brm unit i

8/14/2019 BRM Unit I

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Business Research

Business research is defined as a systematic inquiry

that provides information to guide business decisions.

Research comprises of :-

* defining & redefining problems

* Collecting , organising & evaluatingdata

* Making deductions & reaching conclusions to findwhether they fit the formulating hypothesis.


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Scope of Business Research

Business research is used to solve problems in

Marketing

Finance

HR Manufacturing


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Major Forms of Business Research

Operations Research

Motivational Research

Market Research


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Operations Research

OR involves use of mathematical , logical & analyticalmethods to find optimum solutions to businessproblems.

OR is used for forecasting demand, optimizing

production & finding the best investment options.


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Motivational Research

MR involves analyzing the reasons and motivesbehind peoples behaviour.

MR is used to understand consumer behaviour,

employee behaviour.


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Market Research

MR aims at understanding and examining themarketplace in which the company operates.

Helps the organization to devise effective bsuiness

policies & marketing strategies.


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Types of Research


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Types of research

Application objective Inquiry mode

Pure AppliedDescriptive Exploratory

CorrelationalExplanatory

QuantitativeQualitative


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Fundamental /basic /Pure /Theoretical research

Fundamental or Basic Research refers to a focused ,systematic study or investigation undertaken todiscover new knowledge or interpretations &establish facts or principles in a particular field.

It is mainly concerned with generalizations and with

the formulation of a theory . It is mainly concerned with gaining knowledge rather

than solving a practical problem .Eg : Research concerning some natural phenomenon or

relating to pure maths Understanding the consumer buying process Understanding the consumer learning process


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Applied research

AR refers to investigation undertaken to discover theapplications & use of theories, knowledge & principles inactual work or in solving problems.

This aims at finding a solution for a immediate problem facinga society or an industrial or business organization.

It has a practical problem solving emphasis . It gives answers to specific questions related to action ,

performance or policy needsEg : Research aimed at certain conclusions facing a concrete or

business problem

Evaluating the impact of a training program on employeeperformance

Examining consumer response to direct marketing programs..


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Descriptive or Expost facto research

Descriptive research includes survey & fact findingenquiries of different kinds

State of affairs as it exists It attempts to describe systematically a situation ,

problem , phenomenon, service or program Fact finding method

E.g.. Frequency of shopping, Preferences of people. Level of proverty in a particular district. Flood in Bihar


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Correlational research

It is to discover or establish the existence ofrelationship/association/interdependence between twoor more aspects of a situation.

Eg : What is the impact of an advertising campaign on thesale of a product?

Examine whether there is a relationship between two ormore aspects of a situation or phenomenon.


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Explanatory research

Attempts to clarify why & how there is a relationshipbetween two aspects of a situation.

Eg :

Why stressful living results in heart attack?

How home environment affects children?


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Exploratory research

This is when the study is undertaken with theobjective either to explore an area where littleinformation is known or to investigate the possibilitiesof undertaking a particular research study .

ER aims at understanding the topic at research


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Quantitative Research

It is structured approach Everything that forms the research process

objectives , design, sample, questions ispredetermined.

More appropriate to determine the extent of aproblem ,issue

Measurement of particular phenomenon.

Eg: Finding out Relationship between income &expenditure.


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Qualitative Research

Allows flexibility in all the aspects of the researchprocess

To explore the nature of the problem

Concerned with subjective assignment of attitudes,opinions, behaviour

Eg: Attitude surveys

Examine the performance of course material ,scheme orprogram


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Other Types

Conceptual Research* Related to some abstract idea or theory* Researcher develops a concept

* Relies on literature Empirical Research

* Relies on experience or observation alone* Capable of being verified by observation or

experiment

* Examine a particular theory or law fits/reflectsthe realityEg: As income increases consumption also increases


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Characteristics of Good Research Prediction of future occurance Direction towards solution Accuracy in observation Basis of research is experience

It is a scientific program Quest for answers Patient activity Careful critical enquiry Need expertise

Objective & logical


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Characteristics of a Good Research

Purpose clearly defined

Research process detailed

Research design thoroughly planned

Highly ethical standard applied Limitation frankly revealed

Findings presented unambiguously

Conclusions justified


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Factors affecting Business Research

Time ConstraintLack of time prompts a company to take decisions

without making any research study. Availability of resources

Sufficient financial & human resources are neededto conduct BR Nature of Information sought

If information that a company needs can beobtained from internal records or from prior studiesthen conducting BR is a waste of time & effort

