysis 4.10.1. Introduction 4.10.2. SPSS 4.10.3. SAS/STAT 4.104. STATA 4.11. Exercise Unit 5: Report Design, Writing & Ethics in Business Research 5.1. Research Report S.L1. Meaning of Research Report 5.1.2. Characteristics of Research Report 5.1.3, Different Types of Research Report 144 44 145 145 146 146 146 146 149 150 150 150 150 151 152 152 192 152 153 155 155 156 156 156 156 158 158 158 158 159 159 162 162 162 163 163 163 168 166 166 166 168 168 168 169 169 170 m 17 m 172 173 174 175 175 175 176 -10- Sd, 5.15. S16. 52. 521 2.2 523. 524, 525. 525.1. 5.2.5.2. 5253, 526. 5.27. 528. 529. 52.10. 52.11 52.12, 53, 53.1 532. 533. 533.1 5332. 533.3, 5334, 5335, 534, Formulation of Research Report Contents of Research Reports Significance of Report Writing Research Report Format Introduction Title of the Report Table of Contents and Chapterisation Contents of Chapter Executive Summary ‘Need of Executive Summary Writing Executive Summary Tips for Effective Executive Summary - Introduction to Report Statement of Objectives Methodology Limitations Findings Conclusions and Recommendations ‘Appendix Report Writing Introduction Pre-Writing Concems ‘Writing the Draft Role of Audience Readability Comprehension Tone Final Proof Presentation Considerations Mechanics of Writing a Research Report Precautions in Preparing Research Report Bthics in Research Introduction Principles of Ethical Research Ethical Behaviour of Research Sugging and Frugging Research Integrity Treating Others Fairly Subjectivity in Research Objectivity in Research 55. Exercise Question Paper — June 2010 205 Solved Paper - June 2011 206 Solved Paper - May/June 2012 216 Unit-Wise Classification 2mbwoduction to Business Research (Unit 1) INTRODUCTION TO BUSINESS RESEARCH A. RESRARCH a 1.1.1. Meaning and Definition of Research Research is a systematic activity to achieve the truth. It includes the ident data, analysing the data and finding the conclusion or truth based up parlance refers to a search for knowledge. One can also define research as pertinent information on a specific topic. In fact, research is a careful, systematic and scientific invest search of new facts in any branch of knowledge. tification of study area, the procedure for collecting on the scientific procedure. Research in common ‘a scientific and systematic procedure for obtaining jgation or inquiry for ‘Actording to Redman and Mory, “Research is a systematised effort to gain new knowledge”. According to Fred Kerlinger, “Research is an organised enquiry designed and earried out to provide information for solving a problem”, “According to Francis Rummel, “Rescarch is a careful inquiry or examination to discover new information or relaionships to expand and to verify existing knowledge”. ‘According to Robert Ross, “Research is essentially an investigation, a recording and analysis of evidence forthe purpose of gaining knowledge”. Research can also be defined as logical and systematised application of the fundamentals of science and scientific techniques which provide precise tools, specific procedures and techniques to the general and overall questions of a study rather than philosophical means for getting and ordering the data prior to their logic and manipulation. 1.1.2. Features of Good Research Features of good research are as follows: Feature of Good Research Well Defined Problems Systematic Purposive Scientiie Objectivity [| _ Observable or Empirical ‘Solution Seeking |] T{___ Generalisabitity ‘Unbiased L HY trans-isciplinary Clarity in Formulation Tesable Identifying Variables |] Serve the Validity Needs 1) Well Defined Problems: Nature and scope of the problem to be studied must be stated clearly, or must be well defined and formulated. ; 2) Systematic: A good research should always be a systematic and critical investigation into a phenomenon.: Jr's MBA Second Semester (Business Research Methods) Ay Thakur . always aim at describi 2% Purposive: A research is nota more compilation, but a purposive investigation; soit sould 7 ‘interpreting and explaining a phenomenon. tific method. Th au on scient . Scientific: This is one of the basic features of researches that it should always Oe ae ‘questions and hence Scientific method is a process for experimentation that is used to explore observations Provides a logical and systematic model to conduct a research. 4) aa i measuring tools and th 5) Objectivity: A research should be objective and logical, applying possible tests to validate the conclusion. : irical evidence. ©) Observable or Empirical: Good research should be based upon observable experience or empiric 7) Solution Seeking: Research should always be directed towards finding answers to pertinent question problems. is and solutions ¢ 8) Generalisability: It should emphasise on the development of generalisation, principles or theories. 9) Unbiased: The purpose of a good research should not to arrive at an answer, which is personally pleasing to th researcher, but rather one, which will stand up the test of criticism. 10) Trans-disciplinary: A good research should always encompass a broad spectrum of subjects (disciplines) relating to th environmental, cultural, social, economic, politcal, and many other dimensions. 11) Clarity in Formulation: If any hypothesis is to be tested it must be clearly formulated. 