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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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    Business research process

    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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    Business research process

    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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    Business research process

    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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    Business research process

    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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    Business Research Process

    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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    Business Research Process

    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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    Business Research Process

    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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    Business Research Process

    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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    Business Research Process

    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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    Exploratory Techniques

    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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    Exploratory Techniques

    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?

    Exploratory Techniques

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    Exploratory Techniques

    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.

    Exploratory Techniques

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    Exploratory Techniques

    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

    Exploratory Techniques

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    Exploratory Techniques

    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

    Sampling Design -Steps

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    Sampling Design -Steps

    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

    Sampling Design -Steps

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    Sampling Design -Steps

    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

    Sampling Design -Steps

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    Sampling Design -Steps

    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