Benefits Vs CostCost benefit analysis to be done before

conducting the BR


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Problems encountered by Researchers in India

Lack of scientific training in the methodology ofresearch

Insufficient interaction between university researchdepartments and organizations

Fear of misuse of materials

No code of conduct for researchers

Library management problems

Difficulty in timely availability of published data


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Business Research Process


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Business research process

1. Identify & define Research problem/opportunity

A research problem in general refers to some difficultywhich a researcher experiences in the context of either atheoretical or practical situation & wants a solution for

the same . Manager or researcher should identify the problem

accurately and at the earliest. Problem identification precedes problem definition Problem should be defined in a precise manner.

A well defined problem gives the researcher a properdirection for carrying out investigation.


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How to select the problem?

Subject which is overdone must not be selected. Controversial subjects should not be taken . Too narrow or too vogue problems should not be

chosen. Ingredients required for the study should be within the

reach of a researcher. The importance of the subject , time & efficiency of the

researcher is also an essential requisite factor.

Selection of problem must be preceded by a preliminarystudy .


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Defining a research problem

Statement of the problem in a general way . Understanding the nature of the problem. Surveying the available literature.

Developing the ideas through discussions. Rephrasing the research problem.


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2. Objectives of Research Formulation of objectives is more important because

it determines* data which are to be collected

* characteristics of data which are relevant* relations which are to be explored* the choice of techniques to be used* the form of final report

The objective of the research should be stated in aformal research statement.

Objectives act as a guidelines for various steps inresearch process.


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Types of objectives

1. Quantitative : It aims to optimize certain measures ofperformance .

Eg : A study on Advertising budget

2. Qualitative : It aims to test the significance of

hypotheses of the study .

Research Questions

What is the purpose of the study?

Where does the study take place?What is the present state of research issue?

How is the purpose achieved?

Why that particular method?


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3. Extensive literature survey

Review the concept

What is the meaning ?

What is the definition of the particular concept ?Review earlier findings

What has already been researched in that area. ?


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4.Formulate Hypotheses Hypotheses is a tentative statement.

They are intelligent & educated guess which can be put to

test to determine its validity . It is a tentative supposition about the outcomes of a

research.

Researcher should avoid including any hypotheses thathas already been validated by other similar studies.

Eg : Age has no reference over achieving sales target of asales person.


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5. Preparing research Design A RD is the actual framework of a research that

provides specific details regarding the process to befollowed in conducting the research.

It is designed based on the objectives formulated. RD includes all details regarding research . It is a blue print of research. It is a crucial step. May be experimental /non experimental. An outline of what a researcher would do.


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6.Selecting the Research MethodSecondary Data Studies

Analysis of already existing data related to research topic.

SurveysSurvey is used to gather information from a sample ofrespondents by employing a questionnaire.ExperimentsExperiments can be conducted to study the cause and-effect relationships.Observations

Respondents are merely observed wihtout any interruptionby the observers.


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7.Selecting the Sampling Procedure

All the items in any field of inquiry constitute a

universe or population. Sampling is a process that uses a small number of

items or a small portion of a population to drawconclusions regarding the whole population.

Sample is a subset of a larger set called population. Sample should represent the characteristics of the

whole population. Sample size is more important, the bigger the sample

size the greater will be its precision.


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Selecting the sampling procedure

Sample can be selected in two ways Probability sampling

Each element has a known probability of beingincluded in the sample.

Simple random

Systematic Stratified Random Multistage Cluster Non-probability sampling

Samples do not allow the researcher to determine

the probability. Quota Sampling Convenience Sampling Judgment Sampling Snowball sampling


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8.Data Collection Data are Raw facts The researcher collects the data from the units in

the sample. Primary Data

Collected through experiment or survey Secondary data

Data which have already been collected.

Methods of Data collection Observation Questionnaire Personal interview Schedules Telephonic interview


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9.Evaluating the Data

Analyze the data

Use mathematical & statistical tools to

evaluate the data Interpretation of the data using analytical

techniques


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10.Preparing & Presenting the Research Report

Oral report Written report

Written Report

Objectives of the Research A summary of the research design adopted A summary of major findings Recommendations Limitations Conclusion


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Research Design


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Research Design

Research Design is the plan & structure of investigationformulated in order to obtain answers to researchquestions.

Design is the plan for selecting the sources & types ofinformation used to answer the research questions.