12) Testable: The research design must adequately answer the research questions and test the hypothesis. collecting the information and methods of logically deriving the conclusion must be developed. Only then control ' 13) Identifying Variables: Relevant variables must be clearly identified and operationalised. Adequate methods d 9 variance is possible. 14) Serve the Validity Needs: The research design must be structured in a manner that it fulfils the need of internal an external validity. 1.1.3. Objectives of Research The objectives of research are as follows: ‘Objectives of Research Research Extends Knowledge Research Unravels the Mysteries of Nature Research Establishes ————__]} Generalsations and General Laws oe Research Verifies and Tests ‘General Laws Developed through Research Research Analyses Inter Felationships ‘Applied Research Aims at Finding Solutions jon {t Aims to Develop Tools, Conceps | Research Aids in Planning Rational Decision Making ' 1). Research Extends Knowledge: Research extends knowledge of human beings, + Soci and researchers build up the wealth of knowledge through their research peo al life and envi ‘entis of questions: What, Where, When, How and Why of various eee indings. They search meen a have been developed by research in general and pure or funda , and enlighten us, farious imental research in part - The bodies of knowledg 2) Research Unravels the Mysteries of Nature: penealan, Research brin, { discovered fully during the ordinary course of life, ‘85 (0 light hidden information that might ve ight neverInout to Business Research (Unit 1) : 3) Research Establi ; ) ait bales io ere icra ns and General Laws: Research establishes generalisations and general laws and jaw semticet tei "ng in various fields of knowledge. The knowledge of isolated events is connected together to ecommerce nd acta laws. Law of gravitation, Law of demand, and principles of organisation such as unity generalisations laws and to — of consumer behaviour and motivation theories are some examples for such 4) Research Verifies and Tests: knowledge and ability to handle and testing theory. Research pl deflects, and clarifies theory. Research verifies and tests existing facts and theory and these help in improving situations and events. Empirical research goes far beyond the passive role of verifying lays an active role as it performs at least four major functions-initiates, formulates, 5) General Laws Developed through Ri tesearch: Ge Ve make reliable predictions of wont yet to happen: jeneral laws are developed through research which may enable us to 6) Research Analyse Inter-relationships: Research aims to analyse inter-relationships between variables and to derive causal explanations and thus enables to have a better understanding of the world in which we live. Ly 7) Applied Research Aims at Finding Solutions: Applied research aims at finding solutions to socio-economic problems (e.g. social unrest, unemployment, poverty) health problems, human relatins problems in organisations and so on. 8) It Aims to Develop Tools, ‘Concepts: Research aims at developing new tools, concepts, and theories for a better study of unknown phenomena. 9) Research Aids in Planning: Research aids in planning and thus contributing to national development. Research-social science research in particular — aids planning in the following ways: i) Research brings out factual data on prevailing situations and problems for drawing up plans and schemes on a realistic basis ii) Research uncovers needed facts on which sound decisions can be made before committing resources. i) Research studies enable the planners to evaluate alternative strategies and choose the most appropriate strategy for development of the various sectors like agriculture, industry, education, health, social welfare etc. iv) The dissemination of research finding creates a general awareness of the country's current situations and problems among the public, which inspire them to participate in formulation and implementation of development schemes. 10) Rational Decision Making: Analytical research studies internal and external environment of business and non-business organisations providing factual data for rational decision making and formulation of strategies and policies. 1.1.4, Research Process Research process consists of a number of closely related activities. But such activities overlap continuously and do not follow a strictly prescribed sequence. Various steps involved in a research process are not mutually exclusive; nor are they separate and distinct, They do not necessarily follow each other in any specific order and the researcher has to be constantly anticipating at each step in the research process the requirements of the subsequent steps. However, the following order concerning various steps provides a useful procedural guideline regarding the research process which is shown in the figure 1.1: 1) Defining research problem 2) Extensive literature survey 3) Formulation of hypothesis 4) Preparing the research design 5) Determining sample design ©) Collecting the data ~ 7) Execution of the project +8) Analysis of data 9) Testing of hypothesis: 10) Generalisations and interpretation and 11) Preparation of the report or presentation of the results, ic, formal write-up of conclusions reached.» 