Chapter I: The Nature Of Research

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 Cont…
• Question 1: What is the source of knowledge?
• 1.Every day experience (Common sense )
• This method of knowing offers an improvement over acceptance based on tenacity,
authority, or reason because it appeals to direct experience. Common sense is based on
our own past experiences and our perceptions of the world. It originates from our day-
to-day practical experiences and in turn guides our daily interaction with our
surrounding. Note that our experiences and perceptions of the world may be quite
limited. The concepts that we have about the world may be seriously misleading.
Although common sense may help us deal with the routine aspects of daily life, it may
also form a wall and prevent us from understanding new ideas.
• 2. Science
• Science is a body of systematized knowledge. In scientific method ideas are evaluated
and corrected through dispassionately observing by means of our bodily senses or
measuring devices - in this case science can be seen as a systematic and controlled
extension of common sense - and using reason to compare various theoretical
conceptualization based on experience – which represents a direct application of the
principles of logic. This blend of direct sensory experience (or measurement) and reason
gives science a self corrective nature. One of the characteristics of science is a reliance
on information that is verifiable through experience. That is, it must be possible for
different people in different places and at different times using the same method3 to
 Cont…
• Question 2: what is the difference between common sense knowledge and
science?
Science and common sense differ in terms of:
• The use of conceptual schemes and theoretical structures
• The notion of control
• The explanations of different observed phenomena.
• The difference between common sense and science revolves around the
concepts systematic and controlled. Scientists systematically build
theoretical structure; test them for internal consistency, and subject aspects of
them to empirical test. The scientific method of knowing is the scientific
research, and its goal is the discovery of regularities of nature and their
representation in theories from which predictions can be made.

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 Cont…
The steps in the scientific method guide researchers in planning, conducting, and
interpreting research studies. Scientific research follows logical steps, which
include:
defining the problem
making tentative explanations
gathering information
testing the validity of the hypothesis
making conclusions as to whether the hypothesis can be accepted or rejected
Scientific methods:
It should be noted that, apart from its importance in knowing the world, the
scientific method of knowing has some limitations.
The scientific method cannot answer all questions
Application of the scientific method can never capture the full richness of the
individual and the environment
The measurement devices always have some degree of error.

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 1.1.What is Business research?
• Business research is defined as the systematic and objective process of
generating information for aid in making business decisions.
• Business research can be described as a systematic and organized effort to
investigate a specific problem encountered in the work setting that needs a
solution. It comprises a series of steps designed and executed, with the goal of
finding answers to the issues that are of concern to the manager in the work
environment. This means that the first step in research is to know where the
problem areas exist in the organization, and to identify as clearly and
specifically as possible the problems that need to be studied and resolved. Once
the problem that needs attention is clearly defined, then steps can be taken to
gather information, analyze the data, and determine the factors that are
associated with the problem and solve it by taking the necessary corrective
measures.

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 Cont…
• Research thus encompasses the processes of inquiry, investigation, examination, and
experimentation. These processes have to be carried out systematically, diligently,
critically, objectively, and logically. The expected end results would be the discovery
that will help the manager to deal with the problem situation.
• The difference between the manager who uses common sense alone to analyze and
makes a decision in a given situation, and the investigator who uses a scientific
method, is that the latter does a systematic inquiry into the matter and proceeds to
describe, explain, or predict phenomena based on data carefully collected for the
purpose.

“Research is the systematic approach to obtaining and confirming new and reliable
knowledge”
– Systematic and orderly (following a series of steps)
– Purpose is new knowledge, which must be reliable
1.Searching for explanation of events, phenomena, relationships and causes
– What, how and why things occur
– Are there interactions?
2.A process
– Planned and managed – to make the information generated credible
– The process is creative 7
– It is circular – always leads to more questions
 1.2.Purposes and Importance of research in Business

• 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.
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 between variables (such studies
are known as hypothesis-testing research studies).

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 1.3. Motivation in research

What makes people to undertake research?

• This is a question of fundamental importance. The possible motives for doing
research may be either one or more of the following:
1. Desire to get a research degree along with its consequential benefits.
2. Desire to face the challenge in solving the unsolved problems, i.e., concern
over practical problems initiates’ research.
3. Desire to get intellectual joy of doing some creative work.
4. Desire of service to society.
5. Desire to get respectability.

