Business Research

Methods

Unit- 1
Introduction to Business Research
Methods
Meaning of Research
Research is a scientific and systematic
search for various information about a
specific topic. It is just like a search for
truth and knowledge.
The English Dictionary meaning of Research
is "a careful investigation or inquiry 2
especially through search for new facts in
any branch of knowledge".
Research is an academic activity. It is a
movement from the known to the unknown,
which may be called a Discovery.
Different definitions of research are given
by the Experts.
Definitions
 According to Redman and Mory, " Research is a
systematized effort to gain new knowledge".
 According to P.M Cook, "Research is an honest,
exhasutive, intelligent searching for facts and
their meanings or implication with reference to a 3
given problem".
 Clifford Woody, defines "Research is a careful
enqiury or examination in seeking facts or
principles a diligent investigation to ascertain
something".
 Nature and Charcteristics of
Research Methods
1. Scientific Method
2. Objective & logical
3. Applied & Basic Research.
4. Empirical Nature of Research
4
5. Generalizability
6. Controlled Nature of Basic Research
7. Development of Principle and Theory
8. Multipurpose Activity
9. Manipulation of concepts
10. Quantitative and Qualitative Research
11. Research- A Process
 Formulating
 Development
 Preparing
 Determining
 Collecting 5
 Analysis
 Testing
 Generalization
 Preparation of reports
 Follow-up
Objectives
 To Find solutions to problems
 To verify and test existing laws or theories
 To obtain information
 To extend knowledge
 To establish generalizations and general laws
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 To predit events
 To analyse inter-relationships
 To develop new tools & concepts
 To develop new principles & theories
 To develop innovative ideas
NEED & IMPORTANCE
● PRODUCT DEVELOPMENT
● REDUCTION IN COSTS.
● MARKETING MIX DECISIONS
 Product Decisions
 Pricing Decisions 7
 Promotion Mix
 Place Decision
● CUSTOMER RELATIONSHIPS
● DEALER RELATIONSHIPS
 Corporate Relationships
 Competitive Advantage
 Human Resources Plans & Policies
 Financial Management
 Market Expansion 8
Types of Research
1) Basic Research
2) Applied Research
3) Empirical Research
4) Scientific Research & Social Research
5) Historical Research 9
6) Exploratory Research
7) Descriptive Research
8) Qualitative Research
9) Quantitative Research
Concepts of Research
Any quality or quantity in which the researcher
is interested and which varies in the course of
the research e.g interest, skill, knowledge etc.
▹ TYPES OF VARIABLES
1
The most frequent variable encounter in 0
research are:
▹ Continuous and Discontinuous Variable
▹ Independent
▹ Dependent
 Continuous Variable – Variables have
different properties to which we assign
numerical values. If tha values of a variable
can be divided into fractions, it is called
continuous variable.
For example age, income, temperature,
income or scores in examinations. 1
 Discontinuous Variable – Any Variable that 1
has a limited number of distinct values and
which cannot be divided into fractions, it is
called discontinuous variables.
 For eg. The blood group of a person can be
type O or type A but not both.
▹ Independent variable – is also called
manipulative or treatment variable.
- it determine the nature or the occurrence of
another variable
- It is the variable that is manipulated by the
researcher
- It presume to cause, influence or affect the
outcome. 1
▹ Dependent Variable: is also called outcome 2
variable
▹ It is a variable that the independent variable is
presumed to affect.
▹ It is a variable that changes, appear or
disappear as researcher changes, remove or
introduces the independent variable.
▹ Extraneous Variable
▹ is a secondary independent variable,
that is, other independent variables or
factor that may affect the outcome of a
research if not controlled. Eg. Moderator
variable. 1
3
▹ Intervening Variable: cannot be
manipulated or studied directly because
their effect cannot be measured or
manipulated.
Examples
▹ Academic Procastination,
Overconfidence and Parental Unrealistic
Expectations as correlates of Academic
Rebelliousness 1
▹ Relationship between gender and 4
academic achievement of education
students
Concept of Research
 Quantitative Research
For example, Quantitative Research is
used to answer the questions such as
How Many? How Often? Using 1
5
mathematical.
 Qualitative Research
For example:- A focus group on the
quality of the food at cafe Mac
Stages in Research
Process
 Identifying and Selection of Research Problem
Essentials :
Researchable
Interesting 1