3» 4 o ‘Thakur’s MBA Second Semester (Business Research Methods) AUC () Review ‘ a concepts and | | Detine analyze ning") theories LT Formation || et | [Cotet dat daa |__| Inerpret Torhypotbesis| | Sie | | Execution (Testing of and report Rew | | Py min [riven CP) bes Lr previous ++ ion eng? research |} design) Tinting | | (ty ® = Feed back (Helps in controlling the sub-system to which is transmitted) Defining Research Problem: The first step in research is defining a research problem. It is most important stage in applied research, as poorly defined problems will not yield useful results. It is rightly said that, “A problem well defined is half-solved". Poorly defined problems cause confusion and do not allow the researcher to develop @ good research design. After a problem has been chosen, the next task is to formulate it precisely. This too needs a good deal of care on the part of marketing researchers. 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. Extensive Literature Survey: Once the problem is formulated, the next step is to write down a brief summary. For this the researcher should undertake extensive literature survey connected with the problem. For this purpose, the abstracting and indexing journals, 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. Formulation of Hypotheses: Now the researcher should state in clear terms the working hypothesis. Working hypothesis is tentative assumption made in order to draw out and test its logical or empirical consequences. As such the manner in which research hypothesis are developed is particularly important since they provide the focal point for research. Hypothesis should be very specific and limited to the piece of research in hand because it 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. Preparing the Research Design: Research design is the conceptual structure within which research should be conducted. A research design specifies the methods and procedures for conducting a particular study. The researcher should specify the approach he intends to use with respect to the proposed study. The function of research design is to provide for the collection of relevant evidence with minimal expenditure of effort, time and money. Determining Sample Design: The researcher must decide the way of selecting a “sample” or the sample design. A sample design is a definite plan determined before any data is actually collected for obtaining a sample from a given population, Samples can be either probability samples or non-probability samples. With probability samples each ‘Glement has a known probability of being included in the sample but the non-probability samples do not allow the researcher to determine this probability. Collecting the Data: The next step is to determine the sources of data to be used. The researcher has to decide whether he has to collect primary data or depend exclusively on secondary data. Sometimes, the research study is based on both secondary and primary data, Any statistical data can be classified under two categories depending upon the sources utilised. These categories are, i) Primary sources of data Secondary sources of dataIntroduction to Business Research (Unit 1) 7 bes Sooty da ~~ Lreeletg ets afresh and for the first time, and thus happen to be original in character. other hand, are those which hi ‘which ha been passed through the sastnal neces ich have already been collected by someone else and which have 7 ey hones The researcher should see that the project is executed in a systematic manner and in time. If situation, questions as TT by means of structured questionnaires, data can be readily machine-processed. In such a arrangements should be el ie the possible answers may be coded. If the data are to be collected through interviews, jdp'of instruction’ thane for proper selection and training of the interviewers. The training may be given with the should be made t nuals, which explain clearly the job of the interviewers at each step. Occasional field checks 'o ensure that the interviewers are doing their assigned job sincerely and efficiently, 8) Aly of Datas After the data have been collected, the researcher tums to the task of analysing them. The analysis of ee ae of closely related operations such as establishment of categories, the application of these egores ta through coding, tabulation and then drawing statistical inferences. Researcher should classify the raw data into some purposeful and usable categories. Analysis work after tabulation is generally based on the computation of various percentages, coefficients, etc., >y applying various well-defined statistical formulae. 9) Testing of Hypothesis: After analysing the data the researcher has to test the hypothesis, various tests such as Chi- square test, t-test, F-test, have been developed by statisticians for the purpose. 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. If the researcher had no hypothesis to start with, Generalisations established on the basis of data may be stated as hypothesis to be tested by subsequent researches in times to come. 10) Generalisation and Interpretation: If a hypothesis is tested and upheld several times, it may be possible for the researcher to arrive at Generalisation, ie., 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. The process of interpretation may quite often trigger off new questions, which in turn may lead to further researches. 11) Preparation of the Report or the Thesis: Although report writing needs some skill, which can be developed with practice, the researcher should follow the main principles of writing a report. 