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 1.4. Managerial Value of Research: Applications of Research and
Importance
“All progress is born of inquiry. Doubt is often better than overconfidence, for it
leads to inquiry, and inquiry leads to invention” is a famous Hudson Maxim in
context of which the significance of research can well be understood. Increased
amounts of research make progress possible. Research inculcates scientific and
inductive thinking and it promotes the development of logical habits of thinking
and organization. The role of research in several fields of applied economics,
whether related to business or to the economy as a whole, has greatly increased in
modern times. The increasingly complex nature of business and government has
focused attention on the use of research in solving operational problems. Research,
as an aid to economic policy, has gained added importance, both for government
and business.
Research provides the basis for nearly all government policies in our economic
system. For instance, government’s budgets rest in part on an analysis of the needs
and desires of the people and on the availability of revenues to meet these needs.
The cost of needs has to be equated to probable revenues and this is a field where
research is most needed. Through research we can devise alternative policies and
can as well examine the consequences of each of these alternatives.
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 Cont…
Decision-making may not be a part of research, but research certainly facilitates the
decisions of the policy maker. Government has also to chalk out programmes for
dealing with all facets of the country’s existence and most of these will be related
directly or indirectly to economic conditions. The plight of cultivators, the
problems of big and small business and industry, working conditions, trade union
activities, the problems of distribution, even the size and nature of defence
services are matters requiring research. Thus, research is considered necessary
with regard to the allocation of nation’s resources.
Another area in government, where research is necessary, is collecting information
on the economic and social structure of the nation. Such information indicates
what is happening in the economy and what changes are taking place. Collecting
such statistical information is by no means a routine task, but it involves a
variety of research problems. This day nearly all governments maintain large
staff of research technicians or experts to carry on this work. Thus, in the context
of government, research as a tool to economic policy has three distinct phases of
operation, viz., (i) investigation of economic structure through continual
compilation of facts; (ii) diagnosis of events that are taking place and the
analysis of the forces underlying them; and (iii) the prognosis, i.e., the prediction
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of future developments.
 Cont…
Research has its special significance in solving various operational and planning
problems of business and industry. Operations research and market research,
along with motivational research, are considered crucial and their results assist,
in more than one way, in taking business decisions.
• Market research is the investigation of the structure and development of a
market for the purpose of formulating efficient policies for purchasing,
production and sales.
• Operations research refers to the application of mathematical, logical and
analytical techniques to the solution of business problems of cost minimization
or of profit maximization or what can be termed as optimization problems.
Motivational research of determining why people behave as they do is mainly
concerned with market characteristics.

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 Cont..
In other words, it is concerned with the determination of motivations underlying the
consumer (market) behavior. All these are of great help to people in business and
industry who are responsible for taking business decisions. Research with regard
to demand and market factors has great utility in business. Given knowledge of
future demand, it is generally not difficult for a firm, or for an industry to adjust
its supply schedule within the limits of its projected capacity. Market analysis has
become an integral tool of business policy these days. Business budgeting, which
ultimately results in a projected profit and loss account, is based mainly on sales
estimates which in turn depend on business research. Once sales forecasting is
done, efficient production and investment programmes can be set up around
which are grouped the purchasing and financing plans. Research, thus, replaces
intuitive business decisions by more logical and scientific decisions.

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 Cont…
In addition to what has been stated above, the significance of research can also be
understood keeping in view the following points:
(a) To those students who are to write a master’s or Ph.D. thesis, research may
mean careerism or a way to attain a high position in the social structure;
(b) To professionals in research methodology, research may mean a source of
livelihood;
(c) To philosophers and thinkers, research may mean the outlet for new ideas and
insights;
(d) To literary men and women, research may mean the development of new
styles and creative work;
(e) To analysts and intellectuals, research may mean the generalizations of new
theories. Thus, research is the fountain of knowledge for the sake of
knowledge and an important source of providing guidelines for solving
different business, governmental and social problems. It is a sort of formal
training which enables one to understand the new developments in one’s field
in a better way.
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 1.5. Characteristics of a Good Research

• Whatever may be the types of research works and studies, one thing that is
important is that they all meet on the common ground of scientific method
employed by them. One expects scientific research to satisfy the following
criteria:
1. The purpose of the research should be clearly defined and common concepts be
used.
2. The research procedure used should be described in sufficient detail to permit
another researcher to repeat the research for further advancement, keeping the
continuity of what has already been attained.
3. The procedural design of the research should be carefully planned to yield results
that are as objective as possible.
4. The researcher should report with complete frankness, flaws in procedural design
and estimate their effects upon the findings.
5. The analysis of data should be sufficiently adequate to reveal its significance and
the methods of analysis used should be appropriate. The validity and reliability
of the data should be checked carefully.