It is a blue print that outlines each procedure fromhypotheses to analysis of data .


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Need for Research Design

Smooth flow of various research processes.

RD is highly essential for planning research activities.


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Characteristics of Good Research Design

An ideal design should take into account importantfactors like:

Identify the exact research problem to be studied.

The objective of the research .

The Process of obtaining information. The availability of adequate and skilled manpower.

The availability of adequate financial resources for

carrying out research .


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Research Design Concepts

VariableA variable is a concept that can take on different

quantitative values like height,weight,age & so on.o Quantitative Values Continuous variable Non-continuous variableo Continuous variables

They can take on any values includingdecimal.Eg: distance,age,weight

o Non-Continuous Variables

They cannot be measured in decimalsEg: Number of children


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Dependent variableA variable dependent on the result of some other variable .Eg Height & Weight are dependent on age.

Independent Variable

A variable that is not dependent on any other variableEg: Age is not dependent on height & weight. ExtraneousVariable

Independent variable that are not directly linked with the studybut may influence the dependent variable.

Eg: A study on Relationship between childrens academic excellence &self concept.

Intelligence may also affect academic excellence. Intelligence isan extraneous variable.

Any effect on dependent variable from the extraneous variableresult in Experimental error


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Control

Control is devised to minimize the effects of extraneous variables.

Confounded Relationship

When a dependent variable is affected by the influence of anextraneous variable then the relationship between the dependent andindependent variables is confused or confounded by an extraneousvariable.

Research Hypotheses

A Research hypotheses is one that links an independent variable to adependent variable

It should generally contain one dependent & one independentvariable


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Hypothesis testing researchWhen the basic reason is to test a hypothesis , it is termed as hypothesistesting research.

Experimental Hypothesis testing research

An independent variable is manipulated during research.

Non Experimental Hypothesis testing research

Non-manipulation of independent variable in research.Eg To Study whether the daily intake of food by students influences their skills

in sports

If the researcher selects random sample of 50 then it is non-experimentalhypothesis testing the independent variable sporting skills is notmanipulated

If he selects a sample of 50 & divides them into A & B , where B is providedwith a coach & A is control group without external manipulations it isExperimental hypothesis testing .


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Control Group

In hypothesis testing conditions the group is studied under usual conditions Experimental groupGroup Studied under special conditions.

TreatmentRefers to conditions to which experimental and control groups are subjected to

ExperimentThe process involving the validity of hypothesis statement of research

Eg: To study the impact of Sports trainer on the performance of cricket team

Absolute ExperimentImpact of the trainer on the teams performance Comparative Experiment

Impact of one sports trainer on the teams performance & another sports trainer onteams performance

Experimental unitsPrespecified plots or blocks where various treatments are used


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Classification of Research Designs

Exploratory Studies

ER is carried out to make problem suited to moreprecise investigation or framework a working hypothesisfrom an operational perspective.

ER help in understanding and assessing the criticalissues of the problems.

Useful when researcher lack a clear idea of theproblems they will meet during the study.

Area of investigation may be so new or vague.

Reasons for conducting ER

To analyze a problem situation

To evaluate alternativesTo discover new ideas


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Approaches to Exploratory Studies

In-depth interview Participant observation

Films, photographs, video tapes

Projective techniques Psychological testing

Case studies

Elite interviewing

Document analysis

Exploratory Techniques


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1. Secondary Data Analysis

Data available as a result of research carried out by others.o Sources of Secondary Data

Research reports of previous studies

Published documents journals, periodicals, guides

o Importance of secondary dataProvides an excellent background

It can be a rich source of hypotheses

E l t T h i


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2. Experience Surveys

They are conducted to gain additional knowledge on aparticular subject area from experts in the field.

Conducted by interviewing persons

o Importance of Experience SurveyIt gives an ides of

What is being done?

What has been tried in the past?

How have things changed?What problem areas and barriers can be seen?



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3. Focus Groups

It is a group interview tool

Main object is often new product

Data from focus group may be used for enriching all levelsof research questions and hypothesis

A focus group is a panel of people led by trained moderatorwho meet for 90 minutes to 2 hours.

The moderator guides the group in exchange of ideas,feelings, experiences on a special topics

The panel consists of 6 to 10 respondents

The facilitator introduces the topic & encourages the groupto discuss it among themselves.



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o Types of Focus Groups

Telephone Focus group

When target group members are dispersed geographically

When the issues are so sensitive

When the researcher wants nationwide representation.