1.1.5. Scope of Research Research has a wide scope and draws upon the research findings of related disciplines such as sociology, psychology, anthropology, political science, biology, mathematical and other sciences. Business research may focus on theory or specific operational problems. In the former case the objective would be to discoverfillustrate precepts or principles and in the latter case the objective would be to provide solutions to current problems. Topics of research in functional areas of business are given below. ‘The main scope and areas in business research are as under: Scope of Research in Management ‘Accounting and Finance ‘Human Resource Development and [| Organisation Behaviour Marketing Research Organisational Research Industrial Research jon Reser 1) Accounting and Finance: In the area of accounting and finance, the tentative list of important topics in which research is carried-out are as under: i) Practices and procedures of budget control system. )) Inventory costing methods and practices. i) Depreciation method and their impact on earnings. iv) Transfer pricing methods and their impact on earnings, Y)_ Individual investment behaviour.16 2) 3) 4) 5) 3 ‘Thakur's MBA Second Semester (Business Research Methods) a vi) Capital structure and capital budgeting decisions. | vii) Mergers and acquisitions and their impact on company's earnings. | Human Resource Development and Organisation Behaviour: HRD and organisation behaviour constitutes very important areas in business field. Major areas in which research is carried-out inthis field are: i) Employee behaviours, ii) Employee attitudes, | iif) Leadership traits, iv) Performance appraisal system, and v) Assessment centre and evaluation, | Marketing Research: In the area of marketing business research is heavily practiced. So much is the application that . there is a separate branch of marketing research which looks afier the area of applications of research in the field of marketing. Marketing research is undertaken to assist the marketing function, Marketing research stimulates the flow of] marketing data from the consumer and his environment to marketing information system of the enterprise. Market) research involves the process | i) Systematic collection | ii) Compilation | iii) Analysis | | | iv) Interpretation of relevant data for marketing decisions ‘This information goes to the executive in the form of data. On the basis of this data the executive develop plans and programmes. Advertising research, packaging research, performance evaluation research, sales analysis, distribution channel, ete., may also be cor involving: i) Demand forecasting ii) Consumer buying behaviour iii) Measuring advertising effectiveness iv) Media selection for advertising ¥) Test marketing vi) Product positioning vii) Product potential lered in management research. Research tools are applied effectively for studies Organisational Research: The organisational research is an inter-disciplinary field. Since the men who carry-out researches in organisations come from a variety of backgrounds they tend to bring with them different tools, concepts) and different methodological approaches. | There is a growing recognition that knowledge of research methods may be useful for students preparing for careers as| practicing managers. In recent years empirically bas~d knowledge about organisation has grown at a phenomenal rate. The organisational research enables the managers to get eposed to a number of theories and research findings having relevance 10 organisations. Although the roles of managers and the research scientists are often viewed as very different, many of the day-to-day problems of managers are similar to those faced by researchers. If the managers are conversant with the research| methods, they can improve their problem-solving efficiency. For example, a manager is confronted with the problem of} high absenteeism in one department. Once the problem is identified and the need to take corrective action has been recognised, the manager must collect reliable and authentic information about the problem. The manager may often have hunches about the problem, which are similar to the hypothesis of the researcher. If the manager has sound knowledge of research methods, he can scientifically approach the problem. Otherwise, he may try as a fledgling to act on the hunches, resulting in an inefficient and costly process of trial and error used while studying a problem. It is needless to say that| knowledge of research process is highly indispensable to managers. Industrial Research: An industrial research laboratory is presumably a pragmatic organisation. Its objectives are directly| connected with the future welfare of a particular company. The specific objectives of industrial research are: ) To improve the quality of products; fi) To develop new materials, processes or devices for capturing new markets; j iii) To develop new uses for existing materials, processes or devic ) To effect savings in cost;Inrdoction to Business Research (Unit 1) i v) Toabate dangers; , yi) To assist in standardisation; and vii) To improve customer and public relations, 6) Production Research: A good production organisation is never static, it keeps on changing. If the production unit is successful, the changes