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 Cont…
6. Conclusions should be confined to those justified by the data of the research and
limited to those for which the data provide an adequate basis.
7. Greater confidence in research is warranted if the researcher is experienced, has a
good reputation in research and is a person of integrity.
In other words, we can state the qualities of a good research as under:
1. Good research is systematic: It means that research is structured with specified
steps to be taken in a specified sequence in accordance with the well defined set
of rules. Systematic characteristic of the research does not rule out creative
thinking but it certainly does reject the use of guessing and intuition in arriving
at conclusions.
2. Good research is logical: This implies that research is guided by the rules of
logical reasoning and the logical process of induction and deduction are of great
value in carrying out research. Induction is the process of reasoning from a part
to the whole whereas deduction is the process of reasoning from some premise
to a conclusion which follows from that very premise. In fact, logical reasoning
makes research more meaningful in the context of decision making.
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 Cont…
3. Good research is empirical: It implies that research is related basically to one or
more aspects of a real situation and deals with concrete data that provides a basis
for external validity to research results.
4. Good research is replicable: This characteristic allows research results to be
verified by replicating the study and thereby building a sound basis for decisions.

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 1.6. Kinds & Classification of Research
• The basic types of research are as follows:
(i) Descriptive vs. Analytical: Descriptive research includes surveys and fact-
finding enquiries of different kinds. The major purpose of descriptive
research is description of the state of affairs as it exists at present. In social
science and business research we quite often use the term Ex post facto
research for descriptive research studies. The main characteristic of this
method is that the researcher has no control over the variables; he can only
report what has happened or what is happening. Most ex post facto research
projects are used for descriptive studies in which the researcher seeks to
measure such items as, for example, frequency of shopping, preferences of
people, or similar data. Ex post facto studies also include attempts by
researchers to discover causes even when they cannot control the variables.
The methods of research utilized in descriptive research are survey methods
of all kinds, including comparative and correlational methods. In analytical
research, on the other hand, the researcher has to use facts or information
already available, and analyze these to make a critical evaluation of the
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material.
 Cont…
ii.Applied vs. Fundamental: Research can either be applied (or action)
research or fundamental (to basic or pure) research. Applied research
aims at finding a solution for an immediate problem facing a society or an
industrial/business organization, whereas fundamental research is mainly
concerned with generalizations and with the formulation of a theory.
“Gathering knowledge for knowledge’s sake is termed ‘pure’ or ‘basic’
research.
• Research to identify social, economic or political trends that may affect a
particular institution or the copy research (research to find out whether
certain communications will be read and understood) or the marketing
research or evaluation research are examples of applied research. Thus,
the central aim of applied research is to discover a solution for some
pressing practical problem, whereas basic research is directed towards
finding information that has a broad base of applications and thus, adds to
the already existing organized body of scientific knowledge.
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 Cont…
iii.Quantitative vs. Qualitative: Quantitative research is based on the
measurement of quantity or amount. It is applicable to phenomena that can
be expressed in terms of quantity. Qualitative research, on the other hand, is
concerned with qualitative phenomenon, i.e., phenomena relating to or
involving quality or kind. For instance, when we are interested in
investigating the reasons for human behavior (i.e., why people think or do
certain things), we quite often talk of ‘Motivation Research’, an important
type of qualitative research. This type of research aims at discovering the
underlying motives and desires, using in depth interviews for the purpose.
Other techniques of such research are word association tests, sentence
completion tests, story completion tests and similar other projective
techniques. Attitude or opinion research i.e., research designed to find out
how people feel or what they think about a particular subject or institution is
also qualitative research. Qualitative research is especially important in the
behavioral sciences where the aim is to discover the underlying motives of
human behavior. Through such research we can analyze the various factors
which motivate people to behave in a particular manner or which make
people like or dislike a particular thing. 20
 Cont …

