10 MBA 26

BUSINESS REARCH METHODS

Meaning of Research
It means search for knowledge It is an art of scientific investigation It is an organized enquiry in search of facts*

It is a scientific** and systematic search for pertinent*** information on a specific topic or an effort to gain new knowledge It is an academic activity**** that needs formulating hypotheses, collecting data on relevant variables, analyzing and interpreting results and reaching conclusions either as solutions or certain generalizations leading to formulation of theories. ***Pertinent relevant information based on objectives of research ****Academic activity because it is a study done in an institution, either educational or commercial.

Arbitrary / Casual vs Scientific Method

Arbitrary / Casual method of seeking answers to questions based on imagination, opinion, blind belief or impression. Eg. Opinion seeking in choosing clothing, selecting a movie, usually from friends on a casual basis. Typically arbitrary method is highly subjective, the findings may vary from person to person depending on his experience, impression or imagination

Scientific Method
Scientific Method is a serious, systematic and rational approach to seeking facts. It is objective, precise and arrives at conclusions based on verifiable evidence. Eg. Opinion polls prior to elections

Objectives or Purpose of Research

To extend knowledge of human beings, social life & environment To bring to light new / hidden information To establish generalizations and contribute to theory building To verify and test existing facts and theories To make reliable predictions To analyze inter-relationships between variables and to derive causal explanations

Motivation to do research
Desire to get a degree and consequent benefits Desire to face the challenges in the research problem Desire derived from intellectual joy and creative work Desire to be of service to society Desire to get respectability Research forms the basis for company and government policies

Research Methods vs Research Methodology

Research Methods refers to all those techniques used by the researcher during the course of studying his research problem or conducting his research operations Research Techniques refers to the behavior and instruments we use in performing research operations such as making observations, recording data, processing data etc using questionnaire, candid camera, tape recorder etc

Eg. 1. In Library Research, res. method can be analyzing iiry data, and res. technique can be tabulation & statistical compilation. Eg. 2. In Field Research, res. method can be personal interview and res. technique can be using a schedule and tape recorder. Research methods can be put into three groups: Methods concerned with the collection of data Statistical techniques used for establishing relationships between the data and the unknowns Methods used to evaluate the accuracy of the results obtained

Research Methodology

Research methodology is a way to systematically solve the research problem It is a science of studying how research can be done scientifically It includes both research methods and how to apply research techniques Research methodology may vary from research to research based on the problem

Research methodology implies not only the research methods but also considers the logic behind the methods we use in the context of our research study and explains why we are using a particular method or technique and why we are not using others in order to make the research results capable of being evaluated either by the researcher himself or others. Eg. Why personal interview method was preferred over mail questionnaire time constraint, smaller sample, higher response rate Could be considered

Types of research:
1. Basic research vs. applied research: Basic research: it is called fundamental research, theoretical research or pure research, because it is done for the sake of only knowledge enhancement. It is the research that is intended to expand the boundaries of knowledge itself or to verify the acceptability of a given theory / basic principles

It addresses itself to more fundamental questions and ignores the aspects of commercial potential. It is mainly concerned with generalizations and with the formulation of theories / principles. Eg. Research studies concerning some natural human behavior carried on with a view to make generalizations about human behavior Maslows Hierarchy of Needs Theory in Motivation; theories on performance & rewards ; punishment and learning etc.,

Applied research: It is also called decisional research. It is the application of available scientific methods in social science research which helps to accept, contradict, alter or modify any existing theory / theories and helps to formulate a policy and / or specifies alternative solutions. It is, therefore, concerned with actual /real life situations and suggests remedial measures to alleviate social problems or offers solutions to business problems that takes into account all the commercial considerations.

Eg.1 A company marketing health drinks to overcome malnutrition problem in children may want to conduct a market study to know the effectiveness of its ad campaign Eg.2 An organization is planning for a paperless office and networking system may conduct a research to learn the amount of time its employees spend on personal computers in an average week. Market research is an example of applied research that has a practical problem solving approach Eg.1 Why has sales dropped in last quarter? Eg.2 How to develop a new market for a product Eg.3 What is the customer profile for the cheap car segment?

2. Descriptive vs. analytical research:

Descriptive research : The major purpose of descriptive research is description of the state of affairs, as it exists at present. 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. E.g. frequency of shopping, preferences of people, life-style of customers, TV viewing habits etc. This is also used by researchers to discover causes; hence also called ex-post facto research i.e., an empirical enquiry for situations that is happening or that which has already happened Eg. Survey methods, correlation studies etc that try to find out say reasons for drop in sales, product failure, relationship between ad expenditure and sales etc.,

Analytical research use facts or information already variable, and analyze these to make a critical evaluation of the data material. Eg. Analyzing the facts obtained in s descriptive study to draw meaningful conclusions.