turn about to be improvements. But the changes always bring difficulties, if not troubles. Thus, the research plays a logical and continuing role of production research in the production picture. Production research activities normally fall into three classificatio i) Investigation of new production methods. ii) Investigation of methods of standardisation and control. iil) Specialised “trouble shooting”, 1.1.6. Research Approach ‘A research approach can vary significantly depending on what is to be researched, if itis a scientific method, it would be appropriate to research similar methods or other scientists who have attempted the experiment. However, ifthe research was into social policy, e.g., it would be better to carry-out surveys, look into past surveys, etc. It is essential for the researcher to consider what itis he would like to find out, and then decide on the most appropriate method of finding that out. The general research approach acts as an overall guide for conducting the research work, The research questions determine the requirements for the research approach. ‘Two major approaches exist in research literature, ic., qualitative and quantitative, Qualitative methods are used to find and confirm the presence and absence of an element, while quant ive methods are used to measure the degree of an element already present. Quantitative research involves use of statistical analysis to obtain findings, while qualitative research includes gathering of data through open-ended questions that provide direct quotations. The interview is an essential part of the investigation. This research used both quantitative technique by empirically testing hypotheses through statistical method and qualitative method using semi-structured interviews with managers. The use of both methods enhances the understanding of social phenomenon, 1.16.1. Quantitative Research ‘Quantitative research design is the standard experimental method of most scientific disciplines. These experiments are sometimes referred to as true science, and use traditional mathematical and statistical means to measure results conclusively. although social sciences, education and economics have been known to ve research, Quantitative experiments all use a standard format, with a few minor inter-disciplinary differences, of generating a hypothesis to be proved or disproved. This hypothesis must be provable by mathematical and statistical means, and is the basis around which the whole experiment is designed. Randomization of any study groups is essential, and a control group should be included, wherever possible. A sound Quantitative design should only manipulate one variable at a time, or statistical analysis becomes cumbersome and open to [_ Descriptive Enos Longitudinal tL casual Figure 1.2: Types of Research 1.3.2. On the Basis of Application On the basis of application research is of two types: 1) Pure Research 2) Applied Research 1.3.2.1. Pure Research Pure research, also called basic research, is concerned with quest for knowledge and to know more about the phenomenon without concer for its practical use and also with developing and testing hypotheses and theories. Pure research takes place to explore a particular concept, or issue, without regards for a specific problem, and may be carried out to simply gain a better understanding of the overall concept. It is said, there is nothing so practical as a good theory, for example, the development of a model of a coaching behaviour. Such research in itself has no immediate value beyond contributing to an area of intellectual inquiry. Advantages of Pure Research 1) Itresults in general knowledge and an understanding of nature and its laws. 2) Provides the means of answering a large number of important practical problems. 3) Pure research lays down the foundation for the applied science that follows. 4) This research also leads to innovation in every aspect of human life and knowledge applications. Disadvantages of Pure Research 1) Itmay not give a complete specific answer to practical problems. 2) There is no obvious commercial value to the discoveries that result from pure research. 3) Itis time consuming and costly. 4) Itis based on theoretical aspect, but with no practical idea.28 ‘Thakur's MBA Second Semester (Business Research Methods) 1.3.2.2. Applied Research This researc it concerned ith Search for ways of using scientific knowledge to solve practical problems. It focuses analyzing and solving social and real life problems. The findings become basis of framing Brogramme and poi based on principles of pure research. According to Horton and Hunt, this research is an investigation for ways of Scientific knowledge to solve practical problems. Because this research is generally conducted on large-scale basis, expensive. As such, it is often conducted with the support of some financing agency like government, put corporation, World Bank, UNICEF, UGC, ICSSR, etc. Many a time, this type of research is conducted interdisciplinary basis also. An example of this may be a sports organisation that wishes to explore a potential market. They could commission resea to determine demand for sports-related services or products, or carry out research to explain why individual drop out fro Particular fitness programme after a short period of time. A sociologist who seeks to find out wh research. If this sociologist then tries t controlled, is doing applied research. y crime is committed or how a person becomes a criminal is working for p ‘0 find out how a criminal can be rehabilitated and his deviant behaviour can Advantages of Applied Research 1) Social benefits to society 2) Economic gains. 