6
Purposeful
Understandable
Manageable
Ethical
 Review of Literature
 Formulation of Hypothesis
 Research Design
Aspects to be included :
Statement
Sources
Time Period 1
Area or Place 7
Resoucres
Techniques
Universe
Samples
Aims & Objectives
 Designing the Questionnaire
 Sampleb Design
Representative
Objective
Method of sampling
Economical 1
8
Sampling plan
Suitable Sample size
Selection
Sampling frame
Flexible
 Collection of Data
 Processing of Data
Editing
Coding
Classification
Tabulation 1
9
 Data Analysis and Data Intepretation
 Hypothesis Testing
 Preparation of Research Report
Preliminary Content
Main Body
Concluding Part
 Follow up Report
2
0
Characteristics of
Good Research
 Scientific Method
 Objective & Logical
 Empirical 2
1
 Generalisation
 Pilot Study
 Good Research Design
 Selection of Right techniques
Meaning of Hypothesis
 The hypothesis is a tentative solution of a
problem. The research activities are
planned to verify the hypothesis and not to
find out the solution of the problem or to
seek an answer of a question. It is very 2
essential to a research worker to 2
understand the meaning and nature of
hypothesis. The researcher always plan or
formulate a hypothesis in the beginning of
the problem.
Definition
 A statement temporarily accepted as true:
Barr and Scates define as, "A hypothesis is a
statement temporarily accepted as true in the
light of what is, at the time, known about a
2
phenomena, and it is employed as a basis for 3
action in the search for new truth, when the
hypothesis is fully established, it may take the
form of facts, principles and theories."
Chactertistics of a
Good Hypothesis
 Empirically Testable
 Conceptual Clarity
 Specific 2
 Related to available techniques 4
 Theoretical Relevance
 Consistency
 Objectivity
 Consider all pertinent areas of problems
Sources of Hypothesis
 Intution
 Research studies
 Consultation
 Theory 2
 Observation 5
 Culture
 Continuity of Research
Significance of Hypothesis
 Provides Definite Focus
 Specifies Sources of Data
 Determines Data Needs
 Suggests the Type of Research 2
 Technique of Analysis 6
 Development of Theory
TYPES OF HYPOTHESIS
 ON THE BASIS OF LEVEL OF ABSTRACTION:
 Common Sense Hypothesis
Eg: Well paid employees are more motivated than
less-paid employees. Disciplined workers are
more loyal to their organisation. 2
7
 Complex Hypothesis
Eg: Smoking and other drugs leads to cancer,
tension, chest infections, etc. The higher ratio of
unemployment, poverty, illteracy leads to crimes
like robbery, killing etc...
 ON THE BASIS OF FUNCTIONS:
 Descriptive Hypothesis
Eg: The rate of poverty is more in rural areas of
India as compared to that of urban areas.The
quality of education in privately managed
schools is far better than that ofgovernment
schools.
2
 Relational Hypothesis 8
Eg: Educated people spend more on clothing
as compared uneducatedpeople Literate
couples have fewer children as compared to
illiterate couples.
 Casual Hypothesis
Eg: A candy company receives
feedback from customers that a new
darkchocolate product contains pieces
of plastics.
2
9
 Meaning of Research Design
 Research design is the framework of research
methods and techniques chosen by a researcher.
The design allows researchers to hone in on
research methods that are suitable for the subject
matter and set up their studies up for success.
 The design of a research topic explains the type of 3
research (experimental, survey research,  0
correlational, semi-experimental, review) and also
its sub-type (experimental design, research
problem, descriptive case-study). 
 There are three main types of designs for research: 
Data collection, measurement, and analysis.
Needs and Importance
1: GUIDELINES TO THE RESEARCH
2: ORGANIZING RESOURCES
3: DIRECTION TO THE RESEARCH STAFF
4: SELECTION OF TECHNIQUES
5: COLLECTION OF RELEVENT DATA 3
1
6: OBJECTIVE OF RESEARCH
7: MONITORING OF EXPENDITURE
8: EXECUTION OF RESEARCH WORK
9: MOTIVATION TO THE STAFF
10: IMPROVEMENT IN DECISION MAKING
Steps in Research Design
 DEFINE THE PROBLEM
 SOURCES OF DATA
 TECHNIQUES OF DATA COLLECTION
 DECISION ON UNIVERSE
3
 SAMPLE SIZE 2
 AREAS OF DATA COLLECTION
 METHODS OF DATA ANALYSIS
 DECISION ON RESOURCES
3
3
 Types of Research Design
1. Exploratory Research
Exploratory research could be used for any of the
following purposes:
 Formulate a problem or define a problem more
precisely
 Identify alternative courses of action 3
4
 Develop hypotheses
 Isolate key variables and relationships for further
examination
 Gain insights for developing an approach to the
problem
 Establish priorities for further research
3
5
 Features
1. Unstructured
2. Flexible
3. Informal