• (iv) Conceptual vs. Empirical: Conceptual research is that related to some

abstract idea(s) or theory. It is generally used by philosophers and thinkers to
develop new concepts or to reinterpret existing ones. On the other hand,
empirical research relies on experience or observation alone, often without due
regard for system and theory. It is data-based research, coming up with
conclusions which are capable of being verified by observation or experiment.
We can also call it as experimental type of research. In such a research it is
necessary to get at facts firsthand, at their source, and actively to go about doing
certain things to stimulate the production of desired information. In such a
research, the researcher must first provide himself with a working hypothesis or
guess as to the probable results. He then works to get enough facts (data) to
prove or disprove his hypothesis. He then sets up experimental designs which he
thinks will manipulate the persons or the materials concerned so as to bring forth
the desired information. Such research is thus characterized by the
experimenter’s control over the variables under study and his deliberate
manipulation of one of them to study its effects. Empirical research is
appropriate when proof is sought that certain variables affect other variables in
some way. Evidence gathered through experiments or empirical studies is today 21
 Cont …
• Research can be classified in terms of:
1. Goal of research
1.basic research
2.Applied Research
Basic research (also called fundamental or pure research) has as its primary objective the
advancement of knowledge and the theoretical understanding of the relations among
variables. It is basically concerned with the formulation of a theory or a contribution to the
existing body of knowledge. That is, basic research is designed to add to an organized
body of scientific knowledge and does not necessarily produce results of immediate
practical value.
The major aims of basic research include:
• Obtaining and using empirical data to formulate, expand, or
• evaluate theory; and
• Discovery of knowledge solely for the sake of knowledge.
In general, basic research:
• Represents a rigorous and structured type of analysis;
• Employs careful sampling procedures in order to extend the findings beyond the group or
situation;
• Has little concern for the application of the findings or social usefulness of the findings.22
 Cont …
2.Applied Scientific Research
• Applied research is designed to solve practical problems of the modern world,
rather than to acquire knowledge for knowledge's sake. One might say that the
goal of the applied scientist is to improve the human condition. It is
undertaken to solve immediate practical problem and the goal of adding to the
scientific knowledge is secondary.
Applied research:
• Is conducted in relation to actual problems and under the conditions in which
they are found in practice;
• Employs methodology that is not as rigorous as that of basic research;
• Yields findings that can be evaluated in terms of local applicability and not in
terms of universal validity.
Note :Basic research lays down the foundation for the applied research.

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 Cont…

2. Based on Specific objectives of research,reseach can be classified as

• Descriptive
• Explanatory,
• Exploratory research.
• Descriptive research
sets out to describe and to interpret what is. It looks at individuals,
groups, institutions, methods and materials in order to describe,
compare, contrast, classify, analyze and interpret the entities and the
events that constitute the various fields of inquiry. It aims to describe
the state of affairs as it exists .
.Explanatory research,
aims at establishing the cause and effect relationship between variables.
The researcher uses the facts or information already available to
analyze and make a critical evaluation of the data/information.
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 Cont…

• When we encounter an issue that is already known and have a

description of it, we might begin to wonder why things are the way
they are. The desire to know "why," to explain, is the purpose of
explanatory research. It is a continuation of descriptive research and
builds on exploratory and descriptive research and goes on to identify
the reasons for something that occurs. The researcher goes beyond
merely describing the characteristics, to analyze and explain why or
how something is happening.
• Thus, explanatory or analytical research aims to understand
phenomena by discovering and measuring causal relations among
them. That is, explanatory research looks for causes and reasons. For
example, it is one thing to describe the crime rate in a country, to
examine trends over time or to compare the rates in different
countries. It is quite a different thing to develop explanations about
why the crime rate is as high as it is why some types of crime are
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increasing or why the rate is higher in some countries than in others.
 Cont…
Exploratory research
is less formal, sometimes even unstructured and focuses on gaining
background information and helps to better understand and clarify a
problem. It can be used to develop hypotheses and to develop questions to
be answered.