3) Applied research might also provide basic researchers with knowledge about novel research techniques a methodologies. 4) Has the potential to solve real problems. 5) Can create innovation. ©) The research is purposeful, so more likely to secure funding, Disadvantages of Applied Research 1) Needs to be carried out quickly in order to solve problems. 2) Assumes that all problems can be solved. 3) As itdeals with real people, methods may have to be adopted, impacting the robustness of the study. 4) Initial solutions may be very limited and not Seneralisable and that appropriate solutions for accomplishing the desi ‘outcome may not be produced at all, Pure/Basie Research ‘Applied Research D_ Aims to illustrate the theory by enriching the basis of a | Aims to solve a problem by ‘enriching the field of application scipline ‘of a discipline 2) Studies problem usually fiom the focus of one | Often several disciplines collaborate Tor solving the problem. discipline. 3) Seeks generalisations. Often studies individual 3 ases without the objective to generalise 4) Works on the hypothesis that variables not measured | Recognises thal her variables are constantly changing, remain constant 5)_Tries to say why things happen. ‘Tries to say how things can be changed. 1.3.3. On the Basis of Objective : a On the basis of fundamental objective research are designed in following ways: 1) Exploratory Research 2) Descriptive Research 4) Casual or Experimental Research : 3 Research a +s “a ee ree is to gain familiarity with a phenomenon or acquire nev insights into it in order to formu saya aoe in obleay or devel hypothesis, the exploratory tues is vey helpfl. the theory happens to be too gener 4 oxy spssitix hypothesis cannot be formulated. Therefore a need for an exploratory research is felt to gain experience th WS 1 dacigfal mw Sornvubsting relevant hypothesis for more detinite investigation,% nwoduction to Business Research (Unit 1) 2» Exploratory research is characterized by flexibility and versatility with respect to the methods because formal research protocol and procedure are not employed. It rarely involves structured questionnaires, large sample, and probability samplin plans. Rather researchers are alert to new ideas and insights as they proceed. Once the new idea or insight is discovered, they may redirect their exploration in that direction. That new idea is pursued until its possibilities are exhausted or another direction is found, For this reason, the focus ofthe investigation may shift constantly as new insight are discovered. Thus the creativity and ingenuity of the researcher plays a major role in exploratory research ' For example, a essarcer in the field of Psychology is interested in studying the influence of social environment on mental eal ‘cher is restrained from formulating any precise hypothesis for investigation based on the writings on this topic. In such a case the exploratory study is usually most suitable. ‘The following are the three approaches to the exploratory study 1) sor of Literature: A review ofthe eran helps lent the hypobesls which may serve as a guide for further stigation. 2) Experience Survey: A small portion of existing knowledge and experience is put experience provides opportunity to obtain information required to formulate hypothesis. 3) Case Study: The focus may be on individuals or situations or groups or communities. The method of study may lay stress on the examination of the existing records. It may be unstructured interviewing or participant observation or some other approach. ights for formulating hypothesis. Its approaches do It is important to bear in mind that exploratory study merely leads to i not consider it important to test or demonstrate them. Advantages of Exploratory Research 1) The principal advantage of exploratory research is that it increases a researcher's understanding of a subject. 2) Offers flexibility of sources employed. For example, secondary sources, such as published literature or data, informal discussions, formal structured interviews, pilot studies or case studies. 3) Exploratory research can be very advantageous in directing subsequent research approaches. A greater understanding of a subject helps hone subsequent research questions and can greatly increase the usefulness of a study's conclusions. 4). Exploratory research in some cases can save a great deal of time and money by flagging dead ends early Disadvantages of Exploratory Research 1) Not usually useful for decision-making by themselves 2) Itusually costs a lot 3) It may be unsuccessful (Failed experiments etc.)- 4) The results may come out negative. 