3
 Useful for 6
1. Background Information
2. Development of Hypothesis
3. Research Priorities
 Methods
1. Secondary Data Analysis
2. Experience Survey
3. Case Analysis
3
4. Focus Groups 7
5. Projective Techniques
2. Conslusive Research
 Descriptive Research
Descriptive Research can be divided
into the following two categories:
a) Cross – Sectional Studies 3
b) Longitudinal Studies 8

 Diagnostic Research/Causal
Research
 What is Sample?
 Definition: A sample is defined as a smaller
set of data that a researcher chooses or
selects from a larger population by using a
pre-defined selection method. These
elements are known as sample points,
sampling units, or observations. Creating a
sample is an efficient method of conducting  3
research. In most cases, it is impossible or 9
costly and time-consuming to research the
whole population. Hence, examining the
sample provides insights that the researcher
can apply to the entire population.
 For example, if a cell-phone
manufacturer wants to conduct a
feature research study among students
in US Universities. If the researcher is
looking for features that the students
use, features they would like to see,
and the price that they are willing to
4
pay, an in-depth research study has to 0
be conducted. This step is imperative to
understand the features that need
development, the features that require
an upgraded, pricing of the device, and
the go-to-market strategy.
 What Is Sampling?
 Sampling is a process used in
statistical analysis in which a
predetermined number of
observations are taken from a
larger population. The 4
methodology used to sample from 1
a larger population depends on the
type of analysis being performed,
but it may include simple random
sampling or systematic sampling.
Methods/Types of Sampling

4
2
1. Random/Probability
Sampling
 Simple Random Sampling
 Stratified Sampling
 Cluster Sampling 4
3
Types of Stratified Random
Sampling:
 Proportionate Stratified Random
Sampling:
 Disproportionate Stratified Random 4
Sampling: 4
2. Non-Random/Non-Probability
Sampling
 Convenience Sampling
 Judgement Sampling
 Quota Sampling 4
5
 Snowball Sampling
Unit -2 4
6