Online Focus GroupEmerging Technique

Emails, websites, Chat rooms

Posting question to a newsgroup Video Conferencing Focus group

Face-to-face

Saves travel time



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4. Two stage Design

Exploration is conducted in two stages

o First Stage

Clearly defining the research problems

o Second stage

Developing the research design

Importance

Used when the problem is vaguely defined and theresearcher is not clear about the particular topic that has

to be studied.

Descriptive Studies


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Descriptive Studies

Studies concerned with describing the characteristics of a particularindividual or group

It comes under formal research Researcher gathers details about all aspects of a problem

situation

Who , What , Where, When & How of a topic Design of study should be rigid not flexible

Focus should be on Formulating the objective of the study? Designing the methods of data collection. Selecting the sample Collecting the data Processing & analyzing the data Reporting the findings

Causal Studies


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Causal Studies

Aim is to identify the cause and effect relationship betweenvariables.Eg: Studying the effect of price, advertising & marketing on salesGood nutrition (cause) leads to intelligence (effect) amongchildren.

Studying how one variable influences the change in othervariable.

Causal relationshipsSymmetrical two variables fluctuate together

Symmetric conditions occur when two variables become alternateindicators of another cause or independent variable.Eg : low attendance of youth in martial art clubs and activeparticipation in discotheques and parties is the result of(dependent on) another factor such as life style preferences.

Reciprocal Two variables mutually influence or reinforce each otherEg: A person goes through a particular Advertisement whichleads him to buy that brand of product

Causal Studies


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Causal Studies

Asymmetrical When changes in one variable are responsible for

changes in the another variable.

Types of Asymmetrical relationships

Stimulus response relationship

An event that results in response from some object.

Eg : An increase in product price may lead to fewer sales.

Property disposition relationship

A property is the enduring nature of a subject, which does not dependon the circumstances for its activation.

A disposition is an inclination to respond in a certain way under certain

circumstances.Properties Family status,age, gender, religion

Disposition Attitudes , opinions, values

Eg: The effect of age on attitude with regard to savings , gender & its impacton attitude towards social issues

Causal Studies


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Causal Studies

Disposition behaviour relationship

Consumption pattern, work performance, interpersonal acts behaviour responses

Eg: Perception about a brand

Property behaviour relationship

Eg : The family life cycle and purchase of goods, social class &family saving patterns.

Diagnostic


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ag ost c

Determines the frequency with which somethings occur or itsassociation with something else.

Eg : Studies concerning whether certain variables are associated. Experimental

Refers to framework or structure of an experimentTypes

Informal experimental designsThose designs which use a less sophisticated form of

analysis based on differences in magnitude1. Before & after without control design

2. After-only with control design3. Before & after with control design

Experimental


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Experimental

Formal Experimental Designs

Use precise statistical procedures for analysis.

1. Completely randomized

2. Randomized block design

3. Latin square design

4.Factorial design


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Sampling Design


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Sampling Design Basic concepts


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Sampling Design Basic concepts

Sample

It is a part of the total population.

It is a subset representative of the population.

Sample size is represented by n

Sampling It is the technique of selecting a representative part of a

population for the purpose of determining the characteristicsof the whole population.

Precision

It is a measure of how close an estimate is expected to be ,to the true value of a parameter.

It is a measure of similarity


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Sampling Design Steps


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Sampling Design -Steps

1. Defining the target population

A clear definition of target population

It is defined in terms of element , sampling unit , extent,and time frame.

The definition should be line with the objectives

Eg: A study on demand of micro ovens

Population All women above the age of 20 who cook.

Refined population All the women above the age of 20 whocook and whose monthly household income exceeds Rs

20,000



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2. Specifying the sampling frame

Sampling frame is a list of elements from which the samplemay be drawn .

Eg : Micro oven

Sampling frame

Telephone directory

List of credit card users

Mobile phone users



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3. Specifying sampling Unit

A sampling unit is a basic unit that contains a single elementor group of elements of the population to be sampled.

Eg ; Mico oven

Sampling unit household

Sampling element all women above the age of 20 living in thatparticular house



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4. Selection of Sampling method

Sampling method outlines the way in which the sample units areto be selected

It is influenced by the objectives of business research,availability of resources men, money , machine

5. Determination of sample sizeSample size calculations using various methods

6. Specifying the sampling plan

It outlines the modus operandi of the sampling plan

7.

Selecting the sampleImplementing sampling plan to select the sample

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