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 Cont …
As said earlier, the goal of descriptive research is to describe some aspect of a
phenomenon, i.e., the status of a given phenomenon. It can help understand
a topic and lead to causal analysis. Descriptive research, therefore,
involves a variety of research methods to achieve its goal.
The methods that come under descriptive research are:
• Surveys
• Correlation studies
• Observation studies
• Case studies
Note :
Surveys gather data at a particular point in time with the intention of
describing the nature of existing conditions, or identifying standards
against which existing conditions can be compared, or determining
the relationships that exist between specific events.

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 Cont …
Correlational studies trace relationships among two or more variables in order
to gain greater situational insight. We may wish to know, for example,
whether there is relationship between sex and choice of field of study;
whether criminal behavior is related to social class background; or whether
an association exists between the number of years spent in full-time
education and subsequent annual income. In this case we conduct
correlational study- where researchers measure a number of variables for
each participant, with the aim of studying the associations among these
variables.
The purpose of correlational studies is not to establish cause-effect relationship
among variables but to determine whether the variables under study have
some kind of association or not. Variables being studied may have positive
or negative relationship or they may not have relationship at all.

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 Cont…

• Case studies emphasize detailed contextual analysis of a limited number of

events or conditions and their relationships. They are largely descriptive
examinations, usually of a small number of sites (small towns, hospitals,
schools). Case studies can provide very engaging, rich explorations of a
project or application as it develops in a real-world setting.

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 Cont …

3.Research classification based on Approaches of research

• Research can be classified as qualitative research and quantitative research
when the issue at hand is the approaches to be employed in conducting
research. As mentioned above, this structure is mainly for educational
purpose. Otherwise, some even argue that these approaches lie on a
continuum ranging from unstructured qualitative approach to a structured
quantitative approach.
• Qualitative research involves studies that do not attempt to quantify their
results through statistical summary or analysis. Qualitative research seeks
to describe various aspects about behavior and other factors studied in the
social sciences and humanities. In qualitative research data are often in the
form of descriptions, not numbers.

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 Cont …
• Quantitative research is the systematic and scientific investigation of quantitative
properties and phenomena and their relationships. The objective of quantitative
research is to develop and employ mathematical models, theories and hypotheses
pertaining to natural phenomena. The process of measurement is central to quantitative
research because it provides the fundamental connection between empirical observation
and mathematical expression of an attribute.

4.Research classification based on design

• Another way of classifying research is by design. Once the researcher has
determined the specific question to be answered and has operationalized the
variables and research question into a clear, measurable hypothesis, the next
task is to consider a suitable research design. Although there are endless ways
of classifying research designs, they usually fall into one of three general
categories:
• Experimental,
• Quasi-experimental
• Non-experimental.
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 Cont …
5. Research classification based on the type of data used in research, and
• Depending of the type of data generated and used research can be classified
as Primary research (also called field research) and Secondary research (also
known as desk research). Primary research involves the collection of data
that does not already exist whereas secondary research involves the
summary, collation and/or synthesis of existing data rather than generating
primary data, where data are collected from, for example, research subjects
or experiments.
6. Research classification based on Fields of study.
Research can also be classified based on fields of study. Therefore, there are:
• Natural science research,
• Social science research,
• Educational research,
• Behavioral science research,
• Health science research, etc.

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 1.7.Research Process
• Before embarking on the details of research methodology and techniques, it
seems appropriate to present a brief overview of the research process.
Research process consists of series of actions or steps necessary to effectively
carry out research and the desired sequencing of these steps.
The Research Process an Overview

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 Cont …
• Steps in Research process-
1.Defining the problem and conceptualizing the study
• Review relevant previous research and identify-
– The problem (s) and causes of the problem (s)
– State outcomes of previous research on the problem
– State clearly what you are planning for the proposed research
– Form careful research questions and hypotheses
2.Designing the study (Research design)
• The basic elements of a study design
– Identify the target populations and define the eligibility criteria

– Selecting an appropriate sample size for a specified level of power and level of significance
– Selecting methods of sampling, data collection, and analysis appropriate to the study's objectives

- Identify variables needed to achieve the objective (s)

– Identify scales to measure the variables

– Assess the feasibility of study objectives i.e. assess if it is measurable what you want to measure
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 Cont …
3.Collecting data
4.Analyzing data
5.Reporting

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End of chapter I

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