Data Collection and Processing

What is Data?
 The abridged answer is, data is various kinds of
information formatted in a particular way.
 Therefore, data collection is the process of
gathering, measuring, and analyzing accurate
data from a variety of relevant sources to find
answers to research problems, answer
questions, evaluate outcomes, and forecast
trends and probabilities.
 Our society is highly dependent on data, which
underscores the importance of collecting it.
Accurate data collection is necessary to make
informed business decisions, ensure quality
assurance, and keep research integrity.
Types of Data and
Sources
1) Primary Data
 Information that is collected directly
or first hand
 Examples:- Data collected through 4
8
observation, experimentation,
surverys, questionaire, interviews.
2) Secondary Data
 Information that is not collected
first hand
 Example:- Data from a newspaper
or census at school 4
9
 Characteristics of
Primary Data:
 Primary data are original data.
 Primary data are expensive.
 Collection of primary data takes considerable
time and efforts. 5
 They are collected with reference to problem on 0
hand.
 They are collected deliberately from relevant
respondents.
 Specific methods (like survey
methods, observation methods,
experimental method, etc.) and
tools (like printed forms,
questionnaire, camera, etc.) are
used for collecting primary data. 5
 They constitute a basic input in the 1
research project.
 They are required be furnished,
processed, or analyzed before they
are used.
 Advantages/Benefits of Primary
Data
 Provides First-hand information
 Indepth information
 Reliable Information
 Specific Data 5
 Supplements Secondary Data 2
 Enchance the quality of Researcher
 Helps in formulation of hypothesis
 Flexibility
 Helps to overcome Resistance
Limitations/Disadvantages of
Primary Data
 It can be expensive, time-consuming and
take a long time to complete if it involves
face-to-face contact with customers.
 It requires some prior information about 5
3
the subject, and ideally market research
skills to get the best results.
 Attracting enough customers to take part in
your survey, especially when doing it
yourself, can be challenging.
Survey
 Survey research is defined as "the
collection of information from a
sample of individuals through their
responses to questions" 5
4
Methods of collection of
Primary Data
1) Survey Method
2) Observation Method
3) Interview Method 5
5
4) Experimental Method
1) Survey Method
 Sample Survey
 Census Survey
5
6
Types of Survey Research
 Telephone Survey
 Mail Survey
 E-Mail Survey
 Internet Survey 5
7
 Social Media Survey
2) Observation Method
 Advantages:
1. No respondent bias
2. First hand information
3. Reliable and accurate
 Disadvantages: 5
8
1. Time-consuming process
2. Expensive method (because it requires
trained staff)
3. No depth information possible
4. Biasness of the researcher
Types of Observation Method
1. Structured/unstructured Observation-
planned observation whereas in
Unstructured observation unplanned
observation, flexible as no decision is
taken immediately.
5
2. Disguised/ undisguised Observation- the 9
observer/researcher becomes a partof the
sample/subject, they participate as a
member as a part of that subjectand their
identity will not be disclosed. In
undisguised observation, theresearcher is
physically present with formal consent.
3. Mechanical Observation- the
researcher will be using mechanical
devices to observe the subject, eg- cctv
camera.

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0
3) Interview Method
 Face to face interaction between the
interviewer and interviewee, a set of questions
are asked.
 Advantages:
 Reliable (as face to face interaction is taking 6
1
place in physical form)
 Detailed information
 Flexibility (as a researcher you can modify and
make changes in the questions)
Types of Interview Method
 1) Personal Interview:- A personal or face to face
interview is one that employs a standard
structured questionnaire (or interview schedule)
to ensure that all respondents are asked the same
set of questions in the same sequences.
 5 types of personal interview are as follows 6
2
a) Formal & Informal
b) Structured & Unstructured
c) Individual & Group
d) General & Specific
e) Directive & Non-Directive
 2) Focused Group Interview
 3) In-Depth Interview

6
3
4) Experimental Method
 Advantages
1) First Hand Information
2) Reliable & Relevant
3) New Techniques
which can be identified 6
4
 Disadvantages
1) Expensive
2) Time Consuming
3) Delay in results
which may lead to frustation
Types of Experimental
1) Field Experiment
2) Laboratory Experiment

6
5
Questionnaire Method
 A questionnaire is a research
instrument consisting of a series of
questions for the purpose of
gathering information from 6
6
respondents.
 Importance of Questionnaire
1. Relevant of Data
2. Convenient to the Respondents
THANKS!