3. Quantitative vs Qualitative Research

Quantitative Research is based on the measurement of quantity or amount. It is applicable to a phenomenon that can be expressed in terms of quantity. Eg. Research aimed at finding proportion or percentage falling under a certain age group or income group. Descriptive research and causal research studies falls in this category Qualitative research, on the other hand, is concerned with qualitative phenomenon and aspects that involves qualitative measures and is particularly important in behavioral sciences which aims to discover the underlying motives of human behavior and hence applied extensively in marketing research. Eg. Discovering the motives for likes and dislikes in people, opinion of people about a product / company etc Exploratory research studies fall in this category

4. Conceptual Research vs Empirical Research

Conceptual Research is a study related to abstract ideas, theory or concept. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones. Eg. A study that relates the growth of retail industry to increasing youth in urban and rural demography and higher incomes with research based on works of various authors. Empirical Research relies on experience, observation or actual studies alone. It is data based research, coming up with conclusions which are capable of being verified by observation or experiment. In such a research, it is necessary to get facts first-hand, at their source. In such a research, the researcher must provide himself with a working hypothesis based on probable results. He then works to get enough facts to prove or disprove his hypothesis. Such a research is appropriate when proof is sought that certain variables affect other variables. An empirical res. study can be taken up based on conceptual research

Eg. A survey can be conducted to determine the spending pattern of various age groups and their shopping habits. A hypothesis guiding this study can confirm the age group that spends the highest and their favorite retail outlets. Eg. 2 Causal research studies that establishes relationship between variables

5. Historical Research
It is a study of the past records and data in order to understand the future trends and development of the market. Eg. iiry data analysis 6.Case Study approach This type of study is intensive in nature where facts are gathered wrt particular industrial units that serves as precedence in management decision making and excellent study material in management studies

Criteria or Characteristics of a Good Research

Whatever be the type of research, it is important that they meet the common criteria of scientific research methods. Following are the criteria of good research:

Good research is systematic and scientific: The purpose of the research should be clearly defined Research should be is structured with specific steps to be taken in an orderly sequence Creative thinking can be employed but not guess work and intuition It should be objective in its approach It should be free from personal biases It should be done with high ethical standards Its limitations should be frankly revealed

Good research study must facilitate management decision Making: Its limitations should be frankly revealed The study should present findings unambiguously Conclusions should be limited to those for which the data provide an adequate basis. Good research relies on experience, reputation and integrity of the researcher.

SCIENTIFIC METHOD IN RESEARCH PROCESS

Characteristics of Scientific Method Validity It measures what it claims to measure. It is the ability of a measuring instrument to measure what it is supposed to do Eg. In social sciences a questionnaire is administered to determine the attitudes of the respondent towards a movie. As long as the questionnaire serves this purpose, we say the instrument is valid. In physical sciences, instruments like thermometer, barometer or foot ruler measures what they meant to do, repeated several times by different individuals with the same result

It relies on empirical evidence - Studies based on real life situations It utilizes relevant concepts / theories Reliability It allows the research to be repeated again and again by any researcher, always with the same result. Objectivity Classifies facts accurately without any bias Its Methodology may be subject to critical scrutiny to enable replication Accuracy of measurement in administering research techniques Self Criticism : Enables critical examination of the research process

Distinction between Scientific and Non(Un)scientific Method

1.Rationality and Objectivity Scientific method is more objective as compared to non scientific method Its development is normally a result of long years of experience and good deal of thought Its hypothesis can be verified with the help of statistical techniques Its conclusion is based on facts

Eg.1.Research methodology rationalizes why a particular research method is employed Eg. 2 A researcher is required to be impartial and unbiased in approaching a research problem. His mind set should not influence it. Otherwise, objectivity is sacrificed. Non scientific method is irrational and subjective in its approach. It is haphazard in its methods, emotional and biased in its approach.

2. Degree of Accuracy Scientific method is more precise than non scientific methods Relies on measurement with proper instruments for higher degree of accuracy. Eg. Thermometer for measuring temperature; Surveillance camera for observations etc

In non-scientific methods the degree of accuracy is low owing to use of improper instruments or no instruments. Eg. Checking weight, temperature by hand instead of proper instruments like thermometer, weighing scale etc

3. Maintaining Continuity in Investigation Scientific method takes into account existing knowledge The results of various researchers add to this existing knowledge This helps in accumulation of systematic knowledge which is continuous and unending, Eg. In science, every time there is an invention, there is further research to improve the same ; Basic phone to mobile phone; bullock cart to motor car etc., However, the same is not true in the case of non scientific methods

FUNDAMENTALS OF MARKETING RESEARCH

Introduction
Marketers need to identify their target markets and approach them scientifically Through research they are able to know who their customers are and know what they are looking for. Marketing research is, therefore a tool to assist managers in decision making about the marketing of products and services of a company based on consumer needs.

Marketing Research (Definition)

Marketing Research is the a systematic study involving the gathering, recording and analyzing of data about the problems relating to the marketing of goods and services.(American Marketing Assn)

Market Market Characteristics Market Potential (read from notes )

MKT RES vs. MKTNG RES

Market Research (definition)
It is a systematic study of a place, demand, people or organizations that make up the market to ascertain its characteristics, potential, problems and opportunities for existing or proposed product or service in relation to its buyers and sellers. It is a study of the market itself in terms of its size, growth, or decline, factors affecting it, no. of competitors, market share etc., Market research, therefore conveys a narrower meaning

Marketing research is a broader inclusive term that covers the entire process of marketing and not confined to merely the market alone. It embraces various research activities carried out with the management of marketing that includes market analysis study of size,
location, nature and char. of markets ;
sales research analysis of sales data; consumer research motivation, attitude, reaction, preference etc advertising research recall, awareness copy testing etc product & packaging research preference, development inputs etc

Objectives of MKTNG Res Limitations in applying MR MI vs. MR Need for BR Limitations of MR Uses / applications of MR Ethical issues in BR Guidelines for selecting MR agencies