5) Exploratory research is not typically gener 6) Exploratory research can be quite informal, relying on secondary rese alisable to population at large. arch such as reviewing available literature or data, 1.3.3.2. Descriptive Research int a picture” using words or numbers and to present a profil, a classification of Research in which the primary purpose is to “ps types, or an outline of steps to answer questions such as who, when, where, and how. It presents a picture of the specific details of aeration, social setting, or relationship. Much of the social research found in scholarly journals or used for making policy Seaiene ecerptve. Descriptive research in contrast to exploratory research js marked by a clear statement of the problem, specific hypotheses, and detailed information needs. The survey conducted in the department store patronage project, which involved personal interviews, is an example of descriptive research, Other ‘examples of descriptive research are: 1) Market studies, which describe the sizeof the market, buying power ofthe consumers, availability of distributors, and consumer profiles 2) Market share studies, which determine the proportion of total sales received by a company and its competitors 3) Sales analysis studies, which describe sales by geographic region, product line, type and size of the account. 4) Image studies, which determine consumer perceptions of the firm and its products 5). Product usage studies, which describe consumption patterns 6) Distribution studies, which determine traffic flow patterns and the number and location of distributors 7), Pricing studies, which describe the range and frequency of price changes and probable consumer response to proposed Price changes 8) ‘Advenising studies, which describe media consumption habits and audience profiles for specific television programs and magazines20 ‘Thakur's MBA Second Semester (Business Research Methods) Advantages of Descriptive Research : ; 1) Data collection techniques employed in this research present several advantages as they provide a multifaceted appro for data collection. . i q 2). Descriptive research provides an insight into life experiences in a way that other research methods can not. 8) Itis less expensive and time consuming. 4) Tcollects a large amount of data for detailed study. Disadvantages of Descriptive Research 1). Descriptive research requires more skills. 2) It does not identify the cause behind a phenomenon. 3) Response rate is low in this research. 4) Confidentiality is the primary weakness of descriptive research. Often subjects are not truthful as they feel the need tell the researcher what they think the researcher wants to hear. 5)_Descriptive research also presents the possibility for error and subjectivity. 6) This research can only be conducted when the esearch objectives are clear and the problems are unambiguous. 13.3.3. Causal Research Causal research is used to obtain evidence of cause-and-effect (causal) rela s. In casual studies it is typical to have eT con oF the relationship to be explained, such as predictaion about the influence of price. packaging. sdv ertising, a the like on sales, Thus, researcher must be knowledgeable about the research subject. Managers continually make decisions based on assumed causal relationships. These assumptions may not be justifiable, a the validity of the causal relationships should be examined via formal research. For example. the common assumption tha dcerease in price will lead to increased sales and market share does not hold in certain competitive environments, Can research is appropriate for the following purpose: 1) To understand which variables are the cause (independent variables) and which variables are the effect (Gepende variables) of a phenomenon 2) To determine the nature of the relationship between the causal variables and the effect to be predicted Like descriptive research, causal research requires a planned and structured design. Although descriptive research o determine the degree of association between variables, it is not appropriate for examining causal relationships. Such i eeviranation requires a causal design, in which the causal or independent variables are manipulated in a relatively controll environment. A relatively controlled environment is one in which the other variables that may affect the dependem varia are controlled or checked as much as possible. The effect of this manipulation on one or more dependent variables is th measured to infer causality. The main method of causal research is experimentation, Features of cause-and-effect method of research or Causal/Experimental research are: ') Although this research is primarily possible in areas of physical sciences, with the help of hypothesi carried out in social sciences 2) Makes use of quantification the findings, application of the statistical and mathematical tools and measurement of results thus quantified. 3) Causal research is used to obtain evidence of ‘cause-and-effect’ '(causal) relationships. 4) In causal studies itis typical to have an expectation of the relationship to be explained, such as predictation about t influence of price, packaging, advertising, and the like on sales. may alsot Advantages of Causal Research : 1) Helps marketers see how their actions shall affect business in future. 2). Helps control extraneous variables which is usually lesser in other research methods : 3) Involves manipulating the independent variable to observe the effect on the dependent variable. This makes it possible etermine a cause and effect relationshi Replication is very important as when similar results are obtained this gives greater confidence in the results, Disadvantages of Causal Research : 1) Elimination of extraneous variables is not always possible. 2) Experimental situation may not relate to the real world.